Fall Forum 2002

1. Presents Fall Forum 2002

2. Matt Soga Senior Vice President Strategic Planning Sony Electronics Business Communication in the Future

3. Outline • New Business Communication • Sony’s Approach IMTC Fall Forum – November 2002 – New York, NY, USA

4. New Business Communication

5. Industrial Production (USA) Ratio Scale. 1992 Output = 100 190 – 180 – 170 – 160 – 150 – 140 – 130 – 120 – 110 – 100 – ’90 IP Providers Appear ’91 WWW/HTML ’99 Internet Ventures Boom ’92 ISOC (Internet Society) ’93 TCP/IP Connection on PC ’93 Information Highway (Al Gore) ’95 Windows 95 boom, Introduction of Java by Sun Production 1988 1990 1992 1994 1996 1998 2000 2002 Source: Federal Reserve Bulletin Article, Mar 2002 IMTC Fall Forum – November 2002 – New York, NY, USA

6. Industrial Production (USA) • 1990’s Continue to Increase Industrial Production in Accordance With the Spread of Information Technology • 2000~2001 Production Slowed • Requiring “ Something New “ to • Revitalize the Industry IMTC Fall Forum – November 2002 – New York, NY, USA

7. Intelligence • “Intelligent Society” In the New Economy, Knowledge Is Not Just Another Resource Alongside the Traditional Factors of Production-labor, Capital, and Land – but the Only Meaningful Resource. ~ P.F. Drucker • “Intellectual Capital” Intelligence Creation Fuels Continuous Innovation, Which Leads to Competitive Advantages in the Organization • “Intelligence Creation” How to Increase the Intelligence Creation Is a Key to Succeed in the 21st Century • “System for the Intelligence Creation” System to Convert Information Into Knowledge Is a Key Factor for the Intelligence Creation, Along With Vision, Strategy, Human Capital and Organization ~ Ikujiro Nonaka (The Intelligence-creating Company) IMTC Fall Forum – November 2002 – New York, NY, USA

8. Intelligence • “Intelligent Society” In the New Economy, Knowledge Is Not Just Another Resource Alongside the Traditional Factors of Production-labor, Capital, and Land – but the Only Meaningful Resource. ~ P.F. Drucker • “Intellectual Capital” Intelligence Creation Fuels Continuous Innovation, Which Leads to Competitive Advantages in the Organization • “Intelligence Creation” How to Increase the Intelligence Creation Is a Key to Succeed in the 21st Century • “System for the Intelligence Creation” System to Convert Information Into Knowledge Is a Key Factor for the Intelligence Creation, Along With Vision, Strategy, Human Capital and Organization ~ Ikujiro Nonaka (The Intelligence-creating Company) IMTC Fall Forum – November 2002 – New York, NY, USA

9. Business Communication to Encourage the Intelligence Creation • Conversion Between Explicit Intelligence and Tacit Intelligence Creates Organizational Intelligence • Business Communication in the Broadband Environment Should Encourage This Movement IMTC Fall Forum – November 2002 – New York, NY, USA

10. Technical Factors for the Business Communication in the Broadband Environment • Higher Quality Audio and Video From IT to AVIT Communication • Intelligence From AVIT to AViT Communication • Person Ubiquitous Value Network IMTC Fall Forum – November 2002 – New York, NY, USA Source: Federal Reserve Bulletin Article, Mar 2002

11. Sony’s approach • Higher Quality Audio and Video From IT to AVIT Communication • Intelligence From AVIT to AViT Communication • Person Ubiquitous Value Network IMTC Fall Forum – November 2002 – New York, NY, USA Source: Federal Reserve Bulletin Article, Mar 2002

12. ------ ----- ------ ------ ------ ------ ------ ----- ------ ------ ------ ------ AVIT to AViT (Intelligence Technology) AV/iT AV Intelligence AV/IT High Quality Audio/Video IT IMTC Fall Forum – November 2002 – New York, NY, USA

13. ------ ----- ------ ------ ------ ------ AVIT to AViT (Intelligence Technology) ` Video (Intelligence Technology) Conclusion Advice Benefit Judgment Classification Analyzing Recognition Audio Face, Voice Finger Print, etc. Data DB Storage IMTC Fall Forum – November 2002 – New York, NY, USA

14. ------ ----- ------ ------ ------ ------ ------ ----- ------ ------ ------ ------ ------ ----- ------ ------ ------ ------ AVIT to AViT (Intelligence Technology) Result List of boss’s words x ` Combine the sources of video, audio and data Today 7 days ago x (Intelligence Technology) Conclusion Advice Benefit Judgment Classification Analyzing Recognition Recognize voce of specific person List up his sayings and analyze them Judge DB Storage IMTC Fall Forum – November 2002 – New York, NY, USA

15. Sony’s approach • Higher Quality Audio and Video From IT to AVIT Communication • Intelligence From AVIT to AViT Communication • Person Ubiquitous Value Network IMTC Fall Forum – November 2002 – New York, NY, USA Source: Federal Reserve Bulletin Article, Mar 2002

16. Ibuka's factory worked on an electric rice cooker in 1945

17. Sony’s Growth after 1995 AV→Digital AV→Game/IT/Telecom billions of yen Finance 7,000 ’01 Sony Ericsson Picture 6,000 Music ‘00 PS2 IT Telecom ’96 VAIO Game 40 ‘94 PS Device 30 TV 20 Audio 10 Video 0 1980 1985 1990 1995 2000 IMTC Fall Forum – November 2002 – New York, NY, USA

18. Access User ID MySonyID eLIO Digi. Rights Mngt Settlement Felica HarvestDrive Billing Ubiquitous “Value” Network Software Integrated Business Model Network Hardware IMTC Fall Forum – November 2002 – New York, NY, USA

19. Ubiquitous “Value” Network Vision 2001-2002 Transition Period 1980 1990 2000 2010 IMTC Fall Forum – November 2002 – New York, NY, USA

20. PC Centric to Non-PC/CE Centric IMTC Fall Forum – November 2002 – New York, NY, USA

21. Gateways Electronics Business: Growth Strategy Build Networked AV/IT Platform By Accelerating Product Connectivity IMTC Fall Forum – November 2002 – New York, NY, USA

22. Gateways Electronics Business: Growth Strategy Build Networked AV/IT Platform By Accelerating Product Connectivity Clients IMTC Fall Forum – November 2002 – New York, NY, USA

23. Ubiquitous Value Network Consumer Portal Mobile Phone Surveillance PC PDA IP-Telephone Video Conferencing Transmission Contents Creation Storage IMTC Fall Forum – November 2002 – New York, NY, USA

24. Higher Quality Audio and Video From IT to AVIT Communication • Intelligence From AVIT to AViT Communication • Person Ubiquitous Value Network Sony’s ApproachBusiness Communication in the future

25. Category n:n Communication n:1 Communication 1:n Communication Topology Client Contents Client Distributor Client Client Direction Real Time Yes No Yes No Yes No Services E-Mail Tele(Video) Conference Surveillance Contents Aggregator Storage Consolidation Contents Distribution Streaming Service Broadcasting Target Application e-conference e-surveillance IP-Casting Type of Communication IMTC Fall Forum – November 2002 – New York, NY, USA

26. n:n Communication - Ex. Videoconference - IMTC Fall Forum – November 2002 – New York, NY, USA

27. Offering Unique Endpoints Compact Set-top Box PC Centric Type Document Stand with IR Video Transmitter Current Products n:n Communication IMTC Fall Forum – November 2002 – New York, NY, USA

28. Sony’s Direction n:n Communication • Sony’s High Performance A/V • Data Collaboration with Ease of Use • FlexibleIntegration • Audio / Data / Video • Rich Video • Tuitional GUI • For Various Meeting Style • Ubiquitous • Intelligence IMTC Fall Forum – November 2002 – New York, NY, USA

29. n:1 Communication - Ex. Surveillance - IMTC Fall Forum – November 2002 – New York, NY, USA

30. Current Products n:1 Communication • IP Cameras • High Quality Video • High Frame Rate • High Performance Pan / Tilt / Zoom • Digital Recorders IMTC Fall Forum – November 2002 – New York, NY, USA

31. Sony’s Direction n:1 Communication • Super High Resolution • Intelligence • Image Recognition • Counting Customers/Passengers • Analysis of Customers Flow IMTC Fall Forum – November 2002 – New York, NY, USA

32. Intelligence - IP Monitoring HQ Internet Information Analysis I ae Central server IMTC Fall Forum – November 2002 – New York, NY, USA

33. 1:n Communication - Ex. Video Distribution - IMTC Fall Forum – November 2002 – New York, NY, USA

34. Network Player High Quality Video Seamless Playback Movie + Still Picture + Captioning Play List Creation Current Products 1:n Communication Network Player BZNP-100 Network “Digitize” FTP “Presentation” “File Transfer” “Storage” IMTC Fall Forum – November 2002 – New York, NY, USA

35. HD Streaming Intelligence Sony’s Direction 1:n Communication IMTC Fall Forum – November 2002 – New York, NY, USA

36. Total Solution

37. Combined Application n:n Communication n:1 Communication 1:n Communication IMTC Fall Forum – November 2002 – New York, NY, USA

38. Combined Application via Broadband • Combination of n:n, n:1, and 1:n Applications in the Broadband Environment Will Create New Business Communication Style • Example • Multi-site Video Conference, Monitoring the Real-time View in the Shop Shot by a Monitoring Camera at a Remote Sight, for Business Meeting to Decide Marketing Action Plan, Etc. • n:n and n:1 IMTC Fall Forum – November 2002 – New York, NY, USA

39. n:n Conference New Communication Business Areas 1:n Distribution n:1 Surveillance IMTC Fall Forum – November 2002 – New York, NY, USA

40. Business Communication in Future Business communication with AV/iT network Distance meeting Contents creation Contents distribution SOHO Monitoring Broadband Network [SOHO] IMTC Fall Forum – November 2002 – New York, NY, USA