REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on Which Registered | ||
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* | American Depositary Shares evidenced by American Depositary Receipts. Each American Depositary Share represents one share of Common Stock. |
** | No par value per share. ot for trading, but only in connection with the listing of American Depositary Shares pursuant to the requirements of the New York Stock Exchange. |
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Outstanding as of | ||||||||
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March 31, 2022 |
|
March 31, 2022 | ||||||
Title of Class |
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(Tokyo Time) |
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(New York Time) | |||||
Common Stock |
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| ||||||
American Depositary Shares |
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☑ |
☐ Accelerated filer | ☐ Non-accelerated filer |
US GAAP ☐ |
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Other ☐ |
Item 17 ☐ |
Item 18 ☐ |
Yes ☐ |
No |
(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. |
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111 |
Item 1. |
Identity of Directors, Senior Management and Advisers |
Item 2. |
Offer Statistics and Expected Timetable |
Item 3. |
Key Information |
A. |
[Reserved] |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2021 | 2022 | |||||||
Consolidated Statements of Income data: |
||||||||
Sales and financial services revenue |
8,998,661 | 9,921,513 | ||||||
Operating income |
955,255 | 1,202,339 | ||||||
Income before income taxes |
997,965 | 1,117,503 | ||||||
Net income attributable to Sony Group Corporation’s stockholders |
1,029,610 | 882,178 | ||||||
Comprehensive income attributable to Sony Group Corporation’s stockholders |
1,118,628 | 623,678 | ||||||
Consolidated Statements of Financial Position data: |
||||||||
Sony Group Corporation’s stockholders’ equity |
6,680,343 | 7,144,471 | ||||||
Common stock |
880,214 | 880,365 | ||||||
Net assets |
6,724,339 | 7,197,249 | ||||||
Total assets |
27,507,843 | 30,480,967 | ||||||
Number of shares issued at fiscal year-end (thousands of shares of common stock) |
1,261,059 | 1,261,082 | ||||||
Ratio of stockholders’ equity to total assets (%) |
24.3 | 23.4 | ||||||
Data per share of Common Stock data: |
||||||||
Sony Group Corporation’s stockholders’ equity per share of common stock |
5,390.73 | 5,775.63 | ||||||
Net income attributable to Sony Group Corporation’s stockholders (Yen) |
||||||||
— Basic |
836.75 | 711.84 | ||||||
— Diluted |
823.77 | 705.16 | ||||||
Other data: |
||||||||
Cash dividends declared — Interim |
25.00 | 30.00 | ||||||
(23.91 cents | ) | (26.55 cents | ) | |||||
Cash dividends declared — Fiscal year-end |
30.00 | 35.00 | ||||||
(27.29 cents | ) | (26.72 cents | ) |
B. |
Capitalization and Indebtedness |
C. |
Reasons for the Offer and Use of Proceeds |
D. |
Risk Factors |
Item 4. |
Information on the Company |
A. |
History and Development of the Company |
B. |
Business Overview |
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in millions) |
||||||||
Japan |
2,965,936 | 2,764,321 |
||||||
United States |
2,147,686 | 2,766,021 |
||||||
Europe |
1,817,854 | 1,870,091 |
||||||
China |
762,766 | 771,006 |
||||||
Asia-Pacific |
861,623 | 1,149,261 |
||||||
Other Areas |
442,796 | 600,813 |
||||||
|
|
|
|
|||||
Total |
8,998,661 | 9,921,513 |
||||||
|
|
|
|
• | greater financial resources and financial strength ratings; |
• | greater brand awareness; |
• | more extensive marketing and sales networks, including through tie-ups with other types of financial institutions; |
• | more competitive pricing; |
• | larger customer bases; and |
• | a wider range of products and services. |
• | Sony’s representative office in Tehran, Iran, which was established in 1992, has been closed and has been under liquidation processes since before the beginning of the fiscal year ended March 31, 2014. In the course of liquidation, Sony engages in certain incidental transactions (for example, permits, taxes, and similar matters incidental to the wind-down of the office in Iran) with Iranian government-owned entities. No material revenues or profits are associated with these transactions with the Iranian government-owned entities. |
C. |
Organizational Structure |
Name of company |
Country of incorporation/residence |
(As of March 31, 2022) Percentage owned |
||||
Sony Interactive Entertainment Inc. |
Japan |
|
100.0 |
| ||
Sony Music Entertainment (Japan) Inc. |
Japan | 100.0 | ||||
Sony Corporation |
Japan | 100.0 | ||||
Sony Global Manufacturing & Operations Corporation |
Japan | 100.0 | ||||
Sony Semiconductor Solutions Corporation |
Japan | 100.0 | ||||
Sony Semiconductor Manufacturing Corporation |
Japan | 100.0 | ||||
Sony Semiconductor Energy Management Corporation |
Japan | 100.0 | ||||
Sony Network Communications Inc. |
Japan | 100.0 | ||||
Sony Marketing Inc. |
Japan | 100.0 | ||||
Sony Storage Media Solutions Corporation |
Japan | 100.0 | ||||
Sony Global Solutions Inc. |
Japan | 100.0 | ||||
Sony Financial Group Inc. |
Japan | 100.0 | ||||
Sony Life Insurance Co., Ltd. |
Japan | 100.0 | ||||
Sony Bank Inc. |
Japan | 100.0 | ||||
Sony Assurance Inc. |
Japan | 100.0 | ||||
Sony Corporation of America |
U.S.A. | 100.0 | ||||
Sony Interactive Entertainment LLC |
U.S.A. | 100.0 | ||||
Sony Music Entertainment |
U.S.A. | 100.0 | ||||
Sony Music Publishing LLC |
U.S.A. | 100.0 | ||||
Sony Pictures Entertainment Inc. |
U.S.A. | 100.0 | ||||
CPT Holdings, Inc. |
U.S.A. | 100.0 | ||||
Sony Electronics Inc. |
U.S.A. | 100.0 | ||||
Sony Europe B.V. |
U.K. | 100.0 | ||||
Sony Interactive Entertainment Europe Ltd. |
U.K. | 100.0 | ||||
Sony Global Treasury Services Plc |
U.K. | 100.0 | ||||
Sony Overseas Holding B.V. |
Netherlands | 100.0 | ||||
Sony (China) Limited |
China | 100.0 | ||||
Sony EMCS (Malaysia) Sdn. Bhd. |
Malaysia | 100.0 | ||||
Sony Electronics (Singapore) Pte. Ltd. |
Singapore | 100.0 |
D. |
Property, Plant and Equipment |
Location |
Approximate floor space |
Principal products produced | ||||
(square feet) |
||||||
In Japan: |
||||||
Nagasaki (Sony Semiconductor Manufacturing Corporation — Nagasaki TEC) |
3,077,000 | CMOS Image Sensors | ||||
Kumamoto (Sony Semiconductor Manufacturing Corporation — Kumamoto TEC) |
2,293,000 | CMOS & CCD Image Sensors, Microdisplay | ||||
Kagoshima (Sony Semiconductor Manufacturing Corporation — Kagoshima TEC) |
1,789,000 | Analog LSI | ||||
Oita (Sony Semiconductor Manufacturing Corporation — Oita TEC) |
1,037,000 | CMOS Image Sensors (Wafer Process) | ||||
Kohda, Aichi (Sony Global Manufacturing & Operations Corporation — Tokai TEC — Kohda Site) |
903,000 | Digital Still Cameras, Interchangeable-lens Cameras, Lenses for Interchangeable-lens Cameras, Lenses, Lens Blocks, Audio Devices, aibo | ||||
Inazawa, Aichi (Sony Global Manufacturing & Operations Corporation — Tokai TEC — Inazawa Site) |
842,000 | Surface Mounted Boards, TVs | ||||
Tsuruoka, Yamagata (Sony Semiconductor Manufacturing Corporation — Yamagata TEC) |
698,000 | CMOS Image Sensors (Wafer Process) | ||||
Kosai, Shizuoka (Sony Global Manufacturing & Operations Corporation — Tokai TEC — Kosai Site) |
576,000 | Broadcasting/Professional Equipment (Cameras/Editing Systems), Projectors, Professional-use Microphones, Professional-use Monitors, Medical Peripheral Equipment, Flow Cytometers, Airpeak (Drone) | ||||
Kisarazu, Chiba (Sony Global Manufacturing & Operations Corporation — Kisarazu TEC) |
541,000 | PlayStation ® , FeliCa IC Cards and Related Devices, Audio Devices | ||||
Outside of Japan: |
||||||
Bangi, Malaysia (Sony EMCS (Malaysia) Sdn. Bhd.) |
1,183,000 | TVs, TV Components, Headphones, Home Audio, Blu-ray Disc ™ Players, Blu-ray Disc™ Recorders | ||||
Huizhou, China (Sony Precision Devices (Huizhou) Co., Ltd.) |
1,010,000 | Optical Pickups | ||||
Wuxi, China (Sony Digital Products (Wuxi) Co., Ltd.) |
798,000 | Digital Still Cameras, Lens Assembly, Interchangeable-lens Cameras, Lenses for Interchangeable-lens Cameras | ||||
Shanghai, China (Shanghai Souguang Visual Products Co., Ltd.) |
541,000 | TVs, Projectors, Camcorders, Industrial Cameras | ||||
Bangkadi, Thailand (Sony Device Technology (Thailand) Co., Ltd.) |
544,000 | Image Sensor Assembly |
Item 4A. |
Unresolved Staff Comments |
Item 5. |
Operating and Financial Review and Prospects |
A. |
Operating Results |
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in billions) |
||||||||
Sales and financial services revenue |
8,998.7 | 9,921.5 |
||||||
Operating income |
955.3 | 1,202.3 |
||||||
Income before income taxes |
998.0 | 1,117.5 |
||||||
Net income attributable to Sony Group Corporation’s stockholders |
1,029.6 | 882.2 |
• | Gain from the transfer of certain operations of Game Show Network, LLC: 70.0 billion yen (Pictures segment) |
• | Gain on the sale of a portion of shares of Pledis Entertainment Co., Ltd. (“Pledis”): 7.2 billion yen (Music segment) |
• | Gain recorded in connection with a business transfer: 5.9 billion yen (Music segment) |
• | An impairment loss against non-current assets in the nursing care business: 7.4 billion yen (Financial Services segment) |
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in millions) |
||||||||
Sales to external customers by product category |
||||||||
Digital Software and Add-on Content |
1,454,654 | 1,424,459 |
||||||
Network Services |
382,950 | 409,355 |
||||||
Hardware & Others |
767,109 | 840,542 |
||||||
|
|
|
|
|||||
Sales to external customers |
2,604,713 | 2,674,356 |
||||||
Intersegment sales |
51,565 | 65,407 |
||||||
|
|
|
|
|||||
G&NS segment total sales |
2,656,278 | 2,739,763 |
||||||
|
|
|
|
|||||
G&NS segment operating income |
341,718 | 346,089 |
||||||
|
|
|
|
|||||
(Units in millions) |
||||||||
Major product unit sales |
||||||||
PS4 ™ hardware |
5.7 | 1.0 |
||||||
PS5 ™ hardware |
7.8 | 11.5 |
||||||
|
|
|
|
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in millions) |
||||||||
Sales to external customers by product category |
||||||||
Recorded Music — Streaming |
337,100 | 462,368 |
||||||
Recorded Music — Others |
179,167 | 206,412 |
||||||
Music Publishing |
156,862 | 200,334 |
||||||
Visual Media & Platform |
254,121 | 231,418 |
||||||
|
|
|
|
|||||
Sales to external customers |
927,250 | 1,100,532 |
||||||
Intersegment sales |
12,617 | 16,417 |
||||||
|
|
|
|
|||||
Music segment total sales |
939,867 | 1,116,949 |
||||||
|
|
|
|
|||||
Music segment operating income |
184,786 | 210,933 |
||||||
|
|
|
|
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in millions) |
||||||||
Sales to external customers by product category |
||||||||
Motion Pictures |
265,301 | 518,840 |
||||||
Television Productions |
267,123 | 419,494 |
||||||
Media Networks |
219,376 | 298,065 |
||||||
|
|
|
|
|||||
Sales to external customers |
751,800 | 1,236,399 |
||||||
Intersegment sales |
1,187 | 2,512 |
||||||
|
|
|
|
|||||
Pictures segment total sales |
752,987 | 1,238,911 |
||||||
|
|
|
|
|||||
Pictures segment operating income |
79,851 | 217,393 |
||||||
|
|
|
|
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in millions) |
||||||||
Sales to external customers by product category |
||||||||
TVs |
709,007 | 858,837 |
||||||
Audio & Video |
313,975 | 326,704 |
||||||
Still and Video Cameras |
338,694 | 414,898 |
||||||
Mobile Communications |
358,580 | 365,864 |
||||||
Other |
296,631 | 331,583 |
||||||
|
|
|
|
|||||
Sales to external customers |
2,016,887 | 2,297,886 |
||||||
Intersegment sales |
51,200 | 41,300 |
||||||
|
|
|
|
|||||
EP&S segment total sales |
2,068,087 | 2,339,186 |
||||||
|
|
|
|
|||||
EP&S segment operating income |
127,859 | 212,942 |
||||||
|
|
|
|
|||||
(Units in millions) |
||||||||
Major product unit sales |
||||||||
TVs |
9.3 | 8.5 |
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in millions) |
||||||||
Sales to external customers |
937,859 | 992,200 |
||||||
Intersegment sales |
74,638 | 84,224 |
||||||
|
|
|
|
|||||
I&SS segment total sales |
1,012,497 | 1,076,424 |
||||||
|
|
|
|
|||||
I&SS segment operating income |
145,884 | 155,597 |
||||||
|
|
|
|
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in millions) |
||||||||
Financial services revenue |
1,674,002 | 1,533,829 |
||||||
|
|
|
|
|||||
Financial Services segment operating income |
154,765 | 150,111 |
Fiscal year ended March 31 |
||||||||
Financial Services segment |
2021 | 2022 |
||||||
(Yen in millions) |
||||||||
Financial services revenue |
1,674,002 | 1,533,829 |
||||||
Financial services expenses |
1,510,685 | 1,383,054 |
||||||
Other operating (income) expense, net |
8,552 | 664 |
||||||
|
|
|
|
|||||
1,519,237 | 1,383,718 |
|||||||
|
|
|
|
|||||
Share of profit (loss) of investments accounted for using the equity method |
— | — |
||||||
|
|
|
|
|||||
Operating income |
154,765 | 150,111 |
||||||
Financial income (expenses), net |
— | — |
||||||
|
|
|
|
|||||
Income before income taxes |
154,765 | 150,111 |
||||||
Income taxes |
42,939 | 45,402 |
||||||
|
|
|
|
|||||
Net income |
111,826 | 104,709 |
||||||
Net income of Financial Services |
111,133 | 104,216 |
||||||
|
|
|
|
|||||
Net income attributable to noncontrolling interests |
693 | 493 |
||||||
|
|
|
|
|||||
Fiscal year ended March 31 |
||||||||
Sony without Financial Services segment |
2021 | 2022 |
||||||
(Yen in millions) |
||||||||
Sales |
7,339,940 | 8,402,217 |
||||||
Costs of sales |
5,076,858 | 5,856,925 |
||||||
Selling, general and administrative |
1,468,672 | 1,582,850 |
||||||
Other operating (income) expense, net |
5,698 | (66,158 |
) | |||||
|
|
|
|
|||||
6,551,228 | 7,373,617 |
|||||||
Share of profit (loss) of investments accounted for using the equity method |
11,551 | 23,646 |
||||||
|
|
|
|
|||||
Operating income |
800,263 | 1,052,246 |
||||||
Financial income (expenses), net |
62,523 | (45,698 |
) | |||||
|
|
|
|
|||||
Income before income taxes |
862,786 | 1,006,548 |
||||||
Income taxes |
(89,162 | ) | 183,689 |
|||||
|
|
|
|
|||||
Net income |
951,948 | 822,859 |
||||||
Net income of Sony without Financial Services |
949,824 | 817,123 |
||||||
|
|
|
|
|||||
Net income attributable to noncontrolling interests |
2,124 | 5,736 |
||||||
|
|
|
|
|||||
Fiscal year ended March 31 |
||||||||
Consolidated |
2021 | 2022 |
||||||
(Yen in millions) |
||||||||
Sales |
7,333,670 | 8,396,702 |
||||||
Financial services revenue |
1,664,991 | 1,524,811 |
||||||
|
|
|
|
|||||
Total sales and financial services revenue |
8,998,661 | 9,921,513 |
||||||
Costs of sales |
5,065,879 | 5,845,804 |
||||||
Selling, general and administrative |
1,473,154 | 1,588,473 |
||||||
Financial services expenses |
1,501,674 | 1,374,037 |
||||||
Other operating (income) expenses, net |
14,250 | (65,494 |
) | |||||
|
|
|
|
|||||
8,054,957 | 8,742,820 |
|||||||
Share of profit (loss) of investments accounted for using the equity method |
11,551 | 23,646 |
||||||
|
|
|
|
|||||
Operating income |
955,255 | 1,202,339 |
||||||
Financial income (expenses), net |
42,710 | (84,836 |
) | |||||
|
|
|
|
|||||
Income before income taxes |
997,965 | 1,117,503 |
||||||
Income taxes |
(45,931 | ) | 229,097 |
|||||
|
|
|
|
|||||
Net income |
1,043,896 | 888,406 |
||||||
|
|
|
|
|||||
Net income attributable to Sony Group Corporation’s Stockholders |
1,029,610 | 882,178 |
||||||
|
|
|
|
|||||
Net income attributable to noncontrolling interests |
14,286 | 6,228 |
||||||
|
|
|
|
Fiscal year ended March 31 |
Impact of changes in foreign exchange rates |
|||||||||||||
2021 | 2022 |
2021 to 2022 |
||||||||||||
(Yen in billions) |
||||||||||||||
G&NS |
Sales |
2,656.3 | 2,739.8 |
+124.5 |
||||||||||
Operating income |
341.7 | 346.1 |
+15.7 |
|||||||||||
EP&S |
Sales |
2,068.1 | 2,339.2 |
+103.8 |
||||||||||
Operating income |
127.9 | 212.9 |
+27.2 |
|||||||||||
I&SS |
Sales |
1,012.5 | 1,076.4 |
+55.5 |
||||||||||
Operating income |
145.9 | 155.6 |
+18.5 |
Yen in millions |
||||||||||||||||||||||||||||||||||||
Financial Services |
Sony without Financial Services |
Consolidated |
||||||||||||||||||||||||||||||||||
April 1, 2020 |
March 31, 2021 |
March 31, 2022 |
April 1, 2020 |
March 31, 2021 |
March 31, 2022 |
April 1, 2020 |
March 31, 2021 |
March 31, 2022 |
||||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||||||||||
Current assets: |
||||||||||||||||||||||||||||||||||||
Cash and cash equivalents *1 |
¥ | 550,039 | ¥ | 497,218 | ¥ |
889,140 |
¥ | 962,484 | ¥ | 1,289,764 | ¥ |
1,160,496 |
¥ | 1,512,523 | ¥ | 1,786,982 | ¥ |
2,049,636 |
||||||||||||||||||
Investments and advances in the Financial Services segment *2 |
327,092 | 411,982 | 360,673 |
— | — | — |
327,092 | 411,982 | 360,673 |
|||||||||||||||||||||||||||
Trade and other receivables, and contract assets |
115,592 | 119,791 | 169,929 |
1,086,457 | 1,261,321 | 1,478,620 |
1,194,334 | 1,365,493 | 1,628,521 |
|||||||||||||||||||||||||||
Inventories |
— | — | — |
559,779 | 636,668 | 874,007 |
559,779 | 636,668 | 874,007 |
|||||||||||||||||||||||||||
Other financial assets |
79,721 | 73,349 | 81,174 |
55,762 | 44,498 | 68,124 |
135,482 | 117,682 | 149,301 |
|||||||||||||||||||||||||||
Other current assets |
51,765 | 51,147 | 72,441 |
390,915 | 357,582 | 450,953 |
441,974 | 396,210 | 473,070 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total current assets |
1,124,209 | 1,153,487 | 1,573,357 |
3,055,397 | 3,589,833 | 4,032,200 |
4,171,184 | 4,715,017 | 5,535,208 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Non-current assets: |
||||||||||||||||||||||||||||||||||||
Investments accounted for using the equity method |
— | — | — |
204,291 | 225,086 | 268,513 |
204,291 | 225,086 | 268,513 |
|||||||||||||||||||||||||||
Investments and advances in the Financial Services segment *2 |
16,352,285 | 17,296,546 | 18,445,088 |
— | — | — |
16,352,285 | 17,296,546 | 18,445,088 |
|||||||||||||||||||||||||||
Investments in Financial Services, at cost |
— | — | — |
153,968 | 550,483 | 550,483 |
— | — | — |
|||||||||||||||||||||||||||
Property, plant and equipment |
18,256 | 19,260 | 18,010 |
899,185 | 971,336 | 1,095,241 |
917,198 | 990,541 | 1,113,213 |
|||||||||||||||||||||||||||
Right-of-use |
57,892 | 65,775 | 73,774 |
315,431 | 292,262 | 339,658 |
373,282 | 358,034 | 413,430 |
|||||||||||||||||||||||||||
Goodwill and intangible assets, including content assets |
62,660 | 66,133 | 72,578 |
1,998,413 | 2,113,578 | 2,672,466 |
2,061,073 | 2,179,711 | 2,745,044 |
|||||||||||||||||||||||||||
Deferred insurance acquisition costs |
187,904 | 623,986 | 676,526 |
— | — | — |
187,904 | 623,986 | 676,526 |
|||||||||||||||||||||||||||
Deferred tax assets |
8,129 | — | — |
202,217 | 309,341 | 332,330 |
210,333 | 215,669 | 298,589 |
|||||||||||||||||||||||||||
Other financial assets |
34,319 | 28,043 | 37,037 |
291,373 | 671,683 | 663,233 |
321,721 | 695,764 | 696,306 |
|||||||||||||||||||||||||||
Other non-current assets |
87,933 | 86,287 | 77,657 |
155,643 | 195,713 | 284,834 |
167,795 | 207,489 | 289,050 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total non-current assets |
16,809,378 | 18,186,030 | 19,400,670 |
4,220,521 | 5,329,482 | 6,206,758 |
20,795,882 | 22,792,826 | 24,945,759 |
|||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Total assets |
¥ | 17,933,587 | ¥ | 19,339,517 | ¥ |
20,974,027 |
¥ | 7,275,918 | ¥ | 8,919,315 | ¥ |
10,238,958 |
¥ | 24,967,066 | ¥ | 27,507,843 | ¥ |
30,480,967 |
||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||||||||||||||
Current liabilities: |
||||||||||||||||||||||||||||||||||||
Short-term borrowings *3 |
¥ | 768,100 | ¥ | 1,160,896 | ¥ |
1,964,776 |
¥ | 154,884 | ¥ | 246,257 | ¥ |
183,187 |
¥ | 922,968 | ¥ | 1,407,153 | ¥ |
2,147,962 |
||||||||||||||||||
Trade and other payables |
43,975 | 80,189 | 118,921 |
1,273,946 | 1,531,502 | 1,744,011 |
1,310,536 | 1,596,563 | 1,843,242 |
|||||||||||||||||||||||||||
Deposits from customers in the banking business |
2,347,387 | 2,682,156 | 2,886,361 |
— | — | — |
2,347,387 | 2,682,156 | 2,886,361 |
|||||||||||||||||||||||||||
Income taxes payables |
22,509 | 5,407 | 4,444 |
62,837 | 79,024 | 101,648 |
85,346 | 84,431 | 106,092 |
|||||||||||||||||||||||||||
Participation and residual liabilities in the Pictures segment |
— | — | — |
163,007 | 161,433 | 190,162 |
163,007 | 161,433 | 190,162 |
|||||||||||||||||||||||||||
Other financial liabilities |
44,668 | 29,106 | 68,793 |
11,484 | 25,235 | 29,050 |
56,152 | 54,341 | 97,843 |
|||||||||||||||||||||||||||
Other current liabilities |
179,652 | 192,728 | 242,937 |
1,085,330 | 1,187,975 | 1,296,205 |
1,263,944 | 1,367,527 | 1,488,488 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total current liabilities |
3,406,291 | 4,150,482 | 5,286,232 |
2,751,488 | 3,231,426 | 3,544,263 |
6,149,340 | 7,353,604 | 8,760,150 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Non-current liabilities: |
||||||||||||||||||||||||||||||||||||
Long-term debt |
276,409 | 361,106 | 470,498 |
662,644 | 692,531 | 733,148 |
939,030 | 1,053,636 | 1,203,646 |
|||||||||||||||||||||||||||
Defined benefit liabilities |
34,856 | 35,293 | 37,167 |
294,765 | 231,929 | 217,381 |
329,621 | 267,222 | 254,548 |
|||||||||||||||||||||||||||
Deferred tax liabilities |
879,683 | 802,830 | 634,576 |
176,839 | 122,489 | 110,715 |
1,041,156 | 816,587 | 696,492 |
|||||||||||||||||||||||||||
Future insurance policy benefits and other *4 |
6,519,577 | 6,614,585 | 7,039,034 |
— | — | — |
6,519,577 | 6,614,585 | 7,039,034 |
|||||||||||||||||||||||||||
Policyholders’ account in the life insurance business |
3,640,010 | 4,328,894 | 4,791,295 |
— | — | — |
3,640,010 | 4,328,894 | 4,791,295 |
|||||||||||||||||||||||||||
Participation and residual liabilities in the Pictures segment |
— | — | — |
119,702 | 116,537 | 220,113 |
119,702 | 116,537 | 220,113 |
|||||||||||||||||||||||||||
Other financial liabilities |
115,949 | 109,537 | 128,208 |
33,399 | 32,446 | 86,391 |
146,834 | 139,417 | 211,959 |
|||||||||||||||||||||||||||
Other non-current liabilities |
4,217 | 5,309 | 5,864 |
106,693 | 109,808 | 121,558 |
87,320 | 93,022 | 106,481 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total non-current liabilities |
11,470,701 | 12,257,554 | 13,106,642 |
1,394,042 | 1,305,740 | 1,489,306 |
12,823,250 | 13,429,900 | 14,523,568 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total liabilities |
14,876,992 | 16,408,036 | 18,392,874 |
4,145,530 | 4,537,166 | 5,033,569 |
18,972,590 | 20,783,504 | 23,283,718 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Equity: |
||||||||||||||||||||||||||||||||||||
Stockholders’ equity of Financial Services |
3,054,361 | 2,928,525 | 2,577,705 |
— | — | — |
— | — | — |
|||||||||||||||||||||||||||
Stockholders’ equity of Sony without Financial Services |
— | — | — |
3,084,820 | 4,341,109 | 5,156,059 |
— | — | — |
|||||||||||||||||||||||||||
Sony Group Corporation’s stockholders’ equity |
— | — | — |
— | — | — |
4,874,438 | 6,680,343 | 7,144,471 |
|||||||||||||||||||||||||||
Noncontrolling interests |
2,234 | 2,956 | 3,448 |
45,568 | 41,040 | 49,330 |
1,120,038 | 43,996 | 52,778 |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total equity |
3,056,595 | 2,931,481 | 2,581,153 |
3,130,388 | 4,382,149 | 5,205,389 |
5,994,476 | 6,724,339 | 7,197,249 |
|||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||
Total liabilities and equity |
¥ | 17,933,587 | ¥ | 19,339,517 | ¥ |
20,974,027 |
¥ | 7,275,918 | ¥ | 8,919,315 | ¥ |
10,238,958 |
¥ | 24,967,066 | ¥ | 27,507,843 | ¥ |
30,480,967 |
||||||||||||||||||
|
|
|
|
|
Yen in millions |
||||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Fiscal year ended March 31 |
||||||||||||||||||||||||
Financial Services | Sony without Financial Services |
Consolidated | ||||||||||||||||||||||
2021 | 2022 |
2021 | 2022 |
2021 | 2022 |
|||||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||||||
Income (loss) before income taxes |
154,765 | 150,111 |
862,786 | 1,006,548 |
997,965 | 1,117,503 |
||||||||||||||||||
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 |
23,860 | 24,932 |
663,513 | 810,301 |
687,373 | 835,233 |
||||||||||||||||||
Amortization of deferred insurance acquisition costs |
44,738 | 69,237 |
— | — |
44,738 | 69,237 |
||||||||||||||||||
Other operating (income) expense, net |
8,552 | 664 |
5,698 | (66,158 |
) |
14,250 | (65,494 |
) | ||||||||||||||||
(Gain) loss on securities, net (other than Financial Services segment) |
— | — |
(62,704 | ) | 60,402 |
(62,704 | ) | 60,402 |
||||||||||||||||
Change in future insurance policy benefits and other |
358,666 | 458,880 |
— | — |
358,666 | 458,880 |
||||||||||||||||||
Change in policyholders’ account in the life insurance business, less cash impact |
558,539 | 238,309 |
— | — |
558,539 | 238,309 |
||||||||||||||||||
Net cash impact of policyholders’ account in the life insurance business |
134,299 | 227,262 |
— | — |
134,299 | 227,262 |
||||||||||||||||||
Changes in assets and liabilities: |
||||||||||||||||||||||||
(Increase) decrease in trade receivables and contract assets |
(4,597 | ) | (53,819 |
) |
(141,064 | ) | (121,684 |
) |
(137,939 | ) | (171,094 |
) | ||||||||||||
(Increase) decrease in inventories |
— | — |
(56,509 | ) | (194,624 |
) |
(56,509 | ) | (194,624 |
) | ||||||||||||||
(Increase) decrease in investments and advances in the Financial Services segment |
(1,901,928 | ) | (1,529,665 |
) |
— | — |
(1,901,928 | ) | (1,529,665 |
) | ||||||||||||||
(Increase) decrease in content assets |
— | — |
(325,664 | ) | (489,617 |
) |
(325,664 | ) | (489,617 |
) | ||||||||||||||
(Increase) decrease in deferred insurance acquisition costs |
(98,122 | ) | (117,337 |
) |
— | — |
(98,122 | ) | (117,337 |
) | ||||||||||||||
Increase (decrease) in trade payables |
37,044 | 37,885 |
258,994 | 93,660 |
288,854 | 126,989 |
||||||||||||||||||
Increase (decrease) in deposits from customers in the banking business |
333,075 | 230,236 |
— | — |
333,075 | 230,236 |
||||||||||||||||||
Increase (decrease) in borrowings in the life insurance business and the banking business |
462,751 | 905,139 |
— | — |
462,751 | 905,139 |
||||||||||||||||||
Other |
(101,728 | ) | (182,124 |
) |
(54,785 | ) | (285,560 |
) |
(157,427 | ) | (467,716 |
) | ||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Net cash provided by (used in) operating activities |
9,914 | 459,710 |
1,150,265 | 813,268 |
1,140,217 | 1,233,643 |
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||||||
Payments for property, plant and equipment and other intangible assets |
(19,368 | ) | (20,562 |
) |
(458,700 | ) | (420,542 |
) |
(477,931 | ) | (441,096 |
) | ||||||||||||
Payments for investments and advances (other than Financial Services segment) |
— | — |
(103,351 | ) | (91,082 |
) |
(103,351 | ) | (91,082 |
) | ||||||||||||||
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment) |
— | — |
20,352 | 16,081 |
20,352 | 16,081 |
||||||||||||||||||
Other |
(2,514 | ) | 2,914 |
(466 | ) | (215,597 |
) |
(2,980 | ) | (212,683 |
) | |||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Net cash provided by (used in) investing activities |
(21,882 | ) | (17,648 |
) |
(542,165 | ) | (711,140 |
) |
(563,910 | ) | (728,780 |
) | ||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||||||
Increase (decrease) in borrowings, net |
(10,389 | ) | (10,975 |
) |
139,062 | (151,721 |
) |
128,683 | (162,696 |
) | ||||||||||||||
Dividends paid |
(30,454 | ) | (39,159 |
) |
(61,288 | ) | (74,342 |
) |
(61,288 | ) | (74,342 |
) | ||||||||||||
Other |
(10 | ) | (6 |
) |
(395,279 | ) | (99,702 |
) |
(405,928 | ) | (99,540 |
) | ||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Net cash provided by (used in) financing activities |
(40,853 | ) | (50,140 |
) |
(317,505 | ) | (325,765 |
) |
(338,533 | ) | (336,578 |
) | ||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
— | — |
36,685 | 94,369 |
36,685 | 94,369 |
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
(52,821 | ) | 391,922 |
327,280 | (129,268 |
) |
274,459 | 262,654 |
||||||||||||||||
Cash and cash equivalents at beginning of the fiscal year |
550,039 | 497,218 |
962,484 | 1,289,764 |
1,512,523 | 1,786,982 |
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Cash and cash equivalents at end of the fiscal year |
497,218 | 889,140 |
1,289,764 | 1,160,496 |
1,786,982 | 2,049,636 |
||||||||||||||||||
|
B. |
Liquidity and Capital Resources |
C. |
Research and Development |
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
(Yen in billions) |
||||||||
R&D costs |
||||||||
G&NS |
144.6 | 175.7 |
||||||
EP&S* |
142.3 | 141.8 |
||||||
I&SS |
168.9 | 198.0 |
||||||
Corporate R&D |
43.3 | 48.7 |
D. |
Trend Information |
• | Businesses that “move people’s hearts”: G&NS business, Music business and Pictures business |
• | Over the past four years Sony has executed over 1 trillion yen in strategic investments to enhance its content IP and DTC services. |
• | In the DTC space, Sony values its relationships with partners, and has a long-term vision of directly connecting the Sony Group with 1 billion people interested in entertainment. |
• | Businesses that “connect people to people”: ET&S business and I&SS business |
• | Provide technology, products and services to creators who create Kando content and to the users who experience it. |
• | In the I&SS business, Sony has invested approximately 1 trillion yen in its image sensors over the last four years, and retains a leading share of the image sensor market. It also intends to advance its initiatives in automotive and IoT sensing as growth areas. |
• | Businesses that “support people”: Medical business and Financial Services business |
• | In the medical business, products that leverage Sony’s optical disc technology to study cells are contributing to research on cancer and viruses, and to the manufacture of cellular medicine. |
• | The financial services business provides peace of mind and convenience in daily life to over 8 million customers through its life insurance, non-life insurance and banking services and products. |
• | Sony has set growth in EPS (earnings per share) over the long-term as a crucial discipline for management, and intends to continue to make strategic investments for growth focused around content IP, DTC services and technology. Sony has also positioned the repurchase of its shares as part of its strategic investment, and plans to continue to make repurchases in a flexible manner. |
• | G&NS business |
• | Implemented initiatives to get closer to creators through the creation of IP while also getting closer to users through DTC services. |
• | Consoles: Sony plans to achieve further growth with the 18 million PS5 ™ units it expects to sell during the fiscal year ending March 31, 2023. |
• | Network services: PlayStation ™ Network (“PSN”) has generated more than 1 trillion 800 billion yen in cumulative sales over the network and more than 100 million accounts* access the service currently. A major renewal of the PlayStation® Plus subscription service is scheduled to roll out in June 2022 in order to strengthen PSN. |
• | First-party studios: While Sony will continue to value its relationships with third-party studios, PlayStation Studios, which are its first-party studios, made numerous acquisitions and equity investments over the past year. |
• | Sony Interactive Entertainment signed definitive agreements for the acquisition of Bungie, which represents a major step in becoming more multi-platform and enhancing Sony’s live game services. |
• | Music business |
• | Sony aims to be the closest company to artists and songwriters, and is focused on supporting them from the creative side. As a leader in the industry, which has been expanding since 2014 due to the growth of streaming services, Sony is continuously producing hits. |
• | Independent labels: Sony provides various support to independent artists through The Orchard. Sony has also acquired the Brazilian music label Som Livre and launched a new label in India as part of its efforts to make more artists in growing emerging markets known to the world. |
• | Independent artists: Sony is also strengthening its support of independent artists through AWAL, which provides them with music production and distribution services. |
• | Expansion of distribution partners: In addition to distribution partners who operate streaming services, Sony is also collaborating with various service partners to expand the reach of its artists. |
• | In Japan, Sony is engaging in efforts to discover and nurture artists through “social” initiatives. |
• | Pictures business |
• | As in the Music business, Sony is working to support creators, as well as to create and expand content IP. |
• | Strengthening IP creation capability: Sony has made several acquisitions including drama production studios in the Television Productions space. |
• | Expansion of the Sony Pictures Universe of Marvel Characters: In the Motion Pictures space, Sony continues to emphasize theaters. Spider-Man: No Way HomeMorbius |
• | IP development that takes advantage of the diversity of the Sony Group: Sony is also creating film and television productions based on game IP. In addition to the movie Uncharted |
• | DTC based on Communities of Interest: While continuing to value its collaboration with theaters and distribution partners, Sony is also expanding its DTC services based around “Communities of Interest” (where people share Kando experiences and similar interests). These include Crunchyroll for anime fans and SonyLIV in India, which is rooted in local culture. At the end of 2021, definitive agreements were reached to merge SPNI, a subsidiary of SPE, and Zee. Sony believes that the merger represents an opportunity to further accelerate the expansion and digitization of its business by using the strengths of both companies to strengthen its digital distribution service in the rapidly-growing Indian media and entertainment market. |
• | Initiatives in the metaverse/live network space |
• | From live services in the game space to its partnership with Manchester City Football Club in the sports space, and live virtual performances by Sony Music artists in the music space, Sony is strengthening its initiatives to create new live entertainment experiences. |
• | Contribution in the mobility space |
• | Sony aims to contribute to mobility in the three areas of safety, entertainment and adaptability. Sony is proceeding with discussions as part of its strategic alliance with Honda Motor Co., Ltd. (“Honda”), and Sony and Honda aim to start selling electric vehicles developed through this alliance in 2025. |
• | Technology that gets closer to creators |
• | Examples include virtual production that uses Crystal LED, and Hawk-Eye Innovations’ tracking system that converts athletes’ movements into data using advanced AI. |
• | Technology that gets closer to users |
• | Includes the PlayStation ® VR2 next-generation virtual reality system, an AI agent that increases the value of the experience in the game space, and aibo, which stays close to and grows together with people by acting on its own innate curiosity. |
Fiscal year ended March 31 |
||||
2022 |
||||
(Yen in billions) |
||||
Net income attributable to Sony Group Corporation’s stockholders |
882.2 |
|||
Net income attributable to noncontrolling interests |
6.2 |
|||
Income taxes |
229.1 |
|||
Interest expenses, net, recorded in Financial income and Financial expense |
7.6 |
|||
Gain on revaluation of equity instruments, net, recorded in Financial income and Financial expense |
(66.2 |
) | ||
Depreciation and amortization expense excluding amortization for film costs and broadcasting rights included in Content assets as well as deferred insurance acquisition costs |
470.4 |
|||
|
|
|||
Profit and loss amount that Sony deems to be non-recurring*** |
(63.8 |
) | ||
|
|
|||
Adjusted EBITDA |
1,597.9 |
|||
|
|
Fiscal year ended March 31 |
||||
2022 |
||||
(Yen in billions) |
||||
Gain from the transfer of certain operations of Game Show Network, LLC (Pictures Segment) |
70.0 |
|||
One-time loss recorded at a subsidiary of Sony Life (Financial Services segment) |
(16.8 |
) | ||
The share of profit of the investment in M3 related to a gain on a change in M3’s equity interest in an affiliated company, resulting from the issuance of new shares in connection with the affiliated company’s public listing (All Other) |
5.1 |
|||
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 |
|||
|
|
|||
Total |
63.8 |
|||
|
|
• | Reduce the amount of plastic and energy used by products |
• | Packaging materials: eliminate plastic packaging from newly-designed small electronics products and reduce the amount of plastic packaging per product unit by 10%* for other product sizes. |
• | Electronics products: reduce the amount of virgin oil-based plastics per product unit by 10%* and accelerate the introduction of recycled plastics. |
• | Power consumption: reduce the amount of annual power consumption per product unit by 5%* because product use accounts for a majority of lifecycle GHG (“greenhouse gas”) emissions of a product. |
• | Implement measures to mitigate climate change at facilities, such as expanding the use of renewable energy |
• | Enhance engagement with raw material and component suppliers and subcontractors along the supply chain |
• | Set mid- and long-term targets for GHG emission reduction that take into consideration the long-term reduction targets sought by the international community, and perform progress management |
• | Set water consumption reduction targets and perform progress management, which take into consideration the water depletion risk in the areas where each site is located. |
• | Continue to prohibit the use of certain substances specified by Sony in its manufacturing processes and perform appropriate management. |
• | Strengthen efforts, particularly in the entertainment field, to raise awareness of sustainability issues |
E. |
Critical Accounting Estimates |
• | The post-tax discount rates ranged from 3.2% to 15.0%. A hypothetical one percentage point increase in the discount rate, holding all other assumptions constant, would not have resulted in an impairment. |
• | The growth rates applied to the terminal values for the CGUs within the G&NS, EP&S and I&SS and Financial Services segments ranged from approximately 1.0% to 1.5%. The growth rates beyond the mid-range plan period for the CGUs in the Music segment ranged from 1.0% to 2.5%, and in the Pictures segment ranged from (5.0%) to 16.0%. A hypothetical one percentage point decrease in the growth rate, holding all other assumptions constant, would not have resulted in an impairment. |
• | The earnings multiple used to calculate the terminal value in the Pictures CGU was 6.0x to 11.0x and the revenue multiple was 1.5x to 2.0x. A hypothetical reduction in earnings multiple by 1.0x and revenue multiple by 0.25x, respectively, holding all other assumptions constant, would not have resulted in an impairment. |
Item 6. |
Directors, Senior Management and Employees |
A. |
Directors and Senior Management |
Kenichiro Yoshida | ||
Responsibility as a Director: — | ||
Date of Birth: October 20, 1959 | ||
Number of Years Served as a Director: 8 years | ||
Principal Business Activities Outside the Corporation: Outside Director, M3, Inc. | ||
Brief Personal History: | ||
April 1983 |
Joined the Corporation | |
July 2000 |
Joined Sony Communication Network Corporation (currently Sony Network Communications Inc.) | |
September 2000 |
Outside Director, So-net M3, Inc. (currently M3, Inc.) (present) | |
May 2001 |
SVP, Sony Communication Network Corporation | |
April 2005 |
President and Representative Director, Sony Communication Network Corporation | |
December 2013 |
EVP, CSO and Deputy CFO, Corporate Executive Officer, the Corporation | |
April 2014 |
EVP and CFO, Representative Corporate Executive Officer, the Corporation | |
June 2014 |
Director, the Corporation (present) | |
April 2015 |
Executive Deputy President and CFO, Representative Corporate Executive Officer, the Corporation | |
April 2018 |
President and CEO, Representative Corporate Executive Officer, the Corporation | |
June 2020 |
Chairman, President and CEO, Representative Corporate Executive Officer, the Corporation (present) |
Hiroki Totoki | ||
Responsibility as a Director: — | ||
Date of Birth: July 17, 1964 | ||
Number of Years Served as a Director: 3 years | ||
Principal Business Activities Outside the Corporation: Outside Director, Recruit Co., Ltd. | ||
Brief Personal History: | ||
April 1987 |
Joined the Corporation | |
February 2002 |
Representative Director, Sony Bank Incorporated | |
June 2005 |
Director, Corporate Executive Officer and Senior Managing Director, Sony Communication Network Corporation (currently Sony Network Communications Inc.) | |
April 2012 |
Representative Director, Corporate Executive Officer and Senior Managing Director, So-net Entertainment Corporation (currently Sony Network Communications Inc.) | |
April 2013 |
Representative Director, Corporate Executive Officer, Deputy President and CFO, So-net Entertainment Corporation | |
December 2013 |
SVP, Corporate Executive, the Corporation | |
November 2014 |
President and CEO, Sony Mobile Communications Inc. (currently Sony Corporation) | |
June 2015 |
Director, Chairman, So-net Corporation (currently Sony Network Communications Inc.) | |
April 2016 |
EVP, Corporate Executive Officer, the Corporation Officer in charge of New Business Platform Strategy, the Corporation President and Representative Director, So-net Corporation | |
June 2017 |
CSO, the Corporation Officer in Charge of Mid-to-Long | |
April 2018 |
Representative Corporate Executive Officer, CFO, the Corporation | |
June 2018 |
Senior EVP, the Corporation Outside Director, Recruit Holdings Co., Ltd. (present) | |
June 2019 |
Director, the Corporation (present) | |
June 2020 |
Executive Deputy President and CFO, Representative Corporate Executive Officer, the Corporation (present) | |
Shuzo Sumi | ||
Responsibility as a Director: Chairman of the Board Chair of the Nominating Committee | ||
Date of Birth: July 11, 1947 | ||
Number of Years Served as a Director: 5 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
April 1970 |
Joined Tokio Marine & Fire Insurance Co., Ltd. | |
June 2000 |
Director and Chief Representative in London, Overseas Division, Tokio Marine & Fire Insurance Co., Ltd. | |
June 2002 |
Managing Director, Tokio Marine & Fire Insurance Co., Ltd. | |
October 2004 |
Managing Director, Tokio Marine & Nichido Fire Insurance Co., Ltd. | |
June 2005 |
Senior Managing Director, Tokio Marine & Nichido Fire Insurance Co., Ltd. | |
June 2007 |
President & Chief Executive Officer, Tokio Marine & Nichido Fire Insurance Co., Ltd. President & Chief Executive Officer, Tokio Marine Holdings, Inc. | |
June 2013 |
Chairman of the Board, Tokio Marine & Nichido Fire Insurance Co., Ltd. Chairman of the Board, Tokio Marine Holdings, Inc. | |
June 2014 |
Outside Director, Toyota Industries Corporation (present) | |
April 2016 |
Senior Executive Advisor, Tokio Marine & Nichido Fire Insurance Co., Ltd. (present) | |
June 2017 |
Director, the Corporation (present) |
Tim Schaaff | ||
Responsibility as a Director: Director in charge of Information Security | ||
Date of Birth: December 5, 1959 | ||
Number of Years Served as a Director: 9 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
December 1982 |
Joined New England Digital Corporation | |
July 1991 |
Joined Apple Computer, Inc. | |
1998 |
Vice President, Apple Computer, Inc. | |
December 2005 |
Senior Vice President, Sony Corporation of America | |
November 2006 |
Deputy President, Technology Development Group, the Corporation | |
June 2008 |
President, Sony Media Software and Services Inc. | |
December 2009 |
Director, President, Sony Network Entertainment International LLC | |
June 2013 |
Director, the Corporation (present) | |
Toshiko Oka | ||
Responsibility as a Director: Chair of the Audit Committee | ||
Date of Birth: March 7, 1964 | ||
Number of Years Served as a Director: 4 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
April 1986 |
Joined Tohmatsu Touche Ross Consulting Limited | |
July 2000 |
Joined Asahi Arthur Anderson Limited | |
September 2002 |
Principal, Deloitte Tohmatsu Consulting Co., Ltd. (currently ABeam Consulting Ltd.) | |
April 2005 |
President and Representative Director, ABeam M&A Consulting Ltd. (currently PwC Advisory LLC) | |
April 2016 |
Partner, PwC Advisory LLC | |
June 2016 |
CEO, Oka & Company Ltd. (present) | |
June 2018 |
Director, the Corporation (present) | |
June 2019 |
Outside Director, Happinet Corporation (present) | |
June 2020 |
Outside Director, ENEOS Holdings, Inc. (present) | |
April 2021 |
Professor, Graduate School of Global Business, Meiji University (present) | |
June 2021 |
Outside Director, Hitachi Construction Machinery Co., Ltd. (present) | |
Sakie Akiyama | ||
Responsibility as a Director: Member of the Compensation Committee | ||
Date of Birth: December 1, 1962 | ||
Number of Years Served as a Director: 3 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
April 1987 |
Joined Arthur Andersen & Co. | |
April 1994 |
Founder and CEO, Saki Corporation | |
October 2018 |
Founder, Saki Corporation (present) | |
June 2019 |
Director, the Corporation (present) Outside Director, Japan Post Holdings Co., Ltd. (present) Outside Director, Orix Corporation (present) | |
June 2020 |
Outside Director, Mitsubishi Corporation (present) |
Wendy Becker | ||
Responsibility as a Director: Chair of the Compensation Committee Member of the Nominating Committee | ||
Date of Birth: November 2, 1965 | ||
Number of Years Served as a Director: 3 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
September 1987 |
Brand Manager, Procter & Gamble Company | |
September 1993 |
Consultant, McKinsey & Company, Inc. | |
December 1998 |
Partner, McKinsey & Company, Inc. | |
February 2008 |
Managing Director, Residential, TalkTalk, The Carphone Warehouse Ltd. Board member, Member of Remuneration Committee, Whitbread plc | |
September 2009 |
Chief Marketing Officer, Vodafone Group plc | |
September 2012 |
Chief Operating Officer, Jack Wills Ltd. | |
October 2013 |
CEO, Jack Wills Ltd. | |
February 2017 |
Board member, Chair of Remuneration Committee, Great Portland Estates plc (present) | |
September 2017 |
Board member, Logitech International S.A. (present) | |
June 2019 |
Director, the Corporation (present) | |
September 2019 |
Chair of the Board, Chair of Nominating Committee, Logitech International S.A. (present) | |
June 2021 |
Board member, Chair of Remuneration Committee, Oxford Nanopore Technologies plc (present) | |
Yoshihiko Hatanaka | ||
Responsibility as a Director: Vice Chairman of the Board Member of the Nominating Committee Member of the Compensation Committee | ||
Date of Birth: April 20, 1957 | ||
Number of Years Served as a Director: 3 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
April 1980 |
Joined Fujisawa Pharmaceutical Co., Ltd. (currently Astellas Pharma Inc.) | |
June 2005 |
Corporate Executive, Vice President, Corporate Planning, Corporate Strategy, Astellas Pharma Inc. | |
April 2006 |
Corporate Executive of Astellas Pharma Inc. and President & CEO, Astellas US LLC and President & CEO, Astellas Pharma US, Inc. | |
June 2008 |
Senior Corporate Executive of Astellas Pharma Inc. and President & CEO, Astellas US LLC and President & CEO, Astellas Pharma US, Inc. | |
April 2009 |
Senior Corporate Executive, Chief Strategy Officer and Chief Financial Officer, Astellas Pharma Inc. | |
June 2011 |
Representative Director, President & CEO, Astellas Pharma Inc. | |
April 2018 |
Representative Director, Chairman of the Board, Astellas Pharma Inc. | |
June 2019 |
Director, the Corporation (present) | |
Keiko Kishigami | ||
Responsibility as a Director: Member of the Audit Committee | ||
Date of Birth: January 28, 1957 | ||
Number of Years Served as a Director: 2 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
October 1985 |
Joined Peat Marwick Minato (currently Ernst & Young ShinNihon LLC) | |
August 1989 |
Registered as Certified Public Accountant (present) | |
December 1997 |
Partner, Century Audit Corporation (currently Ernst & Young ShinNihon LLC) | |
May 2004 |
Representative Partner (position currently defined as “Senior Partner”), Ernst & Young ShinNihon (currently Ernst & Young ShinNihon LLC) | |
September 2018 |
Board Member, WWF Japan (present) | |
June 2019 |
Outside Auditor, Okamura Corporation (present) | |
June 2020 |
Director, the Corporation (present) | |
June 2021 |
Outside Director, Sumitomo Seika Chemicals Company, Limited (present) |
Joseph A. Kraft Jr. | ||
Responsibility as a Director: Member of the Audit Committee Director in charge of Information Security | ||
Date of Birth: May 12, 1964 | ||
Number of Years Served as a Director: 2 years | ||
Brief Personal History and Principal Business Activities Outside the Corporation: | ||
July 1986 |
Joined Morgan Stanley Inc. | |
January 2000 |
Managing Director, Morgan Stanley Inc. | |
April 2007 |
Managing Director, Head of Capital Markets Division, Dresdner Kleinwort Japan | |
March 2010 |
Deputy Branch Manager & Managing Director, Bank of America Merrill Lynch Japan | |
July 2015 |
CEO, Rorschach Advisory Inc. (present) | |
June 2020 |
Director, the Corporation (present) |
Shiro Kambe | ||
Responsibility as an Officer: Senior EVP, Officer in charge of Legal, Compliance, Privacy, Corporate Communications, Brand Strategy, Sustainability and External Relations | ||
Date of Birth: December 18, 1961 | ||
Number of Years Served as a Corporate Executive Officer: 8 years | ||
Principal Business Activities Outside Sony: None | ||
Brief Personal History: | ||
April 1984 |
Joined the Corporation | |
June 2010 |
SVP, Corporate Executive, the Corporation | |
June 2014 |
EVP, Corporate Executive Officer, the Corporation | |
June 2020 |
Senior EVP, Corporate Executive Officer, the Corporation (present) |
Kazushi Ambe | ||
Responsibility as an Officer: Senior EVP, Officer in charge of Human Resources and General Affairs | ||
Date of Birth: April 23, 1961 | ||
Number of Years Served as a Corporate Executive Officer: 6 years | ||
Principal Business Activities Outside Sony: None | ||
Brief Personal History: | ||
April 1984 |
Joined the Corporation | |
October 2001 |
Vice President, Sony Ericsson Mobile Communications | |
April 2006 |
Senior Vice President, Sony Corporation of America | |
November 2014 |
SVP, Corporate Executive, the Corporation | |
June 2016 |
EVP, Corporate Executive Officer, the Corporation | |
June 2020 |
Senior EVP, Corporate Executive Officer, the Corporation (present) |
Toshimoto Mitomo | ||
Responsibility as an Officer: Senior EVP, Officer in charge of Intellectual Property and Business Incubation Platform, Sony Group China Representative | ||
Date of Birth: January 6, 1963 | ||
Number of Years Served as a Corporate Executive Officer: — | ||
Principal Business Activities Outside Sony: None | ||
Brief Personal History: | ||
April 1985 |
Joined the Corporation | |
June 2013 |
SVP, Corporate Executive, the Corporation | |
June 2019 |
EVP, the Corporation | |
April 2022 |
Senior EVP, Corporate Executive Officer, the Corporation (present) |
Hiroaki Kitano | ||
Responsibility as an Officer: Senior EVP and CTO, Officer in charge of R&D and AI Collaboration | ||
Date of Birth: March 16, 1961 | ||
Number of Years Served as a Corporate Executive Officer: — | ||
Principal Business Activities Outside Sony: None | ||
Brief Personal History: | ||
April 1984 |
Joined NEC Corporation | |
August 1993 |
Joined Sony Computer Science Laboratories, Inc. | |
June 2002 |
Director, Deputy Head of Research, Sony Computer Science Laboratories, Inc. | |
July 2008 |
Director, Head of Research, Sony Computer Science Laboratories, Inc. | |
July 2011 |
President and CEO, Sony Computer Science Laboratories, Inc. (present) | |
June 2016 |
Corporate Executive, the Corporation | |
June 2018 |
SVP, the Corporation | |
April 2020 |
CEO, Sony AI Inc. (present) | |
June 2020 |
EVP, the Corporation | |
April 2022 |
Senior EVP and CTO, Corporate Executive Officer, the Corporation (present) |
B. |
Compensation |
Fixed remuneration (*3) |
Remuneration linked to business results |
Stock acquisition rights (*6) |
Restricted stock (*3/*8) |
Phantom Restricted Stock Plan (*9) | ||||||||||||||||
Number of persons |
Amount | Number of persons |
Amount | Number of persons |
Amount | Number of persons |
Amount | Number of persons |
Amount | |||||||||||
Million Yen | Million Yen | Million Yen | Million Yen | Million Yen | ||||||||||||||||
Directors |
10 | 170 | — | — | — | — | 10 | 40 | — | — | ||||||||||
(*4) | (*7) | |||||||||||||||||||
(Outside Directors) (*1, 2) |
(9) | (149) | (—) | (—) | (—) | (—) | (9) | (36) | (—) | (—) | ||||||||||
Corporate Executive Officers |
6 | 539 | 6 | 777 | 6 | 540 | 6 | 796 | 1 | 135 | ||||||||||
(*5) | ||||||||||||||||||||
Total |
16 | 708 | 6 | 777 | 6 | 540 | 16 | 835 | 1 | 135 |
Name |
Position (*1) |
Fixed Remuneration (*2) (Yen in millions) |
Remuneration linked to business results (*2) (*3) (Yen in millions) |
Phantom restricted stock plan (Yen in millions) |
Total (*2) (Yen in millions) |
Granted number of stock acquisition rights (*4) (Ten thousand shares) |
Granted number of restricted stock (*5) (Ten thousand shares) | |||||||
Kenichiro Yoshida |
Director, Chairman, President & CEO, and Representative Corporate Executive Officer (*6) (*7) | 215 | 391 | — | 606 | 15 | 7.5 | |||||||
Hiroki Totoki |
Director, Executive Deputy President & CFO, and Representative Corporate Executive Officer (*6) (*7) | 77 | 143 | — | 220 | 5 | 2.5 | |||||||
Shigeki Ishizuka |
Vice Chairman, Former Representative Corporate Executive Officer (Until June 28, 2022) (*7) | 68 | 69 | — | 137 | 2 | 0.5 | |||||||
Toru Katsumoto |
Former Executive Deputy President, Former Corporate Executive Officer (Until June 28, 2022) (*7) |
64 | 66 | 135 | 265 | 3 | 1.5 | |||||||
Shiro Kambe |
Senior Executive Vice President, Corporate Executive Officer (*7) | 52 | 55 | — | 106 | 2 | 0.6 | |||||||
Kazushi Ambe |
Senior Executive Vice President, Corporate Executive Officer (*7) | 51 | 53 | — | 104 | 2 | 0.6 |
• | Securing a talent pool of Directors possessing requisite abilities from a global perspective; and |
• | Ensuring the effectiveness of the supervisory function of Directors. |
Type of remuneration |
Description | |
Fixed remuneration | • Set at an appropriate level determined based on research conducted by a third party regarding remuneration of directors of both Japanese and non-Japanese companies with a view to the level of responsibility of the Director and maintaining competitiveness for securing talent. | |
Remuneration linked to stock price (restricted stock) |
• Granted to further promote shared values between Directors and shareholders and incentivize Directors to develop and maintain a sound and transparent management system. • Any Director to whom restricted stock is granted, in principle, may not sell or transfer the granted shares during his or her tenure. This restriction is removed on the date such Director resigns. | |
Phantom restricted stock plan | • Points determined by the Compensation Committee shall be granted to Directors every year during their term in office. Then, when they resign, the remuneration amount shall be calculated by multiplying the closing price of common stock by the individual’s accumulated points. * Because Sony replaced the phantom restricted stock plan for Directors with restricted stock from the fiscal year ended March 31, 2018, Sony did not grant new points to Directors during the fiscal year ended March 31, 2022. |
• | Securing a talent pool possessing requisite abilities from a global perspective; and |
• | Providing effective incentives to improve business results on a short-, mid- and long-term basis. |
Type of remuneration |
Description | |
Fixed remuneration | • Set at an appropriate level determined based on research conducted by a third party regarding remuneration of management of both Japanese and non-Japanese companies with a view to the level of responsibility of the Senior Executive and maintaining competitiveness for securing talent. | |
Remuneration linked to business results | • Structured appropriately and based on appropriate metrics to ensure that such remuneration effectively incentivizes Senior Executives to achieve financial targets for the mid- to long-term and financial targets for the fiscal year for which compensation will be paid.• Specifically, the amount to be paid to Senior Executives shall be determined based on the level of achievement of the two metrics below and can fluctuate, in principle, from 0% to 200% of the standard payment amount (“Business Results Linked Standard Payment Amount”) based on the achievement of the below-mentioned targets. (1) Certain key performance indicators linked to the consolidated or individual business results of Sony during the fiscal year, such as Adjusted EBITDA and Adjusted EPS (net income attributable to Sony Group Corporation’s stockholders per share), which are selected based on the areas for which each Senior Executive is responsible. (2) Individual performance in the area(s) for which each Senior Executive is responsible. • Efforts to accelerate value creation through collaborations among the businesses of Sony, sustainability initiatives related to social value creation and ESG (environment, social and governance) and engagement indicators based on employee surveys shall be included in the evaluation factors for individual performance. • The Business Results Linked Standard Payment Amount shall be determined so that such amount is within an appropriate percentage of the cash compensation (total of the fixed remuneration and the remuneration linked to business results), which percentage shall be determined in accordance with each individual’s level of responsibility. |
Type of remuneration |
Description | |
Remuneration linked to stock price (Stock acquisition rights and restricted stock) |
• Stock acquisition rights and restricted stock are granted to incentivize Senior Executives to increase mid-to long-term shareholder value.• The exercise of the stock acquisition rights is restricted during a one-year period from the allotment date, and in general, one-third of the total number of exercisable stock acquisition rights will be vested and exercisable each year thereafter. (All of the allocated stock acquisition rights will be exercisable on and after three years from the allotment date.)• The Senior Executives to whom restricted stock is granted, in principle, may not sell or transfer the granted stock before the third anniversary date of the Ordinary General Meeting of Shareholders of the fiscal year when the restricted stock was granted. • In principle, remuneration for a Senior Executive who has greater management responsibility and influence over Sony as a whole has a higher proportion of their remuneration linked to the corporate value. (Please see below “Reference: Executive Compensation Package Designed to Focus on Long-Term Management.”) • The amount of remuneration linked to the stock price shall be determined so that the amount is within an appropriate percentage of the total cash compensation (total of the fixed remuneration and the remuneration linked to business results) and remuneration linked to the stock price according to each individual’s level of responsibility. | |
Phantom restricted stock plan | • Points determined by the Compensation Committee shall be granted to Senior Executives every year during their tenure, and at the time of resignation, the remuneration amount shall be calculated by multiplying the common stock price (closing price) by the individual’s accumulated points. |
KPI |
Weight |
Target to be achieved for the fiscal year ended March 31, 2022 (Consolidated) |
Result for the fiscal year ended March 31, 2022 (Consolidated) | |||
Adjusted EBITDA (*1) | 50% | Amount determined in order to achieve the Adjusted EBITDA (defined below) target of 4.3 trillion yen for the three-year period from the fiscal year ended March 31, 2022 | 1,597.9 billion yen | |||
Adjusted EPS (*2) | 50% | 523.2 yen | 640.2 yen (*3) |
Fiscal year ended March 31 |
||||
2022 |
||||
(Yen in billions, yen per share amounts) |
||||
Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation* |
882.3 |
|||
Profit and loss amount that Sony deems to be non-recurring, including adjustments for income taxes and non-controlling interests** |
(81.3 |
) | ||
|
|
|||
Adjusted Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation |
801.1 |
|||
Weighted-average shares for diluted EPS computation (thousands of shares)* |
1,251,260 |
|||
|
|
|||
Adjusted EPS |
640.2 |
|||
|
|
C. |
Board Practices |
Name |
Position | |
Kenichiro Yoshida |
Director | |
Hiroki Totoki |
Director | |
Shuzo Sumi |
Chairman of the Board Outside Director | |
Tim Schaaff |
Non-Executive Director | |
Toshiko Oka |
Outside Director | |
Sakie Akiyama |
Outside Director | |
Wendy Becker |
Outside Director | |
Yoshihiko Hatanaka |
Vice Chairman of the Board Outside Director | |
Keiko Kishigami |
Outside Director | |
Joseph A. Kraft Jr. |
Outside Director |
(a) | He/she shall not be a director, a statutory auditor, a corporate executive officer, a general manager or other employee of any company in competition with Sony in any of Sony’s principal businesses (a “Competing Company”) or own 3% or more of the shares of any Competing Company. |
(b) | He/she shall not be or have been a representative partner or partner of Sony’s independent auditor the past three years before being nominated as a Director. |
(c) | He/she shall not have any connection with any matter that may cause a material conflict of interest in performing the duties of a Director. |
(a) | He/she shall not have received directly from Sony, during any consecutive twelve-month period within the last three years, more than an amount equivalent to U.S. $120,000, other than Director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service). |
(b) | He/she shall not be an executive director, corporate executive officer, general manager or other employee of any company whose aggregate amount of transactions with Sony, in any of the last three fiscal years, exceeds the greater of an amount equivalent to U.S. $1,000,000, or 2% of the annual consolidated sales of such company. |
(i) | In a case where a non-executive Director is liable to the company after the execution of the liability limitation agreement for damages pursuant to Article 423, Paragraph 1 of the Companies Act, such liabilities shall be limited to the greater of either 30 million yen or an amount equal to the aggregate sum of the amounts prescribed in each item of Article 425, Paragraph 1 of the Companies Act, only where the non-executive Director acted in good faith without any gross negligence in performing his/her duties as a Director of the company. |
(ii) | In a case where a non-executive Director is reelected as a non-executive Director of the company and reassumes his/her office as such on the expiration of the term of his/her office as a non-executive Director of the company, the liability limitation agreement shall continue to be effective after the reelection and re-assumption without any action or formality. |
(1) | Members: 3 outside Directors (as of June 28, 2022) |
Name |
Position | |
Shuzo Sumi |
Chair of the Nominating Committee (Outside Director) | |
Yoshihiko Hatanaka |
Nominating Committee Member (Outside Director) | |
Wendy Becker |
Nominating Committee Member (Outside Director) |
Name |
Position | |
Toshiko Oka |
Chair of the Audit Committee (Outside Director) | |
Keiko Kishigami |
Audit Committee Member (Outside Director) | |
Joseph A. Kraft Jr. |
Audit Committee Member (Outside Director) |
Name |
Position | |
Wendy Becker |
Chair of the Compensation Committee (Outside Director) | |
Sakie Akiyama |
Compensation Committee Member (Outside Director) | |
Yoshihiko Hatanaka |
Compensation Committee Member (Outside Director) |
(i) | The insurance policy covers compensation for damages, litigation costs (including attorney’s fees) and other costs that may be incurred by the Executives as a result of assuming responsibility for the execution of their duties or receiving claims related to such responsibility. |
(ii) | As a measure to ensure the appropriateness of the execution of duties by the Executives, there are certain exemptions, such as in the case of an act committed by the Executives with the knowledge that it constitutes a violation of laws or regulations. |
• | Reviewed relevant material, such as the minutes of Board meetings, and attended a Board meeting; |
• | Confirmed with the Board secretariat office and each Committee’s secretariat office how meetings of the Board and Committees were conducted; |
• | Gathered responses to a questionnaire from each Director about the current status and practices of the Board and each Committee, such as the composition of the Board, operation of the Board, commitments of each Director, activities of each Committee and procedures of the previous Evaluation; |
• | Interviewed the Chairman of the Board and the Chair of each Committee, Directors who are concurrently in the positions of Corporate Executive Officers, and certain additional Corporate Executive Officers about the Board and Committee status and practices; and |
• | Researched other global companies’ practices in Japan, the United States and Europe, and compared them with the company’s practices. |
• | Continuously made periodic reports to the Board on sustainability, including ESG (Environment, Social and Governance) related matters; |
• | Enhanced Board’s supervision over risks regarding economic security and geopolitics; |
• | Focused on information security continuously through maintaining the number of Directors in charge of Information Security; |
• | Held additional executive sessions; |
• | Expanded disclosure in the table showing experiences and expertise of Directors; and |
• | Continuously conducted visiting audits by Audit Committee members at Sony’s business sites. |
D. |
Employees |
March 31 |
||||||||||||
2020 | 2021 | 2022 |
||||||||||
By segment: |
||||||||||||
G&NS |
9,500 | 9,600 | 10,200 |
|||||||||
Music |
9,900 | 9,900 | 10,800 |
|||||||||
Pictures |
8,400 | 8,000 | 8,100 |
|||||||||
EP&S |
46,800 | 43,700 | 40,200 |
|||||||||
I&SS |
15,800 | 16,800 | 18,100 |
|||||||||
Financial Services |
12,300 | 12,900 | 13,200 |
|||||||||
All Other |
3,200 | 2,800 | 2,300 |
|||||||||
Unallocated — Corporate employees |
5,800 | 6,000 | 6,000 |
|||||||||
By region: |
||||||||||||
Japan |
53,700 | 54,500 | 55,100 |
|||||||||
Outside of Japan |
58,000 | 55,200 | 53,800 |
|||||||||
|
|
|
|
|
|
|||||||
Total |
111,700 | 109,700 | 108,900 |
|||||||||
|
|
|
|
|
|
E. |
Share Ownership |
Year granted (Fiscal year ended March 31) |
Total number of shares subject to stock acquisition rights |
Exercise price per share |
||||||
(in thousands) |
||||||||
2022 |
290 | 14,350 yen | ||||||
2021 |
260 | 9,237 yen | ||||||
2020 |
253 | 6,705 yen | ||||||
2019 |
237 | 6,440 yen | ||||||
2018 |
97 | 5,231 yen | ||||||
2017 |
190 | 3,364 yen | ||||||
2016 |
45 | 3,404 yen | ||||||
2015 |
97 | 2,410.5 yen | ||||||
2014 |
7 | 2,007 yen |
Item 7. |
Major Shareholders and Related Party Transactions |
A. |
Major Shareholders |
Date of Report* |
Reported entities |
Reported number of direct or indirect owned and deemed owned shares** |
Reported percentage of direct or indirect owned and deemed owned shares** |
|||||||
March 22, 2017 |
BlackRock Japan Co., Ltd. and 8 Joint Holders | 79,184,569 | 6.27 | |||||||
October 6, 2020 |
Nomura Asset Management Co., Ltd. and 3 Joint Holders | 63,156,882 | 5.01 | |||||||
June 6, 2022 |
Sumitomo Mitsui Trust Asset Management Co., Ltd. and 1 Joint Holder | 82,189,224 | 6.52 |
B. |
Related Party Transactions |
C. |
Interests of Experts and Counsel |
Item 8. |
Financial Information |
A. |
Consolidated Statements and Other Financial Information |
B. |
Significant Changes |
Item 9. |
The Offer and Listing |
A. |
Offer and Listing Details |
B. |
Plan of Distribution |
C. |
Markets |
D. |
Selling Shareholders |
E. |
Dilution |
F. |
Expenses of the Issue |
Item 10. |
Additional Information |
A. |
Share Capital |
B. |
Memorandum and Articles of Association |
(i) | manufacture and sale of electronic and electrical machines and equipment, medical instruments, optical instruments and other equipment, machines and instruments; |
(ii) | planning, production and sale of audio-visual software and computer software programs; |
(iii) | manufacture and sale of metal industrial products, chemical industrial products and ceramic industrial products, textile products, paper products and wood-crafted articles, daily necessities, foodstuffs and toys, transportation machines and equipment, and petroleum and coal products; |
(iv) | real estate activities, construction business, transportation business and warehousing business; |
(v) | publishing business and printing business; |
(vi) | advertising agency business, insurance agency business, broadcasting enterprise, recreation business such as travel, management of sporting facilities, etc. and other service enterprises; |
(vii) | financial business; |
(viii) | Type I and Type II telecommunications business under the Telecommunications Business Law; |
(ix) | investing in stocks and bonds, etc.; |
(x) | manufacture, sale, export and import of products which are incidental to or related to those mentioned above; |
(xi) | rendering of services related to those mentioned above; |
(xii) | investment in businesses mentioned above operated by other companies or persons; and |
(xiii) | all businesses which are incidental to or related to those mentioned above. |
“A” = | the total amount of other capital surplus and other retained earnings, each such amount being that appearing on the non-consolidated balance sheet as of the end of the last business year | |||
“B” = | (if Sony Group Corporation has disposed of its treasury stock after the end of the last business year) the amount of the consideration for such treasury stock received by Sony Group Corporation less the book value thereof | |||
“C” = | (if Sony Group Corporation has reduced its stated capital after the end of the last business year) the amount of such reduction less the portion thereof that has been transferred to additional paid-in capital or legal reserve (if any) | |||
“D” = | (if Sony Group Corporation has reduced its additional paid-in capital or legal reserve after the end of the last business year) the amount of such reduction less the portion thereof that has been transferred to stated capital (if any) | |||
“E” = | (if Sony Group Corporation has cancelled its treasury stock after the end of the last business year) the book value of such treasury stock | |||
“F” = |
(if Sony Group Corporation has distributed Surplus to its shareholders after the end of the last business year) the total book value of the Surplus so distributed | |||
“G” = |
certain other amounts set forth in ordinances of the Ministry of Justice, including (if Sony Group Corporation has reduced Surplus and increased its stated capital, additional paid-in capital or legal reserve after the end of the last business year) the amount of such reduction and (if Sony Group Corporation has distributed Surplus to the shareholders after the end of the last business year) the amount set aside in additional paid-in capital or legal reserve (if any) as required by ordinances of the Ministry of Justice. |
(a) | the book value of its treasury stock; |
(b) | the amount of consideration for any of treasury stock disposed of by Sony Group Corporation after the end of the last business year; and |
(c) | certain other amounts set forth in ordinances of the Ministry of Justice, including (if the sum of one-half of goodwill and the deferred assets exceeds the total of stated capital, additional paid-in capital and legal reserve, each such amount being that appearing on the non-consolidated balance |
sheet as of the end of the last business year) all or certain part of such exceeding amount as calculated in accordance with ordinances of the Ministry of Justice. |
(1) | acquisition of its own shares from a specific party other than its subsidiaries; |
(2) | consolidation of shares; |
(3) | any offering of new shares or existing shares held by Sony Group Corporation as treasury stock at a “specially favorable” price (or any offering of stock acquisition rights to acquire shares of capital stock, or bonds with stock acquisition rights on “specially favorable” conditions) to any persons other than shareholders; |
(4) | the exemption of liability of a Director, Corporate Executive Officer or independent auditor with certain exceptions; |
(5) | a reduction of stated capital with certain exceptions; |
(6) | a distribution of in-kind dividends which meets certain requirements; |
(7) | dissolution, merger, consolidation, or corporate split with certain exceptions; |
(8) | the transfer of the whole or a material part of the business; |
(9) | the transfer of the whole or a part of the shares or equity interests in a subsidiary which meets certain requirements; |
(10) | the taking over of the whole of the business of any other corporation with certain exceptions; |
(11) | share exchange or share transfer for the purpose of establishing 100% parent-subsidiary relationships with certain exceptions; or |
(12) | partial share exchange for the purpose of establishing parent-subsidiary relationships with certain exceptions, |
C. |
Material Contracts |
D. |
Exchange Controls |
(i) | the aggregate purchase price of the relevant shares is 100 million yen or less; |
(ii) | the acquisition is effected through any bank, financial instruments business operator or other entity prescribed by the Foreign Exchange Regulations acting as an agent or intermediary; or |
(iii) | the acquisition constitutes an “inward direct investment” described below (in which case a prior notification requirement may apply). |
(i) | individuals who reside within Japan; or |
(ii) | corporations whose principal offices are located within Japan. |
(i) | individuals who do not reside in Japan; or |
(ii) | corporations whose principal offices are located outside Japan. |
(i) | individuals who are exchange non-residents; |
(ii) | corporations or other entities that are organized under the laws of foreign countries or whose principal offices are located outside Japan; |
(iii) | corporations of which 50% or more of the total voting rights are held, directly or indirectly, by individuals and/or corporations falling within (i) and/or (ii) above; |
(iv) | partnerships under the Civil Code of Japan established to invest in corporations, limited partnerships for investment under the Limited Partnership Act for Investment of Japan or any other similar partnerships under foreign law of which (a) 50% or more of the total contributions are made by individuals and/or corporations falling within (i), (ii), (iii) above and/or (v) below or any other persons prescribed under the Foreign Exchange Regulations or (b) a majority of the general partners are individuals and/or corporations falling within (i), (ii), (iii) above and/or (v) below or any other persons prescribed under the Foreign Exchange Regulations; or |
(v) | corporations or other entities, a majority of whose directors or other officers (or directors or other officers having the power of representation) are individuals who are exchange non-residents. |
(i) | the foreign investor or its related persons will not become directors or corporate auditors of the relevant corporation; |
(ii) | the foreign investor will not make certain proposals (as prescribed in the Foreign Exchange Regulations) at the general meeting of shareholders, including transfer or discontinuation of the Designated Businesses of the relevant corporation; and |
(iii) | the foreign investor will not access non-public technical information in relation to the Designated Businesses of the relevant corporation, or take certain other actions that may lead to the leak of such non-public technical information (as prescribed in the Foreign Exchange Regulations). |
(i) | the foreign investor will not attend, or not cause any persons designated by it to attend, meetings of the relevant corporation’s board of directors, or meetings of committees having authority to make important decisions, in respect of the Core Sector Designated Businesses of the relevant corporation; and |
(ii) | the foreign investor will not make, or not cause any persons designated by it to make, proposals to such board or committees or their members in writing or electronic form requesting any response or actions by certain deadlines in respect of the Core Sector Designated Businesses of the relevant corporation. |
E. |
Taxation |
(i) | is a resident of the U.S. for purposes of the Treaty; |
(ii) | does not maintain a permanent establishment in Japan (a) with which shares of Common Stock or ADSs of Sony Group Corporation are effectively connected and through which the U.S. holder carries on or has carried on business or (b) of which shares of Common Stock or ADSs of Sony Group Corporation form part of the business property; and |
(iii) | is eligible for benefits under the Treaty with respect to income and gain derived in connection with shares of Common Stock or ADSs of Sony Group Corporation. |
F. |
Dividends and Paying Agents |
G. |
Statement by Experts |
H. |
Documents on Display |
I. |
Subsidiary Information |
Item 11. |
Quantitative and Qualitative Disclosures about Market Risk |
Item 12. |
Description of Securities Other Than Equity Securities |
A. |
Debt Securities |
B. |
Warrants and Rights |
C. |
Other Securities |
D. |
American Depositary Shares |
Service |
Rate |
By Whom Paid | ||
Issuance of ADSs upon deposit of Sony Group Corporation’s Common Stock |
Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) issued | Person depositing Sony Group Corporation’s Common Stock or person receiving ADSs | ||
Delivery of deposited securities against surrender of ADSs |
Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) surrendered | Person surrendering ADSs for the purpose of withdrawal of deposited securities or person to whom deposited securities are delivered | ||
Distribution of cash dividends or other cash distributions (i.e., sale of rights and other entitlements) |
Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) held | Person to whom distribution is made | ||
Distribution of ADSs pursuant to (i) stock dividends or other free stock distributions, (ii) exercise of rights to purchase additional ADSs |
Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) held | Person to whom distribution is made | ||
Distribution of securities other than ADSs or rights purchase Additional ADSs (i.e., spin-off shares) |
Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) held | Person to whom distribution is made | ||
ADS Services |
Up to 5.00 U.S. dollar per 100 ADSs (or fraction thereof) held on the applicable record date (s) established by the Depositary | Person holding ADSs on the applicable record date (s) established by the Depositary |
Item 13. |
Defaults, Dividend Arrearages and Delinquencies |
Item 14. |
Material Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. |
Controls and Procedures |
(i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of Sony; |
(ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of Sony are being made only in accordance with authorizations of management and directors; and |
(iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of Sony’s assets that could have a material effect on the financial statements. |
Item 16. |
[Reserved] |
Item 16A. |
Audit Committee Financial Expert |
Item 16B. |
Code of Ethics |
Item 16C. |
Principal Accountant Fees and Services |
Fiscal year ended March 31 |
||||||||
2021 | 2022 |
|||||||
Yen in millions |
||||||||
Audit Fees (1) |
4,207 | 4,514 |
||||||
Audit-Related Fees (2) |
128 | 175 |
||||||
Tax Fees |
0 | 0 |
||||||
All Other Fees (3) |
67 | 16 |
||||||
|
|
|
|
|||||
4,402 | 4,705 |
|||||||
|
|
|
|
(1) | Audit Fees consist of fees for the annual audit services engagement and other audit services, which are those services that only the external auditor can provide. |
(2) | Audit-Related Fees consist of fees billed for assurance and related services, and audit services relating to benefit plans, business acquisitions and dispositions. |
(3) | All Other Fees consist of fees primarily for services rendered with respect to advisory services. |
Item 16D. |
Exemptions from the Listing Standards for Audit Committees |
Item 16E. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Period |
(a) Total number of shares purchased |
(b) Average price paid per share (yen) |
(c) Total number of shares purchased as part of publicly announced plans or programs *1,2 |
(d) Maximum number of shares that may yet be purchased under the plans or programs *1,2 | ||||||||||
April 1 — 30, 2021 |
2,210 | 11,978.55 | N/A | N/A | ||||||||||
May 1 — 31, 2021 |
632,531 | 10,324.46 | 631,100 | 24,368,900 | ||||||||||
June 1 — 30, 2021 |
94,602 | 10,475.99 | 91,700 | 24,277,200 | ||||||||||
July 1 — 31, 2021 |
2,233 | 11,105.50 | 0 | 24,277,200 | ||||||||||
August 1 — 31, 2021 |
1,072,692 | 11,007.70 | 1,070,200 | 23,207,000 | ||||||||||
September 1 — 30, 2021 |
186,449 | 11,345.35 | 184,100 | 23,022,900 | ||||||||||
October 1 — 31, 2021 |
905,525 | 12,468.77 | 903,400 | 22,119,500 | ||||||||||
November 1 — 30, 2021 |
403,606 | 14,198.24 | 400,900 | 21,718,600 | ||||||||||
December 1 — 31, 2021 |
863,746 | 13,870.72 | 860,300 | 20,858,300 | ||||||||||
January 1 — 31, 2022 |
414,993 | 11,880.78 | 412,300 | 20,446,000 | ||||||||||
February 1 — 28, 2022 |
1,085,475 | 12,028.09 | 1,084,000 | 19,362,000 | ||||||||||
March 1 — 31, 2022 |
1,764,231 | 11,415.45 | 1,762,600 | 17,599,400 | ||||||||||
|
|
|
|
|
|
| ||||||||
Total |
7,428,293 | 11,930.63 | 7,400,600 | N/A |
• | Total number of shares for repurchase: 25 million shares (maximum) (2.02% of total number of shares issued and outstanding (excluding treasury stock)) |
• | Total purchase price for repurchase of shares: 200 billion yen (maximum) |
• | Period of repurchase: From April 30, 2021 to April 28, 2022 |
• | Total number of shares repurchased: 8,206,900 shares |
• | Total purchase price for repurchased shares: 97,381,577,700 yen |
• | Period of repurchase: April 30, 2021 to April 28, 2022 |
Item 16F. |
Change in Registrant’s Certifying Accountant |
Item 16G. |
Disclosure About Differences in Corporate Governance |
NYSE Standards |
Sony’s Corporate Governance Practices | |
Board Independence. |
Sony Group Corporation has adopted the “Company with Three Committees” corporate governance system under the Companies Act. Sony Group Corporation’s Board Charter requires its board to consist of between 8 to 14 directors. The Companies Act does not require Sony Group Corporation to have a majority of “independent” (in the meaning given by the NYSE Corporate Governance Standards) directors on its board; rather, it requires Sony Group Corporation to have a majority of “outside” directors (the definition of the term “outside” director is summarized below) on each of three statutory committees (the Nominating Committee, the Audit Committee and the Compensation Committee). | |
| ||
Director Independence. (i) a person who the board determines has a material direct or indirect relationship with the company, its parent or a consolidated subsidiary; (ii) a person who, within the last three years, has been an employee of the company or has an immediate family member of an executive officer of the company, its parent or a consolidated subsidiary; (iii) a person who had received, or whose immediate family member had received, during any 12-month period within the last three years, more than 120,000 U.S. dollars per year in direct compensation from the company, its parent or a consolidated subsidiary, other than director and committee fees or deferred compensation for prior services (provided such compensation is not contingent in any way on continued service); (iv) (A) a person who is, or whose immediate family member is, a current partner or employee of a firm that is the company’s internal or external auditor; (B) a person whose immediate family member is a partner of such a firm; (C) a person who has an immediate family member who is a current employee of such a firm and who personally participates in the firm’s audit, assurance or tax compliance (but not tax planning) practice; or (D) a person who was, or has an immediate family member who was, within the last three years, a partner or employee of such a firm and personally worked on the listed company’s audit within that time; (v) a person who is, or whose immediate family member is, or has been within the last three years, employed as an executive officer of another company where any of |
“Outside” director is defined in the Companies Act as a person who satisfies all of the requirements (i) through (v) below: (i) a person who is not a Director of Sony Group Corporation or any of its subsidiaries engaged in the business operations of Sony Group Corporation or such subsidiaries, as the case may be, or a Corporate Executive Officer or general manager or other employee (“Group Executive Director, etc.”) of Sony Group Corporation or any of its subsidiaries and who has not been a Group Executive Director, etc. of Sony Group Corporation or any of its subsidiaries for ten years prior to assuming his/her office; (ii) if a person who has been a director, accounting counselor (if the accounting counselor is a juridical person, a member who is in charge of the affairs), or corporate auditor of Sony Group Corporation or any of its subsidiaries (excluding a person who has been a Group Executive Director, etc.) at the time within ten years prior to assuming his/her office, a person who has not been a Group Executive Director, etc. of Sony Group Corporation or any of its subsidiaries for ten years prior to assuming his/her office as a director, an accounting counselor, or a corporate auditor; (iii) a person who is not a director or a Corporate Executive Officer or general manager or other employee of a parent company or any entity which controls the management of Sony Group Corporation; (iv) a person who is not a Group Executive Director, etc. of a direct/indirect subsidiary of Sony Group Corporation or any entity the management of which is directly or indirectly controlled by Sony Group Corporation; and (v) a person who is not a spouse or relative within the second degree of kinship of a Director or a Corporate Executive Officer or general manager or other |
NYSE Standards |
Sony’s Corporate Governance Practices | |
the listed company’s present executive officers at the same time serves or served on that company’s compensation committee; or (vi) an executive officer or employee of a company, or has an immediate family member of an executive officer of a company, that makes payments to, or receives payments from, the listed company, its parent or a consolidated subsidiary for property or services in an amount which, in any of the last three fiscal years, exceeds the greater of 1 million U.S. dollars or 2% of such other company’s consolidated gross revenues |
employee of Sony Group Corporation. Under the Companies Act, a director’s status as an “outside” director is unaffected by the director’s compensation, his or her affiliation with business partners, or the board’s affirmative determination of independence. On the other hand, under the Companies Act, a director who has had a career as a management director, corporate executive officer, or other employee of the company, its subsidiaries or other group companies is by definition not an “outside” director. | |
Sony Group Corporation’s Board Charter includes a provision requiring that each “outside” director: (i) Shall not have received directly from Sony Group, during any consecutive 12-month period within the last three years, more than an amount equivalent to 120,000 U.S. dollars, other than Director and committee fees and pension or other forms of deferred compensation for prior service (provided such compensation is not contingent in any way on continued service); and(ii) Shall not be an executive director, a corporate executive officer, a general manager or other employee of any company whose aggregate amount of transactions with Sony Group, in any of the last three fiscal years, exceeds the greater of an amount equivalent to 1,000,000 U.S. dollars, or 2% of the annual consolidated sales of such company; | ||
In addition, the Securities Listing Regulations of the TSE require Sony Group Corporation to make efforts to have at least one “Independent Director” on the Board of Directors. “Independent Director” is defined in the Securities Listing Regulations of the TSE as an “outside” director who is unlikely to have conflicts of interest with shareholders. According to the guidelines of the TSE, if a person falls in any of the categories listed below, such person, in principle, will be considered to have a conflict of interest with shareholders of the listed company. (1) A person for which the listed company is a major client or a person who executes business of a person for which the listed company is a major client; (2) A major client of the listed company or a person who executes business of a major client of the listed company; (3) A consultant, accounting professional, or legal professional (or, if such consultant, accounting professional, or legal professional is a juridical person, a member of such juridical person) of the listed company who receives a large amount of money or other consideration other than remuneration for directorship/auditorship from such listed company; |
NYSE Standards |
Sony’s Corporate Governance Practices | |
(4) A person who has fallen in any of categories (1) through (3) listed above until recently; (5) A person who has fallen in any of categories (a) or (b) listed below for ten years prior to assuming his/her office: (a) A person who executes business of a parent company of the listed company or a director who does not execute business of a parent company of the listed company; or (b) A person who executes business of a fellow subsidiary of the listed company. | ||
(6) A close relative of a person who falls in any of categories (a) through (f) listed below (only if such person is significant): (a) A person who falls in any of (1) through (5) listed above; (b) A person who executes business of a subsidiary of the listed company; (c) A director who does not execute business of a subsidiary of the listed company; (d) A person who executes business of a parent company of the listed company or a director who does not execute business of a parent company of the listed company; (e) A person who executes business of a fellow subsidiary of the listed company; or (f) A person who has fallen in any of categories (b) or (c) listed above or a person who has executed business of the listed company until recently. | ||
As of June 28, 2022, 7 of the 10 members of Sony Group Corporation’s Board of Directors qualified as “outside” directors. In addition, all 7 “outside” directors are qualified and designated as “Independent Directors” under the Securities Listing Regulations of the TSE. | ||
| ||
Executive Sessions. Non-management directors must meet in regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. |
An “outside” director, as defined under the Companies Act, is equivalent to a “non-management director” under the NYSE rules because an “outside” director does not engage in the execution of business operations of the company.The outside/non-management Directors generally meet several times a year without management, though neither the Companies Act nor Sony Group Corporation’s Board Charter requires non-management Directors to meet regularly without management and there is no requirement for the outside Directors to meet alone in an executive session at least once a year. | |
|
NYSE Standards |
Sony’s Corporate Governance Practices | |
Nominating/Corporate Governance Committee. |
Sony Group Corporation’s Nominating Committee shall consist of at least three Directors. Under the Companies Act, the Committee is responsible for determining the contents of proposals regarding the appointment and dismissal of Directors to be submitted for approval to the shareholders’ meeting. Unlike listed U.S. companies under NYSE rules, it is not responsible for developing governance guidelines or overseeing the evaluation of the board and management. Under the Companies Act, a majority of its members shall be “outside” directors, as defined under the Companies Act. | |
| ||
Compensation Committee. |
Sony Group Corporation’s Compensation Committee shall consist of at least three Directors. Under the Companies Act, a majority of its members shall be “outside” directors, as defined under the Companies Act. Sony Group Corporation’s Board Charter prohibits the CEO, the COO and/or the CFO (or a person at any equivalent position) from serving on the Compensation Committee. Under the Companies Act, the Committee is responsible for, among others, determining the compensation of each director and Corporate Executive Officer. | |
| ||
Audit Committee. Rule 10A-3 under the Exchange Act is required. The committee must have at least three members. All members must be independent. The committee must have a charter addressing the committee’s purpose, an annual performance evaluation of the committee and the duties and responsibilities of the committee. |
Sony Group Corporation’s Audit Committee shall consist of at least three Directors. Under the Companies Act, a majority of its members shall be “outside” Directors, as defined under the Companies Act. In addition, pursuant to the Companies Act, no member of the Committee shall be a Director of the company or any of its subsidiaries who is engaged in the business operations of the company or such subsidiary, as the case may be, or a corporate executive officer of the company or any of its subsidiaries, or an accounting counselor, general manager or other employee of any of such subsidiaries. Sony Group Corporation’s Board Charter also requires each member of the Audit Committee to meet the independence requirements of the applicable U.S. securities laws and regulations, and requires at least one member to meet the audit committee financial expert requirements. Currently, all the members of Sony Group Corporation’s Audit Committee are also “independent” as defined in the NYSE Corporate Governance Standards, and two members of the Committee are qualified as audit committee financial experts. | |
|
NYSE Standards |
Sony’s Corporate Governance Practices | |
Equity Compensation Plans. |
Under the Companies Act, if Sony Group Corporation wishes to adopt an equity compensation plan under which stock acquisition rights or shares of common stock are granted on specially favorable conditions, except where all of its shareholders are granted rights to subscribe for such stock acquisition rights/shares of common stock or such stock acquisition rights/shares of common stock are gratuitously allocated to all of its shareholders, each on a pro rata basis, then Sony Group Corporation must obtain shareholder approval by a “special resolution” at a General Meeting of Shareholders, where the quorum is one-third of the total number of voting rights of all of its shareholders and the approval by at least two-thirds of the number of voting rights of all the shareholders represented at the meeting is required under Sony Group Corporation’s Articles of Incorporation.On the other hand, under the Companies Act, if Sony Group Corporation wishes to adopt an equity compensation plan under which stock acquisition rights or shares of common stock are granted against fair value thereof, such plan can be adopted by the resolution of Sony Group Corporation’s Compensation Committee, and grants of stock acquisition rights or shares pursuant to such plan may be decided by a resolution of the Board of Directors or a determination by a Corporate Executive Officer to whom the authority to make such determination has been delegated, and no shareholder approval is required. | |
| ||
Corporate Governance Guidelines. |
Sony Group Corporation is required to disclose the status of its corporate governance under the Companies Act, Financial Instruments and Exchange Act and its related regulations, and the Securities Listing Regulations of the TSE; however, Sony Group Corporation does not have corporate governance guidelines that cover all the requirements described in the NYSE Corporate Governance Standards, as many of the provisions do not apply to Sony Group Corporation. Details of the status are posted on the following website: https://www.sony.net/SonyInfo/csr_report/governance/ | |
| ||
Code of Ethics. |
Although this provision of the NYSE Corporate Governance Standards does not apply to Sony Group Corporation, Sony Group Corporation has adopted a code of conduct to be observed by all its directors, officers and other employees. The code of conduct is available at: (The latest version of Sustainability Report – Ethics and Compliance / The Sony Group Code of Conduct) https://www.sony.com/en/SonyInfo/csr/library/ reports/ The code’s content covers principal items described in the NYSE Corporate Governance Standards. | |
|
Item 16H. |
Mine Safety Disclosure |
Item 16I. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 17. |
Financial Statements |
Item 18. |
Financial Statements |
Item 19. |
Exhibits |
1.1 | ||
1.2 | ||
1.3 | ||
2.1 | ||
2.2 | ||
2.3 | ||
8.1 | ||
12.1 | ||
12.2 | ||
13.1 | ||
15.1 | ||
101.INS | Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | The cover page for the Company’s Annual Report on Form 20-F for the fiscal year ended March 31, 2022, has been formatted in Inline XBRL |
SONY GROUP CORPORATION | ||
(Registrant) | ||
By: |
/s/ HIROKI TOTOKI | |
(Signature) | ||
Hiroki Totoki | ||
Executive Deputy President and Chief Financial Officer |
Page | ||
F-2 | ||
F-6 | ||
F-8 | ||
F-9 | ||
F-10 | ||
F-11 | ||
F-13 | ||
F-14 |
Yen in millions |
||||||||||||||
Note |
April 1, 2020 |
March 31, 2021 |
March 31, 2022 |
|||||||||||
ASSETS |
||||||||||||||
Current assets: |
||||||||||||||
Cash and cash equivalents |
27 | |||||||||||||
Investments and advances in the Financial Services segment (including assets pledged that secured parties are permitted to sell or repledge of |
5, 14 | |||||||||||||
Trade and other receivables, and contract assets |
5, 22 | |||||||||||||
Inventories |
7 | |||||||||||||
Other financial assets |
5 | |||||||||||||
Other current assets |
19 | |||||||||||||
Total current assets |
||||||||||||||
Non-current assets: |
||||||||||||||
Investments accounted for using the equity method |
8 | |||||||||||||
Investments and advances in the Financial Services segment (including assets pledged that secured parties are permitted to sell or repledge of |
5, 14 | |||||||||||||
Property, plant and equipment |
9 | |||||||||||||
Right-of-use |
10 | |||||||||||||
Goodwill |
11 | |||||||||||||
Content assets |
11 | |||||||||||||
Other intangible assets |
11 | |||||||||||||
Deferred insurance acquisition costs |
13 | |||||||||||||
Deferred tax assets |
25 | |||||||||||||
Other financial assets |
5 | |||||||||||||
Other non-current assets |
19 | |||||||||||||
Total non-current assets |
||||||||||||||
Total assets |
Yen in millions |
||||||||||||||
Note |
April 1, 2020 |
March 31, 2021 |
March 31, 2022 |
|||||||||||
LIABILITIES |
||||||||||||||
Current liabilities: |
||||||||||||||
Short-term borrowings |
5, 14 | |||||||||||||
Current portion of long-term debt |
5, 14 | |||||||||||||
Trade and other payables |
5 | |||||||||||||
Deposits from customers in the banking business |
5 | |||||||||||||
Income taxes payables |
||||||||||||||
Participation and residual liabilities in the Pictures segment |
18 | |||||||||||||
Other financial liabilities |
5 | |||||||||||||
Other current liabilities |
19 | |||||||||||||
Total current liabilities |
||||||||||||||
Non-current liabilities: |
||||||||||||||
Long-term debt |
5, 14 | |||||||||||||
Defined benefit liabilities |
17 | |||||||||||||
Deferred tax liabilities |
25 | |||||||||||||
Future insurance policy benefits and other |
13 | |||||||||||||
Policyholders’ account in the life insurance business |
13 | |||||||||||||
Participation and residual liabilities in the Pictures segment |
18 | |||||||||||||
Other financial liabilities |
5 | |||||||||||||
Other non-current liabilities |
19 | |||||||||||||
Total non-current liabilities |
||||||||||||||
Total liabilities |
||||||||||||||
EQUITY |
||||||||||||||
Sony Group Corporation’s stockholders’ equity: |
20 | |||||||||||||
Common stock |
||||||||||||||
Additional paid-in capital |
||||||||||||||
Retained earnings |
||||||||||||||
Accumulated other comprehensive income |
||||||||||||||
Treasury stock, at cost |
( |
) | ( |
) | ( |
) | ||||||||
Equity attributable to Sony Group Corporation’s stockholders |
||||||||||||||
Noncontrolling interests |
||||||||||||||
Total equity |
||||||||||||||
Total liabilities and equity |
Yen in millions |
||||||||||
Fiscal year ended March 31 |
||||||||||
Note |
2021 |
2022 |
||||||||
Sales and financial services revenue: |
||||||||||
Sales |
22 | |||||||||
Financial services revenue |
5, |
|||||||||
Total sales and financial services revenue |
||||||||||
Costs and expenses: |
||||||||||
Cost of sales |
7, 17, 23 | |||||||||
Selling, general and administrative |
17, |
|||||||||
Financial services expenses |
5, |
|||||||||
Other operating (income) expense, net |
23, |
( |
) | |||||||
Total costs and expenses |
||||||||||
Share of profit (loss) of investments accounted for using the equity method |
8 |
|||||||||
Operating income |
||||||||||
Financial income |
24 | |||||||||
Financial expenses |
24 | |||||||||
Income before income taxes |
||||||||||
Income taxes |
25 | ( |
) | |||||||
Net income |
||||||||||
Net income attributable to |
||||||||||
Sony Group Corporation’s stockholders |
||||||||||
Noncontrolling interests |
||||||||||
Yen |
||||||||||
Fiscal year ended March 31 |
||||||||||
Note |
2021 |
2022 |
||||||||
Per share data: |
26 |
|||||||||
Net income attributable to Sony Group Corporation’s stockholders |
||||||||||
— Basic |
||||||||||
— Diluted |
Yen in millions |
||||||||||
Fiscal year ended March 31 |
||||||||||
Note |
2021 |
2022 |
||||||||
Net income |
|
|||||||||
Other comprehensive income, net of tax — |
20 | |||||||||
Items that will not be reclassified to profit or loss |
||||||||||
Changes in equity instruments measured at fair value through other comprehensive income |
( |
) | ||||||||
Remeasurement of defined benefit pension plans |
||||||||||
Share of other comprehensive income of investments accounted for using the equity method |
||||||||||
Items that may be reclassified subsequently to profit or loss |
||||||||||
Changes in debt instruments measured at fair value through other comprehensive income |
( |
) | ( |
) | ||||||
Cash flow hedges |
||||||||||
Insurance contract valuation adjustments |
( |
) | ||||||||
Exchange differences on translating foreign operations |
||||||||||
Share of other comprehensive income of investments accounted for using the equity method |
||||||||||
Total other comprehensive income, net of tax |
( |
) | ||||||||
Comprehensive income |
||||||||||
Comprehensive income attributable to |
||||||||||
Sony Group Corporation’s stockholders |
||||||||||
Noncontrolling interests |
( |
) |
Yen in millions |
||||||||||||||||||||||||||||||||||||
Note |
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, 2020 |
( |
) | ||||||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
20 | ( |
) | |||||||||||||||||||||||||||||||||
Total comprehensive income |
( |
) | ||||||||||||||||||||||||||||||||||
Transfer to retained earnings |
( |
) | — | — | ||||||||||||||||||||||||||||||||
Transactions with stockholders and other: |
||||||||||||||||||||||||||||||||||||
Exercise of stock acquisition rights |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Conversion of convertible bonds |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Dividends declared ( |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchase of treasury stock |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Reissuance of treasury stock |
||||||||||||||||||||||||||||||||||||
Transactions with noncontrolling interests shareholders and other |
20 | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Balance at March 31, 2021 |
( |
) | ||||||||||||||||||||||||||||||||||
Yen in millions |
||||||||||||||||||||||||||||||||||||
Note |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income |
Treasury stock, at cost |
Sony Group Corporation’s stockholders’ equity |
Noncontrolling interests |
Total equity |
||||||||||||||||||||||||||||
Balance at April 1, 2021 |
( |
) | ||||||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
20 | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Total comprehensive income |
( |
) | ||||||||||||||||||||||||||||||||||
Transfer to retained earnings |
( |
) | — | — | ||||||||||||||||||||||||||||||||
Transactions with stockholders and other: |
||||||||||||||||||||||||||||||||||||
Issuance of new shares |
||||||||||||||||||||||||||||||||||||
Exercise of stock acquisition rights |
||||||||||||||||||||||||||||||||||||
Conversion of convertible bonds |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Dividends declared ( |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchase of treasury stock |
20 |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Reissuance of treasury stock |
||||||||||||||||||||||||||||||||||||
Transactions with noncontrolling interests shareholders and other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Balance at March 31, 2022 |
( |
) |
Yen in millions |
||||||||||||
Fiscal year ended March 31 |
||||||||||||
Note |
2021 |
2022 |
||||||||||
Cash flows from operating activities: |
||||||||||||
Income before income taxes |
||||||||||||
Adjustments to reconcile income before income taxes to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization, including amortization of contract costs |
||||||||||||
Amortization of deferred insurance acquisition costs |
||||||||||||
Other operating (income) expense, net |
2 3 |
( |
) | |||||||||
(Gain) loss on securities, net (other than Financial Services segment) |
24 |
( |
) | |||||||||
Share of profit of investments accounted for using the equity method, net of dividends |
( |
) | ( |
) | ||||||||
Change in future insurance policy benefits and other |
||||||||||||
Change in policyholders’ account in the life insurance business, less cash impact |
||||||||||||
Net cash impact of policyholders’ account in the life insurance business |
||||||||||||
Changes in assets and liabilities: |
||||||||||||
Increase in trade receivables and contract assets |
( |
) | ( |
) | ||||||||
Increase in inventories |
( |
) | ( |
) | ||||||||
Increase in investments and advances in the Financial Services segment |
( |
) | ( |
) | ||||||||
Increase in content assets |
( |
) | ( |
) | ||||||||
Increase in deferred insurance acquisition costs |
( |
) | ( |
) | ||||||||
Increase in trade payables |
||||||||||||
Increase in deposits from customers in the banking business |
||||||||||||
Increase in borrowings in the life insurance business and the banking business |
||||||||||||
Increase in other financial assets and other current assets |
( |
) | ( |
) | ||||||||
Increase in other financial liabilities and other current liabilities |
||||||||||||
Income taxes paid |
25 |
( |
) | ( |
) | |||||||
Other |
( |
) | ( |
) | ||||||||
Net cash provided by operating activities |
|
|
Yen in millions |
||||||||||||
Fiscal year ended March 31 |
||||||||||||
Note |
2021 |
2022 |
||||||||||
Cash flows from investing activities: |
||||||||||||
Payments for property, plant and equipment and other intangible assets |
( |
) | ( |
) | ||||||||
Proceeds from sales of property, plant and equipment and other intangible assets |
||||||||||||
Payments for investments and advances (other than Financial Services segment) |
( |
) | ( |
) | ||||||||
Proceeds from sales or return of investments and collections of advances (other than Financial Services segment) |
||||||||||||
Payments for purchases of businesses |
( |
) | ( |
) | ||||||||
Proceeds from sales of businesses |
||||||||||||
Other |
( |
) | ( |
) | ||||||||
Net cash used in investing activities |
( |
) | ( |
) | ||||||||
Cash flows from financing activities: |
||||||||||||
Increase (decrease) in short-term borrowings, net |
14, 27 |
( |
) | |||||||||
Proceeds from issuance of long-term debt |
14, 27 |
|||||||||||
Payments of long-term debt |
14, 27 |
( |
) | ( |
) | |||||||
Proceeds from issuance of short-term borrowings in connection with payment for purchase of noncontrolling interest in Sony Financial Group Inc. |
||||||||||||
Payments of short-term borrowings in connection with payment for purchase of noncontrolling interest in Sony Financial Group Inc. |
( |
) | ||||||||||
Dividends paid |
( |
) | ( |
) | ||||||||
Payments for purchase s of treasury stock |
20 | ( |
) | ( |
) | |||||||
Payment for purchase of noncontrolling interest in Sony Financial Group Inc. |
20 | ( |
) | |||||||||
Other |
( |
) | ( |
) | ||||||||
Net cash used in financing activities |
( |
) | ( |
) | ||||||||
Effect of exchange rate changes on cash and cash equivalents |
||||||||||||
Net increase in cash and cash equivalents |
||||||||||||
Cash and cash equivalents at beginning of the fiscal year |
27 |
|||||||||||
Cash and cash equivalents at end of the fiscal year |
27 |
|
|
Page |
||||||||
Notes to Consolidated Financial Statements |
||||||||
1. |
F-14 |
|||||||
2. |
F-14 |
|||||||
3. |
F-15 |
|||||||
4. |
F-30 |
|||||||
5. |
F-35 |
|||||||
6. |
F-46 |
|||||||
7. |
F-58 |
|||||||
8. |
F-58 |
|||||||
9. |
F-60 |
|||||||
10. |
F-61 |
|||||||
11. |
F-62 |
|||||||
12. |
F-65 |
|||||||
13. |
F-66 |
|||||||
14. |
F-75 |
|||||||
15. |
F-76 |
|||||||
16. |
F-80 |
|||||||
17. |
F-81 |
|||||||
18. |
F-87 |
|||||||
19. |
F-88 |
|||||||
20. |
F-89 |
|||||||
21. |
F-92 |
|||||||
22. |
F-95 |
|||||||
23. |
F-96 |
|||||||
24. |
F-97 |
|||||||
25. |
F-97 |
|||||||
26. |
F-102 |
|||||||
27. |
F-102 |
|||||||
28. |
F-104 |
|||||||
29. |
F-106 |
|||||||
30. |
F-107 |
|||||||
31. |
F-108 |
|||||||
32. |
F-109 |
|||||||
33. |
F-110 |
|||||||
34. |
F-111 |
|||||||
35. |
F-125 |
1. |
Reporting entity |
2. |
Basis of preparation |
• |
Classification of financial instruments (Note 3 I (5)) |
• |
Fair value of financial instruments (Note 3 I (5) and (15) and Note 5) |
• |
Impairment of non-financial assets (Note 3 I (10) and Note 12) |
• |
Measurement of deferred insurance acquisition costs, future insurance policy benefits, and policyholders’ account in the life insurance business (Note 3 I (11) and Note 13) |
• |
Measurement of film costs and participation and residual liabilities in the Pictures segment (Note 3 I (9) and (12), Note 11, and Note 18) |
• |
Recoverability of deferred tax assets (Note 3 I (23) and Note 25) |
• |
Measurement of fair value of assets acquired and liabilities assumed in business combinations (Note 3 I (2) and Note 30) |
3. |
Summary of significant accounting policies |
I. |
Significant accounting policies |
(1) |
Basis of consolidation - |
i) | Subsidiaries |
ii) | Associates and joint ventures |
iii) | Joint operations |
iv) | Structured entities |
(2) |
Business combinations - |
(3) |
Foreign currency translation - |
i) | Foreign currency transactions |
ii) | Foreign operations |
(4) |
Cash and cash equivalents - |
(5) |
Financial instruments - |
i) | Non-derivative financial assets |
a. | Classification and measurement |
b. | Derecognition |
c. | Impairment |
ii) | Non-derivative financial liabilities |
iii) | Derivative financial instruments and hedge accounting |
iv) | Offsetting a financial asset and a financial liability |
(6) |
Inventories - |
(7) |
Property, plant and equipment and depreciation - |
(8) |
Leases - |
(9) |
Intangible assets and amortization, including content assets - |
( 10) |
Impairment of non-financial assets - |
(11) |
Insurance-related accounts - |
i) | Deferred insurance acquisition costs |
ii) | Future insurance policy benefits |
iii) | Policyholders’ account in the life insurance business |
iv) | Insurance-related accounts measured at fair value |
v) | Shadow accounting in the life insurance business |
(12) |
Provisions - |
i) | Participation and residual liabilities in the Pictures segment |
ii) | Product warranties |
(13) |
Employee benefits - |
i) | Post-employment benefits |
ii) | Short-term employee benefits |
(14) |
Stock-based compensation - |
i) | Stock option plan |
ii) | Restricted stock plan |
(15) |
Fair value measurement - |
Level 1 |
— |
Inputs are unadjusted quoted prices for identical assets and liabilities in active markets. | ||
Level 2 |
— |
Inputs are based on observable inputs other than Level 1 prices, such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets. | ||
Level 3 |
— |
One or more significant inputs are unobservable. |
(16) |
Revenue recognition - |
(17) |
Cost of sales - |
(18) |
Research and development expenditures - |
(19) |
Selling, general and administrative - |
(20) |
Financial services expenses - |
(21) |
Advertising costs - |
(22) |
Shipping and handling costs - |
(23) |
Income taxes - |
(24) |
Net income (loss) attributable to Sony Group Corporation’s stockholders per share (“EPS”) - |
II. |
New accounting standards and interpretations not yet adopted |
4. |
Business segment information |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Sales and financial services revenue: |
||||||||
Game & Network Services — |
||||||||
Customers |
||||||||
Intersegment |
||||||||
Total |
||||||||
Music — |
||||||||
Customers |
||||||||
Intersegment |
||||||||
Total |
||||||||
Pictures — |
||||||||
Customers |
||||||||
Intersegment |
||||||||
Total |
||||||||
Electronics Products & Solutions — |
||||||||
Customers |
||||||||
Intersegment |
||||||||
Total |
||||||||
Imaging & Sensing Solutions — |
||||||||
Customers |
||||||||
Intersegment |
||||||||
Total |
||||||||
Financial Services — |
||||||||
Customers |
||||||||
Intersegment |
||||||||
Total |
||||||||
All Other — |
||||||||
Customers |
||||||||
Intersegment |
||||||||
Total |
||||||||
Corporate and elimination |
( |
) | ( |
) | ||||
Consolidated total |
||||||||
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Operating income (loss): |
||||||||
Game & Network Services |
||||||||
Music |
||||||||
Pictures |
||||||||
Electronics Products & Solutions |
||||||||
Imaging & Sensing Solutions |
||||||||
Financial Services |
||||||||
All Other |
||||||||
Total |
||||||||
Corporate and elimination |
( |
) | ( |
) | ||||
Consolidated operating income |
||||||||
Financial income |
||||||||
Financial expenses |
( |
) | ( |
) | ||||
Consolidated income before income taxes |
||||||||
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Share of profit (loss) of investments accounted for using the equity method: |
||||||||
Game & Network Services |
— | |||||||
Music |
||||||||
Pictures |
( |
) | ||||||
Electronics Products & Solutions |
||||||||
Imaging & Sensing Solutions |
( |
) | ( |
) | ||||
Financial Services |
— | |||||||
All Other |
||||||||
Consolidated total |
||||||||
Depreciation and amortization: |
||||||||
Game & Network Services |
||||||||
Music |
||||||||
Pictures |
||||||||
Electronics Products & Solutions |
||||||||
Imaging & Sensing Solutions |
||||||||
Financial Services, including deferred insurance acquisition costs |
||||||||
All Other |
||||||||
Total |
||||||||
Corporate |
||||||||
Consolidated total |
|
|
||||||
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Sales and financial services revenue: |
||||||||
Game & Network Services |
||||||||
Digital Software and Add-on Content |
||||||||
Network Services |
||||||||
Hardware and Others |
||||||||
|
|
|
|
|||||
Total |
||||||||
Music |
||||||||
Recorded Music — Streaming |
||||||||
Recorded Music — Others |
||||||||
Music Publishing |
||||||||
Visual Media and Platform |
||||||||
|
|
|
|
|||||
Total |
||||||||
Pictures |
||||||||
Motion Pictures |
||||||||
Television Productions |
||||||||
Media Networks |
||||||||
|
|
|
|
|||||
Total |
||||||||
Electronics Products & Solutions |
||||||||
Televisions |
||||||||
Audio and Video |
||||||||
Still and Video Cameras |
||||||||
Mobile Communications |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total |
||||||||
Imaging & Sensing Solutions |
||||||||
Financial Services |
||||||||
All Other |
||||||||
Corporate |
||||||||
|
|
|
|
|||||
Consolidated total |
||||||||
|
|
|
|
Yen in millions | ||||||||||||
Fiscal year ended March 31 | ||||||||||||
2021 |
2022 |
|||||||||||
Sales and financial services revenue: |
||||||||||||
Japan |
||||||||||||
United States |
||||||||||||
Europe |
||||||||||||
China |
||||||||||||
Asia-Pacific |
||||||||||||
Other Areas |
||||||||||||
|
|
|
|
|||||||||
Total |
||||||||||||
|
|
|
|
|||||||||
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Non-current assets (property, plant and equipment, right-of-use |
||||||||||||
Japan |
||||||||||||
United States |
||||||||||||
Europe |
||||||||||||
China |
||||||||||||
Asia-Pacific |
||||||||||||
Other Areas |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
(1) Europe: |
United Kingdom, France, Germany, Russia, Spain and Italy | |
(2) Asia-Pacific: |
India, South Korea, Oceania, Thailand and Malaysia | |
(3) Other Areas: |
The Middle East/Africa, Brazil, Mexico and Canada |
5. |
Financial instruments |
(1) |
Financial instruments by measurement method |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Assets: |
||||||||||||
Financial assets required to be measured at amortized cost (“AC”) |
||||||||||||
Investments and advances in the Financial Services segment |
||||||||||||
Debt securities |
||||||||||||
Housing loans in the banking business |
||||||||||||
Other loans |
||||||||||||
Trade and other receivables * |
||||||||||||
Trade receivables |
||||||||||||
Other receivables |
||||||||||||
Other financial assets |
||||||||||||
Time deposit |
||||||||||||
Security deposit |
||||||||||||
Non-current other receivables in the Pictures segment |
||||||||||||
Other |
||||||||||||
Financial assets required to be measured at fair value through profit or loss (“FVPL”) |
||||||||||||
Investments and advances in the Financial Services segment |
||||||||||||
Debt securities |
||||||||||||
Equity securities |
||||||||||||
Other financial assets |
||||||||||||
Debt securities |
||||||||||||
Equity securities |
||||||||||||
Derivative assets |
||||||||||||
Financial assets designated to be measured at FVPL |
||||||||||||
Investments and advances in the Financial Services segment |
||||||||||||
Debt securities |
||||||||||||
Financial assets required to be measured at fair value through other comprehensive income (“FVOCI”) |
||||||||||||
Investments and advances in the Financial Services segment |
||||||||||||
Debt securities |
||||||||||||
Other financial assets |
||||||||||||
Debt securities |
||||||||||||
Financial assets designated to be measured at FVOCI |
||||||||||||
Investments and advances in the Financial Services segment |
||||||||||||
Equity securities |
||||||||||||
Other financial assets |
||||||||||||
Equity securities |
||||||||||||
|
|
|
|
|
|
|||||||
Total assets |
||||||||||||
Current assets |
||||||||||||
Non-current assets |
* | The amounts of trade and other receivables exclude contract assets within trade and other receivables, and contract assets in the consolidated statements of financial position. |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Liabilities: |
||||||||||||
Financial liabilities required to be measured at AC |
||||||||||||
Short-term borrowings |
||||||||||||
Current portion of long-term debt |
||||||||||||
Trade and other payables |
||||||||||||
Trade payables |
||||||||||||
Other payables |
||||||||||||
Deposits from customers in the banking business * |
||||||||||||
Long-term debt |
||||||||||||
Other financial liabilities |
||||||||||||
Financial liabilities required to be measured at FVPL |
||||||||||||
Other financial liabilities |
||||||||||||
Derivative liabilities |
||||||||||||
Contingent consideration |
||||||||||||
Financial liabilities designated to be measured at FVPL |
||||||||||||
Other financial liabilities |
||||||||||||
Redeemable noncontrolling interests |
||||||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
||||||||||||
Current liabilities |
||||||||||||
Non-current liabilities |
|
|
|
* | Deposits from customers in the banking business include the non-current portion that is recorded within other financial liabilities in the consolidated statements of financial position. |
(2) |
Financial instruments measured at fair value on a recurring basis |
Yen in millions |
||||||||||||||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||||||||||||||
Presentation in the consolidated statements of financial position |
||||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Investments and advances in the Financial Services segment (Current) |
Other financial assets (Current) |
Investments and advances in the Financial Services segment (Non-current) |
Other financial assets (Non-current) |
|||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | |||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | |||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | ||||||||||||||||||||||||||||||
Securitized products |
— | — | — | — | — | |||||||||||||||||||||||||||
Investment funds |
— | — | — | |||||||||||||||||||||||||||||
Equity securities |
— | — | ||||||||||||||||||||||||||||||
Derivative assets |
||||||||||||||||||||||||||||||||
Interest rate contracts |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign exchange contracts |
— | — | — | |||||||||||||||||||||||||||||
Equity contracts |
— | — | — | |||||||||||||||||||||||||||||
Other |
— | — | — | — | — | |||||||||||||||||||||||||||
Financial assets designated to be measured at FVPL |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | — | |||||||||||||||||||||||||||||
Financial assets required to be measured at FVOCI |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | |||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | |||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | ||||||||||||||||||||||||||||||
Securitized products |
— | — | — | — | ||||||||||||||||||||||||||||
Financial assets designated to be measured at FVOCI |
||||||||||||||||||||||||||||||||
Equity securities |
— | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
|
|||||||||||||||||||||||||||||||
Presentation in the consolidated statements of financial position |
||||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Other financial liabilities (Current) |
Other financial liabilities (Non-current) |
|||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL |
||||||||||||||||||||||||||||||||
Derivative liabilities |
||||||||||||||||||||||||||||||||
Interest rate contracts |
— | — | ||||||||||||||||||||||||||||||
Foreign exchange contracts |
— | |||||||||||||||||||||||||||||||
Equity contracts |
— | — | — | |||||||||||||||||||||||||||||
Other |
— | — | — | |||||||||||||||||||||||||||||
Contingent consideration |
— | — | ||||||||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL |
||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests |
— | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total liabilities |
Yen in millions |
||||||||||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||||||||||
Presentation in the consolidated statements of financial position |
||||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Investments and advances in the Financial Services segment (Current) |
Other financial assets (Current) |
Investments and advances in the Financial Services segment (Non-current) |
Other financial assets (Non-current) |
|||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | |||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | ||||||||||||||||||||||||||||||
Securitized products |
— | — | — | — | — | |||||||||||||||||||||||||||
Investment funds |
— | — | — | |||||||||||||||||||||||||||||
Equity securities |
— | |||||||||||||||||||||||||||||||
Derivative assets |
||||||||||||||||||||||||||||||||
Interest rate contracts |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign exchange contracts |
— | — | — | |||||||||||||||||||||||||||||
Equity contracts |
— | — | — | |||||||||||||||||||||||||||||
Other |
— | — | — | — | — | |||||||||||||||||||||||||||
Financial assets designated to be measured at FVPL |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Financial assets required to be measured at FVOCI |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | |||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | ||||||||||||||||||||||||||||||
Securitized products |
— | — | — | — | ||||||||||||||||||||||||||||
Other |
— | — | — | — | ||||||||||||||||||||||||||||
Financial assets designated to be measured at FVOCI |
||||||||||||||||||||||||||||||||
Equity securities |
— | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
||||||||||||||||||||||||||||||||
Presentation in the consolidated statements of financial position |
||||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Other financial liabilities (Current) |
Other financial liabilities (Non-current) |
|||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL |
||||||||||||||||||||||||||||||||
Derivative liabilities |
||||||||||||||||||||||||||||||||
Interest rate contracts |
— | — | ||||||||||||||||||||||||||||||
Foreign exchange contracts |
— | — | ||||||||||||||||||||||||||||||
Equity contracts |
— | — | ||||||||||||||||||||||||||||||
Other |
— | — | — | |||||||||||||||||||||||||||||
Contingent consideration |
— | — | ||||||||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL |
||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests |
— | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total liabilities |
Yen in millions |
||||||||||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||||||||||
Presentation in the consolidated statements of financial position |
||||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Investments and advances in the Financial Services segment (Current) |
Other financial assets (Current) |
Investments and advances in the Financial Services segment (Non-current) |
Other financial assets (Non-current) |
|||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | |||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Securitized products |
— | — | — | — | — | |||||||||||||||||||||||||||
Investment funds |
— | — | ||||||||||||||||||||||||||||||
Equity securities |
— | — | ||||||||||||||||||||||||||||||
Derivative assets |
||||||||||||||||||||||||||||||||
Interest rate contracts |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign exchange contracts |
— | — | — | — | ||||||||||||||||||||||||||||
Equity contracts |
— | — | — | — | ||||||||||||||||||||||||||||
Financial assets designated to be measured at FVPL |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | — | |||||||||||||||||||||||||||||
Financial assets required to be measured at FVOCI |
||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||
Japanese national government bonds |
— | — | — | — | — | |||||||||||||||||||||||||||
Japanese local government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | |||||||||||||||||||||||||||||
Foreign government bonds |
— | — | — | — | ||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | ||||||||||||||||||||||||||||||
Securitized products |
— | — | — | — | ||||||||||||||||||||||||||||
Financial assets designated to be measured at FVOCI |
||||||||||||||||||||||||||||||||
Equity securities |
— | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
||||||||||||||||||||||||||||||||
Presentation in the consolidated statements of financial position |
||||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Other financial liabilities (Current) |
Other financial liabilities (Non-current) |
|||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL |
||||||||||||||||||||||||||||||||
Derivative liabilities |
||||||||||||||||||||||||||||||||
Interest rate contracts |
— | — | ||||||||||||||||||||||||||||||
Foreign exchange contracts |
— | — | — | |||||||||||||||||||||||||||||
Equity contracts |
— | — | ||||||||||||||||||||||||||||||
Contingent consideration |
— | — | ||||||||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL |
||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests |
— | — | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total liabilities |
Valuation technique(s) |
Significant unobservable inputs |
Range |
||||||||||||||||||
April 1, 2020 |
March 31, 2021 |
March 31, 2022 |
||||||||||||||||||
Financial assets required to be measured at FVOCI |
||||||||||||||||||||
Debt securities |
||||||||||||||||||||
Japanese corporate bonds |
Discounted cash flow |
|
Credit spread * | |||||||||||||||||
Foreign corporate bonds |
||||||||||||||||||||
Securitized products |
* | bp = basis point |
Yen in millions |
||||||||||||||||||||||||||||||||||||
Fiscal year ended March 31, 2021 |
||||||||||||||||||||||||||||||||||||
Total gains (losses) *1 |
||||||||||||||||||||||||||||||||||||
Beginning balance |
Net income *2 |
Other comprehensive income *3 |
Purchases |
Sales and settlements |
Transfers to Level 3 *4 |
Transfers out of Level 3 *5 |
Other |
Ending balance |
||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL |
||||||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||
Securitized products |
— | — | ( |
) | — | — | — | |||||||||||||||||||||||||||||
Investment funds |
( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||||
Equity securities |
( |
) | — | ( |
) | — | ||||||||||||||||||||||||||||||
Derivative assets |
||||||||||||||||||||||||||||||||||||
Equity contracts |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Financial assets designated to be measured at FVPL |
||||||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||||||
Foreign corporate bonds |
( |
) | — | — | ( |
) | — | — | — | — | ||||||||||||||||||||||||||
Financial assets required to be measured at FVOCI |
||||||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||||||
Japanese corporate bonds |
— | ( |
) | — | — | — | — | |||||||||||||||||||||||||||||
Foreign corporate bonds |
( |
) | — | ( |
) | |||||||||||||||||||||||||||||||
Securitized products |
— | ( |
) | — | — | |||||||||||||||||||||||||||||||
Financial assets designated to be measured at FVOCI |
||||||||||||||||||||||||||||||||||||
Equity securities |
|
— | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL |
||||||||||||||||||||||||||||||||||||
Contingent consideration |
( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL |
||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests |
( |
) | — | — | — |
Yen in millions |
||||||||||||||||||||||||||||||||||||
Fiscal year ended March 31, 2022 |
||||||||||||||||||||||||||||||||||||
Total gains (losses) *1 |
||||||||||||||||||||||||||||||||||||
Beginning balance |
Net income *2 |
Other comprehensive income *3 |
Purchases |
Sales and settlements |
Transfers to Level 3 *4 |
Transfers out of Level 3 *5 |
Other |
Ending balance |
||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||
Financial assets required to be measured at FVPL |
||||||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||||||
Japanese corporate bonds |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | — | — | ( |
) | ||||||||||||||||||||||||||||||
Securitized products |
— | — | — | ( |
) | — | — | — | ||||||||||||||||||||||||||||
Investment funds |
( |
) | — | — | — | |||||||||||||||||||||||||||||||
Equity securities |
( |
) | ( |
) | ( |
) | — | — | — | |||||||||||||||||||||||||||
Derivative assets |
||||||||||||||||||||||||||||||||||||
Equity contracts |
( |
) | — | — | — | — | — | |||||||||||||||||||||||||||||
Financial assets designated to be measured at FVPL |
||||||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||||||
Foreign corporate bonds |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Financial assets required to be measured at FVOCI |
||||||||||||||||||||||||||||||||||||
Debt securities |
||||||||||||||||||||||||||||||||||||
Japanese corporate bonds |
( |
) | ( |
) | — | — | — | — | ||||||||||||||||||||||||||||
Foreign corporate bonds |
( |
) | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||
Securitized products |
( |
) | ( |
) | ( |
) | — | |||||||||||||||||||||||||||||
Financial assets designated to be measured at FVOCI |
||||||||||||||||||||||||||||||||||||
Equity securities |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||
Financial liabilities required to be measured at FVPL |
||||||||||||||||||||||||||||||||||||
Contingent consideration |
( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||||
Financial liabilities designated to be measured at FVPL |
||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests |
( |
) | — | — | ( |
) |
*1 | For liability items, gains are presented as negative and losses are presented as positive. |
*2 | Gains (losses) recognized in net income are included in financial services revenue, financial income and financial expenses in the consolidated statements of income. |
*3 | Gains (losses) recognized in other comprehensive income are included in changes in equity instruments measured at fair value through other comprehensive income, changes in debt instruments measured at fair value through other comprehensive income and exchange differences on translating foreign operations in the consolidated statements of comprehensive income. |
*4 | Certain debt and equity securities were transferred to Level 3 because differences between the fair value determined by indicative quotes from dealers and the fair value determined by internally developed prices became significant and the observability of the inputs used decreased. |
*5 | Certain debt and equity securities were transferred from Level 3 because observable market data became available. |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Assets: |
||||||||
Financial assets required to be measured at FVPL |
||||||||
Debt securities |
||||||||
Foreign corporate bonds |
— | |||||||
Investment funds |
( |
) | ||||||
Equity securities |
( |
) | ||||||
Derivative assets |
||||||||
Equity contracts |
( |
) | ||||||
Financial assets designated to be measured at FVPL |
||||||||
Debt securities |
||||||||
Foreign corporate bonds |
— | |||||||
Financial assets required to be measured at FVOCI |
||||||||
Debt securities |
||||||||
Foreign corporate bonds |
||||||||
Securitized products |
||||||||
Liabilities: |
||||||||
Financial liabilities required to be measured at FVPL |
||||||||
Contingent consideration |
— | ( |
) | |||||
Financial liabilities designated to be measured at FVPL |
||||||||
Redeemable noncontrolling interests |
( |
) | ( |
) |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Marketable equity instruments |
||||||||||||
Non-marketable equity instruments |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Bilibili Inc. |
— | |
||||||||||
KADOKAWA Corporation |
— | |||||||||||
Toei Animation Co., Ltd. |
|
|||||||||||
Safie Inc. |
— | — | ||||||||||
ClearView Wealth Limited |
||||||||||||
Devolver Digital, Inc. |
— | — | ||||||||||
Chicken Soup for the Soul Entertainment, Inc. |
— |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Entertainment *1 |
||||||||||||
Manufacturing *2 |
|
|
|
|||||||||
Information technology, Communication and Service *3 |
*1 |
Major investments included were as follows: |
*2 |
Major investments included Nichia Corporation. |
*3 |
Major investments included MBS Media Holdings, Inc. |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Fair value at derecognition |
||||||||
Cumulative amount recognized in other comprehensive income, net of tax * |
( |
) | ||||||
Dividend received |
* | The cumulative amount recognized in other comprehensive income, net of tax , was transferred to retained earnings upon derecognition of the equity instruments. |
(3) |
Financial instruments measured at amortized cost |
Yen in millions |
||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||
Fair value |
Carrying amount |
|||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Total |
||||||||||||||||
Assets: |
||||||||||||||||||||
Debt securities |
||||||||||||||||||||
Japanese national government bonds |
— | — | ||||||||||||||||||
Japanese local government bonds |
— | — | ||||||||||||||||||
Japanese corporate bonds |
— | — | ||||||||||||||||||
Foreign corporate bonds |
— | — | ||||||||||||||||||
Securitized products |
— | — | ||||||||||||||||||
Other |
— | |||||||||||||||||||
Housing loans in the banking business |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
— | |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
||||||||||||||||||||
Long-term debt including the current portion |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
— |
Yen in millions |
||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||
Fair value |
Carrying amount |
|||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Total |
||||||||||||||||
Assets: |
||||||||||||||||||||
Debt securities |
||||||||||||||||||||
Japanese national government bonds |
— | — | ||||||||||||||||||
Japanese local government bonds |
— | — | ||||||||||||||||||
Japanese corporate bonds |
— | — | ||||||||||||||||||
Foreign corporate bonds |
— | — | ||||||||||||||||||
Securitized products |
— | — | ||||||||||||||||||
Other |
— | |||||||||||||||||||
Housing loans in the banking business |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
— | |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Long-term debt including the current portion |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Yen in millions |
||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||
Fair value |
Carrying amount |
|||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Total |
||||||||||||||||
Assets: |
||||||||||||||||||||
Debt securities |
||||||||||||||||||||
Japanese national government bonds |
— | — | ||||||||||||||||||
Japanese local government bonds |
— | — | ||||||||||||||||||
Japanese corporate bonds |
— | — | ||||||||||||||||||
Foreign corporate bonds |
— | — | ||||||||||||||||||
Securitized products |
— | — | ||||||||||||||||||
Other |
— | |||||||||||||||||||
Housing loans in the banking business |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Long-term debt including the current portion |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(4) |
Income and expenses related to financial instruments in the Financial Services segment |
Yen in millions |
||||||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||||||
Financial instruments required to be measured at FVPL |
Financial instruments designated to be measured at FVPL |
Financial assets measured at AC |
Financial liabilities measured at AC |
Debt instruments measured at FVOCI |
Equity instruments measured at FVOCI |
Total |
||||||||||||||||||||||
Income |
||||||||||||||||||||||||||||
Net gains (losses) recognized in profit or loss |
( |
) | ( |
) | — | |||||||||||||||||||||||
Total interest income |
— | — | — | — | ||||||||||||||||||||||||
Dividend income |
— | — | — | — | — | |||||||||||||||||||||||
Expenses |
||||||||||||||||||||||||||||
Total interest expenses |
— | — | — | — | — | |||||||||||||||||||||||
Impairment losses (gains) on financial assets |
— | — | ( |
) | — | — | ||||||||||||||||||||||
Yen in millions |
||||||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||||||
Financial instruments required to be measured at FVPL |
Financial instruments designated to be measured at FVPL |
Financial assets measured at AC |
Financial liabilities measured at AC |
Debt instruments measured at FVOCI |
Equity instruments measured at FVOCI |
Total |
||||||||||||||||||||||
Income |
||||||||||||||||||||||||||||
Net gains (losses) recognized in profit or loss |
( |
) | ( |
) | — | |||||||||||||||||||||||
Total interest income |
— | — | — | — | ||||||||||||||||||||||||
Dividend income |
— | — | — | — | — | |||||||||||||||||||||||
Expenses |
||||||||||||||||||||||||||||
Total interest expenses |
— | — | — | — | — | |||||||||||||||||||||||
Impairment losses (gains) on financial assets |
— | — | — | — |
6. |
Financial risk management |
(1) |
Capital management |
March 31 |
||||||||
2021 |
2022 |
|||||||
ROE* |
% | % |
* | ROE is calculated using equity attributable to Sony Group Corporation’s stockholders. |
(2) |
Interest rate risk |
(3) |
Price risk |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Income before income taxes |
( |
) | ( |
) | ( |
) | ||||||
Other comprehensive income (before considering the tax effects) |
( |
) | ( |
) | ( |
) |
(4) |
Liquidity risk |
Yen in millions |
||||||||||||||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||||||||||||||
Carrying amount |
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
5+ years |
|||||||||||||||||||||||||
Deposits from customers in the banking business *1 |
||||||||||||||||||||||||||||||||
Bonds |
|
|||||||||||||||||||||||||||||||
Borrowings |
|
|||||||||||||||||||||||||||||||
Loan commitments |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Derivative liabilities *2 |
||||||||||||||||||||||||||||||||
Guarantee deposits received |
— | |||||||||||||||||||||||||||||||
Redeemable noncontrolling interests |
— | — | — |
Yen in millions |
||||||||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||||||||
Carrying amount |
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
||||||||||||||||||||
Lease liabilities |
|
|||||||||||||||||||||||||
5 years to 6 years |
6 years to 7 years |
7 years to 8 years |
8 years to 9 years |
9 years to 10 years |
10+ years |
|||||||||||||||||||||
*1 | Demand deposits are included in the “Within 1 year” category. |
*2 | Breakdown of net settlements and gross settlements in the derivative liabilities are presented below. |
Yen in millions |
||||||||||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||||||||||
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
5+ years |
||||||||||||||||||||||
Derivative contracts |
||||||||||||||||||||||||||||
—Net settled |
||||||||||||||||||||||||||||
Paid |
||||||||||||||||||||||||||||
Derivative contracts |
||||||||||||||||||||||||||||
—Gross settled |
||||||||||||||||||||||||||||
Received |
— | — | — | |||||||||||||||||||||||||
Paid |
— | — | — |
Yen in millions |
||||||||||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||||||||||
Carrying amount |
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
5+ years |
|||||||||||||||||||||||||
Deposits from customers in the banking business *1 |
||||||||||||||||||||||||||||||||
Bonds |
||||||||||||||||||||||||||||||||
Borrowings |
|
|
||||||||||||||||||||||||||||||
Loan commitments |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Derivative liabilities *2 |
||||||||||||||||||||||||||||||||
Guarantee deposits received |
||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests |
— | — |
Yen in millions |
||||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||||
Carrying amount |
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
||||||||||||||||||||
Lease liabilities |
|
|||||||||||||||||||||||||
5 years to 6 years |
6 years to 7 years |
7 years to 8 years |
8 years to 9 years |
9 years to 10 years |
10+ years |
|||||||||||||||||||||
*1 | Demand deposits are included in the “Within 1 year” category. |
*2 | Breakdown of net settlements and gross settlements in the derivative liabilities are presented below. |
Yen in millions |
||||||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||||||
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
5+ years |
||||||||||||||||||||||
Derivative contracts |
||||||||||||||||||||||||||||
—Net settled |
||||||||||||||||||||||||||||
Paid |
||||||||||||||||||||||||||||
Derivative contracts |
||||||||||||||||||||||||||||
—Gross settled |
||||||||||||||||||||||||||||
Received |
— | — | — | — | — | — | — | |||||||||||||||||||||
Paid |
— | — | — | — | — | — | — |
Yen in millions |
||||||||||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||||||||||
Carrying amount |
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
5+ years |
|||||||||||||||||||||||||
Deposits from customers in the banking business *1 |
||||||||||||||||||||||||||||||||
Bonds |
||||||||||||||||||||||||||||||||
Borrowings |
||||||||||||||||||||||||||||||||
Loan commitments |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Derivative liabilities *2 |
||||||||||||||||||||||||||||||||
Guarantee deposits received |
||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests |
— |
Yen in millions |
||||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||||
Carrying amount |
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
||||||||||||||||||||
Lease liabilities |
|
|||||||||||||||||||||||||
5 years to 6 years |
6 years to 7 years |
7 years to 8 years |
8 years to 9 years |
9 years to 10 years |
10+ years |
|||||||||||||||||||||
*1 | Demand deposits are included in the “Within 1 year” category. |
*2 | Breakdown of net settlements and gross settlements in the derivative liabilities are presented below. |
Yen in millions |
||||||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||||||
Total |
Within 1 year |
1 year to 2 years |
2 years to 3 years |
3 years to 4 years |
4 years to 5 years |
5+ years |
||||||||||||||||||||||
Derivative contracts |
||||||||||||||||||||||||||||
—Net settled |
||||||||||||||||||||||||||||
Paid |
||||||||||||||||||||||||||||
Derivative contracts |
||||||||||||||||||||||||||||
—Gross settled |
||||||||||||||||||||||||||||
Received |
— | — | — | — | — | — | — | |||||||||||||||||||||
Paid |
— | — | — | — | — | — | — |
(5) |
Foreign exchange risk |
(i) | Foreign exchange risk exposure |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
U.S. dollar |
( |
) | ( |
) | ||||||||
Euro |
( |
) |
* | Net exposures resulting in a liability are presented as negative and net exposures resulting in an asset are presented as positive. |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
U.S. dollar |
|
( |
) | |||||||||
Euro |
( |
) | ( |
) |
(6) |
Credit risk |
(a) | Changes in the loss allowances |
Yen in millions |
||||||||
Lifetime expected credit losses |
||||||||
Fiscal year ended March 31 |
||||||||
202 1 |
202 2 |
|||||||
Balance at beginning of the fiscal year |
||||||||
|
|
|
|
|||||
Changes due to financial assets recognized at beginning of the fiscal year: |
||||||||
— Financial assets that have been derecognized |
( |
) | ( |
) | ||||
New financial assets originated or purchased |
||||||||
Write-offs |
( |
) | ( |
) | ||||
Changes in models/risk parameters |
||||||||
Foreign exchange and other movements |
||||||||
|
|
|
|
|||||
Balance at end of the fiscal year |
||||||||
|
|
|
|
|||||
Debt Securities |
||||||||
Yen in millions |
||||||||
12-month expected credit losses * |
||||||||
Fiscal year ended March 31 |
||||||||
202 1 |
202 2 |
|||||||
Balance at beginning of the fiscal year |
|
|
||||||
|
|
|
|
|||||
Changes due to financial assets recognized at beginning of the fiscal year: |
||||||||
— Financial assets that have been derecognized |
( |
) | ( |
) | ||||
New financial assets originated or purchased |
|
|||||||
Changes in models/risk parameters |
( |
) | ( |
) | ||||
Foreign exchange and other movements |
||||||||
|
|
|
|
|||||
Balance at end of the fiscal year |
||||||||
|
|
|
|
* | For all debt securities, Sony considers that the credit risk has not increased significantly since initial recognition, and therefore the loss allowance is measured at an amount equal to 12-months of expected credit losses. |
Yen in millions |
||||||||||||
12-month expected credit losses |
Lifetime expected credit losses |
Total |
||||||||||
Balance as of April 1, 2020 |
||||||||||||
Changes due to financial assets recognized as of April 1, 2020: |
||||||||||||
— Transfer to lifetime expected credit losses |
( |
) | ||||||||||
— Transfer to 12-month expected credit losses |
( |
) | ||||||||||
— Financial assets that have been derecognized |
( |
) | ( |
) | ( |
) | ||||||
New financial assets originated or purchased |
||||||||||||
Changes in models/risk parameters |
( |
) | ||||||||||
Foreign exchange and other movements |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Balance as of March 31, 2021 |
||||||||||||
|
|
|
|
|
|
|||||||
Changes due to financial assets recognized as of March 31, 2021: |
||||||||||||
— Transfer to lifetime expected credit losses |
( |
) | ||||||||||
— Transfer to 12-month expected credit losses |
( |
) | ||||||||||
— Financial assets that have been derecognized |
( |
) | ( |
) | ( |
) | ||||||
New financial assets originated or purchased |
||||||||||||
Changes in models/risk parameters |
( |
) | ||||||||||
Foreign exchange and other movements |
||||||||||||
|
|
|
|
|
|
|||||||
Balance as of March 31, 2022 |
||||||||||||
|
|
|
|
|
|
(b) | Description of collateral held as security and other credit enhancements |
• | Floating charges on all assets and businesses of the customer |
• | Specific or related guarantees |
• | Debt guarantees from customers and loan agreements with favorable and unfavorable covenant terms |
(c) | Credit risk exposure by risk rating grades |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Outstanding receivables by overview period of overdue (Gross carrying amount) |
||||||||||||
Not past due or due within 30 days |
||||||||||||
Due over 30 to 90 days |
||||||||||||
Due over 90 days |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
|
|
||||||||||
|
|
|
|
|
|
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Debt securities by credit ratings (Gross carrying amount) |
||||||||||||
AAA |
||||||||||||
AA |
||||||||||||
A |
||||||||||||
BBB |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
Yen in millions |
||||||||||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||||||||||
Normal* |
Other than Normal |
Total |
||||||||||||||||||||||||||
12-month expected credit losses |
Lifetime expected credit losses |
Sub total |
12-month expected credit losses |
Lifetime expected credit losses |
Sub total |
|||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||
Housing loans |
||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yen in millions |
||||||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||||||
Normal* |
Other than Normal |
Total |
||||||||||||||||||||||||||
12-month expected credit losses |
Lifetime expected credit losses |
Sub total |
12-month expected credit losses |
Lifetime expected credit losses |
Sub total |
|||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||
Housing loans |
||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yen in millions |
||||||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||||||
Normal* |
Other than Normal |
Total |
||||||||||||||||||||||||||
12-month expected credit losses |
Lifetime expected credit losses |
Sub total |
12-month expected credit losses |
Lifetime expected credit losses |
Sub total |
|||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||
Housing loans |
||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Normal is defined as borrowers who have strong results and no particular problems with their financial position. |
(d) | Credit risk for debt securities designated to be measured at fair value through profit or loss |
(7) |
Market risks for a subsidiary in the banking business |
(8) |
Effect of IBOR reform |
Yen in millions |
||||||||
March 31, 2022 |
||||||||
Carrying Value |
Of which have yet to transition to an alternative benchmark interest rate |
|||||||
Debt securities |
||||||||
Financial assets required to be measured at FVOCI |
||||||||
Financial assets required to be measured at AC |
||||||||
Long-term debt |
( |
) |
( |
) | ||||
Derivatives* |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
* |
Derivatives are presented on a net basis. |
7. |
Inventories |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Finished products |
||||||||||||
Work in process |
||||||||||||
Raw materials, purchased components and supplies |
||||||||||||
|
|
|
|
|
|
|||||||
Inventories |
|
|
|
|||||||||
|
|
|
|
|
|
8. |
Investments in associates and joint ventures |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Investments accounted for using the equity method |
||||||||||||
Associates |
||||||||||||
Joint ventures |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
|
|
|
|||||||||
|
|
|
|
|
|
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Share of profit or loss |
||||||||
Associates |
||||||||
Joint ventures |
( |
) | ||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Share of other comprehensive income |
||||||||
Associates |
||||||||
Joint ventures |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Share of comprehensive income |
||||||||
Associates |
||||||||
Joint ventures |
( |
) | ||||||
|
|
|
|
|||||
Total |
|
|
||||||
|
|
|
|
9. |
Property, plant and equipment |
Yen in millions |
||||||||||||||||||||
Land |
Buildings |
Machinery and equipment |
Construction in progress |
Total |
||||||||||||||||
Balance as of April 1, 2020: | ||||||||||||||||||||
Cost |
||||||||||||||||||||
Accumulated depreciation and impairment losses |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Carrying amount |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Changes in carrying amount: | ||||||||||||||||||||
Additions |
— | |||||||||||||||||||
Acquisitions through business combinations |
— | — | ||||||||||||||||||
Reclassifications |
( |
) | ( |
) | ||||||||||||||||
Disposals or classified as held for sale *1 |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Depreciation *2 |
— | ( |
) | ( |
) | — | ( |
) | ||||||||||||
Impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Translation adjustment |
||||||||||||||||||||
Other |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total changes |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of March 31, 2021: | ||||||||||||||||||||
Cost |
||||||||||||||||||||
Accumulated depreciation and impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Carrying amount |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Changes in carrying amount: | ||||||||||||||||||||
Additions |
||||||||||||||||||||
Acquisitions through business combinations |
— | — | ||||||||||||||||||
Reclassifications |
( |
) | ( |
) | ||||||||||||||||
Disposals or classified as held for sale *1 |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Depreciation *2 |
— | ( |
) | ( |
) | — | ( |
) | ||||||||||||
Impairment losses |
— | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Translation adjustment |
||||||||||||||||||||
Other |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total changes |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of March 31, 2022: | ||||||||||||||||||||
Cost |
||||||||||||||||||||
Accumulated depreciation and impairment losses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Carrying amount |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
*1 |
An asset or disposal group for which the cash flows are expected to arise principally from sale rather than continuing use is classified to current asset as an asset held for sale. |
*2 |
Depreciation expenses are allocated to the cost of inventory and are recognized in cost of sales as inventory is sold, or are directly recognized in selling, general and administrative expenses and research and development expenditures in the consolidated statements of income, depending on the use of the asset. |
10. |
Leases |
(1) |
Right-of-use |
Yen in millions |
||||||||||||||||
Land |
Buildings |
Machinery and equipment |
Total |
|||||||||||||
Balance as of April 1, 2020: |
||||||||||||||||
Carrying amount |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Changes in the carrying amount |
||||||||||||||||
Increase due to new lease agreements and remeasurement of lease liabilities |
||||||||||||||||
Decrease due to termination of lease agreements and remeasurement of lease liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net changes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance as of March 31, 2021: |
||||||||||||||||
Carrying amount |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Changes in the carrying amount |
||||||||||||||||
Increase due to new lease agreements and remeasurement of lease liabilities |
||||||||||||||||
Decrease due to termination of lease agreements and remeasurement of lease liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net changes |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance as of March 31, 2022: |
||||||||||||||||
Carrying amount |
||||||||||||||||
|
|
|
|
|
|
|
|
(2) |
Income, expenses, and cash flows (except for depreciation) arising from lease contracts as a lessee and lessor are as follows: |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Interest expenses on lease liabilities |
||||||||
Expenses related to short-term leases accounted for applying an exemption |
||||||||
Income from subleases |
( |
) | ( |
) | ||||
Net cash outflows for leases |
|
|
11. |
Goodwill and intangible assets |
(1) |
Goodwill |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Balance at beginning of the fiscal year |
||||||||
Cost |
||||||||
Accumulated impairments |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Carrying amount |
||||||||
|
|
|
|
|||||
Increase (decrease) due to: |
||||||||
Acquisitions |
||||||||
Disposals or classified as held for sale * |
( |
) | ( |
) | ||||
Impairments |
— | — | ||||||
Translation adjustments |
||||||||
Other |
— | — | ||||||
Balance at end of the fiscal year |
||||||||
Cost |
||||||||
Accumulated impairments |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Carrying amount |
||||||||
|
|
|
|
* | Disposals or classified as held for sale for the fiscal year ended March 31, 2022 relate mainly to the transfer of certain operations of Game Show Network, LLC, a wholly-owned subsidiary in the Pictures segment. Refer to Note 31 for the details of the transfer. |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Game & Network Services *1 |
||||||||||||
Music *2 |
||||||||||||
Pictures *3 |
||||||||||||
Electronics Products & Solutions |
||||||||||||
Imaging & Sensing Solutions |
||||||||||||
Financial Services |
||||||||||||
All Other |
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total |
|
|
|
|||||||||
|
|
|
|
|
|
*1 | Game & Network Services |
*2 | Music |
*3 | Pictures |
(2) |
Content assets |
Yen in millions |
||||||||||||||||||||||||||||
Film costs |
Broadcasting rights |
Music catalogs |
Artist contracts |
Music distribution rights |
Other |
Content assets Total |
||||||||||||||||||||||
Balance as of April 1, 2020: |
||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Accumulated amortization and impairment losses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Carrying amount |
||||||||||||||||||||||||||||
Changes in carrying amount: |
||||||||||||||||||||||||||||
Additions |
||||||||||||||||||||||||||||
Acquisitions through business combinations |
— |
— |
— |
— |
||||||||||||||||||||||||
Disposals or classified as held for sale |
( |
) |
( |
) |
— |
— |
— |
— |
( |
) | ||||||||||||||||||
Amortization |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Impairment losses |
( |
) |
( |
) |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||
Translation adjustment |
||||||||||||||||||||||||||||
Other |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total changes |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
Balance as of March 31, 2021: |
||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Accumulated amortization and impairment losses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Carrying amount |
||||||||||||||||||||||||||||
Changes in carrying amount: |
||||||||||||||||||||||||||||
Additions |
— |
|||||||||||||||||||||||||||
Acquisitions through business combinations |
— |
|||||||||||||||||||||||||||
Disposals or classified as held for sale |
( |
) |
( |
) |
— |
— |
— |
— |
( |
) | ||||||||||||||||||
Amortization |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Impairment losses |
( |
) |
( |
) |
— |
— |
— |
— |
( |
) | ||||||||||||||||||
Translation adjustment |
||||||||||||||||||||||||||||
Other |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total changes |
||||||||||||||||||||||||||||
Balance as of March 31, 2022: |
||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Accumulated amortization and impairment losses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Carrying amount |
||||||||||||||||||||||||||||
(3) |
Other intangible assets |
Yen in millions |
||||||||||||||||||||||||||||
Patent rights, know-how and license agreements |
Customer relationships |
Trademarks |
Software |
Television carriage contracts |
Other |
Total |
||||||||||||||||||||||
Balance as of April 1, 2020: |
||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Accumulated amortization and impairment losses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Carrying amount |
||||||||||||||||||||||||||||
Changes in carrying amount: |
||||||||||||||||||||||||||||
Additions |
— |
|||||||||||||||||||||||||||
Acquisitions through business combinations |
||||||||||||||||||||||||||||
Internal development |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Disposals or classified as held for sale |
( |
) |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||
Amortization |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Impairment losses |
( |
) |
— |
— |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||||
Translation adjustment |
( |
) |
( |
) |
||||||||||||||||||||||||
Other |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total changes |
( |
) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of March 31, 2021: |
||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Accumulated amortization and impairment losses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Carrying amount |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Changes in carrying amount: |
||||||||||||||||||||||||||||
Additions |
— |
|||||||||||||||||||||||||||
Acquisitions through business combinations |
— |
|||||||||||||||||||||||||||
Internal development |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Disposals or classified as held for sale |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||
Amortization |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Impairment losses |
( |
) |
— |
( |
) |
( |
) |
— |
( |
) |
( |
) | ||||||||||||||||
Translation adjustment |
||||||||||||||||||||||||||||
Other |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total changes |
( |
) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of March 31, 2022: |
||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Accumulated amortization and impairment losse s |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Carrying amount |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12. |
Impairment of non-financial assets |
13. |
Insurance-related accounts |
(1) |
Assets, liabilities, revenues and expenses included in the insurance business |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Universal life insurance |
||||||||||||
Investment contracts |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
Yen in millions |
||||||||||||
April 1, 2020 |
||||||||||||
Variable annuities |
Variable life insurance contracts |
Total |
||||||||||
Policyholders’ account value |
||||||||||||
Net amount at risk |
||||||||||||
Liability for minimum guarantee benefit |
Age |
||||||||
April 1, 2020 |
||||||||
Variable annuities |
Variable life insurance contracts |
|||||||
Average attained age |
Yen in millions |
||||||||||||
March 31, 2021 |
||||||||||||
Variable annuities |
Variable life insurance contracts |
Total |
||||||||||
Policyholders’ account value |
||||||||||||
Net amount at risk |
||||||||||||
Liability for minimum guarantee benefit |
Age |
||||||||
March 31, 2021 |
||||||||
Variable annuities |
Variable life insurance contracts |
|||||||
Average attained age |
Yen in millions |
||||||||||||
March 31, 2022 |
||||||||||||
Variable annuities |
Variable life insurance contracts |
Total |
||||||||||
Policyholders’ account value |
||||||||||||
Net amount at risk |
||||||||||||
Liability for minimum guarantee benefit |
Age |
||||||||
March 31, 2022 |
||||||||
Variable annuities |
Variable life insurance contracts |
|||||||
Average attained age |
(2) |
Changes in insurance contract liabilities and deferred insurance acquisition costs |
Yen in millions |
||||||||||||
Future insurance policy benefits and other |
Policyholders’ account in the life insurance business |
Total |
||||||||||
Balance as of April 1, 2020 |
||||||||||||
|
|
|
|
|
|
|||||||
Current portion *1 |
||||||||||||
Non-current portion |
||||||||||||
|
|
|
|
|
|
|||||||
Net premiums |
||||||||||||
Insurance liabilities released |
( |
) | ( |
) | ( |
) | ||||||
Unwind of discount and actuarial items *2 |
||||||||||||
Changes in valuation of expected future benefits |
( |
) | ( |
) | ( |
) | ||||||
Shadow accounting adjustments |
( |
) | ( |
) | ( |
) | ||||||
Other |
( |
) | ||||||||||
Currency exchange rate fluctuations |
||||||||||||
|
|
|
|
|
|
|||||||
Balance as of March 31, 2021 |
||||||||||||
|
|
|
|
|
|
|||||||
Current portion *1 |
||||||||||||
Non-current portion |
||||||||||||
|
|
|
|
|
|
|||||||
Net premiums |
||||||||||||
Insurance liabilities released |
( |
) | ( |
) | ( |
) | ||||||
Unwind of discount and actuarial items *2 |
||||||||||||
Changes in valuation of expected future benefits |
( |
) | ( |
) | ||||||||
Shadow accounting adjustments |
( |
) | ( |
) | ( |
) | ||||||
Other |
( |
) | ( |
) | ||||||||
Currency exchange rate fluctuations |
||||||||||||
|
|
|
|
|
|
|||||||
Balance as of March 31, 2022 |
||||||||||||
|
|
|
|
|
|
|||||||
Current portion *1 |
||||||||||||
Non-current portion |
*1 | The current portion of future insurance policy benefits and other is included in other current liabilities in the consolidated statements of financial position. |
*2 | Mainly includes interests credited to reserves, expenses and mortality charges. |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Balance at beginning of the fiscal year |
||||||||
|
|
|
|
|||||
Current portion* |
||||||||
Non-current portion |
||||||||
|
|
|
|
|||||
New deferred insurance acquisition costs |
||||||||
Amortization amount for current period |
( |
) | ( |
) | ||||
Shadow accounting adjustments |
||||||||
Currency exchange rate fluctuations |
||||||||
|
|
|
|
|||||
Balance at end of the fiscal year |
||||||||
|
|
|
|
|||||
Current portion* |
||||||||
Non-current portion |
* | The current portion of deferred insurance acquisition costs is included in other current assets in the consolidated statements of financial position. |
(3) |
Significant assumptions regarding insurance contracts |
April 1 |
Fiscal year ended March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Discount rate |
( ) - |
( ) - |
( ) - % |
Yen in millions |
||||||||||||
April 1 |
Fiscal year ended March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Impact on gains (losses) |
( |
) | ||||||||||
Changes in economic assumptions |
( |
) | ||||||||||
Changes in non-economic assumptions |
( |
) | ||||||||||
Impact on capital |
( |
) | ||||||||||
Changes in economic assumptions |
( |
) | |
|||||||||
Changes in non-economic assumptions |
(4) |
Insurance-related accounts measured at fair value |
Yen in millions |
||||||||||||
Fair value |
Presentation in the consolidated statements of financial position |
|||||||||||
Future insurance policy benefits and other |
Policyholders’ account in the life insurance business |
|||||||||||
April 1, 2020 |
||||||||||||
March 31, 2021 |
||||||||||||
March 31, 2022 |
Valuation techniques |
Significant unobservable inputs |
Range | ||||||
April 1, 2020 |
March 31, 2021 |
March 31, 2022 | ||||||
Present value of future expected cash flows |
Credit spread* | |||||||
Mortality rates | - | |||||||
Lapse rates | - |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Balance at beginning of the fiscal year |
||||||||
|
|
|
|
|||||
Total (gains) losses *1 : |
||||||||
Included in net income *2 |
||||||||
Included in other comprehensive income *3 |
( |
) | ||||||
Issuances |
— | |||||||
Settlements |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Balance at end of the fiscal year |
||||||||
|
|
|
|
|||||
Changes in unrealized gains (losses) relating to future insurance policy benefits and policyholders’ account in the life insurance business still held as of reporting date included in net income *2 |
( |
) | ( |
) |
*1 | Gains presented as negative and losses presented as positive. |
*2 | Included in financial services revenue and financial services expense in the consolidated statements of income. |
*3 | Included in insurance contract valuation adjustments in the consolidated statements of comprehensive income. |
(5) |
Insurance and market risks |
(a) |
Insurance risk management |
(b) |
Market risk management |
April 1, 2020 |
||||||||||||||
Assumption |
Changes in assumptions, etc. |
Yen in millions |
Rate of change |
|||||||||||
MCEV |
Change in amount |
|||||||||||||
Base |
No change | — | — | |||||||||||
Interest rates* |
50bp decrease | ( |
) | ( |
) | |||||||||
50bp increase | ||||||||||||||
Stock/Real estate market value |
10% decrease | ( |
) | ( |
) | |||||||||
Maintenance expenses |
10% decrease | |||||||||||||
Lapse and surrender rate |
10% decrease | ( |
) | ( |
) | |||||||||
Mortality rates (death protection) |
5% decrease | |||||||||||||
Mortality rates (third sector /annuity products) |
5% decrease | ( |
) | ( |
) | |||||||||
Morbidity rates |
5% decrease | |||||||||||||
Foreign exchange rates |
10% appreciation of the Yen | ( |
) | ( |
) |
March 31, 2021 |
||||||||||||||
Assumption |
Changes in assumptions, etc. |
Yen in millions |
Rate of change |
|||||||||||
MCEV |
Change in amount |
|||||||||||||
Base |
No change | — | — | |||||||||||
Interest rates* |
50bp decrease | |||||||||||||
50bp increase | ( |
) | ( |
) | ||||||||||
Stock/Real estate market value |
10% decrease | ( |
) | ( |
) | |||||||||
Maintenance expenses |
10% decrease | |||||||||||||
Lapse and surrender rate |
10% decrease | ( |
) | ( |
) | |||||||||
Mortality rates (death protection) |
5% decrease | |||||||||||||
Mortality rates (third sector /annuity products) |
5% decrease | ( |
) | ( |
) | |||||||||
Morbidity rates |
5% decrease | |||||||||||||
Foreign exchange rates |
10% appreciation of the Yen | ( |
) | ( |
) |
March 31, 2022 |
||||||||||||||
Assumption |
Changes in assumptions, etc. |
Yen in millions |
Rate of change |
|||||||||||
MCEV |
Change in amount |
|||||||||||||
Base |
No change | — | — | |||||||||||
Interest rates* |
50bp decrease | |||||||||||||
50bp increase | ( |
) | ( |
) | ||||||||||
Stock/Real estate market value |
10% decrease | ( |
) | ( |
) | |||||||||
Maintenance expenses |
10% decrease | |||||||||||||
Lapse and surrender rate |
10% decrease | |||||||||||||
Mortality rates (death protection) |
5% decrease | |||||||||||||
Mortality rates (third sector /annuity products) |
5% decrease | ( |
) | ( |
) | |||||||||
Morbidity rates |
5% decrease | |||||||||||||
Foreign exchange rates |
10% appreciation of the Yen | ( |
) | ( |
) |
(a) |
Risk management policy and exposure |
(b) |
Maturity analysis |
Yen in millions |
||||||||||||||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||||||||||||||
Total |
Indefinite Terms |
Within 1 year |
1 to 2 years |
2 to 3 years |
3 to 4 years |
4 to 5 years |
More than 5 years |
|||||||||||||||||||||||||
Insurance contract liabilities |
||||||||||||||||||||||||||||||||
Securities held by insurance subsidiaries |
Yen in millions |
||||||||||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||||||||||
Total |
Indefinite Terms |
Within 1 year |
1 to 2 years |
2 to 3 years |
3 to 4 years |
4 to 5 years |
More than 5 years |
|||||||||||||||||||||||||
Insurance contract liabilities |
||||||||||||||||||||||||||||||||
Securities held by insurance subsidiaries |
Yen in millions |
||||||||||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||||||||||
Total |
Indefinite Terms |
Within 1 year |
1 to 2 years |
2 to 3 years |
3 to 4 years |
4 to 5 years |
More than 5 years |
|||||||||||||||||||||||||
Insurance contract liabilities |
||||||||||||||||||||||||||||||||
Securities held by insurance subsidiaries |
14. |
Short-term borrowings and long-term debt |
April 1, 2020 |
||||||||||||
Book value (Yen in millions) |
Weighted average interest rate |
Due |
||||||||||
Short-term borrowings |
% | |||||||||||
Long-term debt |
||||||||||||
Long-term loans |
% | |||||||||||
Unsecured bonds |
% | |||||||||||
Unsecured zero coupon convertible bonds |
— | % | ||||||||||
Lease liabilities |
% | |||||||||||
|
|
|||||||||||
Less — Portion due within one year |
||||||||||||
|
|
|||||||||||
|
|
March 31, 2021 |
||||||||||||
Book value (Yen in millions) |
Weighted average interest rate |
Due |
||||||||||
Short-term borrowings |
% | |||||||||||
Long-term debt |
||||||||||||
Long-term loans |
% | |||||||||||
Unsecured bonds |
% | |||||||||||
Unsecured zero coupon convertible bonds |
— | % | ||||||||||
Lease liabilities |
% | |||||||||||
|
|
|||||||||||
Less — Portion due within one year |
||||||||||||
|
|
|||||||||||
|
|
March 31, 2022 |
||||||||||||
Book value (Yen in millions) |
Weighted average interest rate |
Due |
||||||||||
Short-term borrowings |
% | |||||||||||
Long-term debt |
||||||||||||
Long-term loans |
% | |||||||||||
Unsecured bonds |
% | |||||||||||
Unsecured zero coupon convertible bonds |
% | |||||||||||
Lease liabilities |
% | |||||||||||
|
|
|||||||||||
Less — Portion due within one year |
||||||||||||
|
|
|||||||||||
|
|
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Securities |
||||||||||||
Housing loans in the banking business |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Securities |
— | |
|
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Securities |
|
|
|
15. |
Derivative instruments and hedging activities |
Yen in millions |
||||||||||||||||||||||||
April 1, 2020 |
March 31, 2021 |
March 31, 2022 |
||||||||||||||||||||||
Asset derivatives |
Liability derivatives |
Asset derivatives |
Liability derivatives |
Asset derivatives |
Liability derivatives |
|||||||||||||||||||
Interest rate contracts |
||||||||||||||||||||||||
Interest rate swap agreements |
||||||||||||||||||||||||
Interest rate swaptions agreements |
— | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Foreign exchange contracts |
||||||||||||||||||||||||
Foreign exchange forward contracts |
||||||||||||||||||||||||
Swap agreements |
||||||||||||||||||||||||
Currency option contracts purchased |
— | — | — | |||||||||||||||||||||
Currency option contracts written |
— | — | — | |||||||||||||||||||||
Other currency contracts |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Equity contracts |
||||||||||||||||||||||||
Equity future contracts |
— | |||||||||||||||||||||||
Equity swap agreements |
— | — | — | |||||||||||||||||||||
Option contracts purchased |
— | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other |
||||||||||||||||||||||||
Other contracts |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total derivatives |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Yen in millions |
||||||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||||||
Notional amounts |
Fair Value |
|||||||||||||||||||||||
Within 1 Year |
Over 1 Year |
Total |
Asset derivatives |
Liability derivatives |
Balance sheet location |
|||||||||||||||||||
Cash flow hedging relationships |
||||||||||||||||||||||||
Foreign exchange forward contracts |
— | — | Current assets: Other financial assets |
| ||||||||||||||||||||
Average rate (JPY/USD) |
— |
|||||||||||||||||||||||
Yen in millions |
||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||
Notional amounts |
Fair Value |
|||||||||||||||||||||||
Within 1 Year |
Over 1 Year |
Total |
Asset derivatives |
Liability derivatives |
Balance sheet location |
|||||||||||||||||||
Cash flow hedging relationships |
||||||||||||||||||||||||
Foreign exchange forward contracts |
|
— | — | |
|
Current liabilities: Otherliabilities |
| |||||||||||||||||
Average rate (JPY/USD) |
— | |||||||||||||||||||||||
Currency option bought contracts |
— | — | Current assets: Other financial assets |
| ||||||||||||||||||||
Average rate (JPY/USD) |
— | |||||||||||||||||||||||
Currency option sold contracts |
— | — | |
Current liabilities: Other financial liabilities |
| |||||||||||||||||||
Average rate (JPY/USD) |
— | |||||||||||||||||||||||
Interest rate swap agreements |
— | — | Non-current assets:Other financial assets |
| ||||||||||||||||||||
Average rate |
— | % |
Yen in millions |
||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||
Notional amounts |
Fair Value |
|||||||||||||||||||||||
Within 1 Year |
Over 1 Year |
Total |
Asset derivatives |
Liability derivatives |
Balance sheet location |
|||||||||||||||||||
Cash flow hedging relationships |
||||||||||||||||||||||||
Foreign exchange forward contracts |
— | — | Current liabilities: Other financial liabilities |
| ||||||||||||||||||||
Average rate (JPY/USD) |
— | |||||||||||||||||||||||
Currency option bought contracts |
— | — | Current assets :Other financial assets |
| ||||||||||||||||||||
Average rate (JPY/USD) |
— | |||||||||||||||||||||||
Currency option sold contracts |
— | — | |
Current liabilities: Other financial liabilities |
| |||||||||||||||||||
Average rate (JPY/USD) |
— | |||||||||||||||||||||||
Interest rate swap agreements |
— | — | |
Non-current Other |
| |||||||||||||||||||
Average rate |
— | % |
Yen in millions |
||||||||||||
Foreign exchange contracts |
Interest rate contracts |
Total |
||||||||||
Balance as of April 1, 2020 |
||||||||||||
Changes in fair value of hedging instruments recognized in other comprehensive income |
( |
) | ||||||||||
Reclassification adjustments to profit (loss) for the year *1 ,2 |
( |
) | ( |
) | ( |
) | ||||||
Deferred tax |
( |
) | ( |
) | ||||||||
Balance as of March 31, 2021 |
( |
) | ||||||||||
Changes in fair value of hedging instruments recognized in other comprehensive income |
( |
) | ( |
) | ||||||||
Reclassification adjustments to profit (loss) for the year *1,2 |
||||||||||||
Deferred tax |
( |
) | ( |
) | ||||||||
Balance as of March 31, 2022 |
( |
) | ||||||||||
*1 |
In the consolidated statements of income, the amount reclassified to profit (loss) is included in sales for hedges of foreign exchange contracts and in financial expenses for hedges of interest rate contracts. |
*2 |
For the fiscal years ended March 31, 2021 and 2022, hedge ineffectiveness recognized in profit or loss was not material. |
16. |
Offsetting of financial assets and financial liabilities |
Yen in millions |
||||||||||||||||||||||||
April 1, 2020 |
||||||||||||||||||||||||
Gross amounts recognized financial assets and financial liabilities |
Amounts offset in the consolidated statements of financial position |
Net amounts presented in the consolidated statements of financial position |
Amounts not offset in the consolidated statements of financial position |
|||||||||||||||||||||
Financial instruments |
Cash collateral |
Net amounts |
||||||||||||||||||||||
Derivative assets *1 |
||||||||||||||||||||||||
Trade receivables |
||||||||||||||||||||||||
Total assets |
||||||||||||||||||||||||
Derivative liabilities *1 |
||||||||||||||||||||||||
Trade payables |
||||||||||||||||||||||||
Short-term borrowings *2 |
||||||||||||||||||||||||
Total liabilities |
||||||||||||||||||||||||
Yen in millions |
||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||
Gross amounts recognized financial assets and financial liabilities |
Amounts offset in the consolidated statements of financial position |
Net amounts presented in the consolidated statements of financial position |
Gross amounts not offset in the consolidated statements of financial position |
|||||||||||||||||||||
Financial instruments |
Cash collateral |
Net amounts |
||||||||||||||||||||||
Derivative assets *1 |
||||||||||||||||||||||||
Trade receivables |
||||||||||||||||||||||||
Total assets |
||||||||||||||||||||||||
Derivative liabilities *1 |
||||||||||||||||||||||||
Trade payables |
||||||||||||||||||||||||
Short-term borrowings *2 |
||||||||||||||||||||||||
Total liabilities |
||||||||||||||||||||||||
Yen in millions |
||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||
Gross amounts recognized financial assets and financial liabilities |
Amounts offset in the consolidated statements of financial position |
Net amounts presented in the consolidated statements of financial position |
Gross amounts not offset in the consolidated statements of financial position |
|||||||||||||||||||||
Financial instruments |
Cash collateral |
Net amounts |
||||||||||||||||||||||
Derivative assets *1 |
||||||||||||||||||||||||
Trade receivables |
||||||||||||||||||||||||
Total assets |
||||||||||||||||||||||||
Derivative liabilities *1 |
||||||||||||||||||||||||
Trade payables |
||||||||||||||||||||||||
Short-term borrowings *2 |
||||||||||||||||||||||||
Total liabilities |
||||||||||||||||||||||||
*1 | Certain subsidiaries have entered into master netting agreements or other similar agreements, which are mainly International Swaps and Derivatives Association (ISDA) Master Agreements. An ISDA Master Agreement is an agreement between two counterparties that may have multiple derivative contracts with each other, and such ISDA Master Agreement may provide for the net settlement of all or a specified group of these derivative contracts, through a single payment, in a single currency, in the event of a default on or affecting any one derivative contract, or a termination event affecting all or a specified group of derivative contracts. Master netting agreements create a right of set off, but the master netting agreements do not automatically provide for such set off. |
*2 | Short-term borrowings relate to repurchase agreements. |
17. |
Employee benefits |
(1) |
Defined benefit and severance plans |
Yen in millions |
||||||||||||||||||||||||
Japanese plans |
Foreign plans |
|||||||||||||||||||||||
April 1 |
March 31 |
April 1 |
March 31 |
|||||||||||||||||||||
2020 |
2021 |
2022 |
2020 |
2021 |
2022 |
|||||||||||||||||||
Present value of defined benefit obligations |
||||||||||||||||||||||||
Fair value of plan assets |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
The impact of minimum funding requirement and asset ceiling |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net amount |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Amount recognized in the consolidated statements of financial position |
||||||||||||||||||||||||
Net defined benefit asset |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Net defined benefit liability |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net amount |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Yen in millions |
||||||||||||||||
Japanese plans |
Foreign plans |
|||||||||||||||
Fiscal year ended March 31 |
Fiscal year ended March 31 |
|||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||
Beginning balance of the fiscal year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current service cost |
||||||||||||||||
Past service cost |
( |
) | ||||||||||||||
Interest cost |
||||||||||||||||
Remeasurements: |
||||||||||||||||
Change in demographic assumptions |
( |
) | ( |
) | ||||||||||||
Change in financial assumptions |
( |
) | ( |
) | ( |
) | ||||||||||
Other |
( |
) | ( |
) | ||||||||||||
Translation adjustments |
||||||||||||||||
Plan participants’ contributions |
||||||||||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Curtailments and settlements |
( |
) | ( |
) | ||||||||||||
Other |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance of the fiscal year |
||||||||||||||||
|
|
|
|
|
|
|
|
* |
Curtailments and settlements of the foreign plans for the fiscal year ended March 31, 2022 relate mainly to the termination of the defined benefit pension plan at certain U.S. subsidiaries. |
Japanese plans |
Foreign plans |
|||||||||||||||
March 31 |
March 31 |
|||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||
Weighted average duration of defined benefit obligations |
Japanese plans |
Foreign plans |
|||||||||||||||||||||||
April 1 |
March 31 |
April 1 |
March 31 |
|||||||||||||||||||||
2020 |
2021 |
2022 |
2020 |
2021 |
2022 |
|||||||||||||||||||
Discount rate |
|
% | |
% | |
% | |
% | |
% | |
% |
Yen in millions |
||||||||||||||||||||||||
Japanese plans |
Foreign plans |
|||||||||||||||||||||||
April 1 |
March 31 |
April 1 |
March 31 |
|||||||||||||||||||||
Change in assumptions |
2020 |
2021 |
2022 |
2020 |
2021 |
2022 |
||||||||||||||||||
Discount rate |
||||||||||||||||||||||||
0.25% decrease |
||||||||||||||||||||||||
0.25% increase |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
Yen in millions |
||||||||||||||||
Japanese plans |
Foreign plans |
|||||||||||||||
Fiscal year ended March 31 |
Fiscal year ended March 31 |
|||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||
Beginning balance of the fiscal year |
||||||||||||||||
Interest income |
||||||||||||||||
Remeasurements: |
||||||||||||||||
Return on plan assets excluding interest income |
( |
) | ( |
) | ||||||||||||
Translation adjustments |
||||||||||||||||
Employer contribution |
||||||||||||||||
Plan participants’ contributions |
||||||||||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Refunds from the plans |
— | — | ( |
) | ||||||||||||
Curtailments and settlements |
( |
) | ( |
) | ||||||||||||
Ending balance of the fiscal year |
||||||||||||||||
* |
Curtailments and settlements of the foreign plans for the fiscal year ended March 31, 2022 relate mainly to the termination of the defined benefit pension plan at certain U.S. subsidiaries. |
Yen in millions |
||||||||||||
Japanese plans |
||||||||||||
April 1 2020 |
Market price in active market |
|||||||||||
Asset class |
Quoted |
Unquoted |
||||||||||
Cash and cash equivalents |
||||||||||||
Equity securities *1 |
||||||||||||
Fixed income: |
||||||||||||
Government bonds *2 |
||||||||||||
Corporate bonds *3 |
||||||||||||
Commingled funds *4 |
||||||||||||
Private equity |
||||||||||||
Hedge funds |
— | |||||||||||
Total |
|
|
|
|||||||||
Yen in millions |
||||||||||||
Japanese plans |
||||||||||||
March 31 2021 |
Market price in active market |
|||||||||||
Asset class |
Quoted |
Unquoted |
||||||||||
Cash and cash equivalents |
||||||||||||
Equity securities *1 |
||||||||||||
Fixed income: |
||||||||||||
Government bonds *2 |
||||||||||||
Corporate bonds *3 |
||||||||||||
Commingled funds *4 |
||||||||||||
Private equity |
||||||||||||
Hedge funds |
— | |||||||||||
Total |
|
|
|
|||||||||
Yen in millions |
||||||||||||
Japanese plans |
||||||||||||
March 31 2022 |
Market price in active market |
|||||||||||
Asset class |
Quoted |
Unquoted |
||||||||||
Cash and cash equivalents |
||||||||||||
Equity securities *1 |
||||||||||||
Fixed income: |
||||||||||||
Government bonds *2 |
||||||||||||
Corporate bonds *3 |
||||||||||||
Commingled funds *4 |
||||||||||||
Private equity |
||||||||||||
Hedge funds |
— | |||||||||||
Total |
||||||||||||
*1 | Represents primarily Japanese equity securities. |
*2 | Includes approximately |
*3 | Includes debt securities issued by Japanese and foreign corporation and government related agencies. |
*4 |
Commingled funds represent pooled institutional investments, including primarily investment trusts. |
Yen in millions |
||||||||||||
Foreign plans |
||||||||||||
April 1 2020 |
Market price in active market |
|||||||||||
Asset class |
Quoted |
Unquoted |
||||||||||
Cash and cash equivalents |
||||||||||||
Equity securities *1 |
||||||||||||
Fixed income: |
||||||||||||
Government bonds *2 |
||||||||||||
Corporate bonds *3 |
||||||||||||
Asset-backed securities |
||||||||||||
Insurance contracts *4 |
||||||||||||
Commingled funds *5 |
||||||||||||
Real estate and other |
||||||||||||
Total |
|
|
|
|||||||||
Yen in millions |
||||||||||||
Foreign plans |
||||||||||||
March 31 2021 |
Market price in active market |
|||||||||||
Asset class |
Quoted |
Unquoted |
||||||||||
Cash and cash equivalents |
||||||||||||
Equity securities *1 |
||||||||||||
Fixed income: |
||||||||||||
Government bonds *2 |
||||||||||||
Corporate bonds *3 |
||||||||||||
Asset-backed securities |
||||||||||||
Insurance contracts *4 |
||||||||||||
Commingled funds *5 |
||||||||||||
Real estate and other |
||||||||||||
Total |
|
|
|
|||||||||
Yen in millions |
||||||||||||
Foreign plans |
||||||||||||
March 31 2022 |
Market price in active market |
|||||||||||
Asset class |
Quoted |
Unquoted |
||||||||||
Cash and cash equivalents |
|
|||||||||||
Equity securities *1 |
||||||||||||
Fixed income: |
||||||||||||
Government bonds *2 |
||||||||||||
Corporate bonds *3 |
||||||||||||
Asset-backed securities |
||||||||||||
Insurance contracts *4 |
||||||||||||
Commingled funds *5 |
||||||||||||
Real estate and other |
||||||||||||
Total |
|
|
|
|||||||||
*1 |
Includes primarily foreign equity securities. |
*2 |
Includes primarily foreign government debt securities. |
*3 |
Includes primarily foreign corporate debt securities. |
*4 |
Represents annuity contracts with or without profit sharing and bulk insurance contracts. |
*5 |
Commingled funds represent pooled institutional investments, including primarily investment trusts. |
Yen in millions |
||||||||||||||||
Japanese plans |
Foreign plans |
|||||||||||||||
Fiscal year ended March 31 |
Fiscal year ended March 31 |
|||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||
Beginning balance of the fiscal year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Interest income |
||||||||||||||||
Remeasurements: |
||||||||||||||||
Change in asset ceiling excluding interest income |
( |
) | ( |
) | ||||||||||||
Translation adjustments |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Ending balance of the fiscal year |
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
(2) |
Defined contribution plans |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Japanese plans |
|
|||||||
Foreign plans |
|
(3) |
Employee benefits expenses |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Total employee benefits expenses |
|
|
18. |
Participation and residual liabilities in the Pictures segment |
Yen in millions |
||||
Fiscal year ended March 31 |
||||
2022 |
||||
Balance at beginning of the fiscal year |
||||
|
|
|||
Current portion |
||||
Non-current portion |
||||
|
|
|||
Additional participation and residual liabilities |
||||
Amounts paid during the year |
( |
) | ||
Translation adjustment |
||||
|
|
|||
Balance at end of the fiscal year |
||||
|
|
|||
Current portion |
||||
Non-current portion |
19. |
Other assets and other liabilities |
(1) |
Other assets |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Advance payments and prepaid expenses |
||||||||||||
Income taxes receivable and other taxes receivable |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
|
|
|
|||||||||
|
|
|
|
|
|
|||||||
Current assets |
||||||||||||
Non-current assets |
(2) |
Other liabilities |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Contract liabilities |
||||||||||||
Accrued short-term employee benefits |
||||||||||||
Refund liabilities |
||||||||||||
Accrued expenses |
||||||||||||
Taxes payable other than income taxes |
||||||||||||
Future insurance policy benefits and other |
||||||||||||
Product warranties |
||||||||||||
Other |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Current liabilities |
||||||||||||
Non-current liabilities |
Yen in millions |
||||
Fiscal year ended March 31 |
||||
2022 |
||||
Balance at beginning of the fiscal year |
||||
|
|
|||
Additional product warranties |
||||
Amounts used during the year |
( |
) | ||
Unused amounts reversed during the year |
( |
) | ||
Translation adjustment |
||||
|
|
|||
Balance at end of the fiscal year |
||||
|
|
20. |
Stockholders’ equity |
(1) |
Common stock |
Number of shares |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Balance at beginning of the fiscal year |
||||||||
|
|
|
|
|||||
Issuance of new shares |
||||||||
|
|
|
|
|||||
Balance at end of the fiscal year |
||||||||
|
|
|
|
(2) |
Additional paid-in capital |
(3) |
Retained earnings |
(Resolution) |
Type of shares |
Total amount of dividends (Yen in millions) |
Source of dividends |
Dividends per share (Yen) |
Record date |
Effective date |
||||||||||||||||||
Board of Directors’ meeting held on May 10, 2022 |
(4) |
Other comprehensive income |
Yen in millions |
||||||||||||||||||||
Balance at April 1, 2020 |
Other comprehensive income attributable to Sony Group Corporation’s stockholders |
Transfer to retained earnings |
Transactions with noncontrolling interests shareholders and other |
Balance at March 31, 2021 |
||||||||||||||||
Changes in equity instruments measured at fair value through other comprehensive income |
( |
) | ( |
) | ||||||||||||||||
Changes in debt instruments measured at fair value through other comprehensive income |
|
( |
) | |||||||||||||||||
Cash flow hedges |
||||||||||||||||||||
Remeasurement of defined benefit pension plans |
( |
) | ||||||||||||||||||
Exchange differences on translating foreign operations |
||||||||||||||||||||
Insurance contract valuation adjustments |
( |
) | ( |
) | ||||||||||||||||
Share of other comprehensive income of investments accounted for using the equity method |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Yen in millions |
||||||||||||||||||||
Balance at April 1, 2021 |
Other comprehensive income attributable to Sony Group Corporation’s stockholders |
Transfer to retained earnings |
Transactions with noncontrolling interests shareholders and other |
Balance at March 31, 2022 |
||||||||||||||||
Changes in equity instruments measured at fair value through other comprehensive income |
( |
) | ( |
) | |
|||||||||||||||
Changes in debt instruments measured at fair value through other comprehensive income |
( |
) | ||||||||||||||||||
Cash flow hedges |
||||||||||||||||||||
Remeasurement of defined benefit pension plans |
( |
) | ||||||||||||||||||
Exchange differences on translating foreign operations |
||||||||||||||||||||
Insurance contract valuation adjustments |
( |
) | ||||||||||||||||||
Share of other comprehensive income of investments accounted for using the equity method |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
Comprehensive income components |
2021 |
2022 |
||||||
Items that will not be reclassified to profit or loss |
||||||||
Changes in equity instruments measured at fair value through other comprehensive income |
||||||||
Amount incurred during the year |
( |
) | ||||||
Total before tax |
( |
) | ||||||
Tax expense or (benefit) |
( |
) | ||||||
Net of tax |
( |
) | ||||||
Remeasurement of defined benefit pension plans |
||||||||
Amount incurred during the year |
||||||||
Total before tax |
||||||||
Tax expense or (benefit) |
( |
) | ( |
) | ||||
Net of tax |
||||||||
Share of other comprehensive income of investments accounted for using the equity method |
||||||||
Amount incurred during the year |
||||||||
Total before tax |
||||||||
Tax expense or (benefit) |
( |
) | ( |
) | ||||
Net of tax |
||||||||
Total |
( |
) | ||||||
Items that may be reclassified subsequently to profit or loss |
||||||||
Changes in debt instruments measured at fair value through other comprehensive income |
||||||||
Amount incurred during the year |
( |
) | ( |
) | ||||
Reclassification to profit or loss |
( |
) | ( |
) | ||||
Total before tax |
( |
) | ( |
) | ||||
Tax expense or (benefit) |
||||||||
Net of tax |
( |
) | ( |
) | ||||
Cash flow hedges |
||||||||
Amount incurred during the year |
( |
) | ||||||
Reclassification to profit or loss |
( |
) | ||||||
Total before tax |
||||||||
Tax expense or (benefit) |
( |
) | ( |
) | ||||
Net of tax |
||||||||
Insurance contract valuation adjustments |
||||||||
Amount incurred during the year |
( |
) | ||||||
Reclassification to profit or loss |
( |
) | ( |
) | ||||
Total before tax |
( |
) | ||||||
Tax expense or (benefit) |
( |
) | ||||||
Net of tax |
( |
) | ||||||
Exchange differences on translating foreign operations |
||||||||
Amount incurred during the year |
||||||||
Reclassification to profit or loss |
( |
) | ||||||
Total before tax |
||||||||
Tax expense or (benefit) |
||||||||
Net of tax |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
Comprehensive income components |
2021 |
2022 |
||||||
Share of other comprehensive income of investments accounted for using the equity method |
||||||||
Amount incurred during the year |
||||||||
Reclassification to profit or loss |
||||||||
Total before tax |
||||||||
Tax expense or (benefit) |
||||||||
Net of tax |
||||||||
Total |
( |
) | ( |
) | ||||
Total other comprehensive income |
( |
) | ||||||
(5) |
Equity transactions with noncontrolling interests shareholders |
21. |
Stock-based compensation plans |
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Weighted-average assumptions |
||||||||
Share price at the grant date |
yen | yen | ||||||
Risk-free interest rate |
% | % | ||||||
Expected lives |
years | years | ||||||
Expected volatility* |
% | % | ||||||
Expected dividends |
% | % |
* | Expected volatility was based on the historical volatilities of Sony Group Corporation’s common stock over the expected life of the stock acquisition rights. |
Fiscal year ended March 31 |
||||||||||||||||
2021 |
2022 |
|||||||||||||||
Number of shares |
Weighted- average exercise price |
Number of shares |
Weighted- average exercise price |
|||||||||||||
Yen |
Yen |
|||||||||||||||
Outstanding at beginning of the fiscal year |
||||||||||||||||
|
|
|
|
|||||||||||||
Granted |
||||||||||||||||
Exercised |
||||||||||||||||
Forfeited or expired |
||||||||||||||||
|
|
|
|
|||||||||||||
Outstanding at end of the fiscal year |
||||||||||||||||
|
|
|
|
|||||||||||||
Exercisable at end of the fiscal year |
Series |
Date of grant |
Exercise term |
Exercise price |
Outstanding at end of the fiscal year (shares) |
||||||||||||
2021 |
2022 |
|||||||||||||||
22 nd |
November 22, 2012 to November 21, 2021 |
¥ | ||||||||||||||
23 rd |
November 22, 2012 to November 21, 2021 |
$ | ||||||||||||||
24 th |
December 4, 2013 to December 3, 2022 |
¥ | ||||||||||||||
25 th |
December 4, 2013 to December 3, 2022 |
$ | ||||||||||||||
26 th |
November 20, 2014 to November 19, 2023 |
¥ | ||||||||||||||
27 th |
November 20, 2014 to November 19, 2023 |
$ | ||||||||||||||
28 th |
November 20, 2015 to November 19, 2024 |
¥ | ||||||||||||||
29 th |
November 20, 2015 to November 19, 2024 |
$ | ||||||||||||||
30 th |
November 19, 2016 to November 18, 2025 |
¥ | ||||||||||||||
31 st |
November 19, 2016 to November 18, 2025 |
$ | ||||||||||||||
32 nd |
November 22, 2017 to November 21, 2026 |
¥ | ||||||||||||||
33 rd |
November 22, 2017 to November 21, 2026 |
$ | ||||||||||||||
34 th |
November 21, 2018 to November 20, 2027 |
¥ | ||||||||||||||
35 th |
November 21, 2018 to November 20, 2027 |
$ | ||||||||||||||
36 th |
February 28, 2019 to February 27, 2028 |
¥ | ||||||||||||||
37 th |
February 28, 2019 to February 27, 2028 |
$ | ||||||||||||||
38 th |
November 20, 2019 to November 19, 2028 |
¥ | ||||||||||||||
39 th |
November 20, 2019 to November 19, 2028 |
$ | ||||||||||||||
40 th |
November 20, 2020 to November 19, 2029 |
¥ | ||||||||||||||
41 st |
November 20, 2020 to November 19, 2029 |
$ | ||||||||||||||
42 nd |
April 17, 2021 to April 16, 2030 |
$ | ||||||||||||||
43 rd |
November 18, 2021 to November 17, 2030 |
¥ | ||||||||||||||
44 th |
November 18, 2021 to November 17, 2030 |
$ | ||||||||||||||
45 th |
November 18, 2022 to November 17, 2031 |
¥ | ||||||||||||||
46 th |
November 18, 2022 to November 17, 2031 |
$ |
22. |
Revenue |
(1) |
Contract balances |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Receivables from contracts with customers *1 |
||||||||||||
Contract assets *2 |
||||||||||||
Contract liabilities *3 |
*1 | Receivables from contracts with customers are included in the consolidated statements of financial position as “Trade and other receivables, and contract assets” and “Other financial assets,” non-current. |
*2 | Contract assets are included in the consolidated statements of financial position as “Trade and other receivables, and contract assets” and “Other non-current assets.” |
*3 | Contract liabilities are included in the consolidated statements of financial position as “Other current liabilities” and “Other non-current liabilities.” |
(2) |
Performance obligations |
Yen in millions |
||||||||
March 31 |
||||||||
2021 |
2022 |
|||||||
Pictures — Motion Pictures and Television Productions *1 |
|
|
||||||
Pictures — Media Networks |
||||||||
Music *2 |
||||||||
Others |
*1 | For Motion Pictures and Television Productions in the Pictures segment, Sony has included all contracts regardless of duration. |
*2 | The amount included in the Music segment primarily consists of minimum royalty guarantees or fixed fees in contracts related to license revenue for ongoing access to an evolving library of content. |
(3) |
Contract costs |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Incremental costs of obtaining a contract |
|
|
|
(4) |
Disaggregation of revenue |
23. |
Supplemental consolidated statements of income information |
(1) |
Other operating (income) expense, net |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Gain on transfer of GSN Games shares *1 |
— | ( |
) | |||||
(Gain) loss on purchase/sale of interests in subsidiaries and associates, net |
( |
) | ( |
) | ||||
(Gain) loss on sale, disposal or impairment of assets, net *2 |
|
|||||||
Other |
||||||||
|
|
|
|
|||||
|
( |
) | ||||||
|
|
|
|
*1 | Refer to Note 31. |
*2 | Refer to Notes 9 and 11. |
(2) |
Research and development expenditures |
(3) |
Advertising costs |
(4) |
Shipping and handling costs |
24. |
Financial income and expense |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Interest income |
||||||||
Financial assets measured at AC |
||||||||
Dividends |
||||||||
Financial assets measured at FVOCI |
||||||||
Gain on revaluation of equity instruments |
||||||||
Financial assets measured at FVPL *1 |
— | |||||||
Other |
||||||||
Total |
|
|
||||||
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Interest expense |
||||||||
Financial liabilities measured at AC |
||||||||
Other |
||||||||
Foreign exchange loss, net *2 |
||||||||
Loss on revaluation of equity instruments |
||||||||
Financial assets measured at FVPL *1 |
— | |||||||
Other |
||||||||
Total |
|
|
||||||
*1 | Shares of Spotify Technology S.A. (“Spotify”) held by Sony are classified as equity securities required to be measured at fair value through profit or loss. The revaluation of the Spotify shares owned as of March 31, 2021 and March 31, 2022 resulted in an unrealized gain, net of costs to be paid to Sony’s artists and distributed labels, of an unrealized loss, net of a decrease in costs to be paid to Sony’s artists and distributed labels, of , respectively. |
*2 | Foreign exchange loss, net includes gains or losses from foreign exchange contracts. |
25. |
Income taxes |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Income (loss) before income taxes: |
|
|||||||
Income tax expenses |
||||||||
Current |
||||||||
Deferred |
( |
) | ( |
) | ||||
Total income tax expense |
( |
) | ||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Statutory tax rate |
% | |
% | |||||
Non-deductible expenses |
||||||||
Income tax credits |
( |
) | ( |
) | ||||
Change in statutory tax rate |
( |
) | ( |
) | ||||
Change in unrecognized tax assets (other than the reversal of a previous write-down of the deferred tax assets below) |
( |
) | ( |
) | ||||
Reversal of a previous write-down of the deferred tax assets of the consolidated tax filing group in the United States |
( |
) | — | |||||
Reversal of a previous write-down of the deferred tax assets relating to the national tax of Sony Group Corporation and its national tax filing group in Japan |
( |
) | — | |||||
Change in deferred tax liabilities on undistributed earnings of foreign subsidiaries and corporate joint ventures |
||||||||
Lower tax rate applied to life and non-life insurance business in Japan |
( |
) | ( |
) | ||||
Foreign income tax differential |
( |
) | ( |
) | ||||
Adjustments to tax reserves |
( |
) | ||||||
Controlled Foreign Company taxation in Japan |
( |
) | ||||||
Other |
||||||||
Effective income tax rate |
- |
% | % | |||||
Yen in millions |
||||||||||||||||||||||||||||
Fiscal year ended March 31, 2021 |
||||||||||||||||||||||||||||
Beginning balance |
Recognized in profit or loss |
Recognized in other comprehensive income |
Changes accompanying business combination |
Recognized directly in equity |
Other* |
Ending balance |
||||||||||||||||||||||
Deferred tax assets: |
||||||||||||||||||||||||||||
Operating loss carryforwards for tax purposes |
— |
— |
— |
|||||||||||||||||||||||||
Defined benefit liabilities |
( |
) |
— |
— |
||||||||||||||||||||||||
Amortization including content assets |
( |
) |
— |
— |
— |
|||||||||||||||||||||||
Lease liabilities |
( |
) |
— |
— |
— |
|||||||||||||||||||||||
Warranty reserves and accrued expenses |
— |
— |
— |
|||||||||||||||||||||||||
Inventories |
— |
— |
— |
|||||||||||||||||||||||||
Depreciation |
— |
— |
— |
|||||||||||||||||||||||||
Tax credit carryforwards |
— |
— |
— |
|||||||||||||||||||||||||
Loss allowances |
( |
) |
— |
— |
— |
|||||||||||||||||||||||
Impairment of investments |
— |
— |
— |
( |
) | |||||||||||||||||||||||
Deferred revenue |
( |
) |
— |
— |
— |
|||||||||||||||||||||||
Other |
— |
( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total deferred tax assets |
( |
) |
— |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deferred tax liabilities: |
||||||||||||||||||||||||||||
Insurance acquisition costs |
( |
) |
( |
) |
( |
) |
— |
— |
( |
) | ( |
) | ||||||||||||||||
Insurance contract liabilities |
( |
) |
( |
) |
( |
) |
— |
— |
( |
) | ||||||||||||||||||
Non-current other receivables in the Pictures segment |
( |
) |
— |
— |
— |
( |
) | |||||||||||||||||||||
Right-of-use |
( |
) |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||||
Equity securities measured at FVOCI |
( |
) |
( |
) |
— |
— |
( |
) |
( |
) | ||||||||||||||||||
Equity securities measured at FVPL |
( |
) |
( |
) |
— |
— |
— |
( |
) | |||||||||||||||||||
Debt securities measured at FVOCI |
( |
) |
( |
) |
— |
— |
— |
( |
) | |||||||||||||||||||
Intangible assets acquired through stock exchange offerings |
( |
) |
— |
— |
— |
— |
— |
( |
) | |||||||||||||||||||
Intangible assets derived from EMI Music Publishing acquisition |
( |
) |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||||
Undistributed earnings of foreign subsidiaries and corporate joint ventures |
( |
) |
( |
) |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||
Investment in M3 |
( |
) |
( |
) |
— |
— |
— |
— |
( |
) | ||||||||||||||||||
Other |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total deferred tax liabilities |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Other mainly consists of exchange differences on translating foreign operations. |
Yen in millions |
||||||||||||||||||||||||||||
Fiscal year ended March 31, 2022 |
||||||||||||||||||||||||||||
Beginning balance |
Recognized in profit or loss |
Recognized in other comprehensive income |
Changes accompanying business combination |
Recognized directly in equity |
Other* |
Ending balance |
||||||||||||||||||||||
Deferred tax assets: |
||||||||||||||||||||||||||||
Operating loss carryforwards for tax purposes |
( |
) | — |
— |
— |
|||||||||||||||||||||||
Defined benefit liabilities |
( |
) | — |
( |
) | |||||||||||||||||||||||
Amortization including content assets |
( |
) | — |
— |
— |
|||||||||||||||||||||||
Lease liabilities |
90,818 |
— |
— |
( |
) |
|||||||||||||||||||||||
Warranty reserves and accrued expenses |
— |
— |
||||||||||||||||||||||||||
Inventories |
( |
) | — |
— |
— |
|||||||||||||||||||||||
Depreciation |
— |
— |
||||||||||||||||||||||||||
Tax credit carryforwards |
( |
) | — |
— |
— |
|||||||||||||||||||||||
Loss allowances |
— |
— |
||||||||||||||||||||||||||
Impairment of investments |
— |
— |
— |
( |
) | |||||||||||||||||||||||
Deferred revenue |
— |
— |
— |
|||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total deferred tax assets |
( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deferred tax liabilities: |
||||||||||||||||||||||||||||
Insurance acquisition costs |
( |
) | ( |
) | ( |
) | — |
— |
( |
) | ( |
) | ||||||||||||||||
Insurance contract liabilities |
( |
) | ( |
) | ( |
) | — |
— |
— |
( |
) | |||||||||||||||||
Non-current other receivables in the Pictures segment |
( |
) | — |
— |
— |
( |
) | — |
||||||||||||||||||||
Right-of-use |
( |
) |
— |
( |
) | — |
( |
) | ||||||||||||||||||||
Equity securities measured at FVOCI |
( |
) | — |
— |
( |
) | ||||||||||||||||||||||
Equity securities measured at FVPL |
( |
) |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||||
Debt securities measured at FVOCI |
( |
) | — |
— |
( |
) | ( |
) | ||||||||||||||||||||
Intangible assets acquired through stock exchange offerings |
( |
) | — |
— |
— |
— |
— |
( |
) | |||||||||||||||||||
Intangible assets derived from EMI Music Publishing acquisition |
( |
) |
( |
) | — |
— |
— |
( |
) | ( |
) | |||||||||||||||||
Undistributed earnings of foreign subsidiaries and corporate joint ventures |
( |
) | ( |
) | — |
— |
— |
( |
) | ( |
) | |||||||||||||||||
Investment in M3 |
( |
) | ( |
) | — |
— |
— |
— |
( |
) | ||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total deferred tax liabilities |
( |
( |
( |
( |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26. |
Reconciliation of the differences between basic and diluted EPS |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Net income attributable to Sony Group Corporation’s stockholders |
||||||||
Adjustment amount to net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation |
||||||||
Zero Coupon Convertible Bonds |
||||||||
Net income attributable to Sony Group Corporation’s stockholders for diluted EPS computation |
||||||||
Thousands of shares |
||||||||
Weighted-average shares outstanding for basic EPS computation |
||||||||
Effect of dilutive securities: |
||||||||
Stock acquisition rights |
||||||||
Zero Coupon Convertible Bonds |
||||||||
Weighted-average shares for diluted EPS computation |
||||||||
Yen |
||||||||
Basic EPS |
||||||||
Diluted EPS |
||||||||
27. |
Supplemental cash flow information |
(1) |
Classification of cash flows in Financial Services segment |
(2) |
Classification of cash flows of content assets |
(3) |
Interest and dividends |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Interest received |
||||||||
Financial services revenue |
|
|
||||||
Financial income |
||||||||
Dividends received |
||||||||
Financial services revenue |
||||||||
Financial income |
||||||||
Interest paid |
||||||||
Financial services expenses |
||||||||
Financial expenses |
(4) |
Non-cash investing and financing activities |
(5) |
Reconciliation of liabilities arising from financing activities |
Yen in millions |
||||||||
Short-term borrowings |
Long-term debt |
|||||||
Balance as of April 1, 2020 |
||||||||
|
|
|
|
|||||
Net cash flows from financing activities |
( |
) | ||||||
Acquisitions through business combinations |
||||||||
Non-cash items: |
||||||||
Conversion of convertible bonds |
( |
) | ||||||
Obtaining assets by entering into lease contracts |
||||||||
Translation adjustment |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total changes |
( |
) | ||||||
|
|
|
|
|||||
Balance as of March 31, 2021 |
||||||||
|
|
|
|
|||||
Net cash flows from financing activities |
( |
) | ||||||
Acquisitions through business combinations |
||||||||
Non-cash items: |
||||||||
Conversion of convertible bonds |
( |
) | ||||||
Obtaining assets by entering into lease contracts |
||||||||
Translation adjustment |
||||||||
Other |
( |
) | ||||||
|
|
|
|
|||||
Total changes |
( |
) | ||||||
|
|
|
|
|||||
Balance as of March 31, 2022 |
||||||||
|
|
|
|
(6) |
Components of cash and cash equivalents |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Cash and demand deposits |
||||||||||||
Time deposits with original maturities of three months or less |
||||||||||||
Money market funds |
||||||||||||
Call loans |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
28. |
Structured entities |
(1) |
Consolidated structured entities |
(2) |
Unconsolidated structured entities |
Yen in millions |
||||||||||||||||
April 1, 2020 |
||||||||||||||||
Presentation in the consolidated statements of financial position |
Maximum exposure to loss |
|||||||||||||||
Investments and advances in the Financial Services segment (Current assets) |
Investments and advances in the Financial Services segment (Non-current assets) |
Other financial assets (Current assets) |
||||||||||||||
Securitized products |
||||||||||||||||
Foreign corporate bonds *1 |
||||||||||||||||
Other investments *2 |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
||||||||||||||||
|
|
|
|
|
|
|
|
Yen in millions |
||||||||||||||||
March 31, 2021 |
||||||||||||||||
Presentation in the consolidated statements of financial position |
||||||||||||||||
Investments and advances in the Financial Services segment (Current assets) |
Investments and advances in the Financial Services segment (Non-current assets) |
Other financial assets (Current assets) |
Maximum exposure to loss |
|||||||||||||
Securitized products |
||||||||||||||||
Foreign corporate bonds *1 |
||||||||||||||||
Other investments *2 |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Yen in millions |
||||||||||||||||
March 31, 2022 |
||||||||||||||||
Presentation in the consolidated statements of financial position |
||||||||||||||||
Investments and advances in the Financial segment (Current assets) |
Investments and advances in the Financial Services segment (Non-current assets) |
Other financial assets (Current assets) |
Maximum exposure to loss |
|||||||||||||
Securitized products |
||||||||||||||||
Foreign corporate bonds *1 |
||||||||||||||||
Other investments *2 |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
||||||||||||||||
|
|
|
|
|
|
|
|
*1 | Foreign corporate bonds include repackaged bonds. |
*2 | Other investments include investment funds. |
29. |
Subsidiaries |
(1) |
Major consolidated subsidiaries |
Name of company |
Country of incorporation /residence |
(As of March 31, 2022) Percentage owned | ||
(2) |
Subsidiaries with material noncontrolling interests |
Yen in millions |
||||
April 1, 2020 |
||||
Shareholding ratio of noncontrolling interests |
% | |||
Cumulative amount of noncontrolling interests |
||||
Yen in millions |
||||
April 1, 2020 |
||||
Current assets |
||||
Non-current assets |
||||
Current liabilities |
||||
Non-current liabilities |
30. |
Acquisitions |
(1) |
Ellation Holdings, Inc. acquisition |
Yen in millions |
||||
Cash and cash equivalents |
||||
Trade and other receivables, and contract assets |
||||
Inventories |
||||
Right-of-use |
||||
Goodwill |
||||
Content assets |
||||
Other intangible assets |
||||
Other |
||||
|
|
|||
Total assets |
||||
|
|
|||
Trade and other payables |
||||
Other current liabilities |
||||
Long-term debt |
||||
Deferred tax liabilities |
||||
Other |
||||
|
|
|||
Total liabilities |
||||
|
|
(2) |
Other acquisitions |
31. |
Divestiture |
32. |
Related party transactions |
(1) |
Account balances and transactions with associates and joint ventures accounted for under the equity method |
Yen in millions |
||||||||||||
April 1 |
March 31 |
|||||||||||
2020 |
2021 |
2022 |
||||||||||
Trade and other accounts receivable |
||||||||||||
Associates |
||||||||||||
Joint ventures |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Other current assets | ||||||||||||
Associates |
||||||||||||
Joint ventures |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Accounts payable, trade | ||||||||||||
Associates |
||||||||||||
Joint ventures |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Short-term borrowings | ||||||||||||
Associates |
||||||||||||
Joint ventures |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Lease liabilities and other | ||||||||||||
Associates |
||||||||||||
Joint ventures |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Accounts payable for property, plant and equipment |
||||||||||||
Associates |
||||||||||||
Joint ventures |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
Yen in millions | ||||||||
Fiscal year ended March 31 | ||||||||
2021 |
2022 |
|||||||
Sales | ||||||||
Associates |
||||||||
Joint ventures |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Purchases | ||||||||
Associates |
||||||||
Joint ventures |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Lease payments and other |
||||||||
Associates |
||||||||
Joint ventures |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|
|
|
|
|
Payments for property, plant and equipment | | |||||||
Associates |
||||||||
Joint ventures |
| |||||||
|
|
|
|
|
|
|
|
|
Total |
||||||||
|
|
|
|
|
|
|
|
|
(2) |
Compensation for key management personnel |
Yen in millions |
||||||||
Fiscal year ended March 31 |
||||||||
2021 |
2022 |
|||||||
Short-term employee benefits |
|
|
||||||
Stock-based compensation |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
33. |
Purchase commitments, contingent liabilities and other |
(1) |
Loan commitments |
(2) |
Purchase commitments |
(3) |
Litigation |
(4) |
Guarantees |
34. |
First-time adoption |
(1) |
Exemption under IFRS 1 |
(2) |
Mandatory exception under IFRS 1 |
(3) |
Reconciliation |
Accounts under U.S. GAAP |
Yen in millions |
Accounts under IFRS | ||||||||||||||||||
U.S. GAAP* |
Reclassification |
Recognition and measurement differences |
IFRS |
Note | ||||||||||||||||
ASSETS |
ASSETS | |||||||||||||||||||
Current assets: |
Current assets: | |||||||||||||||||||
Cash and cash equivalents | — | Cash and cash equivalents | ||||||||||||||||||
Marketable securities | ( |
) | — | — | a | |||||||||||||||
— | — | a,f | Investments and advances in the Financial Services segment | |||||||||||||||||
Notes and accounts receivable, trade and contract assets | ( |
) | — | — | b | |||||||||||||||
— | ( |
) | b,c | Trade and other receivables, and contract assets | ||||||||||||||||
Allowance for credit losses | ( |
) | — | — | b | |||||||||||||||
Inventories | — | Inventories | ||||||||||||||||||
Other receivables | ( |
) | — | — | c | |||||||||||||||
— | d | Other financial assets | ||||||||||||||||||
Prepaid expenses and other current assets | ( |
) | d | Other current assets | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total current assets |
( |
) | Total current assets | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Non-current assets: | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Film costs |
( |
) | — | — | e | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Investments and advances: |
||||||||||||||||||||
Affiliated companies | ( |
) | ( |
Investments accounted for using the equity method | ||||||||||||||||
Securities investments and other | ( |
) | — | — | f | |||||||||||||||
Allowance for credit losses | ( |
) | — | — | ||||||||||||||||
— | a,f,D | Investments and advances in the Financial Services segment | ||||||||||||||||||
Property, plant and equipment: |
||||||||||||||||||||
Land | ( |
) | — | — | ||||||||||||||||
Buildings | ( |
) | — | — | ||||||||||||||||
Machinery and equipment | ( |
) | — | — | ||||||||||||||||
Construction in progress | ( |
) | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Less — Accumulated depreciation | ( |
) | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
— | ( |
) | Property, plant and equipment | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Other assets: |
||||||||||||||||||||
Operating lease right-of-use |
( |
) | — | — | g | |||||||||||||||
Finance lease right-of-use |
( |
) | — | — | g | |||||||||||||||
— | ( |
) | g | Right-of-use | ||||||||||||||||
Intangibles, net | ( |
) | — | — | e | |||||||||||||||
Goodwill | — | ( |
) | C | Goodwill | |||||||||||||||
— | e | Content assets | ||||||||||||||||||
— | e | Other intangible assets | ||||||||||||||||||
Deferred insurance acquisition costs | — | ( |
) | E | Deferred insurance acquisition costs | |||||||||||||||
Deferred income taxes | ( |
) | Deferred tax assets | |||||||||||||||||
— | f,h,D | Other financial assets | ||||||||||||||||||
Other | ( |
) | ( |
) | h,B | Other non-current assets | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total non-current assets | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
( |
) | Total assets | |||||||||||||||||
|
|
|
|
|
|
|
|
Accounts under U.S. GAAP |
Yen in millions |
Accounts under IFRS | ||||||||||||||||||
U.S. GAAP* |
Reclassification |
Recognition and measurement differences |
IFRS |
Note | ||||||||||||||||
LIABILITIES |
LIABILITIES | |||||||||||||||||||
Current liabilities: |
Current liabilities: | |||||||||||||||||||
Short-term borrowings | — | Short-term borrowings | ||||||||||||||||||
Current portion of long-term debt | — | i | Current portion of long-term debt | |||||||||||||||||
Current portion of long-term operating lease liabilities | ( |
) | — | — | i | |||||||||||||||
Notes and accounts payable, trade | ( |
) | — | — | j | |||||||||||||||
— | ( |
) | j,k,m | Trade and other payables | ||||||||||||||||
Accounts payable, other and accrued expenses | ( |
) | — | — | k | |||||||||||||||
Deposits from customers in the banking business | ( |
) | l | Deposits from customers in the banking business | ||||||||||||||||
Accrued income and other taxes | ( |
) | — | Income taxes payables | ||||||||||||||||
— | — | k | Participation and residual liabilities in the Pictures segment | |||||||||||||||||
— | — | k,m | Other financial liabilities | |||||||||||||||||
Other | k,m | Other current liabilities | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total current liabilities | ( |
) | ( |
) | Total current liabilities | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Long-term debt | ( |
) | i | Long-term debt | ||||||||||||||||
Long-term operating lease liabilities | ( |
) | — | — | i | |||||||||||||||
Accrued pension and severance costs | B | Defined benefit liabilities | ||||||||||||||||||
Deferred income taxes | F | Deferred tax liabilities | ||||||||||||||||||
Future insurance policy benefits and other | — | E | Future insurance policy benefits and other | |||||||||||||||||
Policyholders’ account in the life insurance business | — | ( |
) | E | Policyholders’ account in the life insurance business | |||||||||||||||
— | ( |
) | n | Participation and residual liabilities in the Pictures segment | ||||||||||||||||
— | — | l,n,o | Other financial liabilities | |||||||||||||||||
Other | ( |
) | n | Other non-current liabilities | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total non-current liabilities | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
( |
) | Total liabilities | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Redeemable noncontrolling interest |
( |
) | — | — | o | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
EQUITY |
EQUITY | |||||||||||||||||||
Sony Group Corporation’s stockholders’ equity: |
Sony Group Corporation’s stockholders’ equity: | |||||||||||||||||||
Common stock | — | — | Common stock | |||||||||||||||||
Additional paid-in capital |
— | Additional paid-in capital | ||||||||||||||||||
Retained earnings | — | ( |
) | G | Retained earnings | |||||||||||||||
Accumulated other comprehensive income | ( |
) | — | A,B,D E,F |
Accumulated other comprehensive income | |||||||||||||||
Treasury stock, at cost | ( |
) | — | — | ( |
) | Treasury stock, at cost | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
— | Equity attributable to Sony Group Corporation’s stockholders | |||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Noncontrolling interests | — | F | Noncontrolling interests | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total equity |
— | Total equity | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities and equity |
( |
) | Total liabilities and equity | |||||||||||||||||
|
|
|
|
|
|
|
|
* | “U.S. GAAP” represents the consolidated financial statements under U.S. GAAP for the fiscal year ended March 31, 2020, adjusted for the adoption of the Accounting Standards Updates issued by the Financial Accounting Standards Board effective as of April 1, 2020. |
Accounts under U.S. GAAP |
Yen in millions |
Accounts under IFRS | ||||||||||||||||||
U.S. GAAP |
Reclassification |
Recognition and measurement differences |
IFRS |
Note | ||||||||||||||||
ASSETS |
ASSETS | |||||||||||||||||||
Current assets: |
Current assets: | |||||||||||||||||||
Cash and cash equivalents | — | — | Cash and cash equivalents | |||||||||||||||||
Marketable securities | ( |
) | — | — | a,p | |||||||||||||||
— | ( |
) | a,f | Investments and advances in the Financial Services segment | ||||||||||||||||
Notes and accounts receivable, trade and contract assets | ( |
) | — | — | b | |||||||||||||||
— | ( |
) | b,c | Trade and other receivables, and contract assets | ||||||||||||||||
Allowance for credit losses | ( |
) | — | — | b | |||||||||||||||
Inventories | — | ( |
) | Inventories | ||||||||||||||||
Other receivables | ( |
) | — | — | c | |||||||||||||||
— | d | Other financial assets | ||||||||||||||||||
Prepaid expenses and other current assets | ( |
) | ( |
) | d | Other current assets | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total current assets |
( |
) | ( |
) | Total current assets | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Non-current assets: | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Film costs |
( |
) | — | — | e | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Investments and advances: |
||||||||||||||||||||
Affiliated companies | ( |
) | — | Investments accounted for using the equity method | ||||||||||||||||
Securities investments and other | ( |
) | — | — | f | |||||||||||||||
Allowance for credit losses | ( |
) | — | — | ||||||||||||||||
— | a,f,D | Investments and advances in the Financial Services segment | ||||||||||||||||||
Property, plant and equipment: |
||||||||||||||||||||
Land | ( |
) | — | — | ||||||||||||||||
Buildings | ( |
) | — | — | ||||||||||||||||
Machinery and equipment | ( |
) | — | — | ||||||||||||||||
Construction in progress | ( |
) | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Less — Accumulated depreciation | ( |
) | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
— | ( |
) | Property, plant and equipment | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Other assets: |
||||||||||||||||||||
Operating lease right-of-use |
( |
) | — | — | g | |||||||||||||||
Finance lease right-of-use |
( |
) | — | — | g | |||||||||||||||
— | ( |
) | g | Right-of-use | ||||||||||||||||
Intangibles, net | ( |
) | — | — | e | |||||||||||||||
Goodwill | ( |
) | ( |
) | C | Goodwill | ||||||||||||||
— | ( |
) | e | Content assets | ||||||||||||||||
— | ( |
) | e | Other intangible assets | ||||||||||||||||
Deferred insurance acquisition costs | — | ( |
) | E | Deferred insurance acquisition costs | |||||||||||||||
Deferred income taxes | ( |
) | Deferred tax assets | |||||||||||||||||
— | f,h,D | Other financial assets | ||||||||||||||||||
Other | ( |
) | ( |
) | h,B | Other non-current assets | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total non-current assets | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
( |
) | Total assets | |||||||||||||||||
|
|
|
|
|
|
|
|
Accounts under U.S. GAAP |
Yen in millions |
Accounts under IFRS | ||||||||||||||||||
U.S. GAAP |
Reclassification |
Recognition and measurement differences |
IFRS |
Note | ||||||||||||||||
LIABILITIES |
LIABILITIES | |||||||||||||||||||
Current liabilities: |
Current liabilities: | |||||||||||||||||||
Short-term borrowings | — | Short-term borrowings | ||||||||||||||||||
Current portion of long-term debt | i | Current portion of long-term debt | ||||||||||||||||||
Current portion of long-term operating lease liabilities | ( |
) | — | — | i | |||||||||||||||
Notes and accounts payable, trade | ( |
) | — | — | j | |||||||||||||||
— | ( |
) | j,k,m | Trade and other payables | ||||||||||||||||
Accounts payable, other and accrued expenses | ( |
) | — | — | k | |||||||||||||||
Deposits from customers in the banking business | ( |
) | l | Deposits from customers in the banking business | ||||||||||||||||
Accrued income and other taxes | ( |
) | Income taxes payables | |||||||||||||||||
— | ( |
) | k | Participation and residual liabilities in the Pictures segment | ||||||||||||||||
— | — | k,m,o | Other financial liabilities | |||||||||||||||||
Other | k,m,p | Other current liabilities | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total current liabilities | ( |
) | ( |
) | Total current liabilities | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Long-term debt | ( |
) | i | Long-term debt | ||||||||||||||||
Long-term operating lease liabilities | ( |
) | — | — | i | |||||||||||||||
Accrued pension and severance costs | B | Defined benefit liabilities | ||||||||||||||||||
Deferred income taxes | ( |
) | F | Deferred tax liabilities | ||||||||||||||||
Future insurance policy benefits and other | — | E | Future insurance policy benefits and other | |||||||||||||||||
Policyholders’ account in the life insurance business | — | ( |
) | E | Policyholders’ account in the life insurance business | |||||||||||||||
— | ( |
) | n | Participation and residual liabilities in the Pictures segment | ||||||||||||||||
— | — | l,n,o | Other financial liabilities | |||||||||||||||||
Other | ( |
) | n | Other non-current liabilities | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total non-current liabilities | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
( |
) | Total liabilities | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Redeemable noncontrolling interest |
( |
) | — | — | o | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
EQUITY |
EQUITY | |||||||||||||||||||
Sony Group Corporation’s stockholders’ equity: |
Sony Group Corporation’s stockholders’ equity: | |||||||||||||||||||
Common stock | — | — | Common stock | |||||||||||||||||
Additional paid-in capital |
— | Additional paid-in capital | ||||||||||||||||||
Retained earnings | — | ( |
) | G | Retained earnings | |||||||||||||||
Accumulated other comprehensive income | ( |
) | — | A,B,C D,E,F |
Accumulated other comprehensive income | |||||||||||||||
Treasury stock, at cost | ( |
) | — | — | ( |
) | Treasury stock, at cost | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
— | Equity attributable to Sony Group Corporation’s stockholders | |||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Noncontrolling interests | ( |
) | ( |
) | Noncontrolling interests | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total equity |
( |
) | Total equity | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities and equity |
( |
) | Total liabilities and equity | |||||||||||||||||
|
|
|
|
|
|
|
|
Accounts under U.S. GAAP |
Yen in millions |
Accounts under IFRS | ||||||||||||||||||
U.S. GAAP |
Reclassification |
Recognition and measurement differences |
IFRS |
Note | ||||||||||||||||
Sales and operating revenue: |
Sales and financial services revenue: | |||||||||||||||||||
Net sales | q | Sales | ||||||||||||||||||
Financial services revenue | ( |
) | r,D | Financial services revenue | ||||||||||||||||
Other operating revenue | ( |
) | — | — | q | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
( |
) | Total sales and financial services revenue | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Costs and expenses: |
Costs and expenses: | |||||||||||||||||||
Cost of sales | ( |
) | ( |
) | B | Cost of sales | ||||||||||||||
Selling, general and administrative | B | Selling, general and administrative | ||||||||||||||||||
Financial services expenses | r,D | Financial services expenses | ||||||||||||||||||
Other operating expense, net | ( |
) | C | Other operating (income) expense, net | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total costs and expenses | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Equity in net income of affiliated companies |
— | D | Share of profit (loss) of investments accounted for using the equity method | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
( |
) | ( |
) | Operating income | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Other income: |
||||||||||||||||||||
Interest and dividends | ( |
) | — | — | ||||||||||||||||
Gain on equity securities, net | ( |
) | — | — | ||||||||||||||||
Other | ( |
) | — | — | ||||||||||||||||
— | ( |
) | s,D | Financial income | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Other expenses: |
||||||||||||||||||||
Interest expenses | ( |
) | — | — | ||||||||||||||||
Foreign exchange loss, net | ( |
) | — | — | ||||||||||||||||
Net periodic benefit costs other than service cost | ( |
) | — | — | ||||||||||||||||
Other | ( |
) | — | — | ||||||||||||||||
— | ( |
) | s,B | Financial expenses | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income before income taxes |
— | ( |
) | H | Income before income taxes | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income taxes |
— | ( |
) | ( |
) | I | Income taxes | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
|
— | ( |
) | Net income | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income attributable to | ||||||||||||||||||||
Net income attributable to Sony Group Corporation’s stockholders | — | ( |
) | |
Sony Group Corporation’s stockholders | |||||||||||||||
Net income attributable to noncontrolling interests | — | ( |
) | Noncontrolling interests | ||||||||||||||||
|
|
|
|
|
|
|
|
Accounts under U.S. GAAP |
Yen in millions |
Accounts under IFRS | ||||||||||||||||||
U.S. GAAP |
Reclassification |
Recognition and measurement differences |
IFRS |
Note | ||||||||||||||||
Net income |
— | ( |
) | Net income | ||||||||||||||||
Other comprehensive income, net of tax — |
Other comprehensive income, net of tax — | |||||||||||||||||||
Items that will not be reclassified to profit or loss | ||||||||||||||||||||
— | — | D | Changes in equity instruments measured at fair value through other comprehensive income | |||||||||||||||||
Pension liability adjustment | |
— | ( |
) | Remeasurement of defined benefit pension plans | |||||||||||||||
— | — | Share of other comprehensive income of investments accounted for using the equity method | ||||||||||||||||||
Items that may be reclassified subsequently to profit or loss | ||||||||||||||||||||
Unrealized losses on securities | ( |
) | — | ( |
) | ( |
) | D,E,F | Changes in debt instruments measured at fair value through other comprehensive income | |||||||||||
Unrealized gains on derivative instruments | — | ( |
) | Cash flow hedges | ||||||||||||||||
Debt valuation adjustments | ( |
) | — | — | ( |
) | Insurance contract valuation adjustments | |||||||||||||
Foreign currency translation adjustments | ( |
) | Exchange differences on translating foreign operations | |||||||||||||||||
— | |
— | Share of other comprehensive income of investments accounted for using the equity method | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
— | Total other comprehensive income, net of tax | |||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income |
— | ( |
) | Comprehensive income | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive income attributable to | ||||||||||||||||||||
Comprehensive income attributable to Sony Group Corporation’s stockholders | |
— | ( |
) | Sony Group Corporation’s stockholders | |||||||||||||||
Comprehensive income attributable to noncontrolling interests | — | ( |
) | ( |
) | Noncontrolling interests | ||||||||||||||
|
|
|
|
|
|
|
|
(4) |
Notes to reconciliation |
a. | “Marketable securities,” which were separately presented under U.S. GAAP, have been reclassified into “Investments and advances in the Financial Services segment” as current assets under IFRS. Investments held for variable annuities and variable life insurance contracts in the life insurance business, which were included |
in “Marketable securities” under U.S. GAAP, have been reclassified into “Investments and advances in the Financial Services segment” as current assets or non-current assets under IFRS, after considering the current/non-current distinction based on the purpose of the investments related to the insurance liabilities in accordance with paragraph 66 of IAS 1 “Presentation of Financial Statements” (“IAS 1”). |
b. | “Notes and accounts receivable, trade and contract assets” and “Allowance for credit losses,” which were separately presented under U.S. GAAP, have been reclassified into “Trade and other receivables, and contract assets” under IFRS. |
c. | “Other receivables,” which were separately presented under U.S. GAAP, have been reclassified into “Trade and other receivables, and contract assets” under IFRS. |
d. | “Other financial assets,” which were included in “Prepaid expenses and other current assets” under U.S. GAAP, are separately presented under IFRS. |
e. | “Film costs,” which were presented separately, and music catalogs, artist contracts, music distribution rights and other content assets, which were included in “Intangibles, net” under U.S. GAAP are collectively reclassified and presented as “Content assets” under IFRS. “Intangibles, net” other than those reclassified and presented as “Content assets” have been reclassified into “Other intangible assets” under IFRS. |
f. | “Securities investments and other,” which were separately presented under U.S. GAAP, have been reclassified into “Investments and advances in the Financial Services segment” as non-current assets for the amounts related to the Financial Services segment and “Other financial assets” as non-current assets for the amounts related to all segments excluding the Financial Services segment under IFRS. Housing loans in the banking business, which were included in “Securities investments and other” under U.S. GAAP, have been reclassified into “Investments and advances in the Financial Services segment” as current assets or non-current assets under IFRS after considering the current/non-current distinction based on the terms of the contract in accordance with paragraph 66 of IAS 1. |
g. | “Operating lease right-of-use right-of-use “Right-of-use |
h. | “Other financial assets,” which were included in “Other” in other assets under U.S. GAAP, are separately presented under IFRS. |
i. | “Current portion of long-term operating lease liabilities” and “Long-term operating lease liabilities,” which were separately presented under U.S. GAAP, have been reclassified into “Current portion of long-term debt” and “Long-term debt,” respectively under IFRS. |
j. | “Notes and accounts payable, trade,” which were separately presented under U.S. GAAP, have been reclassified into “Trade and other payables” under IFRS. |
k. | “Accounts payable, other and accrued expenses,” which were separately presented under U.S. GAAP, have been reclassified into either “Trade and other payables,” “Participation and residual liabilities in the Pictures segment,” “Other financial liabilities” or “Other current liabilities” under IFRS. |
l. | “Deposits from customers in the banking business,” which were separately presented under U.S. GAAP, have been reclassified into “Other financial liabilities” of non-current liabilities under IFRS, after considering the current/non-current distinction based on the terms of the contract in accordance with paragraph 69 of IAS 1. |
m. | “Trade and other payables” and “Other financial liabilities,” which were included in current liabilities “Other” under U.S. GAAP, are separately presented under IFRS. |
n. | “Participation and residual liabilities in the Pictures segment” and “Other financial liabilities,” which were included in “Other” in other than current liabilities under U.S. GAAP, are separately presented under IFRS. |
o. | “Redeemable noncontrolling interest,” which was separately presented under U.S. GAAP, has been reclassified into “Other financial liabilities” under IFRS. |
p. | Under U.S. GAAP, securities received as collateral other than cash in lending transactions are accounted for as “Marketable securities” and also as “Other current liabilities” representing Sony’s obligation to return the collateral, which was |
q. | “Other operating revenue,” which was separately presented under U.S. GAAP, has been reclassified into “Sales” under IFRS. |
r. | Under IFRS, “Financial services revenue” and “Financial services expenses” have increased by the same amount due to the gross up of revenue and expenses related to service transactions, based on the presentation requirements. |
s. | Under IFRS, “Financial income” and “Financial expenses” have been presented separately, based on the presentation requirements. |
Yen in millions |
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April 1, 2020 |
March 31, 2021 |
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(Consolidated Statements of Financial Position) |
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Accumulated other comprehensive income |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Adjustment to retained earnings |
( |
) | ( |
) | ||||
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|
|
|
Yen in millions |
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April 1, 2020 |
March 31, 2021 |
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(Consolidated Statements of Financial Position) |
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Other non-current assets |
( |
) | ( |
) | ||||
Defined benefit liabilities |
( |
) | ||||||
Accumulated other comprehensive income |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Adjustment to retained earnings |
( |
) | ( |
) | ||||
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|
|
|
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Yen in millions |
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Fiscal year ended March 31, 2021 |
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(Consolidated Statements of Income) |
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Cost of sales |
( |
) | ||||||
Selling, general and administrative |
( |
) | ||||||
Financial expenses |
|
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|
|
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Increase (decrease) in adjustment to income before income taxes |
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|
|
Yen in millions |
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April 1, 2020 |
March 31, 2021 |
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(Consolidated Statements of Financial Position) |
||||||||
Goodwill |
( |
) | ( |
) | ||||
Accumulated other comprehensive income |
— | |||||||
|
|
|
|
|||||
Adjustment to retained earnings |
( |
) | ( |
) | ||||
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|
|
|
|||||
Yen in millions |
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Fiscal year ended March 31, 2021 |
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(Consolidated Statements of Income) |
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Other operating (income) expense, net |
( |
) | ||||||
|
|
|||||||
Increase (decrease) in adjustment to income before income taxes |
( |
) | ||||||
|
|
Yen in millions |
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April 1, 2020 |
March 31, 2021 |
|||||||
(Consolidated Statements of Financial Position) |
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Other financial assets (non-current) |
||||||||
Investments and advances in the Financial Services segment (non-current) |
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|
|
|
|
|||||
Accumulated other comprehensive income |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Adjustment to retained earnings |
( |
) | ||||||
|
|
|
|
|||||
Yen in millions |
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Fiscal year ended March 31, 2021 |
||||||||
(Consolidated Statements of Income) |
||||||||
Financial services revenue |
( |
) | ||||||
Financial services expenses |
( |
) | ||||||
Share of profit (loss) of investments accounted for using the equity method |
( |
) | ||||||
Financial income |
( |
) | ||||||
|
|
|||||||
Increase (decrease) in adjustment to income before income taxes |
( |
) | ||||||
|
|
Yen in millions |
||||||||
April 1, 2020 |
March 31, 2021 |
|||||||
(Consolidated Statements of Financial Position) |
||||||||
Deferred insurance acquisition costs |
( |
) | ( |
) | ||||
Future insurance policy benefits and other |
( |
) | ( |
) | ||||
Policyholders’ account in the life insurance business |
||||||||
Accumulated other comprehensive income |
||||||||
|
|
|
|
Yen in millions |
||||||||
April 1, 2020 |
March 31, 2021 |
|||||||
(Consolidated Statements of Financial Position) |
||||||||
Deferred tax liabilities |
( |
) | ( |
) | ||||
Noncontrolling interests |
( |
) | — | |||||
Accumulated other comprehensive income |
||||||||
|
|
|
|
Yen in millions |
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April 1, 2020 |
March 31, 2021 |
|||||||
Retained earnings under U.S. GAAP |
||||||||
|
|
|
|
|||||
1 Exchange differences on translating foreign operations *A |
( |
) | ( |
) | ||||
2 Post-employment benefits *B |
( |
) | ( |
) | ||||
3 Impairment of goodwill *C |
( |
) | ( |
) | ||||
4 Equity instruments and debt instruments *D |
( |
) | ||||||
5 Other |
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Tax effect of adjustments |
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|
|
|
|
|||||
Total |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Retained earnings under IFRS |
||||||||
|
|
|
|
Yen in millions |
||||||
Fiscal year ended March 31, 2021 |
||||||
Income before income taxes under U.S. GAAP |
||||||
|
|
|||||
1 Post-employment benefits *B |
||||||
2 Impairment of goodwill *C |
( |
) | ||||
3 Equity instruments and debt instruments *D |
( |
) | ||||
4 Other |
( |
) | ||||
|
|
|||||
Total |
( |
) | ||||
|
|
|||||
Income before income taxes under IFRS |
||||||
|
|
Yen in millions |
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Fiscal year ended March 31, 2021 |
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Cash flows from operating activities |
Cash flows from investing activities |
Cash flows from financing activities |
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Consolidated statements of cash flows under U.S. GAAP |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
1. Principal payments for operating lease liabilities *1 |
— | ( |
) | |||||||||
2. Additions and disposals of content assets *2 |
( |
) | — | |||||||||
3. Changes in assets and liabilities in the Financial Services segment *3 |
||||||||||||
(1) Investments and advances in the Financial Services segment |
( |
) | — | |||||||||
(2) Deposits from customers in the banking business |
— | ( |
) | |||||||||
(3) Borrowings in the life insurance business and the banking business |
— | ( |
) | |||||||||
(4) Future insurance policy benefits and other and policyholders’ account in the life insurance business |
— | ( |
) | |||||||||
4. Other |
( |
) | ||||||||||
|
|
|
|
|
|
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Total |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Consolidated statements of cash flows under IFRS |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
*1 | P rincipal payments for operating lease liabilities |
*2 | Additions and disposals of content assets |
*3 | Changes in assets and liabilities in the Financial Services segment |
35. |
Subsequent event |