Sony Group Corp 6-K, filed Aug 7, 2024

Sony Group Corp (SONY)

6-K 2024-08-07 For: 2024-08-07

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Added on July 04, 2026

About this 6-K

Sony Group Corp filed this 6-K on August 7, 2024.

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	SONY GROUP CORPORATION (Registrant)

	By:	/s/ Hiroki Totoki
		(Signature)
	Hiroki Totoki
	President, Chief Operating Officer and
	Chief Financial Officer

August 7, 2024
Company name	: Sony Group Corporation
Stock exchange listing	: Tokyo Stock Exchange (“TSE”)
Securities code	: 6758
URL	: https://www.sony.com/en/SonyInfo/IR/
Representative	: Kenichiro Yoshida, Representative Corporate Executive Officer
Contact person	: Sadahiko Hayakawa, Senior Vice President
Telephone	: +81-3-6748-2111
Scheduled date to commence dividend payment	: -
Preparation of supplementary materials on financial results	: Yes
Holding of financial results briefing	: Yes (for investors and analysts)

Consolidated	Sales and financial services revenue		Operating income		Income before income taxes		Net income		Net income attributable to Sony Group Corporation’s stockholders
Three months ended	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%
June 30, 2024	3,011,649	1.6	279,106	10.3	316,867	14.8	235,828	8.2	231,638	6.5
June 30, 2023	2,963,652	32.9	253,042	-30.6	276,034	-21.0	217,942	-16.6	217,545	-16.7

Consolidated	Total comprehensive income		Adjusted OIBDA*		Adjusted EBITDA*		Basic earnings per share	Diluted earnings per share
Three months ended	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen	Yen
June 30, 2024	377,881	-15.2	454,682	14.8	461,256	13.5	189.90	189.43
June 30, 2023	445,459	0.5	396,122	-19.0	406,221	-18.2	176.26	175.67

For all segments excluding Financial Services*	Sales and financial services revenue		Operating income		Income before income taxes		Net income attributable to Sony Group Corporation’s stockholders		Adjusted OIBDA*		Adjusted EBITDA*
Three months ended	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%
June 30, 2024	2,567,436	12.3	249,124	25.5	286,885	5.6	210,025	-8.3	417,870	24.9	424,444	7.5
June 30, 2023	2,285,789	13.3	198,531	-12.0	271,559	8.0	229,126	13.0	334,696	-2.5	394,831	0.6

	Total assets	Total equity	Equity attributable to Sony Group Corporation’s stockholders	Ratio of equity attributable to Sony Group Corporation’s stockholders to total assets
As of	Yen in millions	Yen in millions	Yen in millions	%
June 30, 2024	34,677,809	8,148,959	7,857,452	22.7
March 31, 2024	34,107,490	7,756,105	7,587,177	22.2

	Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2024	-	40.00	-	45.00	85.00
Fiscal year ending March 31, 2025	-
Fiscal year ending March 31, 2025 (Forecast)^*1		50.00	-	10.00	-

Fiscal year ending March 31, 2025	Sales and financial services revenue		Operating income		Income before income taxes		Net income attributable to Sony Group Corporation’s stockholders		Adjusted OIBDA*		Adjusted EBITDA*
	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%	Yen in millions	%
Consolidated	12,610,000	-3.2	1,310,000	8.4	1,335,000	5.2	980,000	1.0	1,990,000	9.0	1,990,000	9.5
For all segments excluding Financial Services*	11,700,000	3.9	1,165,000	12.5	1,190,000	3.9	875,000	-2.4	1,820,000	10.7	1,820,000	7.9

(1)	Significant changes in scope of consolidation during the period		: No

(2)	Changes in accounting policies and changes in accounting estimates:
	(i)	Changes in accounting policies required by IFRS Accounting Standards	: Yes
	(ii)	Changes in accounting policies due to other reasons	: No
	(iii)	Changes in accounting estimates	: No

As of June 30, 2024	1,248,619,589	shares
As of March 31, 2024	1,261,231,889	shares

As of June 30, 2024	30,868,630	shares
As of March 31, 2024	39,783,003	shares

Three months ended June 30, 2024	1,219,769,683	shares
Three months ended June 30, 2023	1,234,242,212	shares

Condensed Quarterly Consolidated Financial Statements (Unaudited)	2

Condensed Quarterly Consolidated Statements of Financial Position	2
Condensed Quarterly Consolidated Statements of Income (Three months ended June 30)	4
Condensed Quarterly Consolidated Statements of Comprehensive Income (Three months ended June 30)	5
Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity (Three months ended June 30)	6
Condensed Quarterly Consolidated Statements of Cash Flows (Three months ended June 30)	7
Notes to Condensed Quarterly Consolidated Financial Statements	9
- Business Segment Information	9
- Going Concern Assumption	15
- Accounting Policy and Other Information	15

Overview of Operating Results	17

Cautionary Statement	17

	Yen in millions
	March 31, 2024		June 30, 2024		Change from March 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		1,907,113		1,477,098		(430,015	)
Investments and advances in the Financial Services segment		398,153		412,275		14,122
Trade and other receivables, and contract assets		2,158,196		2,080,143		(78,053	)
Inventories		1,518,644		1,692,709		174,065
Other financial assets		125,365		127,656		2,291
Other current assets		669,335		765,856		96,521
Total current assets		6,776,806		6,555,737		(221,069	)
Non-current assets:
Investments accounted for using the equity method		423,744		429,128		5,384
Investments and advances in the Financial Services segment		18,939,794		18,959,272		19,478
Property, plant and equipment		1,522,640		1,596,690		74,050
Right-of-use assets		503,395		576,710		73,315
Goodwill		1,487,100		1,583,088		95,988
Content assets		1,928,113		2,317,397		389,284
Other intangible assets		615,602		663,731		48,129
Deferred tax assets		499,550		507,971		8,421
Other financial assets		897,341		945,587		48,246
Other non-current assets		513,405		542,498		29,093
Total non-current assets		27,330,684		28,122,072		791,388
Total assets		34,107,490		34,677,809		570,319

	Yen in millions
	Three months ended June 30
	2023			2024			Change
Sales and financial services revenue:
Sales		2,284,543			2,565,361			280,818
Financial services revenue
Insurance revenue		142,750			152,912			10,162
Other financial services revenue		536,359			293,376			(242,983	)
Total financial services revenue		679,109			446,288			(232,821	)
Total sales and financial services revenue		2,963,652			3,011,649			47,997
Costs and expenses:
Cost of sales		1,624,510			1,784,389			159,879
Selling, general and administrative		474,939			543,414			68,475
Financial services expenses
Insurance service expenses		97,366			110,813			13,447
Insurance finance expenses (income)		489,352			261,480			(227,872	)
Other financial services expenses		37,825			43,961			6,136
Total financial services expenses		624,543			416,254			(208,289	)
Other operating (income) expense, net		(8,742	)		(9,820	)		(1,078	)
Total costs and expenses		2,715,250			2,734,237			18,987
Share of profit (loss) of investments accounted for using the equity method		4,640			1,694			(2,946	)
Operating income		253,042			279,106			26,064
Financial income		31,912			53,230			21,318
Financial expenses		8,920			15,469			6,549
Income before income taxes		276,034			316,867			40,833
Income taxes		58,092			81,039			22,947
Net income		217,942			235,828			17,886

Net income attributable to
Sony Group Corporation’s stockholders		217,545			231,638			14,093
Noncontrolling interests		397			4,190			3,793

(3)	Number of issued shares (common stock):

	Yen in millions
	March 31, 2024			June 30, 2024			Change from March 31, 2024
LIABILITIES
Current liabilities:
Short-term borrowings		1,812,605			1,823,419			10,814
Current portion of long-term debt		217,711			214,847			(2,864	)
Trade and other payables		2,064,905			2,252,860			187,955
Deposits from customers in the banking business		3,670,567			3,690,958			20,391
Income taxes payables		152,074			91,243			(60,831	)
Participation and residual liabilities in the Pictures segment		251,743			264,049			12,306
Other financial liabilities		116,044			130,321			14,277
Other current liabilities		1,906,396			1,899,211			(7,185	)
Total current liabilities		10,192,045			10,366,908			174,863
Non-current liabilities:
Long-term debt		2,058,117			2,134,844			76,727
Defined benefit liabilities		247,583			252,354			4,771
Deferred tax liabilities		166,424			179,817			13,393
Insurance contract liabilities		12,931,995			12,776,766			(155,229	)
Participation and residual liabilities in the Pictures segment		206,081			220,842			14,761
Other financial liabilities		386,761			415,208			28,447
Other non-current liabilities		162,379			182,111			19,732
Total non-current liabilities		16,159,340			16,161,942			2,602
Total liabilities		26,351,385			26,528,850			177,465
EQUITY
Sony Group Corporation’s stockholders’ equity:
Common stock		881,357			881,357			-
Additional paid-in capital		1,483,410			1,484,449			1,039
Retained earnings		6,002,407			6,025,362			22,955
Accumulated other comprehensive income		(376,063	)		(209,524	)		166,539
Treasury stock, at cost		(403,934	)		(324,192	)		79,742
Equity attributable to Sony Group Corporation’s stockholders		7,587,177			7,857,452			270,275
Noncontrolling interests		168,928			291,507			122,579
Total equity		7,756,105			8,148,959			392,854
Total liabilities and equity		34,107,490			34,677,809			570,319

	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							217,545									217,545			397			217,942
Other comprehensive income, net of tax										225,883						225,883			1,634			227,517
Total comprehensive income							217,545			225,883						443,428			2,031			445,459
Transfer to retained earnings							1,152			(1,152	)					-						-
Transactions with stockholders and other:
Exercise of stock acquisition rights				(1	)		(144	)					4,600			4,455						4,455
Stock-based compensation				3,127												3,127						3,127
Dividends declared							(49,380	)								(49,380	)		(1,604	)		(50,984	)
Purchase of treasury stock													(10,150	)		(10,150	)					(10,150	)
Reissuance of treasury stock				1									2			3						3
Transactions with noncontrolling interests shareholders and other				12,968												12,968			16,550			29,518
Balance at June 30, 2023		880,365		1,479,902			5,261,615			(389,839	)		(229,055	)		7,002,988			75,590			7,078,578

	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, 2024		881,357		1,483,410			6,002,407			(376,063	)		(403,934	)		7,587,177			168,928			7,756,105
Comprehensive income:
Net income							231,638									231,638			4,190			235,828
Other comprehensive income, net of tax										141,201						141,201			852			142,053
Total comprehensive income							231,638			141,201						372,839			5,042			377,881
Transfer to retained earnings							(25,338	)		25,338						-						-
Transactions with stockholders and other:
Exercise of stock acquisition rights and other				(1	)		(642	)					2,417			1,774						1,774
Stock-based compensation				5,504												5,504						5,504
Dividends declared							(54,965	)								(54,965	)		(2,076	)		(57,041	)
Purchase of treasury stock													(51,255	)		(51,255	)					(51,255	)
Reissuance of treasury stock				1									3			4						4
Cancellation of treasury stock				(839	)		(127,738	)					128,577			-						-
Transactions with noncontrolling interests shareholders and other				(3,626	)											(3,626	)		119,613			115,987
Balance at June 30, 2024		881,357		1,484,449			6,025,362			(209,524	)		(324,192	)		7,857,452			291,507			8,148,959

	Yen in millions
	Financial Services				Sony without Financial Services				Consolidated
	March 31, 2024		June 30, 2024		March 31, 2024		June 30, 2024		March 31, 2024		June 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	¥	913,815	¥	630,317	¥	993,298	¥	846,781	¥	1,907,113	¥	1,477,098
Investments and advances in the Financial Services segment		398,153		412,275		-		-		398,153		412,275
Trade and other receivables, and contract assets		127,016		148,274		2,033,170		1,934,878		2,158,196		2,080,143
Inventories		-		-		1,518,644		1,692,709		1,518,644		1,692,709
Other financial assets		57,254		51,275		68,111		76,382		125,365		127,656
Other current assets		50,487		64,444		625,539		709,232		669,335		765,856
Total current assets		1,546,725		1,306,585		5,238,762		5,259,982		6,776,806		6,555,737
Non-current assets:
Investments accounted for using the equity method		4,905		4,943		418,839		424,185		423,744		429,128
Investments and advances in the Financial Services segment		18,939,794		18,959,272		-		-		18,939,794		18,959,272
Investments in Financial Services, at cost		-		-		550,483		550,483		-		-
Property, plant and equipment		14,162		13,898		1,508,151		1,582,466		1,522,640		1,596,690
Right-of-use assets		76,288		78,259		428,224		499,555		503,395		576,710
Goodwill and intangible assets, including content assets		77,323		76,924		3,953,492		4,487,292		4,030,815		4,564,216
Deferred tax assets		-		-		520,613		511,748		499,550		507,971
Other financial assets		52,882		53,981		848,599		895,754		897,341		945,587
Other non-current assets		165,049		165,158		421,258		450,075		513,405		542,498
Total non-current assets		19,330,403		19,352,435		8,649,659		9,401,558		27,330,684		28,122,072
Total assets	¥	20,877,128	¥	20,659,020	¥	13,888,421	¥	14,661,540	¥	34,107,490	¥	34,677,809

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	1,802,337	¥	1,774,775	¥	227,979	¥	263,491	¥	2,030,316	¥	2,038,266
Trade and other payables		61,153		78,329		2,005,112		2,177,276		2,064,905		2,252,860
Deposits from customers in the banking business		3,670,567		3,690,958		-		-		3,670,567		3,690,958
Income taxes payables		10,050		2,973		142,024		88,270		152,074		91,243
Participation and residual liabilities in the Pictures segment		-		-		251,743		264,049		251,743		264,049
Other financial liabilities		77,523		79,926		38,522		50,395		116,044		130,321
Other current liabilities		209,555		216,797		1,704,158		1,690,500		1,906,396		1,899,211
Total current liabilities		5,831,185		5,843,758		4,369,538		4,533,981		10,192,045		10,366,908
Non-current liabilities:
Long-term debt		703,106		691,697		1,355,011		1,443,147		2,058,117		2,134,844
Defined benefit liabilities		39,284		39,221		208,299		213,133		247,583		252,354
Deferred tax liabilities		36,368		18,599		165,877		179,880		166,424		179,817
Insurance contract liabilities		12,931,995		12,776,766		-		-		12,931,995		12,776,766
Participation and residual liabilities in the Pictures segment		-		-		206,081		220,842		206,081		220,842
Other financial liabilities		214,414		228,456		175,263		189,688		386,761		415,208
Other non-current liabilities		7,607		7,557		176,767		196,356		162,379		182,111
Total non-current liabilities		13,932,774		13,762,296		2,287,298		2,443,046		16,159,340		16,161,942
Total liabilities		19,763,959		19,606,054		6,656,836		6,977,027		26,351,385		26,528,850
Equity:
Stockholders’ equity of Financial Services		1,113,169		1,052,966		-		-		-		-
Stockholders’ equity of Sony without Financial Services		-		-		7,062,657		7,393,006		-		-
Sony Group Corporation’s stockholders’ equity		-		-		-		-		7,587,177		7,857,452
Noncontrolling interests		-		-		168,928		291,507		168,928		291,507
Total equity		1,113,169		1,052,966		7,231,585		7,684,513		7,756,105		8,148,959
Total liabilities and equity	¥	20,877,128	¥	20,659,020	¥	13,888,421	¥	14,661,540	¥	34,107,490	¥	34,677,809

	Thousands of shares
	Three months ended June 30
	2023		2024
Weighted-average shares outstanding for basic EPS computation		1,234,242		1,219,770
Effect of dilutive securities:
Stock options		3,909		2,787
Restricted stock units		212		249
Weighted-average shares for diluted EPS computation		1,238,363		1,222,806

(i) Total number of issued shares before stock split:	1,248,619,589 shares
(ii) Number of shares to be increased by stock split:	4,994,478,356 shares
(iii) Total number of issued shares following stock split:	6,243,097,945 shares
(iv) Total number of authorized shares following stock split:	18,000,000,000 shares

(i) Public notice of record date:	September 13, 2024
(ii) Record date:	September 30, 2024
(iii) Effective date:	October 1, 2024

(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 equity and bond 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.