6-K 1 tm255895d1_6k.htm FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of February 2025

Commission File Number: 001-06439

SONY GROUP CORPORATION

(Translation of registrant’s name into English)

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

(Address of principal executive offices)

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

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

Form 20-F x

Form 40-F ¨

SIGNATURE

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

	SONY GROUP CORPORATION (Registrant)


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

Date: February 13, 2025

List of Materials

Documents attached hereto:

Consolidated Financial Summary for the Third Quarter Ended December 31, 2024

Consolidated Financial Summary for the Third Quarter Ended December 31, 2024

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

February 13, 2025

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

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

1. Consolidated financial results for the nine months ended December 31, 2024 (from April 1, 2024 to December 31, 2024)

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

Consolidated	Sales and financial services revenue		Operating income		Income before income taxes		Net income		Net income attributable to Sony Group Corporation’s stockholders
Nine months ended	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%
December 31, 2024	10,326,820	8.2	1,203,514	22.9	1,261,167	27.1	951,225	20.9	943,873	20.8
December 31, 2023	9,539,802	20.2	979,389	-15.3	992,184	-10.8	786,469	-9.6	781,568	-9.6

Consolidated	Total comprehensive income		Adjusted OIBDA*		Adjusted EBITDA*		Basic earnings per share^*1	Diluted earnings per share^*1
Nine months ended	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen	Yen
December 31, 2024	946,015	10.7	1,722,269	18.8	1,717,576	19.5	155.83	155.25
December 31, 2023	854,544	-3.7	1,450,301	-5.1	1,437,607	-5.0	126.79	126.39

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

For all segments excluding Financial Services*	Sales and financial services revenue		Operating income		Income before income taxes		Net income attributable to Sony Group Corporation’s stockholders		Adjusted OIBDA*		Adjusted EBITDA*
Nine months ended	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%
December 31, 2024	9,236,562	9.3	1,061,437	27.6	1,119,066	25.1	842,977	15.9	1,559,735	21.7	1,555,018	17.9
December 31, 2023	8,454,056	12.3	831,933	-6.4	894,761	1.0	727,471	2.1	1,281,919	1.5	1,319,258	2.3

(2) Consolidated financial position

	Total assets	Total equity	Equity attributable to Sony Group Corporation’s stockholders	Ratio of equity attributable to Sony Group Corporation’s stockholders to total assets
As of	Yen in millions	Yen in millions	Yen in millions	%
December 31, 2024	35,991,547	8,524,922	8,185,199	22.7
March 31, 2024	34,107,490	7,756,105	7,587,177	22.2

2. Dividends

	Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2024	-	40.00	-	45.00	85.00
Fiscal year ending March 31, 2025	-	50.00	-
Fiscal year ending March 31, 2025 (Forecast)^*2				10.00	-

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

Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above year-end dividend per share forecast for the fiscal year ending March 31, 2025 is based on a number of shares taking into account the stock split. The total annual dividend per share forecast for the fiscal year ending March 31, 2025 is not presented because the total of the interim dividend and the year-end dividend cannot be calculated due to the effect of the stock split. Without taking the stock split into account, the year-end dividend per share forecast for the fiscal year ending March 31, 2025 would be 50 yen and the total annual dividend per share forecast for the fiscal year ending March 31, 2025 would be 100 yen.

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

(Percentages indicate year-on-year changes.)

Fiscal year ending March 31, 2025	Sales and financial services revenue		Operating income		Income before income taxes		Net income attributable to Sony Group Corporation’s stockholders		Adjusted OIBDA*		Adjusted EBITDA*
	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%
Consolidated	13,200,000	1.4	1,335,000	10.4	1,385,000	9.2	1,080,000	11.3	2,020,000	10.6	2,010,000	10.6
For all segments excluding Financial Services*	11,900,000	5.6	1,190,000	14.9	1,240,000	8.3	975,000	8.7	1,850,000	12.5	1,840,000	9.1

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

Adjusted OIBDA (Operating Income Before Depreciation and Amortization), Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and figures for all segments excluding Financial Services are not measures in accordance with IFRS Accounting Standards. However, Sony Group Corporation believes that these disclosures may be useful information to investors. Adjusted OIBDA and Adjusted EBITDA are calculated by the following formulas, respectively. For the reconciliations for Adjusted OIBDA and Adjusted EBITDA, please refer to “Q3 FY2024 Consolidated Financial Results” (the presentation material for the earnings announcement) disclosed on the same date as this document on the Timely Disclosure Network (“TDnet”) of the TSE, the Electronic Data Gathering, Analysis, and Retrieval (“EDGAR”) system of the U.S. Securities and Exchange Commission (the “SEC”) and the website of Sony Group Corporation.

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

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

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

* Notes

(1)	Significant changes in scope of consolidation during the period		: No

(2)	Changes in accounting policies and changes in accounting estimates:

	(i)	Changes in accounting policies required by IFRS Accounting Standards	: Yes
	(ii)	Changes in accounting policies due to other reasons	: No
	(iii)	Changes in accounting estimates	: No

(3)	Number of issued shares (common stock):

(i)

Total number of issued shares at the end of the period (including treasury stock)

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

(ii)

Number of shares of treasury stock at the end of the period

As of December 31, 2024	124,626,241	shares
As of March 31, 2024	198,915,015	shares

(iii)

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

Nine months ended December 31, 2024	6,057,239,707	shares
Nine months ended December 31, 2023	6,164,393,200	shares

Notes:

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

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

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

Proper use of earnings forecasts, and other special matters:

Please refer to “Cautionary Statement” on page 24 of the Appendix for assumptions and other matters related to the forecast of financial results.

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

(Appendix)

Table of Contents for Appendix

Condensed Quarterly Consolidated Financial Statements (Unaudited)	2

Condensed Quarterly Consolidated Statements of Financial Position	2
Condensed Quarterly Consolidated Statements of Income (Three months ended December 31)	4
Condensed Quarterly Consolidated Statements of Comprehensive Income (Three months ended December 31)	5
Condensed Quarterly Consolidated Statements of Income (Nine months ended December 31)	6
Condensed Quarterly Consolidated Statements of Comprehensive Income (Nine months ended December 31)	7
Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity (Nine months ended December 31)	8
Condensed Quarterly Consolidated Statements of Cash Flows (Nine months ended December 31)	9
Notes to Condensed Quarterly Consolidated Financial Statements	11
- Business Segment Information	11
- Going Concern Assumption	21
- Accounting Policy and Other Information	21
- Subsequent Event	23

Overview of Operating Results	24

Cautionary Statement	24

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

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

- 1 -

(Unaudited)

Condensed Quarterly Consolidated Financial Statements

Condensed Quarterly Consolidated Statements of Financial Position

	Yen in millions
	March 31, 2024		December 31, 2024		Change from March 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		1,907,113		2,491,949		584,836
Investments and advances in the Financial Services segment		398,153		435,260		37,107
Trade and other receivables, and contract assets		2,158,196		2,457,067		298,871
Inventories		1,518,644		1,389,047		(129,597	)
Other financial assets		125,365		148,497		23,132
Other current assets		669,335		635,654		(33,681	)
Total current assets		6,776,806		7,557,474		780,668
Non-current assets:
Investments accounted for using the equity method		423,744		364,988		(58,756	)
Investments and advances in the Financial Services segment		18,939,794		19,253,057		313,263
Property, plant and equipment		1,522,640		1,526,777		4,137
Right-of-use assets		503,395		541,451		38,056
Goodwill		1,487,100		1,562,400		75,300
Content assets		1,928,113		2,383,009		454,896
Other intangible assets		615,602		679,791		64,189
Deferred tax assets		499,550		504,949		5,399
Other financial assets		897,341		1,069,333		171,992
Other non-current assets		513,405		548,318		34,913
Total non-current assets		27,330,684		28,434,073		1,103,389
Total assets		34,107,490		35,991,547		1,884,057

(Continued on the following page.)

- 2 -

Condensed Quarterly Consolidated Statements of Financial Position (Continued)

	Yen in millions
	March 31, 2024			December 31, 2024			Change from March 31, 2024
LIABILITIES
Current liabilities:
Short-term borrowings		1,812,605			2,088,195			275,590
Current portion of long-term debt		217,711			296,945			79,234
Trade and other payables		2,064,905			2,297,806			232,901
Deposits from customers in the banking business		3,670,567			3,709,477			38,910
Income taxes payables		152,074			129,850			(22,224	)
Participation and residual liabilities in the Pictures segment		251,743			252,934			1,191
Other financial liabilities		116,044			123,511			7,467
Other current liabilities		1,906,396			2,187,364			280,968
Total current liabilities		10,192,045			11,086,082			894,037
Non-current liabilities:
Long-term debt		2,058,117			1,992,953			(65,164	)
Defined benefit liabilities		247,583			246,499			(1,084	)
Deferred tax liabilities		166,424			184,648			18,224
Insurance contract liabilities		12,931,995			13,042,135			110,140
Participation and residual liabilities in the Pictures segment		206,081			202,863			(3,218	)
Other financial liabilities		386,761			560,323			173,562
Other non-current liabilities		162,379			151,122			(11,257	)
Total non-current liabilities		16,159,340			16,380,543			221,203
Total liabilities		26,351,385			27,466,625			1,115,240
EQUITY
Sony Group Corporation’s stockholders’ equity:
Common stock		881,357			881,357			-
Additional paid-in capital		1,483,410			1,483,004			(406	)
Retained earnings		6,002,407			6,469,060			466,653
Accumulated other comprehensive income		(376,063	)		(361,752	)		14,311
Treasury stock, at cost		(403,934	)		(286,470	)		117,464
Equity attributable to Sony Group Corporation’s stockholders		7,587,177			8,185,199			598,022
Noncontrolling interests		168,928			339,723			170,795
Total equity		7,756,105			8,524,922			768,817
Total liabilities and equity		34,107,490			35,991,547			1,884,057

- 3 -

Condensed Quarterly Consolidated Statements of Income

	Yen in millions
	Three months ended December 31
	2023			2024			Change
Sales and financial services revenue:
Sales		3,438,092			3,693,394			255,302
Financial services revenue
Insurance revenue		146,801			158,576			11,775
Other financial services revenue		162,634			557,604			394,970
Total financial services revenue		309,435			716,180			406,745
Total sales and financial services revenue		3,747,527			4,409,574			662,047
Costs and expenses:
Cost of sales		2,504,410			2,695,564			191,154
Selling, general and administrative		554,712			576,754			22,042
Financial services expenses
Insurance service expenses		99,375			117,138			17,763
Insurance finance expenses (income)		89,750			508,504			418,754
Other financial services expenses		42,954			44,096			1,142
Total financial services expenses		232,079			669,738			437,659
Other operating (income) expense, net		(3,691	)		(5,934	)		(2,243	)
Total costs and expenses		3,287,510			3,936,122			648,612
Share of profit (loss) of investments accounted for using the equity method		3,321			(4,121	)		(7,442	)
Operating income		463,338			469,331			5,993
Financial income		33,959			41,942			7,983
Financial expenses		38,742			17,220			(21,522	)
Income before income taxes		458,555			494,053			35,498
Income taxes		91,184			118,481			27,297
Net income		367,371			375,572			8,201

Net income attributable to
Sony Group Corporation’s stockholders		363,918			373,739			9,821
Noncontrolling interests		3,453			1,833			(1,620	)

	Yen
	Three months ended December 31
	2023		2024		Change
Per share data:
Net income attributable to Sony Group Corporation’s stockholders
- Basic		59.13		62.07		2.94
- Diluted		58.96		61.82		2.86

- 4 -

Condensed Quarterly Consolidated Statements of Comprehensive Income

	Yen in millions
	Three months ended December 31
	2023			2024			Change
Net income		367,371			375,572			8,201
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		(15,272	)		145			15,417
Remeasurement of defined benefit pension plans		(578	)		(45	)		533
Share of other comprehensive income of investments accounted for using the equity method		(127	)		143			270
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income		173,013			(322,396	)		(495,409	)
Cash flow hedges		3,825			1,599			(2,226	)
Insurance finance income (expenses)		(104,893	)		221,173			326,066
Exchange differences on translating foreign operations		(155,748	)		296,282			452,030
Share of other comprehensive income of investments accounted for using the equity method		(1,868	)		3,883			5,751
Other		136			(362	)		(498	)
Total other comprehensive income, net of tax		(101,512	)		200,422			301,934
Comprehensive income		265,859			575,994			310,135

Comprehensive income attributable to
Sony Group Corporation’s stockholders		262,765			571,386			308,621
Noncontrolling interests		3,094			4,608			1,514

- 5 -

Condensed Quarterly Consolidated Statements of Income

	Yen in millions
	Nine months ended December 31
	2023			2024			Change
Sales and financial services revenue:
Sales		8,449,647			9,229,979			780,332
Financial services revenue
Insurance revenue		433,228			467,808			34,580
Other financial services revenue		656,927			629,033			(27,894	)
Total financial services revenue		1,090,155			1,096,841			6,686
Total sales and financial services revenue		9,539,802			10,326,820			787,018
Costs and expenses:
Cost of sales		6,096,395			6,524,604			428,209
Selling, general and administrative		1,548,380			1,657,605			109,225
Financial services expenses
Insurance service expenses		291,961			333,015			41,054
Insurance finance expenses (income)		528,075			490,647			(37,428	)
Other financial services expenses		122,319			130,941			8,622
Total financial services expenses		942,355			954,603			12,248
Other operating (income) expense, net		(15,813	)		(18,578	)		(2,765	)
Total costs and expenses		8,571,317			9,118,234			546,917
Share of profit (loss) of investments accounted for using the equity method		10,904			(5,072	)		(15,976	)
Operating income		979,389			1,203,514			224,125
Financial income		65,737			107,858			42,121
Financial expenses		52,942			50,205			(2,737	)
Income before income taxes		992,184			1,261,167			268,983
Income taxes		205,715			309,942			104,227
Net income		786,469			951,225			164,756

Net income attributable to
Sony Group Corporation’s stockholders		781,568			943,873			162,305
Noncontrolling interests		4,901			7,352			2,451

	Yen
	Nine months ended December 31
	2023		2024		Change
Per share data:
Net income attributable to Sony Group Corporation’s stockholders
- Basic		126.79		155.83		29.04
- Diluted		126.39		155.25		28.86

- 6 -

Condensed Quarterly Consolidated Statements of Comprehensive Income

	Yen in millions
	Nine months ended December 31
	2023			2024			Change
Net income		786,469			951,225			164,756
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		(33,276	)		(16,967	)		16,309
Remeasurement of defined benefit pension plans		(1,030	)		(880	)		150
Share of other comprehensive income of investments accounted for using the equity method		190			(1,001	)		(1,191	)
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income		(522,959	)		(537,982	)		(15,023	)
Cash flow hedges		3,523			183			(3,340	)
Insurance finance income (expenses)		411,886			458,003			46,117
Exchange differences on translating foreign operations		207,677			91,568			(116,109	)
Share of other comprehensive income of investments accounted for using the equity method		2,270			2,304			34
Other		(206	)		(438	)		(232	)
Total other comprehensive income, net of tax		68,075			(5,210	)		(73,285	)
Comprehensive income		854,544			946,015			91,471

Comprehensive income attributable to
Sony Group Corporation’s stockholders		847,369			937,069			89,700
Noncontrolling interests		7,175			8,946			1,771

- 7 -

Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity

	Yen in millions
		Common stock	Additional paid-in capital		Retained earnings		Accumulated other comprehensive income		Treasury stock, at cost		Sony Group Corporation’s stockholders’ equity		Noncontrolling interests		Total equity
Balance at April 1, 2023		880,365	1,463,807		5,092,442		(614,570	)	(223,507	)	6,598,537		58,613		6,657,150
Comprehensive income:
Net income					781,568						781,568		4,901		786,469
Other comprehensive income, net of tax							65,801				65,801		2,274		68,075
Total comprehensive income					781,568		65,801				847,369		7,175		854,544
Transfer to retained earnings					191		(191	)			-				-
Transactions with stockholders and other:
Exercise of stock acquisition rights and other		992	(1,533	)	(144	)			12,858		12,173				12,173
Stock-based compensation			9,472								9,472				9,472
Dividends declared					(98,685	)					(98,685	)	(4,866	)	(103,551	)
Purchase of treasury stock									(74,705	)	(74,705	)			(74,705	)
Reissuance of treasury stock			1,786						3,290		5,076				5,076
Transactions with noncontrolling interests shareholders and other			8,928								8,928		99,626		108,554
Balance at December 31, 2023		881,357	1,482,460		5,775,372		(548,960	)	(282,064	)	7,308,165		160,548		7,468,713

	Yen in millions
		Common stock	Additional paid-in capital		Retained earnings		Accumulated other comprehensive income		Treasury stock, at cost		Sony Group Corporation’s stockholders’ equity		Noncontrolling interests		Total equity
Balance at April 1, 2024		881,357	1,483,410		6,002,407		(376,063	)	(403,934	)	7,587,177		168,928		7,756,105
Comprehensive income:
Net income					943,873						943,873		7,352		951,225
Other comprehensive income, net of tax							(6,804	)			(6,804	)	1,594		(5,210	)
Total comprehensive income					943,873		(6,804	)			937,069		8,946		946,015
Transfer to retained earnings					(21,115	)	21,115				-				-
Transactions with stockholders and other:
Exercise of stock acquisition rights and other			3,009		(1,631	)			32,059		33,437				33,437
Stock-based compensation			3,654								3,654				3,654
Dividends declared					(115,312	)					(115,312	)	(4,873	)	(120,185	)
Purchase of treasury stock									(257,609	)	(257,609	)			(257,609	)
Reissuance of treasury stock			1						4		5				5
Cancellation of treasury stock			(3,848	)	(339,162	)			343,010		-				-
Transactions with noncontrolling interests shareholders and other			(3,222	)							(3,222	)	166,722		163,500
Balance at December 31, 2024		881,357	1,483,004		6,469,060		(361,752	)	(286,470	)	8,185,199		339,723		8,524,922

- 8 -

Condensed Quarterly Consolidated Statements of Cash Flows

	Yen in millions
	Nine months ended December 31
	2023			2024
Cash flows from operating activities:
Income before income taxes		992,184			1,261,167
Adjustments to reconcile income before income taxes to net cash provided by operating activities:
Depreciation and amortization, including amortization of contract costs		852,030			847,846
Other operating (income) expense, net		(15,813	)		(18,578	)
Gain on securities, net (other than Financial Services segment)		(31,340	)		(57,512	)
Share of (profit) loss of investments accounted for using the equity method, net of dividends		(3,032	)		16,304
Changes in assets and liabilities:
Increase in trade receivables and contract assets		(592,206	)		(228,107	)
(Increase) decrease in inventories		(88,517	)		147,099
Increase in investments and advances in the Financial Services segment		(988,372	)		(1,096,394	)
Increase in content assets		(358,830	)		(574,959	)
Increase in trade payables		252,967			308,828
Increase in insurance contract liabilities, net of insurance contract assets		789,883			761,584
Increase in deposits from customers in the banking business		419,223			169,618
Increase in borrowings in the life insurance business and the banking business		72,995			271,148
Increase (decrease) in taxes payable other than income taxes, net		(16,593	)		22,958
Increase in other financial assets and other current assets		(67,033	)		(88,325	)
Increase in other financial liabilities and other current liabilities		12,806			125,487
Income taxes paid		(251,431	)		(208,780	)
Other		(46,963	)		(35,384	)
Net cash provided by operating activities		931,958			1,624,000

(Continued on the following page.)

- 9 -

Condensed Quarterly Consolidated Statements of Cash Flows (Continued)

	Yen in millions
	Nine months ended December 31
	2023			2024
Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets		(450,017	)		(536,313	)
Proceeds from sales of property, plant and equipment and other intangible assets		10,838			13,685
Payments for investments and advances (other than Financial Services segment)		(75,072	)		(45,389	)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)		80,476			36,558
Payments for purchases of businesses and other		(170,925	)		(291,559	)
Other		(15,253	)		44,850
Net cash used in investing activities		(619,953	)		(778,168	)
Cash flows from financing activities:
Increase in short-term borrowings, net		402,152			20,892
Proceeds from issuance of long-term debt		63,660			15,138
Payments of long-term debt		(99,311	)		(138,204	)
Dividends paid		(98,424	)		(115,027	)
Payments for purchases of treasury stock		(74,705	)		(257,609	)
Capital contribution from non-controlling interests		-			150,804
Other		8,821			14,423
Net cash provided by (used in) financing activities		202,193			(309,583	)
Effect of exchange rate changes on cash and cash equivalents		24,014			48,587
Net increase in cash and cash equivalents		538,212			584,836
Cash and cash equivalents at beginning of the fiscal year		1,480,900			1,907,113
Cash and cash equivalents at end of the period		2,019,112			2,491,949

- 10 -

Notes to Condensed Quarterly Consolidated Financial Statements

Business Segment Information

(Business Segments)

Segment sales and financial services revenue

	Yen in millions
	Three months ended December 31
	2023			2024			Change
Sales and financial services revenue:
Game & Network Services -
Customers		1,428,886			1,619,876			190,990
Intersegment		15,541			62,454			46,913
Total		1,444,427			1,682,330			237,903
Music -
Customers		417,651			476,968			59,317
Intersegment		4,453			4,726			273
Total		422,104			481,694			59,590
Pictures -
Customers		365,133			397,186			32,053
Intersegment		1,194			1,038			(156	)
Total		366,327			398,224			31,897
Entertainment, Technology & Services -
Customers		725,563			693,370			(32,193	)
Intersegment		10,175			11,149			974
Total		735,738			704,519			(31,219	)
Imaging & Sensing Solutions -
Customers		477,513			481,215			3,702
Intersegment		27,645			19,703			(7,942	)
Total		505,158			500,918			(4,240	)
Financial Services -
Customers		309,435			716,180			406,745
Intersegment		2,308			2,308			-
Total		311,743			718,488			406,745
All Other -
Customers		20,192			20,801			609
Intersegment		3,703			4,974			1,271
Total		23,895			25,775			1,880
Corporate and elimination		(61,865	)		(102,374	)		(40,509	)
Consolidated total		3,747,527			4,409,574			662,047

Note:

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

- 11 -

Segment profit (loss)

	Yen in millions
	Three months ended December 31
	2023		2024			Change
Operating income (loss):
Game & Network Services		86,139		118,063			31,924
Music		76,086		97,424			21,338
Pictures		41,626		34,025			(7,601	)
Entertainment, Technology & Services		77,164		77,105			(59	)
Imaging & Sensing Solutions		99,715		97,545			(2,170	)
Financial Services		77,274		46,362			(30,912	)
All Other		2,596		(3,029	)		(5,625	)
Total		460,600		467,495			6,895
Corporate and elimination		2,738		1,836			(902	)
Consolidated operating income		463,338		469,331			5,993

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

- 12 -

(Business Segments)

Segment sales and financial services revenue

	Yen in millions
	Nine months ended December 31
	2023			2024			Change
Sales and financial services revenue:
Game & Network Services -
Customers		3,114,026			3,498,362			384,336
Intersegment		56,377			120,409			64,032
Total		3,170,403			3,618,771			448,368
Music -
Customers		1,172,767			1,356,694			183,927
Intersegment		16,282			15,219			(1,063	)
Total		1,189,049			1,371,913			182,864
Pictures -
Customers		1,082,658			1,087,132			4,474
Intersegment		3,671			4,234			563
Total		1,086,329			1,091,366			5,037
Entertainment, Technology & Services -
Customers		1,892,069			1,893,261			1,192
Intersegment		28,992			31,932			2,940
Total		1,921,061			1,925,193			4,132
Imaging & Sensing Solutions -
Customers		1,122,646			1,324,292			201,646
Intersegment		81,568			65,673			(15,895	)
Total		1,204,214			1,389,965			185,751
Financial Services -
Customers		1,090,155			1,096,841			6,686
Intersegment		6,914			6,929			15
Total		1,097,069			1,103,770			6,701
All Other -
Customers		57,012			60,289			3,277
Intersegment		10,601			10,465			(136	)
Total		67,613			70,754			3,141
Corporate and elimination		(195,936	)		(244,912	)		(48,976	)
Consolidated total		9,539,802			10,326,820			787,018

Note:

G&NS intersegment amounts primarily consist of transactions with the ET&S segment. ET&S intersegment amounts primarily consist of transactions with the G&NS segment. I&SS intersegment amounts primarily consist of transactions with the G&NS segment and the ET&S segment. Corporate and elimination includes certain brand and patent royalty income.

- 13 -

Segment profit (loss)

	Yen in millions
	Nine months ended December 31
	2023			2024			Change
Operating income (loss):
Game & Network Services		184,201			322,121			137,920
Music		230,463			273,677			43,214
Pictures		87,035			63,808			(23,227	)
Entertainment, Technology & Services		193,843			211,343			17,500
Imaging & Sensing Solutions		158,807			226,604			67,797
Financial Services		147,469			142,083			(5,386	)
All Other		7,140			(8,237	)		(15,377	)
Total		1,008,958			1,231,399			222,441
Corporate and elimination		(29,569	)		(27,885	)		1,684
Consolidated operating income		979,389			1,203,514			224,125

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

- 14 -

(Sales to Customers by Product Category)

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

	Yen in millions
	Three months ended December 31
Sales and financial services revenue:	2023		2024		Change
Game & Network Services
Digital Software and Add-on Content		631,981		718,221		86,240
Network Services		137,182		176,915		39,733
Hardware and Others		659,723		724,740		65,017
Total		1,428,886		1,619,876		190,990
Music
Recorded Music - Streaming		186,520		209,598		23,078
Recorded Music - Others		100,021		105,741		5,720
Music Publishing		86,084		95,325		9,241
Visual Media and Platform		45,026		66,304		21,278
Total		417,651		476,968		59,317
Pictures
Motion Pictures		130,441		168,475		38,034
Television Productions		130,844		121,085		(9,759	)
Media Networks		103,848		107,626		3,778
Total		365,133		397,186		32,053
Entertainment, Technology & Services
Televisions		210,967		183,143		(27,824	)
Audio and Video		133,823		128,969		(4,854	)
Still and Video Cameras		188,609		183,278		(5,331	)
Mobile Communications		76,508		65,409		(11,099	)
Other		115,656		132,571		16,915
Total		725,563		693,370		(32,193	)
Imaging & Sensing Solutions		477,513		481,215		3,702
Financial Services		309,435		716,180		406,745
All Other		20,192		20,801		609
Corporate		3,154		3,978		824
Consolidated total		3,747,527		4,409,574		662,047

- 15 -

	Yen in millions
	Nine months ended December 31
Sales and financial services revenue:	2023		2024		Change
Game & Network Services
Digital Software and Add-on Content		1,420,423		1,709,997		289,574
Network Services		395,568		497,040		101,472
Hardware and Others		1,298,035		1,291,325		(6,710	)
Total		3,114,026		3,498,362		384,336
Music
Recorded Music - Streaming		525,265		595,732		70,467
Recorded Music - Others		252,787		309,122		56,335
Music Publishing		243,948		283,532		39,584
Visual Media and Platform		150,767		168,308		17,541
Total		1,172,767		1,356,694		183,927
Pictures
Motion Pictures		385,154		452,330		67,176
Television Productions		408,460		316,098		(92,362	)
Media Networks		289,044		318,704		29,660
Total		1,082,658		1,087,132		4,474
Entertainment, Technology & Services
Televisions		507,951		473,714		(34,237	)
Audio and Video		332,072		323,845		(8,227	)
Still and Video Cameras		509,686		536,903		27,217
Mobile Communications		236,644		220,404		(16,240	)
Other		305,716		338,395		32,679
Total		1,892,069		1,893,261		1,192
Imaging & Sensing Solutions		1,122,646		1,324,292		201,646
Financial Services		1,090,155		1,096,841		6,686
All Other		57,012		60,289		3,277
Corporate		8,469		9,949		1,480
Consolidated total		9,539,802		10,326,820		787,018

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

- 16 -

(Condensed Quarterly Financial Services Separate Financial Statements)

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

Condensed Quarterly Statements of Financial Position

	Yen in millions
	Financial Services				Sony without Financial Services				Consolidated
	March 31, 2024		December 31, 2024		March 31, 2024		December 31, 2024		March 31, 2024		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	¥	913,815	¥	1,076,644	¥	993,298	¥	1,415,305	¥	1,907,113	¥	2,491,949
Investments and advances in the Financial Services segment		398,153		435,260		-		-		398,153		435,260
Trade and other receivables, and contract assets		127,016		156,346		2,033,170		2,303,752		2,158,196		2,457,067
Inventories		-		-		1,518,644		1,389,047		1,518,644		1,389,047
Other financial assets		57,254		106,151		68,111		42,346		125,365		148,497
Other current assets		50,487		13,188		625,539		630,422		669,335		635,654
Total current assets		1,546,725		1,787,589		5,238,762		5,780,872		6,776,806		7,557,474
Non-current assets:
Investments accounted for using the equity method		4,905		3,009		418,839		361,979		423,744		364,988
Investments and advances in the Financial Services segment		18,939,794		19,253,057		-		-		18,939,794		19,253,057
Investments in Financial Services, at cost		-		-		550,483		550,483		-		-
Property, plant and equipment		14,162		13,705		1,508,151		1,512,745		1,522,640		1,526,777
Right-of-use assets		76,288		77,829		428,224		464,696		503,395		541,451
Goodwill and intangible assets, including content assets		77,323		81,898		3,953,492		4,543,302		4,030,815		4,625,200
Deferred tax assets		-		-		520,613		512,092		499,550		504,949
Other financial assets		52,882		51,727		848,599		1,021,850		897,341		1,069,333
Other non-current assets		165,049		161,153		421,258		459,558		513,405		548,318
Total non-current assets		19,330,403		19,642,378		8,649,659		9,426,705		27,330,684		28,434,073
Total assets	¥	20,877,128	¥	21,429,967	¥	13,888,421	¥	15,207,577	¥	34,107,490	¥	35,991,547

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	1,802,337	¥	2,075,078	¥	227,979	¥	310,062	¥	2,030,316	¥	2,385,140
Trade and other payables		61,153		43,537		2,005,112		2,257,062		2,064,905		2,297,806
Deposits from customers in the banking business		3,670,567		3,709,477		-		-		3,670,567		3,709,477
Income taxes payables		10,050		2,370		142,024		127,480		152,074		129,850
Participation and residual liabilities in the Pictures segment		-		-		251,743		252,934		251,743		252,934
Other financial liabilities		77,523		92,269		38,522		31,241		116,044		123,511
Other current liabilities		209,555		213,860		1,704,158		1,981,695		1,906,396		2,187,364
Total current liabilities		5,831,185		6,136,591		4,369,538		4,960,474		10,192,045		11,086,082
Non-current liabilities:
Long-term debt		703,106		703,110		1,355,011		1,289,843		2,058,117		1,992,953
Defined benefit liabilities		39,284		38,751		208,299		207,748		247,583		246,499
Deferred tax liabilities		36,368		21,833		165,877		184,710		166,424		184,648
Insurance contract liabilities		12,931,995		13,042,135		-		-		12,931,995		13,042,135
Participation and residual liabilities in the Pictures segment		-		-		206,081		202,863		206,081		202,863
Other financial liabilities		214,414		347,634		175,263		215,758		386,761		560,323
Other non-current liabilities		7,607		7,793		176,767		164,743		162,379		151,122
Total non-current liabilities		13,932,774		14,161,256		2,287,298		2,265,665		16,159,340		16,380,543
Total liabilities		19,763,959		20,297,847		6,656,836		7,226,139		26,351,385		27,466,625
Equity:
Stockholders’ equity of Financial Services		1,113,169		1,132,120		-		-		-		-
Stockholders’ equity of Sony without Financial Services		-		-		7,062,657		7,641,715		-		-
Sony Group Corporation’s stockholders’ equity		-		-		-		-		7,587,177		8,185,199
Noncontrolling interests		-		-		168,928		339,723		168,928		339,723
Total equity		1,113,169		1,132,120		7,231,585		7,981,438		7,756,105		8,524,922
Total liabilities and equity	¥	20,877,128	¥	21,429,967	¥	13,888,421	¥	15,207,577	¥	34,107,490	¥	35,991,547

- 17 -

Condensed Quarterly Statements of Income

	Yen in millions
	Three months ended December 31
	Financial Services				Sony without Financial Services						Consolidated
	2023		2024		2023			2024			2023			2024
Sales	¥	-	¥	-	¥	3,439,360		¥	3,695,684		¥	3,438,092		¥	3,693,394
Financial services revenue		311,743		718,488		-			-			309,435			716,180
Total sales and financial services revenue		311,743		718,488		3,439,360			3,695,684			3,747,527			4,409,574

Cost of sales		-		-		2,508,021			2,697,991			2,504,410			2,695,564
Selling, general and administrative		-		-		552,365			576,615			554,712			576,754
Financial services expenses		234,387		672,046		-			-			232,079			669,738
Other operating (income) expense, net		82		94		(3,773	)		(6,027	)		(3,691	)		(5,934	)
Total costs and expenses		234,469		672,140		3,056,613			3,268,579			3,287,510			3,936,122

Share of profit (loss) of investments accounted for using the equity method		-		14		3,321			(4,135	)		3,321			(4,121	)

Operating income		77,274		46,362		386,068			422,970			463,338			469,331

Financial income (expenses), net		-		-		(4,784	)		24,698			(4,783	)		24,722

Income before income taxes		77,274		46,362		381,284			447,668			458,555			494,053

Income taxes		22,121		13,703		69,063			104,771			91,184			118,481

Net income		55,153		32,659		312,221			342,897			367,371			375,572

Net income of Financial Services	¥	54,999	¥	32,659	¥	-		¥	-		¥	-		¥	-

Net income of Sony without Financial Services	¥	-	¥	-	¥	308,923		¥	341,064		¥	-		¥	-

Net income attributable to Sony Group Corporation’s stockholders	¥	-	¥	-	¥	-		¥	-		¥	363,918		¥	373,739

Net income attributable to noncontrolling interests	¥	154	¥	-	¥	3,298		¥	1,833		¥	3,453		¥	1,833

- 18 -

Condensed Quarterly Statements of Income

	Yen in millions
	Nine months ended December 31
	Financial Services				Sony without Financial Services						Consolidated
	2023		2024		2023			2024			2023			2024
Sales	¥	-	¥	-	¥	8,454,056		¥	9,236,562		¥	8,449,647		¥	9,229,979
Financial services revenue		1,097,069		1,103,770		-			-			1,090,155			1,096,841
Total sales and financial services revenue		1,097,069		1,103,770		8,454,056			9,236,562			9,539,802			10,326,820

Cost of sales		-		-		6,106,427			6,531,620			6,096,395			6,524,604
Selling, general and administrative		-		-		1,542,744			1,657,167			1,548,380			1,657,605
Financial services expenses		949,269		961,532		-			-			942,355			954,603
Other operating (income) expense, net		331		238		(16,144	)		(18,817	)		(15,813	)		(18,578	)
Total costs and expenses		949,600		961,770		7,633,027			8,169,970			8,571,317			9,118,234

Share of profit (loss) of investments accounted for using the equity method		-		83		10,904			(5,155	)		10,904			(5,072	)

Operating income		147,469		142,083		831,933			1,061,437			979,389			1,203,514

Financial income (expenses), net		-		-		62,828			57,629			12,795			57,653

Income before income taxes		147,469		142,083		894,761			1,119,066			992,184			1,261,167

Income taxes		42,875		41,199		162,840			268,737			205,715			309,942

Net income		104,594		100,884		731,921			850,329			786,469			951,225

Net income of Financial Services	¥	104,143	¥	100,884	¥	-		¥	-		¥	-		¥	-

Net income of Sony without Financial Services	¥	-	¥	-	¥	727,471		¥	842,977		¥	-		¥	-

Net income attributable to Sony Group Corporation’s stockholders	¥	-	¥	-	¥	-		¥	-		¥	781,568		¥	943,873

Net income attributable to noncontrolling interests	¥	451	¥	-	¥	4,450		¥	7,352		¥	4,901		¥	7,352

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Condensed Quarterly Statements of Cash Flows

	Yen in millions
	Nine months ended December 31
	Financial Services						Sony without Financial Services						Consolidated
	2023			2024			2023			2024			2023			2024
Cash flows from operating activities:
Income (loss) before income taxes	¥	147,469		¥	142,083		¥	894,761		¥	1,119,066		¥	992,184		¥	1,261,167
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		20,926			20,457			831,104			827,389			852,030			847,846
Other operating (income) expense, net		331			237			(16,144	)		(18,815	)		(15,813	)		(18,578	)
(Gain) loss on securities, net (other than Financial Services segment)		-			-			(31,340	)		(57,512	)		(31,340	)		(57,512	)
Changes in assets and liabilities:
(Increase) decrease in trade receivables and contract assets		(38,263	)		(29,329	)		(550,147	)		(199,818	)		(592,206	)		(228,107	)
(Increase) decrease in inventories		-			-			(88,517	)		147,099			(88,517	)		147,099
(Increase) decrease in investments and advances in the Financial Services segment		(988,372	)		(1,096,394	)		-			-			(988,372	)		(1,096,394	)
(Increase) decrease in content assets		-			-			(358,830	)		(574,959	)		(358,830	)		(574,959	)
Increase (decrease) in trade payables		7,637			(13,892	)		241,635			324,208			252,967			308,828
Increase (decrease) in insurance contract liabilities, net of insurance contract assets		789,883			761,584			-			-			789,883			761,584
Increase (decrease) in deposits from customers in the banking business		419,223			169,618			-			-			419,223			169,618
Increase (decrease) in borrowings in the life insurance business and the banking business		72,995			271,148			-			-			72,995			271,148
Increase (decrease) in taxes payable other than income taxes, net		782			489			(17,375	)		22,469			(16,593	)		22,958
Other		(69,134	)		(34,733	)		(286,665	)		(156,443	)		(355,653	)		(190,698	)
Net cash provided by (used in) operating activities		363,477			191,268			618,482			1,432,684			931,958			1,624,000

Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets		(13,281	)		(20,265	)		(436,772	)		(516,105	)		(450,017	)		(536,313	)
Payments for investments and advances (other than Financial Services segment)		-			-			(75,072	)		(45,389	)		(75,072	)		(45,389	)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)		-			-			80,476			36,558			80,476			36,558
Other		(3,603	)		(315	)		(171,737	)		(232,709	)		(175,340	)		(233,024	)
Net cash provided by (used in) investing activities		(16,884	)		(20,580	)		(603,105	)		(757,645	)		(619,953	)		(778,168	)

Cash flows from financing activities:
Increase (decrease) in borrowings, net		(8,609	)		(8,291	)		375,110			(93,883	)		366,501			(102,174	)
Dividends paid		(50,037	)		-			(98,424	)		(115,027	)		(98,424	)		(115,027	)
Other		(1,793	)		432			(64,019	)		(92,709	)		(65,884	)		(92,382	)
Net cash provided by (used in) financing activities		(60,439	)		(7,859	)		212,667			(301,619	)		202,193			(309,583	)

Effect of exchange rate changes on cash and cash equivalents		-			-			24,014			48,587			24,014			48,587

Net increase (decrease) in cash and cash equivalents		286,154			162,829			252,058			422,007			538,212			584,836
Cash and cash equivalents at beginning of the fiscal year		756,493			913,815			724,407			993,298			1,480,900			1,907,113
Cash and cash equivalents at end of the period	¥	1,042,647		¥	1,076,644		¥	976,465		¥	1,415,305		¥	2,019,112		¥	2,491,949

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Going Concern Assumption

Not Applicable

Accounting Policy and Other Information

(Changes in accounting policies)

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

Amendments to IAS 1 “Presentation of Financial Statements”

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

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

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

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

	Yen in millions
	Three months ended December 31
	2023		2024
Net income attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation		363,918		373,739

	Thousands of shares
	Three months ended December 31
	2023		2024
Weighted-average shares outstanding for basic EPS computation		6,154,027		6,021,151
Effect of dilutive securities:
Stock options		16,279		19,028
Restricted stock units		1,490		5,747
Weighted-average shares for diluted EPS computation		6,171,796		6,045,926

	Yen in millions
	Nine months ended December 31
	2023		2024
Net income attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation		781,568		943,873

	Thousands of shares
	Nine months ended December 31
	2023		2024
Weighted-average shares outstanding for basic EPS computation		6,164,393		6,057,240
Effect of dilutive securities:
Stock options		18,017		16,682
Restricted stock units		1,591		5,672
Weighted-average shares for diluted EPS computation		6,184,001		6,079,594

Note:

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

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(Segmentation)

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

(Supplemental cash flow information)

During the nine months ended December 31, 2024, Sony established a new joint venture in the Music segment with a third party partner, which acquired interests in companies that own certain music and other assets (the “target companies”) as well as music assets directly from other rights holders. Sony consolidated the joint venture through Sony’s majority interest and reflected the consideration of 133,064 million yen for the acquisition of the interests in the target companies in cash flows from investing activities as “Payments for purchases of businesses and other.” Sony primarily recognized 116,289 million yen of content assets (music catalogs) and 11,501 million yen of other intangible assets from the acquisition of the interests in the target companies. The acquisition of the interests in the target companies is accounted for as an acquisition of a group of assets that does not constitute a business. The consideration for the content assets (music catalogs) directly acquired from other rights holders was 84,382 million yen, which was recorded in cash flows from operating activities as “Increase in content assets.”

Subsequent Event

(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 February 13, 2025.

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

2. Total purchase price for repurchase of shares: 50 billion yen (maximum)

3. Period of repurchase: February 14, 2025 to May 14, 2025

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Overview of Operating Results

For the overview of operating results for the third quarter ended December 31, 2024, including the results forecast for the fiscal year ending March 31, 2025, please refer to “Q3 FY2024 Consolidated Financial Results” (the presentation material for the earnings announcement) disclosed on the same date as this document on the TDnet of the TSE, the EDGAR system of the SEC and the website of Sony Group Corporation.

Cautionary Statement

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

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

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

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