Financial Statements [PDF:1394KB]

Quarterly Financial Statements

for the First Quarter Ended June 30, 2021

And

Outlook for the Fiscal Year Ending March 31, 2022

		August 4, 2021
		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	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
-	First-time Adoption	F-15
Outlook for the Fiscal Year Ending March 31, 2022	1
Supplemental Information	4
Cautionary Statement	5

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
	April 1,	March 31,	June 30,	Change from
	2020	2021	2021	March 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	1,512,523	1,786,982	1,725,218	(61,764)
Investments and advances in the Financial Services segment	327,092	411,982	390,918	(21,064)
Trade and other receivables, and contract assets	1,194,334	1,365,493	1,441,588	76,095
Inventories	559,779	636,668	758,041	121,373
Other financial assets	135,482	117,682	98,906	(18,776)
Other current assets	441,974	396,210	437,308	41,098
Total current assets	4,171,184	4,715,017	4,851,979	136,962
Non-current assets:
Investments accounted for using the equity method	204,291	225,086	227,001	1,915
Investments and advances in the Financial Services segment	16,352,285	17,296,546	17,680,447	383,901
Property, plant and equipment	917,198	990,541	1,052,944	62,403
Right-of-use assets	373,282	358,034	370,399	12,365
Goodwill	690,929	726,109	789,918	63,809
Content assets	992,644	1,062,547	1,098,676	36,129
Other intangible assets	377,500	391,055	392,368	1,313
Deferred insurance acquisition costs	187,904	623,986	636,679	12,693
Deferred tax assets	210,333	215,669	193,736	(21,933)
Other financial assets	321,721	695,764	753,449	57,685
Other non-current assets	167,795	207,489	222,093	14,604
Total non-current assets	20,795,882	22,792,826	23,417,710	624,884
Total assets	24,967,066	27,507,843	28,269,689	761,846
(Continued on the following page.)

F-1

Condensed Consolidated Statements of Financial Position (Continued)
		Yen in millions
	April 1,	March 31,	June 30,	Change from
	2020	2021	2021	March 31, 2021
LIABILITIES
Current liabilities:
Short-term borrowings	824,045	1,201,747	1,459,658	257,911
Current portion of long-term debt	98,923	205,406	207,180	1,774
Trade and other payables	1,310,536	1,596,563	1,682,260	85,697
Deposits from customers in the banking business	2,347,387	2,682,156	2,717,538	35,382
Income taxes payables	85,346	84,431	77,839	(6,592)
Participation and residual liabilities in the Pictures segment	163,007	161,433	159,379	(2,054)
Other financial liabilities	56,152	54,341	41,750	(12,591)
Other current liabilities	1,263,944	1,367,527	1,257,852	(109,675)
Total current liabilities	6,149,340	7,353,604	7,603,456	249,852
Non-current liabilities:
Long-term debt	939,030	1,053,636	1,044,969	(8,667)
Defined benefit liabilities	329,621	267,222	261,444	(5,778)
Deferred tax liabilities	1,041,156	816,587	853,135	36,548
Future insurance policy benefits and other	6,519,577	6,614,585	6,708,960	94,375
Policyholders' account in the life insurance business	3,640,010	4,328,894	4,469,224	140,330
Participation and residual liabilities in the Pictures segment	119,702	116,537	121,791	5,254
Other financial liabilities	146,834	139,417	161,205	21,788
Other non-current liabilities	87,320	93,022	96,495	3,473
Total non-current liabilities	12,823,250	13,429,900	13,717,223	287,323
Total liabilities	18,972,590	20,783,504	21,320,679	537,175
EQUITY
Sony Group Corporation's stockholders' equity:
Common stock	880,214	880,214	880,214	-
Additional paid-in capital	1,297,554	1,489,597	1,475,112	(14,485)
Retained earnings	1,949,697	2,914,503	3,087,094	172,591
Accumulated other comprehensive income	979,476	1,520,257	1,588,475	68,218
Treasury stock, at cost	(232,503)	(124,228)	(127,699)	(3,471)
Equity attributable to Sony Group Corporation's stockholders	4,874,438	6,680,343	6,903,196	222,853
Noncontrolling interests	1,120,038	43,996	45,814	1,818
Total equity	5,994,476	6,724,339	6,949,010	224,671
Total liabilities and equity	24,967,066	27,507,843	28,269,689	761,846

F-2

Condensed Consolidated Statements of Income
		Yen in millions
	Three months ended June 30
	2020	2021	Change
Sales and financial services revenue:
Sales	1,524,960	1,844,713	319,753
Financial services revenue	437,989	412,130	(25,859)
Total sales and financial services revenue	1,962,949	2,256,843	293,894
Costs and expenses:
Cost of sales	1,049,423	1,248,773	199,350
Selling, general and administrative	300,285	345,302	45,017
Financial services expenses	401,904	388,069	(13,835)
Other operating (income) expense, net	(10,690)	(1,101)	9,589
Total costs and expenses	1,740,922	1,981,043	240,121
Share of profit (loss) of investments accounted for using the equity method	(302)	4,268	4,570
Operating income	221,725	280,068	58,343
Financial income	56,676	11,685	(44,991)
Financial expenses	9,839	8,543	(1,296)
Income before income taxes	268,562	283,210	14,648
Income taxes	64,344	70,095	5,751
Net income	204,218	213,115	8,897
Net income attributable to
Sony Group Corporation's stockholders	193,583	211,829	18,246
Noncontrolling interests	10,635	1,286	(9,349)
		Yen
	Three months ended June 30
	2020	2021	Change
Per share data:
Net income attributable to Sony Group Corporation's stockholders
- Basic	158.59	170.95	12.36
- Diluted	155.27	169.22	13.95

F-3

Condensed Consolidated Statements of Comprehensive Income
		Yen in millions
	Three months ended June 30
	2020	2021	Change
Net income	204,218	213,115	8,897
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	40,098	26,370	(13,728)
comprehensive income
Remeasurement of defined benefit pension plans	(39)	(1,697)	(1,658)
Share of other comprehensive income of investments accounted for using the	36	(14)	(50)
equity method
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other	(67,858)	34,994	102,852
comprehensive income
Cash flow hedges	(260)	(198)	62
Insurance contract valuation adjustments	(1,650)	285	1,935
Exchange differences on translating foreign operations	793	7,184	6,391
Share of other comprehensive income of investments accounted for using the	(67)	(31)	36
equity method
Total other comprehensive income, net of tax	(28,947)	66,893	95,840
Comprehensive income	175,271	280,008	104,737
Comprehensive income attributable to
Sony Group Corporation's stockholders	190,143	278,349	88,206
Noncontrolling interests	(14,872)	1,659	16,531

F-4