From:

Sent:
To:

Hill, Justin (USA)

Monday, October 27, 2014 7:09:23 AM
Puzio, Joe; Vorn, Monica, Sony Music; Coppola, Carmine, Sony Music; Kelleher, Kevin, Sony Music; Joo, Sonya; Glotzer, Lauren;
Hendler, David; Kober, Steve; Seligman, Nicole; Lynton, Michael
Cc:
Feeney, Robert; Shinya, Aritomo
Subject: 11/18 Entertainment Investor Briefing Targets

All,
Below please find the target ranges for Pictures and Music that Yoshida-san would like for us to use at the Entertainment Investor Briefing on
November 18th.
Pictures:
FYE18 Revenue: $10 to $11 billion
FYE18 Operating Income: 7% to 8%
FYE18 OIBDA Margin: 9% to 10%
Note: Yoshida-san is aware that the internal FYE18 MRP target for revenue ($11.3 billion) is higher than the $10 to $11 billion range, and he
said that he still expects Pictures to achieve that target, but he approved my suggestion that we should lower the range so as to create a more
easily achievable target for operating income these ranges allow for $700 million to $880 million in OP, with a midpoint of $788 million. He
did not want to include 6% in the range because he felt that that would subject us to criticism for not striving for a margin close to the target
we set at last years investor day. He asked that we explain at the November 18th event the reasons why we will not achieve the 7.5% OPM
target set for this fiscal year as well as how profit from the segment will increase over the MRP.
Music:
FYE18 Revenue: $4.8 to 5.2 billion
FYE18 Operating Income: 10.5% to 11.5%
FYE18 OIBDA Margin: 13.5% to 14.5%
Note: These numbers are based on the MRP from SMEJ converted into dollars at a rate of 110 yen to the dollar. The US dollar MRP for the
music segment is $5.06 billion and $554 million. This is right in the middle of the ranges mentioned above. The above ranges also fit with our
qualitative guidance as to CAGRs presented at the investor day last year.
Please let me know if you have any questions or concerns.
Best regards,
Justin