We will not delay the rebuilding of our electronics business. To accomplish this, we must urgently acknowledge the issues at hand and swiftly and decisively execute initiatives to resolve them, so that we may restore Sony to excellence.
We are taking the following important steps in response to the many challenges our electronics business faces. In the rapidly changing and highly competitive global electronics market, we must develop groundbreaking products, services and technologies that maximize Sony´s distinctive technologies and restore our television business to profitability. We must also accelerate management decision making and make focused and selective investments based on our long-term strategies. In implementing these changes, I strongly believe that our electronics business will be rebuilt.
To meet these challenges, we will focus on the five key initiatives outlined in our new corporate strategy announced on April 12, underpinned by Sony´s core strengths:
● Strengthen core businesses: Digital Imaging, Game, Mobile
● Turn around the Television business
● Expand business in emerging markets
● Create new businesses and accelerate innovation
● Realign our business portfolio and optimize resources
Through the diligent execution of these initiatives, we aim to further transform our electronics business and, for the entire Sony Group, target sales of 8.5 trillion yen, an operating margin in excess of 5% and a return on equity (ROE) of 10% in fiscal year 2014.
In order to swiftly rebuild and restore the Sony Group, we have introduced a new top management structure aimed at accelerating decision making and strategic execution.
My new top management team, including Masaru Kato, CFO; Tadashi Saito, CSO (Chief Strategy Officer); Shoji Nemoto, head of technology; and Kunimasa Suzuki, head of product strategy, will work together with me as part of a unified “One Management” structure, designed to ensure that all electronics business-related decisions made by me as CEO are implemented in the most effective and smoothest manner possible.
To reinforce our technology development capabilities and ensure that they are tied closely to product strategy, Shoji Nemoto and Tomoyuki Suzuki, both highly experienced and knowledgeable individuals with engineering backgrounds, will lead our R&D endeavors. They will work with Kunimasa Suzuki to ensure the efficient development of technology for existing product lines, as well as spearhead efforts to develop new concepts and acquire next-generation core technologies.
We have also united our consumer and B2B businesses, creating a single entity that will enable us to accelerate management speed and at the same time enhance cooperation among Sony Group companies. In addition, I integrated our various medical related businesses, which have to date been dispersed across several business units, into a dedicated medical business, overseen by Executive Deputy President Hiroshi Yoshioka.
I also appointed Michael Lyton, Chairman and CEO of Sony Pictures Entertainment Inc., as CEO of Sony Corporation of America, where he now oversees our global entertainment businesses headquartered in the U.S., including motion picture, television and music businesses.
Our integrated entertainment businesses allow us to deliver ever-more exciting user experiences by providing content that is delivered to our hardware through our network services. These user experiences can dramatically change one´s entertainment lifestyle, and we plan to continue delivering new experiences, as we have done throughout our history.
I have adopted the phrase “One Sony” to symbolize the cohesive management approach I employ that draws on the strengths of the entire Sony Group and emphasizes rapid decision making. Under this banner, I pledge to revitalize our electronics business, and ensure the continued success of our industry-leading entertainment businesses and our highly profitable financial services businesses.