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 May 2024

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: May 14, 2024

List of Materials

Documents attached hereto:

i) Press release: Quarterly Financial Statements for the Fourth Quarter Ended March 31, 2024 And Outlook for the Fiscal Year Ending March 31, 2025

Financial Statements and Consolidated Financial Results

for the Fiscal Year Ended March 31, 2024

And

Outlook for the Fiscal Year Ending March 31, 2025

May 14, 2024

Sony Group Corporation

Financial Statements (Unaudited) F-1
Consolidated Statements of Financial Position F-1
Consolidated Statements of Income (Fiscal year ended March 31) F-3
Consolidated Statements of Comprehensive Income (Fiscal year ended March 31) F-4
Consolidated Statements of Income (Three months ended March 31) F-5
Consolidated Statements of Comprehensive Income (Three months ended March 31) F-6
Consolidated Statements of Changes in Stockholders' Equity (Fiscal year ended March 31) F-7
Consolidated Statements of Cash Flows (Fiscal year ended March 31) F-8
Notes to Consolidated Financial Statements F-10
- Business Segment Information F-10
- Going Concern Assumption F-20
- Accounting Policy and Other Information F-20
- Subsequent Events F-22
Consolidated Results for the Fiscal Year Ended March 31, 2024 1
Outlook for the Fiscal Year Ending March 31, 2025 4
Business Segment Information 6
Financial Targets of Mid-Range Plan 11
Dividend Information 11
Basic Views on Selection of Accounting Standards 12
Supplemental Information 12
Cautionary Statement 15

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."

Sony has adopted IFRS 17 "Insurance Contracts" ("IFRS 17") starting in the three months ended June 30, 2023. Figures for the three months ended March 31, 2023 and for the fiscal year ended March 31, 2023, as well as the consolidated statement of financial position as of April 1, 2022, are restated in accordance with IFRS 17. Please refer to "Notes to Consolidated Financial Statements - Accounting Policy and Other Information (Changes in accounting policies)" on page F-20 for more details.

(Unaudited)

Consolidated Financial Statements

Consolidated Statements of Financial Position

Yen in millions
April 1,
2022
Restated		 March 31,
2023
Restated		 March 31,
2024		 Change from
March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents 2,049,636 1,480,900 1,907,113 426,213
Investments and advances in the Financial Services segment 360,681 328,358 398,153 69,795
Trade and other receivables, and contract assets 1,621,629 1,770,948 2,158,196 387,248
Inventories 874,007 1,468,042 1,518,644 50,602
Other financial assets 149,301 110,950 125,365 14,415
Other current assets 428,522 563,334 669,335 106,001
Total current assets 5,483,776 5,722,532 6,776,806 1,054,274
Non-current assets:
Investments accounted for using the equity method 268,513 325,220 423,744 98,524
Investments and advances in the Financial Services segment 18,251,612 18,237,761 18,939,794 702,033
Property, plant and equipment 1,113,213 1,344,864 1,522,640 177,776
Right-of-use assets 413,430 478,063 503,395 25,332
Goodwill 952,895 1,275,112 1,487,100 211,988
Content assets 1,342,046 1,561,882 1,928,113 366,231
Other intangible assets 450,103 563,842 615,602 51,760
Deferred tax assets 300,924 393,107 499,550 106,443
Other financial assets 696,306 832,344 897,341 64,997
Other non-current assets 379,137 419,368 513,405 94,037
Total non-current assets 24,168,179 25,431,563 27,330,684 1,899,121
Total assets 29,651,955 31,154,095 34,107,490 2,953,395

(Continued on the following page.)

F-1

Consolidated Statements of Financial Position (Continued)

Yen in millions
April 1,
2022
Restated 		March 31,
2023
Restated 		March 31,
2024 		Change from March 31, 2023
LIABILITIES
Current liabilities:
Short-term borrowings 1,976,553 1,914,934 1,812,605 (102,329 )
Current portion of long-term debt 171,409 187,942 217,711 29,769
Trade and other payables 1,843,338 1,866,101 2,064,905 198,804
Deposits from customers in the banking business 2,886,361 3,163,237 3,670,567 507,330
Income taxes payables 105,437 154,543 152,074 (2,469 )
Participation and residual liabilities in the Pictures segment 190,162 230,223 251,743 21,520
Other financial liabilities 127,079 108,049 116,044 7,995
Other current liabilities 1,465,326 1,693,380 1,906,396 213,016
Total current liabilities 8,765,665 9,318,409 10,192,045 873,636
Non-current liabilities:
Long-term debt 1,203,646 1,767,696 2,058,117 290,421
Defined benefit liabilities 254,548 236,121 247,583 11,462
Deferred tax liabilities 120,582 117,621 166,424 48,803
Insurance contract liabilities 13,042,875 12,364,973 12,931,995 567,022
Participation and residual liabilities in the Pictures segment 220,113 192,952 206,081 13,129
Other financial liabilities 231,463 371,580 386,761 15,181
Other non-current liabilities 106,481 127,593 162,379 34,786
Total non-current liabilities 15,179,708 15,178,536 16,159,340 980,804
Total liabilities 23,945,373 24,496,945 26,351,385 1,854,440
EQUITY
Sony Group Corporation's stockholders' equity:
Common stock 880,365 880,365 881,357 992
Additional paid-in capital 1,461,053 1,463,807 1,483,410 19,603
Retained earnings 4,170,417 5,092,442 6,002,407 909,965
Accumulated other comprehensive income (677,989 ) (614,570 ) (376,063 ) 238,507
Treasury stock, at cost (180,042 ) (223,507 ) (403,934 ) (180,427 )
Equity attributable to Sony Group Corporation's stockholders 5,653,804 6,598,537 7,587,177 988,640
Noncontrolling interests 52,778 58,613 168,928 110,315
Total equity 5,706,582 6,657,150 7,756,105 1,098,955
Total liabilities and equity 29,651,955 31,154,095 34,107,490 2,953,395

F-2

Consolidated Statements of Income

Yen in millions
Fiscal year ended March 31
2023
Restated 		2024 Change
Sales and financial services revenue:
Sales 10,095,841 11,260,037 1,164,196
Financial services revenue
Insurance revenue 554,570 586,115 31,545
Other financial services revenue 323,962 1,174,616 850,654
Total financial services revenue 878,532 1,760,731 882,199
Total sales and financial services revenue 10,974,373 13,020,768 2,046,395
Costs and expenses:
Cost of sales 7,174,723 8,089,317 914,594
Selling, general and administrative 1,969,170 2,156,156 186,986
Financial services expenses
Insurance service expenses 382,213 407,206 24,993
Insurance finance expenses (income) 85,399 1,029,700 944,301
Other financial services expenses 96,949 169,464 72,515
Total financial services expenses 564,561 1,606,370 1,041,809
Other operating (income) expense, net (12,021 ) (29,404 ) (17,383 )
Total costs and expenses 9,696,433 11,822,439 2,126,006
Share of profit (loss) of investments accounted for using the equity method 24,449 10,502 (13,947 )
Operating income 1,302,389 1,208,831 (93,558 )
Financial income 31,058 125,597 94,539
Financial expenses 58,951 65,766 6,815
Income before income taxes 1,274,496 1,268,662 (5,834 )
Income taxes 262,723 288,168 25,445
Net income 1,011,773 980,494 (31,279 )
Net income attributable to
Sony Group Corporation's stockholders 1,005,277 970,573 (34,704 )
Noncontrolling interests 6,496 9,921 3,425
Yen
Fiscal year ended March 31
2023
Restated 		2024 Change
Per share data:
Net income attributable to Sony Group Corporation's stockholders
- Basic 813.53 788.29 (25.24 )
- Diluted 809.85 785.68 (24.17 )

F-3

Consolidated Statements of Comprehensive Income

Yen in millions
Fiscal year ended March 31
2023
Restated 		2024 Change
Net income 1,011,773 980,494 (31,279 )
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 (36,862 ) (53,814 ) (16,952 )
Remeasurement of defined benefit pension plans 18,891 25,875 6,984
Share of other comprehensive income of investments accounted for using the equity method 145 613 468
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income (819,192 ) (704,636 ) 114,556
Cash flow hedges 12,379 1,352 (11,027 )
Insurance finance income (expenses) 727,716 563,396 (164,320 )
Exchange differences on translating foreign operations 178,275 442,406 264,131
Share of other comprehensive income of investments accounted for using the equity method 3,554 4,735 1,181
Other (144 ) (283 ) (139 )
Total other comprehensive income, net of tax 84,762 279,644 194,882
Comprehensive income 1,096,535 1,260,138 163,603
Comprehensive income attributable to
Sony Group Corporation's stockholders 1,087,289 1,247,301 160,012
Noncontrolling interests 9,246 12,837 3,591

F-4

Consolidated Statements of Income

Yen in millions
Three months ended March 31
2023
Restated 		2024 Change
Sales and financial services revenue:
Sales 2,572,578 2,810,390 237,812
Financial services revenue
Insurance revenue 143,194 152,887 9,693
Other financial services revenue 325,073 517,689 192,616
Total financial services revenue 468,267 670,576 202,309
Total sales and financial services revenue 3,040,845 3,480,966 440,121
Costs and expenses:
Cost of sales 1,932,866 1,992,922 60,056
Selling, general and administrative 550,759 607,776 57,017
Financial services expenses
Insurance service expenses 97,604 115,245 17,641
Insurance finance expenses (income) 282,907 501,625 218,718
Other financial services expenses 35,799 47,145 11,346
Total financial services expenses 416,310 664,015 247,705
Other operating (income) expense, net 257 (13,591 ) (13,848 )
Total costs and expenses 2,900,192 3,251,122 350,930
Share of profit (loss) of investments accounted for using the equity method 5,887 (402 ) (6,289 )
Operating income 146,540 229,442 82,902
Financial income 38,574 66,420 27,846
Financial expenses 22,436 19,384 (3,052 )
Income before income taxes 162,678 276,478 113,800
Income taxes 20,716 82,453 61,737
Net income 141,962 194,025 52,063
Net income attributable to
Sony Group Corporation's stockholders 140,981 189,005 48,024
Noncontrolling interests 981 5,020 4,039
Yen
Three months ended March 31
2023
Restated 		2024 Change
Per share data:
Net income attributable to Sony Group Corporation's stockholders
- Basic 114.22 154.12 39.90
- Diluted 113.89 153.60 39.71

F-5

Consolidated Statements of Comprehensive Income

Yen in millions
Three months ended March 31
2023
Restated 		2024 Change
Net income 141,962 194,025 52,063
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 (27,342 ) (20,538 ) 6,804
Remeasurement of defined benefit pension plans 18,852 26,905 8,053
Share of other comprehensive income of investments accounted for using the equity method 14 423 409
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income 371,514 (181,677 ) (553,191 )
Cash flow hedges (5,340 ) (2,171 ) 3,169
Insurance finance income (expenses) (328,810 ) 151,510 480,320
Exchange differences on translating foreign operations 37,694 234,729 197,035
Share of other comprehensive income of investments accounted for using the equity method 762 2,465 1,703
Other 253 (77 ) (330 )
Total other comprehensive income, net of tax 67,597 211,569 143,972
Comprehensive income 209,559 405,594 196,035
Comprehensive income attributable to
Sony Group Corporation's stockholders 207,767 399,932 192,165
Noncontrolling interests 1,792 5,662 3,870

F-6

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, 2022 880,365 1,461,053 3,760,763 1,222,332 (180,042 ) 7,144,471 52,778 7,197,249
Cumulative effects of the application of new accounting standards - - 409,654 (1,900,321 ) - (1,490,667 ) - (1,490,667 )
Restated balance at April 1, 2022 880,365 1,461,053 4,170,417 (677,989 ) (180,042 ) 5,653,804 52,778 5,706,582
Comprehensive income (restated):
Net income 1,005,277 1,005,277 6,496 1,011,773
Other comprehensive income, net of tax 82,012 82,012 2,750 84,762
Total comprehensive income (restated) 1,005,277 82,012 1,087,289 9,246 1,096,535
Transfer to retained earnings 18,593 (18,593 ) - -
Transactions with stockholders and other:
Exercise of stock acquisition rights (14 ) (1,352 ) 10,364 8,998 8,998
Conversion of convertible bonds (2,588 ) (13,858 ) 42,993 26,547 26,547
Stock-based compensation 11,064 11,064 11,064
Dividends declared (86,635 ) (86,635 ) (5,980 ) (92,615 )
Purchase of treasury stock (99,248 ) (99,248 ) (99,248 )
Reissuance of treasury stock 1,242 2,426 3,668 3,668
Transactions with noncontrolling interests shareholders and other (6,950 ) (6,950 ) 2,569 (4,381 )
Restated balance at March 31, 2023 880,365 1,463,807 5,092,442 (614,570 ) (223,507 ) 6,598,537 58,613 6,657,150
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 970,573 970,573 9,921 980,494
Other comprehensive income, net of tax 276,728 276,728 2,916 279,644
Total comprehensive income 970,573 276,728 1,247,301 12,837 1,260,138
Transfer to retained earnings 38,221 (38,221 ) - -
Transactions with stockholders and other:
Exercise of stock acquisition rights and other 992 (1,939 ) (144 ) 19,257 18,166 18,166
Stock-based compensation 13,956 13,956 13,956
Dividends declared (98,685 ) (98,685 ) (5,786 ) (104,471 )
Purchase of treasury stock (202,974 ) (202,974 ) (202,974 )
Reissuance of treasury stock 1,786 3,290 5,076 5,076
Transactions with noncontrolling interests shareholders and other 5,800 5,800 103,264 109,064
Balance at March 31, 2024 881,357 1,483,410 6,002,407 (376,063 ) (403,934 ) 7,587,177 168,928 7,756,105

F-7

Consolidated Statements of Cash Flows

Yen in millions
Fiscal year ended March 31
2023
Restated 		2024
Cash flows from operating activities:
Income before income taxes 1,274,496 1,268,662
Adjustments to reconcile income before income taxes to net cash provided by operating activities:
Depreciation and amortization, including amortization of contract costs 1,004,590 1,144,981
Other operating (income) expense, net (12,021 ) (29,404 )
(Gain) loss on securities, net (other than Financial Services segment) 4,469 (73,166 )
Share of profit of investments accounted for using the equity method, net of dividends (17,696 ) (715 )
Changes in assets and liabilities:
Increase in trade receivables and contract assets (70,349 ) (243,646 )
(Increase) decrease in inventories (560,382 ) 75,641
Increase in investments and advances in the Financial Services segment (1,093,792 ) (1,748,913 )
Increase in content assets (594,547 ) (486,183 )
Increase (decrease) in trade payables (107,250 ) 9,188
Increase in insurance contract liabilities, net of insurance contract assets 330,654 1,370,580
Increase in deposits from customers in the banking business 300,201 536,688
Increase (decrease) in borrowings in the life insurance business and the banking business 111,314 (41,516 )
Increase (decrease) in taxes payable other than income taxes, net 4,183 (22,491 )
(Increase) decrease in other financial assets and other current assets 5,932 (31,821 )
Increase in other financial liabilities and other current liabilities 130,142 19,562
Income taxes paid (297,881 ) (293,997 )
Other (97,372 ) (80,237 )
Net cash provided by operating activities 314,691 1,373,213

(Continued on the following page.)

F-8

Consolidated Statements of Cash Flows (Continued)

Yen in millions
Fiscal year ended March 31
2023
Restated 		2024
Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets (613,635 ) (623,946 )
Proceeds from sales of property, plant and equipment and other intangible assets 11,595 11,571
Payments for investments and advances (other than Financial Services segment) (191,129 ) (95,506 )
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment) 13,548 92,679
Payments for purchases of businesses and other (283,402 ) (199,255 )
Proceeds from sales of businesses 1,221 -
Other 9,138 (4,429 )
Net cash used in investing activities (1,052,664 ) (818,886 )
Cash flows from financing activities:
Increase (decrease) in short-term borrowings, net 32,391 (18,370 )
Proceeds from issuance of long-term debt 361,776 225,176
Payments of long-term debt (132,198 ) (128,150 )
Dividends paid (86,568 ) (98,620 )
Payments for purchases of treasury stock (99,248 ) (202,974 )
Other 8,147 12,229
Net cash provided by (used in) financing activities 84,300 (210,709 )
Effect of exchange rate changes on cash and cash equivalents 84,937 82,595
Net increase (decrease) in cash and cash equivalents (568,736 ) 426,213
Cash and cash equivalents at beginning of the fiscal year 2,049,636 1,480,900
Cash and cash equivalents at end of the fiscal year 1,480,900 1,907,113

F-9

Notes to Consolidated Financial Statements

Business Segment Information

(Business Segments)

Segment sales and financial services revenue

Yen in millions
Fiscal year ended March 31
2023
Restated 		2024 Change
Sales and financial services revenue:
Game & Network Services -
Customers 3,538,533 4,172,994 634,461
Intersegment 106,065 94,740 (11,325 )
Total 3,644,598 4,267,734 623,136
Music -
Customers 1,364,815 1,594,955 230,140
Intersegment 15,817 24,003 8,186
Total 1,380,632 1,618,958 238,326
Pictures -
Customers 1,364,887 1,486,717 121,830
Intersegment 4,535 6,333 1,798
Total 1,369,422 1,493,050 123,628
Entertainment, Technology & Services -
Customers 2,436,739 2,414,946 (21,793 )
Intersegment 39,286 38,772 (514 )
Total 2,476,025 2,453,718 (22,307 )
Imaging & Sensing Solutions -
Customers 1,301,481 1,503,906 202,425
Intersegment 100,706 98,832 (1,874 )
Total 1,402,187 1,602,738 200,551
Financial Services -
Customers 878,532 1,760,731 882,199
Intersegment 10,550 9,223 (1,327 )
Total 889,082 1,769,954 880,872
All Other -
Customers 72,338 75,784 3,446
Intersegment 15,285 13,586 (1,699 )
Total 87,623 89,370 1,747
Corporate and elimination (275,196 ) (274,754 ) 442
Consolidated total 10,974,373 13,020,768 2,046,395

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.

F-10

Segment profit (loss)

Yen in millions
Fiscal year ended March 31
2023
Restated 		2024 Change
Operating income (loss):
Game & Network Services 250,006 290,184 40,178
Music 263,107 301,662 38,555
Pictures 119,255 117,702 (1,553 )
Entertainment, Technology & Services 179,461 187,399 7,938
Imaging & Sensing Solutions 212,214 193,541 (18,673 )
Financial Services 318,118 173,576 (144,542 )
All Other 16,849 1,600 (15,249 )
Total 1,359,010 1,265,664 (93,346 )
Corporate and elimination (56,621 ) (56,833 ) (212 )
Consolidated operating income 1,302,389 1,208,831 (93,558 )

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.

F-11

Segment sales and financial services revenue

Yen in millions
Three months ended March 31
2023
Restated 		2024 Change
Sales and financial services revenue:
Game & Network Services -
Customers 1,035,737 1,058,968 23,231
Intersegment 37,461 38,363 902
Total 1,073,198 1,097,331 24,133
Music -
Customers 341,891 422,188 80,297
Intersegment 7,605 7,721 116
Total 349,496 429,909 80,413
Pictures -
Customers 357,135 404,059 46,924
Intersegment 1,905 2,662 757
Total 359,040 406,721 47,681
Entertainment, Technology & Services -
Customers 483,621 522,877 39,256
Intersegment 10,226 9,780 (446 )
Total 493,847 532,657 38,810
Imaging & Sensing Solutions -
Customers 326,278 381,260 54,982
Intersegment 22,550 17,264 (5,286 )
Total 348,828 398,524 49,696
Financial Services -
Customers 468,267 670,576 202,309
Intersegment 2,308 2,309 1
Total 470,575 672,885 202,310
All Other -
Customers 19,490 18,772 (718 )
Intersegment 3,007 2,985 (22 )
Total 22,497 21,757 (740 )
Corporate and elimination (76,636 ) (78,818 ) (2,182 )
Consolidated total 3,040,845 3,480,966 440,121

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.

F-12

Segment profit (loss)

Yen in millions
Three months ended March 31
2023
Restated 		2024 Change
Operating income (loss):
Game & Network Services 38,864 105,983 67,119
Music 60,440 71,199 10,759
Pictures 15,535 30,667 15,132
Entertainment, Technology & Services (33,041 ) (6,444 ) 26,597
Imaging & Sensing Solutions 31,687 34,734 3,047
Financial Services 51,814 26,107 (25,707 )
All Other 74 (5,540 ) (5,614 )
Total 165,373 256,706 91,333
Corporate and elimination (18,833 ) (27,264 ) (8,431 )
Consolidated operating income 146,540 229,442 82,902

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.

F-13

(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
Fiscal year ended March 31
Sales and financial services revenue: 2023
Restated 		2024 Change
Game & Network Services
Digital Software and Add-on Content 1,523,045 1,934,586 411,541
Network Services 464,676 545,537 80,861
Hardware and Others 1,550,812 1,692,871 142,059
Total 3,538,533 4,172,994 634,461
Music
Recorded Music - Streaming 598,868 709,453 110,585
Recorded Music - Others 286,270 356,646 70,376
Music Publishing 276,665 326,727 50,062
Visual Media and Platform 203,012 202,129 (883 )
Total 1,364,815 1,594,955 230,140
Pictures
Motion Pictures 464,043 542,044 78,001
Television Productions 536,250 551,035 14,785
Media Networks 364,594 393,638 29,044
Total 1,364,887 1,486,717 121,830
Entertainment, Technology & Services
Televisions 733,251 624,264 (108,987 )
Audio and Video 391,608 412,067 20,459
Still and Video Cameras 565,018 643,429 78,411
Mobile Communications 356,771 299,905 (56,866 )
Other 390,091 435,281 45,190
Total 2,436,739 2,414,946 (21,793 )
Imaging & Sensing Solutions 1,301,481 1,503,906 202,425
Financial Services 878,532 1,760,731 882,199
All Other 72,338 75,784 3,446
Corporate 17,048 10,735 (6,313 )
Consolidated total 10,974,373 13,020,768 2,046,395

F-14

Yen in millions
Three months ended March 31
Sales and financial services revenue: 2023
Restated 		2024 Change
Game & Network Services
Digital Software and Add-on Content 396,239 514,163 117,924
Network Services 118,946 149,969 31,023
Hardware and Others 520,552 394,836 (125,716 )
Total 1,035,737 1,058,968 23,231
Music
Recorded Music - Streaming 148,680 184,188 35,508
Recorded Music - Others 73,883 103,859 29,976
Music Publishing 65,958 82,779 16,821
Visual Media and Platform 53,370 51,362 (2,008 )
Total 341,891 422,188 80,297
Pictures
Motion Pictures 104,040 156,890 52,850
Television Productions 158,995 142,575 (16,420 )
Media Networks 94,100 104,594 10,494
Total 357,135 404,059 46,924
Entertainment, Technology & Services
Televisions 114,515 116,313 1,798
Audio and Video 78,056 79,995 1,939
Still and Video Cameras 106,307 133,743 27,436
Mobile Communications 71,212 63,261 (7,951 )
Other 113,531 129,565 16,034
Total 483,621 522,877 39,256
Imaging & Sensing Solutions 326,278 381,260 54,982
Financial Services 468,267 670,576 202,309
All Other 19,490 18,772 (718 )
Corporate 8,426 2,266 (6,160 )
Consolidated total 3,040,845 3,480,966 440,121

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; 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.

F-15

(Condensed Financial Services Financial Statements)

The following schedules show unaudited condensed financial statements for the Financial Services segment and all other segments excluding Financial Services. These presentations are not in accordance with IFRS, which is used by Sony to prepare its 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 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 condensed consolidated financial statements column is presented net of the elimination and/or offset of such intercompany balances and deferred tax assets and liabilities.

Condensed Statements of Financial Position

Yen in millions
Financial Services Sony without Financial Services Consolidated
April 1,
2022
Restated 		March 31,
2023
Restated 		March 31,
2024 		April 1,
2022
Restated 		March 31,
2023
Restated 		March 31,
2024 		April 1,
2022
Restated 		March 31,
2023
Restated 		March 31,
2024
ASSETS
Current assets:
Cash and cash equivalents ¥ 889,140 ¥ 756,493 ¥ 913,815 ¥ 1,160,496 ¥ 724,407 ¥ 993,298 ¥ 2,049,636 ¥ 1,480,900 ¥ 1,907,113
Investments and advances in the Financial Services segment 360,681 328,358 398,153 - - - 360,681 328,358 398,153
Trade and other receivables, and contract assets 163,037 127,413 127,016 1,478,620 1,668,257 2,033,170 1,621,629 1,770,948 2,158,196
Inventories - - - 874,007 1,468,042 1,518,644 874,007 1,468,042 1,518,644
Other financial assets 81,174 47,044 57,254 68,124 63,906 68,111 149,301 110,950 125,365
Other current assets 27,893 16,029 50,487 450,953 562,442 625,539 428,522 563,334 669,335
Total current assets 1,521,925 1,275,337 1,546,725 4,032,200 4,487,054 5,238,762 5,483,776 5,722,532 6,776,806
Non-current assets:
Investments accounted for using the equity method - - 4,905 268,513 325,220 418,839 268,513 325,220 423,744
Investments and advances in the Financial Services segment 18,251,612 18,237,761 18,939,794 - - - 18,251,612 18,237,761 18,939,794
Investments in Financial Services, at cost - - - 550,483 550,483 550,483 - - -
Property, plant and equipment 18,010 15,316 14,162 1,095,241 1,329,219 1,508,151 1,113,213 1,344,864 1,522,640
Right-of-use assets 73,774 84,023 76,288 339,658 395,210 428,224 413,430 478,063 503,395
Goodwill and intangible assets, including content assets 72,578 78,197 77,323 2,672,466 3,322,639 3,953,492 2,745,044 3,400,836 4,030,815
Deferred tax assets 2,335 2,687 - 332,330 431,533 520,613 300,924 393,107 499,550
Other financial assets 37,037 46,941 52,882 663,233 789,470 848,599 696,306 832,344 897,341
Other non-current assets 167,744 172,565 165,049 284,834 319,306 421,258 379,137 419,368 513,405
Total non-current assets 18,623,090 18,637,490 19,330,403 6,206,758 7,463,080 8,649,659 24,168,179 25,431,563 27,330,684
Total assets ¥ 20,145,015 ¥ 19,912,827 ¥ 20,877,128 ¥ 10,238,958 ¥ 11,950,134 ¥ 13,888,421 ¥ 29,651,955 ¥ 31,154,095 ¥ 34,107,490
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings ¥ 1,964,776 ¥ 1,891,856 ¥ 1,802,337 ¥ 183,187 ¥ 211,020 ¥ 227,979 ¥ 2,147,962 ¥ 2,102,876 ¥ 2,030,316
Trade and other payables 119,017 77,703 61,153 1,744,011 1,812,670 2,005,112 1,843,338 1,866,101 2,064,905
Deposits from customers in the banking business 2,886,361 3,163,237 3,670,567 - - - 2,886,361 3,163,237 3,670,567
Income taxes payables 3,789 15,213 10,050 101,648 139,330 142,024 105,437 154,543 152,074
Participation and residual liabilities in the Pictures segment - - - 190,162 230,223 251,743 190,162 230,223 251,743
Other financial liabilities 98,029 77,605 77,523 29,050 30,444 38,522 127,079 108,049 116,044
Other current liabilities 218,865 194,174 209,555 1,297,115 1,514,792 1,704,158 1,465,326 1,693,380 1,906,396
Total current liabilities 5,290,837 5,419,788 5,831,185 3,545,173 3,938,479 4,369,538 8,765,665 9,318,409 10,192,045
Non-current liabilities:
Long-term debt 470,498 663,353 703,106 733,148 1,104,344 1,355,011 1,203,646 1,767,696 2,058,117
Defined benefit liabilities 37,167 37,183 39,284 217,381 198,938 208,299 254,548 236,121 247,583
Deferred tax liabilities 58,666 60,554 36,368 110,715 112,938 165,877 120,582 117,621 166,424
Insurance contract liabilities 13,042,875 12,364,973 12,931,995 - - - 13,042,875 12,364,973 12,931,995
Participation and residual liabilities in the Pictures segment - - - 220,113 192,952 206,081 220,113 192,952 206,081
Other financial liabilities 147,712 175,026 214,414 86,391 199,327 175,263 231,463 371,580 386,761
Other non-current liabilities 5,864 7,225 7,607 121,558 142,096 176,767 106,481 127,593 162,379
Total non-current liabilities 13,762,782 13,308,314 13,932,774 1,489,306 1,950,595 2,287,298 15,179,708 15,178,536 16,159,340
Total liabilities 19,053,619 18,728,102 19,763,959 5,034,479 5,889,074 6,656,836 23,945,373 24,496,945 26,351,385
Equity:
Stockholders' equity of Financial Services 1,087,948 1,180,905 1,113,169 - - - - - -
Stockholders' equity of Sony without Financial Services - - - 5,155,149 6,006,267 7,062,657 - - -
Sony Group Corporation's stockholders' equity - - - - - - 5,653,804 6,598,537 7,587,177
Noncontrolling interests 3,448 3,820 - 49,330 54,793 168,928 52,778 58,613 168,928
Total equity 1,091,396 1,184,725 1,113,169 5,204,479 6,061,060 7,231,585 5,706,582 6,657,150 7,756,105
Total liabilities and equity ¥ 20,145,015 ¥ 19,912,827 ¥ 20,877,128 ¥ 10,238,958 ¥ 11,950,134 ¥ 13,888,421 ¥ 29,651,955 ¥ 31,154,095 ¥ 34,107,490

F-16

Condensed Statements of Income

Yen in millions
Fiscal year ended March 31
Financial Services Sony without
Financial Services 		Consolidated
2023
Restated 		2024 2023
Restated 		2024 2023
Restated 		2024
Sales ¥ - ¥ - ¥ 10,101,979 ¥ 11,265,043 ¥ 10,095,841 ¥ 11,260,037
Financial services revenue 889,082 1,769,954 - - 878,532 1,760,731
Total sales and financial services revenue 889,082 1,769,954 10,101,979 11,265,043 10,974,373 13,020,768
Cost of sales - - 7,186,767 8,101,990 7,174,723 8,089,317
Selling, general and administrative - - 1,961,906 2,148,472 1,969,170 2,156,156
Financial services expenses 575,111 1,615,594 - - 564,561 1,606,370
Other operating (income) expense, net (4,147 ) (19,271 ) (5,566 ) (10,133 ) (12,021 ) (29,404 )
Total costs and expenses 570,964 1,596,323 9,143,107 10,240,329 9,696,433 11,822,439
Share of profit (loss) of investments accounted for using the equity method - (55 ) 24,449 10,557 24,449 10,502
Operating income 318,118 173,576 983,321 1,035,271 1,302,389 1,208,831
Financial income (expenses), net - - 13,437 109,864 (27,893 ) 59,831
Income before income taxes 318,118 173,576 996,758 1,145,135 1,274,496 1,268,662
Income taxes 89,897 49,063 172,528 239,105 262,723 288,168
Net income 228,221 124,513 824,230 906,030 1,011,773 980,494
Net income of Financial Services ¥ 227,849 ¥ 123,986 ¥ - ¥ - ¥ - ¥ -
Net income of Sony without Financial Services ¥ - ¥ - ¥ 818,106 ¥ 896,636 ¥ - ¥ -
Net income attributable to Sony Group Corporation's stockholders ¥ - ¥ - ¥ - ¥ - ¥ 1,005,277 ¥ 970,573
Net income attributable to noncontrolling interests ¥ 372 ¥ 527 ¥ 6,124 ¥ 9,394 ¥ 6,496 ¥ 9,921

F-17

Yen in millions
Three months ended March 31
Financial Services Sony without
Financial Services 		Consolidated
2023
Restated 		2024 2023
Restated 		2024 2023
Restated 		2024
Sales ¥ - ¥ - ¥ 2,574,348 ¥ 2,810,987 ¥ 2,572,578 ¥ 2,810,390
Financial services revenue 470,575 672,885 - - 468,267 670,576
Total sales and financial services revenue 470,575 672,885 2,574,348 2,810,987 3,040,845 3,480,966
Cost of sales - - 1,935,980 1,995,563 1,932,866 1,992,922
Selling, general and administrative - - 549,399 605,728 550,759 607,776
Financial services expenses 418,618 666,325 - - 416,310 664,015
Other operating (income) expense, net 143 (19,602 ) 115 6,011 257 (13,591 )
Total costs and expenses 418,761 646,723 2,485,494 2,607,302 2,900,192 3,251,122
Share of profit (loss) of investments accounted for using the equity method - (55 ) 5,887 (347 ) 5,887 (402 )
Operating income 51,814 26,107 94,741 203,338 146,540 229,442
Financial income (expenses), net - - 16,136 47,036 16,138 47,036
Income before income taxes 51,814 26,107 110,877 250,374 162,678 276,478
Income taxes 16,350 6,188 4,366 76,265 20,716 82,453
Net income 35,464 19,919 106,511 174,109 141,962 194,025
Net income of Financial Services ¥ 35,326 ¥ 19,843 ¥ - ¥ - ¥ - ¥ -
Net income of Sony without Financial Services ¥ - ¥ - ¥ 105,668 ¥ 169,165 ¥ - ¥ -
Net income attributable to Sony Group Corporation's stockholders ¥ - ¥ - ¥ - ¥ - ¥ 140,981 ¥ 189,005
Net income attributable to noncontrolling interests ¥ 138 ¥ 76 ¥ 843 ¥ 4,944 ¥ 981 ¥ 5,020

F-18

Condensed Statements of Cash Flows

Yen in millions
Fiscal year ended March 31
Financial Services Sony without
Financial Services 		Consolidated
2023
Restated 		2024 2023 2024 2023
Restated 		2024
Cash flows from operating activities:
Income (loss) before income taxes ¥ 318,118 ¥ 173,576 ¥ 996,758 ¥ 1,145,135 ¥ 1,274,496 ¥ 1,268,662
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 26,333 27,689 978,257 1,117,292 1,004,590 1,144,981
Other operating (income) expense, net (4,147 ) (19,271 ) (5,566 ) (10,133 ) (12,021 ) (29,404 )
(Gain) loss on securities, net (other than Financial Services segment) - - 4,469 (73,166 ) 4,469 (73,166 )
Changes in assets and liabilities:
(Increase) decrease in trade receivables and contract assets 35,623 (20,843 ) (110,668 ) (200,071 ) (70,349 ) (243,646 )
(Increase) decrease in inventories - - (560,382 ) 75,641 (560,382 ) 75,641
(Increase) decrease in investments and advances in the Financial Services segment (1,093,792 ) (1,748,913 ) - - (1,093,792 ) (1,748,913 )
(Increase) decrease in content assets - - (594,547 ) (486,183 ) (594,547 ) (486,183 )
Increase (decrease) in trade payables (40,059 ) 27,116 (62,691 ) (40,882 ) (107,250 ) 9,188
Increase (decrease) in insurance contract liabilities, net of insurance contract assets 330,654 1,370,580 - - 330,654 1,370,580
Increase (decrease) in deposits from customers in the banking business 300,201 536,688 - - 300,201 536,688
Increase (decrease) in borrowings in the life insurance business and the banking business 111,314 (41,516 ) - - 111,314 (41,516 )
Increase (decrease) in taxes payable other than income taxes, net 112 387 4,071 (22,878 ) 4,183 (22,491 )
Other (40,639 ) (59,081 ) (234,228 ) (326,927 ) (276,875 ) (387,208 )
Net cash provided by (used in) operating activities (56,282 ) 246,412 415,473 1,177,828 314,691 1,373,213
Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets (24,195 ) (18,167 ) (590,320 ) (606,844 ) (613,635 ) (623,946 )
Payments for investments and advances (other than Financial Services segment) - - (191,129 ) (95,506 ) (191,129 ) (95,506 )
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment) - - 13,548 92,679 13,548 92,679
Other 393 (7,560 ) (264,125 ) (184,553 ) (261,448 ) (192,113 )
Net cash provided by (used in) investing activities (23,802 ) (25,727 ) (1,032,026 ) (794,224 ) (1,052,664 ) (818,886 )
Cash flows from financing activities:
Increase (decrease) in borrowings, net (11,226 ) (11,633 ) 273,195 90,289 261,969 78,656
Dividends paid (41,335 ) (50,037 ) (86,568 ) (98,620 ) (86,568 ) (98,620 )
Other (2 ) (1,693 ) (91,100 ) (188,977 ) (91,101 ) (190,745 )
Net cash provided by (used in) financing activities (52,563 ) (63,363 ) 95,527 (197,308 ) 84,300 (210,709 )
Effect of exchange rate changes on cash and cash equivalents - - 84,937 82,595 84,937 82,595
Net increase (decrease) in cash and cash equivalents (132,647 ) 157,322 (436,089 ) 268,891 (568,736 ) 426,213
Cash and cash equivalents at beginning of the fiscal year 889,140 756,493 1,160,496 724,407 2,049,636 1,480,900
Cash and cash equivalents at end of the fiscal year ¥ 756,493 ¥ 913,815 ¥ 724,407 ¥ 993,298 ¥ 1,480,900 ¥ 1,907,113

F-19

Going Concern Assumption

Not Applicable

Accounting Policy and Other Information

(Changes in accounting policies)

Sony newly adopted the following accounting standards and interpretations from the fiscal year ending March 31, 2024:

IFRS 17 "Insurance Contracts"

The IASB issued IFRS 17 "Insurance Contracts" ("IFRS 17") in May 2017 and Amendments to IFRS 17 in June 2020 and December 2021. IFRS 17 replaces IFRS 4 "Insurance Contracts" and sets out principles for the recognition, measurement, presentation, and disclosure of insurance contracts within the scope of IFRS 17. IFRS 17 provides a general model, supplemented by a specific approach for contracts with direct participation features (the variable fee approach), and a simplified approach (the premium allocation approach) mainly for short-duration contracts.

IFRS 17 was effective for Sony as of April 1, 2023. Sony has retrospectively applied changes in accounting policies resulting from the adoption of IFRS 17 unless it was impracticable. Sony applied the modified retrospective approach, which uses reasonable and supportable information, or the fair value approach, which uses the fair value as of April 1, 2022, the transition date for IFRS 17, to identify, recognize, and measure certain groups of insurance contracts as of the transition date for IFRS 17, for which it was impracticable to apply the full retrospective approach. Therefore, Sony has restated the consolidated financial statements for comparative periods and the consolidated statement of financial position as of April 1, 2022 on the basis of the retrospective application of IFRS 17. The effects of the retrospective application of IFRS 17 on Sony's total equity as of April 1, 2022 are presented in the consolidated statements of changes in stockholders' equity.

F-20

(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
Fiscal year ended March 31
2023
Restated 		2024
Net income attributable to Sony Group Corporation's stockholders 1,005,277 970,573
Adjustment amount to net income attributable to Sony Group Corporation's stockholders for diluted EPS computation:
Zero coupon convertible bonds 51 -
Net income attributable to Sony Group Corporation's stockholders for diluted EPS computation 1,005,328 970,573
Thousands of shares
Fiscal year ended March 31
2023 2024
Weighted-average shares outstanding for basic EPS computation 1,235,701 1,231,242
Effect of dilutive securities:
Stock options 3,617 3,680
Restricted stock units 29 409
Zero coupon convertible bonds 2,030 -
Weighted-average shares for diluted EPS computation 1,241,377 1,235,331
Yen in millions
Three months ended March 31
2023
Restated 		2024
Net income attributable to Sony Group Corporation's stockholders for basic and diluted EPS computation 140,981 189,005
Thousands of shares
Three months ended March 31
2023 2024
Weighted-average shares outstanding for basic EPS computation 1,234,274 1,226,332
Effect of dilutive securities:
Stock options 3,521 3,588
Restricted stock units 100 564
Weighted-average shares for diluted EPS computation 1,237,895 1,230,484

(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 in Japan 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.

F-21

(Change in presentation)

Consolidated Statements of Cash Flows

Certain reclassifications of the consolidated statements of cash flows for the fiscal year ended March 31, 2023 have been made to conform to the presentation for the fiscal year ended March 31, 2024.

Subsequent Events

(Cancellation of shares of its common stock)

Based on the resolution of Sony Group Corporation's Representative Corporate Executive Officer delegated by the Board of Directors and the Companies Act of Japan, Sony Group Corporation canceled shares of its common stock held as treasury stock as follows.

1. Number of shares canceled: 12,612,300 shares

2. Cancellation date: April 10, 2024

(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 May 14, 2024.

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

2.Total purchase price for repurchase of shares: 250 billion yen (maximum)

3.Period of repurchase: May 15, 2024 to May 14, 2025

* The Total number of shares for repurchase shown in 1. above after the effective date of the stock split (October 1, 2024) described below will be 150 million shares (maximum).

(Stock Split)

Sony Group Corporation approved the implementation of a stock split of its common stock as follows at the meeting of its Board of Directors held on May 14, 2024.

1. Method of Stock Split

Each share of Sony Group Corporation's common stock owned by shareholders whose names appear on the register of shareholders as of the close of the record date of September 30, 2024, will be split into five (5) shares per share.

2. Number of shares to be increased by Stock Split

(i) Total number of issued shares before stock split: 1,248,619,589 shares
(ii) Number of shares to be increased by stock split: 4,994,478,356 shares
(iii) Total number of issued shares following stock split: 6,243,097,945 shares
(iv) Total number of authorized shares following stock split: 18,000,000,000 shares

* Total number of issued shares shown above is based on the total number of issued shares as of April 30, 2024, and may increase by the record date of the stock split due to the exercise of stock acquisition rights.

3. Schedule of Stock Split

(i) Public notice of record date: September 13, 2024
(ii) Record date: September 30, 2024
(iii) Effective date: October 1, 2024

4. Partial Amendment to Articles of Incorporation

Sony Group Corporation plans to amend its Articles of Incorporation to increase the total number of shares authorized to be issued by Sony Group Corporation from 3.6 billion to 18.0 billion, in accordance with Article 184, Paragraph 2 of the Companies Act of Japan, effective on October 1, 2024, which is the effective date of the stock split.

F-22

Consolidated Results for the Fiscal Year Ended March 31, 2024

As the results for the fiscal year ended March 31, 2023 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the fiscal year ended March 31, 2023.

(Yen in billions, except per share amounts)
Fiscal Year ended March 31
Consolidated 2023
Restated 		2024 Change
Sales *1 10,974.4 13,020.8 +2,046.4
Operating income 1,302.4 1,208.8 -93.6
Operating income margin 11.9 % 9.3 % -2.6 pts
Income before income taxes 1,274.5 1,268.7 -5.8
Net income attributable to Sony Group Corporation's stockholders 1,005.3 970.6 -34.7
Adjusted OIBDA *2 1,816.9 1,826.1 +9.3
Adjusted EBITDA *2 1,797.6 1,818.0 +20.4
Net income attributable to Sony Group Corporation's stockholders per share of common stock:
- Basic ¥ 813.53 ¥ 788.29 ¥ -25.24
- Diluted 809.85 785.68 -24.17
(Yen in billions, except per share amounts)
Fiscal Year ended March 31
Sony without Financial Services *3 2023
Restated 		2024 Change
Sales *1 10,102.0 11,265.0 +1,163.1
Operating income 983.3 1,035.3 +52.0
Operating income margin 9.7 % 9.2 % -0.5 pts
Income before income taxes 996.8 1,145.1 +148.4
Net income attributable to Sony Group Corporation's stockholders 818.1 896.6 +78.5
Adjusted OIBDA *2 1,493.5 1,644.6 +151.1
Adjusted EBITDA *2 1,515.6 1,686.5 +170.9
Net income attributable to Sony Group Corporation's stockholders per share of common stock:
- Basic 662.06 728.24 +66.18
- Diluted 659.07 725.83 +66.76
Net cash provided by operating activities 415.5 1,177.8 +762.4
Net cash used in investing activities (1,032.0 ) (794.2 ) +237.8
Total (616.6 ) 383.6 +1,000.2

*1"Sales and Financial Services revenue" are shown as "Sales" (the same applies below).

*2Adjusted OIBDA (Operating Income Before Depreciation and Amortization) and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) are not measures in accordance with IFRS. However, Sony believes that these disclosures may be useful information to investors. Please refer to "Supplemental Information" on pages 12 to 14 for more details, including the formulas and reconciliations for Adjusted OIBDA and Adjusted EBITDA (the same applies below).

*3Figures for Sony without Financial Services are not measures in accordance with IFRS. However, Sony believes that these disclosures may be useful information to investors. Please refer to page F-16 for details about the preparation of the Condensed Financial Statements (the same applies below).

The average foreign exchange rates during the fiscal years ended March 31, 2023 and 2024 are presented below.

Fiscal Year ended March 31
2023 2024 Change
1 U.S. dollar ¥ 135.4 ¥ 144.4 9.0 yen depreciation
1 Euro 140.9 156.6 15.7 yen depreciation

- 1 -

Sales increased 2 trillion 46.4 billion yen (19%) compared to the previous fiscal year ("year-on-year") to 13 trillion 20.8 billion yen. This significant increase was mainly due to significant increases in sales in the Financial Services, Game & Network Services ("G&NS"), Music and Imaging & Sensing Solutions ("I&SS") segments. On a constant currency basis, sales increased approximately 13% year-on-year. For further details about the impact of foreign exchange rate fluctuations on sales and operating income (loss), see Note on page 10.

Operating income decreased 93.6 billion yen year-on-year to 1 trillion 208.8 billion yen. This decrease was mainly due to a significant decrease in operating income in the Financial Services segment and a decrease in operating income in the I&SS segment, partially offset by increases in operating income in the G&NS and Music segments.

Operating income for the current fiscal year included the following:

·Remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method: 6.0 billion yen (Music segment)

·Realized and remeasurement gains resulting from the transfer of a portion of shares of Sony Payment Services Inc. ("Sony Payment Services"): 19.8 billion yen (Financial Services segment)

Operating income for the previous fiscal year included the following:

·Impact of litigation settlements, net of expenses, received in relation to lawsuits for Recorded Music and Music Publishing: 5.7 billion yen (Music segment)

·Recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life Insurance Co., Ltd. ("Sony Life") which occurred in the previous fiscal year: 22.1 billion yen (Financial Services segment)

The share of profit (loss) of investments accounted for using the equity method, recorded within operating income, decreased 13.9 billion yen year-on-year to 10.5 billion yen. This significant decrease was mainly due to a decrease in the share of profit of investments in All Other.

The net effect of financial income and expenses was income of 59.8 billion yen, compared to an expense of 27.9 billion yen in the previous fiscal year. This significant improvement was primarily due to the recording of unrealized gains mainly on Sony's shares of Spotify Technology S.A. in the current fiscal year, compared to the recording of unrealized losses on such shares in the previous fiscal year.

Income before income taxes was 1 trillion 268.7 billion yen, essentially flat year-on-year.

During the current fiscal year, Sony recorded 288.2 billion yen of income tax expense, resulting in an effective tax rate of 22.7%, which was higher than the effective tax rate of 20.6% in the previous fiscal year. This higher tax rate was mainly due to the absence of a decrease in deferred tax liabilities that occurred in the previous fiscal year related to Japan controlled foreign company taxation, partially offset mainly by a 7.6 billion yen decrease in tax expense in the current fiscal year from the dissolution of a subsidiary.

Net income attributable to Sony Group Corporation's stockholders, which deducts net income attributable to noncontrolling interests, decreased 34.7 billion yen year-on-year to 970.6 billion yen.

Adjusted OIBDA was 1 trillion 826.1 billion yen, essentially flat year-on-year. This result was mainly due to a significant increase in Adjusted OIBDA in the G&NS segment as well as increases in Adjusted OIBDA in the Music and I&SS segments, substantially offset by a significant decrease in Adjusted OIBDA in the Financial Services segment. Adjusted EBITDA was 1 trillion 818.0 billion yen, essentially flat year-on-year. This result was mainly due to the same factors affecting Adjusted OIBDA and a decrease in net foreign exchange losses recorded within financial expenses.

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Cash Flows

For Consolidated Statements of Cash Flows, charts showing Sony's cash flow information for all segments, all segments excluding the Financial Services segment and the Financial Services segment alone, please refer to pages F-8 and F-19.

Operating Activities: During the current fiscal year, there was a net cash inflow of 1 trillion 373.2 billion yen from operating activities, an increase of 1 trillion 58.5 billion yen year-on-year.

For all segments excluding the Financial Services segment, there was a net cash inflow of 1 trillion 177.8 billion yen, an increase of 762.4 billion yen year-on-year. This increase was primarily due to a decrease in inventories compared to an increase in the previous fiscal year and a year-on-year increase in income before income taxes after taking into account non-cash adjustments (including depreciation and amortization, including amortization of contract costs, other operating (income) expense, net and (gain) loss on securities, net). This increase in net cash inflow was partially offset by the negative impact of a larger increase in trade receivables and contract assets.

The Financial Services segment had a net cash inflow of 246.4 billion yen, compared to a net cash outflow of 56.3 billion yen in the previous fiscal year. This change was mainly due to a year-on-year increase in sales of investments in the Financial Services segment.

Investing Activities: During the current fiscal year, Sony used 818.9 billion yen of net cash in investing activities, a decrease of 233.8 billion yen year-on-year.

For all segments excluding the Financial Services segment, there was a net cash outflow of 794.2 billion yen, a decrease of 237.8 billion yen year-on-year. This decrease was mainly due to the acquisition of shares of Bungie, Inc., an additional investment in Epic Games, Inc. and a payment related to the acquisition of Industrial Media, all of which were incurred in the previous fiscal year.

The Financial Services segment used 25.7 billion yen of net cash in investing activities, essentially flat year-on-year.

Financing Activities: Net cash outflow from financing activities during the current fiscal year was 210.7 billion yen, compared to a net cash inflow of 84.3 billion yen in the previous fiscal year.

For all segments excluding the Financial Services segment, there was a 197.3 billion yen net cash outflow, compared to a net cash inflow of 95.5 billion yen in the previous fiscal year. The cash outflow in the current fiscal year was primarily due to the procurement of long-term bank loans in the previous fiscal year and a year-on-year increase in payments for the repurchase of Sony's own common stock.

In the Financial Services segment, there was a 63.4 billion yen net cash outflow, an increase of 10.8 billion yen year-on-year. This increase was mainly due to an increase in dividend payments.

Total Cash and Cash Equivalents: Accounting for the above factors and the effect of fluctuations in foreign exchange rates, the total outstanding balance of cash and cash equivalents as of March 31, 2024 was 1 trillion 907.1 billion yen. Cash and cash equivalents of all segments excluding the Financial Services segment was 993.3 billion yen as of March 31, 2024, an increase of 268.9 billion yen compared with the balance as of March 31, 2023. Within the Financial Services segment, the outstanding balance of cash and cash equivalents was 913.8 billion yen as of March 31, 2024, an increase of 157.3 billion yen compared with the balance as of March 31, 2023.

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Outlook for the Fiscal Year Ending March 31, 2025

The forecast for consolidated results for the fiscal year ending March 31, 2025 is as follows:

(Yen in billions)
Consolidated March 31, 2024
Results 		March 31, 2025 May Forecast Change from
March 31, 2024 Results
Sales 13,020.8 12,310 ¥ -710.8 bil -5.5 %
Operating income 1,208.8 1,275 +66.2 bil +5.5
Operating income margin 9.3 % 10.4 % +1.1 pts -
Income before income taxes 1,268.7 1,255 -13.7 bil -1.1
Net income attributable to Sony Group Corporation's stockholders 970.6 925 -45.6 bil -4.7
Adjusted OIBDA 1,826.1 1,940 +113.9 bil +6.2
Adjusted EBITDA 1,818.0 1,930 +112.0 bil +6.2
(Yen in billions)
Sony without Financial Services March 31, 2024 Results March 31, 2025 May Forecast Change from
March 31, 2024 Results
Sales 11,265.0 11,400 ¥ +135.0 bil +1.2%
Operating income 1,035.3 1,130 +94.7 bil +9.2
Operating income margin 9.2 % 9.9 % +0.7 pts -
Income before income taxes 1,145.1 1,110 -35.1 bil -3.1
Net income attributable to Sony Group Corporation's stockholders 896.6 820 -76.6 bil -8.5
Adjusted OIBDA 1,644.6 1,770 +125.4 bil +7.6
Adjusted EBITDA 1,686.5 1,760 +73.5 bil +4.4
Net cash provided by operating activities 1,177.8 1,400 +222.2 bil +18.9

Assumed foreign currency exchange rates for the fiscal year ending March 31, 2025 are below.

(For your reference)
Average foreign currency exchange rates
for the fiscal year ended March 31, 2024 		Assumed foreign currency exchange rates
for the fiscal year ending March 31, 2025
1 U.S. dollar 144.4 yen approximately 145 yen
1 Euro 156.6 yen approximately 157 yen

Sales are expected to decrease year-on-year primarily due to an expected significant decrease in sales in the Financial Services segment and expected decreases in the Entertainment, Technology & Services and G&NS segments, partially offset by an expected significant increase in sales in the I&SS segment and an expected increase in sales in the Music segment.

Operating income is expected to increase year-on-year primarily due to an expected significant increase in operating income in the I&SS segment and expected increases in operating income in the G&NS and Music segments, partially offset by an expected decrease in operating income in the Financial Services segment as well as a significant increase in the operating loss in All Other, Corporate and elimination.

Income before income taxes is expected to be essentially flat year-on-year, mainly due to an expected decrease in financial income as a result of unrealized gains and losses on securities not being included in the May forecast, compared to the previous fiscal year in which Sony recorded 71.4 billion yen of unrealized gains on securities, substantially offset by the impact of the above-mentioned increase in operating income.

Net income attributable to Sony Group Corporation's stockholders is expected to decrease year-on-year, mainly due to an expected increase in income taxes resulting from a decrease in tax credits in both Japan and the United States.

- 4 -

Adjusted OIBDA is expected to increase year-on-year primarily due to an expected significant increase in Adjusted OIBDA in the I&SS segment as well as expected increases in Adjusted OIBDA in the Music and G&NS segments, partially offset by an expected significant increase in Adjusted OIBDA loss in All Other, Corporate and elimination as well as an expected decrease in Adjusted OIBDA in the Financial Services segment. Adjusted EBITDA is expected to increase year-on-year due to the same factors affecting Adjusted OIBDA.

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Business Segment Information

Sales in each business segment represents sales recorded before intersegment transactions are eliminated. Operating income (loss) in each business segment represents operating income (loss) reported before intersegment transactions are eliminated and excludes unallocated corporate expenses. For details regarding each segment's product categories, please refer to page F-14.

Please refer to "Supplemental Information" on pages 12 to 14 for details of the reconciliation of Adjusted OIBDA from operating income in accordance with IFRS for the fiscal years ended March 31, 2023 and 2024, respectively. As the results for the fiscal year ended March 31, 2023 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the fiscal year ended March 31, 2023.

(Yen in billions)
March 31, 2023 Results Restated March 31, 2024 Results March 31, 2025 May Forecast
Game & Network Services (G&NS)
Sales 3,644.6 4,267.7 4,200
Operating income 250.0 290.2 310
Adjusted OIBDA 337.0 407.9 420
Music
Sales 1,380.6 1,619.0 1,690
Operating income 263.1 301.7 315
Adjusted OIBDA 316.4 368.7 400
Pictures
Sales 1,369.4 1,493.1 1,480
Operating income 119.3 117.7 120
Adjusted OIBDA 168.2 171.2 170
Entertainment, Technology & Services (ET&S)
Sales 2,476.0 2,453.7 2,370
Operating income 179.5 187.4 190
Adjusted OIBDA 276.9 289.1 290
Imaging & Sensing Solutions (I&SS)
Sales 1,402.2 1,602.7 1,840
Operating income 212.2 193.5 270
Adjusted OIBDA 408.9 441.4 545
All Other, Corporate and elimination
Operating loss (39.8 ) (55.2 ) (75 )
Adjusted OIBDA (12.9 ) (33.7 ) (55 )
Sony without Financial Services*1
Sales 10,102.0 11,265.0 11,400
Operating income 983.3 1,035.3 1,130
Adjusted OIBDA 1,493.5 1,644.6 1,770
Adjusted EBITDA*2 1,515.6 1,686.5 1,760
Financial Services*1
Financial services revenue 889.1 1,770.0 910
Operating income 318.1 173.6 145
Adjusted OIBDA 322.4 181.5 170
Consolidated*1
Sales 10,974.4 13,020.8 12,310
Operating income 1,302.4 1,208.8 1,275
Adjusted OIBDA 1,816.9 1,826.1 1,940
Adjusted EBITDA*2 1,797.6 1,818.0 1,930

*1 Transactions between the Financial Services segment and Sony without the Financial Services segment are included in those respective figures, but are eliminated in the consolidated figures. Because such eliminations are included in All Other, Corporate and elimination in full in the above chart, the figures for Sony without the Financial Services segment differ from the sum of the figures for all segments excluding the Financial Services segment (the same applies below).

*2 The differences between Adjusted EBITDA and Adjusted OIBDA on a consolidated basis represent financial income and financial expenses (excluding interest expenses, net, and gains on revaluation of equity instruments, net). Adjusted EBITDA by segment is not calculated and disclosed because Sony does not include financial income and financial expenses in its performance evaluations by segment, mainly due to the fact that Sony manages its foreign exchange exposure centrally and globally, except for the Financial Services segment.

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Game & Network Services (G&NS)

Results for the fiscal year ended March 31, 2024

Sales increased 623.1 billion yen (17%) year-on-year to 4 trillion 267.7 billion yen (a 9% increase on a constant currency basis). This significant increase in sales was mainly due to an increase in sales of non-first-party titles, including add-on content, and the impact of foreign exchange rates.

Operating income increased 40.2 billion yen year-on-year to 290.2 billion yen. This increase in operating income was mainly due to the impact of the above-mentioned increase in sales of non-first-party titles and the positive impact of foreign exchange rates, partially offset by the impact of an increase in losses from hardware, mainly due to promotions, and the impact of a decrease in sales of first-party titles. During the current fiscal year, there was a 38.6 billion yen positive impact from foreign exchange rate fluctuations.

Adjusted OIBDA significantly increased 70.9 billion yen year-on-year to 407.9 billion yen due to the same factors affecting operating income.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to decrease mainly due to an expected decrease in sales of hardware resulting from lower unit sales, partially offset by an expected increase in sales of non-first-party titles including add-on content. Operating income and Adjusted OIBDA are expected to increase mainly due to a decrease in losses from hardware resulting from the above-mentioned expected lower unit sales and the impact of an expected increase in Network Services sales, primarily from PlayStation®Plus, partially offset by the impact of an expected decrease in sales of first-party titles.

Music

The Music segment results include the yen-based results of Sony Music Entertainment (Japan) Inc. and the yen-translated results of Sony Music Entertainment ("SME") and Sony Music Publishing LLC ("SMP"), which aggregate the results of their worldwide subsidiaries on a U.S. dollar basis.

Results for the fiscal year ended March 31, 2024

Sales increased 238.3 billion yen year-on-year (17%) to 1 trillion 619.0 billion yen (a 12% increase on a constant currency basis). This significant increase in sales was primarily due to an increase in revenues from streaming services, primarily from paid subscriptions, in Recorded Music and Music Publishing and the impact of foreign exchange rates, as well as an increase in revenues from merchandise, live and other sales in Recorded Music.

Operating income increased 38.6 billion yen year-on-year to 301.7 billion yen. This increase in operating income was primarily due to the impact of the above-mentioned increases in sales for Recorded Music and Music Publishing, as well as the positive impact of foreign exchange rates and a 6.0 billion yen remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method. These factors were partially offset by an increase in selling, general and administrative expenses, as well as the impact of litigation settlements, net of expenses, of 5.7 billion yen received in the previous fiscal year in relation to lawsuits for Recorded Music and Music Publishing.

Adjusted OIBDA increased 52.3 billion yen year-on-year to 368.7 billion yen, mainly due to the same factors affecting operating income, excluding the above-mentioned impact of litigation settlements and the remeasurement gain.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to increase year-on-year mainly due to higher revenues primarily from streaming services in Recorded Music and Music Publishing. Operating income is expected to increase year-on-year mainly due to the impact of the above-mentioned increase in sales, partially offset by an expected increase in depreciation and amortization expenses as well as the absence of the 6.0 billion yen remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method, which was recorded in the fiscal year ended March 31, 2024. Adjusted OIBDA is also expected to increase year-on-year primarily due to the same factors affecting operating income, excluding the above-mentioned increase in depreciation and amortization expenses and the remeasurement gain.

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Pictures

The Pictures segment results are the yen-translated results of Sony Pictures Entertainment Inc. ("SPE"), which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis. Management analyzes the results of SPE in U.S. dollars, so discussion of certain portions of its results is specified as being on "a U.S. dollar basis."

Results for the fiscal year ended March 31, 2024

Sales increased 123.6 billion yen, a 9% increase year-on-year (a 2% increase on a U.S. dollar basis), to 1 trillion 493.1 billion yen. This increase in sales on a U.S. dollar basis was primarily due to an increase in theatrical releases and higher revenues for Crunchyroll resulting from paid subscriber growth. These increases in sales were partially offset by a decrease in series deliveries in Television Productions due to the impact of the strikes in Hollywood and lower licensing revenues from catalog product in Motion Pictures compared to the previous fiscal year, which benefitted from the contribution of several franchise films released theatrically in the fiscal year ended March 31, 2022.

Operating income was 117.7 billion yen, essentially flat year-on-year (a 10% decrease on a U.S. dollar basis). This decrease in operating income on a U.S. dollar basis was primarily due to higher marketing costs in support of a greater number of theatrical releases, substantially offset by the impact of the above-mentioned increase in sales.

Adjusted OIBDA was 171.2 billion yen, essentially flat year-on-year (a 6% decrease on a U.S. dollar basis), primarily due to the same factors affecting operating income.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to be essentially flat year-on-year due to a decrease in series deliveries in Television Productions mainly due to the impact of the strikes in Hollywood, substantially offset by expected higher sales in Media Networks, primarily from Crunchyroll, and expected higher sales for films to be released theatrically in the fiscal year ending March 31, 2025 including several franchise films. Operating income and Adjusted OIBDA are expected to be essentially flat year-on-year due to the impact of the above-mentioned increase in sales for Media Networks, substantially offset by the impact of the above-mentioned decrease in sales for Television Productions.

Entertainment, Technology & Services (ET&S)

Results for the fiscal year ended March 31, 2024

Sales were 2 trillion 453.7 billion yen, essentially flat year-on-year (a 5% decrease on a constant currency basis). This result was primarily due to a decrease in sales of televisions resulting from lower unit sales, partially offset by the impact of foreign exchange rates.

Operating income increased 7.9 billion yen year-on-year to 187.4 billion yen. This increase in operating income was primarily due to the positive impact of foreign exchange rates and reductions in operating expenses, partially offset by the impact of the above-mentioned lower unit sales of televisions. During the current fiscal year, there was a 20.5 billion yen positive impact from foreign exchange rate fluctuations.

Adjusted OIBDA increased 12.2 billion yen year-on-year to 289.1 billion yen, primarily due to the same factors affecting operating income.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to decrease primarily due to a decrease in sales of televisions resulting from lower unit sales. Operating income and Adjusted OIBDA are expected to be essentially flat year-on-year due to reductions in operating expenses, substantially offset by the impact of the above-mentioned lower unit sales of televisions.

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Imaging & Sensing Solutions (I&SS)

Results for the fiscal year ended March 31, 2024

Sales increased 200.6 billion yen (14%) year-on-year to 1 trillion 602.7 billion yen (a 7% increase on a constant currency basis). This significant increase in sales was mainly due to an increase in sales of image sensors for mobile products resulting from an increase in unit sales as well as an improvement in the product mix, and the impact of foreign exchange rates.

Operating income decreased 18.7 billion yen year-on-year to 193.5 billion yen. This decrease in operating income was mainly due to an increase in depreciation and amortization expenses, an increase in costs associated with the launch of mass production of a new image sensor for mobile products, as well as an increase in manufacturing costs. These negative factors were partially offset by the impact of the above-mentioned increase in sales and the positive impact of foreign exchange rates. During the current fiscal year, there was a 62.3 billion yen positive impact from foreign exchange rate fluctuations.

Adjusted OIBDA increased 32.6 billion yen year-on-year to 441.4 billion yen, mainly due to the impact of the above-mentioned increase in sales and the positive impact of foreign exchange rates. These positive factors were partially offset by the above-mentioned increase in costs associated with the launch of mass production of a new image sensor for mobile products and increase in manufacturing costs.

Forecast for the fiscal year ending March 31, 2025

Sales are expected to significantly increase primarily due to an expected increase in sales of image sensors for mobile products resulting from an increase in unit sales as well as an improvement in the product mix. Operating income is expected to significantly increase year-on-year primarily due to the impact of the above-mentioned increase in sales and a decrease in costs associated with the launch of mass production of a new image sensor for mobile products, partially offset by an increase in manufacturing costs and an increase in depreciation and amortization expenses. Adjusted OIBDA is expected to significantly increase due to the same factors affecting operating income, excluding the above-mentioned increase in depreciation and amortization expenses.

Financial Services

The Financial Services segment results include Sony Financial Group Inc. ("SFGI") and SFGI's consolidated subsidiaries such as Sony Life, Sony Assurance Inc., and Sony Bank Inc. The results discussed in the Financial Services segment differ from the results that SFGI and SFGI's consolidated subsidiaries disclose separately on a Japanese statutory basis.

Results for the fiscal year ended March 31, 2024

Financial services revenue increased 880.9 billion yen year-on-year to 1 trillion 770.0 billion yen, mainly due to a significant increase in revenue at Sony Life. Revenue at Sony Life increased 843.1 billion yen year-on-year to 1 trillion 523.9 billion yen, mainly due to an increase in net gains on investments in the separate accounts related to market fluctuations.

Operating income decreased 144.5 billion yen year-on-year to 173.6 billion yen. This significant decrease in operating income was mainly due to a significant decrease in operating income at Sony Life, as well as the recording of a 22.1 billion yen gain from the recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life in the previous fiscal year, partially offset by the recording of 19.8 billion yen in realized and remeasurement gains resulting from the transfer of a portion of shares of Sony Payment Services. Operating income at Sony Life decreased 143.5 billion yen year-on-year to 126.4 billion yen, mainly due to the decrease in net gains related to market fluctuations for variable life insurance and other products, and the recording of a gain from the sale of real estate in the previous fiscal year.

Adjusted OIBDA significantly decreased 140.9 billion yen year-on-year to 181.5 billion yen, primarily due to the same factors affecting operating income, excluding the above-mentioned realized and remeasurement gains and the impact of the recovery of the unauthorized withdrawal of funds.

Forecast for the fiscal year ending March 31, 2025

Financial services revenue is expected to significantly decrease year-on-year primarily due to absence of the increase in net gains on investments related to market fluctuations in the separate accounts at Sony Life recorded in the fiscal year ended March 31, 2024. Operating income is expected to decrease year-on-year primarily due to the absence of the realized and remeasurement gains resulting from the transfer of a portion of shares of Sony Payment Services, as well as the absence of recording of the gains related to market fluctuations for variable life insurance and other products in the fiscal year ended March 31, 2024. Adjusted OIBDA is expected to decrease due to the same factors affecting operating income, excluding the above-mentioned realized and remeasurement gains.

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The effects of future gains and losses on investments held by the Financial Services segment due to market fluctuations have not been incorporated within the above forecast as it is difficult for Sony to predict market trends in the future. Accordingly, future market fluctuations could further impact the above forecast.

The above forecast is based on management's current expectations and is subject to uncertainties and changes in circumstances. Actual results may differ materially from those included in this forecast due to a variety of factors. See "Cautionary Statement" below.

Note

Sales on a Constant Currency Basis and Impact of Foreign Exchange Rate Fluctuations

The descriptions of sales on a constant currency basis reflect sales calculated by applying the yen's monthly average exchange rates from the same period of the previous fiscal year to local currency-denominated monthly sales in the relevant period of the current fiscal year. For SME and SMP in the Music segment, and in the Pictures segment, the constant currency amounts are calculated by applying the monthly average U.S. dollar / yen exchange rates after aggregation on a U.S. dollar basis.

Results for the Pictures segment are described on a U.S. dollar basis as the Pictures segment reflects the operations of SPE, a U.S.-based operation that aggregates the results of its worldwide subsidiaries in U.S. dollars.

The impact of foreign exchange rate fluctuations on sales is calculated by applying the change in the yen's periodic weighted average exchange rate for the same period of the previous fiscal year from the relevant period of the current fiscal year to the major transactional currencies in which the sales are denominated. The impact of foreign exchange rate fluctuations on operating income (loss) is calculated by subtracting from the impact on sales the impact on cost of sales and selling, general and administrative expenses calculated by applying the same major transactional currencies calculation process to cost of sales and selling, general and administrative expenses as for the impact on sales. The I&SS segment enters into its own foreign exchange hedging transactions, and the impact of those transactions is included in the impact of foreign exchange rate fluctuations on sales and operating income (loss) for that segment.

This information is not a substitute for Sony's consolidated financial statements measured in accordance with IFRS. However, Sony believes that these disclosures provide additional useful analytical information to investors regarding the operating performance of Sony.

- 10 -

Financial Targets of Mid-Range Plan

(1) Financial Targets and Results of the Fourth Mid-Range Plan

In the Fourth Mid-Range Plan for the three fiscal years started on April 1, 2021 and ended on March 31, 2024, Sony established a financial target (Group KPI) of cumulative Adjusted EBITDA of 4.3 trillion yen on a consolidated basis. As a result of progress exceeding the initial plan, mainly in the Music and Pictures segments, the cumulative results were approximately 5.1 trillion yen, 19% higher than the target.

(2) Financial Targets of the Fifth Mid-Range Plan

In the Fifth Mid-Range Plan for the three fiscal years started on April 1, 2024 and ending on March 31, 2027, Sony has placed greater emphasis on profit-based growth, and has set as the most important metrics (Group KPIs) the growth rate of consolidated operating income and the operating income margin for Sony without the Financial Services segment. Specifically, Sony will target an average annual growth rate of consolidated operating income for the three-year period of 10% or more, and a three-year cumulative consolidated operating income margin of 10% or more.

(3) Shareholder Returns

Regarding shareholder returns, Sony plans to place emphasis on its total payout ratio, which Sony expects to gradually increase throughout the period of the Fifth Mid-Range Plan, aiming for approximately 40% in the fiscal year ending March 31, 2027, the final fiscal year of the plan. To achieve this target, Sony has set parameters of 250 billion yen for the repurchase of shares in the fiscal year ending March 31, 2025, which exceeds the amount Sony acquired in the fiscal year ended March 31, 2024. Please refer to the Note "Subsequent Events (Setting of parameters for repurchase of shares of its own common stock)" on Page F-22 for more details. Regarding dividends, Sony's policy is to continue to increase dividends steadily while accelerating the pace of dividend increases.

Dividend Information

In light of the consolidated financial results forecast for the fiscal year ending March 31, 2025 described in "Outlook for the Fiscal Year Ending March 31, 2025" above and other factors, Sony has determined the dividend forecasted for the fiscal year ending March 31, 2025 as follows. Sony intends to determine the actual amount of dividends based on an overall consideration of its consolidated operating results, financial condition, future business expansions and other factors.

Dividend per share (Yen)
March 31, 2023 Actual Dividend March 31, 2024 Actual Dividend March 31, 2025 Dividend Forecast
Interim dividend 35 40 50
Year-end dividend 40 45 10 *
Total 75 85 - *

* As described in the Note "Subsequent Events (Stock Split)" on Page F-22, Sony Group Corporation decided at the Board of Directors meeting held on May 14, 2024 to conduct a stock split, scheduled to be effective on October 1, 2024 with a record date of September 30, 2024. Each share of Sony's common stock will be split into five (5) shares per share. 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 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.

- 11 -

Basic Views on Selection of Accounting Standards

Sony has voluntarily adopted IFRS from the first quarter of the fiscal year ended March 31, 2022, with the goal of further streamlining and maintaining the quality of Sony's financial and management reporting systems over the mid- to long-term, and with the aim of improving the international comparability of financial information in the capital markets.

Supplemental Information

Regarding Adjusted OIBDA and Adjusted EBITDA

Sony believes that Adjusted OIBDA and Adjusted EBITDA are performance metrics suitable for the long-term management that Sony prioritizes. This is because (i) they represent the sustainable earnings power of the business as they do not include the effects of one-time gains and losses, (ii) they enable management to confirm that all the businesses of the Sony Group, including the Financial Services business, are expanding over the mid- to long-term through cycles of investment and return, and (iii) they are often used to calculate corporate value. Adjusted OIBDA and Adjusted EBITDA are not measures in accordance with IFRS. However, Sony believes that these disclosures may be useful information to investors. Adjusted OIBDA and Adjusted EBITDA should be considered in addition to, not as a substitute for, Sony's results in accordance with IFRS.

Adjusted OIBDA (Operating Income Before Depreciation and Amortization) is calculated by the following formula:

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 (Earnings Before Interest, Taxes, Depreciation and Amortization) is calculated by the following formula:

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

- 12 -

The following table shows a reconciliation of Adjusted OIBDA from operating income in accordance with IFRS for the fiscal years ended March 31, 2023 and 2024, respectively.

As the results for the fiscal year ended March 31, 2023 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the fiscal year ended March 31, 2023.

(Yen in billions)
Fiscal year ended March 31
2023
Restated 		2024
Game & Network Services (G&NS)
Operating income 250.0 290.2
Depreciation and amortization expense* 87.0 117.7
(Profit) / loss amount that Sony deems non-recurring** - -
Adjusted OIBDA 337.0 407.9
Music
Operating income 263.1 301.7
Depreciation and amortization expense* 59.0 73.1
(Profit) / loss amount that Sony deems non-recurring** (5.7 ) (6.0 )
Adjusted OIBDA 316.4 368.7
Pictures
Operating income 119.3 117.7
Depreciation and amortization expense* 48.9 53.5
(Profit) / loss amount that Sony deems non-recurring** - -
Adjusted OIBDA 168.2 171.2
Entertainment, Technology & Services (ET&S)
Operating income 179.5 187.4
Depreciation and amortization expense* 97.4 101.7
(Profit) / loss amount that Sony deems non-recurring** - -
Adjusted OIBDA 276.9 289.1
Imaging & Sensing Solutions (I&SS)
Operating income 212.2 193.5
Depreciation and amortization expense* 196.7 247.9
(Profit) / loss amount that Sony deems non-recurring** - -
Adjusted OIBDA 408.9 441.4
All Other, Corporate and elimination
Operating loss (39.8 ) (55.2 )
Depreciation and amortization expense* 26.8 21.5
(Profit) / loss amount that Sony deems non-recurring** - -
Adjusted OIBDA (12.9 ) (33.7 )
Sony without Financial Services
Operating income 983.3 1,035.3
Depreciation and amortization expense* 515.9 615.4
(Profit) / loss amount that Sony deems non-recurring** (5.7 ) (6.0 )
Adjusted OIBDA 1,493.5 1,644.6
Financial Services
Operating income 318.1 173.6
Depreciation and amortization expense* 26.3 27.7
(Profit) / loss amount that Sony deems non-recurring** (22.1 ) (19.8 )
Adjusted OIBDA 322.4 181.5
Consolidated
Operating income 1,302.4 1,208.8
Depreciation and amortization expense* 542.2 643.1
(Profit) / loss amount that Sony deems non-recurring** (27.8 ) (25.8 )
Adjusted OIBDA 1,816.9 1,826.1

- 13 -

The following table shows a reconciliation of net income attributable to Sony Group Corporation's stockholders reported in accordance with IFRS to Adjusted EBITDA for the fiscal years ended March 31, 2023 and 2024, respectively.

As the results for the fiscal year ended March 31, 2023 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the fiscal year ended March 31, 2023.

Consolidated Sony without
Financial Services
(Yen in billions) (Yen in billions)
Fiscal year ended March 31 Fiscal year ended March 31
2023
Restated 		2024 2023
Restated 		2024
Net income attributable to Sony Group Corporation's stockholders 1,005.3 970.6 818.1 896.6
Net income attributable to noncontrolling interests 6.5 9.9 6.1 9.4
Income taxes 262.7 288.2 172.5 239.1
Interest expenses, net, recorded in Financial income and Financial expense 4.0 3.4 4.0 3.4
(Gain) / loss on revaluation of equity instruments, net, recorded in Financial income and Financial expense 4.6 (71.4 ) 4.6 (71.4 )
Depreciation and amortization expense* 542.2 643.1 515.9 615.4
(Profit) / loss amount that Sony deems non-recurring** (27.8 ) (25.8 ) (5.7 ) (6.0 )
Adjusted EBITDA 1,797.6 1,818.0 1,515.6 1,686.5

* Depreciation and amortization expense excludes amortization for film costs and broadcasting rights, as well as for internally developed game content and master recordings included in Content assets.

** The following table shows the details of the profit and loss amount that Sony deems non-recurring in calculating Adjusted OIBDA and Adjusted EBITDA for the fiscal years ended March 31, 2023 and 2024, respectively.

Consolidated Sony without
Financial Services
(Yen in billions) (Yen in billions)
Fiscal year ended March 31 Fiscal year ended March 31
2023
Restated 		2024 2023
Restated 		2024
(Profit) / loss amount that Sony deems non-recurring
Impact of litigation settlements, net of expenses, received in relation to lawsuits for Recorded Music and Music Publishing (Music segment) (5.7 ) - (5.7 ) -
Recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life which occurred in the three months ended June 30, 2021 (Financial Services segment) (22.1 ) - - -
Remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method (Music segment) - (6.0 ) - (6.0 )
Realized and remeasurement gains resulting from the transfer of a portion of shares of Sony Payment Services (Financial Services segment) - (19.8 ) - -
Total (27.8 ) (25.8 ) (5.7 ) (6.0 )

- 14 -

Cautionary Statement

Statements made in this release 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 Japanese equity 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.

- 15 -

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Sony Group Corporation published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 10:21:04 UTC.