Financial Statements [PDF:1117KB]

Quarterly Financial Statements

for the First Quarter Ended June 30, 2022

And

Outlook for the Fiscal Year Ending March 31, 2023

July 29, 2022

Sony Group Corporation

Quarterly Financial Statements (Unaudited)	F-1
Condensed Consolidated Statements of Financial Position	F-1
Condensed Consolidated Statements of Income (Three months ended June 30)	F-3
Condensed Consolidated Statements of Comprehensive Income (Three months ended June 30)	F-4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Three months ended June 30)	F-5
Condensed Consolidated Statements of Cash Flows (Three months ended June 30)	F-6
Notes to Condensed Consolidated Financial Statements	F-8
-	Business Segment Information	F-8
-	Going Concern Assumption	F-14
-	Accounting Policy and Other Information	F-14
-	Subsequent Event	F-15
Outlook for the Fiscal Year Ending March 31, 2023	1
Cautionary Statement	4
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".

(Unaudited)
Condensed Consolidated Financial Statements
Condensed Consolidated Statements of Financial Position
		Yen in millions
	March 31,	June 30,	Change from
	2022	2022	March 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	2,049,636	1,371,867	(677,769)
Investments and advances in the Financial Services segment	360,673	332,422	(28,251)
Trade and other receivables, and contract assets	1,628,521	1,775,516	146,995
Inventories	874,007	1,093,667	219,660
Other financial assets	149,301	147,070	(2,231)
Other current assets	473,070	563,979	90,909
Total current assets	5,535,208	5,284,521	(250,687)
Non-current assets:
Investments accounted for using the equity method	268,513	281,927	13,414
Investments and advances in the Financial Services segment	18,445,088	18,024,195	(420,893)
Property, plant and equipment	1,113,213	1,155,401	42,188
Right-of-use assets	413,430	431,243	17,813
Goodwill	952,895	1,074,013	121,118
Content assets	1,342,046	1,461,238	119,192
Other intangible assets	450,103	476,169	26,066
Deferred insurance acquisition costs	676,526	688,780	12,254
Deferred tax assets	298,589	321,064	22,475
Other financial assets	696,306	883,179	186,873
Other non-current assets	289,050	293,166	4,116
Total non-current assets	24,945,759	25,090,375	144,616
Total assets	30,480,967	30,374,896	(106,071)
(Continued on the following page.)

F-1

Condensed Consolidated Statements of Financial Position (Continued)
		Yen in millions
	March 31,	June 30,	Change from
	2022	2022	March 31, 2022
LIABILITIES
Current liabilities:
Short-term borrowings	1,976,553	1,917,701	(58,852)
Current portion of long-term debt	171,409	216,522	45,113
Trade and other payables	1,843,242	1,961,784	118,542
Deposits from customers in the banking business	2,886,361	2,955,103	68,742
Income taxes payables	106,092	128,277	22,185
Participation and residual liabilities in the Pictures segment	190,162	215,970	25,808
Other financial liabilities	97,843	86,292	(11,551)
Other current liabilities	1,488,488	1,386,708	(101,780)
Total current liabilities	8,760,150	8,868,357	108,207
Non-current liabilities:
Long-term debt	1,203,646	1,198,083	(5,563)
Defined benefit liabilities	254,548	255,533	985
Deferred tax liabilities	696,492	475,923	(220,569)
Future insurance policy benefits and other	7,039,034	7,200,722	161,688
Policyholders' account in the life insurance business	4,791,295	4,799,410	8,115
Participation and residual liabilities in the Pictures segment	220,113	241,845	21,732
Other financial liabilities	211,959	244,400	32,441
Other non-current liabilities	106,481	118,395	11,914
Total non-current liabilities	14,523,568	14,534,311	10,743
Total liabilities	23,283,718	23,402,668	118,950
EQUITY
Sony Group Corporation's stockholders' equity:
Common stock	880,365	880,365	-
Additional paid-in capital	1,461,053	1,459,138	(1,915)
Retained earnings	3,760,763	3,934,581	173,818
Accumulated other comprehensive income	1,222,332	831,906	(390,426)
Treasury stock, at cost	(180,042)	(188,127)	(8,085)
Equity attributable to Sony Group Corporation's stockholders	7,144,471	6,917,863	(226,608)
Noncontrolling interests	52,778	54,365	1,587
Total equity	7,197,249	6,972,228	(225,021)
Total liabilities and equity	30,480,967	30,374,896	(106,071)

F-2

Condensed Consolidated Statements of Income
		Yen in millions
	Three months ended June 30
	2021	2022	Change
Sales and financial services revenue:
Sales	1,844,713	2,016,037	171,324
Financial services revenue	412,130	295,457	(116,673)
Total sales and financial services revenue	2,256,843	2,311,494	54,651
Costs and expenses:
Cost of sales	1,248,773	1,391,667	142,894
Selling, general and administrative	345,302	406,766	61,464
Financial services expenses	388,069	214,100	(173,969)
Other operating (income) expense, net	(1,101)	(2,725)	(1,624)
Total costs and expenses	1,981,043	2,009,808	28,765
Share of profit (loss) of investments accounted for using the equity method	4,268	5,277	1,009
Operating income	280,068	306,963	26,895
Financial income	11,685	14,382	2,697
Financial expenses	8,543	29,969	21,426
Income before income taxes	283,210	291,376	8,166
Income taxes	70,095	73,070	2,975
Net income	213,115	218,306	5,191
Net income attributable to
Sony Group Corporation's stockholders	211,829	218,196	6,367
Noncontrolling interests	1,286	110	(1,176)
		Yen
	Three months ended June 30
	2021	2022	Change
Per share data:
Net income attributable to Sony Group Corporation's stockholders
- Basic	170.95	176.46	5.51
- Diluted	169.22	175.21	5.99

F-3

Condensed Consolidated Statements of Comprehensive Income
		Yen in millions
	Three months ended June 30
	2021	2022	Change
Net income	213,115	218,306	5,191
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	26,370	(2,118)	(28,488)
comprehensive income
Remeasurement of defined benefit pension plans	(1,697)	116	1,813
Share of other comprehensive income of investments accounted for using the	(14)	208	222
equity method
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other	34,994	(634,493)	(669,487)
comprehensive income
Cash flow hedges	(198)	(1,117)	(919)
Insurance contract valuation adjustments	285	521	236
Exchange differences on translating foreign operations	7,184	247,333	240,149
Share of other comprehensive income of investments accounted for using the	(31)	2,679	2,710
equity method
Total other comprehensive income, net of tax	66,893	(386,871)	(453,764)
Comprehensive income	280,008	(168,565)	(448,573)
Comprehensive income attributable to
Sony Group Corporation's stockholders	278,349	(172,114)	(450,463)
Noncontrolling interests	1,659	3,549	1,890

F-4