Sony 2008 Annual Report Download - page 15

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13
the home, and then to key mobile products such as Walkman® and
Sony Ericsson phones.
This initiative is expected to generate new revenue streams and
is one of the clearest opportunities for Sony to leverage its
entertainment assets to differentiate our electronic products.
International Expansion
Sony’s products and services are already available around the world.
However, the bulk of our sales—approximately 74% in fi scal year
2007—came in roughly equal proportion from our traditional sales
strongholds of Japan, North America and Europe. Our largest
regional growth economic opportunities exist outside these
comparatively mature markets, led by the BRIC countries—Brazil,
Russia, India and China. These four nations are some of the world’s
fastest-growing economies and represent over 40% of its
population. We have already achieved great success in India, with
the strong presence of our fi lm, television and music content
complementing our Electronics business. We can leverage this
model in the other BRIC countries and other emerging markets.
Another goal we have set is to double our revenues from the
BRIC countries over the next three years. We achieved ¥1 trillion
in revenues from the BRIC countries (including Sony Ericsson and
SONY BMG MUSIC ENTERTAINMENT) in fi scal year 2007, and we
aim to achieve ¥2 trillion in revenues by fi scal year 2010.
Financial Strategies
We have targeted a 5% operating profi t margin as a baseline of
profi tability needed to generate funds and continue to lead and
innovate. We consider this to be the minimum acceptable level
going forward. In addition, return on invested capital (ROIC) has
been formally established as a fundamental framework for evaluating
all capital investments across the Sony Group. We will thoroughly
review the expected return on capital before implementing
investments or making acquisitions. Sony is also targeting a return
on equity (ROE) of 10% by fi scal year 2010.
The business environment in which Sony operates is chang-
ing rapidly and, with advances in digital technology and
broadband networks, technological innovation is moving at
a pace never experienced before. To be a leading company
in the digital age, Sony aims to leverage its unique com-
petitive advantage of producing both hardware and content,
and continue to offer cutting-edge products together with
superior content and services to meet the needs and expec-
tations of our customers. We are also committed to achiev-
ing our mission—to become the leading global provider of
networked consumer electronics and entertainment.
June 26, 2008
V
ideo Service Rollout Strate
gy
R
ollout video service across key Sony products by fi scal year 201
0
PlayStation
(Key Phases)
Summer 2008
Key mobile products
Fiscal year 2010
PCs and consumer electronics for the home
08SonyE_P1_P13_0804.indd 1308SonyE_P1_P13_0804.indd 13 08.8.7 2:17:51 PM08.8.7 2:17:51 PM