1. IT/E&E Industry Dynamism in AP and Impact of ITA Japan Electronics & Information Technology Industries Association 20 th June, 2013 1

2. ContentsContents 1.JEITA 2.“Incorporated Growth” by ICT 3.“Global Supply Chain” by ICT 4.Dynamism in Asia Pacific region 2

3. 1. JEITA 3

4. Electronic Devices Consumer Products Electronic Components Industrial Equipment Principal Product Areas Others EDI-related Equipment, etc. JEITA’s mission is to foster a digital network society for the 21 st century, in which IT advancement brings fulfillment and a higher quality of life to everyone. JEITAJEITA 4

5. Support “ITA products expansion”, and you will get an excellent opportunity to have… 1.“Incorporated Growth” by ICT 2.“Global Supply Chain” by ICT 5 Benefits of Economic growth & Innovation

6. 2. “Incorporated Growth” by ICT 6

7. “Internet-connected Displays” are dominating ICT device market. Source Source: Fuji Chimera Research Institute 2012 7

8. If you don’t include “Internet-Connected Displays” in ITA, you will miss the “Growth” IHS iSuppli Market Research, Feb 2013 8

9. One Display Is Duty Free, One is Not Duty free Dutiable 9

10. Products outside current ITA coverage Digital wireless network Digital Network Digital Media Digital Editing BD/DVD players Video cameras/camcorders Multi-component IC Multi-chip IC Car navigation systems Digital TVs 10

11. Innovation and Inconsistencies ITA Duty Free Dutiable

12. More Inconsistencies ITA Duty FreeDutiable

13. Customer can enjoy the web contents as same as PC. Current feature of Blu-ray Disc Player 13 interface

14. Current feature of Blu-ray Disc Player Flash MemoryExternal HDD SD Disc USB HD Disc Home Network Net Services 2 nd Display Apps Full Browser Broadcasting Blu-ray Disc Player 14

15. 15 3. “Global Supply Chain” by ITC

16. ITA supports global supply chains Parts Liquid crystal modules Signal process. boards Camera module Produced in Brazil, China, Chinese Taipei, India Japan, Korea, Malaysia PartsMain production country Liquid crystal panelChina, Chinese Taipei, Japan, Korea, Singapore Printed circuit boards China, Chinese Taipei, EU, India, Japan, Korea, Malaysia, Mexico, Singapore, Thailand, USA, Vietnam IC China, Chinese Taipei, EU, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand, USA, Vietnam Capacitors China, Chinese Taipei, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand Resistors China, Chinese Taipei, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand ConnectorsJapan, Malaysia, Philippines, Thailand, Vietnam Inductors China, Chinese Taipei, Japan, Korea, Malaysia, Philippines, Thailand, Vietnam Assembled in Brazil, China, Chinese Taipei, India, Japan, Korea, Malaysia DTV Mobile Phone Intermediate commodities Finished Products

17. 17 4. Activities in Asia Pacific region ～ Sony EMCS (Malaysia) ～

18. Blu-ray Player ( 6.4 M Units/Yr ) Tuner ( 14.4 M Units/Yr ) Home Audio ( 2.7 M Units/Yr ) Headphone ( 1.4M Units/Yr ) DMP ( 2.4 M Units/Yr ) ( 2.4 M Units/Yr ) Multi Category, Multi Products, Multi Location, Multinational Workforce Multi Category, Multi Products, Multi Location, Multinational Workforce # of employee : 10,000 # of employee : 10,000 R&D Center R&D Center LCD TV ( 6.0 M Units/Yr ) Outline of Sony EMCS (Malaysia) 18

19. R&D Office (KL Tec) R&D Center Outlook Global Sourcing Members EMC Site 19 R&D Center in Malaysia

20. Value Chain (E&E industry) R&D (Basic Research) R&D (Product Design) Manufacturing Manufacturing Mass production SalesService R&D (Basic Research) SalesService Value Creation ・ Quality ・ Productivity ・ Cost MFG-driven Design R&D (Product Design) Manufacturing Manufacturing 20

21. Global Mother Plant World Wide Manufacturing & Quality Support Manufacturing Lead D4M Set Assy WWOPS creation / supply Jig modules creation Factory software supply Design Quality improvement Product Safety Production Quality Market Quality Customer Service Quality Engineering support Quality assurance / CS Parts sourcing Product control Other (KIT operation etc.) 21

22. 22 Summary

23. Support “ITA products expansion”, and you will get an excellent opportunity to have… 1.“Incorporated Growth” by ICT 2.“Global Supply Chain” by ICT 23 Benefits of Economic growth & Innovation

24. Thank you 24