Question: Using information from both Exhibit 2 in the case and R&D expenses table (below), (1) calculate Research and Development (R&D) intensity in five segments (Game

Using information from both Exhibit 2 in the case and R&D expenses table (below), (1) calculate Research and Development (R&D) intensity in five segments (Game & Network Services, Home Entertainment & Sound, Imaging Products & Solutions, Mobile communications, Semiconductors) in 2017 and 2018, and then (2) identify the segments with highest R&D intensity in each year. (Note: R&D intensity = R&D expense Sales)

R&D Expenses (Yen in billions) R&D Intensity

Segment

FY 2017

FY 2018

R&D Intensity FY 2017 (R&D Expense/Sales)

R&D Intensity FY 2018 (R&D Expense/Sales)

Game & Network Services

95.6

106.2

Home Entertainment & Sound

47.3

58.0

Imaging Products & Solutions

58.6

58.6

Mobile Communications

117.6

107.2

Semiconductors

44.4

44.9

The segment with the highest R&D intensity in FY 2017 are:

The segment with the highest R&D intensity in FY 2018 are:

Using information from both Exhibit 2 in the case and R&D expenses

Exhibit 2: Sony Group Sales and Operating Income by Segment FY2018 Results by Segment

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