Sony Group Corporation

Strong Q3 at group level; record profitability; FY forecasts raised - FY2025 Q3 (continuing operations): Sales +1% YoY to JPY 3,713.7bn; Operating income +22% to JPY 515bn (record); Net income +11% to JPY 377.3bn. - FY2025 outlook (upward revision): Sales +3% to JPY 12,300bn; Operating income +8% to JPY 1,540bn; Net income +8% to JPY 1,130bn. - Operating cash flow forecast raised +9% to JPY 1,630bn → supports shareholder returns.

Business mix: G&NS and Music driving profit; Studio console cycle still a headwind - G&NS Q3: Sales -4% YoY (mainly lower PS5 hardware unit sales), but Operating income +19% YoY to a third-quarter record, driven by FX, and higher network services + first-party software + PlayStation Store. - Engagement: PlayStation monthly active users +2% YoY (Dec) to 132m (record); total play time +0.4% YoY (not accelerating as much as users). - PS5 installed base: expanded steadily; >92m units cumulative sell-in; management acknowledged year-end hardware conditions were more challenging than expected. - Memory supply: “minimum quantity” for next year-end campaign is secured; management will continue negotiating suppliers and aims to minimize memory cost impact by prioritizing installed-base monetization (software/network). - Studio: Ghost of Yotei exceeded prior-title sales in comparable period; Helldivers 2 and MLB The Show contribute recurring revenue; Marathon scheduled Mar 5 after user-feedback-driven modifications; next year planned titles include Saros and Marvel’s Wolverine. - G&NS FY forecast raised: Sales +4% to JPY 4,630bn; Op income +2% to JPY 510bn.

Music and semiconductors are upside drivers; Music streaming growth expected to remain steady - Music Q3: Sales +13% YoY; Operating income +9% YoY to record (excluding one-offs). Streaming growth: Recorded Music +5% YoY, Music Publishing +13% YoY (USD basis). - Music FY forecast raised: Sales +4% to JPY 2,050bn; Op income +16% to JPY 445bn. - Management outlook: music market expected to grow mid-to-long term with ~5% to mid/late single-digit range; cited drivers: DSP platform (ARPU/user increases) and user growth. - Strategic Peanuts/IP investment (closure expected this FY): Sony to gain 80% ownership of Peanuts IP (Music + Picture initiative) to expand scale and leverage Sony distribution/capabilities (not yet a near-term earnings engine, but a medium-term opportunity). - I&SS Q3: Sales +21% YoY; Op income +35% YoY (record) due to mobile image sensor volume + ASP. - I&SS FY forecast raised: Sales +5% to JPY 2,080bn; Op income +13% to JPY 350bn, attributed to volume recovery + higher-die sensors and FX. - Investor Q on sensor pricing: price rise tied to smartphone camera upgrades (higher resolution/features, larger sensors).