We held our Corporate Strategy Meeting for this fiscal year earlier today.

One of the main topics for today was the announcement of a new corporate architecture to enable the further evolution of the Sony Group. Specifically, we will transition the Group structure to the below by April 1 next year.

Given the importance of this change, I want to share some details with all of you, focusing primarily on the following:

1. Expectations for the new "Sony Corporation"


2. Strengthening the financial services business as a 100% Sony Group company


3. The role of Group headquarters

1. Expectations for the new "Sony Corporation"

On April 1st of next year, the treasured company name "Sony Corporation" that we have used since 1958 will be transferred to the current Sony Electronics Corporation.

Under the strong leadership of Ishizuka-san, I ask that everyone involved in our electronics businesses continue to deliver value to creators and users. We must do so through our reality technologies that deliver the ultimate in sound and video; by leveraging our real-time technologies in areas such as networks and 5G, to deliver the value of time; through the delivery of our branded hardware products that "connects people to people;" and the further evolution of our businesses that "support people" by contributing to people's health through, for example, our medical business.

■ Pursuing the pinnacle of remote

I understand that early studies on this topic are already under way, but with social distancing as the "new daily normal", I will be looking to everyone at the new Sony Corporation to consider ways we can use the Reality and Real-time technologies in which we have excelled until now, in Remote instances, and to strive for "the pinnacle of remote" by aligning these "3Rs." Remote viewing of live concerts is one such example.

Throughout our history, Sony's brand has been built on technology and solutions for delivering kando content remotely, such as TV (="Tele"-vision) sets, and packaged media formats such as CD and Blu-ray. It could be said that the concept of "remote" is the very essence of our branded hardware business that "connects people to people," and creators with users, and is something that we have been engaged in for many years.

Another recent development that has been accelerated further by the spread of the coronavirus is the shift to online/remote consumption. Since the move towards online consumption is a megatrend, it is imperative that we adapt to these changes, and enhance our competitiveness.

2. Strengthening the financial services business as a 100% Sony Group company

The next important action we are taking is to make Sony Financial Holdings a 100% Sony Group company. This is being done with the aim of further strengthening the management of our financial services business, one of our core businesses alongside electronics and entertainment.

Providing monetary assurance and convenience to our customers, the financial services business is the main protagonist of our businesses that "support people." Sony Life, that laid the foundations for this business, was born from a twenty-year long-term vision of our founder Akio Morita, an approach that represents Sony's management philosophy of long-term perspective.

Our financial services business centered around Sony Life has also provided an element of "assurance" to the Sony brand, and has greatly contributed to extending the scope of our brand appeal.

And Sony Life's Lifeplanner system was a starting point for Sony's DTC business, while Sony Assurance and Sony Bank have been pioneers in network DTC services.

As a result, Sony Life, Sony Assurance, and Sony Bank continue to be rated extremely highly in externally conducted customer satisfaction surveys.

As is abundantly clear from the vital profit contribution financial services made during a very challenging six-year period following the Lehman shock, it is a business that is also incredibly important to Sony from a financial perspective.

■ Objectives for making SFH a 100% Sony Group company

While our financial services segment and its businesses of "supporting people" assisted Sony during its difficult times, I believe there are still opportunities for evolution across these businesses including Sony Life, Sony Assurance and Sony Bank.

The many opportunities for development at Sony Financial Holdings include adding new services such as private banking for high-net-worth individuals by leveraging Sony Life's core value - its "Lifeplanner" sales employees' skills -, strengthening product strategies and diversifying the asset portfolio.

At present, the environment in which face-to-face sales are not feasible is particularly difficult for our Lifeplanners at Sony Life. However, I believe that the anxiety brought about by the coronavirus crisis will increase people's need for financial assurance, and will present long-term growth opportunities for the life insurance business.

I also look forward to further synergies between our financial services business and Sony technology. Some initiatives are already underway, with examples including marketing analysis using Sony CSL's CALC technology and the use of AI in Sony Assurance's Good Drive automobile insurance. Going forward, I expect even broader cooperation generating new value, such as the example I raised in a previous Quarterly Meeting highlighting the collaboration with Sony Payment Services, a subsidiary of Sony Bank.

Effective June 23, Masashi Oka will be newly appointed as CEO of Sony Financial Holdings. Oka-san has expertise in three areas that are vital to the financial services business: finance, technology, and customer interaction, acquired throughout his career including leadership of MUFG Union Bank, N.A. While I sincerely appreciate Ishii-san's contribution in leading SFH to date, I am very excited to see the evolution that our financial services business will undergo based on Oka-san's leadership.

3. The role of Group headquarters

As I mentioned above, the Sony Group encompasses a wide variety of business, including the electronics and financial services businesses.

"People" are at the core of the Sony Group's business portfolio

• Content and DTC businesses that "move people's hearts"


• Branded hardware businesses and imaging and sensing businesses that "connect people to people"


• Automotive sensing, medical, and financial services businesses with potential for long-term growth that "support people"

In order for all of these businesses to evolve in line with the times and surrounding environment, it is necessary for the Sony Group headquarters itself, which brings together this diverse business portfolio, to evolve accordingly.

From this perspective, and from the perspective of enhancing the value of the entire Sony Group over the long-term based on Sony's Purpose & Values, "Sony Group Corporation" will be inaugurated on April 1st of next year with the following three main missions:

• Business portfolio management and strategic capital allocation


• Value creation through group synergies and business incubation


• Investment in the talent and technology that form the foundations of innovation

The role of the Group headquarters is to lead the overall Group and support each individual business in reenvisioning business models, generating synergies, and through other strategic measures. Sustainability, risk management including geopolitical risks, and digital transformation are also important areas of responsibility for the Group headquarters.

Top management at our core businesses will also be expected to perform key roles in Sony Group Corporation. We will take on board input from each business as we construct our blueprint for the new Group headquarters, and incorporate structures that enable the systematic flow of talent between each business and the Group headquarters.

Please share any feedback, requests or expectations you have towards the new Group headquarters.

While we unfortunately had to cancel this year's Management Conference that is usually held at this time of year, I believe that during these difficult circumstances it is ever more important for us to maintain close communication internally.

With that in mind, this year we will be sharing video messages to employees from top management at Sony headquarters and each of our Group businesses. I will be starting preparations for my own video message immediately after releasing this message, so please expect to be able to access it on Inter Sony.

As I wrote in a previous post, as self-isolation measures continue around the globe, the social significance of continuing to deliver entertainment content such as music, pictures, and games, and the importance of the role our hardware plays in connecting creators to users is increasing to an unprecedented level.

The fact that we are able to continue delivering kando in this way is thanks to the contribution of everyone around the world, and your efforts to continue your outstanding work from home, despite the ongoing challenges and disruptions to daily life. I extend my sincere gratitude to you all. And of course, please continue to keep your own health and that of your families as your foremost priority.