6-K 1 a52418200.htm SONY GROUP CORPORATION 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 APRIL 2021
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 __
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, Yes No X
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-______
 
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
 
Executive Deputy President and
 
Chief Financial Officer
 
Date: April 28, 2021

List of materials

Documents attached hereto:
 
i) Press release: Financial Statements and Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 And Outlook for the Fiscal Year Ending March 31, 2022

Financial Statements and Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
And
Outlook for the Fiscal Year Ending March 31, 2022

April 28, 2021
Sony Group Corporation


Financial Statements (Unaudited)
F-1
   
Consolidated Balance Sheets
F-1
Consolidated Statements of Income (Fiscal year ended March 31)
F-2
Consolidated Statements of Comprehensive Income (Fiscal year ended March 31)
F-2
Consolidated Statements of Income (Three months ended March 31)
F-3
Consolidated Statements of Comprehensive Income (Three months ended March 31)
F-3
Consolidated Statements of Changes in Stockholders' Equity
F-4
Consolidated Statements of Cash Flows
F-5
Notes to Consolidated Financial Statements
F-6
-     Business Segment Information
F-6
-     Going Concern Assumption
F-13
-     Accounting Policies and Other Information
F-13
-     Subsequent event
F-15
   
Consolidated Results for the Fiscal Year Ended March 31, 2021
1
   
Outlook for the Fiscal Year Ending March 31, 2022
4
   
Business Segment Information
(Consolidated Results for the Fiscal year ended March 31, 2021 and Outlook for the Fiscal year ending March 31, 2022)
5
   
Financial Target of the Fourth Mid-Range Plan
10
   
Basic Views on Selection of Accounting Standards
10
   
Supplemental Information
(Effects of Transition to International Financial Reporting Standards (IFRS), as of February 3, 2021)
11

 

Other than the results forecast for the fiscal year ending March 31, 2022, all amounts are presented on the basis of Generally Accepted Accounting Principles in the U.S. (“U.S. GAAP”).
 
The results forecast for the fiscal year ending March 31, 2022 is presented on the basis of International Financial Reporting Standards (“IFRS”).
 
Sony Group Corporation and its consolidated subsidiaries are together referred to as “Sony” or “Sony Group”.


(Unaudited)
Consolidated Financial Statements
Consolidated Balance Sheets

           (Millions of yen)        
    March 31
    March 31
    Change from
 
ASSETS   2020     2021     March 31, 2020  
Current assets:
                 
Cash and cash equivalents
 
¥
1,512,357
   
¥
1,786,982
   
¥
+274,625
 
Marketable securities
   
1,847,772
     
2,902,438
     
+1,054,666
 
Notes and accounts receivable, trade and contract assets
   
1,028,793
     
1,099,300
     
+70,507
 
Allowance for credit losses
   
(25,873
)
   
(29,406
)
   
-3,533
 
Inventories
   
589,969
     
637,391
     
+47,422
 
Other receivables
   
188,106
     
283,499
     
+95,393
 
Prepaid expenses and other current assets
   
594,021
     
538,540
     
-55,481
 
 Total current assets
   
5,735,145
     
7,218,744
     
+1,483,599
 
                         
Film costs
   
427,336
     
459,426
     
+32,090
 
                         
Investments and advances:
                       
Affiliated companies
   
207,922
     
226,218
     
+18,296
 
Securities investments and other
   
12,526,210
     
14,046,196
     
+1,519,986
 
Allowance for credit losses
 
     
(8,419
)
   
-8,419
 
     
12,734,132
     
14,263,995
     
+1,529,863
 
                         
Property, plant and equipment:
                       
Land
   
81,482
     
79,557
     
-1,925
 
Buildings
   
659,556
     
683,249
     
+23,693
 
Machinery and equipment
   
1,725,720
     
1,748,961
     
+23,241
 
Construction in progress
   
76,391
     
100,728
     
+24,337
 
     
2,543,149
     
2,612,495
     
+69,346
 
Less-Accumulated depreciation
   
1,634,505
     
1,627,061
     
-7,444
 
     
908,644
     
985,434
     
+76,790
 
                         
Other assets:
                       
Operating lease right-of-use assets
   
359,510
     
337,322
     
-22,188
 
Finance lease right-of-use assets
   
33,100
     
39,772
     
+6,672
 
Intangibles, net
   
906,310
     
996,305
     
+89,995
 
Goodwill
   
783,888
     
827,149
     
+43,261
 
Deferred insurance acquisition costs
   
600,901
     
657,420
     
+56,519
 
Deferred income taxes
   
210,372
     
207,470
     
-2,902
 
Other
   
340,005
     
361,803
     
+21,798
 
     
3,234,086
     
3,427,241
     
+193,155
 
                         
  Total assets
 
¥
23,039,343
   
¥
26,354,840
   
¥
+3,315,497
 
                         
                         
LIABILITIES AND EQUITY
                       
Current liabilities:
                       
Short-term borrowings
 
¥
810,176
   
¥
1,187,868
   
¥
+377,692
 
Current portion of long-term debt
   
29,807
     
131,699
     
+101,892
 
Current portion of long-term operating lease liabilities
   
68,942
     
73,362
     
+4,420
 
Notes and accounts payable, trade
   
380,810
     
599,569
     
+218,759
 
Accounts payable, other and accrued expenses
   
1,630,197
     
1,756,833
     
+126,636
 
Accrued income and other taxes
   
145,996
     
165,406
     
+19,410
 
Deposits from customers in the banking business
   
2,440,783
     
2,773,885
     
+333,102
 
Other
   
733,732
     
1,126,802
     
+393,070
 
 Total current liabilities
   
6,240,443
     
7,815,424
     
+1,574,981
 
                         
Long-term debt
   
634,966
     
773,294
     
+138,328
 
Long-term operating lease liabilities
   
314,836
     
290,259
     
-24,577
 
Accrued pension and severance costs
   
324,655
     
254,103
     
-70,552
 
Deferred income taxes
   
549,538
     
366,761
     
-182,777
 
Future insurance policy benefits and other
   
6,246,047
     
6,599,977
     
+353,930
 
Policyholders’ account in the life insurance business
   
3,642,271
     
4,331,065
     
+688,794
 
Other
   
289,285
     
294,302
     
+5,017
 
  Total liabilities
   
18,242,041
     
20,725,185
     
+2,483,144
 
                         
Redeemable noncontrolling interest
   
7,767
     
8,179
     
+412
 
                         
Equity:
                       
Sony Group Corporation’s stockholders’ equity:
                       
Common stock
   
880,214
     
880,214
   
 
Additional paid-in capital
   
1,289,719
     
1,486,721
     
+197,002
 
Retained earnings
   
2,768,856
     
3,857,152
     
+1,088,296
 
Accumulated other comprehensive income
   
(580,980
)
   
(524,020
)
   
+56,960
 
Treasury stock, at cost
   
(232,503
)
   
(124,228
)
   
+108,275
 
     
4,125,306
     
5,575,839
     
+1,450,533
 
                         
Noncontrolling interests
   
664,229
     
45,637
     
-618,592
 
  Total equity
   
4,789,535
     
5,621,476
     
+831,941
 
  Total liabilities and equity
 
¥
23,039,343
   
¥
26,354,840
   
¥
+3,315,497
 
 
F-1


Consolidated Statements of Income

    (Millions of yen, except per share amounts)
    Fiscal year ended March 31   
    2020     2021
    Change  
Sales and operating revenue:
                 
Net sales
 
¥
6,856,090
   
¥
7,252,766
   
¥
+396,676
 
Financial services revenue
   
1,299,847
     
1,661,520
     
+361,673
 
Other operating revenue
   
103,948
     
85,074
     
-18,874
 
     
8,259,885
     
8,999,360
     
+739,475
 
                         
Costs and expenses:
                       
Cost of sales
   
4,753,174
     
5,072,596
     
+319,422
 
Selling, general and administrative
   
1,502,625
     
1,469,955
     
-32,670
 
Financial services expenses
   
1,171,875
     
1,488,963
     
+317,088
 
Other operating (income) expense, net
   
(3,611
)
   
7,468
     
+11,079
 
     
7,424,063
     
8,038,982
     
+614,919
 
                         
Equity in net income of affiliated companies
   
9,637
     
11,487
     
+1,850
 
                         
Operating income
   
845,459
     
971,865
     
+126,406
 
                         
Other income:
                       
Interest and dividends
   
19,278
     
10,457
     
-8,821
 
Gain on equity securities, net
 
     
247,026
     
+247,026
 
Other
   
2,671
     
6,752
     
+4,081
 
     
21,949
     
264,235
     
+242,286
 
                         
Other expenses:
                       
Interest expenses
   
11,090
     
12,185
     
+1,095
 
Loss on equity securities, net
   
20,180
   
     
-20,180
 
Foreign exchange loss, net
   
26,789
     
16,056
     
-10,733
 
Net periodic benefit costs other than service costs
   
4,572
     
8,811
     
+4,239
 
Other
   
5,327
     
6,678
     
+1,351
 
     
67,958
     
43,730
     
-24,228
 
                         
Income before income taxes
   
799,450
     
1,192,370
     
+392,920
 
                         
Income taxes
   
177,190
     
995
     
-176,195
 
                         
Net income
   
622,260
     
1,191,375
     
+569,115
 
                         
Less - Net income attributable to noncontrolling interests
   
40,069
     
19,599
     
-20,470
 
                         
Net income attributable to Sony Group Corporation’s
                       
 stockholders
 
¥
582,191
   
¥
1,171,776
   
¥
+589,585
 
                         
                         
                         
Per share data:
                       
Net income attributable to Sony Group Corporation’s
                       
   stockholders
                       
   — Basic
 
¥
471.64
   
¥
952.29
   
¥
+480.65
 
   — Diluted
   
461.23
     
936.90
     
+475.67
 


Consolidated Statements of Comprehensive Income

     (Millions of yen)
     Fiscal year ended March 31
    2020
    2021
    Change
 
Net income
 
¥
622,260
   
¥
1,191,375
   
¥
+569,115
 
                         
Other comprehensive income, net of tax –
                       
Unrealized gains (losses) on securities
   
40,390
     
(102,492
)
   
-142,882
 
Unrealized gains on derivative instruments
   
1,267
     
1,513
     
+246
 
Pension liability adjustment
   
74,971
     
12,965
     
-62,006
 
Foreign currency translation adjustments
   
(75,888
)
   
106,826
     
+182,714
 
Debt valuation adjustments
   
3,032
     
(3,120
)
   
-6,152
 
                         
Total comprehensive income
   
666,032
     
1,207,067
     
+541,035
 
                         
Less - Comprehensive income attributable
                       
   to noncontrolling interests
   
54,151
     
8,231
     
-45,920
 
                         
Comprehensive income attributable
                       
   to Sony Group Corporation’s stockholders
 
¥
611,881
   
¥
1,198,836
   
¥
+586,955
 

F-2


Consolidated Statements of Income

    (Millions of yen, except per share amounts)
    Three months ended March 31
    2020     2021     Change  
Sales and operating revenue:
                 
Net sales
 
¥
1,537,308
   
¥
1,771,417
   
¥
+234,109
 
Financial services revenue
   
184,556
     
421,065
     
+236,509
 
Other operating revenue
   
26,876
     
27,937
     
+1,061
 
     
1,748,740
     
2,220,419
     
+471,679
 
                         
Costs and expenses:
                       
Cost of sales
   
1,123,928
     
1,319,092
     
+195,164
 
Selling, general and administrative
   
397,510
     
429,647
     
+32,137
 
Financial services expenses
   
174,664
     
386,086
     
+211,422
 
Other operating expense, net
   
20,406
     
23,959
     
+3,553
 
     
1,716,508
     
2,158,784
     
+442,276
 
                         
Equity in net income of affiliated companies
   
3,215
     
4,845
     
+1,630
 
                         
Operating income
   
35,447
     
66,480
     
+31,033
 
                         
Other income:
                       
Interest and dividends
   
4,620
     
3,348
     
-1,272
 
Gain on equity securities, net
 
     
41,299
     
+41,299
 
Other
   
587
     
2,542
     
+1,955
 
     
5,207
     
47,189
     
+41,982
 
                         
Other expenses:
                       
Interest expenses
   
2,297
     
4,920
     
+2,623
 
Loss on equity securities, net
   
20,552
   
     
-20,552
 
Foreign exchange loss, net
   
17,413
     
7,372
     
-10,041
 
Net periodic benefit costs other than service costs
   
98
     
1,069
     
+971
 
Other
   
4,277
     
4,832
     
+555
 
     
44,637
     
18,193
     
-26,444
 
                         
Income (loss) before income taxes
   
(3,983
)
   
95,476
     
+99,459
 
                         
Income taxes
   
(19,726
)
   
(11,646
)
   
+8,080
 
                         
Net income
   
15,743
     
107,122
     
+91,379
 
                         
Less - Net income attributable to noncontrolling interests
   
3,099
     
122
     
-2,977
 
                         
Net income attributable to Sony Group Corporation’s
                       
 stockholders
 
¥
12,644
   
¥
107,000
   
¥
+94,356
 
                         
                         
                         
Per share data:
                       
Net income attributable to Sony Group Corporation’s
                       
   stockholders
                       
   — Basic
 
¥
10.33
   
¥
86.41
   
¥
+76.08
 
   — Diluted
   
10.10
     
85.44
     
+75.34
 


Consolidated Statements of Comprehensive Income

    (Millions of yen)
    Three months ended March 31
    2020
    2021
    Change
 
Net income
 
¥
15,743
   
¥
107,122
   
¥
+91,379
 
                         
Other comprehensive income, net of tax –
                       
Unrealized gains (losses) on securities
   
25,633
     
(38,064
)
   
-63,697
 
Unrealized gains on derivative instruments
   
1,207
     
845
     
-362
 
Pension liability adjustment
   
(11,191
)
   
6,160
     
+17,351
 
Foreign currency translation adjustments
   
(58,387
)
   
133,613
     
+192,000
 
Debt valuation adjustments
   
3,032
     
(1,283
)
   
-4,315
 
                         
Total comprehensive income (loss)
   
(23,963
)
   
208,393
     
+232,356
 
                         
Less - Comprehensive income attributable
                       
   to noncontrolling interests
   
12,516
     
1,365
     
-11,151
 
                         
Comprehensive income (loss) attributable
                       
   to Sony Group Corporation’s stockholders
 
¥
(36,479
)
 
¥
207,028
   
¥
+243,507
 

F-3


Consolidated Statements of Changes in Stockholders' Equity

                                             
(Millions of yen)
 
   
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 March 31, 2019
 
¥
874,291
   
¥
1,266,874
   
¥
2,320,586
   
¥
(610,670
)
 
¥
(104,704
)
 
¥
3,746,377
   
¥
690,313
   
¥
4,436,690
 
                                                                 
Cumulative effect of ASU 2016-02
                   
(7,472
)
                   
(7,472
)
           
(7,472
)
Issuance of new shares
   
529
     
529
                             
1,058
             
1,058
 
Exercise of stock acquisition rights
   
5,179
     
5,180
                             
10,359
             
10,359
 
Conversion of convertible bonds
   
215
     
215
                             
430
             
430
 
Stock-based compensation
           
1,980
                             
1,980
             
1,980
 
                                                                 
Comprehensive income:
                                                               
Net income
                   
582,191
                     
582,191
     
40,069
     
622,260
 
Other comprehensive income, net of tax
                                                               
Unrealized gains on securities
                           
26,156
             
26,156
     
14,234
     
40,390
 
Unrealized gains on derivative instruments
                           
1,267
             
1,267
             
1,267
 
Pension liability adjustment
                           
74,937
             
74,937
     
34
     
74,971
 
Foreign currency translation adjustments
                           
(74,643
)
           
(74,643
)
   
(1,245
)
   
(75,888
)
Debt valuation adjustments
                           
1,973
             
1,973
     
1,059
     
3,032
 
Total comprehensive income
                                           
611,881
     
54,151
     
666,032
 
                                                                 
Stock issue costs, net of tax
           
(80
)
                           
(80
)
           
(80
)
Dividends declared
                   
(55,111
)
                   
(55,111
)
   
(25,885
)
   
(80,996
)
Purchase of treasury stock
                                   
(200,211
)
   
(200,211
)
           
(200,211
)
Reissuance of treasury stock
           
0
                     
2
     
2
             
2
 
Cancellation of treasury stock
           
(1,072
)
   
(71,338
)
           
72,410
   
           
 
Transactions with noncontrolling interests
                                                               
   shareholders and other
           
16,093
                             
16,093
     
(54,350
)
   
(38,257
)
Balance at March 31, 2020
 
¥
880,214
     
1,289,719
     
2,768,856
     
(580,980
)
   
(232,503
)
   
4,125,306
     
664,229
     
4,789,535
 

On November 18, 2019, Sony, through a wholly-owned subsidiary in the Pictures segment, acquired AT&T Inc.’s (“AT&T”) 42% equity interest in Game Show Network, LLC (“Game Show Network”), a U.S.-based media network subsidiary.  As a result of this acquisition, Game Show Network has become a wholly-owned subsidiary of Sony.  Sony paid 53,992 million yen (496 million U.S. dollars) to AT&T, including 129 million U.S. dollars of dividends Sony distributed to AT&T prior to the acquisition.  The difference between the cash paid and the carrying amount of the noncontrolling interests was recognized as an increase to additional paid-in capital.


                                             
(Millions of yen)
 
   
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 March 31, 2020
 
¥
880,214
   
¥
1,289,719
   
¥
2,768,856
   
¥
(580,980
)
 
¥
(232,503
)
 
¥
4,125,306
   
¥
664,229
   
¥
4,789,535
 
                                                                 
Cumulative effect of ASU 2016-13
                   
(3,669
)
                   
(3,669
)
   
(1,386
)
   
(5,055
)
Exercise of stock acquisition rights
           
(354
)
   
(735
)
           
18,074
     
16,985
             
16,985
 
Conversion of convertible bonds
                   
(11,060
)
           
89,402
     
78,342
             
78,342
 
Stock-based compensation
           
1,577
                             
1,577
             
1,577
 
                                                                 
Comprehensive income:
                                                               
Net income
                   
1,171,776
                     
1,171,776
     
19,599
     
1,191,375
 
Other comprehensive income, net of tax
                                                               
Unrealized losses on securities
                           
(90,521
)
           
(90,521
)
   
(11,971
)
   
(102,492
)
Unrealized gains on derivative instruments
                           
1,513
             
1,513
             
1,513
 
Pension liability adjustment
                           
12,962
             
12,962
     
3
     
12,965
 
Foreign currency translation adjustments
                           
105,643
             
105,643
     
1,183
     
106,826
 
Debt valuation adjustments
                           
(2,537
)
           
(2,537
)
   
(583
)
   
(3,120
)
Total comprehensive income
                                           
1,198,836
     
8,231
     
1,207,067
 
                                                                 
Dividends declared
                   
(68,016
)
                   
(68,016
)
   
(12,996
)
   
(81,012
)
Purchase of treasury stock
                                   
(366
)
   
(366
)
           
(366
)
Reissuance of treasury stock
           
354
                     
1,165
     
1,519
             
1,519
 
Transactions with noncontrolling interests
                                                               
   shareholders and other
           
195,425
             
29,900
             
225,325
     
(612,441
)
   
(387,116
)
Balance at March 31, 2021
 
¥
880,214
     
1,486,721
     
3,857,152
     
(524,020
)
   
(124,228
)
   
5,575,839
     
45,637
     
5,621,476
 

In the quarter ended September 30, 2020, Sony Group Corporation acquired all the common shares and the related stock acquisition rights not held by Sony Group Corporation of Sony Financial Holdings Inc. (“SFH”), a consolidated subsidiary of Sony Group Corporation, and SFH has become a wholly-owned subsidiary of Sony Group Corporation.  Consideration for this acquisition was 396,698 million yen.  The net difference between the consideration, the decrease in the carrying amount of the noncontrolling interests of 622,364 million yen and the increase in accumulated other comprehensive income of 30,203 million yen was recognized as an increase to additional paid-in capital of 195,463 million yen.

F-4


Consolidated Statements of Cash Flows

    (Millions of yen)
    Fiscal year ended March 31
    2020
    2021
 
Cash flows from operating activities:
               
Net income
 
¥
622,260
   
¥
1,191,375
 
Adjustments to reconcile net income to net cash
               
provided by operating activities:
               
Depreciation and amortization, including amortization of
               
    deferred insurance acquisition costs and contract costs
   
416,642
     
390,693
 
Amortization of film costs
   
329,809
     
273,044
 
Accrual for pension and severance costs, less payments
   
8,948
     
(42,936
)
Other operating (income) expense, net
   
(3,611
)
   
7,468
 
(Gain) loss on securities investments, net (other than financial services business)
   
20,177
     
(247,033
)
(Gain) loss on marketable securities and Securities investments held in the financial
               
    services business, net
   
93,088
     
(478,321
)
Deferred income taxes
   
4,799
     
(153,427
)
Equity in net income of affiliated companies, net of dividends
   
(5,114
)
   
(4,948
)
Changes in assets and liabilities:
               
   (Increase) decrease in notes, accounts receivable, trade and contract assets
   
62,654
     
(37,779
)
   (Increase) decrease in inventories
   
40,315
     
(57,007
)
    Increase in film costs
   
(361,194
)
   
(280,541
)
    Increase (decrease) in notes and accounts payable, trade
   
(91,435
)
   
211,939
 
    Increase (decrease) in accrued income and other taxes
   
(40,144
)
   
80,165
 
    Increase in future insurance policy benefits and other
   
520,683
     
905,343
 
    Increase in deferred insurance acquisition costs
   
(99,433
)
   
(102,289
)
    Increase in marketable securities held in the life insurance business
   
(124,270
)
   
(156,132
)
    Increase in other current assets
   
(37,286
)
   
(102,400
)
    Increase (decrease) in other current liabilities
   
(27,083
)
   
62,619
 
Other
   
19,940
     
(109,683
)
        Net cash provided by operating activities
   
1,349,745
     
1,350,150
 
                 
Cash flows from investing activities:
               
Payments for purchases of fixed assets
   
(439,761
)
   
(512,239
)
Proceeds from sales of fixed assets
   
18,758
     
15,823
 
Payments for investments and advances by financial services business
   
(1,319,062
)
   
(1,631,017
)
Payments for investments and advances
               
    (other than financial services business)
   
(48,853
)
   
(103,143
)
Proceeds from sales or return of investments and collections of advances
               
    by financial services business
   
343,740
     
449,081
 
Proceeds from sales or return of investments and collections of advances
               
    (other than financial services business)
   
14,456
     
20,309
 
Proceeds from sales of businesses
   
12,816
     
3,151
 
Proceeds from sales of Olympus Corporation Shares
   
80,357
   
 
Other
   
(14,729
)
   
(23,481
)
        Net cash used in investing activities
   
(1,352,278
)
   
(1,781,516
)
                 
Cash flows from financing activities:
               
Proceeds from issuance of long-term debt
   
118,447
     
406,857
 
Payments of long-term debt
   
(198,055
)
   
(98,134
)
Increase in short-term borrowings, net
   
193,332
     
355,536
 
Proceeds from issuance of short-term borrowings in connection with
               
    payment for purchase of noncontrolling interest in Sony Financial Holdings Inc.
 
     
396,500
 
Payments of short-term borrowings in connection with
               
    payment for purchase of noncontrolling interest in Sony Financial Holdings Inc.
 
     
(396,500
)
Increase in deposits from customers in the financial services business, net
   
258,720
     
467,286
 
Dividends paid
   
(49,574
)
   
(61,288
)
Payments for purchase of treasury stock
   
(200,211
)
   
(366
)
Payment for purchase of noncontrolling interest in Game Show Network, LLC
   
(39,894
)
 
 
Payment for purchase of noncontrolling interest in Sony Financial Holdings Inc.
 
     
(396,698
)
Other
   
(17,107
)
   
(6,226
)
        Net cash provided by financing activities
   
65,658
     
666,967
 
                 
Effect of exchange rate changes on cash and cash equivalents, including restricted
   
(21,643
)
   
36,668
 
                 
Net increase in cash and cash equivalents, including restricted
   
41,482
     
272,269
 
Cash and cash equivalents, including restricted, at beginning of the fiscal year
   
1,473,813
     
1,515,295
 
                 
Cash and cash equivalents, including restricted, at end of the fiscal year
   
1,515,295
     
1,787,564
 
                 
Less - restricted cash and cash equivalents, included in other current assets and
               
    other assets
   
2,938
     
582
 
Cash and cash equivalents at end of the fiscal year
 
¥
1,512,357
   
¥
1,786,982
 

F-5

Notes to Consolidated Financial Statements
Business Segment Information
(Business Segments)

   
(Millions of yen)
 
   
Fiscal year ended March 31
 
Sales and operating revenue
 
2020
   
2021
   
Change
 
Game & Network Services
                 
Customers
 
¥
1,919,760
   
¥
2,604,713
   
¥
+684,953
 
Intersegment
   
57,791
     
51,565
     
-6,226
 
Total
   
1,977,551
     
2,656,278
     
+678,727
 
                         
Music
                       
Customers
   
838,592
     
927,250
     
+88,658
 
Intersegment
   
11,317
     
12,617
     
+1,300
 
Total
   
849,909
     
939,867
     
+89,958
 
                         
Pictures
                       
Customers
   
1,010,714
     
757,580
     
-253,134
 
Intersegment
   
1,140
     
1,187
     
+47
 
Total
   
1,011,854
     
758,767
     
-253,087
 
                         
Electronics Products & Solutions
                       
Customers
   
1,969,880
     
1,902,887
     
-66,993
 
Intersegment
   
21,388
     
17,843
     
-3,545
 
Total
   
1,991,268
     
1,920,730
     
-70,538
 
                         
Imaging & Sensing Solutions
                       
Customers
   
985,259
     
937,859
     
-47,400
 
Intersegment
   
85,317
     
74,638
     
-10,679
 
Total
   
1,070,576
     
1,012,497
     
-58,079
 
                         
Financial Services
                       
Customers
   
1,299,847
     
1,661,520
     
+361,673
 
Intersegment
   
7,901
     
7,401
     
-500
 
Total
   
1,307,748
     
1,668,921
     
+361,173
 
                         
All Other
                       
Customers
   
214,999
     
196,517
     
-18,482
 
Intersegment
   
36,421
     
32,736
     
-3,685
 
Total
   
251,420
     
229,253
     
-22,167
 
                         
Corporate and elimination
   
(200,441
)
   
(186,953
)
   
+13,488
 
Consolidated total
 
¥
8,259,885
   
¥
8,999,360
   
¥
+739,475
 

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with All Other.
Imaging & Sensing Solutions (“I&SS”) intersegment amounts primarily consist of transactions with the G&NS segment and the Electronics Products & Solutions (“EP&S”) segment.
All Other intersegment amounts primarily consist of transactions with the G&NS segment, the Music segment and the Pictures segment.
Corporate and elimination includes certain brand and patent royalty income.


   
(Millions of yen)
 
   
Fiscal year ended March 31
 
Operating income (loss)
 
2020
   
2021
   
Change
 
Game & Network Services
 
¥
238,400
   
¥
342,192
   
¥
+103,792
 
Music
   
142,345
     
188,056
     
+45,711
 
Pictures
   
68,157
     
80,478
     
+12,321
 
Electronics Products & Solutions
   
87,276
     
139,180
     
+51,904
 
Imaging & Sensing Solutions
   
235,584
     
145,876
     
-89,708
 
Financial Services
   
129,597
     
164,582
     
+34,985
 
All Other
   
16,288
     
11,368
     
-4,920
 
Total
   
917,647
     
1,071,732
     
+154,085
 
                         
Corporate and elimination
   
(72,188
)
   
(99,867
)
   
-27,679
 
Consolidated total
 
¥
845,459
   
¥
971,865
   
¥
+126,406
 

Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies.

F-6

(Business Segments)

   
(Millions of yen)
 
   
Three months ended March 31
 
Sales and operating revenue
 
2020
   
2021
   
Change
 
Game & Network Services
                 
Customers
 
¥
423,388
   
¥
645,330
   
¥
+221,942
 
Intersegment
   
10,182
     
14,975
     
+4,793
 
Total
   
433,570
     
660,305
     
+226,735
 
                         
Music
                       
Customers
   
207,951
     
263,372
     
+55,421
 
Intersegment
   
3,492
     
4,050
     
+558
 
Total
   
211,443
     
267,422
     
+55,979
 
                         
Pictures
                       
Customers
   
328,866
     
200,046
     
-128,820
 
Intersegment
   
282
     
124
     
-158
 
Total
   
329,148
     
200,170
     
-128,978
 
                         
Electronics Products & Solutions
                       
Customers
   
357,095
     
430,253
     
+73,158
 
Intersegment
   
6,330
     
4,985
     
-1,345
 
Total
   
363,425
     
435,238
     
+71,813
 
                         
Imaging & Sensing Solutions
                       
Customers
   
210,689
     
211,725
     
+1,036
 
Intersegment
   
20,478
     
20,564
     
+86
 
Total
   
231,167
     
232,289
     
+1,122
 
                         
Financial Services
                       
Customers
   
184,556
     
421,065
     
+236,509
 
Intersegment
   
1,848
     
1,878
     
+30
 
Total
   
186,404
     
422,943
     
+236,539
 
                         
All Other
                       
Customers
   
33,295
     
46,083
     
+12,788
 
Intersegment
   
7,364
     
7,374
     
+10
 
Total
   
40,659
     
53,457
     
+12,798
 
                         
Corporate and elimination
   
(47,076
)
   
(51,405
)
   
-4,329
 
Consolidated total
 
¥
1,748,740
   
¥
2,220,419
   
¥
+471,679
 

G&NS intersegment amounts primarily consist of transactions with All Other.
I&SS intersegment amounts primarily consist of transactions with the G&NS segment and the EP&S segment.
All Other intersegment amounts primarily consist of transactions with the G&NS segment, the Music segment and the Pictures segment.
Corporate and elimination includes certain brand and patent royalty income.


   
(Millions of yen)
 
   
Three months ended March 31
 
Operating income (loss)
 
2020
   
2021
   
Change
 
Game & Network Services
 
¥
46,159
   
¥
33,040
   
¥
-13,119
 
Music
   
30,338
     
40,621
     
+10,283
 
Pictures
   
23,041
     
1,778
     
-21,263
 
Electronics Products & Solutions
   
(59,513
)
   
(11,469
)