Presentation [PDF:237KB]

Q1 FY2021 Consolidated Financial Results

(Three months ended June 30, 2021)

August 4, 2021

Sony Group Corporation

Q1 FY2021 Consolidated Results

			(Bln Yen)
	Q1 FY20	Q1 FY21	Change
Sales*	1,962.9	2,256.8	+293.9 bln yen
			（+15%）
Operating income	221.7	280.1	+58.3 bln yen
	（+26%）
Income before income taxes	268.6	283.2	+14.6 bln yen
	（+5%）
Net income attributable to	193.6	211.8	+18.2 bln yen
Sony Group Corporationʼs stockholders	（+9%）
Net income attributable to Sony Group Corporationʼs	155.27 yen	169.22 yen	+13.95 yen
stockholders per share of common stock (diluted)
Average Rate
1 US dollar	107.6 yen	109.5 yen
1 Euro	118.5 yen	131.9 yen

* "Sales" is used to mean "sales and financial services revenue" in accordance with International Financial Reporting Standards ("IFRS") (applies to all following pages).

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Q1 FY2021 Consolidated Results: Year-on-year Change

	Year-on-year		Contributing Factors
	Change		(+) Better／(-) Worse
Sales	+293.9 bln yen	・(+) Significant increases in EP&S and Music segments sales
%
	+15	On a constant currency basis*, sales increased approx. 3%
Operating	+58.3 bln yen	・(+) Significant improvement in operating results in EP&S segment
income	%	・(-)	Significant decrease in G&NS segment operating income
	+26
		・(-)	In the same quarter of the previous fiscal year, Sony did not record a tax
			expense for the use of certain temporary differences, operating loss
	+5.8 bln yen		carryforwards, and tax credit carryforwards, due to a significant portion of
Income tax		the deferred tax assets of the Japan consolidated tax filing group and the
expense	Effective tax rate		deferred tax assets for credits of the U.S. consolidated tax filing group
	staying unrecognized
	24%→25%
	・(+) In the current quarter, the amount of the income tax expense related to
			Japan controlled foreign company taxation was less than the same quarter
			of the previous fiscal year
* For further details about the impact of foreign exchange rate fluctuations on sales and operating income (loss), see Note on page 20 (applies to all following pages).	2

Adjusted Operating Income (Q1)

	Operating	Adjusted
	Operating		Adjusted Operating Income excludes the following items*
	Income
	Income
				 Gain on the sale of a portion of shares of Pledis Entertainment
Q1 FY20	221.7 bln yen	217.8 bln yen		Co., Ltd. (Music segment: +7.2 bln yen)
	 Expenses related to the Sony Global Relief Fund for COVID-19
				(Corporate and elimination: -3.3 bln yen)
				 One-time loss recorded at a subsidiary of Sony Life
Q1 FY21	280.1 bln yen	291.4 bln yen		(Financial Services segment: -16.8 bln yen)
	 Settlement gain in connection with the termination of the defined
				benefit pension plan at certain U.S. subsidiaries
				(mainly in Corporate and elimination: +5.5 bln yen)
Change	+58.3 bln yen	+73.6 bln yen
from FY20		（+34%）

* These monetary amounts are disclosed in the Quarterly Financial Statements, the Presentation Slides and the Quarterly Securities Reports for the relevant quarters.	3
Adjusted operating income is not a measure in accordance with IFRS. However, Sony believes that this disclosure may be useful information to investors.

Adjusted Income Before Income Taxes (Q1)

Income Before	Adjusted Income		Adjusted Income Before Income Taxes excludes the following items*
Income Taxes	Before Income Taxes

				 Gain on the sale of a portion of shares of Pledis Entertainment
Q1 FY20	268.6 bln yen	264.7 bln yen		Co., Ltd. (Music segment: +7.2 bln yen)
	 Expenses related to the Sony Global Relief Fund for COVID-19
				(Corporate and elimination: -3.3 bln yen)
				 One-time loss recorded at a subsidiary of Sony Life
Q1 FY21	283.2 bln yen	294.5 bln yen		(Financial Services segment: -16.8 bln yen)
	 Settlement gain in connection with the termination of the
				defined benefit pension plan at certain U.S. subsidiaries
				(mainly in Corporate and elimination: +5.5 bln yen)
Change	+14.6 bln yen	+29.8 bln yen
from FY20
	（+11%）

* These monetary amounts are disclosed in the Quarterly Financial Statements, the Presentation Slides and the Quarterly Securities Reports for the relevant quarters.

Adjusted income before income taxes is not a measure in accordance with IFRS. However, Sony believes that this disclosure may be useful information to investors.	4

Adjusted Net Income Attributable to Sony Group Corporationʼs Stockholders (Q1)

	Net Income	Adjusted Net Income
	Attributable to		Adjusted Net Income Attributable to Sony Group Corporationʼs
	Attributable to Sony
	Sony Group
	Group Corporationʼs		Stockholders excludes the following items*
	Corporationʼs
	Stockholders	Stockholders
				 Gain on the sale of a portion of shares of Pledis Entertainment
				Co., Ltd. (Music segment: +7.2 bln yen)
Q1 FY20	193.6 bln yen	190.6 bln yen		 Expenses related to the Sony Global Relief Fund for COVID-19
	(Corporate and elimination: -3.3 bln yen)
				 Tax adjustment with regard to the above two items
				(-0.9 bln yen)
				 One-time loss recorded at a subsidiary of Sony Life
				(Financial Services segment: -16.8 bln yen)
Q1 FY21	211.8 bln yen	220.4 bln yen		 Settlement gain in connection with the termination of the
	defined benefit pension plan at certain U.S. subsidiaries
				(mainly in Corporate and elimination: +5.5 bln yen)
				 Tax adjustment with regard to the above two items
				(+2.8 bln yen)
Change	+18.2 bln yen	+29.7 bln yen
from FY20		（+16%）

* These monetary amounts are disclosed in the Quarterly Financial Statements, the Presentation Slides and the Quarterly Securities Reports for the relevant quarters.

Adjusted net income attributable to Sony Group Corporationʼs stockholders is not a measure in accordance with IFRS. However, Sony believes that this disclosure may be useful information to investors.

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Adjusted Net Income Attributable to Sony Group Corporationʼs Stockholders (Q1)

FY20				(Bln Yen)
		Income Before		Effective	Net Income Attributable
		Taxes	to Sony Group
		Income Taxes	Tax Rate	Corporationʼs
					Stockholders
	Financial results	268.6	64.3	24.0％	193.6
	Adjusted items impacting effective tax rate	-	-	-	-
	Subtotal	268.6	64.3	24.0％	193.6
	Other adjusted items*	-3.9	-0.9	24.0％	-3.0
	Adjusted results	264.7	63.4	24.0％	190.6
FY21
		Income Before		Effective	Net Income Attributable
		Taxes	to Sony Group
		Income Taxes	Tax Rate	Corporationʼs
					Stockholders
	Financial results	283.2	70.1	24.8%	211.8
	Adjusted items impacting effective tax rate	―	―	―	―
	Subtotal	283.2	70.1	24.8%	211.8
	Other adjusted items*	+11.3	+2.8	24.8%	+8.5
	Adjusted results	294.5	72.9	24.8%	220.4

* See page 5 for details regarding adjusted items.

Adjusted results are not a measure in accordance with IFRS. However, Sony believes that this disclosure may be useful information to investors.

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Q1 FY2021 Results by Segment

							(Bln Yen)
				Q1 FY20	Q1 FY21	Change	FX Impact
		Game & Network Services (G&NS)	Sales	606.1	615.8	+9.7	+25.5
		Operating income	123.9	83.3	-40.6	+9.7
		Music	Sales	177.1	254.9	+77.8	+3.0
		Operating income	35.6	55.4	+19.7
		Pictures	Sales	175.1	204.7	+29.6	+3.3
		Operating income	27.0	25.4	-1.7
		Electronics Products & Solutions	Sales	361.4	576.3	+214.9	+23.6
		(EP&S)	Operating income	-8.9	71.8	+80.6	+13.2
		Imaging & Sensing Solutions (I&SS)	Sales	206.2	218.1	+11.9	+3.7
		Operating income	26.2	30.5	+4.3	-2.0
		Financial Services	Revenue	440.2	414.4	-25.9
		Operating income	36.0	24.0	-12.0
		All Other	Sales	25.3	22.0	-3.3
		Operating income	3.5	4.2	+0.6
		Corporate and elimination	Sales	-28.5	-49.3	-20.8
		Operating income	-21.7	-14.3	+7.4
		Consolidated total	Sales	1,962.9	2,256.8	+293.9
		Operating income	221.7	280.1	+58.3

Due to organizational changes as of April 1, 2021, from Q1 FY21, Sony transferred some of the businesses and functions previously included within All Other and Corporate and elimination to the EP&S segment. Sales and operating income (loss) of each segment for FY20 are presented to conform to the organizational structure for FY21 (applies to all following pages).

Sales in each business segment represents sales and revenue recorded before intersegment transactions are eliminated. Operating income in each business segment represents operating income reported before intersegment transactions are eliminated and excludes unallocated corporate expenses (applies to all following pages).

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FY2021 Consolidated Results Forecast

			(Bln Yen)
FY20	FY21	FY21	Change from
April FCT	August FCT	April FCT

Sales	8,998.7		9,700	9,700			-
Operating income	955.3		930	980		+50 bln yen
							（+5%）
Income before income taxes	998.0		905	955		+50 bln yen
Net income attributable to Sony Group							（+6%）
1,029.6		660	700		+40 bln yen
Corporationʼs stockholders	v			（+6%）
Operating Cash Flow	1,150.3		910	890		-20 bln yen
(Sony without Financial Services)
						（-2%）
Average rate				Assumption		Dividend per Share
Actual		Assumption	(Q2-Q4 FY21)		(Planned)
1 US dollar	106.1 yen		Approx.	Approx.
	107 yen	110 yen		Interim	30 yen
1 Euro	123.7 yen		Approx.	Approx.
		Year-end	Undecided
	126 yen	131 yen

Consolidated Operating Cash Flow (Sony without Financial Services) is not a measure in accordance with IFRS. However, Sony believes that this disclosure may be useful information to investors.

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FY2021 Results Forecast by Segment

								(Bln Yen)
					FY20	FY21	FY21	Change from
					April FCT	August FCT	April FCT
		Game & Network Services (G&NS)	Sales		2,656.3	2,900	2,900	-
		Operating income		341.7	325	325	-
		Music	Sales		939.9	990	1,040	+50
		Operating income		184.8	162	190	+28
		Pictures	Sales		753.0	1,140	1,120	-20
		Operating income		79.9	83	90	+7
		Electronics Products & Solutions	Sales		2,068.1	2,260	2,320	+60
		(EP&S)	Operating income	v	127.9	148	170	+22
		Imaging & Sensing Solutions (I&SS)	Sales		1,012.5	1,130	1,100	-30
		Operating income		145.9	140	140	-
		Financial Services	Revenue		1,674.0	1,400	1,400	-
		Operating income		154.8	170	153	-17
		All Other, Corporate and elimination	Operating income		-79.6	-98	-88	+10
		Consolidated total	Sales		8,998.7	9,700	9,700	-
		Operating income		955.3	930	980	+50

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