Semi-annual Securities Report (FY2025 Q2 Earnings) [PDF:512KB]

Semi-annual Securities Report

For the six months ended September 30, 2025 (TRANSLATION)

Sony Group Corporation

	CONTENTS
		Page
Note for readers of this English translation		1
Cautionary Statement		1
I Corporate Information		3
(1) Selected Consolidated Financial Data		3
(2) Business Overview		4
II State of Business		5
(1) Risk Factors		5

1. Management's Discussion and Analysis of Financial Condition, Results of Operations and Status of Cash Flows 6

2. Material Contracts 12

1. Company Information 13

   1. Information on the Company's Shares 13

   2. Directors and Corporate Executive Officers 18

2. Financial Statements 19

   1. Condensed Semi-annual Consolidated Financial Statements 20

   2. Other Information 55

Note for readers of this English translation

On November 14, 2025, Sony Group Corporation (the "Company" or "Sony Group Corporation" and together with its consolidated subsidiaries, "Sony" or "Sony Group") filed its Japanese-language Semi-annual Securities Report (Hanki Houkokusho) for the six months ended September 30, 2025 with the Director-General of the Kanto Local Finance Bureau in Japan pursuant to the Financial Instruments and Exchange Act of Japan. This document is an English translation of the Semi-annual Securities Report in its entirety, and is not intended to update the information that had been previously filed with or submitted to the U.S. Securities and Exchange Commission (the "SEC") in a Form 20-F, Form 6-K or any other form.

Cautionary Statement

Statements made in this Report 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:

1. Sony's ability to maintain product quality and customer satisfaction with its products and services;

2. 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;

3. 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;

4. 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;

5. 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;

6. 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;

7. 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;

8. 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;

9. 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;

10. Sony's ability to forecast demands, manage timely procurement and control inventories;

11. 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;

12. Sony's ability to recruit, retain and maintain productive relations with highly skilled personnel;

13. 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;

1. 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 business;

2. 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 business;

3. risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events;

4. 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

5. the outcome of pending and/or future legal and/or regulatory proceedings.

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

I Corporate Information

(1) Selected Consolidated Financial Data

Yen in millions, Yen per share amounts

	Six months ended	Six months ended	Fiscal year ended
	September 30, 2024	September 30, 2025	March 31, 2025
Sales	5,536,585	5,729,522	12,034,917
Operating income	638,462	768,929	1,276,635
Income before income taxes	671,393	798,362	1,343,198
Net income attributable to Sony Group Corporation's stockholders	570,134	598,877	1,141,600
Comprehensive income attributable to Sony Group Corporation's stockholders	365,683	720,295	941,030
Equity attributable to Sony Group Corporation's stockholders	7,708,972	7,687,602	8,179,745
Total assets	34,280,701	36,127,949	35,293,173
Net income attributable to Sony Group Corporation's stockholders per share of common stock, basic (yen)	93.84	99.83	188.71
Net income attributable to Sony Group Corporation's stockholders per share of common stock, diluted (yen)	93.53	99.22	187.92
Ratio of stockholders' equity to total assets at end of the period (%)	22.5	21.3	23.2
Net cash provided by (used in) operating activities	616,289	471,616	2,321,675
Net cash used in investing activities	(644,930)	(393,971)	(930,120)
Net cash provided by financing activities	(126,974)	(383,371)	(298,243)
Cash and cash equivalents at end of the period	1,728,710	2,667,965	2,980,956

Notes:

1. Sony's condensed semi-annual consolidated financial statements are prepared in conformity with IFRS®Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards").

2. Share of profit (loss) of investments accounted for using the equity method is reported as a component of operating income.

3. Ratio of stockholders' equity to total assets is calculated by using equity attributable to the stockholders of the Company.

4. Sony prepares condensed semi-annual consolidated financial statements. Therefore parent-only selected financial data is not presented.

5. Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for net income attributable to Sony Group Corporation's stockholders per share of common stock, basic (yen) and net income attributable to Sony Group Corporation's stockholders per share of common stock, diluted (yen) are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2025.

6. At a meeting of Sony Group Corporation's Board of Directors (the "Board") held on May 14, 2025, the Company resolved the plan regarding the execution of a partial spin-off (the "Partial Spin-off of the Financial Services business") of Sony Financial Group Inc. ("SFGI"), a wholly-owned subsidiary which operates the Financial Services business, in October 2025 (the "resolution for the plan regarding the execution of the Partial Spin-off of the Financial Services business"). In connection with the resolution, the Financial Services business was classified as a discontinued operation from the first quarter of the fiscal year ending March 31, 2026, in accordance with IFRS Accounting Standards. Accordingly, sales, operating income, and income before income taxes for the six months ended September 30, 2025 are presented based on continuing operations excluding discontinued operations, and are consistent with sales, operating income and income before income taxes from continuing operations shown in "IV Financial Statements - Condensed Semi-annual Consolidated Statements of Income (Unaudited)." The corresponding figures of sales, operating income and income before income taxes for the six months ended September 30, 2024, and for the fiscal year ended March 31, 2025, have been re-presented to conform to this classification. For details of discontinued operations, please refer to "IV Financial Statements - Notes to Condensed Semi-annual Consolidated Financial Statements - 13. Discontinued Operations."