Financial Statements [PDF:1099KB]

Financial Statements and Consolidated Financial Results

for the Fiscal Year Ended March 31, 2021

And

Outlook for the Fiscal Year Ending March 31, 2022

		April 28, 2021
		Sony Group Corporation
Financial Statements (Unaudited)	F-1
Consolidated Balance Sheets	F-1
Consolidated Statements of Income (Fiscal year ended March 31)	F-2
Consolidated Statements of Comprehensive Income (Fiscal year ended March 31)	F-2
Consolidated Statements of Income (Three months ended March 31)	F-3
Consolidated Statements of Comprehensive Income (Three months ended March 31)	F-3
Consolidated Statements of Changes in Stockholders' Equity	F-4
Consolidated Statements of Cash Flows	F-5
Notes to Consolidated Financial Statements	F-6
-	Business Segment Information	F-6
-	Going Concern Assumption	F-13
- Accounting Policies and Other Information	F-13
-	Subsequent event	F-15
Consolidated Results for the Fiscal Year Ended March 31, 2021	1
Outlook for the Fiscal Year Ending March 31, 2022	4
Business Segment Information	5
(Consolidated Results for the Fiscal year ended March 31, 2021 and Outlook for the Fiscal year ending March 31, 2022)
Financial Target of the Fourth Mid-Range Plan	10
Basic Views on Selection of Accounting Standards	10
Supplemental Information	11
(Effects of Transition to International Financial Reporting Standards (IFRS), as of February 3, 2021)

Other than the results forecast for the fiscal year ending March 31, 2022, all amounts are presented on the basis of Generally Accepted Accounting Principles in the U.S. ("U.S. GAAP").

The results forecast for the fiscal year ending March 31, 2022 is presented on the basis of International Financial Reporting Standards ("IFRS").

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

(Unaudited)

Consolidated Financial Statements

Consolidated Balance Sheets

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

F-1

Consolidated Statements of Income

			(Millions of yen, except per share amounts)
			Fiscal year ended March 31
Sales and operating revenue:		2020			2021			Change
Net sales		6,856,090		7,252,766		+396,676
Financial services revenue		1,299,847			1,661,520			+361,673
Other operating revenue		103,948			85,074			-18,874
			8,259,885			8,999,360			+739,475
Costs and expenses:
Cost of sales		4,753,174			5,072,596			+319,422
Selling, general and administrative		1,502,625			1,469,955			-32,670
Financial services expenses		1,171,875			1,488,963			+317,088
Other operating (income) expense, net		(3,611)			7,468			+11,079
			7,424,063			8,038,982			+614,919
Equity in net income of affiliated companies		9,637			11,487			+1,850
Operating income		845,459			971,865			+126,406
Other income:
Interest and dividends		19,278			10,457			-8,821
Gain on equity securities, net		－			247,026			+247,026
Other		2,671			6,752			+4,081
			21,949			264,235			+242,286
Other expenses:
Interest expenses		11,090			12,185			+1,095
Loss on equity securities, net		20,180			－			-20,180
Foreign exchange loss, net		26,789			16,056			-10,733
Net periodic benefit costs other than service costs		4,572			8,811			+4,239
Other		5,327			6,678			+1,351
			67,958			43,730			-24,228
Income before income taxes		799,450			1,192,370			+392,920
Income taxes		177,190			995			-176,195
Net income
	622,260			1,191,375			+569,115
Less - Net income attributable to noncontrolling interests		40,069			19,599			-20,470
Net income attributable to Sony Group Corporation's		582,191						+589,585
stockholders			1,171,776
Per share data:
Net income attributable to Sony Group Corporation's
stockholders
- Basic		471.64		952.29		+480.65
- Diluted		461.23			936.90			+475.67
Consolidated Statements of Comprehensive Income				(Millions of yen)
			Fiscal year ended March 31
			2020			2021			Change
Net income		622,260		1,191,375		+569,115
Other comprehensive income, net of tax -					(102,492)
Unrealized gains (losses) on securities		40,390					-142,882
Unrealized gains on derivative instruments		1,267			1,513			+246
Pension liability adjustment		74,971			12,965			-62,006
Foreign currency translation adjustments		(75,888)			106,826			+182,714
Debt valuation adjustments		3,032			(3,120)			-6,152
Total comprehensive income
	666,032			1,207,067			+541,035
Less - Comprehensive income attributable
to noncontrolling interests		54,151			8,231			-45,920
Comprehensive income attributable
to Sony Group Corporation's stockholders		611,881			1,198,836			+586,955

F-2

Consolidated Statements of Income

			(Millions of yen, except per share amounts)
			Three months ended March 31
Sales and operating revenue:		2020				2021				Change
Net sales		1,537,308			1,771,417			+234,109
Financial services revenue		184,556				421,065				+236,509
Other operating revenue		26,876				27,937				+1,061
			1,748,740				2,220,419				+471,679
Costs and expenses:
Cost of sales		1,123,928				1,319,092				+195,164
Selling, general and administrative		397,510				429,647				+32,137
Financial services expenses		174,664				386,086				+211,422
Other operating expense, net		20,406				23,959				+3,553
			1,716,508				2,158,784				+442,276
Equity in net income of affiliated companies		3,215				4,845				+1,630
Operating income		35,447				66,480				+31,033
Other income:
Interest and dividends		4,620				3,348				-1,272
Gain on equity securities, net		－			41,299				+41,299
Other		587				2,542				+1,955
			5,207				47,189				+41,982
Other expenses:
Interest expenses		2,297				4,920				+2,623
Loss on equity securities, net		20,552				－			-20,552
Foreign exchange loss, net		17,413				7,372				-10,041
Net periodic benefit costs other than service costs		98				1,069				+971
Other		4,277				4,832				+555
			44,637				18,193				-26,444
Income (loss) before income taxes		(3,983)				95,476				+99,459
Income taxes		(19,726)				(11,646)				+8,080
Net income
	15,743				107,122			+91,379
Less - Net income attributable to noncontrolling interests		3,099				122				-2,977
Net income attributable to Sony Group Corporation's
	12,644								+94,356
stockholders				107,000
Per share data:
Net income attributable to Sony Group Corporation's
stockholders
- Basic		10.33			86.41			+76.08
- Diluted		10.10				85.44				+75.34
Consolidated Statements of Comprehensive Income					(Millions of yen)
			Three months ended March 31
			2020				2021				Change
Net income		15,743			107,122			+91,379
Other comprehensive income, net of tax -						(38,064)
Unrealized gains (losses) on securities		25,633							-63,697
Unrealized gains on derivative instruments		1,207				845				-362
Pension liability adjustment		(11,191)				6,160				+17,351
Foreign currency translation adjustments		(58,387)				133,613				+192,000
Debt valuation adjustments		3,032				(1,283)				-4,315
Total comprehensive income (loss)
	(23,963)				208,393				+232,356
Less - Comprehensive income attributable
to noncontrolling interests		12,516				1,365				-11,151
Comprehensive income (loss) attributable
to Sony Group Corporation's stockholders		(36,479)				207,028				+243,507

F-3

Consolidated Statements of Changes in Stockholders' Equity

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

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

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

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

F-4