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6-K 1 tm2420777d1_6k.htm FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

 

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of August 2024

Commission File Number: 001-06439

 

SONY GROUP CORPORATION

(Translation of registrant’s name into English)

 

1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN

(Address of principal executive offices)

 

The registrant files annual reports under cover of Form 20-F.

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,

 

Form 20-F x   Form 40-F ¨

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

SONY GROUP CORPORATION

(Registrant)

 

     
  By: /s/ Hiroki Totoki
      (Signature)
  Hiroki Totoki
  President, Chief Operating Officer and
  Chief Financial Officer

 

Date: August 7, 2024

 

List of Materials

 

Documents attached hereto:

 

Consolidated Financial Summary for the First Quarter Ended June 30, 2024

 

 


 

Consolidated Financial Summary for the First Quarter Ended June 30, 2024

 

(In accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”))

 

August 7, 2024
Company name : Sony Group Corporation
Stock exchange listing : Tokyo Stock Exchange (“TSE”)
Securities code : 6758
URL : https://www.sony.com/en/SonyInfo/IR/
Representative : Kenichiro Yoshida, Representative Corporate Executive Officer
Contact person : Sadahiko Hayakawa, Senior Vice President
Telephone : +81-3-6748-2111
Scheduled date to commence dividend payment : -
Preparation of supplementary materials on financial results : Yes
Holding of financial results briefing : Yes (for investors and analysts)

 

(Amounts are rounded to the nearest million yen, unless otherwise noted.)

 

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)

 

(1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

 

Consolidated Sales and financial
services revenue
Operating income Income before income
taxes
Net income Net income attributable to
Sony Group Corporation’s
stockholders
Three months ended Yen in millions % Yen in millions % Yen in millions % Yen in millions % Yen in millions %
June 30, 2024 3,011,649 1.6 279,106 10.3 316,867 14.8 235,828 8.2 231,638 6.5
June 30, 2023 2,963,652 32.9 253,042 -30.6 276,034 -21.0 217,942 -16.6 217,545 -16.7

 

Consolidated Total comprehensive
income
Adjusted OIBDA* Adjusted EBITDA*

Basic earnings

per share

Diluted earnings

per share

Three months ended Yen in millions % Yen in millions % Yen in millions % Yen Yen
June 30, 2024 377,881 -15.2 454,682 14.8 461,256 13.5 189.90 189.43
June 30, 2023 445,459 0.5 396,122 -19.0 406,221 -18.2 176.26 175.67

 

For all segments
excluding Financial
Services*
Sales and financial
services revenue
Operating income Income before
income taxes
Net income attributable to
Sony Group Corporation’s
stockholders
Adjusted OIBDA* Adjusted EBITDA*
Three months ended Yen in millions % Yen in millions % Yen in millions % Yen in millions % Yen in millions % Yen in millions %
June 30, 2024 2,567,436 12.3 249,124 25.5 286,885 5.6 210,025 -8.3 417,870 24.9 424,444 7.5
June 30, 2023 2,285,789 13.3 198,531 -12.0 271,559 8.0 229,126 13.0 334,696 -2.5 394,831 0.6

 

(2) Consolidated financial position

 

  Total assets Total equity Equity attributable to Sony Group
Corporation’s stockholders
Ratio of equity attributable to
Sony Group Corporation’s
stockholders to total assets
As of Yen in millions Yen in millions Yen in millions %
June 30, 2024 34,677,809 8,148,959 7,857,452 22.7
March 31, 2024 34,107,490 7,756,105 7,587,177 22.2

 

 


 

2. Dividends

 

  Annual dividends per share
  First quarter-end Second quarter-end Third quarter-end Year-end Total
  Yen Yen Yen Yen Yen

Fiscal year ended

March 31, 2024

- 40.00 - 45.00 85.00

Fiscal year ending

March 31, 2025

-        

Fiscal year ending

March 31, 2025

(Forecast)*1

  50.00 - 10.00 -

 

Note: Revisions to the forecast of dividends most recently announced: No

 

*1 Sony Group Corporation decided at the Board of Directors meeting held on May 14, 2024 to conduct a stock split, scheduled to be effective on October 1, 2024 with a record date of September 30, 2024. Each share of Sony Group Corporation’s common stock will be split into five (5) shares per share. The above year-end dividend per share forecast for the fiscal year ending March 31, 2025 is based on a number of shares taking into account the stock split. The total annual dividend per share forecast for the fiscal year ending March 31, 2025 is not presented because the total of the interim dividend and the year-end dividend cannot be calculated due to the effect of the stock split. Without taking the stock split into account, the year-end dividend per share forecast for the fiscal year ending March 31, 2025 would be 50 yen and the total annual dividend per share forecast for the fiscal year ending March 31, 2025 would be 100 yen.

 

3. Forecast for Consolidated Results for the Fiscal Year Ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

 

(Percentages indicate year-on-year changes.)

Fiscal year ending March
31, 2025
Sales and financial
services revenue
Operating income Income before
income taxes
Net income attributable to
Sony Group Corporation’s
stockholders
Adjusted OIBDA* Adjusted EBITDA*
  Yen in millions % Yen in millions % Yen in millions % Yen in millions % Yen in millions % Yen in millions %
Consolidated 12,610,000 -3.2 1,310,000 8.4 1,335,000 5.2 980,000 1.0 1,990,000 9.0 1,990,000 9.5
For all segments excluding Financial Services* 11,700,000 3.9 1,165,000 12.5 1,190,000 3.9 875,000 -2.4 1,820,000 10.7 1,820,000 7.9

 

Note: Revisions to the forecast for the fiscal year ending March 31, 2025 most recently announced: Yes

 

* Adjusted OIBDA (Operating Income Before Depreciation and Amortization), Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and figures for all segments excluding Financial Services are not measures in accordance with IFRS Accounting Standards. However, Sony Group Corporation believes that these disclosures may be useful information to investors. Adjusted OIBDA and Adjusted EBITDA are calculated by the following formulas, respectively. For the reconciliations for Adjusted OIBDA and Adjusted EBITDA, please refer to “Q1 FY2024 Consolidated Financial Results” (the presentation material for the earnings announcement) disclosed on the same date as this document on the Timely Disclosure Network (“TDnet”) of the TSE, the Electronic Data Gathering, Analysis, and Retrieval (“EDGAR”) system of the U.S. Securities and Exchange Commission (“SEC”) and the website of Sony Group Corporation.

 

  Adjusted OIBDA = Operating income + Depreciation and amortization expense excluding amortization for film costs and broadcasting rights, as well as for internally developed game content and master recordings included in Content assets - the profit and loss amount that Sony deems non-recurring.

 

  Adjusted EBITDA = Net income attributable to Sony Group Corporation’s stockholders + Net income attributable to noncontrolling interests + Income taxes + Interest expenses, net, recorded in Financial income and Financial expense - Gain on revaluation of equity instruments, net, recorded in Financial income and Financial expense + Depreciation and amortization expense excluding amortization for film costs and broadcasting rights, as well as for internally developed game content and master recordings included in Content assets - the profit and loss amount that Sony deems non-recurring.

 

  For details about the preparation of the Financial Statements for all segments excluding Financial Services, please refer to page 12 of the Appendix.

 

 


 

* Notes

(1) Significant changes in scope of consolidation during the period : No
   
(2) Changes in accounting policies and changes in accounting estimates:
  (i) Changes in accounting policies required by IFRS Accounting Standards : Yes
  (ii) Changes in accounting policies due to other reasons : No
  (iii) Changes in accounting estimates : No

 

(3) Number of issued shares (common stock):  
     
  (i)  Total number of issued shares at the end of the period (including treasury stock)

 

As of June 30, 2024 1,248,619,589 shares
As of March 31, 2024 1,261,231,889 shares

 

(ii) Number of shares of treasury stock at the end of the period

 

As of June 30, 2024 30,868,630 shares
As of March 31, 2024 39,783,003 shares

 

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

 

Three months ended June 30, 2024 1,219,769,683 shares
Three months ended June 30, 2023 1,234,242,212 shares

 

  Note: Please refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Net Income Attributable to Sony Group Corporation’s Stockholders and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)” for number of shares used as basis for calculating consolidated per share data.

 

* Review of the attached condensed quarterly consolidated financial statements by certified public accountants or an audit firm: No

 

* Proper use of earnings forecasts, and other special matters:

 

  Please refer to “Cautionary Statement” on page 17 of the Appendix for assumptions and other matters related to the forecast of financial results.

 

  Supplementary materials on financial results including the presentation material for the earnings announcement are available on Sony Group Corporation’s website along with this document.

 

 


 

(Appendix)

 

Table of Contents for Appendix

 

Condensed Quarterly Consolidated Financial Statements (Unaudited) 2
   
Condensed Quarterly Consolidated Statements of Financial Position 2
Condensed Quarterly Consolidated Statements of Income (Three months ended June 30) 4
Condensed Quarterly Consolidated Statements of Comprehensive Income (Three months ended June 30) 5
Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity (Three months ended June 30) 6
Condensed Quarterly Consolidated Statements of Cash Flows (Three months ended June 30) 7
Notes to Condensed Quarterly Consolidated Financial Statements 9
-      Business Segment Information 9
-      Going Concern Assumption 15
-      Accounting Policy and Other Information 15
   
Overview of Operating Results 17
   
Cautionary Statement 17

 

All financial information is presented on the basis of IFRS Accounting Standards.

 

Sony Group Corporation and its consolidated subsidiaries are together referred to as “Sony” or “Sony Group.”

 

- 1 -


 

(Unaudited)

Condensed Quarterly Consolidated Financial Statements

Condensed Quarterly Consolidated Statements of Financial Position

 

    Yen in millions  
   

March 31,

2024

   

June 30,

2024

   

Change from

March 31, 2024

 
ASSETS                        
Current assets:                        
Cash and cash equivalents     1,907,113       1,477,098       (430,015 )
Investments and advances in the Financial Services segment     398,153       412,275       14,122  
Trade and other receivables, and contract assets     2,158,196       2,080,143       (78,053 )
Inventories     1,518,644       1,692,709       174,065  
Other financial assets     125,365       127,656       2,291  
Other current assets     669,335       765,856       96,521  
Total current assets     6,776,806       6,555,737       (221,069 )
Non-current assets:                        
Investments accounted for using the equity method     423,744       429,128       5,384  
Investments and advances in the Financial Services segment     18,939,794       18,959,272       19,478  
Property, plant and equipment     1,522,640       1,596,690       74,050  
Right-of-use assets     503,395       576,710       73,315  
Goodwill     1,487,100       1,583,088       95,988  
Content assets     1,928,113       2,317,397       389,284  
Other intangible assets     615,602       663,731       48,129  
Deferred tax assets     499,550       507,971       8,421  
Other financial assets     897,341       945,587       48,246  
Other non-current assets     513,405       542,498       29,093  
Total non-current assets     27,330,684       28,122,072       791,388  
Total assets     34,107,490       34,677,809       570,319  

 

(Continued on the following page.)

- 2 -


 

Condensed Quarterly Consolidated Statements of Financial Position (Continued)

 

    Yen in millions  
   

March 31,

2024

   

June 30,

2024

   

Change from

March 31, 2024

 
LIABILITIES                        
Current liabilities:                        
Short-term borrowings     1,812,605       1,823,419       10,814  
Current portion of long-term debt     217,711       214,847       (2,864 )
Trade and other payables     2,064,905       2,252,860       187,955  
Deposits from customers in the banking business     3,670,567       3,690,958       20,391  
Income taxes payables     152,074       91,243       (60,831 )
Participation and residual liabilities in the Pictures segment     251,743       264,049       12,306  
Other financial liabilities     116,044       130,321       14,277  
Other current liabilities     1,906,396       1,899,211       (7,185 )
Total current liabilities     10,192,045       10,366,908       174,863  
Non-current liabilities:                        
Long-term debt     2,058,117       2,134,844       76,727  
Defined benefit liabilities     247,583       252,354       4,771  
Deferred tax liabilities     166,424       179,817       13,393  
Insurance contract liabilities     12,931,995       12,776,766       (155,229 )
Participation and residual liabilities in the Pictures segment     206,081       220,842       14,761  
Other financial liabilities     386,761       415,208       28,447  
Other non-current liabilities     162,379       182,111       19,732  
Total non-current liabilities     16,159,340       16,161,942       2,602  
Total liabilities     26,351,385       26,528,850       177,465  
EQUITY                        
Sony Group Corporation’s stockholders’ equity:                        
Common stock     881,357       881,357       -  
Additional paid-in capital     1,483,410       1,484,449       1,039  
Retained earnings     6,002,407       6,025,362       22,955  
Accumulated other comprehensive income     (376,063 )     (209,524 )     166,539  
Treasury stock, at cost     (403,934 )     (324,192 )     79,742  
Equity attributable to Sony Group Corporation’s stockholders     7,587,177       7,857,452       270,275  
Noncontrolling interests     168,928       291,507       122,579  
Total equity     7,756,105       8,148,959       392,854  
Total liabilities and equity     34,107,490       34,677,809       570,319  

 

- 3 -


 

Condensed Quarterly Consolidated Statements of Income

 

    Yen in millions  
    Three months ended June 30  
    2023     2024     Change  
Sales and financial services revenue:                        
Sales     2,284,543       2,565,361       280,818  
Financial services revenue                        
Insurance revenue     142,750       152,912       10,162  
Other financial services revenue     536,359       293,376       (242,983 )
Total financial services revenue     679,109       446,288       (232,821 )
Total sales and financial services revenue     2,963,652       3,011,649       47,997  
Costs and expenses:                        
Cost of sales     1,624,510       1,784,389       159,879  
Selling, general and administrative     474,939       543,414       68,475  
Financial services expenses                        
Insurance service expenses     97,366       110,813       13,447  
Insurance finance expenses (income)     489,352       261,480       (227,872 )
Other financial services expenses     37,825       43,961       6,136  
Total financial services expenses     624,543       416,254       (208,289 )
Other operating (income) expense, net     (8,742 )     (9,820 )     (1,078 )
Total costs and expenses     2,715,250       2,734,237       18,987  
Share of profit (loss) of investments accounted for using the equity method     4,640       1,694       (2,946 )
Operating income     253,042       279,106       26,064  
Financial income     31,912       53,230       21,318  
Financial expenses     8,920       15,469       6,549  
Income before income taxes     276,034       316,867       40,833  
Income taxes     58,092       81,039       22,947  
Net income     217,942       235,828       17,886  
                         
Net income attributable to                        
Sony Group Corporation’s stockholders     217,545       231,638       14,093  
Noncontrolling interests     397       4,190       3,793  

 

    Yen  
    Three months ended June 30  
    2023     2024     Change  
Per share data:                  
Net income attributable to Sony Group Corporation’s stockholders                        
- Basic     176.26       189.90       13.64  
- Diluted     175.67       189.43       13.76  

 

- 4 -


 

Condensed Quarterly Consolidated Statements of Comprehensive Income

 

    Yen in millions  
    Three months ended June 30  
    2023     2024     Change  
Net income     217,942       235,828       17,886  
Other comprehensive income, net of tax -                        
Items that will not be reclassified to profit or loss                        
Changes in equity instruments measured at fair value through other comprehensive income     (6,917 )     (15,062 )     (8,145 )
Remeasurement of defined benefit pension plans     (425 )     (787 )     (362 )
Share of other comprehensive income of investments accounted for using the equity method     139       (1,140 )     (1,279 )
Items that may be reclassified subsequently to profit or loss                        
Changes in debt instruments measured at fair value through other comprehensive income     (72,542 )     (432,256 )     (359,714 )
Cash flow hedges     (2,230 )     (2,277 )     (47 )
Insurance finance income (expenses)     20,517       350,402       329,885  
Exchange differences on translating foreign operations     285,771       239,701       (46,070 )
Share of other comprehensive income of investments accounted for using the equity method     3,150       3,811       661  
Other     54       (339 )     (393 )
Total other comprehensive income, net of tax     227,517       142,053       (85,464 )
Comprehensive income     445,459       377,881       (67,578 )
                         
Comprehensive income attributable to                        
Sony Group Corporation’s stockholders     443,428       372,839       (70,589 )
Noncontrolling interests     2,031       5,042       3,011  

 

- 5 -


 

Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity

 

    Yen in millions  
   

 

 

Common

stock

   

 

Additional

paid-in

capital

   

 

 

Retained

earnings

   

Accumulated

other

comprehensive

income

   

 

Treasury

stock, at

cost

   

Sony Group

Corporation’s

stockholders’

equity

   

 

 

Noncontrolling

interests

    Total equity  
Balance at April 1, 2023     880,365       1,463,807       5,092,442       (614,570 )     (223,507 )     6,598,537       58,613       6,657,150  
Comprehensive income:                                                                
Net income                     217,545                       217,545       397       217,942  
Other comprehensive income, net of tax                             225,883               225,883       1,634       227,517  
Total comprehensive income                     217,545       225,883               443,428       2,031       445,459  
Transfer to retained earnings                     1,152       (1,152 )             -               -  
Transactions with stockholders and other:                                                                
Exercise of stock acquisition rights             (1 )     (144 )             4,600       4,455               4,455  
Stock-based compensation             3,127                               3,127               3,127  
Dividends declared                     (49,380 )                     (49,380 )     (1,604 )     (50,984 )
Purchase of treasury stock                                     (10,150 )     (10,150 )             (10,150 )
Reissuance of treasury stock             1                       2       3               3  
Transactions with noncontrolling interests shareholders and other             12,968                               12,968       16,550       29,518  
Balance at June 30, 2023     880,365       1,479,902       5,261,615       (389,839 )     (229,055 )     7,002,988       75,590       7,078,578  

 

    Yen in millions  
   

 

 

Common

stock

   

 

Additional

paid-in

capital

   

 

 

Retained

earnings

   

Accumulated

other

comprehensive

income

   

 

Treasury

stock, at

cost

   

Sony Group

Corporation’s

stockholders’

equity

   

 

 

Noncontrolling

interests

   

 

 

 

Total equity

 
Balance at April 1, 2024     881,357       1,483,410       6,002,407       (376,063 )     (403,934 )     7,587,177       168,928       7,756,105  
Comprehensive income:                                                                
Net income                     231,638                       231,638       4,190       235,828  
Other comprehensive income, net of tax                             141,201               141,201       852       142,053  
Total comprehensive income                     231,638       141,201               372,839       5,042       377,881  
Transfer to retained earnings                     (25,338 )     25,338               -               -  
Transactions with stockholders and other:                                                                
Exercise of stock acquisition rights and other             (1 )     (642 )             2,417       1,774               1,774  
Stock-based compensation             5,504                               5,504               5,504  
Dividends declared                     (54,965 )                     (54,965 )     (2,076 )     (57,041 )
Purchase of treasury stock                                     (51,255 )     (51,255 )             (51,255 )
Reissuance of treasury stock             1                       3       4               4  
Cancellation of treasury stock             (839 )     (127,738 )             128,577       -               -  
Transactions with noncontrolling interests shareholders and other             (3,626 )                             (3,626 )     119,613       115,987  
Balance at June 30, 2024     881,357       1,484,449       6,025,362       (209,524 )     (324,192 )     7,857,452       291,507       8,148,959  

 

- 6 -


 

Condensed Quarterly Consolidated Statements of Cash Flows

 

    Yen in millions  
    Three months ended June 30  
    2023     2024  
Cash flows from operating activities:                
Income before income taxes     276,034       316,867  
Adjustments to reconcile income before income taxes to net cash used in operating activities:                
Depreciation and amortization, including amortization of contract costs     251,767       268,504  
Other operating (income) expense, net     (8,742 )     (9,820 )
Gain on securities, net (other than Financial Services segment)     (14,189 )     (31,406 )
Share of loss of investments accounted for using the equity method, net of dividends     2,275       5,122  
Changes in assets and liabilities:                
(Increase) decrease in trade receivables and contract assets     (11,342 )     165,792  
Increase in inventories     (283,152 )     (123,840 )
Increase in investments and advances in the Financial Services segment     (560,038 )     (633,041 )
Increase in content assets     (137,465 )     (257,588 )
Increase in trade payables     174,512       132,780  
Increase in insurance contract liabilities, net of insurance contract assets     561,732       341,752  
Increase in deposits from customers in the banking business     144,119       35,540  
Decrease in borrowings in the life insurance business and the banking business     (54,691 )     (41,126 )
Increase (decrease) in taxes payable other than income taxes, net     20,014       (3,893 )
Increase in other financial assets and other current assets     (34,283 )     (41,010 )
Decrease in other financial liabilities and other current liabilities     (130,303 )     (113,984 )
Income taxes paid     (121,147 )     (109,918 )
Other     (87,770 )     (27,016 )
Net cash used in operating activities     (12,669 )     (126,285 )

 

(Continued on the following page.)

 

- 7 -


 

Condensed Quarterly Consolidated Statements of Cash Flows (Continued)

 

    Yen in millions  
    Three months ended June 30  
    2023     2024  
Cash flows from investing activities:                
Payments for property, plant and equipment and other intangible assets     (130,501 )     (211,780 )
Proceeds from sales of property, plant and equipment and other intangible assets     6,235       5,619  
Payments for investments and advances (other than Financial Services segment)     (21,319 )     (15,747 )
Proceeds from sales or return of investments and collections of advances
(other than Financial Services segment)
    4,410       30,896  
Payments for purchases of businesses and other     (59,480 )     (169,794 )
Proceeds from sales of businesses     -       1,609  
Other     2,008       75  
Net cash used in investing activities     (198,647 )     (359,122 )
Cash flows from financing activities:                
Increase in short-term borrowings, net     294,039       24,983  
Proceeds from issuance of long-term debt     5,599       6,276  
Payments of long-term debt     (28,414 )     (30,091 )
Dividends paid     (48,955 )     (54,451 )
Payments for purchases of treasury stock     (10,150 )     (51,255 )
Capital contribution from non-controlling interests     -       109,527  
Other     1,748       (3,457 )
Net cash provided by financing activities     213,867       1,532  
Effect of exchange rate changes on cash and cash equivalents     48,648       53,860  
Net increase (decrease) in cash and cash equivalents     51,199       (430,015 )
Cash and cash equivalents at beginning of the fiscal year     1,480,900       1,907,113  
Cash and cash equivalents at end of the period     1,532,099       1,477,098  

 

- 8 -


 

Notes to Condensed Quarterly Consolidated Financial Statements

Business Segment Information

(Business Segments)

Segment sales and financial services revenue

 

    Yen in millions  
    Three months ended June 30  
    2023     2024     Change  
Sales and financial services revenue:                        
Game & Network Services -                        
Customers     755,003       844,288       89,285  
Intersegment     16,877       20,623       3,746  
Total     771,880       864,911       93,031  
Music -                        
Customers     355,756       435,726       79,970  
Intersegment     2,473       6,296       3,823  
Total     358,229       442,022       83,793  
Pictures -                        
Customers     320,178       336,556       16,378  
Intersegment     188       790       602  
Total     320,366       337,346       16,980  
Entertainment, Technology & Services -                        
Customers     563,292       594,179       30,887  
Intersegment     8,491       6,736       (1,755 )
Total     571,783       600,915       29,132  
Imaging & Sensing Solutions -                        
Customers     270,476       333,308       62,832  
Intersegment     22,264       20,172       (2,092 )
Total     292,740       353,480       60,740  
Financial Services -                        
Customers     679,109       446,288       (232,821 )
Intersegment     2,302       2,307       5  
Total     681,411       448,595       (232,816 )
All Other -                        
Customers     16,402       18,933       2,531  
Intersegment     3,091       2,157       (934 )
Total     19,493       21,090       1,597  
Corporate and elimination     (52,250 )     (56,710 )     (4,460 )
Consolidated total     2,963,652       3,011,649       47,997  

 

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with the Entertainment, Technology & Services (“ET&S”) segment. ET&S intersegment amounts primarily consist of transactions with the G&NS segment. Imaging & Sensing Solutions (“I&SS”) intersegment amounts primarily consist of transactions with the G&NS segment and the ET&S segment. Corporate and elimination includes certain brand and patent royalty income.

 

- 9 -


 

Segment profit (loss)

 

    Yen in millions  
    Three months ended June 30  
    2023     2024     Change  
Operating income (loss):                        
Game & Network Services     49,160       65,209       16,049  
Music     73,380       85,893       12,513  
Pictures     15,971       11,308       (4,663 )
Entertainment, Technology & Services     55,646       64,083       8,437  
Imaging & Sensing Solutions     12,731       36,647       23,916  
Financial Services     54,514       29,985       (24,529 )
All Other     2,475       1,275       (1,200 )
Total     263,877       294,400       30,523  
Corporate and elimination     (10,835 )     (15,294 )     (4,459 )
Consolidated operating income     253,042       279,106       26,064  

 

Operating income (loss) is sales and financial services revenue less costs and expenses, and includes the share of profit (loss) of investments accounted for using the equity method.

 

- 10 -


 

(Sales to Customers by Product Category)

 

The following table is a breakdown of sales and financial services revenue to external customers by product category for each segment. Sony management views each segment as a single operating segment.

 

    Yen in millions  
    Three months ended June 30  
Sales and financial services revenue:   2023     2024     Change  
Game & Network Services                        
Digital Software and Add-on Content     365,346       432,752       67,406  
Network Services     124,499       159,346       34,847  
Hardware and Others     265,158       252,190       (12,968 )
Total     755,003       844,288       89,285  
Music                        
Recorded Music - Streaming     164,887       196,663       31,776  
Recorded Music - Others     72,885       102,616       29,731  
Music Publishing     75,139       96,676       21,537  
Visual Media and Platform     42,845       39,771       (3,074 )
Total     355,756       435,726       79,970  
Pictures                        
Motion Pictures     125,504       133,034       7,530  
Television Productions     104,231       94,285       (9,946 )
Media Networks     90,443       109,237       18,794  
Total     320,178       336,556       16,378  
Entertainment, Technology & Services                        
Televisions     135,982       129,124       (6,858 )
Audio and Video     89,149       97,321       8,172  
Still and Video Cameras     161,874       192,453       30,579  
Mobile Communications     87,362       81,041       (6,321 )
Other     88,925       94,240       5,315  
Total     563,292       594,179       30,887  
Imaging & Sensing Solutions     270,476       333,308       62,832  
Financial Services     679,109       446,288       (232,821 )
All Other     16,402       18,933       2,531  
Corporate     3,436       2,371       (1,065 )
Consolidated total     2,963,652       3,011,649       47,997  

 

In the G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on content through the network; Network Services includes network services relating to game, video and music content; Hardware and Others includes home gaming consoles, packaged software, game software sold bundled with home gaming consoles, peripheral devices and first-party software for third-party platforms. In the Music segment, Recorded Music - Streaming includes the distribution of digital recorded music by streaming; Recorded Music - Others includes the distribution of recorded music by physical media and digital download as well as revenue derived from artists’ live performances and merchandising; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes the production and distribution of animation titles and game applications, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of live-action and animated motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television networks and direct-to-consumer streaming services worldwide. In the ET&S segment, Televisions includes LCD and OLED televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones and memory-based portable audio devices; Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Mobile Communications includes smartphones and an internet-related service business; Other includes display products such as projectors and medical equipment.

 

- 11 -


 

(Condensed Quarterly Financial Services Financial Statements)

 

The following schedules show unaudited condensed quarterly financial statements for the Financial Services segment and all other segments excluding Financial Services. These presentations are not in accordance with IFRS Accounting Standards, which is used by Sony to prepare its condensed quarterly consolidated financial statements. However, because the Financial Services segment is different in nature from Sony’s other segments, Sony believes that a comparative presentation may be useful in understanding and analyzing Sony’s condensed quarterly consolidated financial statements. Both financial statements include transactions between the Financial Services segment and Sony without the Financial Services segment. The figures shown in the respective presentations for the Financial Services segment and Sony without the Financial Services segment are prior to the elimination and/or offset of such transactions and deferred tax assets and deferred tax liabilities of each. The consolidated column is presented net of the elimination and/or offset of such intercompany balances and deferred tax assets and liabilities.

 

Condensed Quarterly Statements of Financial Position

 

    Yen in millions  
    Financial Services    

Sony without

Financial Services

    Consolidated  
    March 31,
2024
   

June 30,

2024

    March 31,
2024
   

June 30,

2024

    March 31,
2024
   

June 30,

2024

 
ASSETS                                                
Current assets:                                                
Cash and cash equivalents   ¥ 913,815     ¥ 630,317     ¥ 993,298     ¥ 846,781     ¥ 1,907,113     ¥ 1,477,098  
Investments and advances in the Financial Services segment     398,153       412,275       -       -       398,153       412,275  
Trade and other receivables, and contract assets     127,016       148,274       2,033,170       1,934,878       2,158,196       2,080,143  
Inventories     -       -       1,518,644       1,692,709       1,518,644       1,692,709  
Other financial assets     57,254       51,275       68,111       76,382       125,365       127,656  
Other current assets     50,487       64,444       625,539       709,232       669,335       765,856  
Total current assets     1,546,725       1,306,585       5,238,762       5,259,982       6,776,806       6,555,737  
Non-current assets:                                                
Investments accounted for using the equity method     4,905       4,943       418,839       424,185       423,744       429,128  
Investments and advances in the Financial Services segment     18,939,794       18,959,272       -       -       18,939,794       18,959,272  
Investments in Financial Services, at cost     -       -       550,483       550,483       -       -  
Property, plant and equipment     14,162       13,898       1,508,151       1,582,466       1,522,640       1,596,690  
Right-of-use assets     76,288       78,259       428,224       499,555       503,395       576,710  
Goodwill and intangible assets, including content assets     77,323       76,924       3,953,492       4,487,292       4,030,815       4,564,216  
Deferred tax assets     -       -       520,613       511,748       499,550       507,971  
Other financial assets     52,882       53,981       848,599       895,754       897,341       945,587  
Other non-current assets     165,049       165,158       421,258       450,075       513,405       542,498  
Total non-current assets     19,330,403       19,352,435       8,649,659       9,401,558       27,330,684       28,122,072  
Total assets   ¥ 20,877,128     ¥ 20,659,020     ¥ 13,888,421     ¥ 14,661,540     ¥ 34,107,490     ¥ 34,677,809  
                                                 
LIABILITIES AND EQUITY                                                
Current liabilities:                                                
Short-term borrowings   ¥ 1,802,337     ¥ 1,774,775     ¥ 227,979     ¥ 263,491     ¥ 2,030,316     ¥ 2,038,266  
Trade and other payables     61,153       78,329       2,005,112       2,177,276       2,064,905       2,252,860  
Deposits from customers in the banking business     3,670,567       3,690,958       -       -       3,670,567       3,690,958  
Income taxes payables     10,050       2,973       142,024       88,270       152,074       91,243  
Participation and residual liabilities in the Pictures segment     -       -       251,743       264,049       251,743       264,049  
Other financial liabilities     77,523       79,926       38,522       50,395       116,044       130,321  
Other current liabilities     209,555       216,797       1,704,158       1,690,500       1,906,396       1,899,211  
Total current liabilities     5,831,185       5,843,758       4,369,538       4,533,981       10,192,045       10,366,908  
Non-current liabilities:                                                
Long-term debt     703,106       691,697       1,355,011       1,443,147       2,058,117       2,134,844  
Defined benefit liabilities     39,284       39,221       208,299       213,133       247,583       252,354  
Deferred tax liabilities     36,368       18,599       165,877       179,880       166,424       179,817  
Insurance contract liabilities     12,931,995       12,776,766       -       -       12,931,995       12,776,766  
Participation and residual liabilities in the Pictures segment     -       -       206,081       220,842       206,081       220,842  
Other financial liabilities     214,414       228,456       175,263       189,688       386,761       415,208  
Other non-current liabilities     7,607       7,557       176,767       196,356       162,379       182,111  
Total non-current liabilities     13,932,774       13,762,296       2,287,298       2,443,046       16,159,340       16,161,942  
Total liabilities     19,763,959       19,606,054       6,656,836       6,977,027       26,351,385       26,528,850  
Equity:                                                
Stockholders’ equity of Financial Services     1,113,169       1,052,966       -       -       -       -  
Stockholders’ equity of Sony without Financial Services     -       -       7,062,657       7,393,006       -       -  
Sony Group Corporation’s stockholders’ equity     -       -       -       -       7,587,177       7,857,452  
Noncontrolling interests     -       -       168,928       291,507       168,928       291,507  
Total equity     1,113,169       1,052,966       7,231,585       7,684,513       7,756,105       8,148,959  
Total liabilities and equity   ¥ 20,877,128     ¥ 20,659,020     ¥ 13,888,421     ¥ 14,661,540     ¥ 34,107,490     ¥ 34,677,809  

 

- 12 -


 

Condensed Quarterly Statements of Income

 

    Yen in millions  
    Three months ended June 30  
    Financial Services    

Sony without

Financial Services

    Consolidated  
    2023     2024     2023     2024     2023     2024  
                                     
Sales   ¥ -     ¥ -     ¥ 2,285,789     ¥ 2,567,436     ¥ 2,284,543     ¥ 2,565,361  
Financial services revenue     681,411       448,595       -       -       679,109       446,288  
Total sales and financial services revenue     681,411       448,595       2,285,789       2,567,436       2,963,652       3,011,649  
                                                 
Cost of sales     -       -       1,627,562       1,786,603       1,624,510       1,784,389  
Selling, general and administrative     -       -       473,129       543,274       474,939       543,414  
Financial services expenses     626,846       418,561       -       -       624,543       416,254  
Other operating (income) expense, net     51       87       (8,793 )     (9,909 )     (8,742 )     (9,820 )
Total costs and expenses     626,897       418,648       2,091,898       2,319,968       2,715,250       2,734,237  
                                                 
Share of profit (loss) of investments accounted for using the equity method     -       38       4,640       1,656       4,640       1,694  
                                                 
Operating income     54,514       29,985       198,531       249,124       253,042       279,106  
                                                 
Financial income (expenses), net     -       -       73,028       37,761       22,992       37,761  
                                                 
Income before income taxes     54,514       29,985       271,559       286,885       276,034       316,867  
                                                 
Income taxes     15,905       8,500       42,187       72,670       58,092       81,039  
                                                 
Net income     38,609       21,485       229,372       214,215       217,942       235,828  
                                                 
Net income of Financial Services   ¥ 38,458     ¥ 21,485     ¥ -     ¥ -     ¥ -     ¥ -  
                                                 
Net income of Sony without Financial Services   ¥ -     ¥ -     ¥ 229,126     ¥ 210,025     ¥ -     ¥ -  
                                                 

Net income attributable to Sony Group Corporation’s stockholders

  ¥ -     ¥ -     ¥ -     ¥ -     ¥ 217,545     ¥ 231,638  
                                                 
Net income attributable to noncontrolling interests   ¥ 151     ¥ -     ¥ 246     ¥ 4,190     ¥ 397     ¥ 4,190  

 

- 13 -


 

Condensed Quarterly Statements of Cash Flows

 

    Yen in millions  
    Three months ended June 30  
    Financial Services    

Sony without

Financial Services

    Consolidated  
    2023     2024     2023     2024     2023     2024  
Cash flows from operating activities:                                                
Income (loss) before income taxes   ¥ 54,514     ¥ 29,985     ¥ 271,559     ¥ 286,885     ¥ 276,034     ¥ 316,867  
Adjustments to reconcile income (loss) before income taxes to net cash provided by (used in) operating activities:                                                
Depreciation and amortization, including amortization of contract costs     6,915       6,830       244,852       261,674       251,767       268,504  
Other operating (income) expense, net     51       87       (8,793 )     (9,909 )     (8,742 )     (9,820 )
(Gain) loss on securities, net (other than Financial Services segment)     -       -       (14,189 )     (31,406 )     (14,189 )     (31,406 )
Changes in assets and liabilities:                                                
(Increase) decrease in trade receivables and contract assets     (21,911 )     (21,258 )     13,650       186,030       (11,342 )     165,792  
(Increase) decrease in inventories     -       -       (283,152 )     (123,840 )     (283,152 )     (123,840 )
(Increase) decrease in investments and advances in the Financial Services segment     (560,038 )     (633,041 )     -       -       (560,038 )     (633,041 )
(Increase) decrease in content assets     -       -       (137,465 )     (257,588 )     (137,465 )     (257,588 )
Increase (decrease) in trade payables     (3,391 )     21,238       174,965       112,972       174,512       132,780  
Increase (decrease) in insurance contract liabilities, net of insurance contract assets     561,732       341,752       -       -       561,732       341,752  
Increase (decrease) in deposits from customers in the banking business     144,119       35,540       -       -       144,119       35,540  
Increase (decrease) in borrowings in the life insurance business and the banking business     (54,691 )     (41,126 )     -       -       (54,691 )     (41,126 )
Increase (decrease) in taxes payable other than income taxes, net     27,995       73       (7,981 )     (3,966 )     20,014       (3,893 )
Other     (37,230 )     (13,287 )     (334,115 )     (273,888 )     (371,228 )     (286,806 )
Net cash provided by (used in) operating activities     118,065       (273,207 )     (80,669 )     146,964       (12,669 )     (126,285 )
                                                 
Cash flows from investing activities:                                                
Payments for property, plant and equipment and other intangible assets     (5,602 )     (7,613 )     (124,929 )     (204,212 )     (130,501 )     (211,780 )
Payments for investments and advances (other than Financial Services segment)     -       -       (21,319 )     (15,747 )     (21,319 )     (15,747 )
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)     -       -       4,410       30,896       4,410       30,896  
Other     1       (182 )     (51,238 )     (162,309 )     (51,237 )     (162,491 )
Net cash provided by (used in) investing activities     (5,601 )     (7,795 )     (193,076 )     (351,372 )     (198,647 )     (359,122 )
                                                 
Cash flows from financing activities:                                                
Increase (decrease) in borrowings, net     (2,671 )     (2,614 )     273,895       3,783       271,224       1,168  
Dividends paid     (50,037 )     -       (48,955 )     (54,451 )     (48,955 )     (54,451 )
Other     (1 )     118       (8,399 )     54,699       (8,402 )     54,815  
Net cash provided by (used in) financing activities     (52,709 )     (2,496 )     216,541       4,031       213,867       1,532  
                                                 
Effect of exchange rate changes on cash and cash equivalents     -       -       48,648       53,860       48,648       53,860  
                                                 
Net increase (decrease) in cash and cash equivalents     59,755       (283,498 )     (8,556 )     (146,517 )     51,199       (430,015 )
Cash and cash equivalents at beginning of the fiscal year     756,493       913,815       724,407       993,298       1,480,900       1,907,113  
Cash and cash equivalents at end of the period   ¥ 816,248     ¥ 630,317     ¥ 715,851     ¥ 846,781     ¥ 1,532,099     ¥ 1,477,098  

 

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Going Concern Assumption

 

Not Applicable

 

Accounting Policy and Other Information

 

(Changes in accounting policies)

 

Sony newly adopted the following accounting standards from the fiscal year ending March 31, 2025:

 

Amendments to IAS 1 “Presentation of Financial Statements”

 

In January 2020, the International Accounting Standards Board (“IASB”) issued “Classification of Liabilities as Current or Non-current (Amendments to IAS 1).” The amendments clarify the right of a company to defer settlement of a liability, which is one of the existing requirements when classifying a liability to current or non-current. In addition, in October 2022, the IASB issued “A Non-current Liability with Covenants (Amendments to IAS 1).” The amendments require companies to disclose information about covenants in order for investors to understand the risk that such non-current debt with covenants could become repayable within twelve months. Both of these amendments were effective for Sony as of April 1, 2024. The adoption of these amendments has no material impact on Sony’s results of operations and financial position.

 

Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”

 

In May 2023, the IASB issued “Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7).” These amendments require companies to disclose information about supplier finance arrangements and were effective for Sony as of April 1, 2024. Since these amendments only affect disclosures, they have no impact on Sony’s results of operations and financial position.

 

(Net Income Attributable to Sony Group Corporation’s Stockholders and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)

 

    Yen in millions  
    Three months ended June 30  
    2023     2024  
Net income attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation     217,545       231,638  

 

    Thousands of shares  
    Three months ended June 30  
    2023     2024  
Weighted-average shares outstanding for basic EPS computation     1,234,242       1,219,770  
Effect of dilutive securities:                
Stock options     3,909       2,787  
Restricted stock units     212       249  
Weighted-average shares for diluted EPS computation     1,238,363       1,222,806  

 

(Segmentation)

 

The G&NS segment includes the network services businesses, the manufacture and sales of home gaming products and the production and sales of digital software and add-on content. The Music segment includes the Recorded Music, Music Publishing and Visual Media and Platform businesses. The Pictures segment includes the Motion Pictures, Television Productions and Media Networks businesses. The ET&S segment includes the Televisions business, the Audio and Video business, the Still and Video Cameras business, the smartphone business and the internet-related service business. The I&SS segment includes the image sensors business. The Financial Services segment primarily represents individual life insurance and non-life insurance businesses and the banking business in Japan. All Other consists of various operating activities, including the disc manufacturing and recording media businesses. Sony’s products and services are generally unique to a single operating segment.

 

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(Supplemental cash flow information)

 

During the three months ended June 30, 2024, Sony established a new joint venture in the Music segment with a third party partner, which acquired interests in companies that own certain music and other assets (the “target companies”), and Sony also acquired music assets directly from other rights holders. Sony consolidated the joint venture through Sony’s majority interest and reflected the consideration of 133,064 million yen for the acquisition of the interests in the target companies in cash flows from investing activities as “Payments for purchases of businesses and other.” Sony primarily recognized 116,289 million yen of content assets (music catalogs) and 11,501 million yen of other intangible assets from the acquisition of the interests in the target companies. The acquisition of the interests in the target companies is accounted for as an acquisition of a group of assets that does not constitute a business. The content assets (music catalogs) directly acquired from other rights holders were recorded in cash flows from operating activities as “Increase in content assets.”

 

(Stock Split)

 

Sony Group Corporation approved the implementation of a stock split of its common stock as follows at the meeting of its Board of Directors held on May 14, 2024.

 

1. Method of Stock Split 

 

Each share of Sony Group Corporation’s common stock owned by shareholders whose names appear on the register of shareholders as of the close of the record date of September 30, 2024, will be split into five (5) shares per share.

 

2. Number of shares to be increased by Stock Split

 

(i) Total number of issued shares before stock split: 1,248,619,589 shares  
(ii) Number of shares to be increased by stock split: 4,994,478,356 shares  
(iii) Total number of issued shares following stock split: 6,243,097,945 shares  
(iv) Total number of authorized shares following stock split: 18,000,000,000 shares  

 

* Total number of issued shares shown above is based on the total number of issued shares as of July 31, 2024, and may increase by the record date of the stock split due to the exercise of stock acquisition rights.

 

3. Schedule of Stock Split

 

(i) Public notice of record date: September 13, 2024  
(ii) Record date: September 30, 2024  
(iii) Effective date: October 1, 2024  

 

4. Partial Amendment to Articles of Incorporation

 

Sony Group Corporation plans to amend its Articles of Incorporation to increase the total number of shares authorized to be issued by Sony Group Corporation from 3.6 billion to 18.0 billion, in accordance with Article 184, Paragraph 2 of the Companies Act of Japan, effective on October 1, 2024, which is the effective date of the stock split.

 

5. Impact on per share information

 

Per share information assuming that the stock split was implemented at the beginning of the three months ended June 30, 2023, would be as follows.

 

    Yen  
    Three months ended June 30  
    2023     2024  
Basic net income attributable to Sony Group Corporation’s stockholders per share     35.25       37.98  
Diluted net income attributable to Sony Group Corporation’s stockholders per share     35.13       37.89  

 

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Overview of Operating Results

 

For the overview of operating results for the three months ended June 30, 2024, including the forecast for the fiscal year ending March 31, 2025, please refer to “Q1 FY2024 Consolidated Financial Results” (the presentation material for the earnings announcement) disclosed on the same date as this document on the TDnet of the TSE, the EDGAR system of the U.S. SEC and the website of Sony Group Corporation.

 

Cautionary Statement

 

Statements made in this material with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:

 

(i) Sony’s ability to maintain product quality and customer satisfaction with its products and services;
(ii) Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including image sensors, game and network platforms, smartphones and televisions, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing customer preferences;
(iii) Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms;
(iv) the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives;
(v) changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility;
(vi) Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity;
(vii) Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations;
(viii) the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending;
(ix) Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade;
(x) Sony’s ability to forecast demands, manage timely procurement and control inventories;
(xi) foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets, liabilities and operating results are denominated;
(xii) Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel;
(xiii) Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others;
(xiv) the impact of changes in interest rates and unfavorable conditions or developments (including market fluctuations or volatility) in the equity and bond markets on the revenue and operating income of the Financial Services segment;
(xv) shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services segment;
(xvi) risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events;
(xvii) the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and
(xviii) the outcome of pending and/or future legal and/or regulatory proceedings.

 

Risks and uncertainties also include the impact of any future events with material adverse impact. The continued impact of developments relating to the situations in Ukraine and Russia and in the Middle East could heighten many of the risks and uncertainties noted above. Important information regarding risks and uncertainties is also set forth in Sony’s most recent Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

 

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