SONY C O R P O R A T I O N

A G E N D A Company History Founder : Akio Morita Corporate Policy Strategy & Organization

Company History 1946 - Tokyo Telecom Engineering 1950 - First Japanese tape recorder 1955 - First transistor radios 1957 - First pocket-sized radio 1958 - Name change to Sony (from "sonus," Latin for "sound," and "sonny," meaning “little man”) 1968 - Intro of Trinitron color TV – explosive growth 1979 - Walkman personal stereo

Company History 1980’s - Major Producer of computer disks/ floppies 1988 - Bought CBS Records for $2 billion. 1989 - Bought Columbia Pictures for $4.5 billion. 1994 - Sony Playstation released to great success. 1997 - JV with Philips (inventors of the CD) to make Super Audio CD 1998 - Launched Wega flat-screen TV 1999 - JV with Philips, Sun Microsystems to develop networked entertainment products 1999 - Walkman with MP3 capabilities

Company History 2000 - Formed PlayStation.com – games/software online 2000 - Restructured all entertainment units under Sony Broadband Entertainment 2001 - JV Sakura Bank and JP Morgan Chase for online bank.

Founder: Akio Morita Groomed to take over 14-generation family Sake business Strong entrepreneurial spirit: Tokyo Telecom Engineering Revolutionary thinking: Brand is lifeblood of company success Listed Sony on NYSE in 1970. 1966 “Never Mind School” emphasize the capabilities of individuals, rather than their prior academic background and history – a revolutionary concept for Japan. Strong belief R&D leads to new ways to meet customer needs. Co-chair of various conferences, including the Japan-U.S Business Council, The Trilateral Commission, and the World Economic Forum in Davos.

Founder: Akio Morita Instrumental in easing trade friction with the U.S by playing leading roles in the Keidanren (Japan Federation of Economic Organizations), the Japan-U.S. Economic Relations Group. 1998 - Morita chosen as one of Time magazine’s 20 most influential business people of the 20th century - the only Asian member on its list. Akio Morita: The Sony man who put Japan on the corporate map passed away in October 1999.

Procurement Policies Reflect Corporate Policy Open Doors and Fairness Quality and Competitive / Reasonable Price Delivery Assurance and Services Optimum Procurement Technology Development Suppliers' Management

Strategy and Organization Continue to focus on communications and home electric appliances, but also content and services Vertically integrated business Vision is to become a broadband entertainment company CEO Idei Nobuyuki wants Sony to be wherever people gather (Internet) Product-Market Strategy: Apply IT to product design, production, distribution, and sales

Sony Computer Entertainment: Sony Business Units Electronics: Audio,Video, Televisions Information and Communications. Sony Computer Entertainment: Hardware and related software Sony Music Entertainment: Sony Music Entertainment Inc.: Columbia Records, Sony Classical, Sony Discos,Sony Disc Manufacturing, and Sony Music Nashville Sony Music Entertainment Japan: Sony Records and Epic Records

Sony Pictures Entertainment – Sony Business Units Sony Pictures Entertainment – motion picture - production, acquisition and distribution television – programming, production, acquisition and distribution home video - acquisition and distribution television broadcasting operation of studio facilities Sony Life Insurance Other: Sony Finance International, Inc. Sony Trading International Corporation Sony Broadcast Media Co. Ltd. Other local entertainment businesses in Japan, U.S., and Germany. Blue Streak Wheel of Fortune Big Daddy

Region $ (Millions) % of Total Sony Business Units Region $ (Millions) % of Total Japan 20,012 32 US 19,124 30 Europe 13.872 22 Other Regions 10,074 16 Total 63,082 100