6-K 1 tm2514462d2_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 May 2025

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/ Lin Tao
      (Signature)
  Lin Tao
  Chief Financial Officer

 

Date: May 14, 2025

 

List of Materials

 

Documents attached hereto:

 

Consolidated Financial Summary for the Fiscal Year Ended March 31, 2025

 

 

 

 

Consolidated Financial Summary for the Fiscal Year Ended March 31, 2025

 

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

  

May 14, 2025
Company name : Sony Group Corporation
Stock exchange listing : Tokyo Stock Exchange (“TSE”)
Securities code : 6758
URL : https://www.sony.com/en/SonyInfo/IR/
Representative : Hiroki Totoki, Representative Corporate Executive Officer
Contact person : Sadahiko Hayakawa, Senior Vice President
Telephone : +81-3-6748-2111
Scheduled date of annual general meeting of Shareholders : June 24, 2025
Scheduled date to commence dividend payment : June 2, 2025
Scheduled date to file Annual securities report : June 20, 2025
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 fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

 

(1) Consolidated operating results (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
Fiscal Year ended Yen in millions % Yen in millions % Yen in millions % Yen in millions % Yen in millions %
March 31, 2025 12,957,064 -0.5 1,407,163 16.4 1,473,726 16.2 1,159,887 18.3 1,141,600 17.6
March 31, 2024 13,020,768 18.6 1,208,831 -7.2 1,268,662 -0.5 980,494 -3.1 970,573 -3.5

 

Consolidated Total comprehensive
income

Basic earnings

per share*1

Diluted earnings

per share*1

 Return on equity
attributable to owners of
parent		 Ratio of income before
income taxes to total
assets		 Ratio of operating
income to sales
Fiscal Year ended Yen in millions % Yen Yen % % ％
March 31, 2025 959,230 -23.9 188.71 187.92 14.5 4.2 10.9
March 31, 2024 1,260,138 14.9 157.66 157.14 13.7 3.9 9.3

 

Reference: Share of profit (loss) of investments accounted for using the equity method 

 

For the fiscal year ended March 31, 2025: ¥(7,801) million

 

For the fiscal year ended March 31, 2024: ¥10,502 million

 

*1   Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for basic earnings per share and diluted earnings per share are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2024.

 

For all segments
excluding Financial
Services*2		 Sales Operating income Income before income taxes Net income attributable to Sony Group
Corporation’s stockholders
Fiscal Year ended Yen in millions % Yen in millions % Yen in millions % Yen in millions %
March 31, 2025 12,043,903 6.9 1,276,643 23.3 1,343,173 17.3 1,067,419 19.0
March 31, 2024 11,265,043 11.5 1,035,271 5.3 1,145,135 14.9 896,636 9.6

 

*2   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. For details about the preparation of the Financial Statements for all segments excluding Financial Services, please refer to page 17 of the Appendix.

 

For the results of Adjusted OIBDA (Operating Income Before Depreciation and Amortization) and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), please refer to “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 (the “SEC”) and the website of Sony Group Corporation.

 

 

 

 

(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

 Equity attributable to
owners of parent per
share*3
As of Yen in millions Yen in millions Yen in millions % Yen
March 31, 2025 35,293,173 8,510,151 8,179,745 23.2 1,357.63
March 31, 2024 34,107,490 7,756,105 7,587,177 22.2 1,242.32

 

*3   Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for equity attributable to owners of parent per share are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2024.

 

(3) Consolidated cash flows

 

  Cash flows from operating
activities		 Cash flows from investing
activities		 Cash flows from financing
activities		 Cash and cash equivalents at
end of the fiscal year
Fiscal year ended Yen in millions Yen in millions Yen in millions Yen in millions
March 31, 2025 2,321,675 (930,120) (298,243) 2,980,956
March 31, 2024 1,373,213 (818,886) (210,709) 1,907,113

 

2. Dividends

 

  Annual dividends per share Total cash dividends
(Total)		 Payout ratio
(Consolidated)

Ratio of dividends
to equity
attributable to
owners of parent

(Consolidated)

 

First

quarter-end

Second

quarter-end

Third

quarter-end

 Year-end Total
  Yen Yen Yen Yen Yen Yen in millions % %

Fiscal year ended

March 31, 2024

 - 40.00 - 45.00 85.00 104,271 10.8 1.5

Fiscal year ended

March 31, 2025*4

 - 50.00 - 10.00 - 120,597 10.6 1.5

Fiscal year ending

March 31, 2026

(Forecast)

 - 12.50 - 12.50 25.00   -  

 

Note:Sony Group Corporation plans to execute a partial spin-off (the “Spin-off”) of Sony Financial Group Inc. (“SFGI”), a wholly-owned subsidiary of Sony Group Corporation, which operates the Financial Services business, in October 2025. However, the above dividend forecast for the fiscal year ending March 31, 2026 does not include the dividends in kind of the shares of SFGI from the Spin-off.

 

*4   Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above year-end dividend per share for the fiscal year ended March 31, 2025 is based on a number of shares taking into account the stock split. The total annual dividend per share for the fiscal year ended 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 for the fiscal year ended March 31, 2025 would be 50 yen and the total annual dividend per share for the fiscal year ended March 31, 2025 would be 100 yen.

 

3. Forecast for Consolidated Results for the Fiscal Year Ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

 

(Percentages indicate year-on-year changes.)

 

Fiscal year ending March 31, 2026 Sales Operating income Income before income taxes Net income attributable to Sony
Group Corporation’s stockholders
  Yen in millions % Yen in millions % Yen in millions % Yen in millions %
Continuing operations 11,700,000 -2.9 1,280,000 0.3 1,280,000 -4.7 930,000 -12.9

 

Notes:

 

1      As a result of the resolution of the Board of Directors of Sony Group Corporation on May 14, 2025 on the plan for the execution of the above-mentioned Spin-off, the Financial Services business will be classified as a discontinued operation and presented separately from continuing operations, comprised of Sony’s businesses excluding the Financial Services business, from the first quarter of the fiscal year ending March 31, 2026, in accordance with IFRS Accounting Standards. Therefore, the above results forecast represents the forecast for continuing operations. Although the results for the fiscal year ended March 31, 2025, the comparative period, will be restated to conform to the classification of continuing operations and a discontinued operation in accordance with IFRS Accounting Standards from the first quarter of the fiscal year ending March 31, 2026, the results on such restated basis are currently undetermined. Therefore, the above percentages indicating year-on-year changes reflect comparisons with the results of all segments excluding Financial Services for the fiscal year ended March 31, 2025. The difference in results of continuing operations and results of all segments excluding Financial Services is the amount equivalent to intersegment transactions between the Financial Services segment and other segments, and such difference is expected to be immaterial. Sony Group Corporation has not included the share of profit or loss of investments accounted for using the equity method in SFGI after the Spin-off in the above results forecast, and does not disclose forecasts for the discontinued operation or for the consolidated results for the fiscal year ending March 31, 2026. Please refer to “Notes to Consolidated Financial Statements - Subsequent Events” for the details of the accounting treatments in connection with the Spin-off.

 

 

 

 

2      The estimated impact from the series of changes in U.S. tariff policy at this time is reflected in the above forecasts for operating income, income before income taxes and net income attributable to Sony Group Corporation’s stockholders. The estimated impact is calculated based on the assumptions that the reciprocal tariff rates announced on April 2, 2025 will be applied after the end of the temporary suspension announced on April 9, and that other tariffs will remain unchanged from the end of April. The impact of the partial removal and temporary suspension of the additional and reciprocal tariffs on China by the U.S. announced on May 12 is not included in the assumptions used for estimating the relevant impact. The actual impact could vary significantly from this estimation if future tariff policy or other factors are changed.

 

Notes

 

(1)Significant changes in scope of consolidation during the fiscal year : 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 fiscal year (including treasury stock)

 

As of March 31, 2025 6,149,810,645 shares
As of March 31, 2024 6,306,159,445 shares

 

(ii)Number of shares of treasury stock at the end of the fiscal year

 

As of March 31, 2025 124,806,850 shares
As of March 31, 2024 198,915,015 shares

 

(iii)Average number of shares outstanding during the fiscal year

 

Fiscal Year ended March 31, 2025 6,049,652,046 shares
Fiscal Year ended March 31, 2024 6,156,210,073 shares

 

Notes:

 

1Please refer to “Notes to Consolidated Financial Statements - Accounting Policy and Other Information (Net Income Attributable to Sony Group Corporation’s Stockholders per Share (“EPS”) 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.

 

2Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for the number of issued shares (common stock) are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2024.

 

 

 

 

[Reference] Overview of non-consolidated financial results*5

 

1. Non-consolidated financial results for the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

 

(1) Non-consolidated operating results (Percentages indicate year-on-year changes.)

 

  Net sales Operating profit Ordinary profit Profit
Fiscal year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen %
March 31, 2025 480,922 1.6 320,175 8.7 322,865 6.3 361,678 14.3
March 31, 2024 473,255 -3.6 294,675 -0.8 303,611 -2.9 316,396 -0.2

 

  Basic earnings per share Diluted earnings per share
Fiscal year ended Yen Yen
March 31, 2025 59.78 59.53
March 31, 2024 51.39 51.22

 

Note:Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for basic earnings per share and diluted earnings per share are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2024.

 

(2) Non-consolidated financial position

 

  Total assets Net assets Equity-to-asset ratio Net assets per share
As of Millions of yen Millions of yen % Yen
March 31, 2025 5,281,630 3,295,554 61.7 540.61
March 31, 2024 4,965,082 3,289,233 65.5 532.34

 

Reference: Equity

 

As of March 31, 2025: ¥3,257,169 million

As of March 31, 2024: ¥3,251,114 million

 

Note:Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for net assets per share are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2024.

 

*5 The Sony Group Corporation’s non-consolidated financial results are prepared in accordance with Japanese generally accepted accounting principles.

 

*The Consolidated Financial Summary is exempt from audit conducted by certified public accountants or an audit firm.

 

*Proper use of earnings forecasts, and other special matters:
   
  Please refer to “Cautionary Statement” on page 25 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

 

Consolidated Financial Statements (Unaudited) 2
   
Consolidated Statements of Financial Position 2
Consolidated Statements of Income (Fiscal Year ended March 31) 4
Consolidated Statements of Comprehensive Income (Fiscal Year ended March 31) 5
Consolidated Statements of Income (Three months ended March 31) 6
Consolidated Statements of Comprehensive Income (Three months ended March 31) 7
Consolidated Statements of Changes in Stockholders’ Equity (Fiscal Year ended March 31) 8
Consolidated Statements of Cash Flows (Fiscal Year ended March 31) 9
Notes to Consolidated Financial Statements 11
-      Business Segment Information 11
-      Going Concern Assumption 21
-      Accounting Policy and Other Information 21
-      Subsequent Events 24
   
Overview of Operating Results 25
   
Basic Views on Selection of Accounting Standards 25
   
Cautionary Statement 25

 

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)

Consolidated Financial Statements

Consolidated Statements of Financial Position

 

   Yen in millions 
   March 31, 2024   March 31, 2025  

Change from
March 31, 2024

 
ASSETS            
Current assets:               
Cash and cash equivalents   1,907,113    2,980,956    1,073,843 
Investments and advances in the Financial Services segment   398,153    453,677    55,524 
Trade and other receivables, and contract assets   2,158,196    1,943,184    (215,012)
Inventories   1,518,644    1,310,770    (207,874)
Other financial assets   125,365    145,192    19,827 
Other current assets   669,335    621,209    (48,126)
Total current assets   6,776,806    7,454,988    678,182 
Non-current assets:               
Investments accounted for using the equity method   423,744    347,718    (76,026)
Investments and advances in the Financial Services segment   18,939,794    18,736,298    (203,496)
Property, plant and equipment   1,522,640    1,513,660    (8,980)
Right-of-use assets   503,395    521,685    18,290 
Goodwill   1,487,100    1,508,721    21,621 
Content assets   1,928,113    2,249,048    320,935 
Other intangible assets   615,602    671,212    55,610 
Deferred tax assets   499,550    559,284    59,734 
Other financial assets   897,341    1,164,630    267,289 
Other non-current assets   513,405    565,929    52,524 
Total non-current assets   27,330,684    27,838,185    507,501 
Total assets   34,107,490    35,293,173    1,185,683 

 

(Continued on the following page.)

 

- 2 -

 

 

Consolidated Statements of Financial Position (Continued)

 

   Yen in millions 
   March 31, 2024   March 31, 2025  

Change from

March 31, 2024

 
LIABILITIES            
Current liabilities:               
Short-term borrowings   1,812,605    1,843,959    31,354 
Current portion of long-term debt   217,711    287,445    69,734 
Trade and other payables   2,064,905    2,100,144    35,239 
Deposits from customers in the banking business   3,670,567    3,981,193    310,626 
Income taxes payables   152,074    89,485    (62,589)
Participation and residual liabilities in the Pictures segment   251,743    236,752    (14,991)
Other financial liabilities   116,044    110,689    (5,355)
Other current liabilities   1,906,396    2,039,121    132,725 
Total current liabilities   10,192,045    10,688,788    496,743 
Non-current liabilities:               
Long-term debt   2,058,117    2,066,842    8,725 
Defined benefit liabilities   247,583    236,941    (10,642)
Deferred tax liabilities   166,424    175,228    8,804 
Insurance contract liabilities   12,931,995    12,689,306    (242,689)
Participation and residual liabilities in the Pictures segment   206,081    188,919    (17,162)
Other financial liabilities   386,761    574,351    187,590 
Other non-current liabilities   162,379    162,647    268 
Total non-current liabilities   16,159,340    16,094,234    (65,106)
Total liabilities   26,351,385    26,783,022    431,637 
EQUITY               
Sony Group Corporation’s stockholders’ equity:               
Common stock   881,357    881,357    - 
Additional paid-in capital   1,483,410    1,483,527    117 
Retained earnings   6,002,407    6,678,168    675,761 
Accumulated other comprehensive income   (376,063)   (566,447)   (190,384)
Treasury stock, at cost   (403,934)   (296,860)   107,074 
Equity attributable to Sony Group Corporation’s stockholders   7,587,177    8,179,745    592,568 
Noncontrolling interests   168,928    330,406    161,478 
Total equity   7,756,105    8,510,151    754,046 
Total liabilities and equity   34,107,490    35,293,173    1,185,683 

 

- 3 -

 

 

Consolidated Statements of Income

 

   Yen in millions 
   Fiscal year ended March 31 
   2024   2025   Change 
Sales and financial services revenue:               
Sales   11,260,037    12,034,917    774,880 
Financial services revenue               
Insurance revenue   586,115    622,959    36,844 
Other financial services revenue   1,174,616    299,188    (875,428)
Total financial services revenue   1,760,731    922,147    (838,584)
Total sales and financial services revenue   13,020,768    12,957,064    (63,704)
Costs and expenses:               
Cost of sales   8,089,317    8,504,810    415,493 
Selling, general and administrative   2,156,156    2,256,829    100,673 
Financial services expenses               
Insurance service expenses   407,206    452,932    45,726 
Insurance finance expenses (income)   1,029,700    153,561    (876,139)
Other financial services expenses   169,464    183,209    13,745 
Total financial services expenses   1,606,370    789,702    (816,668)
Other operating (income) expense, net   (29,404)   (9,241)   20,163 
Total costs and expenses   11,822,439    11,542,100    (280,339)
Share of profit (loss) of investments accounted for using the equity method   10,502    (7,801)   (18,303)
Operating income   1,208,831    1,407,163    198,332 
Financial income   125,597    139,024    13,427 
Financial expenses   65,766    72,461    6,695 
Income before income taxes   1,268,662    1,473,726    205,064 
Income taxes   288,168    313,839    25,671 
Net income   980,494    1,159,887    179,393 
                
Net income attributable to               
Sony Group Corporation’s stockholders   970,573    1,141,600    171,027 
Noncontrolling interests   9,921    18,287    8,366 

 

   Yen 
   Fiscal year ended March 31 
   2024   2025   Change 
Per share data:            
Net income attributable to Sony Group Corporation’s stockholders               
- Basic   157.66    188.71    31.05 
- Diluted   157.14    187.92    30.78 

 

- 4 -

 

 

Consolidated Statements of Comprehensive Income

 

   Yen in millions 
   Fiscal year ended March 31 
   2024   2025   Change 
Net income   980,494    1,159,887    179,393 
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   (53,814)   (12,531)   41,283 
Remeasurement of defined benefit pension plans   25,875    10,583    (15,292)
Share of other comprehensive income of investments accounted for using the equity method   613    (911)   (1,524)
Items that may be reclassified subsequently to profit or loss               
Changes in debt instruments measured at fair value through other comprehensive income   (704,636)   (681,515)   23,121 
Cash flow hedges   1,352    (4,295)   (5,647)
Insurance finance income (expenses)   563,396    568,291    4,895 
Exchange differences on translating foreign operations   442,406    (79,266)   (521,672)
Share of other comprehensive income of investments accounted for using the equity method   4,735    (337)   (5,072)
Other   (283)   (676)   (393)
Total other comprehensive income, net of tax   279,644    (200,657)   (480,301)
Comprehensive income   1,260,138    959,230    (300,908)
                
Comprehensive income attributable to               
Sony Group Corporation’s stockholders   1,247,301    941,030    (306,271)
Noncontrolling interests   12,837    18,200    5,363 

 

- 5 -

 

 

Consolidated Statements of Income

 

   Yen in millions 
   Three months ended March 31 
   2024   2025   Change 
Sales and financial services revenue:               
Sales   2,810,390    2,804,938    (5,452)
Financial services revenue               
Insurance revenue   152,887    155,151    2,264 
Other financial services revenue   517,689    (329,845)   (847,534)
Total financial services revenue   670,576    (174,694)   (845,270)
Total sales and financial services revenue   3,480,966    2,630,244    (850,722)
Costs and expenses:               
Cost of sales   1,992,922    1,980,206    (12,716)
Selling, general and administrative   607,776    599,224    (8,552)
Financial services expenses               
Insurance service expenses   115,245    119,917    4,672 
Insurance finance expenses (income)   501,625    (337,086)   (838,711)
Other financial services expenses   47,145    52,268    5,123 
Total financial services expenses   664,015    (164,901)   (828,916)
Other operating (income) expense, net   (13,591)   9,337    22,928 
Total costs and expenses   3,251,122    2,423,866    (827,256)
Share of profit (loss) of investments accounted for using the equity method   (402)   (2,729)   (2,327)
Operating income   229,442    203,649    (25,793)
Financial income   66,420    37,033    (29,387)
Financial expenses   19,384    28,123    8,739 
Income before income taxes   276,478    212,559    (63,919)
Income taxes   82,453    3,897    (78,556)
Net income   194,025    208,662    14,637 
                
Net income attributable to               
Sony Group Corporation’s stockholders   189,005    197,727    8,722 
Noncontrolling interests   5,020    10,935    5,915 

 

   Yen 
   Three months ended March 31 
   2024   2025   Change 
Per share data:            
Net income attributable to Sony Group Corporation’s stockholders               
- Basic   30.82    32.81    1.99 
- Diluted   30.72    32.63    1.91 

 

- 6 -

 

 

Consolidated Statements of Comprehensive Income

 

   Yen in millions 
   Three months ended March 31 
   2024   2025   Change 
Net income   194,025    208,662    14,637 
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   (20,538)   4,436    24,974 
Remeasurement of defined benefit pension plans   26,905    11,463    (15,442)
Share of other comprehensive income of investments accounted for using the equity method   423    90    (333)
Items that may be reclassified subsequently to profit or loss               
Changes in debt instruments measured at fair value through other comprehensive income   (181,677)   (143,533)   38,144 
Cash flow hedges   (2,171)   (4,478)   (2,307)
Insurance finance income (expenses)   151,510    110,288    (41,222)
Exchange differences on translating foreign operations   234,729    (170,834)   (405,563)
Share of other comprehensive income of investments accounted for using the equity method   2,465    (2,641)   (5,106)
Other   (77)   (238)   (161)
Total other comprehensive income, net of tax   211,569    (195,447)   (407,016)
Comprehensive income   405,594    13,215    (392,379)
                
Comprehensive income attributable to               
Sony Group Corporation’s stockholders   399,932    3,961    (395,971)
Noncontrolling interests   5,662    9,254    3,592 

 

- 7 -

 

 

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             970,573              970,573    9,921    980,494 
Other comprehensive income, net of tax                  276,728         276,728    2,916    279,644 
Total comprehensive income             970,573    276,728         1,247,301    12,837    1,260,138 
Transfer to retained earnings             38,221    (38,221)        -         - 
Transactions with stockholders and other:                                        
Stock issued under stock-based compensation transactions   992    (1,939)   (144)        19,257    18,166         18,166 
Compensation expenses related to stock-based compensation transactions        13,956                   13,956         13,956 
Dividends declared             (98,685)             (98,685)   (5,786)   (104,471)
Purchase of treasury stock                       (202,974)   (202,974)        (202,974)
Reissuance of treasury stock        1,786              3,290    5,076         5,076 
Transactions with noncontrolling interests shareholders and other        5,800                   5,800    103,264    109,064 
Balance at March 31, 2024   881,357    1,483,410    6,002,407    (376,063)   (403,934)   7,587,177    168,928    7,756,105 

 

   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             1,141,600              1,141,600    18,287    1,159,887 
Other comprehensive income, net of tax                  (200,570)        (200,570)   (87)   (200,657)
Total comprehensive income             1,141,600    (200,570)        941,030    18,200    959,230 
Transfer to retained earnings             (10,186)   10,186         -         - 
Transactions with stockholders and other:                                        
Stock issued under stock-based compensation transactions        3,008    (1,179)        49,608    51,437         51,437 
Compensation expenses related to stock-based compensation transactions        8,575                   8,575         8,575 
Dividends declared             (115,312)             (115,312)   (7,704)   (123,016)
Purchase of treasury stock                       (285,548)   (285,548)        (285,548)
Reissuance of treasury stock        1              4    5         5 
Cancellation of treasury stock        (3,848)   (339,162)        343,010    -         - 
Transactions with noncontrolling interests shareholders and other        (7,619)                  (7,619)   150,982    143,363 
Balance at March 31, 2025   881,357    1,483,527    6,678,168    (566,447)   (296,860)   8,179,745    330,406    8,510,151 

 

- 8 -

 

 

Consolidated Statements of Cash Flows

 

   Yen in millions 
   Fiscal year ended March 31 
   2024   2025 
Cash flows from operating activities:          
Income before income taxes   1,268,662    1,473,726 
Adjustments to reconcile income before income taxes to net cash provided by operating activities:          
Depreciation and amortization, including amortization of contract costs   1,144,981    1,152,987 
Other operating (income) expense, net   (29,404)   (9,241)
Gain on securities, net (other than Financial Services segment)   (73,166)   (75,742)
Share of (profit) loss of investments accounted for using the equity method, net of dividends   (715)   20,741 
Changes in assets and liabilities:          
(Increase) decrease in trade receivables and contract assets   (243,646)   228,623 
Decrease in inventories   75,641    199,916 
Increase in investments and advances in the Financial Services segment   (1,748,913)   (824,443)
Increase in content assets   (486,183)   (683,388)
Increase in trade payables   9,188    136,952 
Increase in insurance contract liabilities, net of insurance contract assets   1,370,580    573,749 
Increase in deposits from customers in the banking business   536,688    401,014 
Increase (decrease) in borrowings in the life insurance business and the banking business   (41,516)   66,783 
Decrease in taxes payable other than income taxes, net   (22,491)   (15,461)
Increase in other financial assets and other current assets   (31,821)   (81,081)
Increase in other financial liabilities and other current liabilities   19,562    32,768 
Income taxes paid   (293,997)   (300,529)
Other   (80,237)   24,301 
Net cash provided by operating activities   1,373,213    2,321,675 

 

(Continued on the following page.)

 

- 9 -

 

 

Consolidated Statements of Cash Flows (Continued)

  

   Yen in millions 
   Fiscal year ended March 31 
   2024   2025 
Cash flows from investing activities:          
Payments for property, plant and equipment and other intangible assets   (623,946)   (647,527)
Proceeds from sales of property, plant and equipment and other intangible assets   11,571    15,486 
Payments for investments and advances (other than Financial Services segment)   (95,506)   (98,536)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)   92,679    46,540 
Payments for purchases of businesses and other   (199,255)   (294,417)
Other   (4,429)   48,334 
Net cash used in investing activities   (818,886)   (930,120)
Cash flows from financing activities:          
Decrease in short-term borrowings, net   (18,370)   (28,585)
Proceeds from issuance of long-term debt   225,176    139,298 
Payments of long-term debt   (128,150)   (181,085)
Dividends paid   (98,620)   (115,253)
Payments for purchases of treasury stock   (202,974)   (285,548)
Capital contribution from non-controlling interests   -    150,804 
Other   12,229    22,126 
Net cash used in financing activities   (210,709)   (298,243)
Effect of exchange rate changes on cash and cash equivalents   82,595    (19,469)
Net increase in cash and cash equivalents   426,213    1,073,843 
Cash and cash equivalents at beginning of the fiscal year   1,480,900    1,907,113 
Cash and cash equivalents at end of the fiscal year   1,907,113    2,980,956 

 

- 10 -

 

 

Notes to Consolidated Financial Statements

Business Segment Information

(Business Segments)

Segment sales and financial services revenue

 

   Yen in millions 
   Fiscal year ended March 31 
   2024   2025   Change 
Sales and financial services revenue:               
Game & Network Services -               
Customers   4,172,994    4,543,571    370,577 
Intersegment   94,740    126,473    31,733 
Total   4,267,734    4,670,044    402,310 
Music -               
Customers   1,594,955    1,820,263    225,308 
Intersegment   24,003    22,341    (1,662)
Total   1,618,958    1,842,604    223,646 
Pictures -               
Customers   1,486,717    1,498,534    11,817 
Intersegment   6,333    7,410    1,077 
Total   1,493,050    1,505,944    12,894 
Entertainment, Technology & Services -               
Customers   2,414,946    2,362,838    (52,108)
Intersegment   38,772    46,437    7,665 
Total   2,453,718    2,409,275    (44,443)
Imaging & Sensing Solutions -               
Customers   1,503,906    1,712,534    208,628 
Intersegment   98,832    86,471    (12,361)
Total   1,602,738    1,799,005    196,267 
Financial Services -               
Customers   1,760,731    922,147    (838,584)
Intersegment   9,223    9,253    30 
Total   1,769,954    931,400    (838,554)
All Other -               
Customers   75,784    82,477    6,693 
Intersegment   13,586    13,856    270 
Total   89,370    96,333    6,963 
Corporate and elimination   (274,754)   (297,541)   (22,787)
Consolidated total   13,020,768    12,957,064    (63,704)

 

Note:

 

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.

 

- 11 -

 

Segment profit (loss)

 

   Yen in millions 
   Fiscal year ended March 31 
   2024   2025   Change 
Operating income (loss):               
Game & Network Services   290,184    414,819    124,635 
Music   301,662    357,255    55,593 
Pictures   117,702    117,284    (418)
Entertainment, Technology & Services   187,399    190,926    3,527 
Imaging & Sensing Solutions   193,541    261,147    67,606 
Financial Services   173,576    130,528    (43,048)
All Other   1,600    (17,996)   (19,596)
Total   1,265,664    1,453,963    188,299 
Corporate and elimination   (56,833)   (46,800)   10,033 
Consolidated operating income   1,208,831    1,407,163    198,332 

 

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.

 

- 12 -

 

 

Segment sales and financial services revenue

 

   Yen in millions 
   Three months ended March 31 
   2024   2025   Change 
Sales and financial services revenue:               
Game & Network Services -               
Customers   1,058,968    1,045,209    (13,759)
Intersegment   38,363    6,064    (32,299)
Total   1,097,331    1,051,273    (46,058)
Music -               
Customers   422,188    463,569    41,381 
Intersegment   7,721    7,122    (599)
Total   429,909    470,691    40,782 
Pictures -               
Customers   404,059    411,402    7,343 
Intersegment   2,662    3,176    514 
Total   406,721    414,578    7,857 
Entertainment, Technology & Services -               
Customers   522,877    469,577    (53,300)
Intersegment   9,780    14,505    4,725 
Total   532,657    484,082    (48,575)
Imaging & Sensing Solutions -               
Customers   381,260    388,242    6,982 
Intersegment   17,264    20,798    3,534 
Total   398,524    409,040    10,516 
Financial Services -               
Customers   670,576    (174,694)   (845,270)
Intersegment   2,309    2,324    15 
Total   672,885    (172,370)   (845,255)
All Other -               
Customers   18,772    22,188    3,416 
Intersegment   2,985    3,391    406 
Total   21,757    25,579    3,822 
Corporate and elimination   (78,818)   (52,629)   26,189 
Consolidated total   3,480,966    2,630,244    (850,722)

 

Note:

 

G&NS intersegment amounts primarily consist of transactions with the ET&S segment. ET&S intersegment amounts primarily consist of transactions with the G&NS segment. 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.

 

- 13 -

 

 

Segment profit (loss)

  

   Yen in millions 
   Three months ended March 31 
   2024   2025   Change 
Operating income (loss):               
Game & Network Services   105,983    92,698    (13,285)
Music   71,199    83,578    12,379 
Pictures   30,667    53,476    22,809 
Entertainment, Technology & Services   (6,444)   (20,417)   (13,973)
Imaging & Sensing Solutions   34,734    34,543    (191)
Financial Services   26,107    (11,555)   (37,662)
All Other   (5,540)   (9,759)   (4,219)
Total   256,706    222,564    (34,142)
Corporate and elimination   (27,264)   (18,915)   8,349 
Consolidated operating income   229,442    203,649    (25,793)

 

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.

 

- 14 -

 

 

(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 
   Fiscal year ended March 31 
   2024   2025   Change 
Sales and financial services revenue:               
Game & Network Services               
Digital Software and Add-on Content   1,934,586    2,290,498    355,912 
Network Services   545,537    669,873    124,336 
Hardware and Others   1,692,871    1,583,200    (109,671)
Total   4,172,994    4,543,571    370,577 
Music               
Recorded Music - Streaming   709,453    788,772    79,319 
Recorded Music - Others   356,646    407,260    50,614 
Music Publishing   326,727    379,812    53,085 
Visual Media and Platform   202,129    244,419    42,290 
Total   1,594,955    1,820,263    225,308 
Pictures               
Motion Pictures   542,044    610,313    68,269 
Television Productions   551,035    459,281    (91,754)
Media Networks   393,638    428,940    35,302 
Total   1,486,717    1,498,534    11,817 
Entertainment, Technology & Services               
Televisions   624,264    564,154    (60,110)
Audio and Video   412,067    391,664    (20,403)
Still and Video Cameras   643,429    665,144    21,715 
Mobile Communications   299,905    279,834    (20,071)
Other   435,281    462,042    26,761 
Total   2,414,946    2,362,838    (52,108)
Imaging & Sensing Solutions   1,503,906    1,712,534    208,628 
Financial Services   1,760,731    922,147    (838,584)
All Other   75,784    82,477    6,693 
Corporate   10,735    14,700    3,965 
Consolidated total   13,020,768    12,957,064    (63,704)

 

- 15 -

 

 

   Yen in millions 
   Three months ended March 31 
   2024   2025   Change 
Sales and financial services revenue:               
Game & Network Services               
Digital Software and Add-on Content   514,163    580,501    66,338 
Network Services   149,969    172,833    22,864 
Hardware and Others   394,836    291,875    (102,961)
Total   1,058,968    1,045,209    (13,759)
Music               
Recorded Music - Streaming   184,188    193,040    8,852 
Recorded Music - Others   103,859    98,138    (5,721)
Music Publishing   82,779    96,280    13,501 
Visual Media and Platform   51,362    76,111    24,749 
Total   422,188    463,569    41,381 
Pictures               
Motion Pictures   156,890    157,983    1,093 
Television Productions   142,575    143,183    608 
Media Networks   104,594    110,236    5,642 
Total   404,059    411,402    7,343 
Entertainment, Technology & Services               
Televisions   116,313    90,440    (25,873)
Audio and Video   79,995    67,819    (12,176)
Still and Video Cameras   133,743    128,241    (5,502)
Mobile Communications   63,261    59,430    (3,831)
Other   129,565    123,647    (5,918)
Total   522,877    469,577    (53,300)
Imaging & Sensing Solutions   381,260    388,242    6,982 
Financial Services   670,576    (174,694)   (845,270)
All Other   18,772    22,188    3,416 
Corporate   2,266    4,751    2,485 
Consolidated total   3,480,966    2,630,244    (850,722)

 

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.

 

- 16 -

 

 

(Condensed Financial Services Separate Financial Statements)

 

The following schedules show unaudited condensed 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 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 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 Statements of Financial Position

 

   Yen in millions 
   Financial Services  

Sony without

Financial Services

   Consolidated 
   March 31, 2024   March 31, 2025   March 31, 2024   March 31, 2025   March 31, 2024   March 31, 2025 
ASSETS                              
Current assets:                              
Cash and cash equivalents  ¥913,815   ¥1,216,277   ¥993,298   ¥1,764,679   ¥1,907,113   ¥2,980,956 
Investments and advances in the Financial Services segment   398,153    453,677    -    -    398,153    453,677 
Trade and other receivables, and contract assets   127,016    126,052    2,033,170    1,820,688    2,158,196    1,943,184 
Inventories   -    -    1,518,644    1,310,770    1,518,644    1,310,770 
Other financial assets   57,254    117,719    68,111    27,473    125,365    145,192 
Other current assets   50,487    25,882    625,539    604,486    669,335    621,209 
    Total current assets   1,546,725    1,939,607    5,238,762    5,528,096    6,776,806    7,454,988 
Non-current assets:                              
Investments accounted for using the equity method   4,905    3,171    418,839    344,547    423,744    347,718 
Investments and advances in the Financial Services segment   18,939,794    18,736,298    -    -    18,939,794    18,736,298 
Investments in Financial Services, at cost   -    -    550,483    550,483    -    - 
Property, plant and equipment   14,162    13,335    1,508,151    1,499,998    1,522,640    1,513,660 
Right-of-use assets   76,288    76,291    428,224    446,455    503,395    521,685 
Goodwill and intangible assets, including content assets   77,323    86,601    3,953,492    4,342,380    4,030,815    4,428,981 
Deferred tax assets   -    3,149    520,613    546,501    499,550    559,284 
Other financial assets   52,882    60,496    848,599    1,108,426    897,341    1,164,630 
Other non-current assets   165,049    153,880    421,258    484,529    513,405    565,929 
    Total non-current assets   19,330,403    19,133,221    8,649,659    9,323,319    27,330,684    27,838,185 
Total assets  ¥20,877,128   ¥21,072,828   ¥13,888,421   ¥14,851,415   ¥34,107,490   ¥35,293,173 
                               
LIABILITIES AND EQUITY                              
Current liabilities:                              
Short-term borrowings  ¥1,802,337   ¥1,872,486   ¥227,979   ¥258,918   ¥2,030,316   ¥2,131,404 
Trade and other payables   61,153    93,010    2,005,112    2,010,444    2,064,905    2,100,144 
Deposits from customers in the banking business   3,670,567    3,981,193    -    -    3,670,567    3,981,193 
Income taxes payables   10,050    5,902    142,024    83,583    152,074    89,485 
Participation and residual liabilities in the Pictures segment   -    -    251,743    236,752    251,743    236,752 
Other financial liabilities   77,523    74,680    38,522    36,009    116,044    110,689 
Other current liabilities   209,555    225,531    1,704,158    1,822,993    1,906,396    2,039,121 
    Total current liabilities   5,831,185    6,252,802    4,369,538    4,448,699    10,192,045    10,688,788 
Non-current liabilities:                              
Long-term debt   703,106    690,249    1,355,011    1,376,593    2,058,117    2,066,842 
Defined benefit liabilities   39,284    38,806    208,299    198,135    247,583    236,941 
Deferred tax liabilities   36,368    8,202    165,877    172,139    166,424    175,228 
Insurance contract liabilities   12,931,995    12,689,306    -    -    12,931,995    12,689,306 
Participation and residual liabilities in the Pictures segment   -    -    206,081    188,919    206,081    188,919 
Other financial liabilities   214,414    313,800    175,263    263,675    386,761    574,351 
Other non-current liabilities   7,607    6,751    176,767    177,380    162,379    162,647 
    Total non-current liabilities   13,932,774    13,747,114    2,287,298    2,376,841    16,159,340    16,094,234 
Total liabilities   19,763,959    19,999,916    6,656,836    6,825,540    26,351,385    26,783,022 
Equity:                              
Stockholders’ equity of Financial Services   1,113,169    1,072,912    -    -    -    - 
Stockholders’ equity of Sony without Financial Services   -    -    7,062,657    7,695,469    -    - 
Sony Group Corporation’s stockholders’ equity   -    -    -    -    7,587,177    8,179,745 
Noncontrolling interests   -    -    168,928    330,406    168,928    330,406 
Total equity   1,113,169    1,072,912    7,231,585    8,025,875    7,756,105    8,510,151 
Total liabilities and equity  ¥20,877,128   ¥21,072,828   ¥13,888,421   ¥14,851,415   ¥34,107,490   ¥35,293,173 

 

- 17 -

 

 

Condensed Statements of Income

 

   Yen in millions 
   Fiscal year ended March 31 
   Financial Services  

Sony without

Financial Services

   Consolidated 
   2024   2025   2024   2025   2024   2025 
Sales  ¥-   ¥-   ¥11,265,043   ¥12,043,903   ¥11,260,037   ¥12,034,917 
Financial services revenue   1,769,954    931,400    -    -    1,760,731    922,147 
Total sales and financial services revenue   1,769,954    931,400    11,265,043    12,043,903    13,020,768    12,957,064 
                               
Cost of sales   -    -    8,101,991    8,514,325    8,089,317    8,504,810 
Selling, general and administrative   -    -    2,148,472    2,256,294    2,156,156    2,256,829 
Financial services expenses   1,615,594    798,954    -    -    1,606,370    789,702 
Other operating (income) expense, net   (19,271)   1,982    (10,133)   (11,224)   (29,404)   (9,241)
Total costs and expenses   1,596,323    800,936    10,240,330    10,759,395    11,822,439    11,542,100 
                               
Share of profit (loss) of investments accounted for using the equity method   (55)   64    10,558    (7,865)   10,502    (7,801)
                               
Operating income   173,576    130,528    1,035,271    1,276,643    1,208,831    1,407,163 
                               
Financial income (expenses), net   -    -    109,864    66,530    59,831    66,563 
                               
Income before income taxes   173,576    130,528    1,145,135    1,343,173    1,268,662    1,473,726 
                               
Income taxes   49,063    56,359    239,105    257,467    288,168    313,839 
                               
Net income   124,513    74,169    906,030    1,085,706    980,494    1,159,887 
                               
Net income of Financial Services  ¥123,986   ¥74,169   ¥-   ¥-   ¥-   ¥- 
                               
Net income of Sony without Financial Services  ¥-   ¥-   ¥896,636   ¥1,067,419   ¥-   ¥- 
                               
Net income attributable to Sony Group Corporation’s stockholders  ¥-   ¥-   ¥-   ¥-   ¥970,573   ¥1,141,600 
                               
Net income attributable to noncontrolling interests  ¥527   ¥-   ¥9,394   ¥18,287   ¥9,921   ¥18,287 

 

- 18 -

 

 

   Yen in millions 
   Three months ended March 31 
   Financial Services  

Sony without

Financial Services

   Consolidated 
   2024   2025   2024   2025   2024   2025 
Sales  ¥-   ¥-   ¥2,810,987   ¥2,807,341   ¥2,810,390   ¥2,804,938 
Financial services revenue   672,885    (172,370)   -    -    670,576    (174,694)
Total sales and financial services revenue   672,885    (172,370)   2,810,987    2,807,341    3,480,966    2,630,244 
                               
Cost of sales   -    -    1,995,564    1,982,705    1,992,922    1,980,206 
Selling, general and administrative   -    -    605,728    599,127    607,776    599,224 
Financial services expenses   666,325    (162,578)   -    -    664,015    (164,901)
Other operating (income) expense, net   (19,602)   1,744    6,011    7,593    (13,591)   9,337 
Total costs and expenses   646,723    (160,834)   2,607,303    2,589,425    3,251,122    2,423,866 
                               
Share of profit (loss) of investments accounted for using the equity method   (55)   (19)   (346)   (2,710)   (402)   (2,729)
                               
Operating income (loss)   26,107    (11,555)   203,338    215,206    229,442    203,649 
                               
Financial income (expenses), net   -    -    47,036    8,901    47,036    8,910 
                               
Income (loss) before income taxes   26,107    (11,555)   250,374    224,107    276,478    212,559 
                               
Income taxes   6,188    15,160    76,265    (11,270)   82,453    3,897 
                               
Net income (loss)   19,919    (26,715)   174,109    235,377    194,025    208,662 
                               
Net income (loss) of Financial Services  ¥19,843   ¥(26,715)  ¥-   ¥-   ¥-   ¥- 
                               
Net income of Sony without Financial Services  ¥-   ¥-   ¥169,165   ¥224,442   ¥-   ¥- 
                               
Net income attributable to Sony Group Corporation’s stockholders  ¥-   ¥-   ¥-   ¥-   ¥189,005   ¥197,727 
                               
Net income attributable to noncontrolling interests  ¥76   ¥-   ¥4,944   ¥10,935   ¥5,020   ¥10,935 

 

- 19 -

 

 

Condensed Statements of Cash Flows

 

   Yen in millions 
   Fiscal year ended March 31 
   Financial Services  

Sony without

Financial Services

   Consolidated 
   2024   2025   2024   2025   2024   2025 
Cash flows from operating activities:                              
Income (loss) before income taxes  ¥173,576   ¥130,528   ¥1,145,135   ¥1,343,173   ¥1,268,662   ¥1,473,726 
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   27,689    27,399    1,117,292    1,125,588    1,144,981    1,152,987 
Other operating (income) expense, net   (19,271)   1,981    (10,133)   (11,222)   (29,404)   (9,241)
(Gain) loss on securities, net (other than Financial Services segment)   -    -    (73,166)   (75,742)   (73,166)   (75,742)
Changes in assets and liabilities:                              
(Increase) decrease in trade receivables and contract assets   (20,843)   959    (200,071)   226,098    (243,646)   228,623 
(Increase) decrease in inventories   -    -    75,641    199,916    75,641    199,916 
(Increase) decrease in investments and advances in the Financial Services segment   (1,748,913)   (824,443)   -    -    (1,748,913)   (824,443)
(Increase) decrease in content assets   -    -    (486,183)   (683,388)   (486,183)   (683,388)
Increase (decrease) in trade payables   27,116    31,309    (40,882)   107,601    9,188    136,952 
Increase (decrease) in insurance contract liabilities, net of insurance contract assets   1,370,580    573,749    -    -    1,370,580    573,749 
Increase (decrease) in deposits from customers in the banking business   536,688    401,014    -    -    536,688    401,014 
Increase (decrease) in borrowings in the life insurance business and the banking business   (41,516)   66,783    -    -    (41,516)   66,783 
Increase (decrease) in taxes payable other than income taxes, net   387    (1,304)   (22,878)   (14,157)   (22,491)   (15,461)
Other   (59,081)   (57,649)   (326,927)   (245,428)   (387,208)   (303,800)
Net cash provided by (used in) operating activities   246,412    350,326    1,177,828    1,972,439    1,373,213    2,321,675 
                               
Cash flows from investing activities:                              
Payments for property, plant and equipment and other intangible assets   (18,167)   (26,542)   (606,844)   (622,187)   (623,946)   (647,527)
Payments for investments and advances (other than Financial Services segment)   -    -    (95,506)   (98,536)   (95,506)   (98,536)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)   -    -    92,679    46,540    92,679    46,540 
Other   (7,560)   (382)   (184,553)   (230,215)   (192,113)   (230,597)
Net cash provided by (used in) investing activities   (25,727)   (26,924)   (794,224)   (904,398)   (818,886)   (930,120)
                               
Cash flows from financing activities:                              
Increase (decrease) in borrowings, net   (11,633)   (21,545)   90,289    (48,827)   78,656    (70,372)
Dividends paid   (50,037)   -    (98,620)   (115,253)   (98,620)   (115,253)
Other   (1,693)   605    (188,977)   (113,111)   (190,745)   (112,618)
Net cash provided by (used in) financing activities   (63,363)   (20,940)   (197,308)   (277,191)   (210,709)   (298,243)
                               
Effect of exchange rate changes on cash and cash equivalents   -    -    82,595    (19,469)   82,595    (19,469)
                               
Net increase (decrease) in cash and cash equivalents   157,322    302,462    268,891    771,381    426,213    1,073,843 
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 fiscal year  ¥913,815   ¥1,216,277   ¥993,298   ¥1,764,679   ¥1,907,113   ¥2,980,956 

 

- 20 -

 

 

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 ended 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 the adoption of these amendments only affects disclosures, they have no impact on Sony’s results of operations and financial position.

 

- 21 -

 

 

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

 

   Yen in millions 
   Fiscal year ended March 31 
   2024   2025 
Net income attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation   970,573    1,141,600 

 

   Thousands of shares 
   Fiscal year ended March 31 
   2024   2025 
Weighted-average shares outstanding for basic EPS computation   6,156,210    6,049,652 
Effect of dilutive securities:          
Stock options   18,398    18,862 
Restricted stock units   2,047    6,550 
Weighted-average shares for diluted EPS computation   6,176,655    6,075,064 

 

   Yen in millions 
   Three months ended March 31 
   2024   2025 
Net income attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation   189,005    197,727 

 

   Thousands of shares 
   Three months ended March 31 
   2024   2025 
Weighted-average shares outstanding for basic EPS computation   6,131,661    6,026,889 
Effect of dilutive securities:          
Stock options   17,939    24,664 
Restricted stock units   2,818    7,488 
Weighted-average shares for diluted EPS computation   6,152,418    6,059,041 

 

Note:

 

As of October 1, 2024, Sony Group Corporation conducted a five-for-one stock split of its common stock. Basic and diluted EPS are calculated assuming that the stock split was implemented at the beginning of the fiscal year ended March 31,2024.

 

(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.

 

- 22 -

 

 

(Change in presentation)

  

Consolidated Statements of Change in Stockholders’ Equity

 

The presentation of “Exercise of stock acquisition rights and other” and “Stock-based compensation” has been changed to “Stock issued under stock-based compensation transactions” and “Compensation expenses related to stock-based compensation transactions,” respectively, from the fiscal year ended March 31, 2025.

 

(Supplemental cash flow information)

 

During the fiscal year ended March 31, 2025, 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”) as well as 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 consideration for the content assets (music catalogs) directly acquired from other rights holders was 84,382 million yen, which was recorded in cash flows from operating activities as “Increase in content assets.”

 

- 23 -

 

 

Subsequent Events

 

(Determination of plan regarding the execution of a partial spin-off of Sony Financial Group Inc.)

 

At a meeting of Sony Group Corporation’s Board of Directors (the “Board”) held on May 14, 2025, Sony Group Corporation decided to submit a resolution for the execution of a partial spin-off (the “Spin-off”) of Sony Financial Group Inc. (“SFGI”), a wholly-owned subsidiary engaged in the Financial Services business, as of October 1, 2025, to the Board in early September 2025. In the Spin-off, Sony Group Corporation plans to distribute slightly more than 80% of the shares of common stock of SFGI (“SFGI share(s)”) to shareholders of Sony Group Corporation through dividends in kind. As a result of the Board resolution on May 14, 2025 on the plan for the execution of the Spin-off, the Financial Services business will be classified as a discontinued operation, in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations,” from the first quarter of the fiscal year ending March 31, 2026. As a result, in the consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of cash flows, revenue, expenses, other comprehensive income and cash flows of the Financial Services business, among other items, will be separated from continuing operations, comprised of Sony’s businesses excluding the Financial Services business, and presented as net income or loss from discontinued operations, other comprehensive income from discontinued operations, and net cash from discontinued operations, respectively. Additionally, in the consolidated statements of financial position, assets and liabilities of the Financial Services business will be classified as a disposal group held for distribution to owners. Accumulated other comprehensive income directly related to the disposal group will also be classified as held for distribution to owners.

 

The disposal group classified as held for distribution to owners will be valued at the lower of its carrying amount, or its fair value less the incremental costs directly attributable to the distribution of the disposal group, excluding finance costs and income tax expense. If the fair value after deducting such incremental costs is less than the carrying amount, the difference will be recorded as a loss within net income or loss from discontinued operations.

 

Upon the resolution of the Board for the distribution of dividends in kind, in accordance with IFRIC® Interpretation 17 “Distributions of Non-cash Assets to Owners,” Sony Group Corporation will reduce its equity by an amount equal to the fair value of the SFGI shares to be distributed as dividends in kind and record such reduction in equity as a liability.

 

In addition, upon the execution of the Spin-off, Sony Group Corporation will account for the loss of control of the Financial Services business (“deconsolidation”) in accordance with IFRS 10 “Consolidated Financial Statements.” In addition to the derecognition of assets and liabilities of the Financial Services business which had been classified as the disposal group, such deconsolidation mainly includes the following treatments: (1) reducing the amount of the liability corresponding to the fair value of the SFGI shares to be distributed as dividends in kind, and recording the difference between the fair value of such SFGI shares and the carrying amount of the portion of the disposal group corresponding to the equity interest in SFGI to be distributed as dividends in kind in net income or loss from discontinued operations; (2) reclassifying the Financial Services business’s accumulated other comprehensive income balance at the time of deconsolidation, which is mainly related to debt instruments and insurance contract liabilities, to net income or loss from discontinued operations (For reference, the total accumulated other comprehensive income recorded in the Financial Services business as of the end of March 2025 was a loss of approximately 1.4 trillion yen. This accounting treatment is a reclassification between items within equity and does not affect the amount of total equity in the consolidated statements of financial position.); and (3) remeasuring the SFGI shares that Sony Group Corporation retains after the Spin-off at fair value, and recording any difference between the carrying amount of the disposal group corresponding to the equity interest in SFGI which Sony Group Corporation retains and such fair value in net income or loss from discontinued operations.

 

After the execution of the Spin-off, it is expected that Sony Group Corporation will hold slightly less than 20% of SFGI shares and SFGI will no longer be a consolidated subsidiary of Sony Group Corporation, but will become an affiliate of Sony Group Corporation accounted for using the equity method.

 

(Establishment of a facility for the repurchase of shares of its own common stock)

 

Sony Group Corporation approved the establishment of the following facility for the repurchase of its own common stock pursuant to the Companies Act of Japan and Sony Group Corporation’s Articles of Incorporation at the meeting of its Board of Directors held on May 14, 2025.

 

1. Total number of shares for repurchase: 100 million shares (maximum)

 

2. Total purchase price for repurchase of shares: 250 billion yen (maximum)

 

3. Period of repurchase: May 15, 2025 to May 14, 2026

 

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Overview of Operating Results

 

For the overview of operating results for the fiscal year ended March 31, 2025 and the results forecast for the fiscal year ending March 31, 2026, as well as the progress on the Fifth Mid-Range Plan, please refer to “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 SEC and the website of Sony Group Corporation.

 

Basic Views on Selection of Accounting Standards

 

Sony has voluntarily adopted IFRS Accounting Standards from the first quarter of the fiscal year ended March 31, 2022, with the goal of further streamlining and maintaining the quality of Sony’s financial and management reporting systems over the mid- to long-term, and with the aim of improving the international comparability of financial information in the capital markets.

 

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, as well as the series of changes in U.S. tariff policy, 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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