Sony Group Corporation · TSE:6758
Sony — Investor Day (May 2022)
67 slides from Sony's investor day presentation, May 18, 2022
Slide 1: Corporate Strategy Meeting
Corporate Strategy Meeting Chairman, President and CEO, Sony Group Corporation Kenichiro Yoshida 2022.5.18
Slide 2: Purpose / Direction ～ Stakeholders
Hello everyone. Thank you for joining us today. First of all, I would like to express my condolences to those who have been victimized by Russia's military action in Ukraine. We hope that this crisis will be resolved, and that peace will be restored as soon as possible. The Sony Group continues to p
Slide 3: Kando, people and employees
People are the ones who create Kando, and they are the ones who receive it. Our corporate direction is getting closer to people: both creators and users. However, there is another group to whom our management team needs to get closer. That is our employees who share our Purpose and who drive our bus
Slide 4: Responsibility and Contribution to People, Society and the Earth
Responsibility and Contribution to People, Society and the Earth As a company centered on people, we consider it important to fulfill our responsibility to society, in which people exist, and to the global environment, and to contribute through our technologies and businesses. 4
Slide 5: Road to Zero plan accelerated
The Road to Zero plan we have been pursuing since 2010 is an example of our emphasis on responsibility. Today we announced that we would be accelerating, by 10 years, our targets of achieving carbon neutrality and 100% renewable electricity use for the entire Sony Group. 5
Slide 6: Investment and Growth of Three Business Domains Centered on People
Investment and Growth of Three Business Domains Centered on People The Sony Group has six business segments that are centered on Kando and people. However, in addition to that, I think of them as three different business domains. These are businesses that move people's hearts, businesses that connec
Slide 7: Over 1 trillion yen in strategic investments
Over the past 4 years, we have executed over 1 trillion yen in strategic investments in this area. Principal investments include the acquisition of EMI Music Publishing in 2018 in the IP area and the acquisition of Crunchyroll in 2021 in the DTC services area. 7
Slide 8: DTC relationships and vision of connecting with 1 billion people
In the DTC space, we value our relationships with partners who deliver Kando to users. At the same time, we have a long-term vision of Sony directly connecting with 1 billion people interested in entertainment. The purpose of this direct connection is to learn from users. 8
Slide 9: Businesses that Connect People to People
Businesses that Connect People to People Businesses that connect people to people provide technology, products and services to create and experience Kando content. 9
Slide 10: Electronics products and CMOS image sensors
At the core of this area are our electronics products and CMOS image sensors. Smartphone mobile devices, have turned users around the world into creators, and CMOS image sensors are a primary component of these devices. We have invested approximately 1 trillion yen over the last four years, and we r
Slide 11: Businesses that Support People
Businesses that Support People Health and assurance are a prerequisite for people to create and enjoy Kando. Our medical and financial services businesses are included in these businesses which support people. 11
Slide 12: Medical business
In the medical business, products that leverage our optical disc technology to study cells are contributing to research on cancer and viruses, and to the manufacture of cellular medicine. 12
Slide 13: Financial services business
The financial services business is a business that we made into a wholly owned subsidiary by investing approximately 400 billion yen in 2020. We provide peace of mind and convenience in daily life to over 8 million customers in areas such as life insurance, non-life insurance and banking. 13
Slide 14: Investments, EPS growth and share repurchases
As I have just outlined, we have actively made investments in these three business domains to increase our corporate value. We have set growth in earnings per share as a discipline for management, and we have positioned investment in Sony through the repurchase of our shares as part of our strategic
Slide 15: Initiatives in our Three Entertainment Businesses
Initiatives in our Three Entertainment Businesses So far, I have discussed investment and growth across the Sony Group. From here, I would like to talk about three points. 15
Slide 16: Game, music and pictures businesses
The first is about our game, music and pictures businesses that move people's hearts. 16
Slide 17: Growth of game, music and pictures businesses
These three businesses have continuously grown since the fiscal year ended March 31, 2013 when we established Kando as the keyword of our management. In the previous fiscal year, their total sales exceeded 50% of our consolidated sales for the first time and their operating income accounted for two-
Slide 18: Initiatives in the Gaming Area
Initiatives in the Gaming Area In the gaming area, we are trying to get closer to creators through the creation of content IP while also getting closer to users through DTC services. Console Business/ PlayStation Direct The PlayStation®4 and PlayStation®5 (“PS5™”) consoles are one axis of this busin
Slide 19: PlayStation Network
PlayStation™Network The PlayStation Network, which is the largest DTC service in the Sony Group, is another important service for this business. It generates more than 1 trillion 800 billion yen in sales over the network and more than 100 million accounts access the service currently. 19
Slide 20: PlayStation Plus renewal
In order to strengthen PlayStation™Network, we will significantly renew the subscription service, PlayStation®Plus, to include the cloud streaming service that we have been providing since 2015 and roll out the service in June. 20
Slide 21: Group collaboration on PlayStation Network
As is shown here, we are working on further Group collaboration regarding the PlayStation™Network. 21
Slide 22: PlayStation Studios
PlayStation Studios As a provider of this business, we value our relationships with third party studios. At the same time, we have made several acquisitions and equity investments over the last year in PlayStation Studios, which are our first party studios. In addition, to provide access to our game
Slide 23: Acquisition of Bungie
Finally, there is Bungie, which we agreed to acquire this year and for which we have high expectations. We believe it will be a catalyst to enhance our live game services capabilities, which I will discuss later. Our acquisition of Bungie also represents a major step forward in becoming more multi-p
Slide 24: Initiatives in the Music Area
Initiatives in the Music Area In the Music space, we aim to be the closest company to artists and songwriters, and we are focused on supporting them from the creative side. This market has been expanding since 2014 due to the growth of streaming services. As a leader in the industry, Sony is continu
Slide 25: Forces driving music market growth
The forces driving the growth of the music market aside from the major labels are independent labels, independent artists and distribution partners that are diversifying. 25
Slide 26: Independent Labels
Independent Labels We provide various support primarily to independent labels through The Orchard. We have also acquired Som Livre, the largest independent label in Brazil, a growing market, and we are strengthening its ties with The Orchard. In addition, we are promoting efforts to make more artist
Slide 27: Independent Artists
Independent Artists We are strengthening our support of independent artists through the acquisition of AWAL, which, together with The Orchard, provides them with recording and distribution services. 27
Slide 28: Expansion of Distribution Partners
Expansion of Distribution Partners On the DTC side, which delivers the music of artists, we mainly collaborate with partners who operate music streaming service platforms. Such platforms are continuing to grow. In addition, we are collaborating with service partners in various other genres, to expan
Slide 29: Artist discovery through social media and creating hits
Artist discovery through social media and Creating hits The way music is made and enjoyed is expanding in the social media space. In Japan, social media is leading to the creation of new hits by enabling people to find and popularize new creators. Music is not just delivered; a community is created
Slide 30: Supporting Artists' Wellness
Supporting Artists’ Wellness Our support for music creators who produce emotionally impactful content that moves people’s hearts is not limited to the creative side. We are also conducting initiatives across the globe to support the wellness of our talent. 30
Slide 31: Initiatives in the Pictures Business
Initiatives in the Pictures Business Next is Pictures. As in Music, this business works to support creators, as well as to create and expand content IP. Strengthening Television Productions / IP Creation Capability Due to the growth of video streaming services, digital viewing on TV and mobile is in
Slide 32: Expansion of Sony Pictures Universe of Marvel Characters
As of 5/10/2022 Expansion of Sony Pictures Universe of Marvel Characters Meanwhile, in the Motion Pictures space, we are emphasizing theaters which are rooted in physical presence and live experience, and we find that this approach strongly motivates various creators to come work with us. The theatr
Slide 33: IP Development that Takes Advantage of the Diversity of the Group
IP Development that Takes Advantage of the Diversity of the Group Uncharted is an example of increasing the value of our IP across the Sony Group. 33
Slide 34: Increasing the value of game IP
We plan to continue to increase the value of game IP, created by creators, by deploying it into new genres such as motion pictures and television shows. 34
Slide 35: Demon Slayer: Kimetsu no Yaiba
Although it resides in a different business segment, “Demon Slayer: Kimetsu no Yaiba”, is one of our most important IPs. The original comic has been adapted by Aniplex to various forms of entertainment including the anime series. 35
Slide 36: DTC Based on Communities of Interest
DTC Based on Communities of Interest In addition to theaters, distribution partners are important for us to deliver Kando content to people. We are taking advantage of our position as an independent studio provider to accelerate our collaboration with various distribution partners. 36
Slide 37: Communities of Interest
I call the community of people who share Kando experiences and interests “Communities of Interest.” To get closer to user motivations and learn from them, Sony also focuses on direct delivery in specific areas. 37
Slide 38: Crunchyroll and Funimation merger
One of them is anime. In March of this year, we merged the service of Crunchyroll and Funimation. 38
Slide 39: Sony LIV and merger with Zee Entertainment
Another is India, where we are growing Sony LIV, a DTC service rooted in local culture. Also, at the end of last year, we signed definitive agreements to merge Sony Pictures Networks India, a subsidiary of Sony Pictures, with Zee Entertainment. We believe the merger will help further accelerate the
Slide 40: Kando Space / Metaverse and Mobility
Kando Space / Metaverse and Mobility Next, I would like to talk about two Kando spaces that can be frontiers in the future: the Metaverse and Mobility. 40
Slide 41: Kando Space that Intersects and Expands
Kando Space that Intersects and Expands As I mentioned at the beginning, the keyword of Sony's management is Kando. Creating and delivering Kando is something that Sony has done since its founding. The ways in which Kando is delivered have evolved thanks to technology. Kando can now be delivered via
Slide 42: Evolution of network entertainment experiences
The entertainment experience over the network is still evolving. From downloads to streaming, and now to social media, interactive experiences whereby people can share time and space are evolving. 42
Slide 43: Live network space and real-time CG
I think that the essence of entertainment is to be live, whereby time and space are shared. Experiences over the network are also evolving into more live ones through technology. The technology that connects people in this live network space derives from game technology centered on real-time CG rend
Slide 44: Fortnite from Epic Games
Fortnite, from Epic Games, is one example. It has evolved into a social place where time and space are shared; it is not just a place for playing games. As a result, games have become a place of new expression for artists and a place to increase the value of non-game IP. 44
Slide 45: Efforts in a Live Network Space
Efforts in a Live Network Space In this way, the Metaverse is at the same time a social space and a live network space where games, music, movies, and anime intersect and expand. Now I will discuss some of our efforts in this area. In the games space, our efforts center on Bungie, the acquisition of
Slide 46: Partnership with Manchester City Football Club
Sports are also live entertainment. I think there is an opportunity to create new Kando through technology here as well. One example is the partnership with Manchester City Football Club. The stadium is an important space for the sports community. By reproducing the stadium itself and the athletes i
Slide 47: Live music performances in game spaces
When it comes to live experiences that share time and space, music immediately comes to mind. Sony Music artists have already performed many live performances in game spaces. 47
Slide 48: Virtual concerts and volumetric capture
In addition to these efforts, we are working to create new live experiences by connecting artists and users such as the virtual concert by Madison Beer and the virtual space project that leverages our volumetric capture technology. 48
Slide 49: Leveraging entertainment businesses and game technology
Sony has a variety of entertainment businesses such as games, music, movies, and anime. In addition, Sony has the game technology we have been working on for many years. We will work to leverage these advantages to create a live network space that connects creators and users, while also generating n
Slide 50: Proposals in Real Space: STAR SPHERE
Proposals in Real Space Sony is also working on new entertainment in real space. STAR SPHERE is one example. It is a DTC service in outer space that uses cameras mounted on artificial satellites. The satellites are expected to be launched in October or later this year. 50
Slide 51: LinkBuds and partners
We also have LinkBuds which offer a new experience overlaying digital sound over that of the real world. In this area we are working with partners such as Microsoft and Niantic. 51
Slide 52: Contribution to the Mobility Space
Contribution to the Mobility Space Mobility is an area where we see great potential as another Kando space. In 1979, Sony created a new lifestyle whereby people could carry around the Walkman and enjoy audio anywhere. Now we are aiming to turn the mobility space into a new entertainment space. 52
Slide 53: Mobility as the next megatrend
The megatrend that has transformed people's lives in the 21st century is mobile, and we believe mobility will be the next megatrend. Currently, there are more than 1 billion vehicles in operation. The combination of mobility with information and communication technology will make these billion vehic
Slide 54: Safety, entertainment and adaptability
Based on this structural change, Sony aims to contribute to the three areas of “safety”, by improving safety, “entertainment”, by transforming the mobility space into an entertainment space, and “adaptability” by supporting the evolution of the vehicle. 54
Slide 55: Safety: image sensors and SPAD depth sensors
In the safety area, we will contribute to safer mobility through our sensor technologies such as CMOS image sensors and SPAD depth sensors for LiDAR. These sensors are also a growth area for our image sensor business, and they are beginning to be adopted by many automotive manufactures. 55
Slide 56: Adaptability of vehicles
Adaptability enables the evolution of vehicles in terms of safety and entertainment. We aim to contribute to the advancement of mobility, which continues to evolve in terms of safety and functionality, by leveraging the cloud services knowledge cultivated through games and aibo. 56
Slide 57: VISION-S research and development
We have been working on the research and development of “VISION-S”. As a result of these efforts, we have learned that to contribute to the evolution of mobility, we need to commercialize the vehicle and present it to the world, but that we cannot do this on our own. 57
Slide 58: Strategic alliance with Honda
Thus, we announced a strategic alliance with Honda. Through a joint venture we aim to establish in the future, we aim to start selling electric vehicles in 2025 by combining Sony’s technology in the three areas I discussed with the mobility development capabilities that Honda has cultivated over man
Slide 59: Technology
Technology So far, I have discussed three businesses that deliver Kando, as well as new Kando spaces as our growth area. Lastly, I will discuss technology. 59
Slide 60: Sensing and AI technology
Sensing and AI technology play an important role in ADAS, which supports the safety of mobility. Sensing and AI technology are not limited to mobility. They support the evolution of entertainment as well. In the area of audio and video that we have been working on, the importance of sensing technolo
Slide 61: Virtual production with Crystal LED
Also, in the sensing and AI space, virtual production technology that uses Crystal LEDs like the one used here is an example of technology that gets closer to creators. This month, Sony’s virtual production won the award shown here at the world’s largest electronic display society. In the virtual pr
Slide 62: Hawk-Eye tracking system
In addition, Hawk-Eye’s tracking system, converts athletes’ movements into data using advanced AI technology, virtually recreating it as 3D content in real time. The partnership with Manchester City Football Club I mentioned earlier uses this system. 62
Slide 63: Technology that Gets Closer to Creators: PlayStation VR2
Technology that Gets Closer to Creators The next-generation virtual reality system, PlayStation®VR2, is a technology that gets closer to users. VR is a live network device that enables people in real space to enter virtual space. This product uses technology that senses the movement of the user's ey
Slide 64: AI agent for racing and aibo
Other examples of technologies that leverage our sensing and AI technology include an AI agent for racing that increases the value of the experience in the game space and aibo, which grows by interacting with people by nature of its innate curiosity. 64
Slide 65: Closing: Purpose of creativity and technology
The evolution of entertainment is found in our Purpose: creativity and technology. As I have explained, Sony aims to grow by investing primarily in content IP, DTC, and technology, and by delivering Kando to the world along with our partners and our 110,000 employees. In closing, I would like to sho
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Slide 67: Cautionary Statement
Cautionary Statement 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 statementsinclude, but are not lim