Sony : Notice Regarding Recording of Loss on the Valuation of Shares of an Affiliate and Provision for Loss on the Business of an Affiliate in the Standalone Financial Results for the Fiscal Year ended March 31, 2026 Filing

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May 8, 2026 Sony Group Corporation Notice Regarding Recording of Loss on the Valuation of Shares of an Affiliate and Provision for Loss on the Business of an Affiliate in the Standalone Financial Results for the Fiscal Year ended March 31, 2026 As disclosed in the announcements entitled "Announcement Regarding the Discontinuation of Development and Launch of Sony Honda Mobility's Electric Vehicle Models and the Review of Its Business Direction" on March 25, 2026 and "Announcement Regarding the Future Business Direction of Sony Honda Mobility" on April 21, 2026, Sony Honda Mobility Inc. ("SHM"), a joint venture between Sony Group Corporation ("Sony") and Honda Motor Co., Ltd. ("Honda"), has decided to discontinue the development and launch of its electric vehicle ("EV") models. In connection with this decision, Sony recorded a loss on the valuation of shares of an affiliate and a provision for loss on the business of an affiliate in its standalone financial results for the fiscal year ended March 31, 2026, as follows. Details of losses Following the discontinuation of the launch of EV models by SHM, SHM's liabilities are expected to exceed its assets, causing the value of the shares of SHM held by Sony to decline significantly. As a result, Sony carried out an impairment of the shares of SHM and recorded a 100 billion yen loss on the valuation of shares of SHM as an extraordinary loss in its standalone financial results. In addition, Sony recorded a 25.2 billion yen provision for loss on the business of SHM as an extraordinary loss in its standalone financial results, which is the estimated amount of future loss that Sony will recognize out of SHM's excess liabilities, based on the equity interest ratio between Sony and Honda. Outlook In Sony's consolidated financial results, the above-mentioned loss on the valuation of shares of SHM and provision for loss on the business of SHM will be eliminated and will not have any impact. As disclosed on March 25, 2026, Sony accounts for SHM using the equity method, and records its 50% share of SHM's net income after taxes as operating income in All Other in its consolidated financial results. As a result of SHM recording expenses associated with the discontinuation of the launch of its EV models in its financial results for the fiscal year ended March 31, 2026, Sony recorded an additional 44.9 billion yen loss of equity method investment in its consolidated financial results for the fiscal year ended March 2026. For Sony's consolidated financial results for the fiscal year ended March 31, 2026, please refer to "FY2025 Consolidated Financial Results" (the presentation material for the earnings announcement) disclosed today. End of document

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