Sony Ericsson Strategy Update
Bert Nordberg, President
May 5, 2010
Q1 2010 highlights
Company returns to profitability in Q1 2010
ASP rises to Euro 134 as Xperia™ X10 and Vivaz™ start shipping
Improved cost structure generates better margins
Q1 2010 financial results
Number of units shipped (million)
Sales (EUR m.)
Gross margin (%)
Operating income (EUR m.)
Operating margin (%)
Restructuring charges (EUR m.)
Operating income excl. restructuring charges (EUR m.)
Operating margin excl. restructuring charges (%)
Income before taxes (IBT) (EUR m.)
IBT excl. restructuring charges (EUR m.)
Net income (EUR m.)
Average selling price (EUR)
2009
2009
2010
Q1
Q4
Q1
14.5
14.6
10.5
1,736
1,750
1,405
8%
23%
31%
-369
-181
20
-21%
-10%
1%
12
150
3
-357
-32
23
-21%
-2%
2%
-370
-190
18
-358
-40
21
-293
-167
21
120
120
134
Financial trend
Trend 2008 Q1 to 2010 Q1 by quarter – excl restructuring
Transformation update
Transformation programme 80% completed
Global workforce reduced by 3,150 from target of 4,000
Estimated restructuring charges to be close to Euro 400 million
Continue to build a leaner, flatter, more responsive organization
R&D sites with Platform & SW development
Profit
Sony Ericsson’s path
Value
players
o
o
o
o
Return to profitability
Build value market share
Focus on quality
Focus on smartphones
Volume
Annual market growth
1,120
1,190
1,095
980
780
620
500
407
387
Continued market uncertainty due to macro economic environment
*Million units
Coverage strategy
US
• Deliver relevant portfolio
• Prioritize operators
• Leverage partners for
development and distribution
Western Europe, CEEMEA, APAC, LAM
• Maintain current strong position in Europe
• Capture growth opportunities in many markets
• Invest to grow in APAC and LAM
China
• Capture market growth through
leveraging of global portfolio and
investment in TD-SCDMA
Japan
• Leverage global open OS portfolio
CONFIDENTIAL
Unique user
experiences
XperiaTM X10
CONFIDENTIAL
The power
of design
CONFIDENTIAL
2010 core portfolio
Create harmony
CONFIDENTIAL
User experience and Android platform
will be upgraded over time
Co-creation with Sony
SONY ONLINE SERVICES
Communication
Entertainment
Create market
with new
propositions
A/V Entertainment
Thank you
L