Financial Performance - For the three months ended June 30, 2023, total sales and financial services revenue increased by 32.9% to ¥2,963,652 million, compared to ¥2,229,760 million in the same period of 2022[11]. - Net income attributable to Sony Group Corporation's stockholders for the same period decreased by 16.7% to ¥217,545 million, down from ¥261,094 million in the prior year[11]. - Operating income for the three months ended June 30, 2023, was ¥253,042 million, a decrease of 30.7% from ¥364,865 million in the same period of 2022[11]. - The company reported a total comprehensive income of ¥445,459 million for the three months ended June 30, 2023, compared to ¥439,546 million for the same period in 2022, reflecting a slight increase of approximately 1.0%[16]. - The company declared dividends of ¥49,380 million for the three months ended June 30, 2023, compared to ¥43,295 million in the same period of 2022, representing an increase of approximately 14.5%[17]. - The net income for the three months ended June 30, 2023, was ¥217,942 million, compared to ¥261,204 million for the same period in 2022, indicating a decrease of about 16.5%[16]. - The company reported a significant increase in other financial services revenue, which rose to ¥536,359 million, up from ¥78,153 million, marking a growth of 586.5%[11]. Assets and Liabilities - The total assets as of June 30, 2023, reached ¥32,860,017 million, reflecting an increase of 5.5% from ¥31,154,095 million as of March 31, 2023[9]. - Current liabilities increased by 6.8% to ¥9,954,419 million as of June 30, 2023, compared to ¥9,318,409 million as of March 31, 2023[9]. - Sony's cash and cash equivalents increased by 3.5% to ¥1,532,099 million as of June 30, 2023, compared to ¥1,480,900 million as of March 31, 2023[8]. - The company’s equity attributable to Sony Group Corporation's stockholders increased by 6.1% to ¥7,002,988 million as of June 30, 2023, compared to ¥6,598,537 million as of March 31, 2023[9]. - Total current assets for Sony without Financial Services increased to ¥5,096,511 million as of June 30, 2023, up from ¥4,032,200 million as of April 1, 2022, representing a growth of approximately 26.4%[25]. - Long-term debt increased to ¥1,807,171, up from ¥1,767,696, indicating a growth of 2.2%[26]. - Total non-current liabilities amounted to ¥15,827,020, reflecting a growth of 4.3% year-over-year[26]. Segment Performance - Game & Network Services segment reported a revenue increase of ¥166,542 million, totaling ¥755,003 million in Q2 2023, up from ¥588,461 million in Q2 2022, a growth of 28.3%[22]. - Financial Services segment saw a significant revenue increase of ¥465,386 million, reaching ¥679,109 million in Q2 2023, compared to ¥213,723 million in Q2 2022, marking a growth of 218.5%[22]. - The Music segment's operating income increased by ¥12,407 million, totaling ¥73,380 million in Q2 2023, compared to ¥60,973 million in Q2 2022, reflecting a growth of 20.3%[20]. - The Pictures segment reported a decline in revenue of ¥21,069 million, totaling ¥320,178 million in Q2 2023, down from ¥341,247 million in Q2 2022, a decrease of 6.2%[22]. - The total operating income for the Financial Services segment decreased by ¥84,694 million, resulting in ¥54,514 million in Q2 2023, down from ¥139,208 million in Q2 2022, a decline of 60.8%[20]. Cash Flow and Investments - Cash flows from operating activities for the three months ended June 30, 2023, showed a net cash used of ¥12,669 million, a significant improvement from ¥430,018 million used in the same period of 2022[16]. - Payments for property, plant, and equipment and other intangible assets for the three months ended June 30, 2023, were ¥130,501 million, an increase from ¥106,968 million in the same period of 2022, reflecting a growth of approximately 22.0%[17]. - The net cash provided by financing activities for the three months ended June 30, 2023, was ¥213,867 million, a significant turnaround from the net cash used of ¥29,977 million in the same period of 2022[17]. - Cash and cash equivalents at the end of the period on June 30, 2023, were ¥1,532,099 million, up from ¥1,371,867 million at the end of the previous fiscal year, marking an increase of about 11.7%[17]. Future Outlook - The company anticipates continued growth in financial services revenue for the fiscal year ending March 31, 2024, driven by strong performance in insurance and other financial services[4]. - The forecast for consolidated sales for the fiscal year ending March 31, 2024, has been revised to ¥12,200 billion, an increase of ¥700 billion or 6.1% from the previous forecast[42]. - Financial Services revenue is forecasted to increase to ¥1,320 billion, primarily due to net gains on investments at Sony Life Insurance[48]. - The Pictures segment is expected to see lower sales due to strikes affecting theatrical releases, with sales forecasted at ¥1,470 billion[48]. - The company emphasizes that actual results may differ materially from forecasts due to various uncertainties[57].

Financial Performance - Sony's total consolidated sales to external customers increased from ¥9,921,513 million in fiscal year 2022 to ¥11,539,837 million in fiscal year 2023, representing a growth of approximately 16.3%[165]. - Sales in the United States rose significantly from ¥2,766,021 million in 2022 to ¥3,401,402 million in 2023, marking an increase of about 22.9%[165]. - Sales in Europe also saw growth, increasing from ¥1,870,091 million in 2022 to ¥2,190,311 million in 2023, which is an increase of approximately 17.1%[165]. - The Asia-Pacific region experienced a notable increase in sales from ¥1,149,261 million in 2022 to ¥1,563,414 million in 2023, reflecting a growth of around 36.0%[165]. - For the fiscal year ended March 31, 2023, Sony's sales increased by ¥1,618.3 billion year-on-year to ¥11,539.8 billion, driven by significant growth in the G&NS, I&SS, Music, and Pictures segments[248][249]. - Operating income for the fiscal year ended March 31, 2023, was ¥1,208.2 billion, a slight increase from ¥1,202.3 billion in the previous year[248]. - Net income attributable to Sony Group Corporation's stockholders rose to ¥937.1 billion for the fiscal year ended March 31, 2023, compared to ¥882.2 billion in the prior year[248]. - Cost of sales increased by ¥1,328.9 billion year-on-year to ¥7,174.7 billion, with the ratio of cost of sales to sales deteriorating from 69.6% to 71.1%[251]. - R&D costs rose to ¥735.7 billion, representing 7.3% of sales, a slight decrease from 7.4% in the previous fiscal year[252]. - Selling, general and administrative (SGA) expenses increased by ¥380.7 billion year-on-year to ¥1,969.2 billion, with the ratio of SGA expenses to sales worsening from 18.9% to 19.5%[252]. Capital Expenditures and Investments - In the fiscal year ended March 31, 2023, Sony's capital expenditures were 809.6 billion yen, an increase from 697.2 billion yen in the previous fiscal year[120]. - Sony invested approximately 381.1 billion yen in the Imaging & Sensing Solutions segment, including 355.9 billion yen to increase image sensor production capacity[121]. - Sony's stake in the joint venture Sony Honda Mobility is 50%, established in September 2022[117]. - In July 2022, Sony Interactive Entertainment acquired Bungie, an independent video game developer[117]. - Sony plans to enhance its business structure focusing on profitability and growth, aiming to create new business models and expand into new markets[281]. - The company intends to invest in virtual production and software solutions to enable new creative expressions and enhance its entertainment offerings[282]. Business Segments - Sony Interactive Entertainment LLC is responsible for the development and marketing of PlayStation hardware, software, and network services[124]. - Sony Music Entertainment (SME) focuses on the development, production, and distribution of recorded music globally, excluding Japan[126]. - Sony Pictures Entertainment (SPE) includes production and distribution of live-action and animated motion pictures, with various production organizations under its umbrella[129]. - Sony's Media Networks segment operates television networks and direct-to-consumer streaming services, including Crunchyroll and SonyLIV[132]. - The Entertainment, Technology & Services (ET&S) segment was renamed from Electronics Products & Solutions effective April 2022, without reclassification of businesses[122]. Financial Services - Sony's financial services include life and non-life insurance operations through its Japanese subsidiaries[123]. - Sony's financial services segment includes life insurance, non-life insurance, and banking operations, contributing to its diversified revenue streams[137][161][162]. - Sony Life employed 5,402 Lifeplanner® sales specialists as of March 31, 2023, indicating a strong sales force for its life insurance products[159]. - Sony Assurance's direct marketing model has enabled it to lower costs and offer competitively priced premiums, enhancing its market position in Japan[161]. - Sony Bank focuses on asset management and borrowing needs, providing a range of products including yen and foreign currency deposits, investment trusts, and mortgages[162]. - Sony's Financial Services segment maintains a high solvency margin ratio, exceeding Japanese domestic minimum requirements[180]. - Sony Bank has sustained a sufficient capital adequacy ratio in line with Japanese domestic criteria, ensuring financial stability[180]. - The company faces significant competition in Japan's retail financial services market, including traditional banks and online financial institutions[179]. - Sony's insurance businesses are subject to the Insurance Business Act, which mandates maintaining specified reserves and a minimum solvency margin ratio[183]. Sustainability Initiatives - The Sustainability Department promotes initiatives across Sony's business units, focusing on sustainability KPIs that are integrated into performance evaluations[198]. - For the fiscal year ended March 31, 2023, Sony's sustainability KPIs included reducing virgin oil-based plastic use and implementing renewable energy at manufacturing facilities[200]. - Sony identified "Climate Change," "DE&I," "Respect for Human Rights," and "Technology for Sustainability" as priority topics for sustainability initiatives[204]. - The company acknowledges the critical issue of climate change and aims to reduce its environmental impact while leveraging its diverse technologies[207]. - Sony aims to achieve net-zero emissions across all scopes by 2040, with a target to reduce Scope 1 and 2 GHG emissions to net-zero by 2030 and Scope 3 emissions by 45% compared to FY 2019 by 2035[213]. - By 2030, Sony plans to use 100% renewable electricity at its business sites, with a target of 35% renewable energy usage by 2025[213]. - Sony's net-zero target for 2040 was approved by the Science Based Targets initiative (SBTi) in August 2022, reflecting its commitment to climate action[209]. - The company is exploring investments in start-ups focused on carbon removal and developing indices that integrate biodiversity and carbon fixation[213]. Employee Diversity and Inclusion - The ratio of employees with prior experience at other companies in Japan was 52.5% for the fiscal year ended March 31, 2023, indicating a strong focus on diverse talent acquisition[228]. - As of March 31, 2023, the ratio of women to men in the workforce at Sony Group was 34.0%, with 30.0% in management positions, highlighting ongoing efforts to improve gender diversity[230]. - Sony has committed to creating inclusive work environments, signing the Valuable 500 initiative focused on the inclusion of people with disabilities[236]. - The company has implemented various programs to foster employee diversity and inclusivity, aligning with its sustainable growth strategy[237]. - Sony's diverse businesses are supported by approximately 110,000 employees worldwide, emphasizing the importance of employee diversity for creative innovation[220]. Research and Development - Sony's imaging and sensing solutions segment primarily develops CMOS image sensors, which are widely used in smartphones and other applications[136]. - The company has established a strong competitive position through innovative product introductions and a focus on high-quality user experiences across its product lines[173]. - Sony's R&D includes the development of environmentally conscious materials and technologies aimed at reducing power consumption in products[216]. - Sony's initiatives for improving accessibility include employing inclusive design and participating in events like the CSUN Assistive Technology Conference[217]. - The company has established the Sony Group AI Ethics Committee to strengthen its framework for AI ethics and ensure responsible AI development[218].

Unidentified Analyst Unidentified Analyst Thank you very much for the question. So this is about the games. For this fiscal year, the target for PS5 is 25 million units. The reason is because compared to the past PS generations, compared to them, in a single fiscal year, 25 million units, if we can achieve that, it will be the highest level ever. The reason why we believe that this is possible, PS4, customers exist now and the PS4 usage use them and they switch to PS5. And we looked at how much would be swi ...

And we are in the middle of delivering this products. And in regards to the game and entertainment service, we are not worried about the inventory level actually, and the inventory level when we think about the sales momentum and also the PS4, so now the seasonality, now that it's in a fourth year in the past with the Now, anybody who has a question, please raise your question. Next, participant online [inaudible] from Reuters, Takinaka from Reuters. Yes, it is 19 million units. It was 18 million, and we ra ...

SONY Q2 FY2022 Consolidated Financial Results (Three months ended September 30, 2022) November 1, 2022 Sony Group Corporation | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------|-------------|-------|-------------|---------------------------|-------| | Q2 FY2022 Consolidated Results | Q2 FY21 | | Q2 FY22 | Change | | | Sales* | 2,369.4 | | 2,751.9 | +382.5 bln yen （+16%） | | | Operating income | 318.5 | | 344.0 | +25. ...

Sony Group Corporation (NYSE:SONY) Q2 2022 Earnings Conference Call November 1, 2022 3:00 AM ET Company Participants Hiroki Totoki - Executive Deputy President and CFO Sadahiko Hayakawa - Senior Vice President, in-charge of Finance and IR Conference Call Participants Kentaro Tsutsumi - Nikkei Yamasaki - Kyodo News Agency Shimai Kenta - NHK Toyokasei - Sasaki Masahiro Ono - Morgan Stanley MUFG Junya Ayada - JPMorgan Securities Kenji Yasui - UBS Securities Ryosuke Katsura - SMBC Nikko Securities Operator WeÂ' ...

Sony Group Corporation (NYSE:SONY) Q1 2022 Earnings Conference Call July 29, 2022 3:00 AM ET Company Participants Hiroki Totoki - Executive Deputy President and Chief Financial Officer Naomi Matsuoka - SVP in charge of Corporate Planning and Control, Support for Finance Business and Entertainment Area Sadahiko Hayakawa - SVP in charge of Finance and IR Conference Call Participants Yuri Furukawa - Bloomberg Masahiro Ono - Morgan Stanley Junya Ayada - JP Morgan Yasuo Nakane - Mizuho Securities Ryosuke Katsura ...

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Sony Group Corporation (NYSE:SONY) Q4 2021 Earnings Conference Call May 10, 2022 3:00 AM ET Company Participants Hiroki Totoki – Executive Deputy President and Chief Financial Officer Kimio Maki – Senior Executive Vice President Officer of Electronics Products & Solutions Business, Representative Director, President and Chief Executive Officer, Sony Corporation Conference Call Participants Yasuo Nakane – Mizuho Securities Ryosuke Katsura – SMBC Nikko Securities Unidentified Company Representative WeÂ'd now ...

Sony Group Corporation (NYSE:SONY) Q3 2021 Earnings Conference Call February 2, 2022 1:30 AM ET Company Participants Sadahiko Hayakawa - Incharge of Financial Services and IR Hiroki Totoki - Executive Deputy President and Chief Financial Officer Naomi Matsuoka - Senior Vice President, Incharge of Corporate Planning and Control, Finance and IR Conference Call Participants Masahiro Ono - Morgan Stanley Ryosuke Katsura - SMBC Nikko Naomi Matsuoka Ladies and gentlemen, it is now time to start Sony Group Corpora ...