Sony Group Corporation (NYSE:SONY) Q1 2023 Earnings Call Transcript

Sadahiko Hayakawa: I would like to respond to your question. First, the first quarter operating cash flow is minus JPY80.7 billion. Year-on-year, you have made a comparison, but as compared to year-on-year, positive by JPY90 billion. In first quarter, then it is negative. The key point, the PlayStation 5 inventory and I&SS, first quarter and second quarter inventory has built up slightly. So based upon these, cash flow level has come down. But this is the working capital, especially PlayStation 5 Station 5, towards the third quarter selling — sell-through, which results in cash returning. That is the assumption. So ultimately, this year, excluding Financial Services, JPY1.25 trillion is our forecast, which remains unchanged. Basically, for the cash flow, working capital, especially game, PlayStation 5 and I&SS inventory, in the first quarter, these will have impact. That’s our analysis.

Unidentified Company Representative: Thank you very much. So this concludes today’s Q1 FY 2023 consolidated financial results presentation. On behalf of Sony Group Corporation. I would like to again thank you all very much for your participation.