Sony Group Corporation (NYSE:SONY) Q3 2022 Earnings Call Transcript

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And we have that evidenced by the release of one piece film led and following on from unchartered which recorded box office revenue of more than $400 million worldwide with more than 10 projects under the way convert Games IP to video, including Gran Turismo and God of War. The live action television drama adoption of the last of us, which began airing HBO, HBO Max and Max January 15th, began the big hit in the first episode, since its first release with the 22 million viewers. Due to this, the game of the last released in 2020 and Amazon sales ranking for PS4 software in the U.S., which has the positive impact on the Gamesload. More by, in March, we plan to release the first PC game software, by using this IP. In this way, we plan to further increase strengthen our values, highly appealing IP through multifaceted exploitation of the IP into the collaboration after .

Naomi Matsuoka: Next is the Entertainment Technology & Services segment. FY ’22 Q3 sales increased 10% year-on-year to Â¥752.8 billion due to foreign exchange rates and increased sales of digital cameras. Operating income increased Â¥1.1 billion year-on-year to Â¥81.1 billion primarily due to the benefit of the increased sales of digital cameras, despite the impact of decreased sales of televisions. In FY ’22, forecast for the sales of Â¥2.480 trillion , a decrease of Â¥30 billion from the previous forecast. There’s no change from the previous forecast for operating income. By responding swiftly to market changes and minimizing the impact of the economic slowdown and deterioration of the market environment in certain categories such as TVs, we secured a profit for the entire segment during the quarter that was the same level as of the same quarter of the previous year.

Regarding interchangeable lens cameras. Although the pent-up demand due to product shortage in the previous fiscal year is abating, there has been no noticeable negative impact from the economic slowdown so far. Our sales are relatively stable. We have been able to control the supply chain disruption caused by the resurgence of COVID-19 in China since the end of last year, so that it does not affect sales. We are closely monitoring the situation after the Chinese New Year and are taking necessary action. We anticipate that the business environment will become even more severe over the next fiscal year. Therefore, we will revise our sales plan for the fourth quarter even more conservatively and will proceed with the business operations with the top priorities being prevention of any negative impact from being carried over into the next fiscal year and acceleration of our efforts to further strengthen our business structure.

Next is I&SS segment. FY ’22 Q3 sales increased a significant 28% year-on-year to Â¥417.2 billion, mainly due to the impact of foreign exchange rates and increase in sales of image sensors for mobile products. Operating income was Â¥84.9 billion, a significant increase of Â¥20.2 billion year-on-year and mainly due to a positive impact foreign exchange rate despite an increase in costs, both sales and operating income for the current quarter were recorded heights for this segment. The FY ’22 sales forecast has been decreased Â¥20 billion from the previous forecast of Â¥1.420 trillion. There’s no change from the previous forecast for the operating income. The smartphone market continues to be sluggish, center to midrange and the low end products in China.

Recently, this trend has become partially conspicuous for high end products as well, but that is highly within the expectations of our previous forecast. At present, we assume that the smartphone market will recover moderately starting from the second half of this fiscal year, ending in March 31, 2024, and we are proceeding with the careful verification and assessment in preparation for formulating a business plan for the next fiscal year. On the other hand, sales of our large format high definition sensors for flagship models have grown significantly from the previous fiscal year leading to significant growth in sales for the segment. We believe that the growth in the trend towards larger size, higher image quality, higher performance mobile sensors is a major achievement this quarter.

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