EXPATRIATE MANAGEMENT TECHNOLOGY SONY MOBILE COMMUNICATIONS CASE STUDY

3-4 APRIL, BUDAPEST, HUNGARY

Madelene Gustavsson

Lund, Sweden

Frederic Franchi

London, UK

Company Internal 4/038 13-LXE 110 0270 Uen PA6 Company Presentation 2014-03-25 2

Agenda

Collect Questions and Expectations on this session

Short Sony presentation

The Story: Global Mobility from outsourced to in-house solution

Implementation of Assignment Pro

Assignment Pro Today

Some good advice

Founded May 7, 1946

Global company with headquarters

in Tokyo

175 000 employees

900M Sony devices in consumers’

homes

Positioned to be the world's leading

electronics and entertainment

company

President and CEO: Kazuo Hirai

Sony history – a heritage of innovation

President and CEO:

Kunimasa Suzuki

Facts about Sony Mobile

7000 employees

Operations in 50 countries

Successful business growth

Through its Xperia™ smartphone

portfolio, Sony Mobile

Communications delivers the

best of Sony technology,

premium content and services,

and easy connectivity to Sony’s

world of networked entertainment

experiences

Power of Sony

Evolutionary development of mobile devices

T68

2001 2004 2008 2012 2013 2014

Customer Units

Business/Development units

Manufacturing

Sony Mobile global footprint

Top media awards

Best Tablet

Best Tablet

Best Tablet

Best Tablet

Best Tablet

Best Tablet

Best Product:

Wearables

Best

Smartphone

Best

smartphone

Global mobility within Mobile

Assignment type

LTA active 183

LTA repat 14

STA active 30

GLH 350

2

4

6

8

10

12

14

16

18

Home countries Host countries

Number of countries

Gender

Female 10%

Male 90%

Most common Home Country: Japan

Most common Host Country: China

Most commmon combination: Japan to China

Host Locations: 18

Sao Paulo

Shanghai

Beijing Düsseldorf

Milan Tokyo

Mexico City

Lima

Singapore

Madrid

Lund

Taipei

Dubai

London

San Diego

San Mateo

San Fransisco

Atlanta

Types of assignment and organization

Long-Term Assignment

Time: Longer than 12 months

Home based built up salary

calculation, split salary

Benefits: LTA policy

Short-Term Assignment

Time: Longer than 3 months

Home company salary and

payroll with STA-allowance

Benefits: STA policy

Global Local Hire

Time: Unlimited

Local Salary

Benefits: GLH policy, Local

benefits and “start up support”

Commuters

Time: Unlimited

Local salary

Local Benefits

Assignment Management

Compensation Balance Sheets

Total Cost Estimates

Letters

Vendor initiations

Expat contact

Salary Review

Payroll

Monthly reporting

Expat tracking information

Tax and Social Security

Outsourced solution with E&Y UK 2001-2012

Today with E&Y: Tax and Soc

Tax briefings

Tax returns

Tax equalization calculations

Social security

WHY?

Higher level of quality

Cost saving

Faster support

Closer to the business

Control

WHY AssignmentPro™?

Everything in one tool!

ORC/ Mercer data

High technology for a high tech company

Global mobility from outsourced to in-house

Repatriation

and Post-Repatriation On Assignment Post-Approval Pre-Approval

Candidate application

Candidate / Assignee

record

Development of

assignment package

(LOA, Balance Sheet)

Assignee acceptance

Authorization of

services

Compensation, payroll,

and reporting

Expense

reimbursement

Management of ongoing

services and support Cost projection

Informational and

process resources and

support for assignees

Pre-departure /

Pre-arrival activities

Change of status /

reintgration processes

Closing out assignment-

related services

Assignment

approval

Communications with assignee, internal and external parties

Post-repatriation

tracking

Monitoring, reporting,

and tracking of

assignments

AssignmentPro™ - assignment lifecycle

AssignmentPro™ delivers end-to-end automation for the effective management of

all aspects of international assignments. The key advantages and differentiators are:

• Automated initiation of international assignment and authorisation processes

• Total cost estimation and projection calculations

• Automated merged documents, email reminders, alert notifications, pre-set and

automatic triggers

• Integrated workflow-management and checklists

• Expatriate compensation package batch calculations

• Strong functionalities in tracking and reporting

• Different levels of access via portals, such as HR, employee, payroll and vendor portals

• Payroll instructions and compensation accumulation

AssignmentPro™ - key functionalities

Assignees

Executive

Management

Human

Resources

Suppliers

Payroll

Mobility Team

AssignmentPro™ - one global database, many views

Value of community-driven, continuously enhanced software vs. custom-built software

Software ROI

Value

Continuous Innovation

AssignmentPro™ - our USP

Gross

Home

Salary

(Gross)

*base

only

Housing

deduction

Hypothetical

Tax &SS

Deduction

5%

Goods

& Services

(Spendable

Income)

Reserves/

Savings

COLA

TTL Annual

Comp

(NET)

STI

(Gross)

X% of Gross Home

Salary

Tax&housing

Deduction

STI

(Net)

TTL Annual

Home Comp

(NET)

Home

Salary

35% of TTL Annual

Home Comp

Host

Salary

Total

Compensation

Our new BS, customized for our need

Status today in AssignmentPro™

Balance Sheet Calculations

Total Cost Estimates

Assignment Policies and Services

Assignment Details Tracking

Assignment Compensation Tracking

Document uploading

Merge Documents

User Report functionality

Reminders / Alerts

Authorization process automated

HR BP Portal view access

Checklists (basic function)

Email Integration function

Our next step in AssignmentPro™

• Expat portal

• Vendor portal

• Checklists automatic

• Annual salary review using the tool

• Train our super user

• Continue to train our Global Mobility team

Next step for us as Global Mobility function:

Continue to align policies and organization with Sony Group.

Assignment Pro at Sony Mobile is a pilot for the Sony Group

with over 2000 expats.

Thoughts..

• Differently- it took a long time internally to set the contract with

Mercer. Involve internal IT along the way, not only at the contract

level.

• What made this implementation a success?

• In-house Expertise and experience in Global Mobility

• Great relationships and trust

• Open mindset from both sides

• The goal to make it customized for us