Fill the world with emotion,through the power of creativity and technology. Dreams Curiosity,Pioneer the future with dreams and curiosity. Pursue the creation of the very best by harnessing diversity and varying viewpoints. Integrity Sincerity, Earn the trust for the Sony brand through ethical and responsible conduct. Sustainability, Fulfill our stakeholder responsibilities through disciplined business practices. Message from the CEO,A Creative Entertainment Company. with a Solid Foundation of Technology, Born out of our founders dream of enriching people s lives through the power. of technology today Sony is a corporate group that operates entertainment. businesses including games music motion pictures animation and other. content intellectual property IP electronics businesses and direct to consumer. DTC services businesses including PlayStation Network PSN and financial. services People are at the core of all of these businesses Based on our Purpose. to fill the world with emotion through the power of creativity and technology. we at Sony will continue our efforts to grow and deliver even greater value by. getting closer to people,Kenichiro Yoshida, President and CEO Representative Corporate Executive Officer. Sony s Value Creation are underpinned by technology and by our highly Let me explain the three focus areas of our mid. diverse and talented employees range plan the progress we have made in the first. Sony s founders had a strong desire to enhance Based on our unique purpose identity and year of the plan the fiscal year ended March 31 2019. people s lives through the power of technology direction we will harness our diversity and realize the and our future direction. Driven by the ambitions and technologies of kinds of value creation that only Sony can deliver The first focus area is to reinforce our user oriented. engineers who shared that dream Sony has helped to DTC services and creator oriented content IP We aim. enrich society by creating numerous innovations and to strengthen ties with users and enhance DTC. hit products that have touched people s hearts Sony s Three Strategic Focus Areas services that generate recurring revenue as we acquire. deep commitment to delivering social value and revitalize content IP and maximize its value. originated from these dreams and desires from the Since taking office as CEO in April 2018 the most Our progress in the fiscal year ended March 31 2019. time of its founding and this will never change important responsibility for myself and the rest of the can be measured by the growth of PSN which has. For Sony to remain a meaningful presence in the management team has been to guide Sony to its next become one of the world s leading network services. world the approximately 110 000 employees of the growth stage so that we can pass an even better Sony Game Network Services G NS posted the largest. global Sony Group must work together to create new on to the next generation sales and profit ever recorded by a single segment of. value from a long term perspective This led to the In the fiscal year ended March 31 2019 we Sony and that achievement was driven by PSN which. creation of Sony s Purpose Values which we achieved record profits for the second consecutive accounts for more than 60 of the segment s sales. defined this year year as the initiatives we have been implementing In addition PlayStation holds the top position in. Sony s Purpose sets forth the meaning of our over the last few years bore fruit These include the console game market and PlayStation 4 PS4 is. existence Furthermore our identity is a creative PlayStation Network PSN the network service for expected to reach the major milestone of cumulative. entertainment company with a solid foundation of the PlayStation business which we launched in 2006 sales of 100 million units by the end of the fiscal year. technology and our overall corporate direction is and CMOS image sensors which replaced CCDs as ending March 31 2020. getting closer to people These touchstones the mainstay product of our semiconductors business The most important way game consoles create. together with Sony s business portfolio and the in 2004 Going forward Sony will continue to take value is by providing users with an immersive play. relationships between technology and people advantage of its diverse businesses to create new experience Providing that experience is one of the. constitute Sony s value creation model I believe that value Group wide key aspects we have worked to ensure over successive. Sony s uniqueness stems from the fact that for us Based on this approach we formulated a mid range generations of the PlayStation console We plan to. getting closer to people refers not only to users but plan that incorporates our corporate direction of further enhance such an immersive experience on the. also creators and that all of our diverse businesses getting closer to people next generation console we are currently developing. A Creative Entertainment Company with a Solid Foundation of Technology. Fill the world with emotion,through the power of creativity and technology. Getting closer to people,Creators Users,Business Entertainment Electronics DTC Services. Technology,Foundation,for Creating,Sony s Value Creation Model. by dramatically increasing the graphics rendering and maintain and improve our relationships of trust The third focus area is to maintain our global number. speed Improvements in communication and network with external game development communities one position in imaging applications and become the. environments and mobile devices make delivering aiming to create hit titles to build upon our global leader in sensing applications in the area of. seamless experiences anywhere and anytime more of achievements in the fiscal year ended March 31 2019 CMOS image sensors CMOS image sensors are not. a reality than ever before PlayStation already The second focus area is to generate a sustainably only indispensable in image capturing and content. delivers services that allow users stress free access to high level of cash flow from our branded hardware creation but they are also key devices for the future in. game titles so that they can continue their play business The success of our business restructuring areas such as the Internet of Things IoT artificial. anytime and anywhere and we will continue to and shift toward higher added value products has intelligence AI and autonomous driving In the fiscal. evolve players experiences on PlayStation through made the branded hardware business highly year ended March 31 2019 we maintained our number. advances in computing streaming the cloud 5G and profitable We will continue to develop products that one market position in imaging applications for CMOS. other technologies connect creators and users in this business image sensors by delivering a stable supply to the. As for content IP we have created numerous hits in In April 2019 to further accelerate new value smartphone market which is evolving not only toward. games music and pictures leveraging our IP portfolio creation and business optimization we integrated all higher resolution but also toward multiple camera. By making EMI Music Publishing a wholly owned of our consumer electronics businesses and lenses and larger sized sensors In sensing applications. subsidiary Sony has become the largest music professional solutions businesses into one segment our products were adopted by a major automotive. publishing company in the world To further reinforce named Electronics Products Solutions EP S The product manufacturer in the fiscal year ended March. our music content portfolio we are working to attract segment generated cash flows from operating 31 2019 and our technologically superior indirect Time. and nurture artists in popular streaming genres and activities and cash flows from investing activities1 of Flight iToF sensor was adopted by leading. we will cultivate local artists and songwriters in regions totaling approximately 90 billion second only to the smartphone manufacturers In addition to using the. where we foresee opportunities for market growth G NS segment The mission of EP S is to continue to technologies we have accumulated over many years as. including China As one of the major Hollywood deliver products through which creators including a source of competitiveness a key evolutionary. studios with a history spanning nearly a century Sony movie directors photographers and music artists can direction and growth opportunity is to embed AI into. Pictures Entertainment SPE holds assets including an fully express their creativity as well as consumer our CMOS image sensors and realize Edge AI or. extensive content library with potential for products that leverage professional grade intelligence at the edge. revitalization as well as the rights to produce movie technologies Sony s evolution as the most trusted 1 This measure is not in accordance with U S GAAP However Sony. and television content featuring more than 900 Marvel and loved brand for creators and users will continue believes that this disclosure may be useful information to investors. characters In the game business we will invest For more details please refer to the Cash Flows CF by segment. as we provide all modes of entertainment capture, in the supplemental information provided with the financial results. proactively to further enhance first party game titles record watch listen and play presentation for the fiscal year ended March 31 2019. Message from the CEO,Creating Value through Diversity. In the 73 years since its founding Sony has evolved. into a company with a wide ranging business, portfolio that includes games music motion pictures. Entertainment Electronics DTC Services,electronics semiconductors and financial services. Our source of value creation lies in the diversity of. Sony s businesses technologies and people While,our businesses continue to refine their unique. advantages Sony as a group will accelerate new,value creation through greater synergy between. these businesses,Broadly speaking our businesses can be divided. into three domains Entertainment Electronics and Technology. DTC Services Entertainment started with the,establishment of CBS Sony Records in 1968 and. since then has expanded into areas including games. motion pictures and animation In all of these,Foundation. businesses Sony has supported the activities of,for Creating. creators in producing content that delivers emotional. experiences Electronics which has been one of our, core businesses since our founding enables creators. to produce content and delivers it to users,DTC services which originated in 1979 with the. establishment of Sony Prudential Life Insurance, currently Sony Life Insurance now includes services. such as PSN and Financial Services which connect us. directly to users, Venom 2018 Columbia Pictures Industries Inc and Tencent Pictures USA LLC All Rights Reserved MARVEL and all related character names 2019 MARVEL. The Crown 2018 Left Bank Pictures Television Limited All Rights Reserved. TYPE MOON FGO PROJECT, Sony Interactive Entertainment Inc All rights reserved Design and specifications are subject to change without notice. God of War 2018 Sony Interactive Entertainment LLC God of War is a trademark of Sony Interactive Entertainment LLC. PlayStation and are trademarks or registered trademarks of Sony Interactive Entertainment Inc. Technology is indispensable to all of Sony s Sony and the Planet Earth. businesses and the key component to accelerate and. generate synergy among them The crucial point here Following my appointment as President of Sony I. is to leverage our own technology to empower our started a blog on our internal website The title of my. diverse businesses Through our technical strengths in first post was Sony and the Planet Earth I wrote this. audiovisual image sensor robotics and AI we are based on my belief that it is essential for Sony to. forming links between our electronics games motion contribute to society our environment and the earth. pictures music and financial services businesses In As a citizen of both the earth and society Sony will. addition I believe it is important to build a network or continue to enhance its economic value and at the. communities around our expertise same time contribute to the environment and to society. We are also working to generate synergy between by creating social value through its business activities. our businesses by getting even closer to both While there are many ways to contribute to society. creators and users Spider Man is a good example of a based on Sony s Purpose to fill the world with. strong content IP that we are rolling out across a wide emotion one of the greatest social values Sony can. range of media including motion pictures and games provide is to enrich people s hearts through its. In addition Sony Interactive Entertainment SIE has creativity and technology Recognizing that Sony s. set up a new production team at SPE s studio to turn existence depends on a healthy environment and. PlayStation game IP into film and television content society we will continue to promote environmental. and collaborations between pictures and music have and human rights initiatives throughout our supply. begun to take shape Competition to attract creators chain Moreover I believe Sony s technologies. is intensifying but I believe that the diverse including imaging and sensing can contribute to. opportunities we offer in music video and games advances in medical care education mobility and. along with Sony s strength in technologies will expand security We will continue to develop business in these. the potential for collaboration with top creators areas with the intention of making them pillars of. Sony s contributions to society in the 2020s,Message from the CEO. Sony s Founding Prospectus states that the company. was established to create a stable work environment. where engineers could realize their societal mission. and work to their heart s content Since its founding. Sony has consistently maintained a commitment to, bringing new value to society through all its businesses. Sony will continue to take on the challenge of creating. value by enriching people s hearts through the delivery. of emotional experiences helping creators realize their. dreams and contributing to society through the, delivery of safety and reliability At the same time I. believe it is important to build deeper relationships. with our customers employees shareholders and,other stakeholders through these efforts. We will manage Sony from a long term perspective,so that we can continually deliver emotional. experiences and sustainably create social and, economic value Please keep looking forward to great. things from Sony, Sony has defined its Purpose Values its identity as a creative. entertainment company with a solid foundation of technology. and its corporate direction as getting closer to people. Based on our purpose identity and direction we will harness. our diversity and realize the kind of value creation that only. Sony can deliver,A Creative Entertainment Company,with a Solid Foundation of Technology. Spider Man Into the Spider Verse 2018 Sony Pictures Animation Inc. All Rights Reserved MARVEL and all related character names 2019 MARVEL. 01 Sony s Purpose Values,02 Message from the CEO, By creating greater value under the corporate direction of. Value Creation at Sony, getting closer to people as a creative entertainment company. 1 1 Profile, with a solid foundation of technology Sony is enhancing its. 12 A History of Creating Value through Diversity, corporate value and contributing to a sustainable society. 14 Business Portfolio and Value Creation,16 Value Creation Case Study Business Diversity. Driving the PlayStation Business,20 Financial Highlights. 22 Mid Term Strategy,Sony in Numbers 26 Message from the CFO. Businesses and Foundation for Creating Value, 8 7 trillion 753 4 billion 27 3 114 400 31 Foundation for Creating Value. Sales and operating Operating cash flow Return on equity Number of 44 Creating Value in Each Business. revenue excluding financial services ROE employees. 56 Corporate Governance, Note One year period ended March 31 2019 Number of employees as of March 31 2019. Operating cash flow excluding financial services is a non GAAP financial measure but Sony believes that 62 Group Information. it may be useful to investors Please see pages 20 21 for more information. A History of Creating Value through Diversity,From the Dream of Sony s Founders. In 1946 one year after the end of World,Founding Prospectus. War II Masaru Ibuka Akio Morita and more, than twenty others established Tokyo To establish an ideal factory that stresses a spirit of freedom and. Telecommunications Engineering Corporation open mindedness and where engineers with sincere motivation. the predecessor of Sony out of a desire to use, can exercise their technological skills to the highest level. their technologies to contribute to society The,company started with radio repair going on to. develop and sell products for the mass market,The company was set up to establish an ideal. factory that stresses a spirit of freedom and,open mindedness that will through. technology contribute to Japanese culture,In 1958 the company changed its name to. the current Sony Masaru Ibuka and Akio Morita,chose a name worthy of more than just an 1 Music. electronics manufacturer reflecting an,Semiconductors. ambition to take on challenges in new fields,beyond electronic products and become a. Electronics, corporate group with a global presence 1946 1950 1955 1960 1965 1970. 1 1968 Entered the content business with 3 1979 Commercialized ICX008 a. the establishment of CBS Sony Records 120 000 pixel CCD image sensor After. a joint venture with CBS of the United that worked to cultivate differentiated. States Established an unconventional technology and commercialized the. business model for the industry by IMX001 a CMOS image sensor in 2000. owning its own pressing plants and Currently the number one global. having in company operation of its artist market share by revenue for CMOS. discovery and management business in image sensors. addition to selling records Renamed Source Sony,Sony Music Entertainment Japan in 1991. 2 1979 Established Sony Prudential Life 4 1988 Sony Group s strategy to drive its. Akio Morita left and Masaru Ibuka right, Insurance renamed Sony Life Insurance business with the two pillars of hardware. in 1991 a joint venture with The and content gained clear expression. Prudential Insurance Company of with the acquisition of CBS Records a. Origin of the Name Sony, America Sony became a new corporate subsidiary of CBS of the United States. The name was coined by combining the Latin, group with financial institutions which at the time conducted the music. word sonus which is the root of the word,business in 40 countries Renamed. sonic and sonny which connotes a young,Sony Music Entertainment in 1991. man or boy, Consolidated Sales and Operating Revenue Sales Composition by Segment. Home Entertainment, Pictures Insurance Financial Services Home Entertainment Financial Services. Music 7 Pictures 6 Electronics 11 Sound 15 13 Imaging Products. Pictures 24 Solutions, 3 695 5 Games 7 314 8 7 7 177 6 8 665 7 6 Communications. billion billion billion billion Imaging Music billion. Electronicss Games,80 13 Products,9 10 Semiconductors. Electronics 12 Solutions,9 Mobile Products Network 27. 16 Devices Communications Services,1980 1990 2000 2010 2018 FY. 5 Pictures,2 Financial Services,1975 1980 1985 1990 1995 2000 2005 2010 2015 2019. 5 1989 Acquired U S based Columbia 7 1995 Established Sony Communication 9 2006 Acquired the digital single lens. Pictures aiming to establish a wide Network renamed Sony Network reflex DSLR camera related business. range content business that includes Communications in 2016 with equity from Konica Minolta Holdings Inc. film and television in addition to the participation by Sony Corporation Thereafter developed the Alpha. music business Renamed Sony Sony Music Entertainment Japan and brand which leveraged Sony s devices. Pictures Entertainment in 1991 Sony Finance International In 1996 and technologies to become a driver of. began operating the Internet provider the full frame interchangeable lens. service So net camera market, 6 1993 Established Sony Computer 8 2001 Established Sony Ericsson Mobile 10 2013 Established Sony Olympus. Entertainment renamed Sony Interactive Communications renamed Sony Mobile Medical Solutions as a joint venture of. Entertainment in 2016 as a joint venture Communications in 2012 as a joint Sony Corporation and Olympus. between Sony Corporation and Sony venture in the mobile phone business Corporation to contribute to the. Music Entertainment Japan The between Sony and Ericsson of Sweden advancement of medicine worldwide. following year the PlayStation home Have since developed the Xperia series by combining Sony s cutting edge. video game console was launched in of smartphones as a core product electronics technologies with Olympus. Japan marking Sony s full scale entry manufacturing and R D expertise in. into the game console business the area of medical products.
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