Sony Ericsson Final

SONY ERICSSON

HISTORY • The foundation of Sony dates back to 1946. On May 7, Masaru Ibuka together with Akio Morita set the roots of Sony Corporation. • At first the name of the company was "Tokyo Telecommunications Engineering Corporation". • In 1958 the company changed its name to "Sony” .

ABOUT SONY • "Sony" comes from a combination of two words: "SONUS", which in Latin means "sound" and "SONNY", which denotes a small size. • The company first started producing recording tapes in 1950 which followed with the production of television. • Sony shares listed in New York Stock Exchange in 1970.

ABOUT ERICSSON • On April 1, 1876, Lars Magnus Ericsson and Carl Johan Andersson began the company “L. M. Ericsson & Co Mekanisk Werkstad”. • In 1876 this young man started a mechanical workshop in Stockholm, Sweden • Business grew fast. This full scale telephone station was made for South Africa, one of the company's major markets in 1896. • At the start of the 1990’s, Ericsson became a leader in the area of mobile telephony.

SONY ERICSSON • Sony Ericsson Mobile Communications, a joint venture between Sony Corp and Ericsson, will begin operations on October 2001 with a capitalization of US$250 million each. • It is a 50:50 joint venture between Ericsson AB and Sony Corporation. • The collaboration between Ericsson and Sony started with the aim to provide the best mobile solutions, through combining Ericsson’s strong position within mobile technologies and Sony’s expertise in

• Sony ericsson presently hold the 4th position in mobile industry. • The new venture employed 1000 employees from Sony and 2500 from Ericsson. • Some of their major rivals are Nokia , Motorola, Samsung. • Its Bluetooth connection was first one of its kind allowing wireless connections to headset and PC synchronization.

LOGO SONY LOGO

ERICSSON LOGO

COMBINED LOGO

Current market Position • Sony Ericsson sold 42.3 million mobile phone units in 2004, and is likely to increase this number in 2005. • Has a wide range of mobile phones on the market, but is known for more expensive phones on the higher end of the market.

Financial Position • • • • • • •

Revenue - SEK 208,930 million (2008) Operating income ▲ SEK 16,252 million (2008) Profit ▲ SEK 11,273 million (2008) Total assets - SEK 285.7 billion (2008) Total equity - SEK 142.1 billion (2008) Employees - 78,750 (2008) Subsidiaries Sony Ericsson (50%) ST-Ericsson(50%)

CONT’D… • Sales for the quarter were Euro 1,736 million, a decrease of 36% from a year ago. • Sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels. • Gross margin declined both year-on-year and sequentially. • Income before taxes for the quarter excluding restructuring charges was a loss of Euro 358 million on march 2009.

CONT’D… • The company’s initial cost saving program targeting annual operating expense reductions of Euro 300 million by the end of the first half of 2009, including a workforce reduction of 2,000 headcount. • As of March 31, 2009, Sony Ericsson retained a strong net cash position of Euro 1.1 billion. • Market share in the first quarter decreased and is now estimated to be around 6%, down two percentage points sequentially.

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