Sony Group Corporation · TSE:6758

Sony — Q2 2024 Earnings Presentation

31 slides from Sony's earnings presentation, Nov 8, 2024

  1. Slide 1: Q2 FY2024 Consolidated Financial Results

    Q2 FY2024 Consolidated Financial Results (Three months ended September 30, 2024) November 8, 2024 Sony Group Corporation

  2. Slide 2: Q2 FY2024 Consolidated Results

    Q2 FY2024 Consolidated Results Sony without Financial Services Consolidated (Bln Yen) Q2 FY23 Q2 FY24 Change Q2 FY23 Q2 FY24 Change 2,728.9 2,973.4 +244.5 2,828.6 2,905.6 +77.0 Sales*1 （+9%） （+3%） Operating income 247.3 389.3 +142.0 263.0 455.1 +192.1 （+57%） （+73%） Operating income margin 9.1% 13.1%

  3. Slide 3: Q2 FY2024 Consolidated Results: Year-on-year Change

    Q2 FY2024 Consolidated Results: Year-on-year Change Year-on-year Contributing Factors Change (+) Better／(-) Worse ・(+) Significant increases in I&SS and G&NS segments sales ・(+) Increases in Music and ET&S segments sales Sales +77.0 bln yen ・(ー) Significant decreases in Financial Services and Pictur

  4. Slide 4: Adjusted Income (Q2・Sony without Financial Services)

    Adjusted Income (Q2・Sony without Financial Services) *1 (Bln Yen) Q2 FY23 Q2 FY24 Change from Q2 FY23 Before Non-recurring Before Non-recurring Before Adjusted Adjusted Adjusted adjustment (profit) / loss*2 adjustment (profit) / loss*2 adjustment Operating income 247.3 － 247.3 389.3 － 389.3 +142.0 +

  5. Slide 5: Non-Recurring Profit and Loss (Sony without Financial Services)

    Non-Recurring Profit and Loss (Sony without Financial Services) (Bln Yen) Q2 1H Q2 1H FY23 FY23 FY23 FY24 FY24 Items included in operating income Items included in operating income － +6.0 +6.0 － － (before adjustment) (before adjustment) Remeasurement gain resulting from the consolidation of a compan

  6. Slide 6: Adjusted Income (Q2・Consolidated)

    Adjusted Income (Q2・Consolidated) *1 (Bln Yen) Q2 FY23 Q2 FY24 Change from Q2 FY23 Before Non-recurring Before Non-recurring Before Adjusted Adjusted Adjusted adjustment (profit) / loss*2 adjustment (profit) / loss*2 adjustment Operating income 263.0 － 263.0 455.1 － 455.1 +192.1 +192.1 （+73%） （+73%）

  7. Slide 7: Non-Recurring Profit and Loss (Consolidated)

    Non-Recurring Profit and Loss (Consolidated) (Bln Yen) Q2 1H Q2 1H FY23 FY23 FY23 FY24 FY24 Items included in operating income Items included in operating income － +6.0 +25.8 － － (before adjustment) (before adjustment) Remeasurement gain resulting from the consolidation of a company previously accou

  8. Slide 8: Q2 FY2024 Results by Segment

    Q2 FY2024 Results by Segment (Bln Yen) Q2 FY23 Q2 FY24 Change FX Impact Game & Network Services Sales 954.1 1,071.5 +117.4 +33.2 (G&NS) Operating income 48.9 138.8 +89.9 +4.3 Sales 408.7 448.2 +39.5 +10.7 Music Operating income 81.0 90.4 +9.4 Sales 399.6 355.8 -43.8 +11.0 Pictures Operating income 2

  9. Slide 9: 1H FY2024 Consolidated Results

    1H FY2024 Consolidated Results (Bln Yen) Sony without Financial Services Consolidated 1H FY23 1H FY24 Change 1H FY23 1H FY24 Change 5,014.7 5,540.9 +526.2 5,792.3 5,917.2 +125.0 Sales （+10%） （+2%） Operating income 445.9 638.5 +192.6 516.1 734.2 +218.1 （+43%） （+42%） Operating income margin 8.9% 11.5%

  10. Slide 10: Adjusted Income (1H・Sony without Financial Services)

    Adjusted Income (1H・Sony without Financial Services) * (Bln Yen) 1H FY23 1H FY24 Change from 1H FY23 Before Non-recurring Before Non-recurring Before Adjusted Adjusted Adjusted adjustment (profit) / loss adjustment (profit) / loss adjustment Operating income 445.9 -6.0 439.9 638.5 － 638.5 +192.6 +19

  11. Slide 11: Adjusted Income (1H・Consolidated)

    Adjusted Income (1H・Consolidated) * (Bln Yen) 1H FY23 1H FY24 Change from 1H FY23 Before Non-recurring Before Non-recurring Before Adjusted Adjusted Adjusted adjustment (profit) / loss adjustment (profit) / loss adjustment Operating income 516.1 -6.0 510.0 734.2 － 734.2 +218.1 +224.1 （+42%） （+44%） I

  12. Slide 12: 1H FY2024 Results by Segment

    1H FY2024 Results by Segment (Bln Yen) 1H FY23 1H FY24 Change FX Impact Game & Network Services Sales 1,726.0 1,936.4 +210.5 +118.7 (G&NS) Operating income 98.1 204.1 +106.0 +5.7 Sales 766.9 890.2 +123.3 +53.7 Music Operating income 154.4 176.3 +21.9 Sales 720.0 693.1 -26.9 +51.2 Pictures Operating

  13. Slide 13: FY2024 Consolidated Results Forecast

    FY2024 Consolidated Results Forecast (Bln Yen) Sony without Financial Services Consolidated FY24 FCT FY24 FCT FY23 FY23 August November Change August November Change +100 +100 11,265.0 11,700 11,800 13,020.8 12,610 12,710 Sales （+1%） （+1%） Operating income 1,035.3 1,165 1,165 － 1,208.8 1,310 1,310 －

  14. Slide 14: FY2024 Consolidated Results Forecast: Change from August Forecast

    FY2024 Consolidated Results Forecast: Change from August Forecast Change from Contributing Factors August (+) Better／(-) Worse forecast Sales +100 bln yen ・(+) Upward revision to G&NS segment sales forecast +1% ・(ー) Downward revisions to I&SS and Pictures segments sales forecasts ・(+) Upward revisio

  15. Slide 15: FY2024 Results Forecast by Segment

    FY2024 Results Forecast by Segment (Bln Yen) FY24 FY24 Change from FY23 August FCT November FCT August FCT Game & Network Services Sales 4,267.7 4,320 4,490 +170 (G&NS) Operating income 290.2 320 355 +35 Sales 1,619.0 1,740 1,740 - Music Operating income 301.7 330 330 - Sales 1,493.1 1,520 1,510 -10

  16. Slide 16: Game & Network Services Segment (G&NS Segment)

    Game & Network Services Segment (G&NS Segment) Sales, Operating Income and Adjusted OIBDA Sales (Bln Yen) Operating Income Q2 FY2024 (year-on-year) Adjusted OIBDA  Sales: 117.4 bln yen (12%) significant increase (FX Impact: +33.2 bln yen) ·(+) Increase in sales of non-first-party game software titl

  17. Slide 17: Music Segment

    Music Segment Sales, Operating Income and Adjusted OIBDA Sales (Bln Yen) Operating Income Q2 FY2024 (year-on-year) Adjusted OIBDA  Sales: 39.5 bln yen (10%) increase (FX Impact: +10.7 bln yen) ・(+) Higher revenues from live events, merchandising and licensing in Recorded Music 448.2 408.7 ・(+) High

  18. Slide 18: Pictures Segment

    Pictures Segment Sales, Operating Income and Adjusted OIBDA Sales (Bln Yen) Q2 FY2024 (year-on-year) Operating Income The following analysis is on a U.S. dollar basis Adjusted OIBDA  Sales: 43.8 bln yen (11%) significant decrease (U.S. dollar basis: -382 mil USD / -14%) ·(ー) Lower series deliveries

  19. Slide 19: Entertainment, Technology & Services Segment (ET&S Segment)

    Entertainment, Technology & Services Segment (ET&S Segment) Sales, Operating Income and Adjusted OIBDA Sales (Bln Yen) Q2 FY2024 (year-on-year) Operating Income  Sales: 6.2 bln yen (1%) increase (FX Impact: +15.0 bln yen) Adjusted OIBDA ·(+) Impact of foreign exchange rates 613.5 619.8  OI: 9.1 bl

  20. Slide 20: Imaging & Sensing Solutions Segment (I&SS Segment)

    Imaging & Sensing Solutions Segment (I&SS Segment) Sales, Operating Income and Adjusted OIBDA Q2 FY2024 (year-on-year) (Bln Yen) Sales  Sales: 129.3 bln yen (32%) significant increase (FX Impact: +29.7 bln yen) Operating Income ·(+) Increase in sales of image sensors for mobile products 535.6 Adjus

  21. Slide 21: Financial Services Segment

    Financial Services Segment Financial Services Revenue, Q2 FY2024 (year-on-year) Operating Income and Adjusted OIBDA  Revenue: 167.2 bln yen significant decrease Financial Services Revenue (Bln Yen) ·(ー) Significant decrease in revenue at Sony Life Operating Income (175.6 bln yen decrease, revenue:

  22. Slide 22: Financial Services Segment

    Financial Services Segment Sony Life Operating Income Breakdown Adjusted Net Income*3 Group Consolidated ESR*6 Insurance Service Result*1 Sony Life Investment Result Other*4 ESR Other Result Other*2 Economic value-based capital FY23 Economic value-based risk post-tax （Bln Yen） （Bln Yen） Adjusted ROE

  23. Slide 23: Financial Services Segment

    Financial Services Segment (Bln Yen) Reconciliations from Net Income to Adjusted Net Income FY23 FY24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *1 Pre-tax net income (loss) (Operating Income) 54.5 15.7 77.3 26.1 30.0 65.7 Post-tax net income (loss) 38.5 10.7 55.0 19.8 21.5 46.7 SFGI related adjustments - - - - - - So

  24. Slide 24: Reconciliation Table for Adjusted EBITDA (Q2)

    Reconciliation Table for Adjusted EBITDA (Q2) (Bln Yen) Sony without Financial Consolidated Services Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Net income attributable to Sony Group Corporation’s stockholders 189.4 291.9 200.1 338.5 Net income attributable to noncontrolling interests 0.9 1.3 1.1 1.3 Income tax

  25. Slide 25: Results and Reconciliation Table for Adjusted OIBDA by Segment (Q2)

    Results and Reconciliation Table for Adjusted OIBDA by Segment (Q2) (Bln Yen) Q2 FY23 Q2 FY24 Change Depreciation Depreciation Operating Non-recurring Adjusted Operating Non-recurring Adjusted Adjusted and and Income (profit) / loss*2 OIBDA Income (profit) / loss*2 OIBDA OIBDA Amortization*1 Amortiz

  26. Slide 26: Reconciliation Table for Adjusted EBITDA (1H)

    Reconciliation Table for Adjusted EBITDA (1H) (Bln Yen) Sony without Financial Consolidated Services 1H FY23 1H FY24 1H FY23 1H FY24 Net income attributable to Sony Group Corporation’s stockholders 418.5 501.9 417.7 570.1 Net income attributable to noncontrolling interests 1.2 5.5 1.4 5.5 Income tax

  27. Slide 27: Results and Reconciliation Table for Adjusted OIBDA by Segment (1H)

    Results and Reconciliation Table for Adjusted OIBDA by Segment (1H) (Bln Yen) 1H FY23 1H FY24 Change Depreciation Depreciation Operating Non-recurring Adjusted Operating Non-recurring Adjusted Adjusted and and Income (profit) / loss*2 OIBDA Income (profit) / loss*2 OIBDA OIBDA Amortization*1 Amortiz

  28. Slide 28: Reconciliation Table for Adjusted EBITDA

    Reconciliation Table for Adjusted EBITDA (Bln Yen) Sony without Consolidated Financial Services FY23 FY23 Net income attributable to Sony Group Corporation’s stockholders 896.6 970.6 Net income attributable to noncontrolling interests 9.4 9.9 Income taxes 239.1 288.2 Interest expenses / (income), ne

  29. Slide 29: Forecast for Adjusted OIBDA by Segment

    Forecast for Adjusted OIBDA by Segment (Bln Yen) FY24 FY24 Change from FY23 November August FCT August FCT FCT Depreciation Operating Non-recurring Adjusted Adjusted Adjusted Adjusted and Income (profit) / loss*2 OIBDA OIBDA OIBDA OIBDA Amortization*1 Game & Network Services (G&NS) 290.2 117.7 － 407

  30. Slide 30: Notes

    Notes Notes about Adjusted OIBDA and Adjusted EBITDA Adjusted OIBDA (Operating Income Before Depreciation and Amortization) and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) are calculated by the following formulas: Adjusted OIBDA = Operating income + Depreciation

  31. Slide 31: Cautionary Statement

    Cautionary Statement Statements made in this material with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limite

Sony Group — Q2 2024 Earnings Presentation on 6ix