Investor Relations Meeting

OCTOBER 2014

[to be updated for 1H actuals; estimates used here]

Sony Music Segment - Revenue Breakdown

Revenues By Business Line
1H Revenue
1H FYE14 Actual

(USD in Millions)

$2,019

$1,971

1H FYE15 Actual

Visual Media
& Platform
Music
Publishing

Visual Media
& Platform

15%

Music
Publishing

12%

16%
14%
70%

73%
Recorded
Music

FYE14

FYE15

Recorded
Music

1HFYE14

1HFYE15

% G/D

Recorded Music

$1,492

$1,379

-8%

Music Publishing

233

283

22%

Visual Media & Platform

294

309

5%

$2,019

$1,971

-2%

Total Music Segment

2

[to be updated for 1H actuals; estimates used here]

Recorded Music Business

Revenues By Type
1H Revenue
(USD in Millions)

$1,492

1H FYE14 Actual

1H FYE15 Actual

$1,379
Other

Other
Physical

18%

16%

35%

47%

52%

Digital

FYE14

FYE15

32%

Digital

1HFYE14

Physical

1HFYE15

% G/D

$516

$441

-14%

Digital

707

713

1%

Other

269

224

-17%

$1,492

$1,379

-8%

Total Recorded Music Business

3

Physical

Current Fiscal Year Bestsellers

Michael Jackson

Miranda Lambert

Chris Brown

Adele

One Direction

Garth Brooks

AC/DC

The Script

Kenny Chesney

MAGIC!

Usher

Carrie Underwood

Pitbull

Foo Fighters

Sia

UVERworld

Jack White

Calvin Harris

Alicia Keys

J. Cole

Meghan Trainor

Jason Aldean

Train

Barbra Streisand

Olly Murs

A$AP Rocky

Christina Aguilera

Pink Floyd

Current Major Releases

Upcoming Releases
4

Recent New and Developing Artist Success

MAGIC!

Meghan Trainor

Ella Henderson

Pharrell Williams

Calvin Harris

A Great Big World

Kid Ink

Sia

Rita Ora

Hozier

MKTO

Pentatonix

Fifth Harmony

Kongos

Bobby Shmurda

Future

Tyler Farr

George Ezra

Collabro

Juicy J

Becky G

Tinashe

Bleachers

G-Eazy

Well-Positioned to Capitalize on Market Trends

2013 ACTUAL

2017 FORECAST
Streaming/
Subscriptions

Streaming/
Subscriptions

22%

18%

Downloads

5%

Digital Radio

65%
Video

7%

13%

4%

Video

60%
6%

Digital
Radio
Ringtones/
Other

Downloads

Paid Subscription Has Best ARPU ~1.5x of Downloads

Free Ad-Supported Services Require Up to 7x Number of Streams
of Paid Subscriptions to Generate Same Level of Revenues
6

Source: IFPI CY2013; includes Japan. Forecast based on internal projections.

Commitment to Financial Discipline

Streamlined worldwide Recorded Music operations

Fully integrating EMI Music Publishing into Sony / ATV

Ongoing focus on cost efficiencies as the industry evolves

Investor Relations Meeting

OCTOBER 2014