Deadline hears David Ellison's Skydance is still very much in the mix and trying to create offer acceptable and attractive to Paramount. A Skydance combination is very much the favorite in Hollywood but hated by Paramount shareholders. Some sources are saying there could be some movement rather soon. Par is holding its annual meeting of shareholders next Tuesday morning. That's not a venue for big corporate announcements but some shareholders may ask about it. Par is in a bit of delicate moment having pushe ...

Wirestock/iStock Editorial via Getty Images Above: Sony Pictures, massive potential to expand IP blending its TV and film base with scale up matching close to Disney. If you look at the present candidates and would be contenders in the Paramount (PARA) free for all dead end, it is not hard to conclude that logic must bring you to a close for Sony (NYSE:SONY). As we have noted, the price might need a bit sweetening above the $26 on the table to put a smile button on everyone's chest, including Shari, and all ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: A logo of Sony is seen at the headquarters of Sony Corp. on May 10, 2022, in Tokyo. Japanese electronics and entertainment company Sony says it's focusing on creativity in movies, animation and video games, rather than old- fashioned gadgetry. Credit: AP Photo/Eugene Hoshiko, File Japanese electronics and entertainment company So ...

Sony has signed an NDA with Paramount Global, a move that will give it access to the books and allow deal talks to move ahead, Deadline hears. Sony and private equity giant Apollo kicked things off previously with a preliminary bid of $26 billion, but what's being contemplated now is not that, but something narrower. A look at the books is necessary to move forward in any case. The non-disclosure agreement comes two weeks after a Paramount's monthlong exclusive negotiating window with David Ellison's Skydan ...

Financial Data and Key Metrics Changes - For FY '23, consolidated sales reached JPY 13,020.8 billion, a record high, with operating income at JPY 1,208.8 billion and net income at JPY 970.6 billion [76] - The forecast for FY '24 includes sales of JPY 2,310 billion, operating income of JPY 1,275 billion, and net income of JPY 925 billion [73] - Operating cash flow is expected to increase by 19% year-on-year to JPY 1,400 billion [73] Business Line Data and Key Metrics Changes - The G&NS segment saw a 17% year-on-year sales increase to JPY 4,267.7 billion, with operating income rising to JPY 290.2 billion [78] - The Music segment's sales increased by 17% year-on-year to JPY 1,690 billion, with operating income at JPY 301.7 billion [85] - The Pictures segment's sales rose by 9% year-on-year to JPY 1,493.1 billion, while operating income remained flat at JPY 177 billion [89] - The I&SS segment's sales increased by 14% year-on-year to JPY 1,602.7 billion, but operating income decreased to JPY 103.5 billion [96] Market Data and Key Metrics Changes - Monthly active users on the PlayStation platform reached 180 million accounts, a 9% increase year-on-year, with total playtime increasing by 15% [81] - The smartphone market is expected to recover slowly, impacting the I&SS segment, but demand for larger die-sized sensors is anticipated to drive growth [52][97] Company Strategy and Development Direction - The fifth midrange plan focuses on maximizing synergies across the group and enhancing corporate value through continuous growth [111] - The strategy includes expanding the PlayStation console base and enhancing first-party software titles [115] - The company aims to grow faster than the market in the Music segment by increasing monetization opportunities and expanding into emerging markets [116] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain and volatile business environment but aims to strengthen the earnings base and improve investment efficiency [112] - The company expects to harvest the benefits of investments made in the previous midrange plan during the current period [25] Other Important Information - The company plans to maintain a total payout ratio of 40% by FY '26, with a focus on balanced capital allocation and strengthening returns to shareholders [55][57] - The impact of foreign exchange rates resulted in a positive JPY 140 billion effect on income for FY '23 [51] Q&A Session All Questions and Answers Question: What is the company's view on enhancing enterprise value and capital allocation? - The company plans to reduce investment and increase returns to shareholders compared to the previous midrange plan, focusing on sustainable enterprise value growth [22][24] Question: How does the company view the impact of the weaker yen on overseas M&A? - The company believes that while the weaker yen presents challenges, it does not significantly hinder overseas M&A opportunities as returns are evaluated against hurdle rates [34] Question: What is the expected timeline for returns on studio acquisitions? - The company expects returns from studio acquisitions to be realized over the next three to five years, with a focus on effective portfolio management [39][59] Question: What is the forecast for the image sensor business amid a shrinking smartphone market? - The company anticipates growth in the image sensor business due to increased demand for larger die-sized sensors, despite a slow recovery in the smartphone market [52][97]

Financial Performance - For the fiscal year ended March 31, 2024, Sony Group Corporation reported total sales and financial services revenue of ¥13,020,768 million, an increase of ¥2,046,395 million or 18.6% compared to the previous year[8]. - The net income attributable to Sony Group Corporation's stockholders for the fiscal year was ¥970,573 million, a decrease of ¥34,704 million or 3.5% from the prior year[8]. - Operating income for the fiscal year was reported at ¥1,208,831 million, a decline of ¥93,558 million or 7.8% from the previous year[8]. - Total sales and financial services revenue increased by 14.5% from ¥3,040,845 million in Q1 2023 to ¥3,480,966 million in Q1 2024, with a change of ¥440,121 million[10]. - Net income attributable to Sony Group Corporation's stockholders increased by 34.1% from ¥140,981 million in Q1 2023 to ¥189,005 million in Q1 2024, a change of ¥48,024 million[10]. - For the fiscal year 2024, net income attributable to Sony Group Corporation's stockholders was ¥1,005,277 million, up from ¥970,573 million in 2023, indicating a growth of approximately 3.6%[28]. - Operating income for the fiscal year 2024 was ¥1,035,271 million, compared to ¥983,321 million in 2023, reflecting an increase of about 5.3%[28]. Assets and Liabilities - Total assets as of March 31, 2024, reached ¥34,107,490 million, reflecting an increase of ¥2,953,395 million or 9.5% from the previous year[7]. - Sony's total liabilities rose to ¥26,351,385 million, an increase of ¥1,854,440 million or 7.6% compared to March 31, 2023[7]. - The company's retained earnings increased to ¥6,002,407 million, up by ¥909,965 million or 17.9% year-over-year[7]. - Sony's total equity increased to ¥7,756,105 million, up by ¥1,098,955 million or 16.5% year-over-year[7]. Cash Flow - Cash flows from operating activities improved dramatically, increasing from ¥314,691 million in FY 2023 to ¥1,373,213 million in FY 2024[13]. - Cash and cash equivalents at the end of FY 2024 were ¥1,907,113 million, up from ¥1,480,900 million at the end of FY 2023, reflecting a net increase of ¥426,213 million[14]. - The company reported a net cash used in investing activities of ¥818,886 million for the fiscal year 2024, compared to ¥1,052,664 million in 2023, indicating a decrease in cash outflow[30]. - The net cash provided by financing activities for the fiscal year 2024 was ¥84,300 million, a decrease from ¥261,969 million in 2023, indicating a reduction in financing inflows[30]. Segment Performance - Game & Network Services segment saw a revenue increase of ¥634,461 million, totaling ¥4,172,994 million in 2024, up from ¥3,538,533 million in 2023, a growth of about 17.9%[15]. - Financial Services segment revenue surged by ¥882,199 million, reaching ¥1,760,731 million in 2024, compared to ¥878,532 million in 2023, marking an increase of over 100%[15]. - Digital Software and Add-on Content within the Game & Network Services segment increased by ¥411,541 million, totaling ¥1,934,586 million in 2024, compared to ¥1,523,045 million in 2023, a growth of about 27%[24]. - Recorded Music - Streaming revenue in the Music segment increased by ¥110,585 million, reaching ¥709,453 million in 2024, compared to ¥598,868 million in 2023, an increase of approximately 18.5%[24]. - Sales in the Imaging & Sensing Solutions segment increased by 200.6 billion yen (14%) year-on-year to 1 trillion 602.7 billion yen, driven by higher sales of image sensors for mobile products[94]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies for the fiscal year ending March 31, 2025[4]. - For the fiscal year ending March 31, 2025, consolidated sales are forecasted to decrease by 5.5% to 12,310 billion yen[67]. - Operating income is expected to increase by 5.5% to 1,275 billion yen for the fiscal year ending March 31, 2025[67]. - Net cash provided by operating activities is expected to increase by 18.9% to 1,400 billion yen for the fiscal year ending March 31, 2025[67]. Shareholder Returns - The company declared dividends of ¥98,685 million in FY 2024, compared to ¥86,635 million in FY 2023, reflecting an increase of 13.5%[14]. - Sony's total dividend per share for the fiscal year ending March 31, 2024, is 85 Yen, an increase from 75 Yen in the previous year[114]. - Sony plans to repurchase up to 30 million shares at a maximum total purchase price of ¥250 billion, effective from May 15, 2024, to May 14, 2025[40]. - A stock split will occur on October 1, 2024, with each share split into five shares, increasing the total number of issued shares from approximately 4.99 billion to 6.24 billion[42][43].

Financial Data and Key Metrics Changes - Consolidated sales for Q3 FY 2023 reached ¥3,747.5 billion, a significant increase of 22% year-on-year, marking a record high for the quarter [5] - Consolidated operating income increased by ¥41.8 billion year-on-year to ¥463.3 billion, the second highest quarterly level [5] - Net income rose by ¥42.4 billion year-on-year to ¥363.9 billion, while adjusted EBITDA increased by ¥75.5 billion to ¥605 billion [5][6] - The nine-month cumulative consolidated operating cash flow, excluding the Financial Services segment, was ¥618.5 billion [6] Business Segment Data and Key Metrics Changes Game & Network Services (G&NS) - Q3 sales increased by 16% year-on-year to ¥1,444.4 billion, driven by higher third-party software sales and favorable foreign exchange rates [8] - Operating income decreased by ¥30.1 billion year-on-year to ¥86.1 billion due to lower profitability of PlayStation 5 hardware [10] - PS5 hardware unit sales reached 8.2 million units in the quarter, falling short of the annual target of 25 million units but achieving record quarterly sales [12] Music Segment - Q3 sales increased by 16% year-on-year to ¥422.1 billion, with operating income rising by ¥13.1 billion to ¥76.1 billion [20] - Streaming revenue grew by 12% for Recorded Music and 17% for Music Publishing [21] Pictures Segment - Q3 sales increased by 10% year-on-year to ¥366.3 billion, with operating income rising significantly by ¥16.2 billion to ¥41.6 billion [26] - The impact of Hollywood strikes is expected to peak next fiscal year, affecting profits [29] Entertainment, Technology & Services Segment - Q3 sales decreased by 2% year-on-year to ¥735.7 billion, with operating income down by ¥3.9 billion to ¥77.2 billion [32] Imaging & Sensing Solutions Segment - Q3 sales increased by 21% year-on-year to ¥505.2 billion, with operating income rising by ¥14.9 billion to ¥99.7 billion, both record highs for the segment [37] Financial Services Segment - Q3 revenue increased by ¥287.3 billion year-on-year to ¥311.7 billion, with operating income rising by ¥30.2 billion to ¥77.3 billion [44] Market Data and Key Metrics Changes - Monthly active users (MAU) for gaming reached a record high of 120 million accounts, with total gameplay time increasing by 13% year-on-year [13] - The cumulative sales of Marvel's Spider-Man 2 exceeded 10 million copies, contributing significantly to profits [14] Company Strategy and Development Direction - The company aims to optimize sales of PS5 hardware while balancing profitability, anticipating a gradual decline in unit sales from the next fiscal year [16] - Focus on producing high-quality first-party software and developing live service games, with no major franchise titles planned for next fiscal year [18] - The company plans to expand opportunities in the music business through strategic acquisitions and collaborations [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving stable revenue growth in the Music segment due to the expansion of the streaming market [22] - The company expects operating income for the next fiscal year to slightly increase in the G&NS segment, despite anticipated declines in first-party software profits [48] - The impact of Hollywood strikes on profits is expected to peak next fiscal year, but the company aims for operating income to exceed the current fiscal year [49] Other Important Information - The company is preparing for a spinoff and listing of shares for Sony Financial Group, Inc. in October 2025 [51] Q&A Session Summary Question: Strategic investment and CapEx for the current mid-range plan - The cumulative CapEx for FY '21 to FY '23 is expected to be about ¥1.9 trillion, with M&A and strategic investments at ¥1.8 trillion [56] Question: Spin-off purpose and relationship with business improvement - The spin-off aims to streamline capital allocation and allow both companies to grow independently [62] Question: Market trends for cameras in different regions - Sales in North America and Europe are performing relatively well, with no significant inventory issues reported [79] Question: Expectations for MAU growth and profitability - MAU growth is attributed to seasonality and successful free-to-play titles, with a profit shift of approximately ¥30 billion expected to the fourth quarter [94] Question: Future profitability and margin improvement strategies - The company aims to balance hardware pricing and profitability while focusing on strong first-party content to enhance margins [109]

Financial Performance - For the three months ended December 31, 2023, consolidated Adjusted OIBDA increased to ¥628.3 billion, up from ¥561.5 billion in the same period last year, representing a growth of 11.9%[6] - The nine months ended December 31, 2023, saw a consolidated Adjusted OIBDA of ¥1,450.3 billion, a decrease of 5.1% from ¥1,527.5 billion in the previous year[6] - The forecast for consolidated sales for the fiscal year ending March 31, 2024, has been revised to ¥12,300 billion, a decrease of ¥100 billion or 0.8% from the previous forecast[8] - Operating income for the fiscal year ending March 31, 2024, is expected to be ¥1,180 billion, an increase of ¥10 billion or 0.9% from the November forecast[8] - Net income attributable to Sony Group Corporation's stockholders is projected to be ¥920 billion, reflecting an increase of ¥40 billion or 4.5% from the previous forecast[8] - Adjusted EBITDA for the fiscal year is expected to be ¥1,770 billion, a decrease of ¥15 billion from the previous forecast[8] - Adjusted OIBDA for the three months ended December 31, 2023, was ¥628.3 billion, an increase of 11.9% from ¥561.5 billion in the same period of 2022[29] - Adjusted EBITDA for the three months ended December 31, 2023, reached ¥605.0 billion, up from ¥529.5 billion in 2022, reflecting a growth of 14.3%[31] - Net income attributable to Sony Group Corporation's stockholders for the three months ended December 31, 2023, was ¥363.9 billion, compared to ¥321.5 billion in 2022, an increase of 13.2%[31] - Net income attributable to Sony Group Corporation's stockholders for the fiscal year ended March 31, 2023, was ¥1,005.3 billion[42] - Adjusted EBITDA for the same fiscal year was ¥1,797.6 billion[42] Segment Performance - The Game & Network Services segment is expected to see sales of ¥4,150 billion, down from the November forecast of ¥4,360 billion, primarily due to lower hardware sales[14] - The Music segment's sales forecast has been increased to ¥1,570 billion, up from ¥1,560 billion, driven by favorable foreign exchange rates[14] - Financial services revenue is expected to rise to ¥1,300 billion, an increase from the November forecast of ¥1,210 billion, due to higher net gains on investments[14] - The Imaging & Sensing Solutions segment's sales are projected to remain unchanged from the November forecast, with expected sales of ¥1,590 billion[19] - The Game & Network Services segment reported an operating income of ¥86.1 billion for the three months ended December 31, 2023, down from ¥116.2 billion in 2022, a decline of 26%[29] - The Music segment's operating income increased to ¥76.1 billion in Q3 2023, compared to ¥63.0 billion in Q3 2022, representing a growth of 20.5%[29] - Imaging & Sensing Solutions segment's Adjusted OIBDA rose to ¥163.7 billion in Q3 2023, up 21.5% from ¥134.7 billion in Q3 2022[29] - The Financial Services segment's Adjusted OIBDA increased to ¥84.3 billion in Q3 2023, up from ¥53.8 billion in Q3 2022, a growth of 56.7%[29] - The Game & Network Services segment reported a total revenue of ¥1,444,427 million for the three months ended December 31, 2023, up by ¥197,878 million or 15.9% from ¥1,246,549 million in 2022[63] - The Imaging & Sensing Solutions segment achieved an operating income of ¥99,715 million for the three months ended December 31, 2023, an increase of ¥14,864 million or 17.5% compared to ¥84,851 million in 2022[65] - The Financial Services segment saw a substantial increase in customers' revenue, reaching ¥309,435 million for the three months ended December 31, 2023, up by ¥287,314 million or 129.9% from ¥22,121 million in 2022[63] Assets and Liabilities - Total current assets increased by ¥1,646.4 billion from March 31, 2023, to December 31, 2023, reaching ¥7,368.9 billion[52] - Total assets as of December 31, 2023, were ¥33,643.6 billion, an increase of ¥2,489.5 billion from March 31, 2023[54] - Total liabilities increased by ¥1,677.9 billion from March 31, 2023, to December 31, 2023, totaling ¥26,174.9 billion[54] - Sony's retained earnings rose by ¥682.9 billion from March 31, 2023, to December 31, 2023, reaching ¥5,775.4 billion[54] - Cash and cash equivalents decreased from ¥1,480.9 billion on March 31, 2023, to ¥2,019.1 billion on December 31, 2023, reflecting a change of ¥538.2 billion[52] - Total current liabilities rose from ¥5,290,837 million in March 2022 to ¥5,855,511 million in March 2023, an increase of about 10.7%[76] - Long-term debt increased from ¥470,498 million in March 2022 to ¥692,552 million in March 2023, a rise of about 47.0%[76] - Total liabilities increased from ¥19,053,619 million in March 2022 to ¥19,411,922 million in March 2023, reflecting a growth of about 1.9%[76] Cash Flow and Dividends - Net cash provided by operating activities for the nine months ended December 31, 2023, was ¥931,958 million, a significant increase from a net cash used of ¥81,623 million in the same period of 2022[61] - Cash flows from operating activities improved significantly, with net cash provided increasing from ¥(81,623) million in 2022 to ¥931,958 million in 2023[79] - The company declared dividends of ¥98,685 million for the nine months ended December 31, 2023, compared to ¥86,635 million in the same period of 2022, reflecting an increase of approximately 13.9%[62] - Dividends paid increased from ¥86,384 million in 2022 to ¥98,424 million in 2023, reflecting a commitment to returning value to shareholders[80] Future Outlook and Strategic Changes - Sony expects to record approximately 20 billion yen as operating income for the fiscal year ending March 31, 2024, following the transfer of shares of Sony Payment Services Inc.[87] - Sony has commenced preparations for a partial spin-off of Sony Financial Group Inc., which operates the Financial Services business, with plans for a share listing[88] - The Financial Services business will be presented separately as a discontinued operation prior to the execution of the spin-off, in accordance with IFRS 5[89] - The effect of the spin-off on Sony's results of operations and financial positions has not yet been determined[89] - Sony adopted IFRS 17 "Insurance Contracts" effective April 1, 2023, which will impact the recognition and measurement of insurance contracts going forward[81] Shareholder Information - Basic net income per share attributable to Sony Group Corporation's stockholders for the three months ended December 31, 2023, was ¥295.67, an increase of ¥35.39 or 13.5% from the previous year[55] - The weighted-average shares outstanding for diluted EPS computation for the three months ended December 31, 2023, was 1,234,358 thousand shares, a decrease from 1,238,413 thousand shares in the same period of 2022[84] - The weighted-average shares outstanding for basic EPS computation for the nine months ended December 31, 2023, was 1,232,879 thousand shares, a decrease from 1,236,176 thousand shares in the same period of 2022[84] - The effect of dilutive securities for the nine months ended December 31, 2023, included 3,922 thousand shares from stock options and other, compared to 3,632 thousand shares in the same period of 2022[84]

[Quarterly Financial Statements (Unaudited)](index=3&type=section&id=Quarterly%20Financial%20Statements%20(Unaudited)) This section presents Sony Group Corporation's unaudited condensed consolidated financial statements, including position, income, comprehensive income, equity changes, and cash flows [Condensed Consolidated Statements of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Sony's financial position as of September 30, 2023, shows increased total assets, liabilities, and equity attributable to stockholders Consolidated Financial Position (Yen in millions) | Metric | March 31, 2023 (Restated) | September 30, 2023 | Change from March 31, 2023 | | :--------------------------------- | :------------------ | :----------------- | :------------------------- | | Total assets | 31,154,095 | 32,968,793 | 1,814,698 | | Total liabilities | 24,496,945 | 25,768,173 | 1,271,228 | | Equity attributable to Sony Group Corporation's stockholders | 6,598,537 | 7,122,456 | 523,919 | | Total equity | 6,657,150 | 7,200,620 | 543,470 | | **Key Asset Changes:** | | | | | Inventories | 1,468,042 | 2,067,624 | 599,582 | | Trade and other receivables, and contract assets | 1,770,948 | 2,168,756 | 397,808 | | Goodwill | 1,275,112 | 1,443,365 | 168,253 | | Content assets | 1,561,882 | 1,748,713 | 186,831 | | **Key Liability Changes:** | | | | | Short-term borrowings | 1,914,934 | 2,480,578 | 565,644 | | Trade and other payables | 1,866,101 | 2,314,691 | 448,590 | | Deposits from customers in the banking business | 3,163,237 | 3,429,123 | 265,886 | | **Key Equity Changes:** | | | | | Retained earnings | 5,092,442 | 5,461,664 | 369,222 | | Accumulated other comprehensive income | (614,570) | (448,712) | 165,858 | [Condensed Consolidated Statements of Income (Three months ended September 30)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Three%20months%20ended%20September%2030)) Three-month income statements show increased sales but significant decreases in operating and net income attributable to stockholders Consolidated Statements of Income (Three months ended September 30, Yen in millions) | Metric | 2022 (Restated) | 2023 | Change | | :------------------------------------------ | :-------------- | :--- | :----- | | Total sales and financial services revenue | 2,625,464 | 2,828,623 | 203,159 | | Operating income | 369,403 | 263,009 | (106,394) | | Net income | 285,389 | 201,156 | (84,233) | | Net income attributable to Sony Group Corporation's stockholders | 281,681 | 200,105 | (81,576) | | Basic EPS | 227.76 | 162.21 | (65.55) | | Diluted EPS | 226.54 | 161.74 | (64.80) | [Condensed Consolidated Statements of Comprehensive Income (Three months ended September 30)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Three%20months%20ended%20September%2030)) Three-month comprehensive income declined substantially due to decreased net income and negative shifts in other comprehensive income Consolidated Statements of Comprehensive Income (Three months ended September 30, Yen in millions) | Metric | 2022 (Restated) | 2023 | Change | | :------------------------------------------ | :-------------- | :--- | :------- | | Net income | 285,389 | 201,156 | (84,233) | | Total other comprehensive income, net of tax | 42,852 | (57,930) | (100,782) | | Comprehensive income | 328,241 | 143,226 | (185,015) | | Comprehensive income attributable to Sony Group Corporation's stockholders | 323,299 | 141,176 | (182,123) | [Condensed Consolidated Statements of Income (Six months ended September 30)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Six%20months%20ended%20September%2030)) Six-month income statements show increased sales but significant reductions in operating and net income attributable to stockholders Consolidated Statements of Income (Six months ended September 30, Yen in millions) | Metric | 2022 (Restated) | 2023 | Change | | :------------------------------------------ | :-------------- | :--- | :------- | | Total sales and financial services revenue | 4,855,224 | 5,792,275 | 937,051 | | Operating income | 734,268 | 516,051 | (218,217) | | Net income | 546,593 | 419,098 | (127,495) | | Net income attributable to Sony Group Corporation's stockholders | 542,775 | 417,650 | (125,125) | | Basic EPS | 438.92 | 338.48 | (100.44) | | Diluted EPS | 436.17 | 337.39 | (98.78) | [Condensed Consolidated Statements of Comprehensive Income (Six months ended September 30)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Six%20months%20ended%20September%2030)) Six-month comprehensive income decreased significantly, driven by lower net income, despite a smaller negative impact from other comprehensive income Consolidated Statements of Comprehensive Income (Six months ended September 30, Yen in millions) | Metric | 2022 (Restated) | 2023 | Change | | :------------------------------------------ | :-------------- | :--- | :------- | | Net income | 546,593 | 419,098 | (127,495) | | Total other comprehensive income, net of tax | 224,743 | 169,587 | (55,156) | | Comprehensive income | 771,336 | 588,685 | (182,651) | | Comprehensive income attributable to Sony Group Corporation's stockholders | 762,845 | 584,604 | (178,241) | [Condensed Consolidated Statements of Changes in Stockholders' Equity (Six months ended September 30)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20(Six%20months%20ended%20September%2030)) Stockholders' equity increased by **¥523,919 million**, driven by retained earnings and other comprehensive income, partially offset by treasury stock Changes in Stockholders' Equity (Six months ended September 30, Yen in millions) | Metric | March 31, 2023 (Restated) | September 30, 2023 | Change | | :------------------------------------------ | :------------------ | :----------------- | :----- | | Equity attributable to Sony Group Corporation's stockholders | 6,598,537 | 7,122,456 | 523,919 | | Retained earnings | 5,092,442 | 5,461,664 | 369,222 | | Accumulated other comprehensive income | (614,570) | (448,712) | 165,858 | | Treasury stock, at cost | (223,507) | (251,281) | (27,774) | | Total equity | 6,657,150 | 7,200,620 | 543,470 | [Condensed Consolidated Statements of Cash Flows (Six months ended September 30)](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Six%20months%20ended%20September%2030)) Six-month cash flows show a significant turnaround to operating cash inflow, continued investing outflow, and substantial financing inflow Consolidated Statements of Cash Flows (Six months ended September 30, Yen in millions) | Metric | 2022 (Restated) | 2023 | Change | | :------------------------------------------ | :-------------- | :--- | :------- | | Net cash provided by (used in) operating activities | (383,256) | 115,031 | 498,287 | | Net cash used in investing activities | (639,672) | (335,068) | 304,604 | | Net cash provided by financing activities | 56,357 | 301,820 | 245,463 | | Net increase (decrease) in cash and cash equivalents | (839,884) | 145,614 | 985,498 | | Cash and cash equivalents at end of the period | 1,209,752 | 1,626,514 | 416,762 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment information, product sales, Financial Services statements, and critical accounting policy changes, including IFRS 17 adoption [Business Segment Information](index=13&type=section&id=Business%20Segment%20Information) This section provides detailed sales and operating income breakdowns across Sony's various business segments and product categories for both three and six-month periods Segment Sales and Financial Services Revenue (Three months ended September 30, Yen in millions) | Segment | 2022 (Restated) | 2023 | Change | | :-------------------------------- | :-------------- | :--- | :----- | | Game & Network Services | 720,735 | 954,096 | 233,361 | | Music | 359,319 | 408,716 | 49,397 | | Pictures | 337,468 | 399,636 | 62,168 | | Entertainment, Technology & Services | 677,045 | 613,540 | (63,505) | | Imaging & Sensing Solutions | 398,366 | 406,316 | 7,950 | | Financial Services | 178,063 | 103,915 | (74,148) | | All Other | 20,732 | 24,225 | 3,493 | Segment Operating Income (Loss) (Three months ended September 30, Yen in millions) | Segment | 2022 (Restated) | 2023 | Change | | :-------------------------------- | :-------------- | :--- | :------- | | Game & Network Services | 42,132 | 48,902 | 6,770 | | Music | 78,733 | 80,997 | 2,264 | | Pictures | 27,620 | 29,438 | 1,818 | | Entertainment, Technology & Services | 77,840 | 61,033 | (16,807) | | Imaging & Sensing Solutions | 73,987 | 46,361 | (27,626) | | Financial Services | 79,989 | 15,681 | (64,308) | | All Other | 4,848 | 2,069 | (2,779) | Segment Sales and Financial Services Revenue (Six months ended September 30, Yen in millions) | Segment | 2022 (Restated) | 2023 | Change | | :-------------------------------- | :-------------- | :--- | :----- | | Game & Network Services | 1,324,851 | 1,725,976 | 401,125 | | Music | 667,389 | 766,945 | 99,556 | | Pictures | 678,845 | 720,002 | 41,157 | | Entertainment, Technology & Services | 1,229,355 | 1,185,323 | (44,032) | | Imaging & Sensing Solutions | 636,208 | 699,056 | 62,848 | | Financial Services | 394,085 | 785,326 | 391,241 | | All Other | 40,066 | 43,718 | 3,652 | Segment Operating Income (Loss) (Six months ended September 30, Yen in millions) | Segment | 2022 (Restated) | 2023 | Change | | :-------------------------------- | :-------------- | :--- | :------- | | Game & Network Services | 94,894 | 98,062 | 3,168 | | Music | 139,706 | 154,377 | 14,671 | | Pictures | 78,275 | 45,409 | (32,866) | | Entertainment, Technology & Services | 131,408 | 116,679 | (14,729) | | Imaging & Sensing Solutions | 95,676 | 59,092 | (36,584) | | Financial Services | 219,197 | 70,195 | (149,002) | | All Other | 7,713 | 4,544 | (3,169) | Sales to Customers by Product Category (Three months ended September 30, Yen in millions) | Product Category | 2022 (Restated) | 2023 | Change | | :-------------------------------- | :-------------- | :--- | :----- | | G&NS - Digital Software and Add-on Content | 332,859 | 423,096 | 90,237 | | G&NS - Hardware and Others | 252,853 | 373,154 | 120,301 | | Music - Recorded Music - Streaming | 151,930 | 173,858 | 21,928 | | Pictures - Television Productions | 114,586 | 173,385 | 58,799 | | ET&S - Televisions | 226,751 | 161,002 | (65,749) | | ET&S - Mobile Communications | 93,227 | 72,774 | (20,453) | Sales to Customers by Product Category (Six months ended September 30, Yen in millions) | Product Category | 2022 (Restated) | 2023 | Change | | :-------------------------------- | :-------------- | :--- | :----- | | G&NS - Digital Software and Add-on Content | 618,704 | 788,442 | 169,738 | | G&NS - Hardware and Others | 448,946 | 638,312 | 189,366 | | Music - Recorded Music - Streaming | 291,041 | 338,745 | 47,704 | | Pictures - Television Productions | 253,747 | 277,616 | 23,869 | | ET&S - Televisions | 368,544 | 296,984 | (71,560) | | ET&S - Mobile Communications | 192,257 | 160,136 | (32,121) | [Condensed Financial Services Financial Statements](index=19&type=section&id=Condensed%20Financial%20Services%20Financial%20Statements) This section presents separate condensed financial statements for the Financial Services segment, offering a distinct view from other Sony segments - Separate financial statements are provided for the Financial Services segment and all other segments combined, as the Financial Services segment differs in nature from Sony's other segments, offering useful comparative presentation for investors[35](index=35&type=chunk) Condensed Statements of Financial Position (September 30, 2023, Yen in millions) | Metric | Financial Services | Sony without Financial Services | Consolidated | | :------------------------------------------ | :----------------- | :------------------------------ | :----------- | | Total assets | 19,935,965 | 13,669,697 | 32,968,793 | | Total liabilities | 18,931,170 | 6,885,230 | 25,768,173 | | Total equity | 1,004,795 | 6,784,467 | 7,200,620 | Condensed Statements of Income (Three months ended September 30, 2023, Yen in millions) | Metric | Financial Services | Sony without Financial Services | Consolidated | | :------------------------------------------ | :----------------- | :------------------------------ | :----------- | | Total sales and financial services revenue | 103,915 | 2,728,907 | 2,828,623 | | Operating income | 15,681 | 247,334 | 263,009 | | Net income | 10,832 | 190,328 | 201,156 | Condensed Statements of Income (Six months ended September 30, 2023, Yen in millions) | Metric | Financial Services | Sony without Financial Services | Consolidated | | :------------------------------------------ | :----------------- | :------------------------------ | :----------- | | Total sales and financial services revenue | 785,326 | 5,014,696 | 5,792,275 | | Operating income | 70,195 | 445,865 | 516,051 | | Net income | 49,441 | 419,700 | 419,098 | Condensed Statements of Cash Flows (Six months ended September 30, 2023, Yen in millions) | Metric | Financial Services | Sony without Financial Services | Consolidated | | :------------------------------------------ | :----------------- | :------------------------------ | :----------- | | Net cash provided by (used in) operating activities | 238,753 | (73,745) | 115,031 | | Net cash used in investing activities | (9,531) | (325,547) | (335,068) | | Net cash provided by (used in) financing activities | (55,504) | 307,357 | 301,820 | [Going Concern Assumption](index=26&type=section&id=Going%20Concern%20Assumption) This section clarifies that the going concern assumption is not applicable to the presented financial statements - The **going concern assumption is not applicable**[44](index=44&type=chunk) [Accounting Policy and Other Information](index=26&type=section&id=Accounting%20Policy%20and%20Other%20Information) This section details accounting policy changes, including the adoption of IFRS 17, and provides computations for earnings per share - Sony adopted **IFRS 17 \"Insurance Contracts\"** starting in the three months ended June 30, 2023, and retrospectively applied it, restating comparative periods and the condensed consolidated statement of financial position as of April 1, 2022[44](index=44&type=chunk)[45](index=45&type=chunk) EPS Computation (Three months ended September 30) | Metric | 2022 (Restated) | 2023 | | :------------------------------------------ | :-------------- | :--- | | Net income attributable to Sony Group Corporation's stockholders | 281,681 | 200,105 | | Weighted-average shares outstanding for basic EPS computation (Thousands) | 1,236,755 | 1,233,588 | | Weighted-average shares for diluted EPS computation (Thousands) | 1,243,505 | 1,237,223 | EPS Computation (Six months ended September 30) | Metric | 2022 (Restated) | 2023 | | :------------------------------------------ | :-------------- | :--- | | Net income attributable to Sony Group Corporation's stockholders | 542,775 | 417,650 | | Weighted-average shares outstanding for basic EPS computation (Thousands) | 1,236,622 | 1,233,915 | | Weighted-average shares for diluted EPS computation (Thousands) | 1,244,528 | 1,237,874 | [Results for Adjusted OIBDA and Adjusted EBITDA](index=29&type=section&id=Results%20for%20Adjusted%20OIBDA%20and%20Adjusted%20EBITDA%20for%20the%20Three%20and%20Six%20Months%20Ended%20September%2030,%202023) This section presents Sony's Adjusted OIBDA and Adjusted EBITDA results for the three and six months ended September 30, 2023, by segment and consolidated - Sony uses **three-year cumulative Adjusted EBITDA** as the most important financial performance indicator (Group KPI) in its Fourth Mid-Range Plan[51](index=51&type=chunk) Segment Adjusted OIBDA and Consolidated Adjusted OIBDA/EBITDA (Three months ended September 30, Yen in billions) | Metric | 2022 (Restated) | 2023 | | :------------------------------------------ | :-------------- | :--- | | Game & Network Services (G&NS) | 64.2 | 83.1 | | Music | 87.5 | 97.0 | | Pictures | 40.4 | 42.6 | | Entertainment, Technology & Services (ET&S) | 102.6 | 87.6 | | Imaging & Sensing Solutions (I&SS) | 122.2 | 107.1 | | Financial Services | 64.4 | 22.7 | | All Other, Corporate and elimination | (4.1) | (14.1) | | Consolidated Adjusted OIBDA | 477.1 | 425.9 | | Consolidated Adjusted EBITDA | 487.2 | 426.4 | Segment Adjusted OIBDA and Consolidated Adjusted OIBDA/EBITDA (Six months ended September 30, Yen in billions) | Metric | 2022 (Restated) | 2023 | | :------------------------------------------ | :-------------- | :--- | | Game & Network Services (G&NS) | 134.4 | 158.9 | | Music | 162.3 | 180.0 | | Pictures | 102.2 | 71.0 | | Entertainment, Technology & Services (ET&S) | 179.5 | 168.4 | | Imaging & Sensing Solutions (I&SS) | 189.5 | 177.2 | | Financial Services | 210.0 | 84.1 | | All Other, Corporate and elimination | (11.9) | (17.6) | | Consolidated Adjusted OIBDA | 966.0 | 822.0 | | Consolidated Adjusted EBITDA | 984.0 | 832.6 | [Outlook for Fiscal Year Ending March 31, 2024](index=30&type=section&id=Outlook%20for%20the%20Fiscal%20Year%20Ending%20March%2031,%202024) This section provides Sony's revised consolidated and segment-specific financial forecasts for the fiscal year ending March 31, 2024 Revised Consolidated Forecast for FY2024 (Yen in billions) | Metric | August Forecast | November Forecast | Change from August Forecast | % Change | | :------------------------------------------ | :-------------- | :---------------- | :-------------------------- | :------- | | Sales | 12,200 | 12,400 | +200 | +1.6% | | Operating income | 1,170 | 1,170 | - | - | | Income before income taxes | 1,140 | 1,160 | +20 | +1.8% | | Net income attributable to Sony Group Corporation's stockholders | 860 | 880 | +20 | +2.3% | | Adjusted OIBDA | 1,770 | 1,785 | +15 | +0.8% | | Adjusted EBITDA | 1,750 | 1,785 | +35 | +2.0% | - Sales are expected to be **higher than the August forecast**, mainly due to higher-than-expected sales in the Game & Network Services, Music, and Imaging & Sensing Solutions segments, partially offset by lower-than-expected sales in the Financial Services segment[57](index=57&type=chunk) - Operating income is expected to **remain unchanged** due to expected increases in operating income in the Music and Imaging & Sensing Solutions segments, substantially offset by expected decreases in operating income in the Financial Services and Pictures segments[58](index=58&type=chunk) - Both income before income taxes and net income attributable to Sony Group Corporation's stockholders are expected to be **higher than the August forecast** due to an expected increase in financial income, net, primarily resulting from a decrease in net foreign exchange losses[58](index=58&type=chunk) Revised Segment Forecasts for FY2024 (Yen in billions) | Segment | Sales (Nov Forecast) | Operating Income (Nov Forecast) | Adjusted OIBDA (Nov Forecast) | | :------------------------------------------ | :------------------- | :------------------------------ | :---------------------------- | | Game & Network Services (G&NS) | 4,360 | 270 | 385 | | Music | 1,560 | 295 | 350 | | Pictures | 1,460 | 115 | 165 | | Entertainment, Technology & Services (ET&S) | 2,440 | 180 | 280 | | Imaging & Sensing Solutions (I&SS) | 1,590 | 195 | 440 | | Financial Services (Financial services revenue) | 1,210 | 155 | 180 | - Game & Network Services (G&NS) sales are expected to be **higher than the August forecast** primarily due to foreign exchange rates and increased sales of non-first-party titles, while operating income remains unchanged due to changes in launch dates for some first-party titles[62](index=62&type=chunk) - Music sales, operating income, and Adjusted OIBDA are expected to be **higher than the August forecast** due to positive foreign exchange impacts, higher sales in mobile game applications (Visual Media & Platform), and increased streaming revenues in Music Publishing[63](index=63&type=chunk) - Pictures sales and operating income are expected to be **lower than the August forecast**, primarily due to the impact of Hollywood strikes leading to release date changes and delays in series deliveries, partially offset by foreign exchange rates[64](index=64&type=chunk) - Financial Services revenue, operating income, and Adjusted OIBDA are expected to be **lower than the August forecast** primarily due to a decrease in net gains on investments and a deterioration in net gains and losses related to market fluctuations for variable life insurance products at Sony Life[67](index=67&type=chunk) [Supplemental Information](index=33&type=section&id=Supplemental%20Information) This section provides additional details on segment financial performance and comprehensive reconciliations for Adjusted OIBDA and EBITDA [Notes about Financial Performance of Segments](index=33&type=section&id=Notes%20about%20Financial%20Performance%20of%20the%20Music,%20Pictures%20and%20Financial%20Services%20segments) This section clarifies the reporting basis for the Music, Pictures, and Financial Services segments, noting their specific consolidation and translation methods - Music segment results include yen-based Sony Music Entertainment (Japan) Inc. and yen-translated results of Sony Music Entertainment and Sony Music Publishing LLC, which aggregate worldwide subsidiaries on a U.S. dollar basis[70](index=70&type=chunk) - Pictures segment results are the yen-translated results of Sony Pictures Entertainment Inc., which aggregates worldwide subsidiaries on a U.S. dollar basis[71](index=71&type=chunk) - Financial Services segment results include Sony Financial Group Inc. and its consolidated subsidiaries, which differ from their separate Japanese statutory disclosures[72](index=72&type=chunk) [Regarding Adjusted OIBDA and Adjusted EBITDA](index=33&type=section&id=Regarding%20Adjusted%20OIBDA%20and%20Adjusted%20EBITDA) This section defines Adjusted OIBDA and Adjusted EBITDA, explains their rationale as key performance indicators, and provides detailed reconciliations [Definitions and Rationale](index=33&type=section&id=Definitions%20and%20Rationale) This section defines Adjusted OIBDA and Adjusted EBITDA, outlining their calculation methods and strategic importance as long-term performance indicators - Adjusted OIBDA and Adjusted EBITDA are considered suitable for long-term management as they represent **sustainable earnings power**, confirm business expansion, and are often used to calculate corporate value[73](index=73&type=chunk) - Adjusted OIBDA is calculated as: Operating income + Depreciation and amortization expense (excluding amortization for film costs, broadcasting rights, internally developed game content, and master recordings) - non-recurring profit/loss[74](index=74&type=chunk) - Adjusted EBITDA is calculated as: Net income attributable to Sony Group Corporation's stockholders + Net income attributable to noncontrolling interests + Income taxes + Net interest expenses - Net gain on revaluation of equity instruments + Depreciation and amortization expense (excluding amortization for film costs, broadcasting rights, internally developed game content, and master recordings) - non-recurring profit/loss[74](index=74&type=chunk) [Reconciliation for Three Months Ended September 30](index=34&type=section&id=Reconciliation%20for%20Three%20Months%20Ended%20September%2030) This section provides detailed reconciliations of Adjusted OIBDA from operating income and Adjusted EBITDA from net income for the three-month period Reconciliation of Adjusted OIBDA from Operating Income (Three months ended September 30, Yen in billions) | Segment | Operating Income (2023) | Depreciation & Amortization (2023) | Non-recurring P/L (2023) | Adjusted OIBDA (2023) | | :------------------------------------------ | :---------------------- | :--------------------------------- | :----------------------- | :-------------------- | | Game & Network Services (G&NS) | 48.9 | 34.2 | - | 83.1 | | Music | 81.0 | 16.0 | - | 97.0 | | Pictures | 29.4 | 13.1 | - | 42.6 | | Entertainment, Technology & Services (ET&S) | 61.0 | 26.5 | - | 87.6 | | Imaging & Sensing Solutions (I&SS) | 46.4 | 60.8 | - | 107.1 | | Financial Services | 15.7 | 7.0 | - | 22.7 | | All Other, Corporate and elimination | (19.4) | 5.3 | - | (14.1) | | Consolidated | 263.0 | 162.9 | - | 425.9 | Reconciliation of Adjusted EBITDA from Net Income (Three months ended September 30, Yen in billions) | Metric | 2022 (Restated) | 2023 | | :------------------------------------------ | :-------------- | :--- | | Net income attributable to Sony Group Corporation's stockholders | 281.7 | 200.1 | | Net income attributable to noncontrolling interests | 3.7 | 1.1 | | Income taxes | 85.7 | 56.4 | | Interest expenses, net | 1.4 | 2.1 | | (Gain) / loss on revaluation of equity instruments, net | 6.9 | 3.7 | | Depreciation and amortization expense* | 135.5 | 162.9 | | (Profit) / loss amount that Sony deems non-recurring** | (27.8) | - | | Adjusted EBITDA | 487.2 | 426.4 | Details of Non-recurring Profit/Loss (Three months ended September 30, Yen in billions) | Item | 2022 (Restated) | 2023 | | :------------------------------------------ | :-------------- | :--- | | Impact of litigation settlements (Music segment) | (5.7) | - | | Recovery of unauthorized withdrawal (Financial Services segment) | (22.1) | - | | Total | (27.8) | - | [Reconciliation for Six Months Ended September 30](index=36&type=section&id=Reconciliation%20for%20Six%20Months%20Ended%20September%2030) This section provides detailed reconciliations of Adjusted OIBDA from operating income and Adjusted EBITDA from net income for the six-month period Reconciliation of Adjusted OIBDA from Operating Income (Six months ended September 30, Yen in billions) | Segment | Operating Income (2023) | Depreciation & Amortization (2023) | Non-recurring P/L (2023) | Adjusted OIBDA (2023) | | :------------------------------------------ | :---------------------- | :--------------------------------- | :----------------------- | :-------------------- | | Game & Network Services (G&NS) | 98.1 | 60.9 | - | 158.9 | | Music | 154.4 | 31.6 | (6.0) | 180.0 | | Pictures | 45.4 | 25.6 | - | 71.0 | | Entertainment, Technology & Services (ET&S) | 116.7 | 51.8 | - | 168.4 | | Imaging & Sensing Solutions (I&SS) | 59.1 | 118.1 | - | 177.2 | | Financial Services | 70.2 | 13.9 | - | 84.1 | | All Other, Corporate and elimination | (27.8) | 10.2 | - | (17.6) | | Consolidated | 516.1 | 312.0 | (6.0) | 822.0 | Reconciliation of Adjusted EBITDA from Net Income (Six months ended September 30, Yen in billions) | Metric | 2022 (Restated) | 2023 | | :------------------------------------------ | :-------------- | :--- | | Net income attributable to Sony Group Corporation's stockholders | 542.8 | 417.7 | | Net income attributable to noncontrolling interests | 3.8 | 1.4 | | Income taxes | 173.8 | 114.5 | | Interest expenses, net | 2.2 | 2.6 | | (Gain) / loss on revaluation of equity instruments, net | 29.7 | (9.6) | | Depreciation and amortization expense* | 259.5 | 312.0 | | (Profit) / loss amount that Sony deems non-recurring** | (27.8) | (6.0) | | Adjusted EBITDA | 984.0 | 832.6 | Details of Non-recurring Profit/Loss (Six months ended September 30, Yen in billions) | Item | 2022 (Restated) | 2023 | | :------------------------------------------ | :-------------- | :--- | | Impact of litigation settlements (Music segment) | (5.7) | - | | Recovery of unauthorized withdrawal (Financial Services segment) | (22.1) | - | | Remeasurement gain from consolidation (Music segment) | - | (6.0) | | Total | (27.8) | (6.0) | [Reconciliation for Fiscal Year Ended March 31, 2023](index=38&type=section&id=Reconciliation%20for%20Fiscal%20Year%20Ended%20March%2031,%202023) This section provides detailed reconciliations of Adjusted OIBDA from operating income and Adjusted EBITDA from net income for the fiscal year Reconciliation of Adjusted OIBDA from Operating Income (Fiscal Year Ended March 31, 2023, Yen in billions) | Segment | Operating Income | Depreciation & Amortization | Non-recurring P/L | Adjusted OIBDA | | :------------------------------------------ | :--------------- | :-------------------------- | :---------------- | :------------- | | Game & Network Services (G&NS) | 250.0 | 87.0 | - | 337.0 | | Music | 263.1 | 59.0 | (5.7) | 316.4 | | Pictures | 119.3 | 48.9 | - | 168.2 | | Entertainment, Technology & Services (ET&S) | 179.5 | 97.4 | - | 276.9 | | Imaging & Sensing Solutions (I&SS) | 212.2 | 196.7 | - | 408.9 | | Financial Services | 318.1 | 26.3 | (22.1) | 322.4 | | All Other, Corporate and elimination | (39.8) | 26.8 | - | (12.9) | | Consolidated | 1,302.4 | 542.2 | (27.8) | 1,816.9 | Reconciliation of Adjusted EBITDA from Net Income (Fiscal Year Ended March 31, 2023, Yen in billions) | Metric | Amount | | :------------------------------------------ | :----- | | Net income attributable to Sony Group Corporation's stockholders | 1,005.3 | | Net income attributable to noncontrolling interests | 6.5 | | Income taxes | 262.7 | | Interest expenses, net | 4.0 | | (Gain) / loss on revaluation of equity instruments, net | 4.6 | | Depreciation and amortization expense* | 542.2 | | (Profit) / loss amount that Sony deems non-recurring** | (27.8) | | Adjusted EBITDA | 1,797.6 | Details of Non-recurring Profit/Loss (Fiscal Year Ended March 31, 2023, Yen in billions) | Item | Amount | | :------------------------------------------ | :----- | | Impact of litigation settlements (Music segment) | (5.7) | | Recovery of unauthorized withdrawal (Financial Services segment) | (22.1) | | Total | (27.8) | [Cautionary Statement](index=40&type=section&id=Cautionary%20Statement) This statement highlights that future performance projections are subject to significant risks and uncertainties that could cause actual results to differ - Statements regarding Sony's future performance are **forward-looking** and subject to important risks and uncertainties that could cause actual results to differ materially[93](index=93&type=chunk) - Key risks include maintaining product quality and customer satisfaction, ability to design and develop new products in competitive markets, effectiveness of strategies (including acquisitions), changes in laws/regulations, reliance on external business partners, global economic and political environment, foreign exchange rates, cybersecurity risks, and geopolitical conflicts[93](index=93&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)

Call Start: 03:00 January 1, 0000 4:13 AM ET Company Participants Conference Call Participants Unidentified Company Representative I would like to first introduce the speakers today, President, COO and CFO, Hiroki Totoki; and Senior Vice President in charge of the Corporate Planning Group DE&I promotion, also support Financial Service and Entertainment segment, Naomi Matsuoka; and then Senior Vice President in charge of Finance and IR, Sadahiko Hayakawa. So those 3 will present the Q1 FY 2023 consolidated f ...