On February 2, we announced the strengthening of the Sony Group's management structure. Today I would like to look back at some of the experiences I have shared with Hiroki Totoki, who will assume the role of President, COO and CFO on April 1.

■ Early years IR and Finance
Totoki-san has been an impactful presence for me at many points throughout my career. In 1990, my eighth year in Sony, I was assigned to work in Investor Relations in New York, before returning to Japan in 1994. From 1997, Totoki-san and I worked together in the Finance Division at Sony headquarters. An initiative called the "2010 Project" was launched under Nobuyuki Idei, who was then Sony President, to consider the Sony of the next century. I was part of a three-person team with Totoki-san and Natsuko Takei, now Executive Vice President, and a member of the Legal Department at that time, and together we proposed a theory of the "federated model." Based on the idea of businesses collaborating while retaining their independence, I believe that many parallels can be drawn between the federated model that we envisioned, and the structure of the Sony Group as it is today. As I recall, Takei-san was the brains of the operation, while Totoki-san, an expert in PowerPoint, put together our thoughts in the materials, and I delivered the presentation.

■ Taking on challenges on the business side
In 2000, I transferred to So-net (then Sony Communication Network), at my own request. This was a major turning point in my career. At the time, I was General Manager of the CEO Strategy Office under Idei-san, but I started wanting to work more on the business side. Totoki-san was driving forward with preparations for the launch of Sony Bank, and I feel that his image instilled me with the courage, at age 40, to jump into the business side, where I had no prior experience. While there were differences in our challenges, with Totoki-san launching a new entity while I was entering a preexisting business, they were also similar in both being centered around the internet.

I was appointed President of So-net in 2005. One pleasant surprise at that time was that Totoki-san, who had now completed the launch of Sony Bank, said to me, "If you are going to be the President, I would be happy to help you." Totoki-san joined So-net in June of that year as Corporate Executive Officer and Senior Managing Director. So-net was listed on the Mothers market of the Tokyo Stock Exchange the following December, and with the arrival of Totoki-san our preparations for listing proceeded smoothly.

So-net was listed on the Mothers market of the Tokyo Stock Exchange in December, 2005
So-net was listed on the first section of the Tokyo Stock Exchange in January, 2008

■ Management of So-net
At So-net, my management vision was that the 21st century would be the era of entertainment, driven by the internet. We wanted to be a company with a strong presence in this field. Based on this vision, in addition to our ISP business, a DTC service directly connecting us with users, we embarked on numerous challenges in the form of entertainment businesses that brought us closer to people's desires. Examples include our operation of a Korean drama channel, development and launch of a game featuring PostPet characters, acquisition of an online game company, and investment in an animation company.

During my time at So-net, we engaged in various entertainment businesses, alongside our ISP telecommunications business, and looking back I feel there are parallels that can be drawn with the current Sony Group. Specifically, the challenge of getting closer to users' desires, as well as the process of "Exploitation and Exploration" that involves strengthening our existing business, while at the same time cultivating new areas to lay the foundations for the future. From those days, Totoki-san was always able to come up with new ideas in various situations, and we forged ahead with our management of So-net together. I learnt a great deal and gained much insight from Totoki-san, with his strategic perspectives encompassing the broader external environment.

At a cable television show in Tokyo Big Sight in 2009	So-net Earnings Announcement in 2010

At the BCWW (Broadcast Worldwide) content market in Korea in August, 2011	At the Seoul Drama Awards in August, 2012

■ Words of advice from Totoki-san
In August 2012, So-net became a wholly owned subsidiary of Sony through a tender offer. At the time, in my position at So-net I felt I independent from Sony, and was strongly opposed to Sony's proposal to make So-net a wholly owned subsidiary. In the course of negotiations, the acquisition price was raised to 567,500 yen per share, a premium of more than 70%. Totoki-san, who was Deputy President at the time, said to me, "We have received a proposal at a stock price that we have never achieved since going public. There is no way to explain to So-net's shareholders how we can resist this offer," and this convinced me to relent.

■ Return to Sony
In the fall of 2013, more than a year had passed since So-net had become a wholly owned subsidiary of Sony. Kazuo Hirai, President of Sony at the time, asked me to return to Sony to help with its transformation, and in December of that year I returned to the company after being away for 13 and a half years. At Hirai-san's request, Totoki-san also returned to Sony at the same time and was appointed Corporate Executive in charge of Corporate Planning. Later, Totoki-san would lead the revitalization of our mobile business as CEO of Sony Mobile. During the five years since I became CEO in April 2018, Totoki-san has been a driving force in the implementation of growth strategies for the Group, especially from a financial perspective, in his role as CFO. I highlighted his many achievements at the most recent Sony Group Quarterly Meeting. Based on this record of achievements, I proposed his appointment as President, COO and CFO to Shuzo Sumi, Chairman of the Board of Directors, in July of last year. Subsequently, after multiple deliberations by the Nominating Committee and the Board of Directors, the proposal was approved.

On February 2 we held a briefing for the media, investors and analysts regarding the changes to the Sony Group's management structure

Totoki-san has a remarkable aspiration for achieving growth. And he firmly believes that the growth of Sony Group as a company will ultimately lead to the growth of each individual employee. I completely agree with him on this point, but Totoki-san and I do not necessarily share the same opinion all of the time; in fact, we often disagree. It is important to have a diversity of opinions on the management team. I will continue to engage in discussions with Totoki-san and other members of the management team to move the Sony Group towards growth. I thank you for your understanding and support of the new structure.

In addition, you can read more about the anecdotes I have shared today in the transcript of the speech I delivered at the Securities Analysts Association of Japan Annual Conference in October, 2021.

As always, I look forward to receiving your feedback.