Sony 6K 6-K | SONY 14 Feb 24

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 February 2024

Commission File Number: 001-06439

SONY GROUP CORPORATION

(Translation of registrant's name into English)

1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN

(Address of principal executive offices)

The registrant files annual reports under cover of Form 20-F.

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,

Form 20-F X

Form 40-F __

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: February 14, 2024

List of materials

Documents attached hereto:

i) Press release: Quarterly Financial Statements for the Third Quarter Ended December 31, 2023 And Outlook for the Fiscal Year Ending March 31, 2024

Results for Adjusted OIBDA and Adjusted EBITDA for the Three and Nine Months Ended December 31, 2023

Sony has established 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. Starting in the three months ended June 30, 2023, Sony has disclosed the actual results for Adjusted EBITDA on a consolidated basis, which is the Group KPI, and Adjusted OIBDA (Operating Income Before Depreciation and Amortization) by segment.

The actual results for Segment Adjusted OIBDA and Consolidated Adjusted EBITDA for the three and nine months ended December 31, 2023 are as follows:

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 5 to 11 for more details, including the formulas and reconciliations for Adjusted OIBDA and Adjusted EBITDA (the same applies below).

Three months ended December 31, 2023

	(Yen in billions)
	Three months ended December 31
	2022 Restated		2023
Segment Adjusted OIBDA
Game & Network Services (G&NS)		139.9		113.1
Music		78.6		98.5
Pictures		38.2		54.6
Entertainment, Technology & Services (ET&S)		105.3		103.4
Imaging & Sensing Solutions (I&SS)		134.7		163.7
Financial Services		53.8		84.3
All Other, Corporate and elimination		11.0		10.6
Consolidated Adjusted OIBDA		561.5		628.3
Consolidated Adjusted EBITDA*		529.5		605.0

Nine months ended December 31, 2023

	(Yen in billions)
	Nine months ended December 31
	2022 Restated			2023
Segment Adjusted OIBDA
Game & Network Services (G&NS)		274.3			272.1
Music		240.9			278.5
Pictures		140.5			125.6
Entertainment, Technology & Services (ET&S)		284.8			271.8
Imaging & Sensing Solutions (I&SS)		324.2			340.9
Financial Services		263.8			168.4
All Other, Corporate and elimination		(0.9	)		(7.0	)
Consolidated Adjusted OIBDA		1,527.5			1,450.3
Consolidated Adjusted EBITDA*		1,513.5			1,437.6

* 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) (the same applies below). 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.

- 1 -

Outlook for the Fiscal Year Ending March 31, 2024

The forecast for consolidated results for the fiscal year ending March 31, 2024, as announced on November 9, 2023, has been revised as follows:

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

	(Yen in billions)
	March 31, 2023 Results Restated		November Forecast		February Forecast		Change from November Forecast
Sales *¹		10,974.4		12,400		12,300	-100 bil		-0.8	%
Operating income		1,302.4		1,170		1,180	+10 bil		+0.9	%
Income before income taxes		1,274.5		1,160		1,190	+30 bil		+2.6	%
Net income attributable to Sony Group Corporation’s stockholders		1,005.3		880		920	+40 bil		+4.5	%

Adjusted OIBDA		1,816.9		1,785		1,785		-	-
Adjusted EBITDA		1,797.6		1,785		1,770	-15 bil		-0.8	%

For all segments excluding the Financial Services segment *²		March 31, 2023 Results		November Forecast		February Forecast	Change from August Forecast
Net cash provided by operating activities		415.5		1,160		1,080	-80 bil		-6.9	%

*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.

Assumed foreign exchange rates are the following:

	Assumed foreign exchange rates for the three months ending March 31, 2024	(For your reference) Assumed foreign exchange rates for the fiscal year ending March 31, 2024 at the time of the November forecast
1 U.S. dollar	approximately 142 yen	approximately 142 yen
1 Euro	approximately 153 yen	approximately 152 yen

Sales are expected to be lower than the November forecast mainly due to lower-than-expected sales in the Game & Network Services segment, partially offset mainly by higher-than-expected sales in the Financial Services segment.

Operating income is expected to be higher than the November forecast due to an expected increase in operating income in the Financial Services segment, partially offset by an expected increase in the operating loss in All Other, Corporate and elimination.

Both income before income taxes and net income attributable to Sony Group Corporation’s stockholders are expected to be higher than the November forecast mainly due to the above-mentioned expected increase in operating income as well as an expected increase in financial income, net, primarily resulting from the recording of unrealized gains on securities.

Adjusted OIBDA is expected to remain unchanged from the November forecast due to an expected increase in Adjusted OIBDA in the Music segment, substantially offset by an expected increase in Adjusted OIBDA loss in All Other, Corporate and elimination. Adjusted EBITDA is expected to be lower than the November forecast mainly due to an expected increase in net foreign exchange losses recorded within financial expenses, net.

- 2 -

The forecast for each business segment for the fiscal year ending March 31, 2024 has been revised as follows:

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

Please refer to “Supplemental Information” on pages 5 to 11 for details of the reconciliation of Adjusted OIBDA from operating income in accordance with IFRS for the fiscal year ended March 31, 2023.

	(Yen in billions)
	March 31, 2023 Results Restated			November Forecast			February Forecast
Game & Network Services (G&NS)
Sales		3,644.6			4,360			4,150
Operating income		250.0			270			270
Adjusted OIBDA		337.0			385			385
Music
Sales		1,380.6			1,560			1,570
Operating income		263.1			295			295
Adjusted OIBDA		316.4			350			360
Pictures
Sales		1,369.4			1,460			1,470
Operating income		119.3			115			115
Adjusted OIBDA		168.2			165			165
Entertainment, Technology & Services (ET&S)
Sales		2,476.0			2,440			2,430
Operating income		179.5			180			180
Adjusted OIBDA		276.9			280			280
Imaging & Sensing Solutions (I&SS)
Sales		1,402.2			1,590			1,590
Operating income		212.2			195			195
Adjusted OIBDA		408.9			440			440
Financial Services
Financial services revenue		889.1			1,210			1,300
Operating income		318.1			155			175
Adjusted OIBDA		322.4			180			180
All Other, Corporate and elimination
Operating loss		(39.8	)		(40	)		(50	)
Adjusted OIBDA		(12.9	)		(15	)		(25	)
Consolidated
Sales		10,974.4			12,400			12,300
Operating income		1,302.4			1,170			1,180
Adjusted OIBDA		1,816.9			1,785			1,785
Adjusted EBITDA		1,797.6			1,785			1,770

- 3 -

Game & Network Services (G&NS)

Sales are expected to be lower than the November forecast, mainly due to an expected decrease in sales of hardware resulting from lower unit sales, partially offset by the impact of foreign exchange rates and an expected increase in sales of non-first-party titles including add-on content. Operating income and Adjusted OIBDA are expected to remain unchanged from the November forecast mainly due to the impact of the above-mentioned increase in sales of non-first-party titles, substantially offset by an expected increase in losses from hardware mainly due to promotions.

Music

Sales are expected to be higher than the November forecast primarily due to the impact of foreign exchange rates. Operating income is expected to remain unchanged from the November forecast primarily due to an improvement in profitability, substantially offset by an increase in depreciation and amortization expenses. Adjusted OIBDA is expected to be higher than the November forecast, mainly due to the same factors affecting operating income, excluding the above-mentioned increase in depreciation and amortization expenses.

Pictures

Sales are expected to be higher than the November forecast, primarily due to the impact of foreign exchange rates. Operating income and Adjusted OIBDA are expected to remain unchanged from the November forecast.

Entertainment, Technology & Services (ET&S)

Sales are expected to be lower than the November forecast due to an expected decrease in sales of televisions resulting from lower unit sales, partially offset by the impact of foreign exchange rates. Operating income and Adjusted OIBDA are expected to remain unchanged from the November forecast mainly due to the impact of the above-mentioned lower unit sales of televisions, substantially offset by expected reductions in operating expenses.

Imaging & Sensing Solutions (I&SS)

Sales are expected to remain unchanged from the November forecast mainly due to the impact of foreign exchange rates, substantially offset by an expected decrease in sales in businesses other than image sensors. Operating income and Adjusted OIBDA are expected to remain unchanged from the November forecast mainly due to the positive impact of foreign exchange rates, substantially offset by an increase in costs and the impact of the above-mentioned expected decrease in sales.

Financial Services

Financial services revenue is expected to be higher than the November forecast primarily due to an increase in net gains on investment in the separate accounts at Sony Life Insurance Co., Ltd. (“Sony Life”). Operating income is expected to be higher than the November forecast mainly due to the expected recording of a gain from the transfer of a portion of shares of Sony Payment Services Inc. in the three months ending March 31, 2024. Adjusted OIBDA is expected to remain unchanged from the November forecast.

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.

- 4 -

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.

Notes about Financial Performance of the Music, Pictures and Financial Services segments

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

The Pictures segment results are the yen-translated results of Sony Pictures Entertainment Inc., which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis.

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.

Supplemental Information

Regarding Adjusted OIBDA and Adjusted EBITDA

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

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

Adjusted OIBDA = Operating income + Depreciation and amortization expense excluding amortization for film costs and broadcasting rights, as well as for internally developed game content and master recordings included in Content assets - the profit and loss amount that Sony deems non-recurring

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

Adjusted EBITDA = Net income attributable to Sony Group Corporation’s stockholders + Net income attributable to noncontrolling interests + Income taxes + Interest expenses, net, recorded in Financial income and Financial expense - Gain on revaluation of equity instruments, net, recorded in Financial income and Financial expense + Depreciation and amortization expense excluding amortization for film costs and broadcasting rights, as well as for internally developed game content and master recordings included in Content assets - the profit and loss amount that Sony deems non-recurring

- 5 -

The following table shows a reconciliation of Adjusted OIBDA from operating income in accordance with IFRS for the three months ended December 31, 2022 and 2023, respectively.

As the results for the three months ended December 31, 2022 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the third quarter of the fiscal year ended March 31, 2023.

	(Yen in billions)
	Three months ended December 31
	2022 Restated		2023
Game & Network Services (G&NS)
Operating income		116.2		86.1
Depreciation and amortization expense^*		23.7		27.0
(Profit) / loss amount that Sony deems non-recurring^**		-		-
Adjusted OIBDA		139.9		113.1
Music
Operating income		63.0		76.1
Depreciation and amortization expense^*		15.7		22.4
(Profit) / loss amount that Sony deems non-recurring^**		-		-
Adjusted OIBDA		78.6		98.5
Pictures
Operating income		25.4		41.6
Depreciation and amortization expense^*		12.8		12.9
(Profit) / loss amount that Sony deems non-recurring^**		-		-
Adjusted OIBDA		38.2		54.6
Entertainment, Technology & Services (ET&S)
Operating income		81.1		77.2
Depreciation and amortization expense^*		24.2		26.2
(Profit) / loss amount that Sony deems non-recurring^**		-		-
Adjusted OIBDA		105.3		103.4
Imaging & Sensing Solutions (I&SS)
Operating income		84.9		99.7
Depreciation and amortization expense^*		49.8		64.0
(Profit) / loss amount that Sony deems non-recurring^**		-		-
Adjusted OIBDA		134.7		163.7
Financial Services
Operating income		47.1		77.3
Depreciation and amortization expense^*		6.7		7.0
(Profit) / loss amount that Sony deems non-recurring^**		-		-
Adjusted OIBDA		53.8		84.3
All Other, Corporate and elimination
Operating loss		3.9		5.3
Depreciation and amortization expense^*		7.1		5.3
(Profit) / loss amount that Sony deems non-recurring^**		-		-
Adjusted OIBDA		11.0		10.6
Consolidated
Operating income		421.6		463.3
Depreciation and amortization expense^*		139.9		164.9
(Profit) / loss amount that Sony deems non-recurring^**		-		-
Adjusted OIBDA		561.5		628.3

- 6 -

The following table shows a reconciliation of net income attributable to Sony Group Corporation’s stockholders reported in accordance with IFRS to Adjusted EBITDA for the three months ended December 31, 2022 and 2023, respectively.

	(Yen in billions)
	Three months ended December 31
	2022 Restated			2023
Net income attributable to Sony Group Corporation’s stockholders		321.5			363.9
Net income attributable to noncontrolling interests		1.7			3.5
Income taxes		68.2			91.2
Interest expenses, net, recorded in Financial income and Financial expense		0.5			2.1
(Gain) / loss on revaluation of equity instruments, net, recorded in Financial income and Financial expense		(2.3	)		(20.6	)
Depreciation and amortization expense*		139.9			164.9
(Profit) / loss amount that Sony deems non-recurring**		-			-
Adjusted EBITDA		529.5			605.0

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

** There were no items which Sony deemed non-recurring in calculating Adjusted OIBDA and Adjusted EBITDA for the three months ended December 31, 2022 and 2023, respectively.

- 7 -

The following table shows a reconciliation of Adjusted OIBDA from operating income in accordance with IFRS for the nine months ended December 31, 2022 and 2023, respectively.

As the results for the nine months ended December 31, 2022 are restated in accordance with IFRS 17, they differ from those disclosed in the earnings release for the third quarter of the fiscal year ended March 31, 2023.

	(Yen in billions)
	Nine months ended December 31
	2022 Restated			2023
Game & Network Services (G&NS)
Operating income		211.1			184.2
Depreciation and amortization expense^*		63.2			87.9
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		274.3			272.1
Music
Operating income		202.7			230.5
Depreciation and amortization expense^*		43.9			54.1
(Profit) / loss amount that Sony deems non-recurring^**		(5.7	)		(6.0	)
Adjusted OIBDA		240.9			278.5
Pictures
Operating income		103.7			87.0
Depreciation and amortization expense^*		36.7			38.5
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		140.5			125.6
Entertainment, Technology & Services (ET&S)
Operating income		212.5			193.8
Depreciation and amortization expense^*		72.3			78.0
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		284.8			271.8
Imaging & Sensing Solutions (I&SS)
Operating income		180.5			158.8
Depreciation and amortization expense^*		143.6			182.1
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		324.2			340.9
Financial Services
Operating income		266.3			147.5
Depreciation and amortization expense^*		19.6			20.9
(Profit) / loss amount that Sony deems non-recurring^**		(22.1	)		-
Adjusted OIBDA		263.8			168.4
All Other, Corporate and elimination
Operating loss		(21.0	)		(22.4	)
Depreciation and amortization expense^*		20.1			15.5
(Profit) / loss amount that Sony deems non-recurring^**		-			-
Adjusted OIBDA		(0.9	)		(7.0	)
Consolidated
Operating income		1,155.8			979.4
Depreciation and amortization expense^*		399.4			476.9
(Profit) / loss amount that Sony deems non-recurring^**		(27.8	)		(6.0	)
Adjusted OIBDA		1,527.5			1,450.3

- 8 -

The following table shows a reconciliation of net income attributable to Sony Group Corporation’s stockholders reported in accordance with IFRS to Adjusted EBITDA for the nine months ended December 31, 2022 and 2023, respectively.

	(Yen in billions)
	Nine months ended December 31
	2022 Restated			2023
Net income attributable to Sony Group Corporation’s stockholders		864.3			781.6
Net income attributable to noncontrolling interests		5.5			4.9
Income taxes		242.0			205.7
Interest expenses, net, recorded in Financial income and Financial expense		2.7			4.7
(Gain) / loss on revaluation of equity instruments, net, recorded in Financial income and Financial expense		27.4			(30.2	)
Depreciation and amortization expense*		399.4			476.9
(Profit) / loss amount that Sony deems non-recurring**		(27.8	)		(6.0	)
Adjusted EBITDA		1,513.5			1,437.6

** 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 nine months ended December 31, 2022 and 2023, respectively.

	(Yen in billions)
	Nine months ended December 31
	2022 Restated			2023
(Profit) / loss amount that Sony deems non-recurring
Impact of litigation settlements, net of expenses, received in relation to lawsuits for Recorded Music and Music Publishing (Music segment)		(5.7	)		-
Recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life which occurred in the three months ended June 30, 2021 (Financial Services segment)		(22.1	)		-
Remeasurement gain resulting from the consolidation of a company previously accounted for using the equity method (Music segment)		-			(6.0	)
Total		(27.8	)		(6.0	)

- 9 -

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

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

	(Yen in billions)
	Fiscal year ended March 31, 2023
	Restated
Game & Network Services (G&NS)
Operating income		250.0
Depreciation and amortization expense^*		87.0
(Profit) / loss amount that Sony deems non-recurring^**		-
Adjusted OIBDA		337.0
Music
Operating income		263.1
Depreciation and amortization expense^*		59.0
(Profit) / 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) / 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) / 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) / loss amount that Sony deems non-recurring^**		-
Adjusted OIBDA		408.9
Financial Services
Operating income		318.1
Depreciation and amortization expense^*		26.3
(Profit) / loss amount that Sony deems non-recurring^**		(22.1	)
Adjusted OIBDA		322.4
All Other, Corporate and elimination
Operating loss		(39.8	)
Depreciation and amortization expense^*		26.8
(Profit) / loss amount that Sony deems non-recurring^**		-
Adjusted OIBDA		(12.9	)
Consolidated
Operating income		1,302.4
Depreciation and amortization expense^*		542.2
(Profit) / loss amount that Sony deems non-recurring^**		(27.8	)
Adjusted OIBDA		1,816.9

- 10 -

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.

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

	(Yen in billions)
	Fiscal year ended March 31, 2023
	Restated
Net income attributable to Sony Group Corporation’s stockholders		1,005.3
Net income attributable to noncontrolling interests		6.5
Income taxes		262.7
Interest expenses, net, recorded in Financial income and Financial expense		4.0
(Gain) / loss on revaluation of equity instruments, net, recorded in Financial income and Financial expense		4.6
Depreciation and amortization expense^*		542.2
(Profit) / loss amount that Sony deems non-recurring^**		(27.8	)
Adjusted EBITDA		1,797.6

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

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

	(Yen in billions)
	Fiscal year ended March 31, 2023
	Restated
(Profit) / loss amount that Sony deems non-recurring
Impact of litigation settlements, net of expenses, received in relation to lawsuits for Recorded Music and Music Publishing (Music segment)		(5.7	)
Recovery of an unauthorized withdrawal of funds at a subsidiary of Sony Life which occurred in the three months ended June 30, 2021 (Financial Services segment)		(22.1	)
Total		(27.8	)

- 11 -

Cautionary Statement

Statements made in this release with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:

(i)	Sony’s ability to maintain product quality and customer satisfaction with its products and services;
(ii)	Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including image sensors, game and network platforms, smartphones and televisions, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing customer preferences;
(iii)	Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms;
(iv)	the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives;
(v)	changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility;
(vi)	Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity;
(vii)	Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations;
(viii)	the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending;
(ix)	Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade;
(x)	Sony’s ability to forecast demands, manage timely procurement and control inventories;
(xi)	foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets, liabilities and operating results are denominated;
(xii)	Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel;
(xiii)	Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others;
(xiv)	the impact of changes in interest rates and unfavorable conditions or developments (including market fluctuations or volatility) in the Japanese equity markets on the revenue and operating income of the Financial Services segment;
(xv)	shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services segment;
(xvi)	risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events;
(xvii)	the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and
(xviii)	the outcome of pending and/or future legal and/or regulatory proceedings.

Risks and uncertainties also include the impact of any future events with material adverse impact. The continued impact of developments relating to the situations in Ukraine and Russia and in the Middle East could heighten many of the risks and uncertainties noted above. Important information regarding risks and uncertainties is also set forth in Sony’s most recent Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

- 12 -

Quarterly Financial Statements

for the Third Quarter Ended December 31, 2023

And

Outlook for the Fiscal Year Ending March 31, 2024

February 14, 2024

Sony Group Corporation

Quarterly Financial Statements (Unaudited)	F-1

Condensed Consolidated Statements of Financial Position	F-1
Condensed Consolidated Statements of Income (Three months ended December 31)	F-3
Condensed Consolidated Statements of Comprehensive Income (Three months ended December 31)	F-4
Condensed Consolidated Statements of Income (Nine months ended December 31)	F-5
Condensed Consolidated Statements of Comprehensive Income (Nine months ended December 31)	F-6
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Nine months ended December 31)	F-7
Condensed Consolidated Statements of Cash Flows (Nine months ended December 31)	F-8
Notes to Condensed Consolidated Financial Statements	F-10
- Business Segment Information	F-10
- Going Concern Assumption	F-20
- Accounting Policy and Other Information	F-20
- Subsequent Events	F-22

Results for Adjusted OIBDA and Adjusted EBITDA for the Three and Nine Months Ended December 31, 2023	1

Outlook for the Fiscal Year Ending March 31, 2024	2

Supplemental Information	5

Cautionary Statement	12

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

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

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

- 13 -

(Unaudited)

Condensed Consolidated Financial Statements

Condensed Consolidated Statements of Financial Position

	Yen in millions
	April 1, 2022 Restated		March 31, 2023 Restated		December 31, 2023		Change from March 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		2,049,636		1,480,900		2,019,112		538,212
Investments and advances in the Financial Services segment		360,681		328,358		455,427		127,069
Trade and other receivables, and contract assets		1,621,629		1,770,948		2,410,040		639,092
Inventories		874,007		1,468,042		1,629,886		161,844
Other financial assets		149,301		110,950		132,235		21,285
Other current assets		428,522		563,334		722,214		158,880
Total current assets		5,483,776		5,722,532		7,368,914		1,646,382
Non-current assets:
Investments accounted for using the equity method		268,513		325,220		406,024		80,804
Investments and advances in the Financial Services segment		18,251,612		18,237,761		18,370,584		132,823
Property, plant and equipment		1,113,213		1,344,864		1,491,920		147,056
Right-of-use assets		413,430		478,063		470,230		(7,833	)
Goodwill		952,895		1,275,112		1,394,865		119,753
Content assets		1,342,046		1,561,882		1,807,713		245,831
Other intangible assets		450,103		563,842		586,812		22,970
Deferred tax assets		300,924		393,107		462,062		68,955
Other financial assets		696,306		832,344		825,313		(7,031	)
Other non-current assets		379,137		419,368		459,188		39,820
Total non-current assets		24,168,179		25,431,563		26,274,711		843,148
Total assets		29,651,955		31,154,095		33,643,625		2,489,530

(Continued on the following page.)

F-1

Condensed Consolidated Statements of Financial Position (Continued)

	Yen in millions
	April 1, 2022 Restated			March 31, 2023 Restated			December 31, 2023			Change from March 31, 2023
LIABILITIES
Current liabilities:
Short-term borrowings		1,976,553			1,914,934			2,374,858			459,924
Current portion of long-term debt		171,409			187,942			190,671			2,729
Trade and other payables		1,843,338			1,866,101			2,244,832			378,731
Deposits from customers in the banking business		2,886,361			3,163,237			3,561,499			398,262
Income taxes payables		105,437			154,543			134,521			(20,022	)
Participation and residual liabilities in the Pictures segment		190,162			230,223			233,435			3,212
Other financial liabilities		127,079			108,049			112,429			4,380
Other current liabilities		1,465,326			1,693,380			1,834,500			141,120
Total current liabilities		8,765,665			9,318,409			10,686,745			1,368,336
Non-current liabilities:
Long-term debt		1,203,646			1,767,696			1,840,067			72,371
Defined benefit liabilities		254,548			236,121			243,108			6,987
Deferred tax liabilities		120,582			117,621			133,762			16,141
Insurance contract liabilities		13,042,875			12,364,973			12,571,220			206,247
Participation and residual liabilities in the Pictures segment		220,113			192,952			184,953			(7,999	)
Other financial liabilities		231,463			371,580			371,758			178
Other non-current liabilities		106,481			127,593			143,299			15,706
Total non-current liabilities		15,179,708			15,178,536			15,488,167			309,631
Total liabilities		23,945,373			24,496,945			26,174,912			1,677,967
EQUITY
Sony Group Corporation’s stockholders’ equity:
Common stock		880,365			880,365			881,357			992
Additional paid-in capital		1,461,053			1,463,807			1,482,460			18,653
Retained earnings		4,170,417			5,092,442			5,775,372			682,930
Accumulated other comprehensive income		(677,989	)		(614,570	)		(548,960	)		65,610
Treasury stock, at cost		(180,042	)		(223,507	)		(282,064	)		(58,557	)
Equity attributable to Sony Group Corporation’s stockholders		5,653,804			6,598,537			7,308,165			709,628
Noncontrolling interests		52,778			58,613			160,548			101,935
Total equity		5,706,582			6,657,150			7,468,713			811,563
Total liabilities and equity		29,651,955			31,154,095			33,643,625			2,489,530

F-2

Condensed Consolidated Statements of Income

	Yen in millions
	Three months ended December 31
	2022 Restated			2023			Change
Sales and financial services revenue:
Sales		3,056,183			3,438,092			381,909
Financial services revenue
Insurance revenue		138,463			146,801			8,338
Other financial services revenue		(116,342	)		162,634			278,976
Total financial services revenue		22,121			309,435			287,314
Total sales and financial services revenue		3,078,304			3,747,527			669,223
Costs and expenses:
Cost of sales		2,161,904			2,504,410			342,506
Selling, general and administrative		529,188			554,712			25,524
Financial services expenses
Insurance service expenses		93,721			99,375			5,654
Insurance finance expenses (income)		(148,675	)		89,750			238,425
Other financial services expenses		29,424			42,954			13,530
Total financial services expenses		(25,530	)		232,079			257,609
Other operating (income) expense, net		(1,484	)		(3,691	)		(2,207	)
Total costs and expenses		2,664,078			3,287,510			623,432
Share of profit (loss) of investments accounted for using the equity method		7,355			3,321			(4,034	)
Operating income		421,581			463,338			41,757
Financial income		6,943			33,959			27,016
Financial expenses		37,101			38,742			1,641
Income before income taxes		391,423			458,555			67,132
Income taxes		68,205			91,184			22,979
Net income		323,218			367,371			44,153

Net income attributable to
Sony Group Corporation’s stockholders		321,521			363,918			42,397
Noncontrolling interests		1,697			3,453			1,756

	Yen
	Three months ended December 31
	2022 Restated		2023		Change
Per share data:
Net income attributable to Sony Group Corporation’s stockholders
- Basic		260.28		295.67		35.39
- Diluted		259.62		294.82		35.20

F-3

Condensed Consolidated Statements of Comprehensive Income

	Yen in millions
	Three months ended December 31
	2022 Restated			2023			Change
Net income		323,218			367,371			44,153
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		5,988			(15,272	)		(21,260	)
Remeasurement of defined benefit pension plans		10			(578	)		(588	)
Share of other comprehensive income of investments accounted for using the equity method		(141	)		(127	)		14
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income		(264,054	)		173,013			437,067
Cash flow hedges		10,128			3,825			(6,303	)
Insurance finance income (expenses)		265,802			(104,893	)		(370,695	)
Exchange differences on translating foreign operations		(223,403	)		(155,748	)		67,655
Share of other comprehensive income of investments accounted for using the equity method		(1,649	)		(1,868	)		(219	)
Other		(259	)		136			395
Total other comprehensive income, net of tax		(207,578	)		(101,512	)		106,066
Comprehensive income		115,640			265,859			150,219

Comprehensive income attributable to
Sony Group Corporation’s stockholders		116,677			262,765			146,088
Noncontrolling interests		(1,037	)		3,094			4,131

F-4

Condensed Consolidated Statements of Income

	Yen in millions
	Nine months ended December 31
	2022 Restated			2023			Change
Sales and financial services revenue:
Sales		7,523,263			8,449,647			926,384
Financial services revenue
Insurance revenue		411,376			433,228			21,852
Other financial services revenue		(1,111	)		656,927			658,038
Total financial services revenue		410,265			1,090,155			679,890
Total sales and financial services revenue		7,933,528			9,539,802			1,606,274
Costs and expenses:
Cost of sales		5,241,857			6,096,395			854,538
Selling, general and administrative		1,418,411			1,548,380			129,969
Financial services expenses
Insurance service expenses		284,609			291,961			7,352
Insurance finance expenses (income)		(197,508	)		528,075			725,583
Other financial services expenses		61,150			122,319			61,169
Total financial services expenses		148,251			942,355			794,104
Other operating (income) expense, net		(12,278	)		(15,813	)		(3,535	)
Total costs and expenses		6,796,241			8,571,317			1,775,076
Share of profit (loss) of investments accounted for using the equity method		18,562			10,904			(7,658	)
Operating income		1,155,849			979,389			(176,460	)
Financial income		19,862			65,737			45,875
Financial expenses		63,893			52,942			(10,951	)
Income before income taxes		1,111,818			992,184			(119,634	)
Income taxes		242,007			205,715			(36,292	)
Net income		869,811			786,469			(83,342	)

Net income attributable to
Sony Group Corporation’s stockholders		864,296			781,568			(82,728	)
Noncontrolling interests		5,515			4,901			(614	)

	Yen
	Nine months ended December 31
	2022 Restated		2023		Change
Per share data:
Net income attributable to Sony Group Corporation’s stockholders
- Basic		699.17		633.94		(65.23	)
- Diluted		695.64		631.93		(63.71	)

F-5

Condensed Consolidated Statements of Comprehensive Income

	Yen in millions
	Nine months ended December 31
	2022 Restated			2023			Change
Net income		869,811			786,469			(83,342	)
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		(9,520	)		(33,276	)		(23,756	)
Remeasurement of defined benefit pension plans		39			(1,030	)		(1,069	)
Share of other comprehensive income of investments accounted for using the equity method		131			190			59
Items that may be reclassified subsequently to profit or loss
Changes in debt instruments measured at fair value through other comprehensive income		(1,190,706	)		(522,959	)		667,747
Cash flow hedges		17,719			3,523			(14,196	)
Insurance finance income (expenses)		1,056,526			411,886			(644,640	)
Exchange differences on translating foreign operations		140,581			207,677			67,096
Share of other comprehensive income of investments accounted for using the equity method		2,792			2,270			(522	)
Other		(397	)		(206	)		191
Total other comprehensive income, net of tax		17,165			68,075			50,910
Comprehensive income		886,976			854,544			(32,432	)

Comprehensive income attributable to
Sony Group Corporation’s stockholders		879,522			847,369			(32,153	)
Noncontrolling interests		7,454			7,175			(279	)

F-6

Condensed Consolidated Statements of Changes in Stockholders’ Equity

	Yen in millions
	Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive income			Treasury stock, at cost			Sony Group Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at April 1, 2022		880,365		1,461,053			3,760,763			1,222,332			(180,042	)		7,144,471			52,778			7,197,249
Cumulative effects of the application of new accounting standards		-		-			409,654			(1,900,321	)		-			(1,490,667	)		-			(1,490,667	)
Restated balance at April 1, 2022		880,365		1,461,053			4,170,417			(677,989	)		(180,042	)		5,653,804			52,778			5,706,582
Comprehensive income (restated):
Net income							864,296									864,296			5,515			869,811
Other comprehensive income, net of tax										15,226						15,226			1,939			17,165
Total comprehensive income (restated)							864,296			15,226						879,522			7,454			886,976
Transfer to retained earnings							(52	)		52						-						-
Transactions with stockholders and other:
Exercise of stock acquisition rights				(6	)		(859	)					5,696			4,831						4,831
Conversion of convertible bonds				(2,588	)		(13,858	)					42,993			26,547						26,547
Stock-based compensation				7,413												7,413						7,413
Dividends declared							(86,635	)								(86,635	)		(5,470	)		(92,105	)
Purchase of treasury stock													(91,307	)		(91,307	)					(91,307	)
Reissuance of treasury stock				1,234									2,400			3,634						3,634
Transactions with noncontrolling interests shareholders and other				(8,898	)											(8,898	)		2,295			(6,603	)
Restated balance at December 31, 2022		880,365		1,458,208			4,933,309			(662,711	)		(220,260	)		6,388,911			57,057			6,445,968

	Yen in millions
	Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive income			Treasury stock, at cost			Sony Group Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at April 1, 2023		880,365		1,463,807			5,092,442			(614,570	)		(223,507	)		6,598,537			58,613			6,657,150
Comprehensive income:
Net income							781,568									781,568			4,901			786,469
Other comprehensive income, net of tax										65,801						65,801			2,274			68,075
Total comprehensive income							781,568			65,801						847,369			7,175			854,544
Transfer to retained earnings							191			(191	)					-						-
Transactions with stockholders and other:
Exercise of stock acquisition rights and other		992		(1,533	)		(144	)					12,858			12,173						12,173
Stock-based compensation				9,472												9,472						9,472
Dividends declared							(98,685	)								(98,685	)		(4,866	)		(103,551	)
Purchase of treasury stock													(74,705	)		(74,705	)					(74,705	)
Reissuance of treasury stock				1,786									3,290			5,076						5,076
Transactions with noncontrolling interests shareholders and other				8,928												8,928			99,626			108,554
Balance at December 31, 2023		881,357		1,482,460			5,775,372			(548,960	)		(282,064	)		7,308,165			160,548			7,468,713

F-7

Condensed Consolidated Statements of Cash Flows

	Yen in millions
	Nine months ended December 31
	2022 Restated			2023
Cash flows from operating activities:
Income before income taxes		1,111,818			992,184
Adjustments to reconcile income before income taxes to net cash provided by (used in) operating activities:
Depreciation and amortization, including amortization of contract costs		735,642			852,030
Other operating (income) expense, net		(12,278	)		(15,813	)
(Gain) loss on securities, net (other than Financial Services segment)		27,154			(31,340	)
Share of profit of investments accounted for using the equity method, net of dividends		(12,166	)		(3,032	)
Changes in assets and liabilities:
Increase in trade receivables and contract assets		(276,956	)		(592,206	)
Increase in inventories		(572,541	)		(88,517	)
Increase in investments and advances in the Financial Services segment		(660,389	)		(988,372	)
Increase in content assets		(477,898	)		(358,830	)
Increase in trade payables		65,799			252,967
Increase (decrease) in insurance contract liabilities, net of insurance contract assets		(48,342	)		789,883
Increase in deposits from customers in the banking business		194,976			419,223
Increase in borrowings in the life insurance business and the banking business		100,670			72,995
Decrease in taxes payable other than income taxes, net		(34,912	)		(16,593	)
Increase in other financial assets and other current assets		(37,164	)		(67,033	)
Increase in other financial liabilities and other current liabilities		101,294			12,806
Income taxes paid		(183,097	)		(251,431	)
Other		(103,233	)		(46,963	)
Net cash provided by (used in) operating activities		(81,623	)		931,958

(Continued on the following page.)

F-8

Condensed Consolidated Statements of Cash Flows (Continued)

	Yen in millions
	Nine months ended December 31
	2022 Restated			2023
Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets		(434,748	)		(450,017	)
Proceeds from sales of property, plant and equipment and other intangible assets		9,474			10,838
Payments for investments and advances (other than Financial Services segment)		(185,577	)		(75,072	)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)		11,740			80,476
Payments for purchases of businesses and other		(280,447	)		(170,925	)
Proceeds from sales of businesses		1,221			-
Other		20,814			(15,253	)
Net cash used in investing activities		(857,523	)		(619,953	)
Cash flows from financing activities:
Increase in short-term borrowings, net		27,765			402,152
Proceeds from issuance of long-term debt		348,565			63,660
Payments of long-term debt		(106,328	)		(99,311	)
Dividends paid		(86,383	)		(98,424	)
Payments for purchases of treasury stock		(91,307	)		(74,705	)
Other		7,036			8,821
Net cash provided by financing activities		99,348			202,193
Effect of exchange rate changes on cash and cash equivalents		78,142			24,014
Net increase (decrease) in cash and cash equivalents		(761,656	)		538,212
Cash and cash equivalents at beginning of the fiscal year		2,049,636			1,480,900
Cash and cash equivalents at end of the period		1,287,980			2,019,112

F-9

Notes to Condensed Consolidated Financial Statements

Business Segment Information

(Business Segments)

Segment sales and financial services revenue

	Yen in millions
	Three months ended December 31
	2022 Restated			2023			Change
Sales and financial services revenue:
Game & Network Services -
Customers		1,211,617			1,428,886			217,269
Intersegment		34,932			15,541			(19,391	)
Total		1,246,549			1,444,427			197,878
Music -
Customers		360,643			417,651			57,008
Intersegment		3,104			4,453			1,349
Total		363,747			422,104			58,357
Pictures -
Customers		330,925			365,133			34,208
Intersegment		612			1,194			582
Total		331,537			366,327			34,790
Entertainment, Technology & Services -
Customers		742,480			725,563			(16,917	)
Intersegment		10,343			10,175			(168	)
Total		752,823			735,738			(17,085	)
Imaging & Sensing Solutions -
Customers		386,400			477,513			91,113
Intersegment		30,751			27,645			(3,106	)
Total		417,151			505,158			88,007
Financial Services -
Customers		22,121			309,435			287,314
Intersegment		2,301			2,308			7
Total		24,422			311,743			287,321
All Other -
Customers		19,648			20,192			544
Intersegment		5,412			3,703			(1,709	)
Total		25,060			23,895			(1,165	)
Corporate and elimination		(82,985	)		(61,865	)		21,120
Consolidated total		3,078,304			3,747,527			669,223

　　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
	Three months ended December 31
	2022 Restated			2023		Change
Operating income (loss):
Game & Network Services		116,248			86,139		(30,109	)
Music		62,961			76,086		13,125
Pictures		25,445			41,626		16,181
Entertainment, Technology & Services		81,094			77,164		(3,930	)
Imaging & Sensing Solutions		84,851			99,715		14,864
Financial Services		47,107			77,274		30,167
All Other		9,062			2,596		(6,466	)
Total		426,768			460,600		33,832
Corporate and elimination		(5,187	)		2,738		7,925
Consolidated operating income		421,581			463,338		41,757

　　Operating income (loss) is sales and financial services revenue less costs and expenses, and includes the share of profit (loss) of investments accounted for using the equity method.

F-11

(Business Segments)

Segment sales and financial services revenue

	Yen in millions
	Nine months ended December 31
	2022 Restated			2023			Change
Sales and financial services revenue:
Game & Network Services -
Customers		2,502,796			3,114,026			611,230
Intersegment		68,604			56,377			(12,227	)
Total		2,571,400			3,170,403			599,003
Music -
Customers		1,022,924			1,172,767			149,843
Intersegment		8,212			16,282			8,070
Total		1,031,136			1,189,049			157,913
Pictures -
Customers		1,007,752			1,082,658			74,906
Intersegment		2,630			3,671			1,041
Total		1,010,382			1,086,329			75,947
Entertainment, Technology & Services -
Customers		1,953,118			1,892,069			(61,049	)
Intersegment		29,060			28,992			(68	)
Total		1,982,178			1,921,061			(61,117	)
Imaging & Sensing Solutions -
Customers		975,203			1,122,646			147,443
Intersegment		78,156			81,568			3,412
Total		1,053,359			1,204,214			150,855
Financial Services -
Customers		410,265			1,090,155			679,890
Intersegment		8,242			6,914			(1,328	)
Total		418,507			1,097,069			678,562
All Other -
Customers		52,848			57,012			4,164
Intersegment		12,278			10,601			(1,677	)
Total		65,126			67,613			2,487
Corporate and elimination		(198,560	)		(195,936	)		2,624
Consolidated total		7,933,528			9,539,802			1,606,274

　　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
	Nine months ended December 31
	2022 Restated			2023			Change
Operating income (loss):
Game & Network Services		211,142			184,201			(26,941	)
Music		202,667			230,463			27,796
Pictures		103,720			87,035			(16,685	)
Entertainment, Technology & Services		212,502			193,843			(18,659	)
Imaging & Sensing Solutions		180,527			158,807			(21,720	)
Financial Services		266,304			147,469			(118,835	)
All Other		16,775			7,140			(9,635	)
Total		1,193,637			1,008,958			(184,679	)
Corporate and elimination		(37,788	)		(29,569	)		8,219
Consolidated operating income		1,155,849			979,389			(176,460	)

　　Operating income (loss) is sales and financial services revenue less costs and expenses, and includes the share of profit (loss) of investments accounted for using the equity method.

F-13

(Sales to Customers by Product Category)

　　The following table is a breakdown of sales and financial services revenue to external customers by product category for each segment. Sony management views each segment as a single operating segment.

	Yen in millions
	Three months ended December 31
Sales and financial services revenue:	2022 Restated		2023		Change
Game & Network Services
Digital Software and Add-on Content		508,102		631,981		123,879
Network Services		122,201		137,182		14,981
Hardware and Others		581,314		659,723		78,409
Total		1,211,617		1,428,886		217,269
Music
Recorded Music - Streaming		159,147		186,520		27,373
Recorded Music - Others		79,901		100,021		20,120
Music Publishing		74,161		86,084		11,923
Visual Media and Platform		47,434		45,026		(2,408	)
Total		360,643		417,651		57,008
Pictures
Motion Pictures		113,087		130,441		17,354
Television Productions		123,508		130,844		7,336
Media Networks		94,330		103,848		9,518
Total		330,925		365,133		34,208
Entertainment, Technology & Services
Televisions		250,192		210,967		(39,225	)
Audio and Video		122,605		133,823		11,218
Still and Video Cameras		171,146		188,609		17,463
Mobile Communications		93,302		76,508		(16,794	)
Other		105,235		115,656		10,421
Total		742,480		725,563		(16,917	)
Imaging & Sensing Solutions		386,400		477,513		91,113
Financial Services		22,121		309,435		287,314
All Other		19,648		20,192		544
Corporate		4,470		3,154		(1,316	)
Consolidated total		3,078,304		3,747,527		669,223

F-14

	Yen in millions
	Nine months ended December 31
Sales and financial services revenue:	2022 Restated		2023		Change
Game & Network Services
Digital Software and Add-on Content		1,126,806		1,420,423		293,617
Network Services		345,730		395,568		49,838
Hardware and Others		1,030,260		1,298,035		267,775
Total		2,502,796		3,114,026		611,230
Music
Recorded Music - Streaming		450,188		525,265		75,077
Recorded Music - Others		212,387		252,787		40,400
Music Publishing		210,707		243,948		33,241
Visual Media and Platform		149,642		150,767		1,125
Total		1,022,924		1,172,767		149,843
Pictures
Motion Pictures		360,003		385,154		25,151
Television Productions		377,255		408,460		31,205
Media Networks		270,494		289,044		18,550
Total		1,007,752		1,082,658		74,906
Entertainment, Technology & Services
Televisions		618,736		507,951		(110,785	)
Audio and Video		313,552		332,072		18,520
Still and Video Cameras		458,711		509,686		50,975
Mobile Communications		285,559		236,644		(48,915	)
Other		276,560		305,716		29,156
Total		1,953,118		1,892,069		(61,049	)
Imaging & Sensing Solutions		975,203		1,122,646		147,443
Financial Services		410,265		1,090,155		679,890
All Other		52,848		57,012		4,164
Corporate		8,622		8,469		(153	)
Consolidated total		7,933,528		9,539,802		1,606,274

　　In the G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on content through the network; Network Services includes network services relating to game, video and music content; Hardware and Others includes home gaming consoles, packaged software, game software sold bundled with home gaming consoles, peripheral devices and first-party software for third-party platforms. In the Music segment, Recorded Music - Streaming includes the distribution of digital recorded music by streaming; Recorded Music - Others includes the distribution of recorded music by physical media and digital download as well as revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes the production and distribution of animation titles and game applications, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of live-action and animated motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television networks and direct-to-consumer streaming services worldwide. In the ET&S segment, Televisions includes LCD and OLED televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones and memory-based portable audio devices; Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Mobile Communications includes smartphones and an internet-related service business; Other includes display products such as projectors and medical equipment.

F-15

(Condensed Financial Services Financial Statements)

　　The following schedules show unaudited condensed financial statements for the Financial Services segment and all other segments excluding Financial Services. These presentations are not in accordance with IFRS, which is used by Sony to prepare its condensed 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 condensed consolidated financial statements. Both financial statements include transactions between the Financial Services segment and Sony without the Financial Services segment. The figures shown in the respective presentations for the Financial Services segment and Sony without the Financial Services segment are prior to the elimination and/or offset of such transactions and deferred tax assets and deferred tax liabilities of each. The condensed consolidated financial statements column is presented net of the elimination and/or offset of such intercompany balances and deferred tax assets and liabilities.

Condensed Statements of Financial Position

	Yen in millions
	Financial Services						Sony without Financial Services						Consolidated
	April 1, 2022 Restated		March 31, 2023 Restated		December 31, 2023		April 1, 2022 Restated		March 31, 2023 Restated		December 31, 2023		April 1, 2022 Restated		March 31, 2023 Restated		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	¥	889,140	¥	756,493	¥	1,042,647	¥	1,160,496	¥	724,407	¥	976,465	¥	2,049,636	¥	1,480,900	¥	2,019,112
Investments and advances in the Financial Services segment		360,681		328,358		455,427		-		-		-		360,681		328,358		455,427
Trade and other receivables, and contract assets		163,037		127,413		140,581		1,478,620		1,668,257		2,290,386		1,621,629		1,770,948		2,410,040
Inventories		-		-		-		874,007		1,468,042		1,629,886		874,007		1,468,042		1,629,886
Other financial assets		81,174		47,044		57,829		68,124		63,906		74,405		149,301		110,950		132,235
Other current assets		27,893		16,029		77,412		450,953		562,442		655,724		428,522		563,334		722,214
Total current assets		1,521,925		1,275,337		1,773,896		4,032,200		4,487,054		5,626,866		5,483,776		5,722,532		7,368,914
Non-current assets:
Investments accounted for using the equity method		-		-		-		268,513		325,220		406,024		268,513		325,220		406,024
Investments and advances in the Financial Services segment		18,251,612		18,237,761		18,370,584		-		-		-		18,251,612		18,237,761		18,370,584
Investments in Financial Services, at cost		-		-		-		550,483		550,483		550,483		-		-		-
Property, plant and equipment		18,010		15,316		14,321		1,095,241		1,329,219		1,477,272		1,113,213		1,344,864		1,491,920
Right-of-use assets		73,774		84,023		78,420		339,658		395,210		392,941		413,430		478,063		470,230
Goodwill and intangible assets, including content assets		72,578		78,197		73,670		2,672,466		3,322,639		3,715,720		2,745,044		3,400,836		3,789,390
Deferred tax assets		2,335		2,687		-		332,330		431,533		488,288		300,924		393,107		462,062
Other financial assets		37,037		46,941		61,311		663,233		789,470		768,154		696,306		832,344		825,313
Other non-current assets		167,744		172,565		166,290		284,834		319,306		364,857		379,137		419,368		459,188
Total non-current assets		18,623,090		18,637,490		18,764,596		6,206,758		7,463,080		8,163,739		24,168,179		25,431,563		26,274,711
Total assets	¥	20,145,015	¥	19,912,827	¥	20,538,492	¥	10,238,958	¥	11,950,134	¥	13,790,605	¥	29,651,955	¥	31,154,095	¥	33,643,625

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	1,964,776	¥	1,891,856	¥	1,929,741	¥	183,187	¥	211,020	¥	635,788	¥	2,147,962	¥	2,102,876	¥	2,565,529
Trade and other payables		119,017		77,703		40,905		1,744,011		1,812,670		2,205,379		1,843,338		1,866,101		2,244,832
Deposits from customers in the banking business		2,886,361		3,163,237		3,561,499		-		-		-		2,886,361		3,163,237		3,561,499
Income taxes payables		3,789		15,213		2,922		101,648		139,330		131,599		105,437		154,543		134,521
Participation and residual liabilities in the Pictures segment		-		-		-		190,162		230,223		233,435		190,162		230,223		233,435
Other financial liabilities		98,029		77,605		78,051		29,050		30,444		34,378		127,079		108,049		112,429
Other current liabilities		218,865		194,174		242,393		1,297,115		1,514,792		1,622,515		1,465,326		1,693,380		1,834,500
Total current liabilities		5,290,837		5,419,788		5,855,511		3,545,173		3,938,479		4,863,094		8,765,665		9,318,409		10,686,745
Non-current liabilities:
Long-term debt		470,498		663,353		692,552		733,148		1,104,344		1,147,515		1,203,646		1,767,696		1,840,067
Defined benefit liabilities		37,167		37,183		37,896		217,381		198,938		205,212		254,548		236,121		243,108
Deferred tax liabilities		58,666		60,554		42,156		110,715		112,938		132,589		120,582		117,621		133,762
Insurance contract liabilities		13,042,875		12,364,973		12,571,220		-		-		-		13,042,875		12,364,973		12,571,220
Participation and residual liabilities in the Pictures segment		-		-		-		220,113		192,952		184,953		220,113		192,952		184,953
Other financial liabilities		147,712		175,026		205,036		86,391		199,327		169,618		231,463		371,580		371,758
Other non-current liabilities		5,864		7,225		7,551		121,558		142,096		156,835		106,481		127,593		143,299
Total non-current liabilities		13,762,782		13,308,314		13,556,411		1,489,306		1,950,595		1,996,722		15,179,708		15,178,536		15,488,167
Total liabilities		19,053,619		18,728,102		19,411,922		5,034,479		5,889,074		6,859,816		23,945,373		24,496,945		26,174,912
Equity:
Stockholders’ equity of Financial Services		1,087,948		1,180,905		1,124,448		-		-		-		-		-		-
Stockholders’ equity of Sony without Financial Services		-		-		-		5,155,149		6,006,267		6,772,363		-		-		-
Sony Group Corporation’s stockholders’ equity		-		-		-		-		-		-		5,653,804		6,598,537		7,308,165
Noncontrolling interests		3,448		3,820		2,122		49,330		54,793		158,426		52,778		58,613		160,548
Total equity		1,091,396		1,184,725		1,126,570		5,204,479		6,061,060		6,930,789		5,706,582		6,657,150		7,468,713
Total liabilities and equity	¥	20,145,015	¥	19,912,827	¥	20,538,492	¥	10,238,958	¥	11,950,134	¥	13,790,605	¥	29,651,955	¥	31,154,095	¥	33,643,625

F-16

Condensed Statements of Income

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

Sales	¥	-		¥	-	¥	3,057,441		¥	3,439,360		¥	3,056,183		¥	3,438,092
Financial services revenue		24,422			311,743		-			-			22,121			309,435
Total sales and financial services revenue		24,422			311,743		3,057,441			3,439,360			3,078,304			3,747,527

Cost of sales		-			-		2,164,926			2,508,021			2,161,904			2,504,410
Selling, general and administrative		-			-		527,428			552,365			529,188			554,712
Financial services expenses		(23,229	)		234,387		-			-			(25,530	)		232,079
Other operating (income) expense, net		544			82		(2,027	)		(3,773	)		(1,484	)		(3,691	)
Total costs and expenses		(22,685	)		234,469		2,690,327			3,056,613			2,664,078			3,287,510

Share of profit (loss) of investments accounted for using the equity method		-			-		7,355			3,321			7,355			3,321

Operating income		47,107			77,274		374,469			386,068			421,581			463,338

Financial income (expenses), net		-			-		(30,159	)		(4,784	)		(30,158	)		(4,783	)

Income before income taxes		47,107			77,274		344,310			381,284			391,423			458,555

Income taxes		12,450			22,121		55,756			69,063			68,205			91,184

Net income		34,657			55,153		288,554			312,221			323,218			367,371

Net income of Financial Services	¥	34,644		¥	54,999	¥	-		¥	-		¥	-		¥	-

Net income of Sony without Financial Services	¥	-		¥	-	¥	286,870		¥	308,923		¥	-		¥	-

Net income attributable to Sony Group Corporation’s stockholders	¥	-		¥	-	¥	-		¥	-		¥	321,521		¥	363,918

Net income attributable to noncontrolling interests	¥	13		¥	154	¥	1,684		¥	3,298		¥	1,697		¥	3,453

F-17

Condensed Statements of Income

	Yen in millions
	Nine months ended December 31
	Financial Services					Sony without Financial Services						Consolidated
	2022 Restated			2023		2022 Restated			2023			2022 Restated			2023

Sales	¥	-		¥	-	¥	7,527,631		¥	8,454,056		¥	7,523,263		¥	8,449,647
Financial services revenue		418,507			1,097,069		-			-			410,265			1,090,155
Total sales and financial services revenue		418,507			1,097,069		7,527,631			8,454,056			7,933,528			9,539,802

Cost of sales		-			-		5,250,787			6,106,427			5,241,857			6,096,395
Selling, general and administrative		-			-		1,412,507			1,542,744			1,418,411			1,548,380
Financial services expenses		156,493			949,269		-			-			148,251			942,355
Other operating (income) expense, net		(4,290	)		331		(5,681	)		(16,144	)		(12,278	)		(15,813	)
Total costs and expenses		152,203			949,600		6,657,613			7,633,027			6,796,241			8,571,317

Share of profit (loss) of investments accounted for using the equity method		-			-		18,562			10,904			18,562			10,904

Operating income		266,304			147,469		888,580			831,933			1,155,849			979,389

Financial income (expenses), net		-			-		(2,699	)		62,828			(44,031	)		12,795

Income before income taxes		266,304			147,469		885,881			894,761			1,111,818			992,184

Income taxes		73,547			42,875		168,162			162,840			242,007			205,715

Net income		192,757			104,594		717,719			731,921			869,811			786,469

Net income of Financial Services	¥	192,523		¥	104,143	¥	-		¥	-		¥	-		¥	-

Net income of Sony without Financial Services	¥	-		¥	-	¥	712,438		¥	727,471		¥	-		¥	-

Net income attributable to Sony Group Corporation’s stockholders	¥	-		¥	-	¥	-		¥	-		¥	864,296		¥	781,568

Net income attributable to noncontrolling interests	¥	234		¥	451	¥	5,281		¥	4,450		¥	5,515		¥	4,901

F-18

Condensed Statements of Cash Flows

	Yen in millions
	Nine months ended December 31
	Financial Services						Sony without Financial Services						Consolidated
	2022 Restated			2023			2022			2023			2022 Restated			2023
Cash flows from operating activities:
Income (loss) before income taxes	¥	266,304		¥	147,469		¥	885,881		¥	894,761		¥	1,111,818		¥	992,184
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		19,583			20,926			716,059			831,104			735,642			852,030
Other operating (income) expense, net		(4,290	)		331			(5,681	)		(16,144	)		(12,278	)		(15,813	)
(Gain) loss on securities, net (other than Financial Services segment)		-			-			27,154			(31,340	)		27,154			(31,340	)
Changes in assets and liabilities:
(Increase) decrease in trade receivables and contract assets		15,421			(38,263	)		(298,206	)		(550,147	)		(276,956	)		(592,206	)
(Increase) decrease in inventories		-			-			(572,541	)		(88,517	)		(572,541	)		(88,517	)
(Increase) decrease in investments and advances in the Financial Services segment		(660,389	)		(988,372	)		-			-			(660,389	)		(988,372	)
(Increase) decrease in content assets		-			-			(477,898	)		(358,830	)		(477,898	)		(358,830	)
Increase (decrease) in trade payables		(43,868	)		7,637			115,280			241,635			65,799			252,967
Increase (decrease) in insurance contract liabilities, net of insurance contract assets		(48,342	)		789,883			-			-			(48,342	)		789,883
Increase (decrease) in deposits from customers in the banking business		194,976			419,223			-			-			194,976			419,223
Increase (decrease) in borrowings in the life insurance business and the banking business		100,670			72,995			-			-			100,670			72,995
Increase (decrease) in taxes payable other than income taxes, net		830			782			(35,742	)		(17,375	)		(34,912	)		(16,593	)
Other		(68,068	)		(69,134	)		(164,643	)		(286,665	)		(234,366	)		(355,653	)
Net cash provided by (used in) operating activities		(227,173	)		363,477			189,663			618,482			(81,623	)		931,958

Cash flows from investing activities:
Payments for property, plant and equipment and other intangible assets		(19,642	)		(13,281	)		(415,597	)		(436,772	)		(434,748	)		(450,017	)
Payments for investments and advances (other than Financial Services segment)		-			-			(185,577	)		(75,072	)		(185,577	)		(75,072	)
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment)		-			-			11,740			80,476			11,740			80,476
Other		416			(3,603	)		(251,640	)		(171,737	)		(248,938	)		(175,340	)
Net cash provided by (used in) investing activities		(19,226	)		(16,884	)		(841,074	)		(603,105	)		(857,523	)		(619,953	)

Cash flows from financing activities:
Increase (decrease) in borrowings, net		(8,514	)		(8,609	)		278,516			375,110			270,002			366,501
Dividends paid		(41,335	)		(50,037	)		(86,384	)		(98,424	)		(86,383	)		(98,424	)
Other		(3	)		(1,793	)		(84,268	)		(64,019	)		(84,271	)		(65,884	)
Net cash provided by (used in) financing activities		(49,852	)		(60,439	)		107,864			212,667			99,348			202,193

Effect of exchange rate changes on cash and cash equivalents		-			-			78,142			24,014			78,142			24,014

Net increase (decrease) in cash and cash equivalents		(296,251	)		286,154			(465,405	)		252,058			(761,656	)		538,212
Cash and cash equivalents at beginning of the fiscal year		889,140			756,493			1,160,496			724,407			2,049,636			1,480,900
Cash and cash equivalents at end of the period	¥	592,889		¥	1,042,647		¥	695,091		¥	976,465		¥	1,287,980		¥	2,019,112

F-19

Going Concern Assumption

　　Not Applicable

Accounting Policy and Other Information

(Changes in accounting policies)

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

IFRS 17 “Insurance Contracts”

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

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

F-20

(Net Income Attributable to Sony Group Corporation’s Stockholders and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)

	Yen in millions
	Three months ended December 31
	2022 Restated		2023
Net income attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation		321,521		363,918

	Thousands of shares
	Three months ended December 31
	2022		2023
Weighted-average shares outstanding for basic EPS computation		1,235,285		1,230,805
Effect of dilutive securities:
Stock options and other		3,128		3,553
Weighted-average shares for diluted EPS computation		1,238,413		1,234,358

	Yen in millions
	Nine months ended December 31
	2022 Restated		2023
Net income attributable to Sony Group Corporation’s stockholders		864,296		781,568
Adjustment amount to net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation
Zero coupon convertible bonds		51		-
Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation		864,347		781,568

	Thousands of shares
	Nine months ended December 31
	2022		2023
Weighted-average shares outstanding for basic EPS computation		1,236,176		1,232,879
Effect of dilutive securities:
Stock options and other		3,632		3,922
Zero coupon convertible bonds		2,706		-
Weighted-average shares for diluted EPS computation		1,242,514		1,236,801

F-21

(Segmentation)

　　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.

(Change in presentation)

Condensed Consolidated Statements of Cash Flows

　　Certain reclassifications of the condensed consolidated statements of cash flows for the nine months ended December 31, 2022 have been made to conform to the presentation for the nine months ended December 31, 2023.

Subsequent Events

Transfer of a portion of shares of Sony Payment Services Inc.

　　On January 31, 2024, Sony Bank Inc. (“Sony Bank”), a wholly-owned subsidiary of Sony, transferred a portion of its shares of Sony Payment Services Inc. (“Sony Payment Services”), a consolidated subsidiary of Sony Bank, to a special purpose company established by private equity funds which are managed by Blackstone Inc. and its affiliates. Upon the transfer, Sony Payment Services became an affiliate of Sony accounted for using the equity method and Sony expects to record a total of approximately 20 billion yen as operating income for the fiscal year ending March 31, 2024, reflecting both a realized gain for the shares transferred and a remeasurement gain based on the fair value of the shares Sony will continue to hold after the transfer. The amounts of assets and liabilities of Sony Payment Services to be derecognized as a result of the transfer are not material.

Commencement of Preparations for Partial Spin-off of Financial Services Business

　　On February 14, 2024, Sony Group Corporation decided to begin concrete preparations for the execution of a partial spin-off (the “Spin-off”) of Sony Financial Group Inc. (“SFGI”), its wholly-owned subsidiary, which operates the Financial Services business, and the listing of the shares of SFGI.

　　The impact of the execution of the Spin-off on Sony’s results of operations and financial positions has not been determined at this time. However, prior to the execution of the Spin-off, the Financial Services business will be presented separately as a discontinued operation in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations.” And upon the execution of the Spin-off, Sony will apply accounting for the loss of control of the Financial Services business in accordance with IFRS 10 “Consolidated Financial Statements.”

F-22

Sony (SONY) 6-KSony Group Corporation 6-K