Thank you very much for taking time out of your busy schedule to join us today. We will now begin Sony Group Corporation Corporate Strategy Meeting 2024. My name is Ishii from Corporate Communications, the moderator of this event. Today's event will last about 90 minutes, including speech and Q&A session. First of all, Yoshida, Chairman and CEO, will make a speech. Yoshida-san, please come up on stage. Thank you all for gathering here today. I'd like to talk about the direction of our management, and then President Totoki will talk about our mid- to long-term initiatives. Sony Group's purpose is to fill the world with emotion through the power of creativity and technology. In other words, our social significance is to create content and deliver it to the world together with our partners. The key word of our purpose is content. In recent years, we have been focusing on our entertainment businesses that moves people's hearts, such as games, music, and pictures. Currently, these three entertainment businesses account for approximately 60% of the group's consolidated sales. We also reorganized our group architecture in 2021. We believe that establishing a system in which each business is independent and equally connected has led to the acceleration of group synergies. Additionally, we have begun preparations for a partial spin-off of our financial services business, which is an important business for Sony. The financial services business aims to further evolve through independence with this spin-off. We also would like to support the evolution of the financial services business through the utilization of the Sony brand and strengthening collaboration between each business. In addition to focusing on entertainment, another management direction is the Creation Shift. Sony has three main business layers: content, which is directly connected to content, products and services that create content, and semiconductors, seamless image sensors that support creation. We have shifted our focus to the creation side in each of these three business layers. The starting point for the shift to creation was the acquisition of EMI Music Publishing in 2018. Since then, we have invested approximately JPY 1.5 trillion over the past six years to strengthen our content creation. The acquisition of Crunchyroll in 2021 was an investment in a distribution service that delivers content. Crunchyroll aims to contribute to the anime creator community by spreading Japanese anime to the world. In the products and services layer, we're also working hard to create entertainment together with creators. Currently, profits from creative-related businesses account for more than 80% of the operating income in this layer. In the semiconductor layer, CMOS image sensors support creation by many people, from movie creators to smartphone users across the globe. We have implemented capital expenditures amounting to approximately JPY 1.5 trillion in CMOS image sensors over the past six years. These CMOS image sensors also contribute to the safety of mobility, which we position as a new entertainment space. Creativity resides in people... and people live in the present. From here, I would like to touch on two creation technologies that we are focusing on using real time as a keyword. One is the seamless image sensor technology that I just mentioned, and the other is the game engine, which is a real-time computing technology. ... In recent years, Sony has been expanding its product lineup for creators. CMOS image sensors within these products help creators capture the content moment. The Alpha 9 III, a mirrorless interchangeable lens camera released this year, equipped with a full-size image sensor that use a global shutter system, is one such example. This camera was used by creators at the World Athletics Indoor Championships in Glasgow, United Kingdom, in March of this year. By reading out all pixels simultaneously, even fast-moving subjects can be captured without distortion. Furthermore, flash sync shooting is possible at a shutter speed of 1/80,000th of a second, making Alpha 9 III a true embodiment of the ultimate real-time technology. The 5G-compatible data transmitter announced this year enables real-time transmission from filming locations, contributing to prompt news coverage and editing. In this way, Sony's real-time technology is also contributing to the delivery of sports content to the world. In film production, the use of our digital cinema camera, VENICE, is expanding. Recently, it has been used in Godzilla Minus One and many other productions. In addition to filmmaking, it was used in the halftime show of the Super Bowl in February of this year. We believe that it is of great significance for creators to capture the real world as it is. As it is, means that the photograph was taken by a person, or that a subject exists in reality. CMOS image sensors are also used to verify such authenticity. In addition to CMOS image sensors, game engines play an important role in the creative field. Games are computer graphics that are generated in real time in response to users' actions. The game engine, which is at the core of real time computer graphics, has evolved in recent years into a technology for creating video content. The Sony Group has also invested in Epic Games and is utilizing their Unreal Engine in various creation processes. Sony Pictures Entertainment's Torchlight makes it possible to simulate filming on set by using a game engine. The facility is being used by filmmakers to bring their creative vision to life, including for Venom, Kraven the Hunter, and Karate Kid, which are scheduled for release. We hope to continue contributing to a wider range of creative communities with Torchlight. Virtual production utilizes the real time technology of game engines linked with a camera to generate background images. This filming method allows both the director of photography and actors to check the footage on the spot. We believe that both Torchlight and virtual production are solutions that increase the value of creators' time. Game engines are also used to provide creators with an immersive creation experience. This system enables creators to create and edit while virtually overlaying 3D content into the physical space. In this way, we are expanding the creative space for creators. Additionally, in the live entertainment of sports, we are working to expand the fan base by tracking the movements of real-life athletes and converting these movements into 3D animation using a game engine. Currently, this technology is being used for games of the NFL, professional football league in the United States, and the NHL, professional ice hockey league in North America. So far, I spoke about real-time creation using CMOS image sensors that capture real life and real-time creation using game engines. Game engines are a real-time computing technology. ... game engine is real-time computing technologies. AI, which has recently evolved significantly, has been used for creation. Computing technologies. AI can also be considered a computing technology. AI is not a substitute for human creativity. We position it as a technology that supports creativity. Creativity resides in people. We will continue to contribute to people's creativity through technology. Creativity develops communities. We are also working to create spaces where creator communities can gather and interact, as well as to nurture the next generation of creators, and we intend to continue to promote activities that contribute to communities as a group. Over the past six years, the Sony Group has been working to strengthen creation efforts. We also would like to continue to value the real-time concept of the moment, which I mentioned today. In addition to real-time technology, the Sony Group has another strength. It is the diversity of its people and business. From here, Totoki will talk about our mid- to long-term efforts to enhance our diversity. Hello, I'm Totoki. In our recent earnings announcement, we presented our fifth mid-range plan, covering the next three fiscal years, starting from FY ending March 31, 2025. The theme of this mid-range plan is Beyond the Boundaries: Maximize Synergies across the Group. The IP that we have created and acquired until now continues to increase in value as opportunities for its use in areas such as distribution platforms and various facilities expand, and we intend to maintain our focus on maximizing the value of our IP, IP going forward. Today, I would like to explain Sony's vision for the future beyond our current mid-range plan and the initiatives we are currently implementing to realize this vision. I would like to specifically talk about the three points you see here. First of all, I would like to talk about our Creative Entertainment Vision. Based around our purpose as a pillar, I wanted to plot out concrete, visualizable goals together with a more specific time frame. So for more than two years, I engaged in discussions with our diverse colleagues across the Sony Group, focusing mainly on the generation that will lead Sony into the future. This is a visual representation of the Sony Group's long-term vision, projecting social changes and technological evolution over the next 10 years or so. There are three phases to this long-term vision. The first is Creativity Unleashed. We plan to harness technology to unleash the creativity of creators around the world, transcending the physical, virtual, and time dimensions. The second is Boundaries Transcended. We intend to connect diverse people and values across boundaries to foster vibrant communities. The third is Narratives Everywhere. Together with creators, we aim to create exciting experiences, rich in narrative, that go beyond imagination, spreading them as new technologies for content around the world. The key message we are conveying through this long-term vision is our intention to Create Infinite Realities. Together with creators, we aim to seamlessly connect multilayered worlds at the point where the physical and the virtual overlap, developing limitless content through the power of creativity and technology. Please watch a video portraying the future we envisage in this long-term vision. How far will imagination carry us? Farther than we can see. The limits, there aren't any. Not in time, not in space, not here. We're free. Free as anything. Free to dream and create. Colors you can almost touch. Lights that dance in the dark. Sounds you can feel in your bones. It's like magic, real magic. It gets under your skin, stirs something deep inside, and just like that, new stories start to spill out... Those stories, that fire inside us, it's catching. It's gonna leap, bound over the tangible, the digital, into realms untrodden, unimagined, beyond the edges of our little worlds and into places no one's dreamed of yet. We're linking arms with every story out there, making them deeper, richer, something you can feel. They call it content. That feeling, it's that drum in your chest. Because these dreams, they're not just ours. We're passing them on, handing them down toward a future that throngs with heart. Together, into the endless possibilities of content. Create infinite realities. We intend to move forward towards the destination laid out in our Creative Entertainment Vision, together with everyone who shares our dreams and hopes for the future. Next, I will outline the initiatives that are advancing us towards the direction outlined in this long-term vision. Sony is already creating compelling IP in a variety of entertainment categories, and nurtures this IP by inspiring and energizing communities together with fans, creators, and partners. Further more, through our IP 360 initiative, which seeks to extend IP beyond boundaries, we're engaged in measures to deepen engagement with fans and expand audiences in order to maximize the value of our IP. I will now highlight the current status in each category. First, we are working to promote IP creation in Japanese anime, which is one of our focus areas. Aniplex produces many high-quality works every year that are beloved by anime fans around the world. Additionally, Crunchyroll, which has over 13 million paid subscribers, delivers anime created in Japan globally. However, with significant growth in anime's popularity, the demand for new productions is increasing, and we are working to improve the production environment, efficiency, and quality of our output. A-1 Pictures and CloverWorks, production studios and subsidiaries of Aniplex, are central to these efforts, and are collaborating with engineers at Sony Music in Japan and across the Sony Group. AnimeCanvas is new animation production software currently under development that we aim to introduce on a trial basis within the current fiscal year, and hope to be able to offer to other studios in the future. Furthermore, we are now exploring the launch of a project to establish an academy with the aim of nurturing anime creators in global markets. Aniplex and Crunchyroll are core to this initiative with collaboration from across the industry. One example of how we are fostering anime IP and culture together with fans is the Crunchyroll Anime Awards. This year marks the eighth time the event has been held, with a record number of over 34 million votes cast. With it also being very positively received by the anime industry as a whole, I'm confident that it will continue to grow in the future. Next, I'd like to talk about the efforts to promote IP creation in pictures. As Yoshida explained, Epic Games' Unreal Engine has increasingly been adopted to enhance the production efficiency and quality of film and TV content due to its real-time rendering capabilities. Examples of its use include virtual production and advanced visualization. To accelerate the adoption of such solutions, we plan to leverage the know-how cultivated at Pixomondo, a group company of Sony Pictures Entertainment, that enhance and expand the operation of Unreal Engine to nurture visual creators who can utilize these technologies, working in collaboration with Epic Games. One of the ways we are developing IP in our game business is through television and film adaptations. Since establishing PlayStation Productions in 2019, we have been engaging in adapting game IP into film and television content, enabling the IP to become a part of pop culture loved by an even wider audience, thereby creating a positive cycle that enhances its value. Going forward, we are developing titles such as Horizon and God of War. Furthermore, we are now engaged in expanding our game IP into the area of location-based entertainment. In music, we are taking a unique approach to creating new IP. Born from a project to turn novels into music, YOASOBI momentum shows no signs of slowing. Their song, Idol, became the first Japanese song to top the U.S. Billboard Global Chart, and continues to enthuse fans around the world. Additionally, we intend to cultivate fandom artists such as Nogizaka46 and Stray Kids, whose passionate fans create new cultures, taking a global perspective and expanding fan communities. In terms of IP 360 initiatives in music, our production of biographical works focusing on artists is a prominent example. For example, through the documentary, Lil Nas X: Long Live Montero, which chronicles Grammy Award-winning rapper, singer, and songwriter Lil Nas X's first world tour, we're delivering IP to fans in ways that go beyond the boundaries of music. ...We are also embarking on new challenges in this area, such as the concurrent production of four biographical films that look back on the history of The Beatles from the perspective of each member. We're also accelerating our efforts to elevate community engagement in the area of sports, using Hawk-Eye Innovations tracking system to capture data such as the players' in-game skeletal information and converting it into 3D animation in real time. Using Beyond Sports technology, we're providing new forms of entertainment content. I have high expectations that these initiatives will continue, contribute to the development of sports by increasing engagement, particularly among younger audiences. Until now, I have introduced our current activities to maximize IP value in each category. In terms of our cross-category initiatives, on the other hand, we are focusing on areas such as LBE and merchandising, where we can provide opportunities for fans to engage in physical interaction with our IP content, and the mobility space, where we anticipate further opportunities. LBE is a large market where we expect to see continued growth, including in developed countries. At Sony, we are already deploying our IP in locations around the world, and aim to grow this business by combining such IP with our gaming, sensing, video, and audio technology to provide immersive experiences that deliver the ultimate content. Merchandising not only increases fans' emotional attachment to an IP, but can also contribute to acquiring new fans. We believe there is further potential for us to strengthen our presence in this area, and we plan to accelerate these efforts going forward, including group-wide collaboration. In the mobility space, we are utilizing entertainment content provided by understanding the vehicle's occupants and surrounding environment through sensing data and vehicle data together with audio technology to transform the vehicle interior into a personalized entertainment space, enhancing the value of mobility experience. This is somewhere we intend to continue to collaborate with companies across the industry, including Sony Honda Mobility. So far, I have focused on measures to grow our own IP, but just as we have delivered IP from our partner companies to the world through brands such as PlayStation, our IP 360 initiative is not restricted to Sony alone. Recently, we have been proactively engaged in efforts to expand IP beyond our own library. This is underlined by initiatives including mobile RPG Street Fighter: Duel, published by Crunchyroll Games, and the use of our high-quality scan solutions, which enables real objects to be converted into high-quality 3D models to scan plastic Gundam models and display them in the Gundam Metaverse. We also intend to expand our initiatives to maximize the value of IP globally by supporting creators with diverse cultural backgrounds and strong regional appeal. For example, the India Hero Project, launched by Sony Interactive Entertainment last year, is an initiative to unearth and support promising game developers in India and help them bring compelling gaming experiences to the world. This incubator program has selected five game titles as its initial projects. Additionally, the Sony Innovation Fund Africa, which we established last year in collaboration with the International Finance Corporation, is a corporate venture capital fund that supports startup companies with the aim of developing entertainment business in Africa. Through such activities, we aim to be a brand that is trusted by creators and IP holders, transcending the boundaries of companies, countries, and regions. The key technologies that enable creators to engage in these initiatives to maximize the value of their IP in a high quality and efficient manner, including sensing and capturing, as well as real-time 3D processing, AI technology, and machine learning. I will now share some specific examples of the strengths Sony possesses in these areas. In terms of sensing and capturing, we can point to our volumetric capture studio. Multiple cameras cover the studio from 360 degree angles, capturing images of moving people and objects and converting them into 3D data. These images can be stored as high-quality 3D assets, including motion data, and used for various content production. This technology is being used for complex action scenes in movies and music videos due to the ease of photorealistic reproduction and production flexibility it provides. Going forward, we plan to efficiently utilize the 3D assets accumulated by each of our companies cross-functionally through the group as a whole and explore potential external sales. With regards to real-time 3D processing, we are accelerating our collaboration with Epic Games centered around Unreal Engine and are also conducting exploratory activities. For example, the 3D CG used in the background of a music video from Iniko of Columbia Records, which is shot with virtual production, was repurposed to produce a game that takes place in the same world that was created. We also re-released a proof of concept CG short film using Unreal Engine, where an actor performed as a Stay Puft Marshmallow Man in real time within a 3D city environment using motion capture. One example of how we are using machine learning-related technology is Marvel's Spider-Man 2, which was released last year. Through the application of voice recognition software originally specialized for gaming, for certain languages, we were able to automatically synchronize the subtitles with each character's dialogue, significantly shortening the subtitling process. We are also conducting research and development in India using AI technology and machine learning, a multilingual society, into ways we can shorten the dubbing and translation process so that video content can reach more fans more quickly.... Building on these initiatives, in the future, we aim to develop solutions that enable our IPs to be delivered rapidly and at a low cost to a broader range of fans. In order to efficiently maximize the value of IP, we believe it is also important to develop a shared group network to support these efforts. In addition to supporting a wide range of payment methods and currencies, PlayStation Network auto-scales to accommodate significantly changing user traffic in a short period of time, enabling it to realize both high quality operation and cost optimization. PlayStation Network's data processing volumes have reached a level that places it among the top ten consumer internet services worldwide, while it is simultaneously achieving record high operating rates. As such, it is established as a robust network service. By extending core functions based on this network infrastructure, such as accounts, payments, data infrastructure, and security to the growing Crunchyroll service, we plan to develop it into an engagement platform for the Sony Group. Going forward, we intend to commonize IDs for services across the Sony Group, including idumi, operated by Sony Music Entertainment, which enables the use of various services with a single ID, and contribute to the convenience of our customers while considering their privacy, and make proposals that deliver even more enjoyment. Furthermore, we intend to use this engagement platform to support the development of new network services across the group in areas such as mobility and LBE, thereby providing convenience, while also accumulating knowledge regarding the interests and needs of fans and the creative desires of creators. In the future, we aim for these technologies to be widely adopted across the entertainment industry, beyond the boundaries of the Sony Group, as a common platform specialized for fan engagement that reflects these accumulated insights. As I stated at this meeting last year, for Sony to achieve further growth and create value over the long term, we must also continue to evolve the diversity of our businesses and people. At Sony, we bring together diverse people of various nationalities, race, gender, and values, and place importance on having different backgrounds and experiences. This allows for the exchange of knowledge and experience and expands opportunities for growth. We have made having these different attributes and experiences our strengths. In recent years, mergers and acquisitions have allowed us to bring in new ways of thinking and knowledge from the perspective of diversity of experience. By increasing the number of colleagues, we have specialized expertise, particularly in the entertainment business. And in terms of diversity of backgrounds, we are increasing our ratio of foreign nationals in executive positions and women in management positions year by year. As outlined in our Creative Entertainment Vision, Sony aims to unleash the creativity of creators and realize a world where limitless content can be generated. Towards this future, we plan to work together with creators, fans, and our partners to steadily maximize the value of our IP beyond existing boundaries, while continually evolving the diversity of our businesses and our people to achieve further growth. Thank you for your attention. What is content? It is the feeling of being alive. It is the energy that empowers others. It is something that is shared around the world and brings people together. When content unites us, it connects us to the future. It becomes the power that creates more content and the driving force that moves the world. This is why we will continue to deliver content by unleashing creativity and enhancing technology. We promise to enrich people's hearts with content experiences by creating extraordinary content and vibrant communities. ...To fulfill the dreams of creators by providing the finest tools and the ideal environments. To provide safety, health, and peace of mind to the world by supporting people's daily lives with cutting-edge advances. We cannot accomplish this alone. We want to think together, create together, and enjoy together. Let's move forward together to a world where everyone can find content in their lives. Sony's purpose: Fill the world with emotion through the power of creativity and technology. We'd like to start the QA session for the press shortly. Thank you for waiting. We'd like to start the QA session from the press. If you have any questions, please raise your hand. Those of you participating online, if you have any questions, please push asterisk and one. We'd like to limit questions from one person to two questions each. Hi. In the center, the person in white shirt in the front row. Sam from Reuters. Thank you. I have two questions. The first question, about your AI strategy for in the films. I'm sure that many of the film companies and other companies are increasing their budget, but AI may have to enable you to reduce the budget. Is there... Is your strategy to proactively introduce AI in your business? Could you ask your second question, too? So you are considering acquiring Paramount? It's a historical studio with a history, so it's a rare opportunity in that sense. So studio IP, I mean, are you planning to increase your studio IP? Is that your strategy? Thank you for your questions. The first question is about AI, and the second question is about the acquisition of studios, opportunities for studio acquisitions. May I answer the first question, and then if there's anything that you'd like to supplement, Mr. Totoki? And the second question, please answer the second question, Mr. Totoki. Now, about the utilization of AI, we are a technology company, so we'd like to proactively utilize AI. That's our position. On the other hand, we're also an entertainment company, so we, as a creative entertainment company, we need to protect the rights of the creators. That's our position. So how are we going to handle AI? As Totoki mentioned today, we would be looking at when to for the subtitles appear or various language translations will... can be enabled by AI, and one of the biggest opportunities would be in the gaming area, using computer technology. For example, in the game development, the cost has become quite substantial. So given that backdrop, for example, creating 3D assets in the games, and because the gaming world is becoming broader, the players who appear in the games can be generated using AI. And also, quality assurance tests can be done by AI. So these are the areas where we can utilize AI. Also, in order to increase engagement, I think we can utilize AI. Gran Turismo Sophy, in that game and also in the racing area, you see cars racing inside the game. So the users, the gamers, compete in the game. So you try to increase the users' engagement by utilizing AI. That's one example. Mr. Totoki, do you have anything that you would like to add on AI? No, I don't have anything on AI. Let me respond to the second question. So, we're not going to comment on specific reports in the media. Generally speaking, we are moving towards Creation Shift. We are looking at excellent IP libraries. ... or in music, it would be the catalogs. We're constantly interested in these assets, so the investment and return need to meet our what we want. So that is our stance. We would like to move on to the next question. On the right, at the back. Nikkei newspaper. My name is Sato. I have two questions. In the fifth medium-term plan, maximizing synergy was a keyword in your plan, but I think you have always been doing this. But so what is the difference in the fifth medium-term plan in terms of synergy? Number two, in the fifth medium-term plan, JPY 1.8 trillion for strategy, so it's... So if you see any good opportunities, will you be making the investment if you see a good investment, even exceeding the budget? So first is about the synergy, and number two is about strategic investment, which, whether we will go beyond that. So just to give my point about synergy, we have been pursuing synergy from the 20th century. In 1988, we acquired music business, in 1989 we acquired Columbia, and 1994 we entered the gaming business. So, entertainment seeds of entertainment were planted in the 20th century, and we have been working on synergy since then. But back then, our main business was electronics, so we were focusing on synergy of electronics with something else. And as I mentioned earlier, we have changed our group architecture, and we now have a smaller head office, and there is more linkage between businesses. So now, IP synergy has come about. Personally, in 2022, February, the Uncharted 400 million global box office was attained, so that was a big hallmark for me. So Totoki-san, please. I would like to respond to the second question. The fourth mid-range plan, which was completed, JPY 1.3 trillion, was the strategic investment, excluding share buyback, and 60% of that was allocated to entertainment, so that was the past. So these large-scale directions, the main direction will not change. JPY 1.8 trillion for the fifth mid-range plan, this includes very flexible share buybacks, so that is included in this JPY 1.8 trillion. So whether we will go for in good investments, even if we go beyond our budget, we don't have that in mind. We, in the three years, we would like to look for good opportunities within the range of the budget. Thank you. Let's go to the next question. On the right-hand side, the person in black suit, the 3rd row from the front. Toyoshima from TV Tokyo. Thank you for this opportunity. Mr. Yoshida, I have this question. So, popular IP, I think, will continue to generate profits, but in the entertainment, area, I think, your revenue will be impacted by popularity. What do you plan to do about such risks? The second question, about the, synergy of contents, game IP, visualization, so forth. When... Well, I think you're already doing that, the games being made into a visual, media, but I'm not sure the gaming, the PlayStation, type of, success hasn't been achieved. So what do you plan to do about that? I think the first question has, had to do with IP, that is in sync with popularity. The second question is about PlayStation. Thank you. So, I'd like to respond first, and then Totoki will try to add some more points. So IP entertainment is driven by hits, but we have diverse entertainment. We have games, anime, music, and films. So, the synergy of these diverse entertainment, I think, can bring about a very stable growth for us. They're all different industries, but it's looking at focusing on creators and the customers, so I think each business can learn from each other. About the PlayStation, well, the current generation console game, I think PlayStation has been very successful as the current console. Mr. Totoki, do you have anything to add? Yes, that impression. Last year- ... I think we sold 25 million last year. Well, I think in the end, it was like 21 million. The original 25 million was like the tailwind from the pandemic. So based on that forecast, we came up with 25 million as an aggressive case. But now, at the moment, the reaction is much steadier. So, well, the aggressive goal that we ourselves had planned is based on the sales of the consoles of the industry as a whole. Our share is very high, so the sales of the current generation and the expansion of the share, I think, we're quite satisfied with the results. Thank you. Next question. In the middle, first row. Second from the right, please. Umegaki from Toyo Keizai. I have two questions also. So I would like to hear both from Yoshida-san and Totoki-san. About the anime industry. So what is the significance of Sony itself fostering anime creators? The anime industry has always had a shortage of creators. So as the Sony Group as a whole, why are you starting to foster the anime creators? And the second question is mainly for Totoki-san. The relationship between Creation Shift and the mid-range plan. In the operating profit, you are going to grow 10% CAGR. So how will that relate to Creation Shift? So how much cost, and how speedily do you intend to grow your business? Okay, thank you. About the first point, about the anime industry. So what is the significance of Sony, developing such creators by themselves? Next is relationship between Creation Shift and mid-range plan. About your first question on the anime industry. Anime is really expanding globally. It's an entertainment, which is becoming increasingly global. Before, anime was more niche, but now, anime is becoming an entertainment, industry which is really global, and we want to contribute to that, especially, in creation and also to expand Japanese anime outside Japan. We want to really, do that through Crunchyroll. And in Crunchyroll, we share the viewership data with the creators, so that, we can feed back, the viewers' opinion to the creators. So our intention is real contribution here. The second point, about the relationship between the mid-range plan and Creation Shift. The pictures segment in the next, the growth driver of the next mid-range plan for the movie business is the growth of Crunchyroll. The growth rate and profitability, both are very high. So we want to really focus in this area, so that is our basic thinking. And to that end, Crunchyroll is a distribution platform, so we need excellent content. A large volume of good content, and that needs to become a global hit, and that will lead to contribution to the anime industry in Japan. So supporting creators will really indirectly link to our growth of our business. But, supporting the creators is something done for the entire inter-industry, so we don't want to be closed here. We want to make this, so we want to really build an environment where the excellent anime works will be created as the anime industry as a whole. Well, our time is getting running out. I think the next question will be the last question. Please just ask one question only. The person in the center, the second row from the front, the person in black suit. Murase from Yomiuri Shimbun. To maximize IP value, what are some of your challenges? You spoke about hit, the fact that it needs to be hit-driven, so you need investment to manage and to also buy, acquire IP. What are some of the challenges that you have? Thank you. ... something from myself, and then Totoki will also add. So IP acquisition and investment, we're doing this quite proactively. We have been doing it proactively. As I said, in the past six years, we spent JPY 1.5 trillion. So the invested IP needs to be utilized. That's the phase that we are in at the moment. In the previous mid-range, we were investing for the future. That was the phase. But in this mid-range, we have to generate return from what we invested. Yes. IP, well, the hit driven IP, popular IP is very expensive. It's very competitive, and what is important is that we need to acquire them at the right value. If a premium is needed, well, then we need to generate more value from that IP, so concrete ideas need to be there in order to make that acquisition. These past six years, we have accumulated experience, so I think our approach is has been right. I think we have learned from our approach and from our experience, so we'll be looking at return on investment going forward. Thank you very much. Now it is time, so we would like to close our Q&A session for the media. We will now move to the questions from investors and analysts. We would now like to start the Q&A session for analysts and investors. I am Uehara from the IR group. If you have any questions in the venue, please raise your hand. If you are attending online, please press one after the asterisk. Please keep your questions to two questions. So, we would like to entertain questions now. On, on the left block, second from the front, on the very right, please. Thank you. BofA Securities, Hirakawa. I have one question. So about, growth through investment, so as you have explained, in the long term, you... I understand that you are investing, in the long term from IP and business. So the balance between growth, investment, and shareholders' returns, so in the Q&A sessions so far, you so now you said it's a phase of reaping the benefits of the investment and that allocating some of that to the shareholder returns. But I think maybe you have gone into the next phase. Maybe you have changed your... moved into a next phase of growth. Is that true, or so, and in the next mid-range plan, will you go, go into this growth stage again? Okay, thank you. Your question, the balance between growth, investment, and shareholders' returns, since that is balance, whether Sony is now in a maturity stage. So would Totoki-san like to answer the questions? And I would like to add. The stage of our business, in a sense, I think it is changing. I, so CEO Yoshida-san and myself, came back to Sony headquarters in 2013, and it's been more than a decade since then. And during this time, looking back, we have streamlined the portfolio, and also, we have, pulled out from loss-making businesses, and as a result of that, we are at the current stage. So the phase where the profit growth was substantial, we were also, pulling out, from, the undesirable, businesses. But now, in our portfolio, we are not saying that we don't have any issues in business, but we don't have any truly problematic businesses in our portfolio. So as a growth, the industry grew, grows and competitor grows, so looking at the... So I think that our growth rate will shift to those aligned to the industry. So I think there is a change in the phase to some extent. But after this era, then we need to bring about new growth, so that is a big challenge. That is, so that is our big challenge. And I would like to add, so what the entertainment market, which we are working on, I believe is a growth market. And myself and Totoki mentioned creative and shifting to creation. ... So because that is what we think is a growth market, and I would like to explain about the background of that. So chronologically speaking, in the 20th century, Sony had Walkman, Trinitron, color TV, CD. So we were really contributed to delivering content. That was what Sony was mainly doing in the 20th century. But in the 21st century, creating content, we want to contribute to creating content. The 21st century, so the media of delivering content has really shifted to networks. And there are big tech companies, so there are so many players in this content delivery market. So what we can contribute more, where we can really demonstrate our strength, is to create. So that is contributing to the creative community. And so, other than talking about the different centuries of 20th and 21st century, I also mentioned real-time, this moment. We are all living in this moment, so this is also where we can really contribute. So we have technology, CMOS sensor, and game engine we introduced today. And after real-time, we have editing and search. That is what happens, and there are many, many players. So we want to really realize value in this real-time phase. So that is what we want to do. And the purpose and direction... So we have our ambitions, but we don't have the timeline, so we have Totoki-san announce the Creative Entertainment Vision, what we want to become in 10 years' time. So that is what we shared with you today. So Sony in the 20th century, Sony in the 21st century, shifting from delivery to creation. That is what we want to do, and also focusing on real time. That is what we believe we can contribute the most technologically and also bring about value. And by doing this, we can really contribute the most to filling the world with content. Sorry for the long answer. Let's move on to the next question. On the left-hand block, the person on the right-hand side, at the corner of the second row. Thank you. J.P. Morgan Securities, Ayada. I have two questions. The first question about the anime business, about the growth strategy. This business, Crunchyroll and Aniplex are the main businesses, and they have platforms and IP, and I think they're doing different things. So your anime business, your... What is the importance of having your own IP? If it's pictures, I think having your own IP is central. But gaming, you need a third-party games as well. But in the anime business, what is the importance of your own IP? Is that central to growth or is it not? The second question is about entertainment business. Mr. Totoki said that during the pandemic, you had the tailwind, but currently, that's already finished. So how do you view the environment? I think in the pictures industry, they're trying to reduce the number of pictures that are produced, and the same can be said in other businesses. So are you thinking about the reallocation of resources? Thank you. The first question is about anime. The second question is about entertainment. The fact that the tailwind from the pandemic has finished, what are we going to do now? So perhaps Mr. Totoki can respond. About anime, Crunchyroll and Aniplex are the two main businesses. Yes. I think it's probably closer to gaming, because you have to have the platform, you have to have different contents, aggregate the contents, and distribute them. So it's a platform that is competitive, where you can distribute the contents. So this is where we need our own IP. This is how we can appeal to the users. That's the kind of world that we want to create. As Yoshida has said over and over again, Creation Shift is a term that indicates that we will grow our own IP and make that successful. That is an important ... challenge for us to become successful. It's not, not just for anime, but it's also for gaming and also for pictures. And also in the gaming business, well, with the tailwind from the pandemic finished, well, the growth rate is becoming more moderate than we had expected, so we need to align the organization to counteract... And that's already happening. We have done some streamlining, and we've been integrating the backyards of studios. Also, as for the development of software, we're also looking at the portfolio so that during the three years it can work in a way where the release can be based on the timing that we want. So that type of fine-tuning has been done. Well, let me just say about anime. Crunchyroll is a way to deliver Japanese anime to the world. That's the platform. It's We're looking at the fans, but we're also looking, focusing on the creators of anime. Totoki mentioned that in his presentation. Crunchyroll Anime Award is a global event that is taking place in Japan, and also the viewers' data is being returned or is fed back to the creators. That is done because we're looking at the creators. Our platform is focusing on the creators. </transcript Okay, moving on to the next question. At second from the back, on the right. Mizuho Securities, Nakane. Thank you for the insightful presentation. About human resources, I have two points. About acquiring talent, so what is necessary to acquire talent? You mentioned the corporate culture, so please elaborate on that. And also, the existing systems and institutions, what is unique? What do you think is competitive among your established system and institution? And what would you like to change and introduce? How do you intend to enhance your HR organization globally? And the second question is to expand, maximize synergy, the entertainment business, between entertainment businesses and entertainment and electronics, entertainment and semiconductors. How would you like to establish talent exchange among these businesses? And also, M&A targets, how you intend to work with these entities? Maybe that will be project-based. And how would you like to tackle this in a systematic or institutional manner? About the first question about talent, that was the question. And the second question, about maximizing synergy, so how to, and how would we strengthen exchange of talent? About your first question, what is very fundamentally necessary is, and important, is each individual have high motivation and feel that, and so have a sense and feeling that this person is able to grow here. So we want, we whether we can provide such environment. Of course, the treatment, and compensation is important, but people need some motivation, and people, want to self-realize. So whether we can offer this type of opportunity, will lead to more competitiveness. And I'm not sure whether it's unique, but what we really value, a KPI which we value, is employee engagement. And we globally, measure, on a, the, the engagement in a cross-segment manner. So how passionate, the people have, what passion, how much passion and motivation, they have in work, we quantify that. And we grasp the employees' expectations accurately, so that we are able to respond to their expectation. This should be done not only in Japan, but globally. About the second point, about the system of talent exchange. There are many occasions for employees to work together in projects such as the backyard integration of PlayStation Studios, and also when we launched live service. What is needed, these were shared within the studio, and what type of experience are needed. Integration is moving forward, looking at the same data and sharing the same experience. Rather than the system and institutions- ...So it is important to offer opportunities so people feel motivated, thus bringing about exchanges. I think I mentioned the same thing last year. For the company, our raison d'être or the purpose is extremely important, why we exist. So whether the purpose is convincing or not, will really define whether an individual can feel passion in working in the company. About talent exchange, one recent example, in the Sony Group headquarters, Sony Pictures PR executive is now a group wide PR manager, PR executive. So this type of talent exchange, we want to continue. Next question? We don't have much time, so the next question will be the last question. Please raise your hand if you have a question. There's someone in the back. Nishimura from Okasan Securities. Thank you for this opportunity. I have two questions. In your presentations, you talked about contents creation, and you will also be looking at the outside companies to do that. So how much leadership do you plan to assume in creation? And how will that generate revenue and performance? The second question has to do with the engagement platform, the development of engagement platform. Among the many different platforms, I think there are many contents communities. Well, in order to unify these platforms, I think there's a lot of difficulties or hurdles. How do you plan to transcend those hurdles? Thank you. I think the first question was about the creation, leadership in the, creation industry, and the second question has to do with the engagement platform, from the user's side. Well, the first question... Leadership, whether we are, assuming leadership or not, I think it's difficult to define that. We want to, be able to support, through our platforms and through our technology, that will increase, the pie, the share of the market or the pie of the market. So there's a limit to how... What we can do on our own, therefore, I think collaboration is important. So the image is to increase the pie, which will, of course, increase or which will lead to our, successful performance. So unless you widen and broaden the pie, we cannot increase. We won't be able to contribute to the performance increase. Now, engagement, well, for an engagement, this is providing a stress-free environment, and SIE has been doing that over the years. So what would be a bottleneck for the users? What is the frustration for the users? That needs to be understood, and we need to be able to counteract quickly, especially in the networks. We have to be able to counteract in a real-time, on a real-time basis. So this is something that we have been polishing over the years, so we want to expand that or utilize that across the board. Now, rather than de facto, as Totoki said, making a contribution is much more important than becoming a leader or assuming leadership. We talked about the CMOS sensors and game engines as a real-time experience, Torchlight and virtual production. Well, rather than getting, making it de facto, we want to be able to confirm on a real-time basis, contributing in a real-time basis, so that this will then lead to profits as well. We have made substantial investments in authentic IPs, like music catalogs, for example. So AI is being disseminated, so IP that everyone knows or music that everyone is familiar is something that we want to investment, we want to invest in. I think that will maximize our value. Thank you very much. This concludes the Corporate Strategy Meeting. Thank you very much for your attendance.