Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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 2024

Commission File Number: 001-06439

SONY GROUP CORPORATION

(Translation of registrant’s name into English)

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

(Address of principal executive offices)

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

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

Form 20-F x

Form 40-F ¨

SIGNATURE

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

	SONY GROUP CORPORATION (Registrant)

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

Date: May 14, 2024

List of Materials

Documents attached hereto:

i) Press release: Quarterly Financial Statements for the Fourth Quarter Ended March 31, 2024 And Outlook for the Fiscal Year Ending March 31, 2025

Financial Statements and Consolidated Financial Results

for the Fiscal Year Ended March 31, 2024

And

Outlook for the Fiscal Year Ending March 31, 2025

May 14, 2024

Sony Group Corporation

Financial Statements (Unaudited)	F-1

Consolidated Statements of Financial Position	F-1
Consolidated Statements of Income (Fiscal year ended March 31)	F-3
Consolidated Statements of Comprehensive Income (Fiscal year ended March 31)	F-4
Consolidated Statements of Income (Three months ended March 31)	F-5
Consolidated Statements of Comprehensive Income (Three months ended March 31)	F-6
Consolidated Statements of Changes in Stockholders’ Equity (Fiscal year ended March 31)	F-7
Consolidated Statements of Cash Flows (Fiscal year ended March 31)	F-8
Notes to Consolidated Financial Statements	F-10
- Business Segment Information	F-10
- Going Concern Assumption	F-20
- Accounting Policy and Other Information	F-20
- Subsequent Events	F-22

Consolidated Results for the Fiscal Year Ended March 31, 2024	1

Outlook for the Fiscal Year Ending March 31, 2025	4

Business Segment Information	6

Financial Targets of Mid-Range Plan	11

Dividend Information	11

Basic Views on Selection of Accounting Standards	12

Supplemental Information	12

Cautionary Statement	15

All financial information 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.”

Sony has adopted IFRS 17 “Insurance Contracts” (“IFRS 17”) starting in the three months ended June 30, 2023. Figures for the three months ended March 31, 2023 and for the fiscal year ended March 31, 2023, as well as the consolidated statement of financial position as of April 1, 2022, are restated in accordance with IFRS 17. Please refer to “Notes to Consolidated Financial Statements - Accounting Policy and Other Information (Changes in accounting policies)” on page F-20 for more details.

(Unaudited)

Consolidated Financial Statements

Consolidated Statements of Financial Position

	Yen in millions
	April 1, 2022 Restated		March 31, 2023 Restated		March 31, 2024		Change from March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		2,049,636		1,480,900		1,907,113		426,213
Investments and advances in the Financial Services segment		360,681		328,358		398,153		69,795
Trade and other receivables, and contract assets		1,621,629		1,770,948		2,158,196		387,248
Inventories		874,007		1,468,042		1,518,644		50,602
Other financial assets		149,301		110,950		125,365		14,415
Other current assets		428,522		563,334		669,335		106,001
Total current assets		5,483,776		5,722,532		6,776,806		1,054,274
Non-current assets:
Investments accounted for using the equity method		268,513		325,220		423,744		98,524
Investments and advances in the Financial Services segment		18,251,612		18,237,761		18,939,794		702,033
Property, plant and equipment		1,113,213		1,344,864		1,522,640		177,776
Right-of-use assets		413,430		478,063		503,395		25,332
Goodwill		952,895		1,275,112		1,487,100		211,988
Content assets		1,342,046		1,561,882		1,928,113		366,231
Other intangible assets		450,103		563,842		615,602		51,760
Deferred tax assets		300,924		393,107		499,550		106,443
Other financial assets		696,306		832,344		897,341		64,997
Other non-current assets		379,137		419,368		513,405		94,037
Total non-current assets		24,168,179		25,431,563		27,330,684		1,899,121
Total assets		29,651,955		31,154,095		34,107,490		2,953,395

(Continued on the following page.)

F-1

Consolidated Statements of Financial Position (Continued)

	Yen in millions
	April 1, 2022 Restated			March 31, 2023 Restated			March 31, 2024			Change from March 31, 2023
LIABILITIES
Current liabilities:
Short-term borrowings		1,976,553			1,914,934			1,812,605			(102,329	)
Current portion of long-term debt		171,409			187,942			217,711			29,769
Trade and other payables		1,843,338			1,866,101			2,064,905			198,804
Deposits from customers in the banking business		2,886,361			3,163,237			3,670,567			507,330
Income taxes payables		105,437			154,543			152,074			(2,469	)
Participation and residual liabilities in the Pictures segment		190,162			230,223			251,743			21,520
Other financial liabilities		127,079			108,049			116,044			7,995
Other current liabilities		1,465,326			1,693,380			1,906,396			213,016
Total current liabilities		8,765,665			9,318,409			10,192,045			873,636
Non-current liabilities:
Long-term debt		1,203,646			1,767,696			2,058,117			290,421
Defined benefit liabilities		254,548			236,121			247,583			11,462
Deferred tax liabilities		120,582			117,621			166,424			48,803
Insurance contract liabilities		13,042,875			12,364,973			12,931,995			567,022
Participation and residual liabilities in the Pictures segment		220,113			192,952			206,081			13,129
Other financial liabilities		231,463			371,580			386,761			15,181
Other non-current liabilities		106,481			127,593			162,379			34,786
Total non-current liabilities		15,179,708			15,178,536			16,159,340			980,804
Total liabilities		23,945,373			24,496,945			26,351,385			1,854,440
EQUITY
Sony Group Corporation’s stockholders’ equity:
Common stock		880,365			880,365			881,357			992
Additional paid-in capital		1,461,053			1,463,807			1,483,410			19,603
Retained earnings		4,170,417			5,092,442			6,002,407			909,965
Accumulated other comprehensive income		(677,989	)		(614,570	)		(376,063	)		238,507
Treasury stock, at cost		(180,042	)		(223,507	)		(403,934	)		(180,427	)
Equity attributable to Sony Group Corporation’s stockholders		5,653,804			6,598,537			7,587,177			988,640
Noncontrolling interests		52,778			58,613			168,928			110,315
Total equity		5,706,582			6,657,150			7,756,105			1,098,955
Total liabilities and equity		29,651,955			31,154,095			34,107,490			2,953,395

F-2

Consolidated Statements of Income

	Yen in millions
	Fiscal year ended March 31
	2023 Restated			2024			Change
Sales and financial services revenue:
Sales		10,095,841			11,260,037			1,164,196
Financial services revenue
Insurance revenue		554,570			586,115			31,545
Other financial services revenue		323,962			1,174,616			850,654
Total financial services revenue		878,532			1,760,731			882,199
Total sales and financial services revenue		10,974,373			13,020,768			2,046,395
Costs and expenses:
Cost of sales		7,174,723			8,089,317			914,594
Selling, general and administrative		1,969,170			2,156,156			186,986
Financial services expenses
Insurance service expenses		382,213			407,206			24,993
Insurance finance expenses (income)		85,399			1,029,700			944,301
Other financial services expenses		96,949			169,464			72,515
Total financial services expenses		564,561			1,606,370			1,041,809
Other operating (income) expense, net		(12,021	)		(29,404	)		(17,383	)
Total costs and expenses		9,696,433			11,822,439			2,126,006
Share of profit (loss) of investments accounted for using the equity method		24,449			10,502			(13,947	)
Operating income		1,302,389			1,208,831			(93,558	)
Financial income		31,058			125,597			94,539
Financial expenses		58,951			65,766			6,815
Income before income taxes		1,274,496			1,268,662			(5,834	)
Income taxes		262,723			288,168			25,445
Net income		1,011,773			980,494			(31,279	)

Net income attributable to
Sony Group Corporation’s stockholders		1,005,277			970,573			(34,704	)
Noncontrolling interests		6,496			9,921			3,425

	Yen
	Fiscal year ended March 31
	2023 Restated		2024		Change
Per share data:
Net income attributable to Sony Group Corporation’s stockholders
- Basic		813.53		788.29		(25.24	)
- Diluted		809.85		785.68		(24.17	)

F-3

Consolidated Statements of Comprehensive Income

	Yen in millions
	Fiscal year ended March 31
	2023 Restated			2024			Change
Net income		1,011,773			980,494			(31,279	)
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		(36,862	)		(53,814	)		(16,952	)
Remeasurement of defined benefit pension plans		18,891			25,875			6,984
Share of other comprehensive income of investments accounted for using the equity method		145			613			468
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income		(819,192	)		(704,636	)		114,556
Cash flow hedges		12,379			1,352			(11,027	)
Insurance finance income (expenses)		727,716			563,396			(164,320	)
Exchange differences on translating foreign operations		178,275			442,406			264,131
Share of other comprehensive income of investments accounted for using the equity method		3,554			4,735			1,181
Other		(144	)		(283	)		(139	)
Total other comprehensive income, net of tax		84,762			279,644			194,882
Comprehensive income		1,096,535			1,260,138			163,603

Comprehensive income attributable to
Sony Group Corporation’s stockholders		1,087,289			1,247,301			160,012
Noncontrolling interests		9,246			12,837			3,591

F-4

Consolidated Statements of Income

	Yen in millions
	Three months ended March 31
	2023 Restated		2024			Change
Sales and financial services revenue:
Sales		2,572,578		2,810,390			237,812
Financial services revenue
Insurance revenue		143,194		152,887			9,693
Other financial services revenue		325,073		517,689			192,616
Total financial services revenue		468,267		670,576			202,309
Total sales and financial services revenue		3,040,845		3,480,966			440,121
Costs and expenses:
Cost of sales		1,932,866		1,992,922			60,056
Selling, general and administrative		550,759		607,776			57,017
Financial services expenses
Insurance service expenses		97,604		115,245			17,641
Insurance finance expenses (income)		282,907		501,625			218,718
Other financial services expenses		35,799		47,145			11,346
Total financial services expenses		416,310		664,015			247,705
Other operating (income) expense, net		257		(13,591	)		(13,848	)
Total costs and expenses		2,900,192		3,251,122			350,930
Share of profit (loss) of investments accounted for using the equity method		5,887		(402	)		(6,289	)
Operating income		146,540		229,442			82,902
Financial income		38,574		66,420			27,846
Financial expenses		22,436		19,384			(3,052	)
Income before income taxes		162,678		276,478			113,800
Income taxes		20,716		82,453			61,737
Net income		141,962		194,025			52,063

Net income attributable to
Sony Group Corporation’s stockholders		140,981		189,005			48,024
Noncontrolling interests		981		5,020			4,039

	Yen
	Three months ended March 31
	2023 Restated		2024		Change
Per share data:
Net income attributable to Sony Group Corporation’s stockholders
- Basic		114.22		154.12		39.90
- Diluted		113.89		153.60		39.71

F-5

Consolidated Statements of Comprehensive Income

	Yen in millions
	Three months ended March 31
	2023 Restated			2024			Change
Net income		141,962			194,025			52,063
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		(27,342	)		(20,538	)		6,804
Remeasurement of defined benefit pension plans		18,852			26,905			8,053
Share of other comprehensive income of investments accounted for using the equity method		14			423			409
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income		371,514			(181,677	)		(553,191	)
Cash flow hedges		(5,340	)		(2,171	)		3,169
Insurance finance income (expenses)		(328,810	)		151,510			480,320
Exchange differences on translating foreign operations		37,694			234,729			197,035
Share of other comprehensive income of investments accounted for using the equity method		762			2,465			1,703
Other		253			(77	)		(330	)
Total other comprehensive income, net of tax		67,597			211,569			143,972
Comprehensive income		209,559			405,594			196,035

Comprehensive income attributable to
Sony Group Corporation’s stockholders		207,767			399,932			192,165
Noncontrolling interests		1,792			5,662			3,870

F-6

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, 2022		880,365		1,461,053			3,760,763			1,222,332			(180,042	)		7,144,471			52,778			7,197,249
Cumulative effects of the application of new accounting standards		-		-			409,654			(1,900,321	)		-			(1,490,667	)		-			(1,490,667	)
Restated balance at April 1, 2022		880,365		1,461,053			4,170,417			(677,989	)		(180,042	)		5,653,804			52,778			5,706,582
Comprehensive income (restated):
Net income							1,005,277									1,005,277			6,496			1,011,773
Other comprehensive income, net of tax										82,012						82,012			2,750			84,762
Total comprehensive income (restated)							1,005,277			82,012						1,087,289			9,246			1,096,535
Transfer to retained earnings							18,593			(18,593	)					-						-
Transactions with stockholders and other:
Exercise of stock acquisition rights				(14	)		(1,352	)					10,364			8,998						8,998
Conversion of convertible bonds				(2,588	)		(13,858	)					42,993			26,547						26,547
Stock-based compensation				11,064												11,064						11,064
Dividends declared							(86,635	)								(86,635	)		(5,980	)		(92,615	)
Purchase of treasury stock													(99,248	)		(99,248	)					(99,248	)
Reissuance of treasury stock				1,242									2,426			3,668						3,668
Transactions with noncontrolling interests shareholders and other				(6,950	)											(6,950	)		2,569			(4,381	)
Restated balance at March 31, 2023		880,365		1,463,807			5,092,442			(614,570	)		(223,507	)		6,598,537			58,613			6,657,150

	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:
Exercise of stock acquisition rights and other		992		(1,939	)		(144	)					19,257			18,166						18,166
Stock-based compensation				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

F-7

Consolidated Statements of Cash Flows

	Yen in millions
	Fiscal year ended March 31
	2023 Restated			2024
Cash flows from operating activities:
Income before income taxes		1,274,496			1,268,662
Adjustments to reconcile income before income taxes to net cash provided by operating activities:
Depreciation and amortization, including amortization of contract costs		1,004,590			1,144,981
Other operating (income) expense, net		(12,021	)		(29,404	)
(Gain) loss on securities, net (other than Financial Services segment)		4,469			(73,166	)
Share of profit of investments accounted for using the equity method, net of dividends		(17,696	)		(715	)
Changes in assets and liabilities:
Increase in trade receivables and contract assets		(70,349	)		(243,646	)
(Increase) decrease in inventories		(560,382	)		75,641
Increase in investments and advances in the Financial Services segment		(1,093,792	)		(1,748,913	)
Increase in content assets		(594,547	)		(486,183	)
Increase (decrease) in trade payables		(107,250	)		9,188
Increase in insurance contract liabilities, net of insurance contract assets		330,654			1,370,580
Increase in deposits from customers in the banking business		300,201			536,688
Increase (decrease) in borrowings in the life insurance business and the banking business		111,314			(41,516	)
Increase (decrease) in taxes payable other than income taxes, net		4,183			(22,491	)
(Increase) decrease in other financial assets and other current assets		5,932			(31,821	)
Increase in other financial liabilities and other current liabilities		130,142			19,562
Income taxes paid		(297,881	)		(293,997	)
Other		(97,372	)		(80,237	)
Net cash provided by operating activities		314,691			1,373,213

(Continued on the following page.)

F-8

Consolidated Statements of Cash Flows (Continued)

	Yen in millions
	Fiscal year ended March 31
	2023 Restated			2024
Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets		(613,635	)		(623,946	)
Proceeds from sales of property, plant and equipment and other intangible assets		11,595			11,571
Payments for investments and advances (other than Financial Services segment)		(191,129	)		(95,506	)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)		13,548			92,679
Payments for purchases of businesses and other		(283,402	)		(199,255	)
Proceeds from sales of businesses		1,221			-
Other		9,138			(4,429	)
Net cash used in investing activities		(1,052,664	)		(818,886	)
Cash flows from financing activities:
Increase (decrease) in short-term borrowings, net		32,391			(18,370	)
Proceeds from issuance of long-term debt		361,776			225,176
Payments of long-term debt		(132,198	)		(128,150	)
Dividends paid		(86,568	)		(98,620	)
Payments for purchases of treasury stock		(99,248	)		(202,974	)
Other		8,147			12,229
Net cash provided by (used in) financing activities		84,300			(210,709	)
Effect of exchange rate changes on cash and cash equivalents		84,937			82,595
Net increase (decrease) in cash and cash equivalents		(568,736	)		426,213
Cash and cash equivalents at beginning of the fiscal year		2,049,636			1,480,900
Cash and cash equivalents at end of the fiscal year		1,480,900			1,907,113

F-9

Notes to Consolidated Financial Statements

Business Segment Information

(Business Segments)

Segment sales and financial services revenue

	Yen in millions
	Fiscal year ended March 31
	2023 Restated			2024			Change
Sales and financial services revenue:
Game & Network Services -
Customers		3,538,533			4,172,994			634,461
Intersegment		106,065			94,740			(11,325	)
Total		3,644,598			4,267,734			623,136
Music -
Customers		1,364,815			1,594,955			230,140
Intersegment		15,817			24,003			8,186
Total		1,380,632			1,618,958			238,326
Pictures -
Customers		1,364,887			1,486,717			121,830
Intersegment		4,535			6,333			1,798
Total		1,369,422			1,493,050			123,628
Entertainment, Technology & Services -
Customers		2,436,739			2,414,946			(21,793	)
Intersegment		39,286			38,772			(514	)
Total		2,476,025			2,453,718			(22,307	)
Imaging & Sensing Solutions -
Customers		1,301,481			1,503,906			202,425
Intersegment		100,706			98,832			(1,874	)
Total		1,402,187			1,602,738			200,551
Financial Services -
Customers		878,532			1,760,731			882,199
Intersegment		10,550			9,223			(1,327	)
Total		889,082			1,769,954			880,872
All Other -
Customers		72,338			75,784			3,446
Intersegment		15,285			13,586			(1,699	)
Total		87,623			89,370			1,747
Corporate and elimination		(275,196	)		(274,754	)		442
Consolidated total		10,974,373			13,020,768			2,046,395

　　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.

F-10

Segment profit (loss)

	Yen in millions
	Fiscal year ended March 31
	2023 Restated			2024			Change
Operating income (loss):
Game & Network Services		250,006			290,184			40,178
Music		263,107			301,662			38,555
Pictures		119,255			117,702			(1,553	)
Entertainment, Technology & Services		179,461			187,399			7,938
Imaging & Sensing Solutions		212,214			193,541			(18,673	)
Financial Services		318,118			173,576			(144,542	)
All Other		16,849			1,600			(15,249	)
Total		1,359,010			1,265,664			(93,346	)
Corporate and elimination		(56,621	)		(56,833	)		(212	)
Consolidated operating income		1,302,389			1,208,831			(93,558	)

　　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.

F-11

Segment sales and financial services revenue

	Yen in millions
	Three months ended March 31
	2023 Restated			2024			Change
Sales and financial services revenue:
Game & Network Services -
Customers		1,035,737			1,058,968			23,231
Intersegment		37,461			38,363			902
Total		1,073,198			1,097,331			24,133
Music -
Customers		341,891			422,188			80,297
Intersegment		7,605			7,721			116
Total		349,496			429,909			80,413
Pictures -
Customers		357,135			404,059			46,924
Intersegment		1,905			2,662			757
Total		359,040			406,721			47,681
Entertainment, Technology & Services -
Customers		483,621			522,877			39,256
Intersegment		10,226			9,780			(446	)
Total		493,847			532,657			38,810
Imaging & Sensing Solutions -
Customers		326,278			381,260			54,982
Intersegment		22,550			17,264			(5,286	)
Total		348,828			398,524			49,696
Financial Services -
Customers		468,267			670,576			202,309
Intersegment		2,308			2,309			1
Total		470,575			672,885			202,310
All Other -
Customers		19,490			18,772			(718	)
Intersegment		3,007			2,985			(22	)
Total		22,497			21,757			(740	)
Corporate and elimination		(76,636	)		(78,818	)		(2,182	)
Consolidated total		3,040,845			3,480,966			440,121

　　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.

F-12

Segment profit (loss)

	Yen in millions
	Three months ended March 31
	2023 Restated			2024			Change
Operating income (loss):
Game & Network Services		38,864			105,983			67,119
Music		60,440			71,199			10,759
Pictures		15,535			30,667			15,132
Entertainment, Technology & Services		(33,041	)		(6,444	)		26,597
Imaging & Sensing Solutions		31,687			34,734			3,047
Financial Services		51,814			26,107			(25,707	)
All Other		74			(5,540	)		(5,614	)
Total		165,373			256,706			91,333
Corporate and elimination		(18,833	)		(27,264	)		(8,431	)
Consolidated operating income		146,540			229,442			82,902

　　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.

F-13

(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
Sales and financial services revenue:	2023 Restated		2024		Change
Game & Network Services
Digital Software and Add-on Content		1,523,045		1,934,586		411,541
Network Services		464,676		545,537		80,861
Hardware and Others		1,550,812		1,692,871		142,059
Total		3,538,533		4,172,994		634,461
Music
Recorded Music - Streaming		598,868		709,453		110,585
Recorded Music - Others		286,270		356,646		70,376
Music Publishing		276,665		326,727		50,062
Visual Media and Platform		203,012		202,129		(883	)
Total		1,364,815		1,594,955		230,140
Pictures
Motion Pictures		464,043		542,044		78,001
Television Productions		536,250		551,035		14,785
Media Networks		364,594		393,638		29,044
Total		1,364,887		1,486,717		121,830
Entertainment, Technology & Services
Televisions		733,251		624,264		(108,987	)
Audio and Video		391,608		412,067		20,459
Still and Video Cameras		565,018		643,429		78,411
Mobile Communications		356,771		299,905		(56,866	)
Other		390,091		435,281		45,190
Total		2,436,739		2,414,946		(21,793	)
Imaging & Sensing Solutions		1,301,481		1,503,906		202,425
Financial Services		878,532		1,760,731		882,199
All Other		72,338		75,784		3,446
Corporate		17,048		10,735		(6,313	)
Consolidated total		10,974,373		13,020,768		2,046,395

F-14

	Yen in millions
	Three months ended March 31
Sales and financial services revenue:	2023 Restated		2024		Change
Game & Network Services
Digital Software and Add-on Content		396,239		514,163		117,924
Network Services		118,946		149,969		31,023
Hardware and Others		520,552		394,836		(125,716	)
Total		1,035,737		1,058,968		23,231
Music
Recorded Music - Streaming		148,680		184,188		35,508
Recorded Music - Others		73,883		103,859		29,976
Music Publishing		65,958		82,779		16,821
Visual Media and Platform		53,370		51,362		(2,008	)
Total		341,891		422,188		80,297
Pictures
Motion Pictures		104,040		156,890		52,850
Television Productions		158,995		142,575		(16,420	)
Media Networks		94,100		104,594		10,494
Total		357,135		404,059		46,924
Entertainment, Technology & Services
Televisions		114,515		116,313		1,798
Audio and Video		78,056		79,995		1,939
Still and Video Cameras		106,307		133,743		27,436
Mobile Communications		71,212		63,261		(7,951	)
Other		113,531		129,565		16,034
Total		483,621		522,877		39,256
Imaging & Sensing Solutions		326,278		381,260		54,982
Financial Services		468,267		670,576		202,309
All Other		19,490		18,772		(718	)
Corporate		8,426		2,266		(6,160	)
Consolidated total		3,040,845		3,480,966		440,121

　　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; 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.

F-15

(Condensed Financial Services 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, 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 condensed consolidated financial statements 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
	April 1, 2022 Restated		March 31, 2023 Restated		March 31, 2024		April 1, 2022 Restated		March 31, 2023 Restated		March 31, 2024		April 1, 2022 Restated		March 31, 2023 Restated		March 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	¥	889,140	¥	756,493	¥	913,815	¥	1,160,496	¥	724,407	¥	993,298	¥	2,049,636	¥	1,480,900	¥	1,907,113
Investments and advances in the Financial Services segment		360,681		328,358		398,153		-		-		-		360,681		328,358		398,153
Trade and other receivables, and contract assets		163,037		127,413		127,016		1,478,620		1,668,257		2,033,170		1,621,629		1,770,948		2,158,196
Inventories		-		-		-		874,007		1,468,042		1,518,644		874,007		1,468,042		1,518,644
Other financial assets		81,174		47,044		57,254		68,124		63,906		68,111		149,301		110,950		125,365
Other current assets		27,893		16,029		50,487		450,953		562,442		625,539		428,522		563,334		669,335
Total current assets		1,521,925		1,275,337		1,546,725		4,032,200		4,487,054		5,238,762		5,483,776		5,722,532		6,776,806
Non-current assets:
Investments accounted for using the equity method		-		-		4,905		268,513		325,220		418,839		268,513		325,220		423,744
Investments and advances in the Financial Services segment		18,251,612		18,237,761		18,939,794		-		-		-		18,251,612		18,237,761		18,939,794
Investments in Financial Services, at cost		-		-		-		550,483		550,483		550,483		-		-		-
Property, plant and equipment		18,010		15,316		14,162		1,095,241		1,329,219		1,508,151		1,113,213		1,344,864		1,522,640
Right-of-use assets		73,774		84,023		76,288		339,658		395,210		428,224		413,430		478,063		503,395
Goodwill and intangible assets, including content assets		72,578		78,197		77,323		2,672,466		3,322,639		3,953,492		2,745,044		3,400,836		4,030,815
Deferred tax assets		2,335		2,687		-		332,330		431,533		520,613		300,924		393,107		499,550
Other financial assets		37,037		46,941		52,882		663,233		789,470		848,599		696,306		832,344		897,341
Other non-current assets		167,744		172,565		165,049		284,834		319,306		421,258		379,137		419,368		513,405
Total non-current assets		18,623,090		18,637,490		19,330,403		6,206,758		7,463,080		8,649,659		24,168,179		25,431,563		27,330,684
Total assets	¥	20,145,015	¥	19,912,827	¥	20,877,128	¥	10,238,958	¥	11,950,134	¥	13,888,421	¥	29,651,955	¥	31,154,095	¥	34,107,490

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	1,964,776	¥	1,891,856	¥	1,802,337	¥	183,187	¥	211,020	¥	227,979	¥	2,147,962	¥	2,102,876	¥	2,030,316
Trade and other payables		119,017		77,703		61,153		1,744,011		1,812,670		2,005,112		1,843,338		1,866,101		2,064,905
Deposits from customers in the banking business		2,886,361		3,163,237		3,670,567		-		-		-		2,886,361		3,163,237		3,670,567
Income taxes payables		3,789		15,213		10,050		101,648		139,330		142,024		105,437		154,543		152,074
Participation and residual liabilities in the Pictures segment		-		-		-		190,162		230,223		251,743		190,162		230,223		251,743
Other financial liabilities		98,029		77,605		77,523		29,050		30,444		38,522		127,079		108,049		116,044
Other current liabilities		218,865		194,174		209,555		1,297,115		1,514,792		1,704,158		1,465,326		1,693,380		1,906,396
Total current liabilities		5,290,837		5,419,788		5,831,185		3,545,173		3,938,479		4,369,538		8,765,665		9,318,409		10,192,045
Non-current liabilities:
Long-term debt		470,498		663,353		703,106		733,148		1,104,344		1,355,011		1,203,646		1,767,696		2,058,117
Defined benefit liabilities		37,167		37,183		39,284		217,381		198,938		208,299		254,548		236,121		247,583
Deferred tax liabilities		58,666		60,554		36,368		110,715		112,938		165,877		120,582		117,621		166,424
Insurance contract liabilities		13,042,875		12,364,973		12,931,995		-		-		-		13,042,875		12,364,973		12,931,995
Participation and residual liabilities in the Pictures segment		-		-		-		220,113		192,952		206,081		220,113		192,952		206,081
Other financial liabilities		147,712		175,026		214,414		86,391		199,327		175,263		231,463		371,580		386,761
Other non-current liabilities		5,864		7,225		7,607		121,558		142,096		176,767		106,481		127,593		162,379
Total non-current liabilities		13,762,782		13,308,314		13,932,774		1,489,306		1,950,595		2,287,298		15,179,708		15,178,536		16,159,340
Total liabilities		19,053,619		18,728,102		19,763,959		5,034,479		5,889,074		6,656,836		23,945,373		24,496,945		26,351,385
Equity:
Stockholders’ equity of Financial Services		1,087,948		1,180,905		1,113,169		-		-		-		-		-		-
Stockholders’ equity of Sony without Financial Services		-		-		-		5,155,149		6,006,267		7,062,657		-		-		-
Sony Group Corporation’s stockholders’ equity		-		-		-		-		-		-		5,653,804		6,598,537		7,587,177
Noncontrolling interests		3,448		3,820		-		49,330		54,793		168,928		52,778		58,613		168,928
Total equity		1,091,396		1,184,725		1,113,169		5,204,479		6,061,060		7,231,585		5,706,582		6,657,150		7,756,105
Total liabilities and equity	¥	20,145,015	¥	19,912,827	¥	20,877,128	¥	10,238,958	¥	11,950,134	¥	13,888,421	¥	29,651,955	¥	31,154,095	¥	34,107,490

F-16

Condensed Statements of Income

	Yen in millions
	Fiscal year ended March 31
	Financial Services						Sony without Financial Services						Consolidated
	2023 Restated			2024			2023 Restated			2024			2023 Restated			2024

Sales	¥	-		¥	-		¥	10,101,979		¥	11,265,043		¥	10,095,841		¥	11,260,037
Financial services revenue		889,082			1,769,954			-			-			878,532			1,760,731
Total sales and financial services revenue		889,082			1,769,954			10,101,979			11,265,043			10,974,373			13,020,768

Cost of sales		-			-			7,186,767			8,101,990			7,174,723			8,089,317
Selling, general and administrative		-			-			1,961,906			2,148,472			1,969,170			2,156,156
Financial services expenses		575,111			1,615,594			-			-			564,561			1,606,370
Other operating (income) expense, net		(4,147	)		(19,271	)		(5,566	)		(10,133	)		(12,021	)		(29,404	)
Total costs and expenses		570,964			1,596,323			9,143,107			10,240,329			9,696,433			11,822,439

Share of profit (loss) of investments accounted for using the equity method		-			(55	)		24,449			10,557			24,449			10,502

Operating income		318,118			173,576			983,321			1,035,271			1,302,389			1,208,831

Financial income (expenses), net		-			-			13,437			109,864			(27,893	)		59,831

Income before income taxes		318,118			173,576			996,758			1,145,135			1,274,496			1,268,662

Income taxes		89,897			49,063			172,528			239,105			262,723			288,168

Net income		228,221			124,513			824,230			906,030			1,011,773			980,494

Net income of Financial Services	¥	227,849		¥	123,986		¥	-		¥	-		¥	-		¥	-

Net income of Sony without Financial Services	¥	-		¥	-		¥	818,106		¥	896,636		¥	-		¥	-

Net income attributable to Sony Group Corporation’s stockholders	¥	-		¥	-		¥	-		¥	-		¥	1,005,277		¥	970,573

Net income attributable to noncontrolling interests	¥	372		¥	527		¥	6,124		¥	9,394		¥	6,496		¥	9,921

F-17

	Yen in millions
	Three months ended March 31
	Financial Services					Sony without Financial Services					Consolidated
	2023 Restated		2024			2023 Restated		2024			2023 Restated		2024

Sales	¥	-	¥	-		¥	2,574,348	¥	2,810,987		¥	2,572,578	¥	2,810,390
Financial services revenue		470,575		672,885			-		-			468,267		670,576
Total sales and financial services revenue		470,575		672,885			2,574,348		2,810,987			3,040,845		3,480,966

Cost of sales		-		-			1,935,980		1,995,563			1,932,866		1,992,922
Selling, general and administrative		-		-			549,399		605,728			550,759		607,776
Financial services expenses		418,618		666,325			-		-			416,310		664,015
Other operating (income) expense, net		143		(19,602	)		115		6,011			257		(13,591	)
Total costs and expenses		418,761		646,723			2,485,494		2,607,302			2,900,192		3,251,122

Share of profit (loss) of investments accounted for using the equity method		-		(55	)		5,887		(347	)		5,887		(402	)

Operating income		51,814		26,107			94,741		203,338			146,540		229,442

Financial income (expenses), net		-		-			16,136		47,036			16,138		47,036

Income before income taxes		51,814		26,107			110,877		250,374			162,678		276,478

Income taxes		16,350		6,188			4,366		76,265			20,716		82,453

Net income		35,464		19,919			106,511		174,109			141,962		194,025

Net income of Financial Services	¥	35,326	¥	19,843		¥	-	¥	-		¥	-	¥	-

Net income of Sony without Financial Services	¥	-	¥	-		¥	105,668	¥	169,165		¥	-	¥	-

Net income attributable to Sony Group Corporation’s stockholders	¥	-	¥	-		¥	-	¥	-		¥	140,981	¥	189,005

Net income attributable to noncontrolling interests	¥	138	¥	76		¥	843	¥	4,944		¥	981	¥	5,020

F-18

Condensed Statements of Cash Flows

	Yen in millions
	Fiscal year ended March 31
	Financial Services						Sony without Financial Services						Consolidated
	2023 Restated			2024			2023			2024			2023 Restated			2024
Cash flows from operating activities:
Income (loss) before income taxes	¥	318,118		¥	173,576		¥	996,758		¥	1,145,135		¥	1,274,496		¥	1,268,662
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		26,333			27,689			978,257			1,117,292			1,004,590			1,144,981
Other operating (income) expense, net		(4,147	)		(19,271	)		(5,566	)		(10,133	)		(12,021	)		(29,404	)
(Gain) loss on securities, net (other than Financial Services segment)		-			-			4,469			(73,166	)		4,469			(73,166	)
Changes in assets and liabilities:
(Increase) decrease in trade receivables and contract assets		35,623			(20,843	)		(110,668	)		(200,071	)		(70,349	)		(243,646	)
(Increase) decrease in inventories		-			-			(560,382	)		75,641			(560,382	)		75,641
(Increase) decrease in investments and advances in the Financial Services segment		(1,093,792	)		(1,748,913	)		-			-			(1,093,792	)		(1,748,913	)
(Increase) decrease in content assets		-			-			(594,547	)		(486,183	)		(594,547	)		(486,183	)
Increase (decrease) in trade payables		(40,059	)		27,116			(62,691	)		(40,882	)		(107,250	)		9,188
Increase (decrease) in insurance contract liabilities, net of insurance contract assets		330,654			1,370,580			-			-			330,654			1,370,580
Increase (decrease) in deposits from customers in the banking business		300,201			536,688			-			-			300,201			536,688
Increase (decrease) in borrowings in the life insurance business and the banking business		111,314			(41,516	)		-			-			111,314			(41,516	)
Increase (decrease) in taxes payable other than income taxes, net		112			387			4,071			(22,878	)		4,183			(22,491	)
Other		(40,639	)		(59,081	)		(234,228	)		(326,927	)		(276,875	)		(387,208	)
Net cash provided by (used in) operating activities		(56,282	)		246,412			415,473			1,177,828			314,691			1,373,213

Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets		(24,195	)		(18,167	)		(590,320	)		(606,844	)		(613,635	)		(623,946	)
Payments for investments and advances (other than Financial Services segment)		-			-			(191,129	)		(95,506	)		(191,129	)		(95,506	)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)		-			-			13,548			92,679			13,548			92,679
Other		393			(7,560	)		(264,125	)		(184,553	)		(261,448	)		(192,113	)
Net cash provided by (used in) investing activities		(23,802	)		(25,727	)		(1,032,026	)		(794,224	)		(1,052,664	)		(818,886	)

Cash flows from financing activities:
Increase (decrease) in borrowings, net		(11,226	)		(11,633	)		273,195			90,289			261,969			78,656
Dividends paid		(41,335	)		(50,037	)		(86,568	)		(98,620	)		(86,568	)		(98,620	)
Other		(2	)		(1,693	)		(91,100	)		(188,977	)		(91,101	)		(190,745	)
Net cash provided by (used in) financing activities		(52,563	)		(63,363	)		95,527			(197,308	)		84,300			(210,709	)

Effect of exchange rate changes on cash and cash equivalents		-			-			84,937			82,595			84,937			82,595

Net increase (decrease) in cash and cash equivalents		(132,647	)		157,322			(436,089	)		268,891			(568,736	)		426,213
Cash and cash equivalents at beginning of the fiscal year		889,140			756,493			1,160,496			724,407			2,049,636			1,480,900
Cash and cash equivalents at end of the fiscal year	¥	756,493		¥	913,815		¥	724,407		¥	993,298		¥	1,480,900		¥	1,907,113

F-19

Going Concern Assumption

　　Not Applicable

Accounting Policy and Other Information

(Changes in accounting policies)

Sony newly adopted the following accounting standards and interpretations from the fiscal year ending March 31, 2024:

IFRS 17 “Insurance Contracts”

The IASB issued IFRS 17 “Insurance Contracts” (“IFRS 17”) in May 2017 and Amendments to IFRS 17 in June 2020 and December 2021. IFRS 17 replaces IFRS 4 “Insurance Contracts” and sets out principles for the recognition, measurement, presentation, and disclosure of insurance contracts within the scope of IFRS 17. IFRS 17 provides a general model, supplemented by a specific approach for contracts with direct participation features (the variable fee approach), and a simplified approach (the premium allocation approach) mainly for short-duration contracts.

IFRS 17 was effective for Sony as of April 1, 2023. Sony has retrospectively applied changes in accounting policies resulting from the adoption of IFRS 17 unless it was impracticable. Sony applied the modified retrospective approach, which uses reasonable and supportable information, or the fair value approach, which uses the fair value as of April 1, 2022, the transition date for IFRS 17, to identify, recognize, and measure certain groups of insurance contracts as of the transition date for IFRS 17, for which it was impracticable to apply the full retrospective approach. Therefore, Sony has restated the consolidated financial statements for comparative periods and the consolidated statement of financial position as of April 1, 2022 on the basis of the retrospective application of IFRS 17. The effects of the retrospective application of IFRS 17 on Sony’s total equity as of April 1, 2022 are presented in the consolidated statements of changes in stockholders’ equity.

F-20

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

	Yen in millions
	Fiscal year ended March 31
	2023 Restated		2024
Net income attributable to Sony Group Corporation’s stockholders		1,005,277		970,573
Adjustment amount to net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation:
Zero coupon convertible bonds		51		-
Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation		1,005,328		970,573

	Thousands of shares
	Fiscal year ended March 31
	2023		2024
Weighted-average shares outstanding for basic EPS computation		1,235,701		1,231,242
Effect of dilutive securities:
Stock options		3,617		3,680
Restricted stock units		29		409
Zero coupon convertible bonds		2,030		-
Weighted-average shares for diluted EPS computation		1,241,377		1,235,331

	Yen in millions
	Three months ended March 31
	2023 Restated		2024
Net income attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation		140,981		189,005

	Thousands of shares
	Three months ended March 31
	2023		2024
Weighted-average shares outstanding for basic EPS computation		1,234,274		1,226,332
Effect of dilutive securities:
Stock options		3,521		3,588
Restricted stock units		100		564
Weighted-average shares for diluted EPS computation		1,237,895		1,230,484

(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 in Japan 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.

F-21

(Change in presentation)

Consolidated Statements of Cash Flows

Certain reclassifications of the consolidated statements of cash flows for the fiscal year ended March 31, 2023 have been made to conform to the presentation for the fiscal year ended March 31, 2024.

Subsequent Events

(Cancellation of shares of its common stock)

Based on the resolution of Sony Group Corporation’s Representative Corporate Executive Officer delegated by the Board of Directors and the Companies Act of Japan, Sony Group Corporation canceled shares of its common stock held as treasury stock as follows.

1. Number of shares canceled: 12,612,300 shares

2. Cancellation date: April 10, 2024

(Setting of parameters for repurchase of shares of its own common stock)

Sony Group Corporation approved the setting of the following parameters for 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, 2024.

1.Total number of shares for repurchase: 30 million shares (maximum)

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

3.Period of repurchase: May 15, 2024 to May 14, 2025

* The Total number of shares for repurchase shown in 1. above after the effective date of the stock split (October 1, 2024) described below will be 150 million shares (maximum).

(Stock Split)

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

1. Method of Stock Split

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

2. Number of shares to be increased by Stock Split

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

* Total number of issued shares shown above is based on the total number of issued shares as of April 30, 2024, and may increase by the record date of the stock split due to the exercise of stock acquisition rights.

3. Schedule of Stock Split

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

4. Partial Amendment to Articles of Incorporation

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

F-22

Consolidated Results for the Fiscal Year Ended March 31, 2024

As the results for the fiscal year ended March 31, 2023 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the fiscal year ended March 31, 2023.

	(Yen in billions, except per share amounts) Fiscal Year ended March 31
Consolidated	2023 Restated			2024			Change
Sales ^*1		10,974.4			13,020.8			+2,046.4
Operating income		1,302.4			1,208.8			-93.6
Operating income margin		11.9	%		9.3	%		-2.6	pts
Income before income taxes		1,274.5			1,268.7			-5.8
Net income attributable to Sony Group Corporation’s stockholders		1,005.3			970.6			-34.7
Adjusted OIBDA ^*2		1,816.9			1,826.1			+9.3
Adjusted EBITDA ^*2		1,797.6			1,818.0			+20.4
Net income attributable to Sony Group Corporation’s stockholders per share of common stock:
- Basic	¥	813.53		¥	788.29		¥	-25.24
- Diluted		809.85			785.68			-24.17

	(Yen in billions, except per share amounts) Fiscal Year ended March 31
Sony without Financial Services ^*3	2023 Restated			2024			Change
Sales ^*1		10,102.0			11,265.0			+1,163.1
Operating income		983.3			1,035.3			+52.0
Operating income margin		9.7	%		9.2	%		-0.5	pts
Income before income taxes		996.8			1,145.1			+148.4
Net income attributable to Sony Group Corporation’s stockholders		818.1			896.6			+78.5
Adjusted OIBDA ^*2		1,493.5			1,644.6			+151.1
Adjusted EBITDA ^*2		1,515.6			1,686.5			+170.9
Net income attributable to Sony Group Corporation’s stockholders per share of common stock:
- Basic		662.06			728.24			+66.18
- Diluted		659.07			725.83			+66.76
Net cash provided by operating activities		415.5			1,177.8			+762.4
Net cash used in investing activities		(1,032.0	)		(794.2	)		+237.8
Total		(616.6	)		383.6			+1,000.2

^*1 “Sales and Financial Services revenue” are shown as “Sales” (the same applies below).

^*2 Adjusted OIBDA (Operating Income Before Depreciation and Amortization) and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) are not measures in accordance with IFRS. However, Sony believes that these disclosures may be useful information to investors. Please refer to “Supplemental Information” on pages 12 to 14 for more details, including the formulas and reconciliations for Adjusted OIBDA and Adjusted EBITDA (the same applies below).

^*3 Figures for Sony without Financial Services are not measures in accordance with IFRS. However, Sony believes that these disclosures may be useful information to investors. Please refer to page F-16 for details about the preparation of the Condensed Financial Statements (the same applies below).

The average foreign exchange rates during the fiscal years ended March 31, 2023 and 2024 are presented below.

	Fiscal Year ended March 31
	2023		2024		Change
1 U.S. dollar	¥	135.4	¥	144.4	9.0 yen depreciation
1 Euro		140.9		156.6	15.7 yen depreciation

- 1 -

Sales increased 2 trillion 46.4 billion yen (19%) compared to the previous fiscal year (“year-on-year”) to 13 trillion 20.8 billion yen. This significant increase was mainly due to significant increases in sales in the Financial Services, Game & Network Services (“G&NS”), Music and Imaging & Sensing Solutions (“I&SS”) segments. On a constant currency basis, sales increased approximately 13% year-on-year. For further details about the impact of foreign exchange rate fluctuations on sales and operating income (loss), see Note on page 10.

Operating income decreased 93.6 billion yen year-on-year to 1 trillion 208.8 billion yen. This decrease was mainly due to a significant decrease in operating income in the Financial Services segment and a decrease in operating income in the I&SS segment, partially offset by increases in operating income in the G&NS and Music segments.

Operating income for the current fiscal year included the following:

· Remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method: 6.0 billion yen (Music segment)

· Realized and remeasurement gains resulting from the transfer of a portion of shares of Sony Payment Services Inc. (“Sony Payment Services”): 19.8 billion yen (Financial Services segment)

Operating income for the previous fiscal year included the following:

· Impact of litigation settlements, net of expenses, received in relation to lawsuits for Recorded Music and Music Publishing: 5.7 billion yen (Music segment)

· Recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life Insurance Co., Ltd. (“Sony Life”) which occurred in the previous fiscal year: 22.1 billion yen (Financial Services segment)

The share of profit (loss) of investments accounted for using the equity method, recorded within operating income, decreased 13.9 billion yen year-on-year to 10.5 billion yen. This significant decrease was mainly due to a decrease in the share of profit of investments in All Other.

The net effect of financial income and expenses was income of 59.8 billion yen, compared to an expense of 27.9 billion yen in the previous fiscal year. This significant improvement was primarily due to the recording of unrealized gains mainly on Sony’s shares of Spotify Technology S.A. in the current fiscal year, compared to the recording of unrealized losses on such shares in the previous fiscal year.

Income before income taxes was 1 trillion 268.7 billion yen, essentially flat year-on-year.

During the current fiscal year, Sony recorded 288.2 billion yen of income tax expense, resulting in an effective tax rate of 22.7%, which was higher than the effective tax rate of 20.6% in the previous fiscal year. This higher tax rate was mainly due to the absence of a decrease in deferred tax liabilities that occurred in the previous fiscal year related to Japan controlled foreign company taxation, partially offset mainly by a 7.6 billion yen decrease in tax expense in the current fiscal year from the dissolution of a subsidiary.

Net income attributable to Sony Group Corporation’s stockholders, which deducts net income attributable to noncontrolling interests, decreased 34.7 billion yen year-on-year to 970.6 billion yen.

Adjusted OIBDA was 1 trillion 826.1 billion yen, essentially flat year-on-year. This result was mainly due to a significant increase in Adjusted OIBDA in the G&NS segment as well as increases in Adjusted OIBDA in the Music and I&SS segments, substantially offset by a significant decrease in Adjusted OIBDA in the Financial Services segment. Adjusted EBITDA was 1 trillion 818.0 billion yen, essentially flat year-on-year. This result was mainly due to the same factors affecting Adjusted OIBDA and a decrease in net foreign exchange losses recorded within financial expenses.

- 2 -

Cash Flows

For Consolidated Statements of Cash Flows, charts showing Sony’s cash flow information for all segments, all segments excluding the Financial Services segment and the Financial Services segment alone, please refer to pages F-8 and F-19.

Operating Activities: During the current fiscal year, there was a net cash inflow of 1 trillion 373.2 billion yen from operating activities, an increase of 1 trillion 58.5 billion yen year-on-year.

For all segments excluding the Financial Services segment, there was a net cash inflow of 1 trillion 177.8 billion yen, an increase of 762.4 billion yen year-on-year. This increase was primarily due to a decrease in inventories compared to an increase in the previous fiscal year and a year-on-year increase in income before income taxes after taking into account non-cash adjustments (including depreciation and amortization, including amortization of contract costs, other operating (income) expense, net and (gain) loss on securities, net). This increase in net cash inflow was partially offset by the negative impact of a larger increase in trade receivables and contract assets.

The Financial Services segment had a net cash inflow of 246.4 billion yen, compared to a net cash outflow of 56.3 billion yen in the previous fiscal year. This change was mainly due to a year-on-year increase in sales of investments in the Financial Services segment.

Investing Activities: During the current fiscal year, Sony used 818.9 billion yen of net cash in investing activities, a decrease of 233.8 billion yen year-on-year.

For all segments excluding the Financial Services segment, there was a net cash outflow of 794.2 billion yen, a decrease of 237.8 billion yen year-on-year. This decrease was mainly due to the acquisition of shares of Bungie, Inc., an additional investment in Epic Games, Inc. and a payment related to the acquisition of Industrial Media, all of which were incurred in the previous fiscal year.

The Financial Services segment used 25.7 billion yen of net cash in investing activities, essentially flat year-on-year.

Financing Activities: Net cash outflow from financing activities during the current fiscal year was 210.7 billion yen, compared to a net cash inflow of 84.3 billion yen in the previous fiscal year.

For all segments excluding the Financial Services segment, there was a 197.3 billion yen net cash outflow, compared to a net cash inflow of 95.5 billion yen in the previous fiscal year. The cash outflow in the current fiscal year was primarily due to the procurement of long-term bank loans in the previous fiscal year and a year-on-year increase in payments for the repurchase of Sony’s own common stock.

In the Financial Services segment, there was a 63.4 billion yen net cash outflow, an increase of 10.8 billion yen year-on-year. This increase was mainly due to an increase in dividend payments.

Total Cash and Cash Equivalents: Accounting for the above factors and the effect of fluctuations in foreign exchange rates, the total outstanding balance of cash and cash equivalents as of March 31, 2024 was 1 trillion 907.1 billion yen. Cash and cash equivalents of all segments excluding the Financial Services segment was 993.3 billion yen as of March 31, 2024, an increase of 268.9 billion yen compared with the balance as of March 31, 2023. Within the Financial Services segment, the outstanding balance of cash and cash equivalents was 913.8 billion yen as of March 31, 2024, an increase of 157.3 billion yen compared with the balance as of March 31, 2023.

- 3 -

Outlook for the Fiscal Year Ending March 31, 2025

The forecast for consolidated results for the fiscal year ending March 31, 2025 is as follows:

	(Yen in billions)
Consolidated	March 31, 2024 Results			March 31, 2025 May Forecast			Change from March 31, 2024 Results
Sales		13,020.8			12,310		¥	-710.8 bil	-5.5	%
Operating income		1,208.8			1,275			+66.2 bil	+5.5
Operating income margin		9.3	%		10.4	%		+1.1 pts	-
Income before income taxes		1,268.7			1,255			-13.7 bil	-1.1
Net income attributable to Sony Group Corporation’s stockholders		970.6			925			-45.6 bil	-4.7
Adjusted OIBDA		1,826.1			1,940			+113.9 bil	+6.2
Adjusted EBITDA		1,818.0			1,930			+112.0 bil	+6.2

(Yen in billions)

Sony without Financial Services

March 31, 2024 Results

March 31, 2025 May Forecast

Change from
March 31, 2024 Results

Sales

11,265.0

11,400

+135.0 bil

+1.2%

Operating income

1,035.3

1,130

+94.7 bil

+9.2

Operating income margin

9.2

9.9

+0.7 pts

Income before income taxes

1,145.1

1,110

-35.1 bil

-3.1

Net income attributable to Sony Group Corporation’s stockholders

896.6

820

-76.6 bil

-8.5

Adjusted OIBDA

1,644.6

1,770

+125.4 bil

+7.6

Adjusted EBITDA

1,686.5

1,760

+73.5 bil

+4.4

Net cash provided by operating activities

1,177.8

1,400

+222.2 bil

+18.9

Assumed foreign currency exchange rates for the fiscal year ending March 31, 2025 are below.

	(For your reference) Average foreign currency exchange rates for the fiscal year ended March 31, 2024	Assumed foreign currency exchange rates for the fiscal year ending March 31, 2025
1 U.S. dollar	144.4 yen	approximately 145 yen
1 Euro	156.6 yen	approximately 157 yen

Sales are expected to decrease year-on-year primarily due to an expected significant decrease in sales in the Financial Services segment and expected decreases in the Entertainment, Technology & Services and G&NS segments, partially offset by an expected significant increase in sales in the I&SS segment and an expected increase in sales in the Music segment.

Operating income is expected to increase year-on-year primarily due to an expected significant increase in operating income in the I&SS segment and expected increases in operating income in the G&NS and Music segments, partially offset by an expected decrease in operating income in the Financial Services segment as well as a significant increase in the operating loss in All Other, Corporate and elimination.

Income before income taxes is expected to be essentially flat year-on-year, mainly due to an expected decrease in financial income as a result of unrealized gains and losses on securities not being included in the May forecast, compared to the previous fiscal year in which Sony recorded 71.4 billion yen of unrealized gains on securities, substantially offset by the impact of the above-mentioned increase in operating income.

Net income attributable to Sony Group Corporation’s stockholders is expected to decrease year-on-year, mainly due to an expected increase in income taxes resulting from a decrease in tax credits in both Japan and the United States.

- 4 -

Adjusted OIBDA is expected to increase year-on-year primarily due to an expected significant increase in Adjusted OIBDA in the I&SS segment as well as expected increases in Adjusted OIBDA in the Music and G&NS segments, partially offset by an expected significant increase in Adjusted OIBDA loss in All Other, Corporate and elimination as well as an expected decrease in Adjusted OIBDA in the Financial Services segment. Adjusted EBITDA is expected to increase year-on-year due to the same factors affecting Adjusted OIBDA.

- 5 -

Business Segment Information

Sales in each business segment represents sales recorded before intersegment transactions are eliminated. Operating income (loss) in each business segment represents operating income (loss) reported before intersegment transactions are eliminated and excludes unallocated corporate expenses. For details regarding each segment’s product categories, please refer to page F-14.

Please refer to “Supplemental Information” on pages 12 to 14 for details of the reconciliation of Adjusted OIBDA from operating income in accordance with IFRS for the fiscal years ended March 31, 2023 and 2024, respectively. As the results for the fiscal year ended March 31, 2023 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the fiscal year ended March 31, 2023.

(Yen in billions)

March 31, 2023 Results Restated

March 31, 2024 Results

March 31, 2025 May Forecast

Game & Network Services (G&NS)

Sales

3,644.6

4,267.7

4,200

Operating income

250.0

290.2

310

Adjusted OIBDA

337.0

407.9

420

Music

Sales

1,380.6

1,619.0

1,690

Operating income

263.1

301.7

315

Adjusted OIBDA

316.4

368.7

400

Pictures

Sales

1,369.4

1,493.1

1,480

Operating income

119.3

117.7

120

Adjusted OIBDA

168.2

171.2

170

Entertainment, Technology & Services (ET&S)

Sales

2,476.0

2,453.7

2,370

Operating income

179.5

187.4

190

Adjusted OIBDA

276.9

289.1

290

Imaging & Sensing Solutions (I&SS)

Sales

1,402.2

1,602.7

1,840

Operating income

212.2

193.5

270

Adjusted OIBDA

408.9

441.4

545

All Other, Corporate and elimination

Operating loss

(39.8

)

(55.2

)

(75

)

Adjusted OIBDA

(12.9

)

(33.7

)

(55

)

Sony without Financial Services^*1

Sales

10,102.0

11,265.0

11,400

Operating income

983.3

1,035.3

1,130

Adjusted OIBDA

1,493.5

1,644.6

1,770

Adjusted EBITDA^*2

1,515.6

1,686.5

1,760

Financial Services^*1

Financial services revenue

889.1

1,770.0

910

Operating income

318.1

173.6

145

Adjusted OIBDA

322.4

181.5

170

Consolidated^*1

Sales

10,974.4

13,020.8

12,310

Operating income

1,302.4

1,208.8

1,275

Adjusted OIBDA

1,816.9

1,826.1

1,940

Adjusted EBITDA^*2

1,797.6

1,818.0

1,930

^*1 Transactions between the Financial Services segment and Sony without the Financial Services segment are included in those respective figures, but are eliminated in the consolidated figures. Because such eliminations are included in All Other, Corporate and elimination in full in the above chart, the figures for Sony without the Financial Services segment differ from the sum of the figures for all segments excluding the Financial Services segment (the same applies below).

^*2 The differences between Adjusted EBITDA and Adjusted OIBDA on a consolidated basis represent financial income and financial expenses (excluding interest expenses, net, and gains on revaluation of equity instruments, net). Adjusted EBITDA by segment is not calculated and disclosed because Sony does not include financial income and financial expenses in its performance evaluations by segment, mainly due to the fact that Sony manages its foreign exchange exposure centrally and globally, except for the Financial Services segment.

- 6 -

Game & Network Services (G&NS)

Results for the fiscal year ended March 31, 2024

Sales increased 623.1 billion yen (17%) year-on-year to 4 trillion 267.7 billion yen (a 9% increase on a constant currency basis). This significant increase in sales was mainly due to an increase in sales of non-first-party titles, including add-on content, and the impact of foreign exchange rates.

Operating income increased 40.2 billion yen year-on-year to 290.2 billion yen. This increase in operating income was mainly due to the impact of the above-mentioned increase in sales of non-first-party titles and the positive impact of foreign exchange rates, partially offset by the impact of an increase in losses from hardware, mainly due to promotions, and the impact of a decrease in sales of first-party titles. During the current fiscal year, there was a 38.6 billion yen positive impact from foreign exchange rate fluctuations.

Adjusted OIBDA significantly increased 70.9 billion yen year-on-year to 407.9 billion yen due to the same factors affecting operating income.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to decrease mainly due to an expected decrease in sales of hardware resulting from lower unit sales, partially offset by an expected increase in sales of non-first-party titles including add-on content. Operating income and Adjusted OIBDA are expected to increase mainly due to a decrease in losses from hardware resulting from the above-mentioned expected lower unit sales and the impact of an expected increase in Network Services sales, primarily from PlayStation®Plus, partially offset by the impact of an expected decrease in sales of first-party titles.

Music

The Music segment results include the yen-based results of Sony Music Entertainment (Japan) Inc. and the yen-translated results of Sony Music Entertainment (“SME”) and Sony Music Publishing LLC (“SMP”), which aggregate the results of their worldwide subsidiaries on a U.S. dollar basis.

Results for the fiscal year ended March 31, 2024

Sales increased 238.3 billion yen year-on-year (17%) to 1 trillion 619.0 billion yen (a 12% increase on a constant currency basis). This significant increase in sales was primarily due to an increase in revenues from streaming services, primarily from paid subscriptions, in Recorded Music and Music Publishing and the impact of foreign exchange rates, as well as an increase in revenues from merchandise, live and other sales in Recorded Music.

Operating income increased 38.6 billion yen year-on-year to 301.7 billion yen. This increase in operating income was primarily due to the impact of the above-mentioned increases in sales for Recorded Music and Music Publishing, as well as the positive impact of foreign exchange rates and a 6.0 billion yen remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method. These factors were partially offset by an increase in selling, general and administrative expenses, as well as the impact of litigation settlements, net of expenses, of 5.7 billion yen received in the previous fiscal year in relation to lawsuits for Recorded Music and Music Publishing.

Adjusted OIBDA increased 52.3 billion yen year-on-year to 368.7 billion yen, mainly due to the same factors affecting operating income, excluding the above-mentioned impact of litigation settlements and the remeasurement gain.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to increase year-on-year mainly due to higher revenues primarily from streaming services in Recorded Music and Music Publishing. Operating income is expected to increase year-on-year mainly due to the impact of the above-mentioned increase in sales, partially offset by an expected increase in depreciation and amortization expenses as well as the absence of the 6.0 billion yen remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method, which was recorded in the fiscal year ended March 31, 2024. Adjusted OIBDA is also expected to increase year-on-year primarily due to the same factors affecting operating income, excluding the above-mentioned increase in depreciation and amortization expenses and the remeasurement gain.

- 7 -

Pictures

The Pictures segment results are the yen-translated results of Sony Pictures Entertainment Inc. (“SPE”), which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis. Management analyzes the results of SPE in U.S. dollars, so discussion of certain portions of its results is specified as being on “a U.S. dollar basis.”

Results for the fiscal year ended March 31, 2024

Sales increased 123.6 billion yen, a 9% increase year-on-year (a 2% increase on a U.S. dollar basis), to 1 trillion 493.1 billion yen. This increase in sales on a U.S. dollar basis was primarily due to an increase in theatrical releases and higher revenues for Crunchyroll resulting from paid subscriber growth. These increases in sales were partially offset by a decrease in series deliveries in Television Productions due to the impact of the strikes in Hollywood and lower licensing revenues from catalog product in Motion Pictures compared to the previous fiscal year, which benefitted from the contribution of several franchise films released theatrically in the fiscal year ended March 31, 2022.

Operating income was 117.7 billion yen, essentially flat year-on-year (a 10% decrease on a U.S. dollar basis). This decrease in operating income on a U.S. dollar basis was primarily due to higher marketing costs in support of a greater number of theatrical releases, substantially offset by the impact of the above-mentioned increase in sales.

Adjusted OIBDA was 171.2 billion yen, essentially flat year-on-year (a 6% decrease on a U.S. dollar basis), primarily due to the same factors affecting operating income.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to be essentially flat year-on-year due to a decrease in series deliveries in Television Productions mainly due to the impact of the strikes in Hollywood, substantially offset by expected higher sales in Media Networks, primarily from Crunchyroll, and expected higher sales for films to be released theatrically in the fiscal year ending March 31, 2025 including several franchise films. Operating income and Adjusted OIBDA are expected to be essentially flat year-on-year due to the impact of the above-mentioned increase in sales for Media Networks, substantially offset by the impact of the above-mentioned decrease in sales for Television Productions.

Entertainment, Technology & Services (ET&S)

Results for the fiscal year ended March 31, 2024

Sales were 2 trillion 453.7 billion yen, essentially flat year-on-year (a 5% decrease on a constant currency basis). This result was primarily due to a decrease in sales of televisions resulting from lower unit sales, partially offset by the impact of foreign exchange rates.

Operating income increased 7.9 billion yen year-on-year to 187.4 billion yen. This increase in operating income was primarily due to the positive impact of foreign exchange rates and reductions in operating expenses, partially offset by the impact of the above-mentioned lower unit sales of televisions. During the current fiscal year, there was a 20.5 billion yen positive impact from foreign exchange rate fluctuations.

Adjusted OIBDA increased 12.2 billion yen year-on-year to 289.1 billion yen, primarily due to the same factors affecting operating income.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to decrease primarily due to a decrease in sales of televisions resulting from lower unit sales. Operating income and Adjusted OIBDA are expected to be essentially flat year-on-year due to reductions in operating expenses, substantially offset by the impact of the above-mentioned lower unit sales of televisions.

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Imaging & Sensing Solutions (I&SS)

Results for the fiscal year ended March 31, 2024

Sales increased 200.6 billion yen (14%) year-on-year to 1 trillion 602.7 billion yen (a 7% increase on a constant currency basis). This significant increase in sales was mainly due to an increase in sales of image sensors for mobile products resulting from an increase in unit sales as well as an improvement in the product mix, and the impact of foreign exchange rates.

Operating income decreased 18.7 billion yen year-on-year to 193.5 billion yen. This decrease in operating income was mainly due to an increase in depreciation and amortization expenses, an increase in costs associated with the launch of mass production of a new image sensor for mobile products, as well as an increase in manufacturing costs. These negative factors were partially offset by the impact of the above-mentioned increase in sales and the positive impact of foreign exchange rates. During the current fiscal year, there was a 62.3 billion yen positive impact from foreign exchange rate fluctuations.

Adjusted OIBDA increased 32.6 billion yen year-on-year to 441.4 billion yen, mainly due to the impact of the above-mentioned increase in sales and the positive impact of foreign exchange rates. These positive factors were partially offset by the above-mentioned increase in costs associated with the launch of mass production of a new image sensor for mobile products and increase in manufacturing costs.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to significantly increase primarily due to an expected increase in sales of image sensors for mobile products resulting from an increase in unit sales as well as an improvement in the product mix. Operating income is expected to significantly increase year-on-year primarily due to the impact of the above-mentioned increase in sales and a decrease in costs associated with the launch of mass production of a new image sensor for mobile products, partially offset by an increase in manufacturing costs and an increase in depreciation and amortization expenses. Adjusted OIBDA is expected to significantly increase due to the same factors affecting operating income, excluding the above-mentioned increase in depreciation and amortization expenses.

Financial Services

The Financial Services segment results include Sony Financial Group Inc. (“SFGI”) and SFGI’s consolidated subsidiaries such as Sony Life, Sony Assurance Inc., and Sony Bank Inc. The results discussed in the Financial Services segment differ from the results that SFGI and SFGI’s consolidated subsidiaries disclose separately on a Japanese statutory basis.

Results for the fiscal year ended March 31, 2024

Financial services revenue increased 880.9 billion yen year-on-year to 1 trillion 770.0 billion yen, mainly due to a significant increase in revenue at Sony Life. Revenue at Sony Life increased 843.1 billion yen year-on-year to 1 trillion 523.9 billion yen, mainly due to an increase in net gains on investments in the separate accounts related to market fluctuations.

Operating income decreased 144.5 billion yen year-on-year to 173.6 billion yen. This significant decrease in operating income was mainly due to a significant decrease in operating income at Sony Life, as well as the recording of a 22.1 billion yen gain from the recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life in the previous fiscal year, partially offset by the recording of 19.8 billion yen in realized and remeasurement gains resulting from the transfer of a portion of shares of Sony Payment Services. Operating income at Sony Life decreased 143.5 billion yen year-on-year to 126.4 billion yen, mainly due to the decrease in net gains related to market fluctuations for variable life insurance and other products, and the recording of a gain from the sale of real estate in the previous fiscal year.

Adjusted OIBDA significantly decreased 140.9 billion yen year-on-year to 181.5 billion yen, primarily due to the same factors affecting operating income, excluding the above-mentioned realized and remeasurement gains and the impact of the recovery of the unauthorized withdrawal of funds.

Forecast for the fiscal year ending March 31, 2025

Financial services revenue is expected to significantly decrease year-on-year primarily due to absence of the increase in net gains on investments related to market fluctuations in the separate accounts at Sony Life recorded in the fiscal year ended March 31, 2024. Operating income is expected to decrease year-on-year primarily due to the absence of the realized and remeasurement gains resulting from the transfer of a portion of shares of Sony Payment Services, as well as the absence of recording of the gains related to market fluctuations for variable life insurance and other products in the fiscal year ended March 31, 2024. Adjusted OIBDA is expected to decrease due to the same factors affecting operating income, excluding the above-mentioned realized and remeasurement gains.

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The effects of future gains and losses on investments held by the Financial Services segment due to market fluctuations have not been incorporated within the above forecast as it is difficult for Sony to predict market trends in the future. Accordingly, future market fluctuations could further impact the above forecast.

The above forecast is based on management’s current expectations and is subject to uncertainties and changes in circumstances. Actual results may differ materially from those included in this forecast due to a variety of factors. See “Cautionary Statement” below.

Note

Sales on a Constant Currency Basis and Impact of Foreign Exchange Rate Fluctuations

The descriptions of sales on a constant currency basis reflect sales calculated by applying the yen’s monthly average exchange rates from the same period of the previous fiscal year to local currency-denominated monthly sales in the relevant period of the current fiscal year. For SME and SMP in the Music segment, and in the Pictures segment, the constant currency amounts are calculated by applying the monthly average U.S. dollar / yen exchange rates after aggregation on a U.S. dollar basis.

Results for the Pictures segment are described on a U.S. dollar basis as the Pictures segment reflects the operations of SPE, a U.S.-based operation that aggregates the results of its worldwide subsidiaries in U.S. dollars.

The impact of foreign exchange rate fluctuations on sales is calculated by applying the change in the yen’s periodic weighted average exchange rate for the same period of the previous fiscal year from the relevant period of the current fiscal year to the major transactional currencies in which the sales are denominated. The impact of foreign exchange rate fluctuations on operating income (loss) is calculated by subtracting from the impact on sales the impact on cost of sales and selling, general and administrative expenses calculated by applying the same major transactional currencies calculation process to cost of sales and selling, general and administrative expenses as for the impact on sales. The I&SS segment enters into its own foreign exchange hedging transactions, and the impact of those transactions is included in the impact of foreign exchange rate fluctuations on sales and operating income (loss) for that segment.

This information is not a substitute for Sony’s consolidated financial statements measured in accordance with IFRS. However, Sony believes that these disclosures provide additional useful analytical information to investors regarding the operating performance of Sony.

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Financial Targets of Mid-Range Plan

(1) Financial Targets and Results of the Fourth Mid-Range Plan

In the Fourth Mid-Range Plan for the three fiscal years started on April 1, 2021 and ended on March 31, 2024, Sony established a financial target (Group KPI) of cumulative Adjusted EBITDA of 4.3 trillion yen on a consolidated basis. As a result of progress exceeding the initial plan, mainly in the Music and Pictures segments, the cumulative results were approximately 5.1 trillion yen, 19% higher than the target.

(2) Financial Targets of the Fifth Mid-Range Plan

In the Fifth Mid-Range Plan for the three fiscal years started on April 1, 2024 and ending on March 31, 2027, Sony has placed greater emphasis on profit-based growth, and has set as the most important metrics (Group KPIs) the growth rate of consolidated operating income and the operating income margin for Sony without the Financial Services segment. Specifically, Sony will target an average annual growth rate of consolidated operating income for the three-year period of 10% or more, and a three-year cumulative consolidated operating income margin of 10% or more.

(3) Shareholder Returns

Regarding shareholder returns, Sony plans to place emphasis on its total payout ratio, which Sony expects to gradually increase throughout the period of the Fifth Mid-Range Plan, aiming for approximately 40% in the fiscal year ending March 31, 2027, the final fiscal year of the plan. To achieve this target, Sony has set parameters of 250 billion yen for the repurchase of shares in the fiscal year ending March 31, 2025, which exceeds the amount Sony acquired in the fiscal year ended March 31, 2024. Please refer to the Note “Subsequent Events (Setting of parameters for repurchase of shares of its own common stock)” on Page F-22 for more details. Regarding dividends, Sony’s policy is to continue to increase dividends steadily while accelerating the pace of dividend increases.

Dividend Information

In light of the consolidated financial results forecast for the fiscal year ending March 31, 2025 described in “Outlook for the Fiscal Year Ending March 31, 2025” above and other factors, Sony has determined the dividend forecasted for the fiscal year ending March 31, 2025 as follows. Sony intends to determine the actual amount of dividends based on an overall consideration of its consolidated operating results, financial condition, future business expansions and other factors.

	Dividend per share (Yen)
	March 31, 2023 Actual Dividend		March 31, 2024 Actual Dividend		March 31, 2025 Dividend Forecast
Interim dividend		35		40		50
Year-end dividend		40		45		10	*
Total		75		85		-	*

* As described in the Note “Subsequent Events (Stock Split)” on Page F-22, Sony Group Corporation decided at the Board of Directors meeting held on May 14, 2024 to conduct a stock split, scheduled to be effective on October 1, 2024 with a record date of September 30, 2024. Each share of Sony’s common stock will be split into five (5) shares per share. The above year-end dividend per share forecast for the fiscal year ending March 31, 2025 is based on a number of shares taking into account the stock split. The total annual dividend per share forecast for the fiscal year ending March 31, 2025 is not presented because the total of the interim dividend and the year-end dividend cannot be calculated due to effect of the stock split. Without taking the stock split into account, the year-end dividend per share forecast for the fiscal year ending March 31, 2025 would be 50 yen and the total annual dividend per share forecast for the fiscal year ending March 31, 2025 would be 100 yen.

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Basic Views on Selection of Accounting Standards

Sony has voluntarily adopted IFRS 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.

Supplemental Information

Regarding Adjusted OIBDA and Adjusted EBITDA

Sony believes that Adjusted OIBDA and Adjusted EBITDA are performance metrics suitable for the long-term management that Sony prioritizes. This is because (i) they represent the sustainable earnings power of the business as they do not include the effects of one-time gains and losses, (ii) they enable management to confirm that all the businesses of the Sony Group, including the Financial Services business, are expanding over the mid- to long-term through cycles of investment and return, and (iii) they are often used to calculate corporate value. Adjusted OIBDA and Adjusted EBITDA are not measures in accordance with IFRS. However, Sony believes that these disclosures may be useful information to investors. Adjusted OIBDA and Adjusted EBITDA should be considered in addition to, not as a substitute for, Sony’s results in accordance with IFRS.

Adjusted OIBDA (Operating Income Before Depreciation and Amortization) is calculated by the following formula:

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

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is calculated by the following formula:

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

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The following table shows a reconciliation of Adjusted OIBDA from operating income in accordance with IFRS for the fiscal years ended March 31, 2023 and 2024, respectively.

As the results for the fiscal year ended March 31, 2023 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the fiscal year ended March 31, 2023.

	(Yen in billions)
	Fiscal year ended March 31
	2023 Restated			2024
Game & Network Services (G&NS)
Operating income		250.0			290.2
Depreciation and amortization expense^*		87.0			117.7
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		337.0			407.9
Music
Operating income		263.1			301.7
Depreciation and amortization expense^*		59.0			73.1
(Profit) / loss amount that Sony deems non-recurring^**		(5.7	)		(6.0	)
Adjusted OIBDA		316.4			368.7
Pictures
Operating income		119.3			117.7
Depreciation and amortization expense^*		48.9			53.5
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		168.2			171.2
Entertainment, Technology & Services (ET&S)
Operating income		179.5			187.4
Depreciation and amortization expense^*		97.4			101.7
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		276.9			289.1
Imaging & Sensing Solutions (I&SS)
Operating income		212.2			193.5
Depreciation and amortization expense^*		196.7			247.9
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		408.9			441.4
All Other, Corporate and elimination
Operating loss		(39.8	)		(55.2	)
Depreciation and amortization expense^*		26.8			21.5
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		(12.9	)		(33.7	)
Sony without Financial Services
Operating income		983.3			1,035.3
Depreciation and amortization expense^*		515.9			615.4
(Profit) / loss amount that Sony deems non-recurring^**		(5.7	)		(6.0	)
Adjusted OIBDA		1,493.5			1,644.6
Financial Services
Operating income		318.1			173.6
Depreciation and amortization expense^*		26.3			27.7
(Profit) / loss amount that Sony deems non-recurring^**		(22.1	)		(19.8	)
Adjusted OIBDA		322.4			181.5
Consolidated
Operating income		1,302.4			1,208.8
Depreciation and amortization expense^*		542.2			643.1
(Profit) / loss amount that Sony deems non-recurring^**		(27.8	)		(25.8	)
Adjusted OIBDA		1,816.9			1,826.1

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The following table shows a reconciliation of net income attributable to Sony Group Corporation’s stockholders reported in accordance with IFRS to Adjusted EBITDA for the fiscal years ended March 31, 2023 and 2024, respectively.

As the results for the fiscal year ended March 31, 2023 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the fiscal year ended March 31, 2023.

Consolidated

Sony without
Financial Services

(Yen in billions)

Fiscal year ended March 31

2023
Restated

2024

2023
Restated

2024

Net income attributable to Sony Group Corporation’s stockholders

1,005.3

970.6

818.1

896.6

Net income attributable to noncontrolling interests

6.5

9.9

6.1

9.4

Income taxes

262.7

288.2

172.5

239.1

Interest expenses, net, recorded in Financial income and Financial expense

4.0

3.4

4.0

3.4

(Gain) / loss on revaluation of equity instruments, net, recorded in Financial income and Financial expense

4.6

(71.4

)

4.6

(71.4

)

Depreciation and amortization expense*

542.2

643.1

515.9

615.4

(Profit) / loss amount that Sony deems non-recurring**

(27.8

)

(25.8

)

(5.7

)

(6.0

)

Adjusted EBITDA

1,797.6

1,818.0

1,515.6

1,686.5

* Depreciation and amortization expense excludes amortization for film costs and broadcasting rights, as well as for internally developed game content and master recordings included in Content assets.

** The following table shows the details of the profit and loss amount that Sony deems non-recurring in calculating Adjusted OIBDA and Adjusted EBITDA for the fiscal years ended March 31, 2023 and 2024, respectively.

	Consolidated						Sony without Financial Services
	(Yen in billions)						(Yen in billions)
	Fiscal year ended March 31						Fiscal year ended March 31
	2023 Restated			2024			2023 Restated			2024
(Profit) / loss amount that Sony deems non-recurring
Impact of litigation settlements, net of expenses, received in relation to lawsuits for Recorded Music and Music Publishing (Music segment)		(5.7	)		-			(5.7	)		-
Recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life which occurred in the three months ended June 30, 2021 (Financial Services segment)		(22.1	)		-			-			-
Remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method (Music segment)		-			(6.0	)		-			(6.0	)
Realized and remeasurement gains resulting from the transfer of a portion of shares of Sony Payment Services (Financial Services segment)		-			(19.8	)		-			-
Total		(27.8	)		(25.8	)		(5.7	)		(6.0	)

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Cautionary Statement

Statements made in this release 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 Japanese equity markets on the revenue and operating income of the Financial Services segment;
(xv)	shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services segment;
(xvi)	risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events;
(xvii)	the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and
(xviii)	the outcome of pending and/or future legal and/or regulatory proceedings.

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

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