
	March 31, 2021
	Book value (Yen in millions)		Weighted average interest rate			Due
Short-term borrowings		1,201,747		0.14	%
Long-term debt
Long-term loans		526,790		0.62	%		2021-2030
Unsecured bonds		289,491		0.28	%		2021-2029
Unsecured zero coupon convertible bonds		40,738		—	%		2022
Lease liabilities		402,023		2.12	%

		1,259,042
Less — Portion due within one year		205,406

		1,053,636


	March 31, 2022
	Book value (Yen in millions)		Weighted average interest rate			Due
Short-term borrowings		1,976,553		0.18	%
Long-term debt
Long-term loans		693,603		0.70	%		2022-2056
Unsecured bonds		189,608		0.25	%		2022-2029
Unsecured zero coupon convertible bonds		26,495		—	%		2022
Lease liabilities		465,349		2.10	%

		1,375,055
Less — Portion due within one year		171,409

		1,203,646

Certain subsidiaries in the Financial Services segment pledged assets as collateral for short-term borrowings and long-term debt and the pledged assets are comprised of the following:


	Yen in millions
	April 1		March 31
	2020		2021		2022
Securities		740,331		1,036,855		1,490,663
Housing loans in the banking business		374,314		553,722		782,175

In addition to the above, certain subsidiaries in the Financial Services segment pledged securities for

securities-for-securities

lending transactions and the pledged securities are as follows:


	Yen in millions
	April 1		March 31
	2020		2021		2022
Securities		—		361,278		521,912

Furthermore, pledged securities of certain subsidiaries in the Financial Services segment as collateral for cash settlements, variation margins of futures markets and certain other purposes are as follows:


	Yen in millions
	April 1		March 31
	2020		2021		2022
Securities		14,672		17,355		21,271

On July 21, 2015, Sony issued 120,000 million yen of 130% Callable Unsecured Zero Coupon Convertible Bonds due on September 28, 2022 (the “Zero Coupon Convertible Bonds”). The bondholders are entitled to convert the Zero Coupon Convertible Bonds into shares of common stock from September 1, 2015 to September 28, 2022. The initial conversion price was 5,008 yen per share. The conversion price is subject to anti-dilution provisions, where the conversion price is adjusted in certain cases such as the issuance or disposal of the shares of Sony Group Corporation’s common stock at below market price, stock splits, bonus issues of shares, and dividends in excess of 25 yen per common share per fiscal year. In addition, an early redemption is triggered upon the occurrence of certain corporate events including a merger or corporate split, and the completion of a takeover bid resulting in the delisting of the shares of common stock of Sony Group Corporation. The conversion price is reduced for a certain period prior to the early redemption date, which is determined by a formula that is based on time to maturity and Sony’s common stock price, in order to compensate bondholders for the time value up to the original maturity date. The reduced conversion price ranges from 3,526.5 yen to 5,008 yen per share. The conversion price has been adjusted to 4,952.8 yen per common share since June 10, 2022 because the payment of the total annual dividend per common share for the fiscal year ended March 31, 2022 was 65 yen, which is in excess of 25 yen. At the early redemption date, the remaining Zero Coupon Convertible Bonds would be redeemed at 100% of the principal amount. The conversion right is bifurcated from the host contract and classified as equity.

Sony has the option to redeem all of the Zero Coupon Convertible Bonds outstanding at 100% of the principal amount on or after July 21, 2020, if the closing price per share of Sony Group Corporation’s common stock on the Tokyo Stock Exchange is 130% or more of the conversion price of the Zero Coupon Convertible Bonds applicable on each trading day for 20 consecutive trading days. As the option is considered closely related to the host contract, Sony does not bifurcate the option from the host contract.

There are no significant adverse debt covenants under the Zero Coupon Convertible Bonds.

There are no significant adverse debt covenants or cross-default provisions related to the other short-term borrowings and long-term debt.