Neal Manowitz Senior Manager Consumer Systems and Applications Sony Electronics Inc'

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Neal ManowitzSenior ManagerConsumer Systems and
ApplicationsSony Electronics Inc.
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Consumers Want Entertainment

• Over 33 million US households own a home theater
• Consumers spend more on DVDs than going to the
  movies
• HD content driving est. 20 million digital TVs
  will be sold in 06
• 18.8 billion
• New display tech leads growth

Digital TV Sales (Billions )
Source CEA
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Technology Penetration ForecastIn Single Family
Homes

• Structured wiring at 49 in 2005 (down from 61
  in 2004)
• Home theater up from 8 in 2004
• Multi-room Audio up from 12 in 2004

with Distributed Audio
15
with Home Theater
Single Family Homes Starts (millions)
New Home Technology Penetration
11
Source CEA/NAHB/Sony
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Entertainment Products
Home Price Segment
500k-above
300k-500k
Homes Built
150k-300k
Custom Installation is great for a 10 million
house. But.. what about the other 99 of the
market?
Under 150K
Source CSFB2004
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What Needs to Happen

• Increase home value
• Answer the consumers question of Why Now?
• Brand recognition and marketing
• Ability for you to close on time
• A/V products designed to meet production
  schedules and are easy to sell, install and use
• Qualified installers
• Ability for you to make money
• A profitable upgrade that is accessible to a
  wider audience

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Where Sony is coming from

• A brand trusted by consumers
• 1 Tech brand rated by builders in 2006 Builder
  Insight study
• 1 Brand rated by Harris Interactive six years in
  a row
• Largest consumer electronics company
• Brand reaching all aspects of entertainment
• Products services designed for new home
  constriction
• Complete AV systems from 1k installed
• Fast simple installation
• Non retail products, builder programs and profit
  built-in

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WallStationHome Entertainment Appliance
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WallStationIncreasing the Home Value

• Complete DVD home theater solution
• 5.1 surround sound
• Multi-room audio
• Intercom room monitor
• Designed to be part of the home
• Integrated modular architecture
• Small footprint, in-wall design
• Simple to sell and use
• As easy as a CD-player
• Share music throughout home
• Sony, a brand consumers trust

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WallStationDesigned to Close On Time

• Simple install in minutes
• Low voltage (Cat5, speaker wire)
• Installs like in-wall speaker / security system
• Authorized Sony installers

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WallStationProfit Opportunity

• Designed for production build
• Experiential selling
• Not a retail product
• In-home warranty
• Designed for broad market appeal
• Even starter homes
• Complete rooms starting at 1k installed
• Three room system 4k installed