10% or more ROE and 500 billion yen or more operating income are the financial targets for the Sony Group for FY2017, which is the final year of Sony's second mid-range plan (for the fiscal year ended March 31, 2016 ("FY2015") through FY2017). Although 500 billion yen in consolidated operating income is a high level of profit that has not been achieved for twenty years, Sony believes that it has built a foundation which will enable it to achieve this mid-range financial target through the fundamental transformation it has already implemented.
After achieving the mid-range targets, Sony aims to generate sustainably high profit and continue to be a company that continuously generates new value.
One of the primary reasons for the improvement in financial results up to and including the fiscal year ended March 31, 2017 ("FY2016") was the revitalization of the consumer electronics business, starting with the television business. By operating the business with a strategy of "emphasizing differentiation, not volume," Sony was able to revitalize the business to the point where it is expected to contribute stable profit.
In order to achieve the financial targets for FY2017 and to generate sustainably high profit for the next fiscal year and beyond, Sony believes that it not only needs consumer electronics to generate stable profit, but it also needs profits in the Game & Network Services segment to increase, the image sensor for mobile use business to recover and the Music and Financial Services segments to continue to contribute high profits.
In the Pictures segment, the profit forecast for FY2017 is significantly below the original target set in the mid-range plan, but Pictures remains an important business for Sony. Inside the Pictures business, the level of urgency with which measures are being implemented to improve the profitability of the Motion Pictures business has increased. Due to the nature of the business model for Motion Pictures, it takes time for results to improve, but Sony is aiming to transform this business into one that generates a high level of profit.