Core Viewpoint - Sony Group's imaging and sensing solutions department (I&SS) anticipates a delay in achieving its 60% market share target for 2025 due to lower-than-expected sales from major clients and intensified competition in the high-end sector in China [1][4]. Group 1: Financial Performance - For the fiscal year 2024, I&SS expects sales to reach 1.799 trillion yen, a 12% increase year-on-year, and operating profit to hit 261.1 billion yen, a 35% increase, both setting historical records [1][4]. - The growth in sales is attributed to favorable exchange rates, improved product mix, and increased sales of mobile device sensors [5][6]. - The forecast for fiscal year 2025 includes a 9% increase in sales to 1.96 trillion yen and a 7% increase in operating profit to 280 billion yen, both projected to set new historical highs [6]. Group 2: Market Share and Strategy - Sony Semiconductor's president indicated that the market share for 2024 is expected to remain flat at 53%, with a projected increase to 56% in 2025 [1][4]. - The company aims to enhance its product offerings by balancing five functional axes: sensitivity/noise, dynamic range, resolution, readout speed, and power consumption [4]. - Despite the delay in market share goals, the company remains committed to its target of achieving 60% market share [4]. Group 3: Future Investments and Innovations - Sony plans to invest in new manufacturing processes to support the production of innovative sensors, with investments expected to be phased in starting from 2030 [6]. - The investment scale may approach that of the previous mid-term plan, which was approximately 930 billion yen for image sensors [6]. - The company is evaluating various strategies for investment execution, including fully in-house production and partnerships, while considering market expansion and necessary investments [6]. Group 4: Other Business Segments - Besides mobile device sensors, other segments such as cameras, industrial equipment, and infrastructure sensors continue to show stable profitability [7]. - The company is also assessing the growth potential of automotive sensors while aiming for long-term business growth with optimal development costs [7]. - Reports suggest that Sony is considering spinning off its semiconductor solutions subsidiary to pursue a public listing [7].

Fund Management - The company has established a fund management system in accordance with relevant laws and regulations, ensuring dedicated accounts for the storage and use of raised funds [1][2][3] - The board of directors has approved the opening of dedicated accounts at various banks specifically for the storage and use of raised funds, with strict oversight on expenditures [2][3] Fund Supervision - The company has signed a tripartite supervision agreement with several banks and its sponsor to ensure compliance with fund storage and usage regulations [3][4] - The company has implemented regular internal audits to monitor the storage and usage of raised funds, reporting findings to the audit committee [2][3] Fund Usage - As of December 31, 2024, the company has completed the use of raised funds for various projects, with specific amounts allocated for each project [5][6] - The company has replaced pre-invested funds amounting to approximately RMB 34.73 million with raised funds, with independent directors and the sponsor approving this action [6][10] Idle Funds Management - The company has not used raised funds to temporarily supplement working capital during the reporting period [7] - The company has approved the use of up to RMB 46 million of temporarily idle raised funds for cash management, with a 12-month validity period [7][8] Project Adjustments - The company has adjusted the investment amounts and timelines for certain projects, including extending the expected operational date for a production project to December 2024 [9][12] - The company has reallocated surplus funds from completed projects to new projects and for permanent working capital supplementation [9][12] Compliance and Reporting - The company has complied with all relevant laws and regulations regarding the use of raised funds, with no violations reported [14][16] - The external auditor has confirmed that the company's fund management and usage report fairly reflects the situation as of December 31, 2024 [15][16]