{"url_path":"/sec/sony/10-k/2026/item-4","section_key":"item-4","section_title":"Item 4 Information on the Company","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-06-18","source_url":"https://www.sec.gov/Archives/edgar/data/313838/0001193125-26-274893-index.html","accession_number":"0001193125-26-274893","cik":"0000313838","ticker":"SONY","issuer_name":"Sony Group Corp","edgar_url":"https://www.sec.gov/Archives/edgar/data/313838/0001193125-26-274893-index.html","primary_entity_key":"0000313838","primary_entity_name":"Sony Group Corp"},"word_count":11502,"has_tables":true,"body_markdown":"Item 4.\n\nInformation on the Company\n\n \n\nA.\n\nHistory and Development of the Company\n\nSony Group Corporation was established in Japan in May 1946 as Tokyo Tsushin Kogyo Kabushiki Kaisha, a joint stock company (Kabushiki Kaisha) under Japanese law. It changed its name to Sony Kabushiki Kaisha (“Sony Corporation” in English) in January 1958, and changed its name again to Sony Group Kabushiki Kaisha (“Sony Group Corporation” in English) in April 2021 in order to focus on its role as the headquarters of the Sony Group.\n\nIn December 1958, Sony Group Corporation was listed on the Tokyo Stock Exchange (“TSE”). In June 1961, Sony Group Corporation issued American Depositary Receipts (“ADRs”) in the U.S.\n\nIn March 1968, Sony Group Corporation established CBS/Sony Records Inc. in Japan, as a 50-50 joint venture company between Sony Group Corporation and CBS Inc. in the U.S. In January 1988, the joint venture became a wholly-owned subsidiary of Sony Group Corporation, and in April 1991, changed its name to Sony Music Entertainment (Japan) Inc. (“SMEJ”). In November 1991, SMEJ was listed on the Second Section of the TSE.\n\nIn September 1970, Sony Group Corporation was listed on the New York Stock Exchange (the “NYSE”).\n\nIn August 1979, Sony Group Corporation established Sony Prudential Life Insurance Co., Ltd. in Japan, as a 50-50 joint venture company between Sony Group Corporation and The Prudential Insurance Company of America. In April 1991, the joint venture changed its name to Sony Life Insurance Co., Ltd. (“Sony Life”). In March 1996, Sony Life became a wholly-owned subsidiary of Sony Group Corporation.\n\nIn July 1984, Sony Magnescale Inc., a subsidiary of Sony Group Corporation, was listed on the Second Section of the TSE. The subsidiary changed its name to Sony Precision Technology Inc. in October 1996 and then to Sony Manufacturing Systems Corporation in April 2004. In April 2012, Sony Manufacturing Systems was merged into Sony EMCS Corporation. Sony EMCS Corporation changed its name to Sony Global Manufacturing & Operations Corporation in April 2016.\n\nIn July 1987, Sony Chemicals Corporation, a subsidiary of Sony Group Corporation, was listed on the Second Section of the TSE. The subsidiary changed its name to Sony Chemical & Information Device Corporation in July 2006, and changed its name again to Dexerials Corporation in October 2012.\n\nIn January 1988, Sony Group Corporation acquired CBS Records Inc., the music business division of CBS Inc. in the U.S. The acquired company changed its name to Sony Music Entertainment Inc. in January 1991 and then to Sony Music Holdings Inc. in December 2008.\n\nIn November 1989, Sony Group Corporation acquired Columbia Pictures Entertainment, Inc. in the U.S. In August 1991, Columbia Pictures Entertainment, Inc. changed its name to Sony Pictures Entertainment Inc. (“SPE”).\n\nIn November 1993, Sony Group Corporation established Sony Computer Entertainment Inc. in Japan. Sony Computer Entertainment Inc. changed its name to Sony Interactive Entertainment Inc. in April 2016.\n\nIn October 1995, Sony/ATV Music Publishing LLC (“Sony/ATV”) was formed as a 50-50 joint venture company between Sony Group Corporation and Michael Jackson. In September 2016, the joint venture became a wholly-owned subsidiary of Sony Group Corporation. In January 2021, Sony/ATV changed its name to Sony Music Publishing (US) LLC.\n\nIn January 2000, acquisition transactions by way of a share exchange were completed such that three subsidiaries which had been listed on the TSE - SMEJ, Sony Chemicals Corporation (currently Dexerials Corporation), and Sony Precision Technology Inc. (currently Sony Global Manufacturing & Operations Corporation) - became wholly-owned subsidiaries of Sony Group Corporation. In September 2012, Sony Group Corporation completed the sale of certain of its chemical products businesses, including Sony Chemical & Information Device Corporation (currently Dexerials Corporation) to Development Bank of Japan Inc.\n\nIn October 2001, Sony Ericsson Mobile Communications AB (“Sony Ericsson”), a 50-50 joint venture company between Sony Group Corporation and Telefonaktiebolaget LM Ericsson (“Ericsson”) of Sweden, was established. In February 2012, Sony acquired Ericsson’s 50% equity interest in Sony Ericsson. As a result of the acquisition, Sony Ericsson became a wholly-owned subsidiary of Sony and changed its name to Sony Mobile Communications AB.\n\n \n\n- 17 -\n\n##### Table of Contents\n\nIn October 2002, Aiwa Co., Ltd. (“Aiwa”), then a TSE-listed subsidiary, became a wholly-owned subsidiary of Sony Group Corporation. In December 2002, Aiwa was merged into Sony Group Corporation.\n\nIn June 2003, Sony Group Corporation adopted the “Company with Three Committees” corporate governance system in line with the revised Japanese Commercial Code then effective. (Refer to “Board Practices” in “Item 6. Directors, Senior Management and Employees.”)\n\nIn April 2004, Sony Group Corporation established Sony Financial Holdings, Inc. (“SFH”), a financial holding company, in Japan. Sony Life, Sony Assurance Inc. (“Sony Assurance”), and Sony Bank Inc. (“Sony Bank”) became subsidiaries of SFH. In October 2007, SFH was listed on the First Section of the TSE in conjunction with the global initial public offering of shares of SFH by Sony Group Corporation and SFH. In September 2020, SFH became a wholly-owned subsidiary of Sony Group Corporation through Sony’s tender offer for the common shares and the related stock acquisition rights of SFH and the subsequent procedures for the purchase of all of SFH’s remaining common shares. In October 2021, SFH changed its company name to SFGI. In May 2023, Sony Group Corporation announced that it had begun an assessment of the Partial Spin-off of the Financial Services business and the listing of the shares of SFGI, and in February 2024, Sony Group Corporation obtained approval from the Minister of Economy, Trade and Industry of Japan regarding its Corporate Restructuring Plan for the Partial Spin-off of the Financial Services business based on the Act on Strengthening Industrial Competitiveness of Japan. In May 2025, Sony Group Corporation decided to submit a resolution for the execution of the Partial Spin-off of the Financial Services business, as of October 1, 2025, to the Board of Directors in early September 2025. In September 2025, SFGI shares of common stock were listed on the Prime Market of the TSE, which was a condition for the execution of the Partial Spin-off of the Financial Services business. In October 2025, the execution of the Partial Spin-off of the Financial Services business was completed. As a result of the execution, Sony Group Corporation held 16.40% of shares of common stock of SFGI, and SFGI ceased being a consolidated subsidiary, and became an affiliated company of Sony Group Corporation.\n\nIn April 2004, S-LCD Corporation (“S-LCD”), a joint venture between Sony Group Corporation and Samsung Electronics Co., Ltd. of Korea for the manufacture of amorphous thin film transistor LCD panels, was established in Korea. Sony’s stake in S-LCD was 50% minus 1 share. In January 2012, Sony sold all of its shares of S-LCD to Samsung Electronics Co., Ltd.\n\nIn August 2004, Sony combined its worldwide recorded music business, excluding its recorded music business in Japan, with the worldwide recorded music business of Bertelsmann AG (“Bertelsmann”), forming a 50-50 joint venture, SONY BMG MUSIC ENTERTAINMENT (“SONY BMG”). In October 2008, Sony acquired Bertelsmann’s 50% equity interest in SONY BMG. As a result of the acquisition, SONY BMG became a wholly-owned subsidiary of Sony. In January 2009, SONY BMG changed its name to Sony Music Entertainment (“SME”).\n\nIn December 2005, Sony Communication Network Corporation, a subsidiary of Sony Group Corporation, was listed on the Mother’s market of the TSE, and was later listed on the First Section of the TSE in January 2008. It changed its name to So-net Entertainment Corporation in October 2006, and changed its name again to So-net Corporation (“So-net”) in July 2013. In January 2013, Sony Group Corporation acquired all of the common shares of So-net through a tender offer and subsequent share exchange and, as a result of the acquisition, So-net became a wholly-owned subsidiary of Sony Group Corporation. So-net was renamed Sony Network Communications Inc. (“SNC”) in July 2016.\n\nIn June 2012, an investor group including Sony Corporation of America (“SCA”) established DH Publishing, L.P. (“EMI”) to own and manage EMI Music Publishing, which it then acquired. This acquisition resulted in Nile Acquisition LLC (“Nile”), of which SCA owned 74.9% and the Estate of Michael Jackson (the “Estate”) owned 25.1%, acquiring approximately 40% of the equity interest in EMI. In July 2018, Sony completed the acquisition of the Estate’s equity interest in Nile, resulting in Sony owning approximately 40% of the equity interest in EMI. In November 2018, Sony completed the acquisition of the remaining approximately 60% equity interest in EMI, resulting in EMI becoming a wholly-owned subsidiary of Sony. In January 2021, Nile changed its name to Sony Music Publishing LLC (“SMP”). SMP encompasses both the former Sony/ATV and EMI.\n\nIn April 2013, Sony Olympus Medical Solutions Inc. (“SOMED”), a medical business venture between Sony Group Corporation and Olympus Corporation, was established in Japan. Sony’s stake in SOMED is 51%.\n\nIn July 2014, Sony Group Corporation sold its personal computer (“PC”) business operated under the VAIO brand to Japan Industrial Partners, Inc.\n\n \n\n- 18 -\n\n##### Table of Contents\n\nIn July 2014, pursuant to a separation of Sony’s businesses into distinct subsidiaries, the television business was split out and began operations as Sony Visual Products Inc.\n\nIn October 2015, the video and sound business was split out and began operations as Sony Video & Sound Products Inc. (“SVS”).\n\nIn April 2016, the imaging and sensing solutions business was split out and began operations as Sony Semiconductor Solutions Corporation (“SSS”).\n\nIn April 2017, the imaging products and solutions business was split out and began operations as Sony Imaging Products & Solutions Inc. (“SIPS”), which completed the sequential separation of Sony’s business units into distinct subsidiaries.\n\nIn September 2017, Sony transferred its battery businesses to the Murata Manufacturing Co., Ltd. Group.\n\nIn April 2019, Sony Visual Products Inc. and SVS merged to become Sony Home Entertainment & Sound Products Inc. (“SHES”).\n\nIn April 2020, Sony established Sony Electronics Corporation, an intermediate holding company encompassing the electronics products and solutions businesses.\n\nIn April 2021, in connection with the above-mentioned launch of Sony Group Corporation, Sony Electronics Corporation, SHES, SIPS and Sony Mobile Communications Inc. were merged into one company, which was renamed Sony Corporation. Additionally, certain support functions for the electronics products and solutions businesses and the imaging products and solutions business that had been carried out by Sony Group Corporation were transferred to Sony Corporation and SSS.\n\nIn April 2022, due to a restructuring of the segments of the TSE, Sony Group Corporation moved from the First Section to the Prime Market of the TSE.\n\nIn July 2022, Sony Interactive Entertainment LLC acquired Bungie, an independent videogame developer in the United States.\n\nIn September 2022, Sony Honda Mobility, a joint venture in the mobility field between Sony Group Corporation and Honda, was established in Japan. Sony’s stake in Sony Honda Mobility is 50%.\n\nSony Group Corporation’s registered office is located at 7-1, Konan 1-chome, Minato-ku, Tokyo 108-0075, Japan, telephone +81-3-6748-2111. Its website is https://www.sony.com/en/.\n\nThe agent in the U.S. for purposes of this Item 4 is Sony Corporation of America, 25 Madison Avenue, 26th Floor, New York, NY 10010-8601 (Attn: Office of the General Counsel).\n\nSony files reports and other information with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to the SEC’s rules and regulations that apply to foreign private issuers. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Sony’s electronic filings are available for viewing on this website, at https://www.sec.gov.\n\nPrincipal Capital Investments\n\nIn the fiscal years ended March 31, 2025 and 2026, Sony’s capital expenditures, consisting of additions to long-lived assets and right-of-use assets, were 829.8 billion yen (*) and 804.9 billion yen, respectively. For a breakdown of principal capital expenditures and divestitures (including interests in other companies), refer to “Item 5. Operating and Financial Review and Prospects.” The funding requirements of such various capital expenditures are expected to be financed by cash provided principally by operating and financing activities or the existing balance of cash and cash equivalents.\n\nIn the fiscal year ended March 31, 2026, Sony invested approximately 265.3 billion yen in the I&SS segment, representing additions to long-lived assets. This investment included approximately 246.7 billion yen to increase image sensor production capacity.\n\n \n\n*\n\nIn connection with the resolution for the plan regarding the execution of the Partial Spin-off of the Financial Services business, the Financial Services business was classified as a discontinued operation and has been excluded from the reporting segments. Consequently, Sony’s capital expenditures for the fiscal year ended March 31, 2025 have been re-presented into continuing operations to conform to this classification.\n\n \n\n- 19 -\n\n##### Table of Contents\n\nB.\n\nBusiness Overview\n\nThe G&NS segment includes the production and sales of digital software and add-on content, the network services businesses and the manufacture and sales of home gaming products. The Music segment includes the Recorded Music, Music Publishing and Visual Media & Platform businesses. The Pictures segment includes the Motion Pictures, Television Productions and Media Networks businesses. The ET&S segment includes the Imaging business, the Sound business, the Network Services business and the Displays business. The I&SS segment includes the image sensors business. All Other consists of various operating activities, including the disc manufacturing and recording media businesses. Sony’s products and services are generally unique to a single operating segment.\n\nProducts and Services\n\nGame & Network Services (G&NS)\n\nSony Interactive Entertainment LLC undertakes product research, development, design, marketing, sales, production, distribution and customer service for PlayStation® hardware, software, content and network services.\n\nThe G&NS segment includes the Digital Software and Add-on Content, Network Services and Hardware and Others categories. Digital Software and Add-on Content includes distribution of software titles and add-on content through the network by Sony Interactive Entertainment; Network Services includes network services relating to game, video and music content; and Hardware and Others includes home gaming consoles, packaged software, game software sold bundled with home gaming consoles, peripheral devices and first-party software for third-party platforms.\n\nMusic\n\nRecorded Music:\n\n“Recorded Music” includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances and merchandising. SME, a global entertainment company, excluding Japan, is engaged primarily in the development, production, marketing and distribution of recorded music in all commercial formats and genres. SMEJ is an entertainment company mainly focused on the Japanese market, which includes a Japanese domestic recorded music business that produces recorded music and music videos through contracts with many artists in all music genres.\n\nMusic Publishing:\n\n“Music Publishing” includes the management and licensing of the words and music of songs. SMP is a U.S.-based music publishing business that owns, administers and acquires rights to musical compositions, exploiting and marketing these compositions and receiving royalties or fees for their use.\n\nVisual Media & Platform:\n\n“Visual Media & Platform” includes the production and distribution of anime content and game applications, and various service offerings for music and visual products. These businesses are operated primarily by SMEJ.\n\nPictures\n\nMotion Pictures:\n\n“Motion Pictures” includes the worldwide production, acquisition and distribution of live-action and animated motion pictures. SPE’s motion picture production organizations include Columbia Pictures, Screen Gems, TriStar Pictures, 3000 Pictures, Sony Pictures Animation, Stage 6 Films, AFFIRM Films, Sony Pictures International Productions, and Sony Pictures Classics. SPE also operates Sony Pictures Imageworks, a visual effects and animation unit, and manages a studio facility, Sony Pictures Studios, which includes post-production facilities.\n\nTelevision Productions:\n\n“Television Productions” includes the worldwide production, acquisition and distribution of programming, including scripted series, unscripted “reality” or “light entertainment,” daytime serials, game shows, animated series, made for television movies and miniseries and other programming.\n\n \n\n- 20 -\n\n##### Table of Contents\n\nMedia Networks:\n\n“Media Networks” includes the operation of television networks and direct-to-consumer (“DTC”) streaming services worldwide. SPE’s television networks around the world include Sony Pictures Networks India, which operates television networks in India, and Game Show Network, LLC, which operates a U.S.-based network delivered on cable, satellite and other distribution platforms. Digital networks include Crunchyroll, a streaming service based in North America primarily focused on anime content, and SonyLIV, a general entertainment streaming service in India.\n\nEntertainment, Technology & Services (ET&S)\n\nThe ET&S segment includes the Imaging, Sound, Network Services, Displays and Other categories. Imaging includes image and video content creation products and solutions, including interchangeable lens cameras and interchangeable lenses; Sound includes headphones and wireless speakers; Network Services includes internet-related services; Displays includes display products such as LCD and OLED televisions, as well as projectors; Other includes smartphones, home audio products and medical equipment, as well as sports officiating support and content production support services.\n\nImaging & Sensing Solutions (I&SS)\n\nSSS and its subsidiary Sony Semiconductor Manufacturing Corporation undertake product research, development, design, manufacturing, marketing, sales, production, distribution and customer services primarily for complementary metal oxide semiconductor (“CMOS”) image sensors, in addition to display devices, lasers, large-scale integration systems (LSIs) and other semiconductors. These CMOS image sensors are used in a wide variety of applications, primarily smartphones, as well as other products such as digital cameras and security cameras, factory automation systems and automobiles.\n\nAll Other\n\nAll Other consists of various operating activities, including the disc manufacturing business outside of Japan, and the recording media and storage media businesses.\n\nSales and Distribution\n\nG&NS, ET&S and I&SS\n\nIn the G&NS segment, PlayStation® hardware and peripheral devices, software and content and online services are marketed and distributed by Sony Interactive Entertainment LLC, Sony Interactive Entertainment Inc. and Sony Interactive Entertainment Europe Ltd. Digital software, including add-on content, is primarily sold via the PlayStation™Store, while software for third-party platforms is sold via third-party distributors. Hardware and physical software are sold both indirectly via third-party distributors as well as directly via Sony Interactive Entertainment’s proprietary DTC website.\n\nSony’s products and services in the ET&S and I&SS segments are primarily marketed throughout the world under the trademark “Sony.”\n\nIn most cases, Sony’s products in the ET&S and I&SS segments are sold to sales subsidiaries of Sony Group Corporation located in or responsible for sales in various countries and territories. These subsidiaries then sell those products to unaffiliated local distributors and dealers or through direct sales, such as through the internet. Sony Corporation brings its mobile products to market through direct and indirect channels, such as third-party cellular network carriers and retailers, as well as through its own website. In some regions, certain products and services are sold directly to local distributors by Sony Group Corporation.\n\nSales of such products and services are particularly seasonal and vary significantly with the timing of new product introductions and the economic conditions of each country. Sales for the third quarter ending December 31 of each fiscal year are generally higher than other quarters of the same fiscal year mainly in the G&NS and ET&S segments due to demand during the year-end holiday season.\n\nJapan:\n\nSony Marketing Inc. markets consumer electronics products mainly through retailers. It also markets professional electronics products and services. For electronic components, Sony sells products directly to wholesalers and manufacturers.\n\n \n\n- 21 -\n\n##### Table of Contents\n\nUnited States:\n\nSony markets its electronics products and services in these segments through Sony Electronics Inc. and other wholly-owned subsidiaries in the U.S.\n\nEurope:\n\nIn Europe, Sony’s products and services in these segments are marketed through sales subsidiaries including Sony Europe B.V., which is headquartered in the United Kingdom and has branches in European countries.\n\nChina:\n\nSony markets products and services in these segments through Sony (China) Limited, Sony Corporation of Hong Kong Limited and other wholly-owned subsidiaries in China.\n\nAsia-Pacific:\n\nIn Asia-Pacific, Sony’s products and services in these segments are marketed through sales subsidiaries including Sony India Private Limited, Sony Electronics of Korea Corporation, Sony Taiwan Limited and Sony Electronics Vietnam.\n\nOther Areas:\n\nIn overseas areas other than the U.S., Europe, China and Asia-Pacific, Sony’s products and services in these segments are marketed through sales subsidiaries including Sony Brasil Ltda., Sony Middle East & Africa FZE in the United Arab Emirates and Sony de Mexico S.A.de C.V.\n\nMusic\n\nSME and SMEJ develop, produce, market, and distribute recorded music in various commercial formats. SME and its affiliates conduct business globally under “Columbia Records,” “Epic Records,” “RCA Records” and other labels, in addition to “The Orchard” and “AWAL,” independent label distribution and indie artist services. SMEJ conducts business in Japan under “Sony Music Records,” “Epic Records Japan,” “SME Records,” “Ki/oon Music,” “Sony Music Associated Records” and other labels. In addition, SME produces, markets and distributes products related to its artists mainly through the merchandising company Ceremony of Roses.\n\nSony owns and acquires rights to musical compositions, exploits and markets these compositions, receives royalties or fees for their use and conducts its music publishing business in countries other than Japan under the Sony Music Publishing name.\n\nSMEJ creates artwork and produces packaged home entertainment products including music and games. It also organizes various events in Japan through Sony Music Solutions Inc. and its affiliates. In addition, SMEJ produces, markets and distributes anime content and game applications based on anime titles through Aniplex Inc. (“Aniplex”).\n\nPictures\n\nSPE generally retains all rights relating to the worldwide distribution of its internally produced motion pictures and television programming, including rights for theatrical exhibition, home entertainment distribution, pay and free television and digital exhibition and other markets. SPE also acquires distribution rights to motion pictures and television programming produced by other companies, and jointly produces and distributes motion pictures and television programming with other studios, television networks and production companies. These rights may be limited to particular geographic regions, specific forms of media or periods of time.\n\nWithin the U.S., SPE uses its own distribution service businesses, Sony Pictures Releasing and Sony Pictures Classics, for the U.S. theatrical release of its motion pictures and for the theatrical release of motion pictures acquired from and produced by others.\n\nOutside the U.S., SPE generally distributes and markets motion pictures through one of its Sony Pictures Releasing International subsidiaries or affiliates. In certain countries, however, SPE has joint distribution or sub-distribution arrangements with other studios, or arrangements with independent local distributors or other entities.\n\n \n\n- 22 -\n\n##### Table of Contents\n\nThe worldwide home entertainment and television distribution of SPE’s motion pictures and television programming (and product acquired or licensed from others) is handled through SPE’s Sony Pictures Home Entertainment/Television Distribution group. For home entertainment, product is distributed in various home media formats including Digital Distribution. Digital Distribution includes electronic sell-through and video-on-demand distributed on digital platforms, cable networks and direct broadcast satellite (“DBS”) providers. For television, SPE’s library of motion pictures and television programming is licensed to distributors such as broadcast television networks, digital platforms, cable networks and DBS providers. Digital platforms include subscription and advertising supported platforms (including Sony’s PlayStation, Netflix and Amazon Prime Video).\n\nSPE’s television networks and streaming services (including Crunchyroll, primarily in North America, Europe and Latin America, and SonyLIV in India) are distributed through digital platforms, cable, DBS providers and telecommunications companies to viewers around the world. These networks and services generate advertising, subscription and other ancillary revenues.\n\nAll Other\n\nSony DADC group offers Ultra HD Blu-ray™, Blu-ray Disc™, DVD and CD media replication services as well as digital and physical supply chain solutions to business customers. Sony Storage Media Corporation sells its storage media products through its own sales forces, as well as through Sony’s sales companies mentioned in the above description of Sales and Distribution for the G&NS, ET&S and I&SS segments.\n\nSales to External Customers by Geographic Area\n\nThe following table shows Sony’s consolidated sales to external customers in each of its major markets for the periods indicated.\n\n \n\n \n  \nFiscal year ended March 31\n \n\n \n  \n2024\n \n  \n2025\n \n  \n2026\n \n\n \n  \n(Yen in millions)\n \n\nJapan\n\n  \n \n1,266,795\n \n  \n \n1,322,209\n \n  \n \n1,333,202\n \n\nUnited States\n\n  \n \n3,751,239\n \n  \n \n4,127,795\n \n  \n \n4,064,440\n \n\nEurope\n\n  \n \n2,632,963\n \n  \n \n2,630,934\n \n  \n \n2,826,805\n \n\nChina\n\n  \n \n1,000,907\n \n  \n \n1,244,115\n \n  \n \n1,428,677\n \n\nAsia-Pacific\n\n  \n \n1,659,776\n \n  \n \n1,640,582\n \n  \n \n1,694,889\n \n\nOther Areas\n\n  \n \n948,357\n \n  \n \n1,069,282\n \n  \n \n1,131,607\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n \n11,260,037\n \n  \n \n12,034,917\n \n  \n \n12,479,620\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSources of Supply\n\nSony procures parts, components and raw materials used in the production of its products on a global basis on the most favorable terms that it can achieve. These items are purchased from various suppliers around the world. Sony has a general policy of maintaining multiple suppliers for important parts and components.\n\nWhen parts, components and raw materials become scarce, it not only causes production costs to rise but also may affect production. For example, semiconductors, LCD panels and other components, which are used in multiple applications, can influence Sony’s performance when the availability of such parts and components is significantly limited. Additionally, rising energy costs and market prices, and trade-related costs may cause prices of parts, components and raw materials to increase, which may adversely affect Sony’s financial results. Regarding raw materials, the market price of resin, sheet steel and copper, which are widely used in mechanical parts, electronic parts and components, may also fluctuate because of market factors such as the balance of supply and demand, and such fluctuations may impact the cost of those parts and components.\n\nAfter-Sales Service\n\nSony provides repair and servicing functions in the areas where its G&NS, ET&S and I&SS products are sold. Sony provides these services through its own online support network, call centers, service centers, factories, authorized independent service centers, authorized servicing dealers and subsidiaries.\n\n \n\n- 23 -\n\n##### Table of Contents\n\nIn line with industry practices of these businesses, almost all of Sony’s consumer-use products that are sold in Japan carry a warranty, generally for a period of one year from the date of purchase, covering repairs, free of charge, in the case of a malfunction in the course of ordinary use of the product. Warranties outside of Japan generally provide coverage for various periods of time depending on the product and the area in which it is marketed. In the case of broadcast- and professional-use products, Sony maintains support contracts with customers in addition to warranties.\n\nTo further help ensure customer satisfaction, Sony maintains customer information centers in its principal markets and web support information for all markets.\n\nPatents and Licenses\n\nSony has a number of Japanese and foreign patents relating to its products and services. Sony is licensed to use a number of patents owned by others, covering a wide range of products and services. Certain of these licenses are important to Sony’s business. Sony’s products that employ Blu-ray Disc™ player functionality, including PlayStation®4 and PlayStation®5 (“PS5™”) hardware, are substantially dependent upon patents that relate to technologies specified in the Blu-ray Disc™ specifications and are licensed by Via Licensing Alliance LLC. Sony considers its overall license position beneficial to its operations.\n\nCompetition\n\nIn each of its principal product lines and services, Sony encounters intense competition throughout the world. Sony believes, however, that in the aggregate it competes successfully and has a major position in all of the principal product lines and services in which it is engaged, although the strength of its position varies with products and markets. Refer to “Risk Factors” in “Item 3. Key Information.”\n\nG&NS, ET&S, I&SS and All Other\n\nSony believes that its product planning and product design expertise, the high quality of its products, its record of innovative product introductions and product improvements, the user experience it provides and the ecosystem that supports such an experience, its price competitiveness derived from reductions in manufacturing and indirect costs, and its extensive marketing and servicing efforts are important factors in maintaining its competitive position. Continuing to provide high-value added products, services and experiences is a key factor by which Sony aims to differentiate itself in these highly competitive markets. Sony believes that the success of the G&NS businesses is determined by the availability of attractive software titles and related content, downloadable content, network services and peripherals. In the I&SS segment, Sony puts significant effort into keeping Sony’s strong competitive position by investing in R&D and production capacity, while also trying to avoid overinvesting and increasing fixed costs by carefully monitoring customer demand, market trends and demand for end-user products.\n\nMusic\n\nSuccess in the music industry is dependent to a large extent upon the artistic and creative abilities of artists, producers and employees and is subject to the vagaries of public taste. The Music segment’s future competitive position depends on its continuing ability to attract and develop artists and products that can achieve a high degree of public acceptance as well as offer value-added services to its artists and customers. In addition, Sony believes that the success of the Music segment’s anime content and game applications business, Aniplex, is largely dependent on the creative talent of producers and developers, and is also subject to the vagaries of public taste.\n\nPictures\n\nSPE faces intense competition from all forms of entertainment and other leisure activities to attract the attention of audiences worldwide. SPE competes with other motion picture studios and production companies to obtain story rights and talent, including writers, actors, directors and producers, which are essential to the success of SPE’s products. SPE competes with other companies, in particular technology companies, who are expanding into the production or distribution of film and television programing. In motion picture production and distribution, SPE faces competition to obtain exhibition and distribution outlets and optimal release dates for its products. In addition, SPE faces competition to acquire motion pictures and television programming from third parties. In television production and distribution, competition arises from the increasing fragmentation of\n\n \n\n- 24 -\n\n##### Table of Contents\n\naudiences among broadcast and cable networks, digital platforms, DBS providers and other outlets both within and outside of the U.S. Furthermore, broadcast networks in the U.S., or their affiliated production companies, continue to produce their own shows internally, and major streaming services in and outside the United States are producing more content themselves or acquiring content from affiliated production companies. This competitive environment may result in fewer opportunities to produce shows for such networks and services, and may contribute to shorter lifespans for ordered shows that do not immediately achieve favorable ratings. SPE’s worldwide television networks compete for viewers with broadcast and cable networks, DBS providers, digital platforms and other forms of entertainment. The number of networks around the world continues to drive competition for advertising and subscription revenues, acquisition of programming, and distribution of SPE’s television networks by cable, DBS providers, digital platforms and other distribution systems.\n\nGovernment Regulations\n\nSony’s business activities are subject to various governmental regulations in different countries in which it operates, including regulations relating to: various business/investment approvals; trade affairs, including customs, import and export control; competition and antitrust; anti-bribery; advertising and promotion; intellectual property; broadcasting, consumer and business taxation; foreign exchange controls; economic sanctions; personal information protection; product safety; labor; human rights; conflict; occupational health and safety; environmental; and recycling requirements.\n\nIn particular, Sony’s telecommunication businesses in Japan are subject to approvals and oversight from the Ministry of Internal Affairs and Communications, under the Telecommunications Business Act and other regulations related to the internet businesses and communication methods in Japan.\n\nSustainability Related Regulations Such as Environmental and Human Rights Regulations\n\nSony monitors, evaluates, and complies with laws and regulations that may affect its global operations and purchasing activities with respect to sustainability, such as environmental, human rights, labor, and occupational health and safety issues. For example, Sony has taken steps to address upcoming regulations or governmental policies related to (i) climate change including carbon disclosure, greenhouse gas (“GHG”) emission reduction, carbon taxes and product energy efficiency; (ii) reporting on material sustainability matters relevant to Sony’s business activities; and (iii) mandatory human rights and environmental due diligence throughout Sony’s value chain.\n\nAlso refer to “Risk Factors” in “Item 3. Key Information.”\n\n \n\n- 25 -\n\n##### Table of Contents\n\nDisclosure pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012\n\nSection 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the Securities Exchange Act of 1934 (the “Exchange Act”), as amended. Section 13(r) requires an issuer to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with designated natural persons or entities sanctioned under programs relating to terrorism or the proliferation of weapons of mass destruction. Disclosure is required even where the activities, transactions or dealings are conducted outside the U.S. by non-U.S. affiliates in compliance with applicable law, and whether or not the activities are sanctionable under U.S. law.\n\nSony is aware that certain transactions during the fiscal year ended March 31, 2026, as described below, may be disclosable pursuant to Section 13(r) of the Exchange Act.\n\n \n\n \n•\n \n\nSony’s representative office in Tehran, Iran, which was established in 1992, has been closed and has been under liquidation processes since before the beginning of the fiscal year ended March 31, 2014. In the course of liquidation, Sony engages in certain incidental transactions (for example, permits, taxes, and similar matters incidental to the wind-down of the office in Iran) with Iranian government-owned entities. No material revenues or profits are associated with these transactions with the Iranian government-owned entities.\n\nSony is not aware of any other activity, transaction or dealing by Sony Group Corporation or any of its affiliates during the fiscal year ended March 31, 2026 that is disclosable in this report under Section 13(r) of the Exchange Act. As of the date of this report, Sony does not anticipate that any activity, transaction or dealing that may be disclosable will be conducted during the fiscal year ending March 31, 2027, except as described above in connection with the wind-down of its representative office in Iran. Nevertheless, Sony continues to monitor developments in this area as sanctions against Iran continue to evolve, and assess whether and to what extent such sanctions may affect Sony’s business activities, which Sony intends to conduct in accordance with applicable laws and regulations.\n\nSony believes, and maintains policies and procedures designed to ensure that, its transactions with Iran and elsewhere have been conducted in accordance with applicable economic sanctions laws and regulations and do not involve transactions likely to result in the imposition of sanctions or other penalties on Sony. However, there can be no assurance that Sony’s policies and procedures will be effective, and if the relevant authorities were to impose penalties or sanctions against Sony, the impact of such sanctions could be material.\n\n \n\n- 26 -\n\n##### Table of Contents\n\nSustainability Disclosure\n\nSony’s Basic Policy for Sustainability Initiatives\n\nSony Group Corporation has established the following basic policy on sustainability with the approval of the Board of Directors:\n\nSony manages diverse businesses with people at the core, and aims for sustainable value creation based on such diversity and mid- to long-term growth in the Sony Group’s corporate value under its Purpose to “fill the world with emotion, through the power of creativity and technology,” and its Corporate Direction of “getting closer to people.” In order to have people connected to each other through emotion, it is necessary to create a society in which everyone can live with peace of mind in a healthy global environment. Sony acts with due consideration of the impact of its business activities on stakeholders, including shareholders, customers, employees, suppliers, business partners, local communities and other organizations as well as the global environment, and focuses on building trust with stakeholders through dialogue. Through innovation and sound business practice, Sony endeavors to enhance its corporate value and contribute to the development of a sustainable society.\n\n(1) Organizational Structure for Sustainability Initiatives and Efforts\n\n<Organizational structure>\n\nSony Group Corporation has established the Sustainability Department under the supervision of the Senior Executive in charge of Sustainability. The Sustainability Department promotes various sustainability-related initiatives throughout the Sony Group in cooperation with each business unit and operating company (“Business Unit(s)”) and other corporate divisions, including Compliance, Human Resources, Corporate Planning & Control, Finance and Legal (“Relevant Divisions”).\n\nThe Senior Executive in charge of Sustainability regularly reviews and assesses risks and engages in detection, communication, evaluation and response for the risk of loss related to sustainability. The Sustainability Department reports to the Board of Directors at least once a quarter on sustainability initiatives and their progress. In addition, as part of reporting on each Business Unit’s mid-range plan, the Board of Directors receives reports from each Business Unit on the sustainability challenges and opportunities relevant to their respective business operations and their efforts in those areas.\n\nAlso refer to “Risk Factors” in “Item 3. Key Information” for the risks related to sustainability.\n\n<Sony’s sustainability efforts>\n\nThe Sustainability Department, operating under the above structure and the aforementioned “Sony’s Basic Policy for Sustainability Initiatives,” embraces “Inspire a world filled with emotion for this generation and beyond” as Sony’s Sustainability Vision and strives to spread this policy across Sony’s business operations. Through dialogue with stakeholders and analysis of material sustainability topics for the Sony Group (“Material Topics”), the Sustainability Department identifies sustainability issues that need to be addressed by the Group as a whole. Additionally, the Sustainability Department promotes the group-wide sustainability initiatives by formulating relevant Group policies on identified sustainability issues, including a long-term environmental plan, “Road to Zero,” and communicating across the Sony Group by collaborating with the Senior Executives in charge of Sony’s headquarters functions and the Relevant Divisions.\n\nThe Business Units consider sustainability issues and opportunities for their respective businesses, and implement sustainability-related initiatives that align with their respective business characteristics. In addition, the Business Units, consulting with the Sustainability Department, have introduced key performance indicators (“Sustainability KPIs”), which measure the Business Units’ sustainability efforts. The Sustainability KPIs are incorporated into the Business Units’ performance evaluations, and the Sustainability Department evaluates the status of achievement of such Sustainability KPIs. Additionally, achievement of the Group Sustainability Evaluation is incorporated into one of the indicators for Senior Executives’ remuneration linked to business results. The Group Sustainability Evaluation is an evaluation of efforts by Senior Executives to enhance the mid- to long-term corporate value and sustainable growth of the Sony Group as a whole, not limited to their respective businesses and organizations, including management succession and investment in human capital, sustainability initiatives related to social value creation and ESG (Environment, Social, Governance), value creation through collaborations among the businesses of the Sony Group, and engagement indicators based on employee surveys.\n\nIn the fiscal year ended March 31, 2026, Sony hosted the Sustainability Small Meeting for its investors in order to foster a deeper dialogue with stakeholders regarding sustainability. In addition, a global sustainability\n\n \n\n- 27 -\n\n##### Table of Contents\n\nconference was held, where the Senior Executive in charge of Sustainability, the Senior Executive in charge of Human Resources, and personnel in charge of sustainability from the Business Units came together to confirm and share sustainability initiatives for the Business Units and their progress on the Sustainability KPIs.\n\nFor the fiscal year ended March 31, 2026, the Sustainability KPIs included enhancing online safety, reducing the power consumption of Sony’s products, promoting resource conservation in products and packaging and implementing environmental awareness-raising activities using the Group’s content IP.\n\n< Material Topics analysis as a prerequisite for the above efforts>\n\nIn order to ensure that Sony’s sustainability initiatives can address changes in the social environment and the expectations of stakeholders from a mid- to long-term perspective, the Sustainability Department, under the supervision of the Senior Executive in charge of Sustainability, analyzes and identifies Material Topics and periodically reviews their importance, and conducted a review of the Material Topics in the fiscal year ended March 31, 2026. Sony defines Material Topics as “important topics related to sustainability that reflect both the influence Sony has on society and the environment, and the influence society and the environment have on Sony, determined with mid- to long-term social change and diverse stakeholder needs in mind.” The Sustainability Department evaluated sustainability issues which are highly relevant to Sony from the perspectives of their importance. Based on such evaluation and following the review by the Senior Executives of Sony Group Corporation, Sony identified the Material Topics upon the CEO’s approval. In addition, the identified Material Topics have been reported to the Board of Directors.\n\n(2) Sustainability Strategies\n\nAs a result of the Material Topics analysis conducted in the fiscal year ended March 31, 2026, Sony has identified “Diversity,” “Respect for Human Rights” and “Climate Change” as Material Topics.\n\n<Background for identifying Material Topics>\n\n \n\n \n•\n \n\nDiversity: Diversity has been a core value for Sony since its founding and serves as a source of innovation. The interaction among employees with diverse backgrounds has led to the creation of new businesses, and the diversification of business operations has expanded opportunities for employees, enabling both the company and its employees to grow together. Sony believes that, in order to achieve sustainable value creation, it is essential to further advance diversity in both attributes and experiences and to foster leadership and a corporate culture that embrace diverse perspectives. In addition, expectations for corporate initiatives addressing social issues related to diversity are increasing and Sony aims to further promote efforts across the Group to address both internal and external challenges.\n\n \n\n \n•\n \n\nRespect for Human Rights: Sony is aware of the potential human rights impacts of its global business activities. Sony recognizes that respecting human rights throughout Sony’s value chain and addressing any potential human rights risks, whether the relationship with Sony’s business operation is direct or indirect, are responsibilities that a diverse range of stakeholders expect of Sony. Considering recent changes in the external environment related to respect for human rights, Sony believes that it is important to further strengthen its efforts in this area.\n\n \n\n \n•\n \n\nClimate Change: Sony acknowledges that climate change impacts are becoming more apparent and that the transition towards a decarbonized society is a crucial issue for all companies, and that Sony’s stakeholders have elevated expectations of Sony’s environmental initiatives along two axes: the first being Sony’s “responsibility,” for instance, to reduce its environmental impact, and the second being the “contribution” Sony can make by leveraging its diverse businesses and technologies. Sony’s corporate activities are only possible if the earth, which sustains all life, is healthy. Sony believes that it is important to respond to the environment, including by taking measures against climate change.\n\n<Strategy, targets and major initiatives for Material Topics>\n\n \n\n \n•\n \n\nDiversity\n\nRefer to “(3) Human Capital Strategies, Metrics and Targets” for diversity strategies.\n\n \n\n \n•\n \n\nRespect for Human Rights\n\nThrough its “Sony Group Human Rights Policy,” Sony is committed to respecting the internationally recognized human rights of individuals potentially affected by its business activities throughout its value chain.\n\n \n\n- 28 -\n\n##### Table of Contents\n\nSony also strives to avoid causing or contributing to adverse human rights impacts that may arise from its operations, products, services and/or business relationships, and is dedicated to taking reasonably necessary actions to help remediate any impacts that may occur.\n\nSony has established and implemented Group policies for specific areas, such as its “Sony Supply Chain Code of Conduct” which sets forth the code of conduct for Sony’s own manufacturing sites and suppliers of electronics products, with the aim to work towards a responsible supply chain, and its “Sony Group AI Ethics Guidelines,” which guide all Sony officers and employees to utilize AI and/or conduct AI-related R&D in a manner that conforms with Sony’s values and emerging social norms.\n\nSony conducts human rights due diligence in line with the frameworks set out in the United Nations Guiding Principles on Business and Human Rights (UNGP) issued by the United Nations Human Rights Council and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. As part of these efforts, Sony conducts human rights risk impact assessments, through which it identifies potential human rights risks by considering the characteristics of each business operation and the value chains important to each Business Unit. Based on the results of the assessments, Sony identifies priority areas for enhancing initiatives throughout the Sony Group. For issues where significant adverse human rights impacts are identified or are of concern in these priority areas, Sony promotes initiatives to prevent or mitigate those impacts for each of these areas. In addition, each Business Unit conducts a human rights risk impact assessment to review the specific human rights risks inherent to each Business Unit and the current status of initiatives addressing these risks. This assessment aims to evaluate the need for improvements or new measures and to reassess the human rights issues that should be prioritized.\n\nFurthermore, Sony has established multiple hotlines for employees and relevant stakeholders to report and seek advice concerning any potential violation of laws, regulations, the “Sony Group Code of Conduct,” the “Sony Supply Chain Code of Conduct” or other internal rules. These hotlines equip Sony to respond quickly and appropriately, while giving full consideration to personal privacy. Sony strictly maintains confidentiality and ensures that reporters are not subject to reprisal for reporting or using these services.\n\nIn advancing these initiatives, Sony maintains dialogue with stakeholders, including industry associations, investors and NGOs. This dialogue helps Sony to understand stakeholders’ expectations of the companies and enhance its human rights initiatives.\n\nIn the fiscal year ended March 31, 2026, in addition to promoting efforts under priority areas identified in 2020 (Responsible supply chains, Respect for diversity and Responsible development and use of technologies), as a subordinate set of rules under the “Sony Group Human Rights Policy,” Sony formulated the “Sony Group Human Rights Due Diligence Implementation Rules,” which define, among other things, the roles and responsibilities of the Sustainability Department, Relevant Divisions and each Business Unit, as well as specific operational procedures for the continued implementation of human rights due diligence. Based on these rules, Sony established organizational structures for human rights due diligence within each Business Unit. In addition, with the cooperation of external experts, Sony refined analyses of key value chains and relevant stakeholders for each Business Unit and reviewed the human rights issues relevant to each business operation. Based on the results of these efforts, Sony updated the Group’s existing priority areas and identified three new priority areas: “Ensuring the Rights and Safety of People Who Use Sony’s Products, Content, and Services,” “Fostering Ways of Working Centered on the Well-being of People Who Contribute to Sony’s Creativity, both Mentally and Physically” and “Upholding Fair Working Conditions for People in Sony’s Supply Chain.” Sony will continue its efforts under these newly identified priority areas.\n\n \n\n \n•\n \n\nClimate Change\n\nUnder the “Road to Zero,” a long-term environmental plan established in 2010 that aims to achieve a zero environmental footprint for the entire Sony Group by the year 2050, Sony is promoting environmental impact reduction activities in each of the following four perspectives: climate change, resources, chemical substances, and biodiversity. In May 2022, Sony announced that it had determined to accelerate its environmental impact reduction activities in the climate change area and to push its goal of achieving a net-zero footprint throughout the entire value chain, including Scope 1, 2 and 3, moving the target year from 2050 to 2040. Sony’s net-zero (*1) target for 2040 was approved as the net-zero target for the Science Based Targets initiative (“SBTi”) (*2) in August 2022. In April 2025, Sony Group Corporation established “Green Management 2030,” the Group’s new mid-term environmental targets (*3) effective from the fiscal year ending March 31, 2027 through the fiscal year ending March 31, 2031.\n\n \n\n*1\n\nSony’s net-zero target follows the SBTi Corporate Net-zero Standard below:\n\n \n(a)\n\nreducing Scope 1, 2 and 3 GHG emissions to zero or a residual level consistent with reaching GHG net-zero emissions at the global or sector level in eligible 1.5°C scenarios or sector pathways; and\n\n \n\n- 29 -\n\n##### Table of Contents\n\n \n(b)\n\nneutralizing any residual emissions at the net-zero target date – and any GHG emissions released into the atmosphere thereafter.\n\n*2\n\nScience Based Targets initiative (SBTi) is a global initiative that encourages companies to set science-based targets to reduce their GHG emissions toward the goal of limiting the increase in global average temperature due to climate change to 1.5°C above pre-industrial levels.\n\n*3\n\nSony is working toward achieving its long-term environmental plan, the “Road to Zero,” by setting mid-term (five-year) environmental targets.\n\nSony’s interim goals for the above 2040 net-zero target under “Green Management 2030” are as follows:\n\n \n\n1.\n\nBy the fiscal year ending March 31, 2031, Sony aims to reduce direct and indirect GHG emissions (Scopes 1 and 2) from its own business operations by 60% compared to the fiscal year ended March 31, 2026 and to remove an amount of carbon equivalent to the remaining residual emissions. For other emissions originating from stages such as products, supply chains, and logistics (Scope 3), Sony aims to reduce GHG emissions by 25% compared to the fiscal year ended March 31, 2026, by the fiscal year ending March 31, 2031. By 2040, Sony aims to achieve net-zero emissions in all Scopes.\n\n \n\n2.\n\nBy the fiscal year ending March 31, 2031, Sony aims to achieve 100% renewable electricity used at its own business sites.\n\nTo achieve the targets described in 1 and 2 above, Sony intends to implement the following measures.\n\n \n\n \n•\n \n\nContinuous reduction of environmental impact at Sony Group’s own business sites: Acceleration of energy saving, installation of solar power generation equipment, and introduction of renewable energy throughout the Sony Group. Virtual PPA (Power Purchase Agreement) using the FIP (Feed-in-Premium) system in Japan.\n\n \n•\n \n\nPromotion of energy-efficient products: Acceleration of initiatives to reduce annual power consumption of Sony’s products.\n\n \n•\n \n\nStrengthening engagement with partners: Encouragement of business partners engaged in parts, materials and finished product manufacturing to manage their GHG emissions, save energy, and convert to renewable energy.\n\n \n•\n \n\nContribution to carbon removal/fixation (*4): Exploration of investments in start-ups engaged in carbon removal, and development of an index integrating biodiversity enhancement and carbon fixation associated with augmented ecosystem businesses, such as Synecoculture™ (*5) being rolled out by SynecO, Inc.\n\n \n\n*4\n\nProcess by which carbon from the atmosphere is converted into organic compounds.\n\n*5\n\nSynecoculture is a trademark of Sony Group Corporation.\n\n(3) Human Capital Strategies, Metrics and Targets\n\nBasic Policy on Human Capital Strategy\n\nTo realize Sony’s long-term vision, the “Creative Entertainment Vision,” which is positioned as the core of its current Group management policy, the diversity of its businesses and its people is considered to be of utmost importance. From an environment in which employees with different backgrounds contribute diverse perspectives and ideas, synergies and new businesses are created and, as its businesses diversify, opportunities for employees to play active roles further expand, thereby forming a unique source of Sony’s competitiveness.\n\nIn addition to the diversity of its businesses and people, another aspect that Sony has valued since its founding is the spirit of challenge of each individual employee, which is represented by the aspiration of “wanting to pursue what one truly wishes to achieve,” as well as cultivating a free and open culture that nurtures and supports such a spirit, as reflected in its founding prospectus.\n\nSony was established with its origins in the electronics business and began its semiconductor business through the development of Japan’s first transistor. Thereafter, while entering new business areas through various methods, including joint ventures with foreign companies in music and financial services, acquisitions of foreign companies in motion pictures and joint investments within the Group in the game business, both employees and the company have grown together as employees have taken on new challenges within an increasingly diversified business environment.\n\nIn recent years, as the focus of Sony’s management shifts toward entertainment, there have been changes in the business environment, including increased demand for experience and expertise related to the entertainment\n\n \n\n- 30 -\n\n##### Table of Contents\n\nbusinesses, such as gaming, pictures, music and anime, the expansion and fragmentation of organizations, and an increase in employees with experience outside Sony. Under these circumstances, how to maintain and further evolve an environment in which diverse talent, regardless of business, can leverage their respective expertise and strengths and take on challenges with a cross-functional perspective has become an important issue.\n\nBased on the current management policy and recognition of these issues, Sony has positioned the evolution of the diversity of its people and the maintenance and enhancement of an organizational culture that supports the challenges of individuals as the basic policy of its human capital strategy. In order to further evolve the diversity of its people, which is a core source of Sony’s competitiveness, and to achieve the enhancement of corporate value even under a highly uncertain management environment, Sony regards the spirit of challenge of its employees as a driving force for further growth and promotes, as its most important initiative in human capital strategy, the development of talent and organizations that take on the creation of value beyond existing frameworks.\n\nDesired State of “People” and “Organization”\n\n[People] Individuals who drive transformation\n\nSony aims to continuously develop individuals who possess the following mindset and capabilities:\n\n \n\n \n•\n \n\nAspiration: having an intrinsic motivation of “wanting to achieve this,” and a strong determination to see it through to completion\n\n \n\n \n•\n \n\nAction orientation: a stance of stepping into uncertain areas and not being reluctant to engage with others who hold differing views\n\n \n\n \n•\n \n\nResilience: the ability to treat difficulties and failures as learning opportunities and to adapt them into further growth\n\n[Organization] An environment that accelerates the cycle of challenge\n\nSony aims to work on the development of a workplace environment that places emphasis on the following elements and supports the challenges of diverse individuals:\n\n \n\n \n•\n \n\nCross-boundary experiences: the provision of opportunities for experiences that transcend expertise, organizations and national borders, including stretch assignments\n\n \n\n \n•\n \n\nRespect for diverse perspectives: placing importance on processes in which diverse perspectives intersect, while avoiding uniformity\n\n \n\n \n•\n \n\nPsychological safety: fostering a culture that welcomes the attitude of taking on challenges without fear of failure and encourages autonomous trial and error\n\nStructure of Human Capital Strategy: Elements Supporting the Cycle of Challenge\n\nIn order to realize the desired state of people and organization, Sony has organized the following elements as the core of its human capital strategy.\n\nDiversity of People as the Foundation of Diversity\n\nThe presence of individuals with diverse backgrounds creates a state in which a wide range of perspectives and knowledge coexist within the organization. Sony positions the diversity of the attributes of its people as the foundation that supports the expansion of challenge and is working to secure and further evolve such diversity. Sony’s management team is composed of members who possess diverse attributes, experiences, and expertise, and who assume the responsibility of overseeing the Group as a whole with a holistic perspective.\n\nAs part of its commitment to further enhance diversity, Sony aims to achieve or maintain, by the fiscal year ending March 31, 2031, a percentage of 30% or more both for women and for persons of non-Japanese origin*1 among its executives*2 at Sony Group Corporation in Japan. As of March 31, 2026, these figures stood at 23.3%*3 and 36.7%*3, respectively (a 4.5 percentage point*3 and 8.6 percentage point*3 increase, respectively, compared to the previous fiscal year).\n\nWith respect to the diversity of employees, approximately half of Sony Group employees are engaged in business operations outside Japan and more than 90% of such employees are locally hired. In addition, as one of the elements that constitute employee diversity, Sony is promoting the advancement of women on a global basis,\n\n \n\n- 31 -\n\n##### Table of Contents\n\nand as March 31, 2026, the ratio of women among all Sony Group employees was 34.4%*3 (the same as in the previous fiscal year*3), and the percentage of women in management positions was 33.0%*3 (a 0.7 percentage point*3 increase compared to the previous fiscal year). On the other hand, in Japan, taking into account the current situation in which the percentage of women in management positions remains lower than that of overseas subsidiaries, Sony has established numerical targets at major subsidiaries in Japan and is strengthening initiatives toward achieving such targets. Sony considers the characteristics of each business segment and the composition of its workforce, and implements measures aligned with the actual conditions of each workplace, thereby promoting gender diversity at the management level.\n\n \n\n*1\n\nIndividuals of non-Japanese nationality or who were born outside Japan.\n\n \n\n*2\n\nDirectors, Senior Executives including Corporate Executive Officers, and other officers.\n\n \n\n*3\n\nIn connection with the execution of the Partial Spin-off of the Financial Services business, the figures for continuing operations as of March 31, 2026 are presented. Year-on-year changes are calculated using figures for continuing operations as of March 31, 2025.\n\nRegarding the employment of persons with disabilities, under the philosophy of one of its founders, Masaru Ibuka, Sony has focused on creating “workplaces that do not offer charity, but rather create an environment that makes it possible for individuals with disabilities to manufacture products that exceed those manufactured by individuals without disabilities.” Sony complies with the laws and norms of each country and region, and as a unified Group, is working to create a workplace environment in which employees can build their careers regardless of whether or not they have a disability. In addition, in recent years, employees with disabilities have contributed to the creation of business value through inclusive design, including through collaboration with product development teams as personnel responsible for accessibility initiatives.\n\nDiversity of Experience that Expands Individual Uniqueness\n\nWhen diverse individuals, based on their respective interests and strengths, step into unknown areas with intention, non-linear experiences are created. Sony regards “diversity of experience” generated in this manner as an important asset that supports the growth of both individuals and the organization. While “diversity of experience” is emphasized across the organization as a whole, particularly at the executive level of Sony Group Corporation, which leads Group management, Sony considers the accumulation of experiences across businesses as well as across countries and regions to be essential, and continuously monitors the content of such experiences. As of March 31, 2026, 75% of the Senior Executives and Corporate Executives of Sony Group Corporation have experience working at overseas Group companies.\n\nAt the same time, Sony believes that, among employees as well, the accumulation of diverse experiences both within and outside the company brings a wide range of knowledge and perspectives to the organization, thereby enhancing the strength of the organization as a whole. One example is the percentage of hires with experience at other companies or in other job categories among total hires at Sony Group Corporation and its consolidated subsidiaries in Japan, which was 28.9%*4 and 31.3%*4 for the fiscal years ended March 31, 2025 and 2026, respectively. Additionally, in overseas operations, the majority of employees have such experience at other companies or in other job categories. In personnel evaluations after joining the Group, no distinction is made based on hiring type and systems and mechanisms are in place to ensure that all employees are able to perform to their full potential.\n\nWith regard to supporting growth through cross-boundary experiences within the Group, based on development plans tailored to each individual within each business, Sony intentionally creates combinations of experiences through assignments to stretch roles, transfers that transcend organizational boundaries, and collaboration with employees from other businesses. In addition, through internal job posting systems and the “Career Plus” program (a system that allows employees to devote one to two days per week to work on projects in other departments across organizational boundaries), Sony has established an environment in which employees can, based on their own intentions, take on new roles.\n\nSony has commenced monitoring the overseas experience of employees at the Sony Group Corporation headquarters level. At present, compared to management-level employees, the percentage of leader-level employees (assistant manager level) with overseas assignment experience is relatively low, and therefore Sony will continue to provide overseas assignments as one of the cross-boundary experiences and opportunities for employee growth.\n\nFurthermore, from the perspective of evaluating whether such diverse experience opportunities are leading to employees’ perception of their own growth, Sony Group Corporation also monitors employees’ perceptions\n\n \n\n- 32 -\n\n##### Table of Contents\n\nregarding “growth opportunities” through employee engagement surveys. The score for “Opportunities for Growth” in the survey*5 conducted in the fiscal year ended March 31, 2026 was 69 points.\n\n \n\n*4\n\nIn connection with the execution of the Partial Spin-off of the Financial Services business, the figures of Sony Group Corporation and its domestic subsidiaries in continuing operations for the fiscal year ended March 31, 2026 are presented. In connection with this change, the figures for the fiscal year ended March 31, 2025 have also been reclassified and restated.\n\n \n\n*5\n\nA score calculated by converting responses on a 5-point scale to the question “Do you have ample opportunities for learning and growth?” into a scale where a rating of 5 equals 100 points, 4 equals 75 points, 3 equals 50 points, 2 equals 25 points and 1 equals 0 points.\n\nLeadership and Corporate Culture that Embraces Diverse Perspectives and Brings Out a Spirit of Challenge\n\nEven when diverse individuals interact and experiences are accumulated, whether a spirit of challenge is demonstrated ultimately depends on leadership and organizational culture. Welcoming perspectives that differ from one’s own, promoting an active exchange of opinions, and elevating such differing perspectives into new sources of organizational strength constitute the “leadership that embraces diverse perspectives” that is expected of Sony’s leaders.\n\nAt the core of such leadership lies dialogue. By exercising emotional intelligence quotient (“EQ”) leadership, which is based on understanding emotions and attentive listening, and by promoting dialogue that engages with the intrinsic motivation of each individual, Sony seeks to ensure psychological safety and to foster an organizational culture in which individuals are able to take on challenges without fear of failure. For example, Sony Group Corporation has started to incorporate EQ leadership into the curriculum of its training programs for newly appointed managers from the fiscal year ended March 31, 2026.\n\nIn addition, Sony believes that it is also important for senior management to communicate their thinking directly to employees and to continue creating opportunities for employees to internalize such thinking as their own, as this contributes to the maintenance and enhancement of its organizational culture. In the fiscal year ended March 31, 2026, Sony Group Corporation held lectures by its executives on “leadership that inspires people,” targeting all employees across the Group, and also conducted roundtable discussions that provide opportunities for Group executives and employees who continue to take on challenges in their respective areas of expertise to directly exchange views.\n\nManagement Structure that Connects Individual Challenges and Organizational Growth to the Future\n\nSony has been working to evolve its management structure in order to carry forward the cycle of challenges into the future and to enhance corporate value over the mid- to long-term. At present, through collaboration with each business, Sony is connecting diverse individuals who are driving transformation to be the forefront of change with senior management, which enhances the effectiveness of succession planning. Specifically, as each business forms and manages a pool of core talent, the management team of the Group headquarters also maintains a cross-organizational understanding of such talent and is proceeding with the examination of a framework to appoint and develop such talent to senior management roles.\n\nFurthermore, in order to develop management talent capable of leading an organization such as Sony, which operates diverse businesses, the commitment of a diverse current management team to the development of the next generation of leaders beyond the boundaries of their respective businesses as well as countries and regions is indispensable. Through the “Sony University,” Sony provides employees who gather from across businesses as well as countries and regions with perspectives and a broader field of vision with respect to Group management, through lectures, group discussions, and a dialogue with senior management. Through the “Sony Cross-Mentoring Program,” by enabling senior management from different businesses and next-generation management talent to establish mentor–mentee relationships, Sony provides opportunities for developing a deeper understanding of new fields beyond one’s own business, gaining insights and learning that contribute to individual development plans, and expanding networks.\n\nTogether with a management team that possesses diverse and extensive experience, Sony aims to carry forward the foundation in which new challenges continuously emerge for the next generation.\n\n \n\n- 33 -\n\n##### Table of Contents\n\nC.\n\nOrganizational Structure\n\nThe following table sets forth the significant subsidiaries owned, directly or indirectly, by Sony Group Corporation.\n\n \n\nName of company\n\n  \nCountry of\nincorporation /residence\n  \n(As of March 31, 2026)\nPercentage owned\n\nSony Interactive Entertainment Inc.\n\n  \nJapan\n  \n100.0\n\nSony Music Entertainment (Japan) Inc.\n\n  \nJapan\n  \n100.0\n\nSony Corporation\n\n  \nJapan\n  \n100.0\n\nSony Global Manufacturing & Operations Corporation\n\n  \nJapan\n  \n100.0\n\nSony Network Communications Inc.\n\n  \nJapan\n  \n100.0\n\nSony Marketing Inc.\n\n  \nJapan\n  \n100.0\n\nSony Semiconductor Solutions Corporation\n\n  \nJapan\n  \n100.0\n\nSony Semiconductor Manufacturing Corporation\n\n  \nJapan\n  \n100.0\n\nSony Semiconductor Energy Management Corporation\n\n  \nJapan\n  \n100.0\n\nSony Storage Media Corporation\n\n  \nJapan\n  \n100.0\n\nSony Global Solutions Inc.\n\n  \nJapan\n  \n100.0\n\nSony Corporation of America\n\n  \nU.S.A.\n  \n100.0\n\nSony Interactive Entertainment LLC\n\n  \nU.S.A.\n  \n100.0\n\nSony Music Entertainment\n\n  \nU.S.A.\n  \n100.0\n\nSony Music Publishing LLC\n\n  \nU.S.A.\n  \n100.0\n\nSony Pictures Entertainment Inc.\n\n  \nU.S.A.\n  \n100.0\n\nColumbia Pictures Industries, Inc.\n\n  \nU.S.A.\n  \n100.0\n\nCPT Holdings, Inc.\n\n  \nU.S.A.\n  \n100.0\n\nSony Electronics Inc.\n\n  \nU.S.A.\n  \n100.0\n\nSony Capital Corporation\n\n  \nU.S.A.\n  \n100.0\n\nSony Interactive Entertainment Europe Ltd.\n\n  \nU.K.\n  \n100.0\n\nSony Europe B.V.\n\n  \nU.K.\n  \n100.0\n\nSony Global Treasury Services Plc\n\n  \nU.K.\n  \n100.0\n\nSony Overseas Holding B.V.\n\n  \nNetherlands\n  \n100.0\n\nSony (China) Limited\n\n  \nChina\n  \n100.0\n\nSony EMCS (Malaysia) Sdn. Bhd.\n\n  \nMalaysia\n  \n100.0\n\nSony Electronics (Singapore) Pte. Ltd.\n\n  \nSingapore\n  \n100.0\n\nSony Device Technology (Thailand) Co., Ltd.\n\n  \nThailand\n  \n100.0\n\n \n\n- 34 -\n\n##### Table of Contents\n\nD.\n\nProperty, Plant and Equipment\n\nSony has a number of offices, plants and warehouses throughout the world. Most of the buildings and land in/on which such offices, plants and warehouses are located are owned by Sony.\n\nThe status of major property, plant and equipment as of March 31, 2026 is as follows:\n\n \n\nFacility or\n\nSubsidiary Name\n\n(Primary Location)\n\n \nSegment\n \nDetails\n \nCarrying Amount (Yen in millions)\n \n \n\nNumber of\n\nemployees*2\n\n \n\n \n\nLand\n\n(Area\n(thousand\nsquare\nmeters))\n\n \n \nBuildings\n \n \n\nMachinery,\nequipment\nand other\n\nassets* 1\n\n \n \nRight-of-use\nassets\n \n\nIn Japan (Sony Group Corporation*3):\n\n \n\nHeadquarters\n\n(Minato-ku, Tokyo)\n\n \nCorporate\n \nHeadquarters facilities\n \n \n\n36\n\n(0\n\n \n\n) \n\n \n \n3,191\n \n \n \n14,210\n \n \n \n92,409\n \n \n \n1,603\n \n\nOthers*4\n \nCorporate\n \nHeadquarters facilities\n \n \n\n4,605\n\n(279\n\n \n\n) \n\n \n \n31,294\n \n \n \n1,722\n \n \n \n49,057\n \n \n \n563\n \n\nIn Japan (Subsidiaries):\n\n \n\nSony Interactive Entertainment Inc.*5\n\n(Minato-ku, Tokyo)\n\n \nG&NS\n \nHome gaming consoles / cloud-related software\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n1,690\n \n \n \n174,141\n \n \n \n18,758\n \n \n \n2,200\n \n\nSony Corporation\n(Minato-ku, Tokyo)\n \nET&S\n \nResearch facilities for TVs, audio / video devices, cameras, broadcasting equipment and medical equipment\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n2,013\n \n \n \n51,279\n \n \n \n32,521\n \n \n \n7,200\n \n\nSony Network Communications Inc.*5\n\n(Shinagawa-ku, Tokyo)\n\n \nET&S\n \nData communication facilities\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n488\n \n \n \n75,980\n \n \n \n6,041\n \n \n \n1,900\n \n\nSony Global Manufacturing & Operations Corporation\n\n(Kohda Site, etc.)\n\n(Minato-ku, Tokyo)\n\n \nET&S, I&SS, All Other\n \nProduction facilities for electronic devices, etc.\n \n \n\n4,961\n\n(386\n\n \n\n) \n\n \n \n9,060\n \n \n \n13,192\n \n \n \n4,566\n \n \n \n3,100\n \n\nSony Semiconductor Solutions Corporation\n\n(Atsugi-shi, Kanagawa)\n\n \nI&SS\n \nResearch facilities for image sensors, etc.\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n1,452\n \n \n \n57,933\n \n \n \n22,163\n \n \n \n7,400\n \n\nSony Semiconductor Manufacturing Corporation\n\n(Nagasaki TEC, etc.)\n\n(Kikuchi-gun, Kumamoto)\n\n \nI&SS\n \nProduction facilities for image sensors, etc.\n \n \n\n21,603\n\n(1,003\n\n \n\n) \n\n \n \n265,099\n \n \n \n481,520\n \n \n \n13,210\n \n \n \n9,300\n \n\nSony Semiconductor Energy Management Corporation\n\n(Nagasaki TEC, etc.)\n\n(Kikuchi-gun, Kumamoto)\n\n \nI&SS\n \nEnergy supply facilities for the manufacturing of image sensors, etc.\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n50,261\n \n \n \n89,562\n \n \n \n34,106\n \n \n \n100\n \n\nSony Music Entertainment (Japan) Inc.*5\n\n(Chiyoda-ku, Tokyo)\n\n \nMusic\n \nMusic facilities and in-house software\n \n \n\n22,548\n\n(320\n\n \n\n) \n\n \n \n9,711\n \n \n \n185,632\n \n \n \n12,999\n \n \n \n4,700\n \n\nSony Global Solutions Inc.\n\n(Minato-ku, Tokyo)\n\n \nCorporate\n \nIn-house software\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n416\n \n \n \n21,194\n \n \n \n1,227\n \n \n \n500\n \n\nOutside Japan (Subsidiaries):\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSony Corporation of America*5\n\n(New York, United States)\n\n \n\nET&S,\n\nI&SS\n\n \n\nProduction facilities for electronic products, etc.\n\n \n\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n194\n \n \n \n8,782\n \n \n \n7,132\n \n \n \n1,500\n \n\n \nMusic\n \nMusic catalogs, etc.\n \n \n\n \n\n96\n\n(4\n\n \n\n \n\n) \n\n \n\n \n \n16,810\n \n \n \n1,706,233\n \n \n \n64,582\n \n \n \n6,700\n \n\n \nAll Other, Corporate\n \nOffice buildings and machinery, etc.\n \n \n\n740\n\n(272\n\n \n\n) \n\n \n \n8,952\n \n \n \n18,997\n \n \n \n8,557\n \n \n \n1,500\n \n\nSony Interactive Entertainment LLC*5\n\n(California, United States)\n\n \nG&NS\n \nCloud-related facilities, etc.\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n10,675\n \n \n \n147,967\n \n \n \n69,024\n \n \n \n6,800\n \n\nSony Interactive Entertainment Europe Ltd.*5\n\n(London, United Kingdom)\n\n \nG&NS\n \nCloud-related facilities, etc.\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n4,938\n \n \n \n30,298\n \n \n \n23,060\n \n \n \n3,100\n \n\nSony Europe B.V.*5\n\n(Surrey, United Kingdom)\n\n \nET&S, I&SS, All Other\n \nOffice buildings and sales facilities, etc.\n \n \n\n2,956\n\n(45\n\n \n\n) \n\n \n \n4,028\n \n \n \n27,635\n \n \n \n8,005\n \n \n \n2,900\n \n\nSony Device Technology (Thailand) Co., Ltd.\n\n(Bangkadi, Thailand)\n\n \nI&SS\n \nProduction facilities for electronic products, etc.\n \n \n\n597\n\n(132\n\n \n\n) \n\n \n \n12,661\n \n \n \n17,541\n \n \n \n52\n \n \n \n1,200\n \n\nSony EMCS (Malaysia) Sdn. Bhd.\n(Selangor, Malaysia)\n \nET&S\n \nProduction facilities for electronic devices, etc.\n \n \n\n—\n\n(—\n\n \n\n) \n\n \n \n3,429\n \n \n \n4,276\n \n \n \n178\n \n \n \n3,600\n \n\nSony Pictures Entertainment Inc.*5\n\n(Delaware, United States)\n\n \nPictures\n \nProduction facilities for motion pictures, television programming, video software, etc.\n \n \n\n13,479\n\n(318\n\n \n\n) \n\n \n \n94,260\n \n \n \n871,893\n \n \n \n91,668\n \n \n \n11,300\n \n\n*1 “Machinery, equipment and other assets” represents machinery, equipment and other tangible fixed assets, as well as content assets and other intangible assets.\n\n \n\n- 35 -\n\n##### Table of Contents\n\n*2 Numbers of employees of subsidiaries are rounded to the nearest hundred.\n\n*3 Includes facilities leased from subsidiaries in Japan. In addition to the listed facilities, Sony Group Corporation leases a portion of its land, buildings and structures to subsidiaries and affiliates in Japan. Furthermore, Sony Group Corporation subleases its right-of-use assets mainly to subsidiaries and affiliates in Japan.\n\n*4 “Others” primarily includes Sony City Osaki and Atsugi TEC.\n\n*5 Figures for Sony Interactive Entertainment Inc., Sony Network Communications Inc., Sony Music Entertainment (Japan) Inc., Sony Corporation of America, Sony Interactive Entertainment LLC, Sony Interactive Entertainment Europe Ltd., Sony Europe B.V. and Sony Pictures Entertainment Inc. are consolidated financial figures, which include their subsidiaries’ figures."}