Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k)

Name	Symbol	Market	Type
Sony Corporation	NYSE:SNE	NYSE	Depository Receipt

	Price Change	% Change	Price	High Price	Low Price	Open Price	Traded	Last Trade
	0.00	0.00%	106.01				0	00:00:00

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 April 2023

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 __

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, Yes No X

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-______

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: April 28, 2023

List of materials

Documents attached hereto:

i) Press release: Financial Statements and Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 And Outlook for the Fiscal Year Ending March 31, 2024

Financial Statements and Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

And

Outlook for the Fiscal Year Ending March 31, 2024

April 28, 2023

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 Event	F-22

Consolidated Results for the Fiscal Year Ended March 31, 2023	1

Outlook for the Fiscal Year Ending March 31, 2024	4

Business Segment Information	6

Progress on the Fourth Mid-Range Plan	11

Basic Views on Selection of Accounting Standards	11

Supplemental Information	11

Cautionary Statement	14

All financial information is presented on the basis of International Financial Reporting Standards (“IFRS”).

Sony Group Corporation and its consolidated subsidiaries are together referred to as “Sony” or “Sony Group.”

(Unaudited)

Consolidated Financial Statements

Consolidated Statements of Financial Position

	Yen in millions
	March 31, 2022		March 31, 2023		Change from March 31, 2022
ASSETS
Current assets:
Cash and cash equivalents		2,049,636		1,480,900		(568,736	)
Investments and advances in the Financial Services segment		360,673		328,357		(32,316	)
Trade and other receivables, and contract assets		1,628,521		1,777,939		149,418
Inventories		874,007		1,468,042		594,035
Other financial assets		149,301		110,950		(38,351	)
Other current assets		473,070		610,330		137,260
Total current assets		5,535,208		5,776,518		241,310
Non-current assets:
Investments accounted for using the equity method		268,513		325,220		56,707
Investments and advances in the Financial Services segment		18,445,088		18,445,728		640
Property, plant and equipment		1,113,213		1,344,864		231,651
Right-of-use assets		413,430		478,063		64,633
Goodwill		952,895		1,275,112		322,217
Content assets		1,342,046		1,561,882		219,836
Other intangible assets		450,103		563,842		113,739
Deferred insurance acquisition costs		676,526		730,864		54,338
Deferred tax assets		298,589		384,839		86,250
Other financial assets		696,306		832,344		136,038
Other non-current assets		289,050		321,946		32,896
Total non-current assets		24,945,759		26,264,704		1,318,945
Total assets		30,480,967		32,041,222		1,560,255

(Continued on the following page.)

F-1

Consolidated Statements of Financial Position (Continued)

	Yen in millions
	March 31, 2022			March 31, 2023			Change from March 31, 2022
LIABILITIES
Current liabilities:
Short-term borrowings		1,976,553			1,914,934			(61,619	)
Current portion of long-term debt		171,409			187,942			16,533
Trade and other payables		1,843,242			1,865,993			22,751
Deposits from customers in the banking business		2,886,361			3,163,237			276,876
Income taxes payables		106,092			152,700			46,608
Participation and residual liabilities in the Pictures segment		190,162			230,223			40,061
Other financial liabilities		97,843			73,572			(24,271	)
Other current liabilities		1,488,488			1,720,335			231,847
Total current liabilities		8,760,150			9,308,936			548,786
Non-current liabilities:
Long-term debt		1,203,646			1,767,696			564,050
Defined benefit liabilities		254,548			236,121			(18,427	)
Deferred tax liabilities		696,492			356,324			(340,168	)
Future insurance policy benefits and other		7,039,034			7,264,421			225,387
Policyholders’ account in the life insurance business		4,791,295			5,148,579			357,284
Participation and residual liabilities in the Pictures segment		220,113			192,952			(27,161	)
Other financial liabilities		211,959			350,278			138,319
Other non-current liabilities		106,481			127,593			21,112
Total non-current liabilities		14,523,568			15,443,964			920,396
Total liabilities		23,283,718			24,752,900			1,469,182
EQUITY
Sony Group Corporation’s stockholders’ equity:
Common stock		880,365			880,365			–
Additional paid-in capital		1,461,053			1,463,807			2,754
Retained earnings		3,760,763			4,614,637			853,874
Accumulated other comprehensive income		1,222,332			494,407			(727,925	)
Treasury stock, at cost		(180,042	)		(223,507	)		(43,465	)
Equity attributable to Sony Group Corporation’s stockholders		7,144,471			7,229,709			85,238
Noncontrolling interests		52,778			58,613			5,835
Total equity		7,197,249			7,288,322			91,073
Total liabilities and equity		30,480,967			32,041,222			1,560,255

F-2

Consolidated Statements of Income

	Yen in millions
	Fiscal year ended March 31
	2022			2023			Change
Sales and financial services revenue:
Sales		8,396,702			10,095,841			1,699,139
Financial services revenue		1,524,811			1,443,996			(80,815	)
Total sales and financial services revenue		9,921,513			11,539,837			1,618,324
Costs and expenses:
Cost of sales		5,845,804			7,174,723			1,328,919
Selling, general and administrative		1,588,473			1,969,170			380,697
Financial services expenses		1,374,037			1,224,208			(149,829	)
Other operating (income) expense, net		(65,494	)		(12,021	)		53,473
Total costs and expenses		8,742,820			10,356,080			1,613,260
Share of profit (loss) of investments accounted for using the equity method		23,646			24,449			803
Operating income		1,202,339			1,208,206			5,867
Financial income		19,304			31,058			11,754
Financial expenses		104,140			58,951			(45,189	)
Income before income taxes		1,117,503			1,180,313			62,810
Income taxes		229,097			236,691			7,594
Net income		888,406			943,622			55,216

Net income attributable to
Sony Group Corporation’s stockholders		882,178			937,126			54,948
Noncontrolling interests		6,228			6,496			268

	Yen
	Fiscal year ended March 31
	2022		2023		Change
Per share data:
Net income attributable to Sony Group Corporation’s stockholders
– Basic		711.84		758.38		46.54
– Diluted		705.16		754.95		49.79

F-3

Consolidated Statements of Comprehensive Income

	Yen in millions
	Fiscal year ended March 31
	2022			2023			Change
Net income		888,406			943,622			55,216
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		(106,426	)		(36,862	)		69,564
Remeasurement of defined benefit pension plans		33,641			18,891			(14,750	)
Share of other comprehensive income of investments accounted for using the equity method		577			145			(432	)
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income		(416,904	)		(884,678	)		(467,774	)
Cash flow hedges		4,735			12,379			7,644
Insurance contract valuation adjustments		599			1,714			1,115
Exchange differences on translating foreign operations		226,275			178,275			(48,000	)
Share of other comprehensive income of investments accounted for using the equity method		1,501			3,554			2,053
Total other comprehensive income, net of tax		(256,002	)		(706,582	)		(450,580	)
Comprehensive income		632,404			237,040			(395,364	)

Comprehensive income attributable to
Sony Group Corporation’s stockholders		623,678			227,794			(395,884	)
Noncontrolling interests		8,726			9,246			520

F-4

Consolidated Statements of Income

	Yen in millions
	Three months ended March 31
	2022			2023		Change
Sales and financial services revenue:
Sales		1,986,559			2,572,578		586,019
Financial services revenue		277,427			490,972		213,545
Total sales and financial services revenue		2,263,986			3,063,550		799,564
Costs and expenses:
Cost of sales		1,444,635			1,932,866		488,231
Selling, general and administrative		449,754			550,759		101,005
Financial services expenses		229,197			457,091		227,894
Other operating (income) expense, net		5,353			257		(5,096	)
Total costs and expenses		2,128,939			2,940,973		812,034
Share of profit (loss) of investments accounted for using the equity method		3,582			5,887		2,305
Operating income		138,629			128,464		(10,165	)
Financial income		6,924			38,574		31,650
Financial expenses		55,928			22,436		(33,492	)
Income before income taxes		89,625			144,602		54,977
Income taxes		(23,346	)		15,463		38,809
Net income		112,971			129,139		16,168

Net income attributable to
Sony Group Corporation’s stockholders		111,082			128,158		17,076
Noncontrolling interests		1,889			981		(908	)

	Yen
	Three months ended March 31
	2022		2023		Change
Per share data:
Net income attributable to Sony Group Corporation’s stockholders
– Basic		89.71		103.83		14.12
– Diluted		88.98		103.53		14.55

F-5

Consolidated Statements of Comprehensive Income

	Yen in millions
	Three months ended March 31
	2022			2023			Change
Net income		112,971			129,139			16,168
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		(35,770	)		(27,342	)		8,428
Remeasurement of defined benefit pension plans		33,523			18,852			(14,671	)
Share of other comprehensive income of investments accounted for using the equity method		236			14			(222	)
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income		(482,677	)		459,055			941,732
Cash flow hedges		3,137			(5,340	)		(8,477	)
Insurance contract valuation adjustments		442			90			(352	)
Exchange differences on translating foreign operations		157,256			37,694			(119,562	)
Share of other comprehensive income of investments accounted for using the equity method		1,146			762			(384	)
Total other comprehensive income, net of tax		(322,707	)		483,785			806,492
Comprehensive income		(209,736	)		612,924			822,660

Comprehensive income attributable to
Sony Group Corporation’s stockholders		(213,092	)		611,132			824,224
Noncontrolling interests		3,356			1,792			(1,564	)

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, 2021		880,214		1,489,597			2,914,503			1,520,257			(124,228	)		6,680,343			43,996			6,724,339
Comprehensive income:
Net income							882,178									882,178			6,228			888,406
Other comprehensive income, net of tax										(258,500	)					(258,500	)		2,498			(256,002	)
Total comprehensive income							882,178			(258,500	)					623,678			8,726			632,404
Transfer to retained earnings							39,425			(39,425	)					–						–
Transactions with stockholders and other:
Issuance of new shares		151		151												302						302
Exercise of stock acquisition rights				547									12,785			13,332						13,332
Conversion of convertible bonds				(2,805	)		(958	)					18,278			14,515						14,515
Stock-based compensation				6,643												6,643						6,643
Dividends declared							(74,385	)								(74,385	)		(4,955	)		(79,340	)
Purchase of treasury stock													(88,624	)		(88,624	)					(88,624	)
Reissuance of treasury stock				1,544									1,747			3,291						3,291
Transactions with noncontrolling interests shareholders and other				(34,624	)											(34,624	)		5,011			(29,613	)
Balance at March 31, 2022		880,365		1,461,053			3,760,763			1,222,332			(180,042	)		7,144,471			52,778			7,197,249

	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
Comprehensive income:
Net income							937,126									937,126			6,496			943,622
Other comprehensive income, net of tax										(709,332	)					(709,332	)		2,750			(706,582	)
Total comprehensive income							937,126			(709,332	)					227,794			9,246			237,040
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	)
Balance at March 31, 2023		880,365		1,463,807			4,614,637			494,407			(223,507	)		7,229,709			58,613			7,288,322

F-7

Consolidated Statements of Cash Flows

	Yen in millions
	Fiscal year ended March 31
	2022			2023
Cash flows from operating activities:
Income before income taxes		1,117,503			1,180,313
Adjustments to reconcile income before income taxes to net cash provided by operating activities:
Depreciation and amortization, including amortization of contract costs		835,233			1,004,590
Amortization of deferred insurance acquisition costs		69,237			84,523
Other operating (income) expense, net		(65,494	)		(12,021	)
Loss on securities, net (other than Financial Services segment)		60,402			4,469
Share of profit of investments accounted for using the equity method, net of dividends		(13,934	)		(17,696	)
Change in future insurance policy benefits and other		458,880			234,102
Change in policyholders’ account in the life insurance business, less cash impact		238,309			15,523
Net cash impact of policyholders’ account in the life insurance business		227,262			346,455
Changes in assets and liabilities:
Increase in trade receivables and contract assets		(171,094	)		(70,448	)
Increase in inventories		(194,624	)		(560,382	)
Increase in investments and advances in the Financial Services segment		(1,724,164	)		(1,250,078	)
Increase in content assets		(502,253	)		(603,314	)
Increase in deferred insurance acquisition costs		(117,337	)		(118,096	)
Increase (decrease) in trade payables		126,989			(109,336	)
Increase in deposits from customers in the banking business		230,236			300,201
Increase in borrowings in the life insurance business and the banking business		905,139			111,314
Increase in taxes payable other than income taxes, net		17,840			4,183
(Increase) decrease in other financial assets and other current assets		(17,681	)		5,965
Increase in other financial liabilities and other current liabilities		66,407			122,878
Income taxes paid		(269,885	)		(297,881	)
Other		(43,328	)		(60,573	)
Net cash provided by operating activities		1,233,643			314,691

(Continued on the following page.)

F-8

Consolidated Statements of Cash Flows (Continued)

	Yen in millions
	Fiscal year ended March 31
	2022			2023
Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets		(441,096	)		(613,635	)
Proceeds from sales of property, plant and equipment and other intangible assets		11,409			11,595
Payments for investments and advances (other than Financial Services segment)		(91,082	)		(191,129	)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)		16,081			13,548
Payments for purchases of businesses		(277,618	)		(283,402	)
Proceeds from sales of businesses		64,609			1,221
Other		(11,083	)		9,138
Net cash used in investing activities		(728,780	)		(1,052,664	)
Cash flows from financing activities:
Increase in short-term borrowings, net		408			32,391
Proceeds from issuance of long-term debt		31,458			361,776
Payments of long-term debt		(194,562	)		(132,198	)
Dividends paid		(74,342	)		(86,568	)
Payments for purchases of treasury stock		(88,624	)		(99,248	)
Other		(10,916	)		8,147
Net cash provided by (used in) financing activities		(336,578	)		84,300
Effect of exchange rate changes on cash and cash equivalents		94,369			84,937
Net increase (decrease) in cash and cash equivalents		262,654			(568,736	)
Cash and cash equivalents at beginning of the fiscal year		1,786,982			2,049,636
Cash and cash equivalents at end of the fiscal year		2,049,636			1,480,900

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
	2022			2023			Change
Sales and financial services revenue:
Game & Network Services –
Customers		2,674,356			3,538,533			864,177
Intersegment		65,407			106,065			40,658
Total		2,739,763			3,644,598			904,835
Music –
Customers		1,100,532			1,364,815			264,283
Intersegment		16,417			15,817			(600	)
Total		1,116,949			1,380,632			263,683
Pictures –
Customers		1,236,399			1,364,887			128,488
Intersegment		2,512			4,535			2,023
Total		1,238,911			1,369,422			130,511
Entertainment, Technology & Services –
Customers		2,297,886			2,436,739			138,853
Intersegment		41,300			39,286			(2,014	)
Total		2,339,186			2,476,025			136,839
Imaging & Sensing Solutions –
Customers		992,200			1,301,481			309,281
Intersegment		84,224			100,706			16,482
Total		1,076,424			1,402,187			325,763
Financial Services –
Customers		1,524,811			1,443,996			(80,815	)
Intersegment		9,018			10,550			1,532
Total		1,533,829			1,454,546			(79,283	)
All Other –
Customers		82,264			72,338			(9,926	)
Intersegment		16,519			15,285			(1,234	)
Total		98,783			87,623			(11,160	)
Corporate and elimination		(222,332	)		(275,196	)		(52,864	)
Consolidated total		9,921,513			11,539,837			1,618,324

　　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
	2022			2023			Change
Operating income (loss):
Game & Network Services		346,089			250,006			(96,083	)
Music		210,933			263,107			52,174
Pictures		217,393			119,255			(98,138	)
Entertainment, Technology & Services		212,942			179,461			(33,481	)
Imaging & Sensing Solutions		155,597			212,214			56,617
Financial Services		150,111			223,935			73,824
All Other		17,981			16,849			(1,132	)
Total		1,311,046			1,264,827			(46,219	)
Corporate and elimination		(108,707	)		(56,621	)		52,086
Consolidated operating income		1,202,339			1,208,206			5,867

　　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.

　　The former Electronics Products & Solutions (“EP&S”) segment was renamed the ET&S segment effective from April 2022. This change did not result in any reclassification of businesses across segments.

F-11

Segment sales and financial services revenue

	Yen in millions
	Three months ended March 31
	2022			2023			Change
Sales and financial services revenue:
Game & Network Services –
Customers		646,928			1,035,737			388,809
Intersegment		18,322			37,461			19,139
Total		665,250			1,073,198			407,948
Music –
Customers		287,396			341,891			54,495
Intersegment		7,197			7,605			408
Total		294,593			349,496			54,903
Pictures –
Customers		311,153			357,135			45,982
Intersegment		1,082			1,905			823
Total		312,235			359,040			46,805
Entertainment, Technology & Services –
Customers		483,867			483,621			(246	)
Intersegment		10,186			10,226			40
Total		494,053			493,847			(206	)
Imaging & Sensing Solutions –
Customers		234,271			326,278			92,007
Intersegment		21,020			22,550			1,530
Total		255,291			348,828			93,537
Financial Services –
Customers		277,427			490,972			213,545
Intersegment		2,256			2,308			52
Total		279,683			493,280			213,597
All Other –
Customers		19,586			19,490			(96	)
Intersegment		5,322			3,007			(2,315	)
Total		24,908			22,497			(2,411	)
Corporate and elimination		(62,027	)		(76,636	)		(14,609	)
Consolidated total		2,263,986			3,063,550			799,564

　　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
	2022			2023			Change
Operating income (loss):
Game & Network Services		87,255			38,864			(48,391	)
Music		49,854			60,440			10,586
Pictures		11,038			15,535			4,497
Entertainment, Technology & Services		(11,556	)		(33,041	)		(21,485	)
Imaging & Sensing Solutions		10,743			31,687			20,944
Financial Services		47,837			33,738			(14,099	)
All Other		(2,969	)		74			3,043
Total		192,202			147,297			(44,905	)
Corporate and elimination		(53,573	)		(18,833	)		34,740
Consolidated operating income		138,629			128,464			(10,165	)

　　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.

　　The former EP&S segment was renamed the ET&S segment effective from April 2022. This change did not result in any reclassification of businesses across segments.

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:	2022		2023		Change
Game & Network Services
Digital Software and Add-on Content		1,424,459		1,523,045		98,586
Network Services		409,355		464,676		55,321
Hardware and Others		840,542		1,550,812		710,270
Total		2,674,356		3,538,533		864,177
Music
Recorded Music - Streaming		462,368		598,868		136,500
Recorded Music - Others		206,412		286,270		79,858
Music Publishing		200,334		276,665		76,331
Visual Media and Platform		231,418		203,012		(28,406	)
Total		1,100,532		1,364,815		264,283
Pictures
Motion Pictures		518,840		464,043		(54,797	)
Television Productions		419,494		536,250		116,756
Media Networks		298,065		364,594		66,529
Total		1,236,399		1,364,887		128,488
Entertainment, Technology & Services
Televisions		858,837		733,251		(125,586	)
Audio and Video		326,704		391,608		64,904
Still and Video Cameras		414,898		565,018		150,120
Mobile Communications		365,864		356,771		(9,093	)
Other		331,583		390,091		58,508
Total		2,297,886		2,436,739		138,853
Imaging & Sensing Solutions		992,200		1,301,481		309,281
Financial Services		1,524,811		1,443,996		(80,815	)
All Other		82,264		72,338		(9,926	)
Corporate		13,065		17,048		3,983
Consolidated total		9,921,513		11,539,837		1,618,324

F-14

	Yen in millions
	Three months ended March 31
Sales and financial services revenue:	2022		2023		Change
Game & Network Services
Digital Software and Add-on Content		356,881		396,239		39,358
Network Services		104,423		118,946		14,523
Hardware and Others		185,624		520,552		334,928
Total		646,928		1,035,737		388,809
Music
Recorded Music - Streaming		120,457		148,680		28,223
Recorded Music - Others		56,347		73,883		17,536
Music Publishing		53,990		65,958		11,968
Visual Media and Platform		56,602		53,370		(3,232	)
Total		287,396		341,891		54,495
Pictures
Motion Pictures		150,361		104,040		(46,321	)
Television Productions		85,609		158,995		73,386
Media Networks		75,183		94,100		18,917
Total		311,153		357,135		45,982
Entertainment, Technology & Services
Televisions		161,107		114,515		(46,592	)
Audio and Video		73,018		78,056		5,038
Still and Video Cameras		75,665		106,307		30,642
Mobile Communications		83,010		71,212		(11,798	)
Other		91,067		113,531		22,464
Total		483,867		483,621		(246	)
Imaging & Sensing Solutions		234,271		326,278		92,007
Financial Services		277,427		490,972		213,545
All Other		19,586		19,490		(96	)
Corporate		3,358		8,426		5,068
Consolidated total		2,263,986		3,063,550		799,564

　　In the G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on content through the network by Sony Interactive Entertainment; 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
	March 31, 2022		March 31, 2023		March 31, 2022		March 31, 2023		March 31, 2022		March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	¥	889,140	¥	756,493	¥	1,160,496	¥	724,407	¥	2,049,636	¥	1,480,900
Investments and advances in the Financial Services segment		360,673		328,357		–		–		360,673		328,357
Trade and other receivables, and contract assets		169,929		134,404		1,478,620		1,668,257		1,628,521		1,777,939
Inventories		–		–		874,007		1,468,042		874,007		1,468,042
Other financial assets		81,174		47,044		68,124		63,906		149,301		110,950
Other current assets		72,441		63,025		450,953		562,442		473,070		610,330
Total current assets		1,573,357		1,329,323		4,032,200		4,487,054		5,535,208		5,776,518
Non-current assets:
Investments accounted for using the equity method		–		–		268,513		325,220		268,513		325,220
Investments and advances in the Financial Services segment		18,445,088		18,445,728		–		–		18,445,088		18,445,728
Investments in Financial Services, at cost		–		–		550,483		550,483		–		-
Property, plant and equipment		18,010		15,316		1,095,241		1,329,219		1,113,213		1,344,864
Right-of-use assets		73,774		84,023		339,658		395,210		413,430		478,063
Goodwill and intangible assets, including content assets		72,578		78,197		2,672,466		3,322,639		2,745,044		3,400,836
Deferred insurance acquisition costs		676,526		730,864		–		–		676,526		730,864
Deferred tax assets		–		–		332,330		431,533		298,589		384,839
Other financial assets		37,037		46,941		663,233		789,470		696,306		832,344
Other non-current assets		77,657		75,143		284,834		319,306		289,050		321,946
Total non-current assets		19,400,670		19,476,212		6,206,758		7,463,080		24,945,759		26,264,704
Total assets	¥	20,974,027	¥	20,805,535	¥	10,238,958	¥	11,950,134	¥	30,480,967	¥	32,041,222

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	1,964,776	¥	1,891,856	¥	183,187	¥	211,020	¥	2,147,962	¥	2,102,876
Trade and other payables		118,921		77,595		1,744,011		1,812,670		1,843,242		1,865,993
Deposits from customers in the banking business		2,886,361		3,163,237		–		–		2,886,361		3,163,237
Income taxes payables		4,444		13,370		101,648		139,330		106,092		152,700
Participation and residual liabilities in the Pictures segment		–		–		190,162		230,223		190,162		230,223
Other financial liabilities		68,793		43,128		29,050		30,444		97,843		73,572
Other current liabilities		242,937		222,039		1,296,205		1,513,882		1,488,488		1,720,335
Total current liabilities		5,286,232		5,411,225		3,544,263		3,937,569		8,760,150		9,308,936
Non-current liabilities:
Long-term debt		470,498		663,353		733,148		1,104,344		1,203,646		1,767,696
Defined benefit liabilities		37,167		37,183		217,381		198,938		254,548		236,121
Deferred tax liabilities		634,576		304,838		110,715		112,938		696,492		356,324
Future insurance policy benefits and other		7,039,034		7,264,421		–		-		7,039,034		7,264,421
Policyholders’ account in the life insurance business		4,791,295		5,148,579		–		-		4,791,295		5,148,579
Participation and residual liabilities in the Pictures segment		-		-		220,113		192,952		220,113		192,952
Other financial liabilities		128,208		153,724		86,391		199,327		211,959		350,278
Other non-current liabilities		5,864		7,225		121,558		142,096		106,481		127,593
Total non-current liabilities		13,106,642		13,579,323		1,489,306		1,950,595		14,523,568		15,443,964
Total liabilities		18,392,874		18,990,548		5,033,569		5,888,164		23,283,718		24,752,900
Equity:
Stockholders’ equity of Financial Services		2,577,705		1,811,167		–		–		–		–
Stockholders’ equity of Sony without Financial Services		–		–		5,156,059		6,007,177		–		–
Sony Group Corporation’s stockholders’ equity		–		–		–		–		7,144,471		7,229,709
Noncontrolling interests		3,448		3,820		49,330		54,793		52,778		58,613
Total equity		2,581,153		1,814,987		5,205,389		6,061,970		7,197,249		7,288,322
Total liabilities and equity	¥	20,974,027	¥	20,805,535	¥	10,238,958	¥	11,950,134	¥	30,480,967	¥	32,041,222

F-16

Condensed Statements of Income

	Yen in millions
	Fiscal year ended March 31
	Financial Services					Sony without Financial Services						Consolidated
	2022		2023			2022			2023			2022			2023

Sales	¥	–	¥	–		¥	8,402,217		¥	10,101,979		¥	8,396,702		¥	10,095,841
Financial services revenue		1,533,829		1,454,546			–			-			1,524,811			1,443,996
Total sales and financial services revenue		1,533,829		1,454,546			8,402,217			10,101,979			9,921,513			11,539,837

Cost of sales		–		–			5,856,925			7,186,767			5,845,804			7,174,723
Selling, general and administrative		–		–			1,582,850			1,961,906			1,588,473			1,969,170
Financial services expenses		1,383,054		1,234,758			–			–			1,374,037			1,224,208
Other operating (income) expense, net		664		(4,147	)		(66,158	)		(5,566	)		(65,494	)		(12,021	)
Total costs and expenses		1,383,718		1,230,611			7,373,617			9,143,107			8,742,820			10,356,080

Share of profit (loss) of investments accounted for using the equity method		–		–			23,646			24,449			23,646			24,449

Operating income		150,111		223,935			1,052,246			983,321			1,202,339			1,208,206

Financial income (expenses), net		–		–			(45,698	)		13,437			(84,836	)		(27,893	)

Income before income taxes		150,111		223,935			1,006,548			996,758			1,117,503			1,180,313

Income taxes		45,402		63,865			183,689			172,528			229,097			236,691

Net income		104,709		160,070			822,859			824,230			888,406			943,622

Net income of Financial Services	¥	104,216	¥	159,698		¥	–		¥	–		¥	–		¥	–

Net income of Sony without Financial Services	¥	–	¥	–		¥	817,123		¥	818,106		¥	–		¥	–

Net income attributable to Sony Group Corporation’s stockholders	¥	–	¥	–		¥	–		¥	–		¥	882,178		¥	937,126

Net income attributable to noncontrolling interests	¥	493	¥	372		¥	5,736		¥	6,124		¥	6,228		¥	6,496

F-17

	Yen in millions
	Three months ended March 31
	Financial Services				Sony without Financial Services					Consolidated
	2022		2023		2022			2023		2022			2023

Sales	¥	–	¥	–	¥	1,988,282		¥	2,574,348	¥	1,986,559		¥	2,572,578
Financial services revenue		279,683		493,280		–			–		277,427			490,972
Total sales and financial services revenue		279,683		493,280		1,988,282			2,574,348		2,263,986			3,063,550

Cost of sales		–		–		1,447,793			1,935,980		1,444,635			1,932,866
Selling, general and administrative		–		–		448,303			549,399		449,754			550,759
Financial services expenses		231,451		459,399		–			–		229,197			457,091
Other operating (income) expense, net		395		143		4,958			115		5,353			257
Total costs and expenses		231,846		459,542		1,901,054			2,485,494		2,128,939			2,940,973

Share of profit (loss) of investments accounted for using the equity method		–		–		3,582			5,887		3,582			5,887

Operating income		47,837		33,738		90,810			94,741		138,629			128,464

Financial income (expenses), net		–		–		(49,022	)		16,136		(49,004	)		16,138

Income before income taxes		47,837		33,738		41,788			110,877		89,625			144,602

Income taxes		19,400		11,222		(42,748	)		4,241		(23,346	)		15,463

Net income		28,437		22,516		84,536			106,636		112,971			129,139

Net income of Financial Services	¥	28,335	¥	22,378	¥	–		¥	–	¥	–		¥	–

Net income of Sony without Financial Services	¥	–	¥	–	¥	82,748		¥	105,793	¥	–		¥	–

Net income attributable to Sony Group Corporation’s stockholders	¥	–	¥	–	¥	–		¥	–	¥	111,082		¥	128,158

Net income attributable to noncontrolling interests	¥	102	¥	138	¥	1,788		¥	843	¥	1,889		¥	981

F-18

Condensed Statements of Cash Flows

	Yen in millions
	Fiscal year ended March 31
	Financial Services						Sony without Financial Services						Consolidated
	2022			2023			2022			2023			2022			2023
Cash flows from operating activities:
Income (loss) before income taxes	¥	150,111		¥	223,935		¥	1,006,548		¥	996,758		¥	1,117,503		¥	1,180,313
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		24,932			26,333			810,301			978,257			835,233			1,004,590
Amortization of deferred insurance acquisition costs		69,237			84,523			–			–			69,237			84,523
Other operating (income) expense, net		664			(4,147	)		(66,158	)		(5,566	)		(65,494	)		(12,021	)
(Gain) loss on securities, net (other than Financial Services segment)		–			–			60,402			4,469			60,402			4,469
Change in future insurance policy benefits and other		458,880			234,102			–			–			458,880			234,102
Change in policyholders’ account in the life insurance business, less cash impact		238,309			15,523			–			–			238,309			15,523
Net cash impact of policyholders’ account in the life insurance business		227,262			346,455			–			–			227,262			346,455
Changes in assets and liabilities:
(Increase) decrease in trade receivables and contract assets		(53,819	)		35,524			(121,684	)		(110,668	)		(171,094	)		(70,448	)
(Increase) decrease in inventories		-			-			(194,624	)		(560,382	)		(194,624	)		(560,382	)
(Increase) decrease in investments and advances in the Financial Services segment		(1,724,164	)		(1,250,078	)		–			–			(1,724,164	)		(1,250,078	)
(Increase) decrease in content assets		–			–			(502,253	)		(603,314	)		(502,253	)		(603,314	)
(Increase) decrease in deferred insurance acquisition costs		(117,337	)		(118,096	)		–			–			(117,337	)		(118,096	)
Increase (decrease) in trade payables		37,885			(40,071	)		93,660			(64,765	)		126,989			(109,336	)
Increase (decrease) in deposits from customers in the banking business		230,236			300,201			–			–			230,236			300,201
Increase (decrease) in borrowings in the life insurance business and the banking business		905,139			111,314			–			–			905,139			111,314
Increase (decrease) in taxes payable other than income taxes, net		(5	)		112			17,845			4,071			17,840			4,183
Other		12,380			(21,912	)		(290,769	)		(223,387	)		(278,421	)		(247,307	)
Net cash provided by (used in) operating activities		459,710			(56,282	)		813,268			415,473			1,233,643			314,691

Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets		(20,562	)		(24,195	)		(420,542	)		(590,320	)		(441,096	)		(613,635	)
Payments for investments and advances (other than Financial Services segment)		–			–			(91,082	)		(191,129	)		(91,082	)		(191,129	)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)		–			–			16,081			13,548			16,081			13,548
Other		2,914			393			(215,597	)		(264,125	)		(212,683	)		(261,448	)
Net cash provided by (used in) investing activities		(17,648	)		(23,802	)		(711,140	)		(1,032,026	)		(728,780	)		(1,052,664	)

Cash flows from financing activities:
Increase (decrease) in borrowings, net		(10,975	)		(11,226	)		(151,721	)		273,195			(162,696	)		261,969
Dividends paid		(39,159	)		(41,335	)		(74,342	)		(86,568	)		(74,342	)		(86,568	)
Other		(6	)		(2	)		(99,702	)		(91,100	)		(99,540	)		(91,101	)
Net cash provided by (used in) financing activities		(50,140	)		(52,563	)		(325,765	)		95,527			(336,578	)		84,300

Effect of exchange rate changes on cash and cash equivalents		–			–			94,369			84,937			94,369			84,937

Net increase (decrease) in cash and cash equivalents		391,922			(132,647	)		(129,268	)		(436,089	)		262,654			(568,736	)
Cash and cash equivalents at beginning of the fiscal year		497,218			889,140			1,289,764			1,160,496			1,786,982			2,049,636
Cash and cash equivalents at end of the fiscal year	¥	889,140		¥	756,493		¥	1,160,496		¥	724,407		¥	2,049,636		¥	1,480,900

F-19

Going Concern Assumption

　　Not Applicable

Accounting Policy and Other Information

(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
	2022		2023
Net income attributable to Sony Group Corporation’s stockholders		882,178		937,126
Adjustment amount to net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation:
Zero coupon convertible bonds		163		51
Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation		882,341		937,177

	Thousands of shares
	Fiscal year ended March 31
		2022		2023
Weighted-average shares outstanding for basic EPS computation		1,239,299		1,235,701
Effect of dilutive securities:
Stock acquisition rights and other		5,470		3,646
Zero coupon convertible bonds		6,491		2,030
Weighted-average shares for diluted EPS computation		1,251,260		1,241,377

	Yen in millions
	Three months ended March 31
	2022		2023
Net income attributable to Sony Group Corporation’s stockholders		111,082		128,158
Adjustment amount to net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation:
Zero coupon convertible bonds		34		-
Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation		111,116		128,158

	Thousands of shares
	Three months ended March 31
		2022		2023
Weighted-average shares outstanding for basic EPS computation		1,238,277		1,234,274
Effect of dilutive securities:
Stock acquisition rights and other		5,100		3,621
Zero coupon convertible bonds		5,431		-
Weighted-average shares for diluted EPS computation		1,248,808		1,237,895

(Segmentation)

　　The former EP&S segment was renamed the ET&S segment effective from April 2022. This change did not result in any reclassification of businesses across segments.

F-20

　　The G&NS segment includes the network services businesses, the manufacture and sales of home gaming products and the production and sales of software. 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 the Japanese market 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.

(Acquisition of Bungie, Inc.)

　　On July 15, 2022, Sony Interactive Entertainment LLC (“SIE”), a wholly-owned subsidiary of Sony, completed the acquisition of 100% of the shares of Bungie, Inc. (“Bungie”), an independent videogame developer in the United States. As a result of this acquisition, Bungie has become a wholly-owned subsidiary of Sony. This acquisition gives SIE access to Bungie’s approach to live game services and technology expertise.

　　The total consideration of this acquisition, which was determined after customary working capital and other adjustments, was 510,459 million yen (3,701 million U.S. dollars), inclusive of the purchase price and committed employee incentives. Of the total consideration, 347,768 million yen (2,522 million U.S. dollars) was allocated to the purchase consideration of this acquisition, and the remaining 162,691 million yen (1,179 million U.S. dollars) was mainly allocated to deferred payments to employee shareholders that are conditional upon their continuous employment, and other retention incentives. The deferred payments and other retention incentives will be expensed over the required post-acquisition service periods.

　　The fair value of the purchase consideration of this acquisition as of the acquisition date was 333,859 million yen (2,421 million U.S. dollars) which consisted of upfront cash consideration of 207,511 million yen (1,505 million U.S. dollars), deferred consideration of 84,410 million yen (612 million U.S. dollars), and contingent consideration of 41,938 million yen (304 million U.S. dollars) that is subject to employee shareholders’ continuous employment and represents the vested portion of the total vesting term of replacement awards that existed as of the acquisition date. Deferred consideration and contingent consideration are included in other financial liabilities (current and non-current) in the consolidated statements of financial position.

　　Sony’s consolidated statements of income for the fiscal year ended March 31, 2023 include net loss after income taxes of 47,420 million yen (338 million U.S. dollars), attributable to Bungie since the acquisition date, including the deferred payments and other retention incentives arising out of this acquisition and amortization of intangible assets recognized as of the acquisition date. Revenue after elimination of intercompany transactions attributable to Bungie since the acquisition date for the fiscal year ended March 31, 2023 has not been presented because the revenue was not material.

　　Sony consolidated Bungie by using the acquisition method of accounting and recorded the fair value of the identifiable assets acquired, liabilities assumed and residual goodwill of Bungie. The following table summarizes the final fair values assigned to the assets and liabilities of Bungie that were recorded in the G&NS segment. The measurement period adjustments were not material.

	Yen in millions
Cash and cash equivalents		37,800
Trade and other receivables, and contract assets		5,093
Other current assets		3,412
Property, plant and equipment		7,481
Right-of-use assets		15,540
Goodwill		193,801
Content assets		45,512
Other intangible assets		66,257
Deferred tax assets		7,297
Other		3,564
Total assets		385,757
Trade and other payables		3,060
Other current liabilities		12,195
Long-term debt		30,944
Other		5,699
Total liabilities		51,898

F-21

　　Content assets and other intangible assets mainly consist of license agreements and software. Goodwill mainly represents future growth from new revenue streams and synergies with existing Sony businesses and is not deductible for tax purposes. Goodwill recorded in connection with the acquisition is included in the G&NS segment.

　　Pro forma results of operations have not been presented because the effect of the acquisition is not material.

(Change in presentation)

Consolidated Statements of Cash Flows

　　Certain reclassifications of the consolidated statements of cash flows for the fiscal year ended March 31, 2022 have been made to conform to the presentation for the fiscal year ended March 31, 2023.

Subsequent Event

　　Not Applicable

F-22

Consolidated Results for the Fiscal Year Ended March 31, 2023

	(Billions of yen, except per share amounts) Fiscal Year ended March 31
	2022		2023		Change
Sales ^*1	¥	9,921.5	¥	11,539.8	¥	+1,618.3
Operating income		1,202.3		1,208.2		+5.9
Income before income taxes		1,117.5		1,180.3		+62.8
Net income attributable to Sony Group Corporation’s stockholders		882.2		937.1		+54.9
Net income attributable to Sony Group Corporation’s stockholders per share of common stock:
- Basic	¥	711.84	¥	758.38	¥	46.54
- Diluted		705.16		754.95		49.79

	(Billions of yen, except per share amounts) Fiscal Year ended March 31
For all segments excluding the Financial Services segment ^*2	2022			2023			Change
Net cash provided by operating activities	¥	813.3		¥	415.5			-397.8
Net cash used in investing activities		(711.1	)		(1,032.0	)		-320.9
Total		102.1			(616.6	)		-718.7

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

^*2 Cash flow for all segments excluding the Financial Services segment is not a measure in accordance with IFRS. However, Sony believes that this disclosure may be useful information to investors. Please refer to page F-16 for details about the preparation of the Condensed Statements of Cash Flows.

The average foreign exchange rates during the fiscal years ended March 31, 2022 and 2023 are presented below.

	Fiscal Year ended March 31
	2022		2023		Change
1 U.S. dollar	¥	112.3	¥	135.4	23.1 yen depreciation
1 Euro		130.5		140.9	10.4 yen depreciation

Sales increased 1 trillion 618.3 billion yen (16%) compared to the previous fiscal year (“year-on-year”) to 11 trillion 539.8 billion yen. This significant increase was mainly due to significant increases in sales in the Game & Network Services (“G&NS”), Imaging & Sensing Solutions (“I&SS”), Music and Pictures segments as well as an increase in sales in the Entertainment, Technology & Services (“ET&S”) segment*. On a constant currency basis, sales increased approximately 4% 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 was 1 trillion 208.2 billion yen, essentially flat year-on-year. This result was due to significant increases in operating income in the Financial Services, I&SS and Music segments as well as a significant decrease in the operating loss in Corporate and elimination, substantially offset by significant decreases in operating income in the Pictures and G&NS segments and a decrease in operating income in the ET&S segment.

Operating income for the current 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)

- 1 -

Operating income for the previous fiscal year included the following:

・Gain from the transfer of certain operations of Game Show Network, LLC: 70.0 billion yen (Pictures segment)

・Loss recorded due to an unauthorized withdrawal of funds at a subsidiary of Sony Life: 16.8 billion yen (Financial Services segment)

・The share of profit of the investment in M3, Inc. (“M3”) related to a gain on a change in M3’s equity interest in an affiliated company, resulting from the issuance of new shares in connection with the affiliated company’s public listing: 5.1 billion yen (All Other)

・Settlement gain in connection with the termination of the defined benefit pension plan at certain U.S. subsidiaries: 5.5 billion yen (mainly in Corporate and elimination)

The share of profit (loss) of investments accounted for using the equity method, recorded within operating income, was income of 24.4 billion yen, essentially flat year-on-year. This result was mainly due to increases in the share of profit of investments in the Music and Pictures segments, substantially offset by a decrease in the share of profit of the investment in M3.

The net effect of financial income and expenses was an expense of 27.9 billion yen, an improvement of 56.9 billion yen year-on-year. This significant improvement was primarily due to a decrease in unrealized losses, mainly on Sony’s shares of Spotify Technology S.A.

Income before income taxes increased 62.8 billion yen year-on-year to 1 trillion 180.3 billion yen.

During the current fiscal year, Sony recorded 236.7 billion yen of income tax expenses. The effective tax rate of 20.1% in the current fiscal year was lower than the effective tax rate of 20.5% in the previous fiscal year. The effective tax rate in the current fiscal year reflects the impact of an increase in the tax credits in Japan, and the benefit from a decrease in the deferred tax liabilities related to Japan controlled foreign company taxation. The effective tax rate in the previous fiscal year reflected the impact of the reversal of a previous write-down of certain deferred tax assets at certain companies in Japan.

Net income attributable to Sony Group Corporation’s stockholders, which deducts net income attributable to noncontrolling interests, increased 54.9 billion yen year-on-year to 937.1 billion yen.

*The former Electronics Products & Solutions segment was renamed the Entertainment, Technology & Services (ET&S) segment effective from April 2022. This change did not result in any reclassification of businesses across segments.

- 2 -

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 314.7 billion yen from operating activities, a decrease of 919.0 billion yen year-on-year.

For all segments excluding the Financial Services segment, there was a net cash inflow of 415.5 billion yen, a decrease of 397.8 billion yen year-on-year. This decrease was primarily due to a larger year-on-year increase in inventories and content assets as well as a smaller increase in trade payables, partially offset by 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).

The Financial Services segment had a net cash outflow of 56.3 billion yen, compared to a net cash inflow of 459.7 billion yen in the previous fiscal year. This change was mainly due to a smaller year-on-year increase in borrowings in the life insurance business and the banking business.

Investing Activities: During the current fiscal year, Sony used 1 trillion 52.7 billion yen of net cash in investing activities, an increase of 323.9 billion yen year-on-year.

For all segments excluding the Financial Services segment, there was a net cash outflow of 1 trillion 32.0 billion yen, an increase of 320.9 billion yen year-on-year. This increase was mainly due to a year-on-year increase in payments for fixed asset purchases, the acquisition of shares of Bungie, Inc., an additional investment in Epic Games, Inc. (“Epic Games”) and a payment related to the acquisition of Industrial Media. Additionally, the previous fiscal year included the purchase of the equity interest in Ellation Holdings, Inc., which operates the anime business Crunchyroll, the purchase of shares and related assets of certain subsidiaries of Kobalt Music Group Limited including AWAL, Kobalt’s music distribution business mainly for independent recording artists, and an additional investment in Epic Games.

The Financial Services segment used 23.8 billion yen of net cash in investing activities, essentially flat year-on-year.

Financing Activities: Net cash inflow from financing activities during the current fiscal year was 84.3 billion yen, compared to a net cash outflow of 336.6 billion yen in the previous fiscal year.

For all segments excluding the Financial Services segment, there was a 95.5 billion yen net cash inflow, compared to a net cash outflow of 325.8 billion yen in the previous fiscal year. The cash inflow in the current fiscal year was primarily due to the procurement of long-term bank loans and the issuance of straight bonds.

In the Financial Services segment, there was a 52.6 billion yen net cash outflow, essentially flat year-on-year.

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, 2023 was 1 trillion 480.9 billion yen. Cash and cash equivalents of all segments excluding the Financial Services segment was 724.4 billion yen as of March 31, 2023, a decrease of 436.1 billion yen compared with the balance as of March 31, 2022. Within the Financial Services segment, the outstanding balance of cash and cash equivalents was 756.5 billion yen as of March 31, 2023, a decrease of 132.6 billion yen compared with the balance as of March 31, 2022.

- 3 -

Outlook for the Fiscal Year Ending March 31, 2024

Sony has established a three-year cumulative Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) as the most important financial performance indicator (Group KPI) in the Fourth Mid-Range Plan for the three fiscal years starting on April 1, 2021 and ending on March 31, 2024. From the fiscal year ending March 31, 2024, Sony has decided to disclose the actual results and forecast for Adjusted EBITDA on a consolidated basis, which is the Group KPI, and Adjusted OIBDA (Operating Income Before Depreciation and Amortization) by segment. For the purpose of comparative analysis of the forecasts for these measures for the fiscal year ending March 31, 2024, the results for these measures for the fiscal year ended March 31, 2023 are also presented in this earnings release.

The forecast for consolidated results for the fiscal year ending March 31, 2024 is as follows:

	(Billions of yen)
	March 31, 2023 Results		March 31, 2024 April Forecast			Change from March 31, 2023 Results
Sales	¥	11,539.8	¥	11,500	¥	- 39.8 bil	- 0.3	%
Operating income		1,208.2		1,170		- 38.2 bil	- 3.2
Income before income taxes		1,180.3		1,140		- 40.3 bil	- 3.4
Net income attributable to Sony Group Corporation’s stockholders		937.1		840		- 97.1 bil	- 10.4

Adjusted OIBDA^*1

1,722.7

1,770

+ 47.3 bil

+ 2.7

Adjusted EBITDA^*1

1,703.4

1,750

+ 46.6 bil

+ 2.7

For all segments excluding the Financial Services segment ^*2

March 31, 2023

Results

March 31, 2024

April Forecast

Change from

March 31, 2023 Results

Net cash provided by operating activities

415.5

1,250

+ 834.5 bil

+ 200.8

^*1 Adjusted OIBDA and Adjusted EBITDA 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 11 to 13 for more details, including the formulas and reconciliations for Adjusted OIBDA and Adjusted EBITDA.

Assumed foreign currency exchange rates for the fiscal year ending March 31, 2024 are below.

	(For your reference) Average foreign currency exchange rates for the fiscal year ended March 31, 2023	Assumed foreign currency exchange rates for the fiscal year ending March 31, 2024
1 U.S. dollar	135.4 yen	approximately 130 yen
1 Euro	140.9 yen	approximately 138 yen

Sales are expected to be essentially flat year-on-year primarily due to an expected significant decrease in sales in the Financial Services segment and an expected decrease in the ET&S segment, substantially offset by an expected increase in sales in the G&NS segment and significant increases in sales in the I&SS and Pictures segments.

Operating income is expected to decrease year-on-year primarily due to expected decreases in operating income in the Financial Services and I&SS segments, partially offset by an expected increase in operating income in the G&NS segment.

Income before income taxes is expected to decrease year-on-year due to the impact of the above-mentioned decrease in operating income.

- 4 -

Net income attributable to Sony Group Corporation’s stockholders is expected to decrease year-on-year, mainly due to the absence of a reduction in income tax expense resulting from a decrease in deferred tax liabilities related to Japan controlled foreign company taxation in the fiscal year ended March 31, 2023 and an increase in income taxes due to a tax rate change in the United Kingdom from the fiscal year ending March 31, 2024.

Adjusted OIBDA is expected to increase year-on-year primarily due to expected increases in Adjusted OIBDA in the I&SS and G&NS segments, partially offset by an expected decrease in Adjusted OIBDA in the Financial Services segment. Adjusted EBITDA is expected to increase year-on-year due to the impact of the increase in Adjusted OIBDA.

Because Sony will adopt IFRS 17 “Insurance Contracts” (“IFRS 17”) starting in the first quarter of the fiscal year ending March 31, 2024, the forecast for the fiscal year ending March 31, 2024 is based on IFRS 17. Although IFRS 17 requires the results for the comparative period, the fiscal year ended March 31, 2023, to be reclassified based on IFRS 17, the results for the fiscal year ended March 31, 2023 contained in this earnings release are based on IFRS 4 “Insurance Contracts.” Sony will reclassify the results for the comparative period based on IFRS 17 starting with the earnings release for the first quarter of the fiscal year ending March 31, 2024.

- 5 -

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 11 to 13 for details of the reconciliation of Adjusted OIBDA from operating income in accordance with IFRS for the fiscal year ended March 31, 2023.

	(Billions of yen)
	March 31, 2022 Results			March 31, 2023 Results			March 31, 2024 April Forecast
Game & Network Services (G&NS)
Sales		2,739.8			3,644.6			3,900
Operating income		346.1			250.0			270
Adjusted OIBDA		–			337.0			365
Music
Sales		1,116.9			1,380.6			1,410
Operating income		210.9			263.1			265
Adjusted OIBDA		–			316.4			325
Pictures
Sales		1,238.9			1,369.4			1,520
Operating income		217.4			119.3			120
Adjusted OIBDA		–			168.2			165
Entertainment, Technology & Services (ET&S)
Sales		2,339.2			2,476.0			2,380
Operating income		212.9			179.5			180
Adjusted OIBDA		–			276.9			280
Imaging & Sensing Solutions (I&SS)
Sales		1,076.4			1,402.2			1,600
Operating income		155.6			212.2			200
Adjusted OIBDA		–			408.9			445
Financial Services
Financial services revenue		1,533.8			1,454.5			870
Operating income		150.1			223.9			180
Adjusted OIBDA		–			228.2			205
All Other, Corporate and elimination
Operating loss		(90.7	)		(39.8	)		(45	)
Adjusted OIBDA		–			(12.9	)		(15	)
Consolidated
Sales		9,921.5			11,539.8			11,500
Operating income		1,202.3			1,208.2			1,170
Adjusted OIBDA		–			1,722.7			1,770
Adjusted EBITDA^*		1,597.9			1,703.4			1,750

^* 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.

- 6 -

Game & Network Services (G&NS)

Results for the fiscal year ended March 31, 2023

Sales increased 904.8 billion yen (33%) year-on-year to 3 trillion 644.6 billion yen (an 18% increase on a constant currency basis). This significant increase in sales was mainly due to the impact of foreign exchange rates, an increase in sales of hardware and an increase in sales of first-party titles, partially offset primarily by a decrease in sales of non-first-party titles including add-on content.

Operating income decreased 96.1 billion yen year-on-year to 250.0 billion yen. This significant decrease was primarily due to an increase in costs, mainly for game software development and expenses associated with acquisitions completed in the current fiscal year including Bungie, Inc.*, in addition to the impact of the above-mentioned decrease in sales of non-first-party titles. This decrease in operating income was partially offset by the impact of the above-mentioned increase in sales of first-party titles as well as a decrease in losses from hardware. During the current fiscal year, there was a 32.4 billion yen negative impact from foreign exchange rate fluctuations.

* 52.7 billion yen was recorded as expenses associated with acquisitions completed in the current fiscal year. For details regarding the acquisition of Bungie, Inc., please refer to pages F-21 and F-22.

Forecast for the fiscal year ending March 31, 2024

Sales are expected to increase year-on-year mainly due to an expected increase in sales of hardware and peripheral devices, partially offset primarily by the impact of foreign exchange rates. Operating income and Adjusted OIBDA are expected to increase year-on-year mainly due to an expected improvement in hardware profitability and the positive impact of foreign exchange rates reflecting the high ratio of U.S. dollar-denominated costs, in addition to the impact of the above-mentioned expected increase in sales of peripheral devices. These increases are expected to be partially offset primarily by an expected increase in costs* and the impact of an expected decrease in sales of first-party titles.

* This increase in costs is expected to be partially offset by a decrease in expenses resulting from an expected increase in the capitalized amount of game software development costs from the fiscal year ending March 31, 2024 onward.

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, 2023

Sales increased 263.7 billion yen (24%) to 1 trillion 380.6 billion yen (an 8% increase on a constant currency basis). This significant increase in sales was primarily due to the impact of foreign exchange rates as well as increases in sales for Recorded Music and Music Publishing, partially offset by lower sales for Visual Media and Platform due to a decrease in sales in the anime business. The increases in sales for Recorded Music and Music Publishing were primarily due to higher revenues from paid subscription streaming services, which also benefited from the success of a number of new releases in Recorded Music. Operating income significantly increased 52.2 billion yen year-on-year to 263.1 billion yen, primarily due to the positive impact of foreign exchange rates and the impact of the above-mentioned increase in sales for Recorded Music and Music Publishing, as well as the impact of litigation settlements, net of expenses, of 5.7 billion yen received in relation to lawsuits for Recorded Music and Music Publishing, partially offset by the impact of the above-mentioned decrease in sales for Visual Media and Platform..

Forecast for the fiscal year ending March 31, 2024

Sales are expected to increase year-on-year mainly due to higher sales for Recorded Music and Music Publishing primarily resulting from an expected increase in revenues from streaming services, partially offset by the impact of foreign exchange rates. Operating income is expected to be essentially flat year-on-year due to the impact of the above-mentioned increase in sales, substantially offset by an increase in selling, general and administrative expenses as well as the negative impact of foreign exchange rates and the absence of litigation settlements, net of expenses, of 5.7 billion yen received in relation to lawsuits for Recorded Music and Music Publishing, which were recorded in the fiscal year ended March 31, 2023. Adjusted OIBDA is expected to increase year-on-year primarily due to the same factors affecting operating income, excluding the impact of the above-mentioned litigation settlements.

- 7 -

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, 2023

Sales increased 130.5 billion yen, an 11% increase year-on-year (an 8% decrease on a U.S. dollar basis), to 1 trillion 369.4 billion yen. This decrease on a U.S. dollar basis was primarily due to lower theatrical revenues in Motion Pictures compared to the prior fiscal year which benefited from the strong performance of several franchise films including Spider-Man: No Way Home and Venom: Let There Be Carnage, lower licensing revenues in Television Productions as the prior fiscal year benefitted from the licensing of Seinfeld, and lower licensing revenues in Motion Pictures as the prior fiscal year benefitted from a greater number of new films licensed to digital streaming services. These decreases in sales were partially offset primarily by an increase in series deliveries and the impact of acquisitions of Industrial Media and Bad Wolf in Television Productions, as well as higher revenues from anime streaming services including the impact of the acquisition of Crunchyroll.

Operating income decreased 98.1 billion yen, a 45% decrease year-on-year (a 54% decrease on a U.S. dollar basis), to 119.3 billion yen. This significant decrease in operating income on a U.S. dollar basis was primarily due to the absence of the 70.0 billion yen gain recognized from the transfer of GSN Games, a division of Game Show Network, LLC, in the prior fiscal year and the impact of the above-mentioned decrease in sales.

Forecast for the fiscal year ending March 31, 2024

Sales are expected to significantly increase year-on-year, primarily due to an increase in theatrical releases including several franchise films in Motion Pictures, and higher sales in Media Networks primarily from Crunchyroll, the anime streaming service, as well as the India business. Operating income and Adjusted OIBDA are expected to be essentially flat year-on-year due to the above-mentioned increase in sales, substantially offset by higher marketing costs resulting from an increase in theatrical releases including several franchise films, and a lower contribution from prior fiscal year releases compared to the fiscal year ended March 31, 2023, which included higher home entertainment and television licensing revenues from several franchise films released theatrically in the fiscal year ended March 31, 2022.

Entertainment, Technology & Services (ET&S)

Results for the fiscal year ended March 31, 2023

Sales increased 136.8 billion yen (6%) year-on-year to 2 trillion 476.0 billion yen (a 4% decrease on a constant currency basis). This increase in sales was primarily due to the impact of foreign exchange rates as well as an increase in sales of digital cameras resulting from higher unit sales, partially offset by a decrease in sales of televisions resulting from lower unit sales.

Operating income decreased 33.5 billion yen year-on-year to 179.5 billion yen. This decrease in operating income was mainly due to the impact of the above-mentioned decrease in sales of televisions, partially offset by the impact of the above-mentioned increase in sales of digital cameras. During the current fiscal year, there was a 9.4 billion yen positive impact from foreign exchange rate fluctuations.

Forecast for the fiscal year ending March 31, 2024

Sales are expected to decrease year-on-year due to a decrease in sales of televisions resulting from lower unit sales as well as the impact of foreign exchange rates. Operating income and Adjusted OIBDA are expected to be essentially flat year-on-year due to an increase in operating income of televisions resulting from a reduction in logistics and other operating expenses, partially offset by an increase in research and development expenses and other investment for growth areas.

- 8 -

Imaging & Sensing Solutions (I&SS)

Results for the fiscal year ended March 31, 2023

Sales increased 325.8 billion yen (30%) year-on-year to 1 trillion 402.2 billion yen (an 11% increase on a constant currency basis). This significant increase in sales was mainly due to the impact of foreign exchange rates and an increase in sales of image sensors for mobile products resulting from an improvement in the product mix, partially offset by a decrease in unit sales.

Operating income increased 56.6 billion yen year-on-year to 212.2 billion yen. This significant increase was mainly due to the positive impact of foreign exchange rates and the impact of the above-mentioned increase in sales, partially offset by an increase in research and development expenses as well as depreciation and amortization expenses, and an increase in manufacturing costs. During the current fiscal year, there was a 120.9 billion yen positive impact from foreign exchange rate fluctuations.

Forecast for the fiscal year ending March 31, 2024

Sales are expected to increase primarily due to an expected increase in sales of image sensors for mobile products resulting from an improvement in the product mix as well as an increase in unit sales. Operating income is expected to decrease year-on-year primarily due to an increase in depreciation and amortization expenses as well as research and development expenses, an increase in manufacturing costs, and the negative impact of foreign exchange rates, partially offset by the impact of the above-mentioned increase in sales. Adjusted OIBDA is expected to increase due to the impact of the above-mentioned increase in sales, partially offset by an increase in research and development expenses, an increase in manufacturing costs, and the negative impact of foreign exchange rates.

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, 2023

Financial services revenue decreased 79.3 billion yen year-on-year to 1 trillion 454.5 billion yen, mainly due to a decrease in revenue at Sony Life. Revenue at Sony Life decreased 108.4 billion yen year-on-year to 1 trillion 242.1 billion yen, due to a decrease in net gains on investments in the separate accounts.

Operating income increased 73.8 billion yen year-on-year to 223.9 billion yen. This significant increase in operating income was mainly due to the recovery of 22.1 billion yen of an unauthorized withdrawal of funds at a subsidiary of Sony Life in the fiscal year ended March 31, 2023 which was recorded as a 16.8 billion yen loss in the fiscal year ended March 31, 2022, as well as a significant increase in operating income at Sony Life. Operating income at Sony Life increased 29.7 billion yen year-on-year to 177.0 billion yen. This increase in operating income was mainly due to a gain recorded on the sale of real estate as well as an increase in profits due to accumulation of policy amount in force, partially offset by an increase primarily in insurance payments related to COVID-19.

Forecast for the fiscal year ending March 31, 2024

Financial services revenue is expected to significantly decrease year-on-year. This decrease is mainly due to the impact of deducting the amount equivalent to the surrender benefit from the revenue*, which was previously included in insurance premium revenue at Sony Life, due to the adoption of IFRS 17 “Insurance Contracts” from the fiscal year ending March 31, 2024. Operating income is expected to decrease year-on-year primarily due to a gain recorded on the sale of real estate at Sony Life, the recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life, and a decrease in the provision of policy reserves due to fluctuations in the stock market and interest rates at Sony Life in the fiscal year ended March 31, 2023, partially offset by an increase primarily in insurance payments related to COVID-19 at Sony Life in the fiscal year ended March 31, 2023. Adjusted OIBDA is expected to decrease due to the same factors affecting operating income, excluding the impact of the recovery of the unauthorized withdrawal of funds at a subsidiary of Sony Life.

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.

* Expenses are also expected to decrease due to the deduction of the amount equivalent to the surrender benefit, which was previously included in insurance payments.

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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.

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Progress on the Fourth Mid-Range Plan

In the Fourth Mid-Range Plan for the three fiscal years starting on April 1, 2021 and ending on March 31, 2024, Sony has established a financial target of cumulative total Adjusted EBITDA of 4.3 trillion yen on a consolidated basis. Based on the progress toward the plan’s objectives, Sony expects three-year cumulative total Adjusted EBITDA to increase to 5.0 trillion yen, 16% higher than the target of 4.3 trillion yen.

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 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, broadcasting rights and internally developed game content and master recordings included in Content assets, as well as for deferred insurance acquisition costs - 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, broadcasting rights and internally developed game content and master recordings included in Content assets, as well as for deferred insurance acquisition costs - the profit and loss amount that Sony deems non-recurring

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

	Fiscal year ended March 31
	2023
	(Yen in billions)
Game & Network Services (G&NS)
Operating income		250.0
Depreciation and amortization expense^*		87.0
Profit and loss amount that Sony deems non-recurring^**		–
Adjusted OIBDA		337.0
Music
Operating income		263.1
Depreciation and amortization expense^*		59.0
Profit and loss amount that Sony deems non-recurring^**		(5.7	)
Adjusted OIBDA		316.4
Pictures
Operating income		119.3
Depreciation and amortization expense^*		48.9
Profit and loss amount that Sony deems non-recurring^**		–
Adjusted OIBDA		168.2
Entertainment, Technology & Services (ET&S)
Operating income		179.5
Depreciation and amortization expense^*		97.4
Profit and loss amount that Sony deems non-recurring^**		–
Adjusted OIBDA		276.9
Imaging & Sensing Solutions (I&SS)
Operating income		212.2
Depreciation and amortization expense^*		196.7
Profit and loss amount that Sony deems non-recurring^**		–
Adjusted OIBDA		408.9
Financial Services
Operating income		223.9
Depreciation and amortization expense^*		26.3
Profit and loss amount that Sony deems non-recurring^**		(22.1	)
Adjusted OIBDA		228.2
All Other, Corporate and elimination
Operating income		(39.8	)
Depreciation and amortization expense^*		26.8
Profit and loss amount that Sony deems non-recurring^**		–
Adjusted OIBDA		(12.9	)
Consolidated
Operating income		1,208.2
Depreciation and amortization expense^*		542.2
Profit and loss amount that Sony deems non-recurring^**		(27.8	)
Adjusted OIBDA		1,722.7

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The following table shows a reconciliation of Adjusted EBITDA from net income attributable to Sony Group Corporation’s stockholders in accordance with IFRS for the fiscal year ended March 31, 2023.

	Fiscal year ended March 31
	2023
	(Yen in billions)
Net income attributable to Sony Group Corporation’s stockholders		937.1
Net income attributable to noncontrolling interests		6.5
Income taxes		236.7
Interest expenses, net, recorded in Financial income and Financial expense		4.0
Gain on revaluation of equity instruments, net, recorded in Financial income and Financial expense		4.6
Depreciation and amortization expense^*		542.2
Profit and loss amount that Sony deems non-recurring^**		(27.8	)
Adjusted EBITDA		1,703.4

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

^**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 year ended March 2023.

	Fiscal year ended March 31
	2023
	(Yen in billions)
Impact of litigation settlements, net of expenses, received in relation to lawsuits for Recorded Music and Music Publishing (Music segment)		5.7
Recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life which occurred in the previous fiscal year (Financial Services segment)		22.1
Total		27.8

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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 COVID-19 and developments relating to the situation in Ukraine and Russia 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.

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