索尼 (SONY) 2024 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen. It is now time to start Sony Group's Q1 FY 2023 Consolidated Financial Results Presentation Meeting. I am [Okada] over the Corporate Communications.

女士們、先生們，午安。現在開始索尼集團2023財年第一季合併財務業績發表會。我是企業傳播部門的[岡田]。

I would like to first introduce the speakers today, President, COO and CFO, Hiroki Totoki; and Senior Vice President in charge of the Corporate Planning Group DE&I promotion, also support Financial Service and Entertainment segment, Naomi Matsuoka; and then Senior Vice President in charge of Finance and IR, Sadahiko Hayakawa. So those 3 will present the Q1 FY 2023 consolidated financial results also the outlook throughout the FY 2023. And there will be a question-and-answer session, and we plan to have a 70 minutes session.

首先，我想介紹今天的演講嘉賓：總裁兼營運長兼財務長十時裕樹；負責企業規劃集團DE&I推廣並支持金融服務和娛樂部門的高級副總裁松岡直美；以及負責財務和投資者關係的高級副總裁早川貞彥。這三位嘉賓將介紹2023財年第一季的合併財務表現以及2023財年的展望。之後將會有問答環節，我們計畫安排一個70分鐘的環節。

Thank you. First speaker is Mr. Totoki.

謝謝。第一位發言的是十時先生。

So the speakers today are Matsuoka and Hayakawa. And then toward the end, I'd like to make a summary comments. So first speaker, Hayakawa-san. Matsuoka and Hayakawa will present the consolidated results.

今天的演講嘉賓是松岡和早川。最後，我想做一個總結發言。第一位演講嘉賓是早川先生。松岡和早川將介紹合併結果。

Starting from FY '23 Q1, Sony has adopted a new accounting standard, IFRS 17 new standard, pertaining to insurance contracts, the annual results for the same quarter of the previous fiscal year. And previous fiscal year that we'll show today are presented after recalculation based on the new standard. We will explain the details later in the Financial Services segment part.

從2023財年第一季開始，索尼採用了新的會計準則—IFRS 17，該準則適用於保險合同，年度業績將與上一財年同期持平。我們今天展示的上一財年業績是根據新準則重新計算的。我們將在稍後的金融服務部門部分詳細介紹。

Consolidated sales for the quarter increased a significant 33% compared to the same quarter of the previous fiscal year year-on-year to JPY 2,963.7 billion. Consolidated operating income decreased JPY 111.8 billion year-on-year to JPY 253.0 billion, primarily due to an JPY 84.7 billion decrease in operating income of the Financial Services segment. This decrease in operating income on Financial Services segment was primarily due to the impact of the recalculation of the previous weaker years' results, resulting from the application of the new standard and absent of a gain on the sales of real estate recorded in the same quarter of the previous fiscal year.

本季綜合銷售額與上一財年同期大幅成長33%，達2.9637兆日圓。綜合營業收入較去年同期下降1,118億日元，至2,530億日元，主因是金融服務部門營業收入減少847億日圓。金融服務部門營業收入減少的主要原因是，由於新準則的應用，重新計算了前幾年業績較差的年度，且上一財年同期未錄得房地產銷售收益。

Adjusted EBITDA decreased JPY 90.6 billion year-on-year to JPY 406.2 billion. Income before income taxes decreased JPY 73.2 billion year-on-year to JPY 276 billion. And net income attributable to Sony Group Corporation shareholders decreased JPY 43.5 billion to JPY 217.5 billion. Result per segment for the quarter are shown on this slide.

調整後EBITDA年減906億日圓，至4062億日圓。稅前利潤年減732億日元，至2,760億日圓。歸屬於索尼集團公司股東的淨利下降435億日圓，至2,175億日圓。本季各部門業績如下表所示。

Next, I will explain the full year consolidated results forecast for FY '23. The forecast for the full year is JPY 12.2 trillion for sales, an increase of JPY 700 billion from the previous forecast. JPY 1.170 trillion for the operating income, no change from the previous forecast. And JPY 1.750 trillion for adjusted EBITDA, no change from the previous forecast.

接下來，我將解釋2023財年全年合併業績預測。全年銷售額預測為12.2兆日元，較先前的預測增加7,000億日元。營業利潤預測為1.170兆日圓，與先前的預測持平。調整後息稅折舊攤提前利潤預測為1.750兆日元，與先前的預測持平。

The forecast for the consolidated operating cash flow, excluding the Financial Services segment, is unchanged from the previous forecast. The assumed exchange rates have been revised to approximately JPY 135 billion to the U.S. dollar and approximately JPY 146 to the euro. The FY '23 results forecast by segment is shown here.

不包括金融服務部門的合併營業現金流預測與先前的預測一致。假設匯率已修訂為約1350億日圓兌1美元，約146億日圓兌1歐元。各部門2023財政年度業績預測如下。

Now I will move on to an overview of each business segment. First is the Games & Network Services segment. FY '23 Q1 sales increased, a significant 28% year-on-year to JPY 771.9 billion, primarily due to an increase in sales of third-party software and increase in sales of PlayStation 5 hardware and impact of foreign exchange rates. Operating income decreased JPY 3.6 billion year-on-year to JPY 49.2 billion, primarily due to an increase in expenses including the acquisition-related expenses of JPY 16.6 billion. Despite the positive impact of higher third-party software sales, adjusted OIBDA increased JPY 5.7 billion year-on-year to JPY 75.9 billion.

現在我將概述每個業務部門。首先是遊戲和網路服務部門。 2023財年第一季銷售額年增28%，達到7,719億日圓，主要得益於第三方軟體銷售額的成長、PlayStation 5硬體銷售額的成長以及匯率的影響。營業收入較去年減少36億日元，至492億日元，主要歸因於包括收購相關費用在內的支出增加166億日元。儘管第三方軟體銷售成長帶來了正面影響，但調整後的OIBDA年增57億日元，達到759億日圓。

FY '23 sales are expected to be JPY 4.170 trillion, an increase from the previous forecast of JPY 270 billion. Operating income is expected to be JPY 270 billion, no change from the previous forecast. And adjusted OIBDA is expected to be JPY 375 billion, an increase of JPY 10 billion from the previous forecast.

2023財年銷售額預計為4.170兆日元，高於先前預測的2,700億日圓。營業收入預計為2700億日元，與先前預測持平。調整後OIBDA預計為3,750億日元，較先前預測增加100億日圓。

Although we upwardly revised the sales forecast for third-party software, which is performing well, we have incorporated the deterioration in the profitability of PS5 hardware, mainly due to the changes in promotions by geographic region and the sales channel mix. Primarily due to the release of the appealing third-party software and expansion of PS5 penetration, software sales for the quarter reached JPY 46.2 billion, a significant 27% increase year-on-year. While there was also positive on the exchange rates, this was 14% higher than the first quarter of the fiscal year ended March 31, 2022, when there was stay-at-home demand.

雖然我們上調了表現良好的第三方軟體的銷售預測，但已將PS5硬體獲利能力的下降納入考量，這主要源自於各地區促銷活動和銷售管道組合的變化。主要得益於頗具吸引力的第三方軟體的發布以及PS5普及率的提升，本季軟體銷售額達到462億日元，年增27%。儘管匯率因素也帶來了利好，但與2022年3月31日止財年第一季（當時居家隔離需求旺盛）相比，本季的軟體銷售額仍成長了14%。

Total gameplay time during the quarter was only 2% higher year-on-year, and we see the year-on-year growth in software sales has been driven mainly by a considerable increase in spending per play hour by the expanding PS5 user base. PS5 hardware sales were 3.3 million units, a significant increase of 38% year-on-year. This amount is somewhat less than the expected progress toward our fiscal year sales target of 25 million units. But due to the promotion began in July, we are seeing an improvement in the momentum of sales. We have positioned the accelerated penetration of PS5 hardware as one of the highest priorities in this fiscal year, and we will try to work steadily to implement necessary measures to achieve hardware sales target of 25 million units. Towards the end of the calendar year, the first party title, Marvel Spider-Man 2, and major third-party titles are scheduled to be released as well. And we expect that the entire gaming industry and the PS platform will be greatly energized.

本季總遊戲時間年增2%，我們認為軟體銷售額年增主要得益於PS5用戶群不斷擴大，導致平均每小時遊戲支出大幅增加。 PS5硬體銷量為330萬台，較去年同期大幅成長38%。這數字略低於我們財年2,500萬台銷售目標的預期進度。但由於7月開始的促銷活動，我們看到銷售動能有所改善。我們已將加速PS5硬體的普及作為本財年的首要任務之一，並將努力穩步實施必要措施，以實現2500萬台的硬體銷售目標。在年底，第一方遊戲《漫威蜘蛛人2》和主要的第三方遊戲也將上市。我們預計整個遊戲產業和PS平台都將煥發活力。

Next is the Music segment. FY '23 Q1 sales increased a significant 16% year-on-year to JPY 358.2 billion, primarily due to the increase in streaming sales and impact of foreign exchange rates. Operating income increased a significant JPY 12.4 billion year-on-year to JPY 73.4 billion, primarily due to the impact of the increased sales and the recording of a remeasurement gain of 6 point -- JPY 60 billion from making an equity method affiliate, a consolidated subsidiary. Adjusted OIBDA increased JPY 8.2 billion year-on-year to JPY 82.9 billion. Profit contribution from visual media platform was just under 10% of the operating income of this segment.

接下來是音樂部門。 2023財年第一季銷售額年增16%，達到3,582億日圓，主要得益於串流媒體銷售額的成長以及匯率的影響。營業收入年增124億日元，達到734億日元，主要得益於銷售額增長以及將一家權益法核算的關聯公司納入合併子公司後，錄得6個百分點的重估收益——600億日元。調整後OIBDA年增82億日元，達到829億日圓。視覺媒體平台的利潤貢獻略低於該部門營業收入的10%。

FY '23 sales are expected to be JPY 1.490 trillion, an increase of JPY 80 billion from the previous forecast. Operating income is expected to be JPY 280 billion, an increase of JPY 15 billion the previous forecast. And adjusted OIBDA is expected to be JPY 335 billion, an increase of JPY 10 billion from the previous forecast.

2023財年銷售額預估為1.490兆日元，較先前預測增加800億日圓。營業收入預估為2,800億日元，較先前預測增加150億日圓。調整後OIBDA預計為3,350億日元，較先前預測增加100億日元。

Streaming revenue for the quarter continued to grow, up 12% for Recorded Music and 18% for Music Publishing on a U.S. dollar basis. In Recorded Music, we are continuing to deliver hits at a high level. During the quarter, 38 of our songs on average ranked in the Spotify Weekly Global Top 100 songs. More than 70% of songs listened to in the music streaming market in the U.S. are catalog songs that were released more than 18 months ago. So creating continuous hits in the short term simultaneously leads to an enhancement of future catalog and increase in sales and market share over the mid to long term.

本季串流媒體收入持續成長，以美元計算，錄製音樂收入成長12%，音樂出版收入成長18%。在錄製音樂領域，我們繼續推出高水準的熱門歌曲。本季，我們平均有38首歌曲進入Spotify全球每週百大單曲榜。在美國音樂串流媒體市場上，超過70%的收聽歌曲是發行超過18個月的曲目。因此，短期內持續創造熱門歌曲，將同時增強未來曲目的規模，並在中長期內提升銷售量和市場佔有率。

At Sony Music Entertainment, we have doubled the number of creative personnel in the last 5 years and the number of artists producing songs for streaming worldwide has increased 35%. As a result, current market share in the U.S. over the 4 years through the last fiscal year has risen from 21% to 27%. And sales and operating income for the Sony Music Group, which includes Music Publishing overseas, have increased significantly CAGRs of 17% and 24%, respectively. In addition to this continuous investment in artists and labels, we aim to achieve stable growth that outperforms the market by expanding our business in new areas such as rapidly growing emerging markets and social media.

索尼音樂娛樂公司在過去五年中將創意人員數量翻了一番，全球串流音樂創作藝術家的數量也增加了35%。因此，截至上財年的四年間，其在美國的市佔率已從21%上升至27%。索尼音樂集團（包括海外音樂出版業務）的銷售額和營業利潤也實現了顯著增長，複合年增長率分別達到17%和24%。除了持續投資藝術家和唱片公司之外，我們還致力於透過在快速成長的新興市場和社群媒體等新領域拓展業務，實現超越市場的穩定成長。

In the domestic music business, YOASOBI's TV anime theme song, Idol, surpassed 300 million streams, the fastest song to reach this total number of streams in history according to Billboard Japan study. It held the #1 spot for 16 consecutive weeks in the total domestic song chart. This momentum is spreading overseas, and the song has become a global hit and the biggest J-Pop hit reaching #7 on Billboard's Global Hits chart. With the expansion of the global anime market as a tailwind, we expect that overseas expansion of artists, which SMEJ has been focusing on, will accelerate further.

在國內音樂領域，YOASOBI的電視動畫主題曲《Idol》的串流播放量突破3億，根據Billboard Japan的調查，創下了史上最快突破這一紀錄的歌曲。該曲連續16週佔據了國內綜合歌曲榜的第一位。這股動能正在海外蔓延，這首歌已成為全球熱門歌曲，並成為Billboard全球熱門歌曲榜單第七位，成為日本最大的熱門歌曲。在全球動畫市場擴張的推動下，我們預期SMEJ一直以來關注的藝人海外拓展將會進一步加速。

Next is the Pictures segment. FY '23 Q1 sales decreased 6% year-on-year to JPY 320.4 billion, mainly due to a decrease in deliveries in television productions and the impact of fewer releases of tent-pole films in the previously -- in the previous fiscal year in Motion Pictures. Operating income decreased a significant JPY 34.7 billion year-on-year to JPY 16 billion, primarily due to the impact of the decrease in sales and impact increase in marketing expenses in Motion Pictures. Adjusted OIBDA decreased JPY 33.4 billion year-on-year to JPY 28.5 billion. FY '23 sales are expected to be JPY 1.470 billion, down JPY 50 billion from the previous forecast. There is no change to the forecast for operating income and adjusted OIBDA.

接下來是影視部門。 2023財年第一季銷售額年減6%至3,204億日圓，主因是電視劇交付量下降，以及上一財年電影部門主打電影發行量減少的影響。營業收入較去年大幅下降347億日圓至160億日圓，主要原因是電影部門銷售額下降和行銷費用增加的影響。調整後OIBDA年減334億日圓至285億日圓。 2023財年銷售額預計為14.7億日元，較先前的預測下降500億日圓。營業收入和調整後OIBDA的預測維持不變。

Spider-Man: Across the Spider-Verse, which was released theatrically in June, has become a huge hit with box office revenue exceeding USD 680 million worldwide as of August 7, making it our highest grossing animated film ever. With regard to bringing PlayStation IP to video, the live-action drama, Twisted Metal, was launched on the Peacock streaming service in the U.S. in July. And the new movie, Gran Turismo, is scheduled to be released in theaters in the U.S. on August 25.

《蜘蛛人：平行宇宙》於六月上映，取得了巨大成功，截至8月7日，全球票房收入已超過6.8億美元，成為我們迄今為止票房最高的動畫電影。在將PlayStation IP引入影片方面，真人影集《扭曲金屬》已於7月在美國串流服務Peacock上線。新電影《GT賽車》預定8月25日在美國戲院上映。

Regarding Crunchyroll, the number of paying subscribers surpassed 12 million in July, driven by the exclusive distribution of the television animation, Demon Slayer: Kimetsu No Yaiba Swordsmith Village Arc, which started in April. And our anime business is steadily growing in a multifaceted way with overseas distribution of the anime film, Suzume no Tojimari, and the strong sales of mobile game, Street Fighter: Duel. Although it is unclear when the strikes in Hollywood will end, we aim to work with alliance of Motion Picture and television producers to negotiate a resolution with the unions as soon as possible so that we can restart normal production activity.

Crunchyroll 方面，7 月付費訂閱用戶數量突破 1,200 萬，這得益於 4 月開播的電視動畫《鬼滅之刃：劍匠村篇》的獨家發行。此外，我們的動畫業務也正在多方面穩步增長，包括動畫電影《魍魎之刀馬瑞》的海外發行，以及手機遊戲《街頭霸王：決鬥》的強勁銷售。雖然好萊塢的罷工何時結束尚不明朗，但我們計劃與電影和電視製片人聯盟合作，盡快與工會協商解決方案，以便恢復正常的製作活動。

Next is the ET&S segment. FY '23 Q1 sales increased 4% year-on-year to JPY 571.8 billion, primarily due to impact of foreign exchange rates despite a decline in smartphone and television sales. Operating income was JPY 55.6 billion, an increase of JPY 2.1 billion year-on-year, primarily due to the cost reductions in televisions despite the impact of decreased smartphone sales. Adjusted OIBDA increased JPY 3.9 billion year-on-year to JPY 80.9 billion. FY '23 sales expected to be JPY 2.430 trillion, an increase of JPY 50 billion from the previous forecast. There are no changes to the forecast for operating income and adjusted OIBDA.

接下來是電子技術與服務 (ET&S) 部門。 2023財年第一季銷售額年增4%至5,718億日圓，主要受匯率影響，儘管智慧型手機和電視銷量下降。營業收入為556億日元，年增21億日元，主要受電視成本下降影響，儘管智慧型手機銷量下降。調整後OIBDA年增39億日圓至809億日圓。 2023財年銷售額預計為2.430兆日元，比先前的預測增加500億日圓。營業收入和調整後OIBDA的預測維持不變。

The market environment for major product categories in the current quarter continued to be the same as the previous quarter with televisions and smartphones facing severe condition while the market for digital camera, headphones and other products remain strong.

本季各大產品類別的市場環境與上季基本相同，電視、智慧型手機市場情勢嚴峻，數位相機、耳機等產品市場仍保持強勁。

In each category, we are running our operations so as to respond to changes in the market environment, and we were able to secure stable profits across the entire segment. Inventory levels have improved significantly year-on-year, mainly for television due to the thorough management from production to sales. And we are managing them at the profit level.

在每個品類中，我們都積極應對市場環境的變化，並在整個業務領域中實現了穩定的利潤。由於從生產到銷售的全面管理，庫存水準年比大幅改善，尤其是電視機庫存。我們正在以獲利水準進行管理。

As the business environment for televisions and smartphones is expected to continue to be severe, we will pay close attention to costs and inventory control. We also plan to proceed with -- early the reaping of income in additional camera space by keeping up with recent strong demand. We have introduced the appealing new products that you see here, and we are focusing on securing the stable profits by continuing to enhance our profit -- product appeal.

由於電視和智慧型手機的經營環境預計將持續嚴峻，我們將密切關注成本和庫存控制。我們也計劃透過滿足近期強勁的需求，提前在新增攝影機領域實現收益。我們已經推出了您在此處看到的極具吸引力的新產品，我們正致力於透過持續提升產品吸引力來確保穩定的利潤。

Next is I&SS segment. FY '23 Q1 sales significantly increased 23% year-on-year to JPY 292.7 million, mainly due to high sales of image sensors for mobile products and the impact of foreign exchange rates. Operating income decreased JPY 9 billion year-on-year to JPY 12.7 billion, primarily due to an increase in expenses such as depreciation and amortization expenses despite the positive impact of foreign exchange rates and the effect of increased sales. Adjusted OIBDA increased JPY 2.7 billion year-on-year to JPY 70 billion. For FY '23, sales are expected to be JPY 1,560 billion, down JPY 40 billion from the previous forecast. Operating income and adjusted OIBDA expected to decrease JPY 20 billion from the previous forecast to JPY 180 billion and JPY 425 billion, respectively.

接下來是I&SS部門。 23財年第一季銷售額較去年同期大幅成長23%，達到2.927億日圓，主要原因是行動產品影像感測器銷售量高以及匯率的影響。營業收入年減90億日元，至127億日元，主要原因是儘管受到匯率的正面影響和銷售額增加的影響，但折舊和攤提費用等費用增加。調整後的OIBDA年增27億日圓，達到700億日圓。 23財年的銷售額預計為1.56兆日元，比先前的預測下降400億日圓。營業收入和調整後的OIBDA預計將分別比之前的預測減少200億日元，至1800億日元和4250億日元。

Recently, the smartphone product market is worsening compared with our expectations due to a delayed market recovery in China, a prolonged slump in Europe and a slowdown in North America. In our previous forecast, we assumed a gradual market recovery from the second half of the current fiscal year, but we have postponed that to the beginning of the next calendar year or the next fiscal year and have incorporated this revised timing into our sales forecast.

近期，由於中國市場復甦延遲、歐洲市場持續低迷以及北美市場放緩，智慧型手機產品市場表現低於我們的預期。在此之前，我們曾預測市場將從本財年下半年開始逐步復甦，但目前已將其推遲至下一自然年或下一財年年初，並將這項調整後的時間納入我們的銷售預測中。

In addition, in light of such product market conditions, smartphone manufacturers are making even greater -- further adjustment to their parts procurement. And this is having a significant impact on the second quarter following on the first quarter.

此外，針對這樣的產品市場行情，智慧型手機廠商在零件採購方面也做出了更大的調整，這繼第一季之後，對第二季也產生了顯著的影響。

In addition to smartphones the impact of the slow economic recovery in China, primarily in image sensors for industrial and social infrastructure, is noticeable. And we have lowered our forecast.

除了智慧型手機之外，中國經濟復甦緩慢的影響也十分明顯，尤其是在工業和社會基礎設施用影像感測器領域。因此，我們已下調了預測。

With respect to the increase in costs associated with the launch of mass production of new products for smartphones, we have reflected the latest production situation and have incorporated additional costs. However, production is gradually stabilizing, and we do not think that costs will continue to increase significantly going forward.

關於智慧型手機新產品量產帶來的成本增加，我們反映最新的生產情況，並已計入額外成本。不過，生產正在逐步穩定，我們認為未來成本不會繼續大幅上漲。

On the other hand, the trend towards larger die-sized image sensors being adopted by Chinese makers in their new smartphone products in the second half of the fiscal year is becoming noticeable, not just in flagship and high-end phones but the middle range phones as well. There's no change to our view that the trend towards larger mobile image sensors will drive the overall growth of the sensor market, which will grow at average annual rate of around 9% until FY 2030. We plan to continue to implement measures from a mid- to long-term perspective as well, such as strengthen technology development capabilities and securing production capacity so that we can steadily capture growth opportunities when market condition recovers.

另一方面，中國製造商在本財年下半年的新款智慧型手機產品中，採用更大尺寸影像感測器的趨勢愈發明顯，不僅體現在旗艦和高階手機上，也體現在中階手機中。我們始終認為，更大尺寸移動影像感測器的趨勢將推動感測器市場的整體成長，到2030財年，感測器市場的平均年增長率將達到9%左右。我們計劃繼續從中長期角度採取措施，例如加強技術開發能力和確保產能，以便在市場復甦時穩步抓住成長機會。

Last is Financial Services segment. As we said at the beginning, Sony has adopted the new accounting standard IFRS 17 starting this fiscal year. First, I will explain the impact of the adoption of the new standards, focusing on the important points. For details, please refer to Page 15 of the handout. Under new standard, Financial services revenue decreased primarily because the portion of insurance premium revenue amounting to surrender value that used to be recorded as revenue is no longer recorded as revenue.

最後是金融服務部門。正如我們一開始所說，索尼從本財年開始採用新的會計準則 IFRS 17。首先，我將解釋採用新準則的影響，並重點介紹其中的要點。詳情請參閱宣傳資料第 15 頁。根據新準則，金融服務收入的下降主要是因為保險費收入中，過去計入收入的相當於退保價值的部分不再計入收入。

In addition, under the new standard, the amount of liability increase or decreases depending upon market fluctuations due to insurance contract liabilities being reevaluated based upon financial variables, the latest financial variables, such as interest rates at the end of each quarter. The increase or decrease of such liabilities related to minimum guarantee of variable life insurance is recognized as profit and loss and impact operating income.

此外，新準則規定，由於保險合約負債會根據最新的金融變數（例如每季末的利率）重新評估，因此負債金額會隨著市場波動而增加或減少。此類與變額壽險最低保障額相關的負債的增加或減少，確認為損益，並影響營業收入。

Next, I will explain the full year results of the previous fiscal year recalculated based upon the new standard. Financial Services revenue decreased by 39% from the previous standard to JPY 889.1 billion, mainly due to nonrecognition of surrender value. Operating income increased by JPY 94.2 billion from the previous standard to JPY 318.1 billion as a result of a significant decrease in insurance policy liabilities after recalculation, primarily due to the rise in ultra long-term interest rates in the previous fiscal year and the recognition of profit due to that decrease. Because hedging operations meant to continue, the impact of profitability of market fluctuation were undertaken in the previous fiscal year. In accordance with the previous standard, a significant difference arose as a result of the recalculation from this fiscal year. We have transitioned to hedging operations in accordance with the new standards.

接下來，我將對根據新準則重新計算的上一財年全年業績進行說明。金融服務收入較上一財年準則下降39%，至8,891億日圓，主因是未確認退保價值。營業利潤較上一財年準則增加942億日元，至3181億日元，原因是重新計算後的保單負債大幅減少，這主要是由於上一財年超長期利率上升，並因此確認了利潤。由於避險業務旨在持續進行，因此上一財年已承擔了市場波動對獲利的影響。依照上一財年準則，由於重新計算，產生了重大差異。我們已根據新準則過渡到避險業務。

Now I will explain this segment's performance in the current quarter on a year-on-year recalculated basis. Financial Services revenue increased a significant 215% year-on-year to JPY 681.4 billion, mainly due to a significant improvement in net gains and losses in the separate account at Sony Life, which benefited from a rise in stock prices in and outside Japan. There is no difference between the new and previous standards when it comes to the impact market fluctuations have on gains and losses in the separate accounts.

現在，我將按重新計算的同比口徑，解釋該部門本季的業績。金融服務營收年增215%，達到6,814億日圓，主要得益於索尼人壽獨立帳淨損益的顯著改善，這得益於日本國內外股價的上漲。在市場波動對獨立帳戶損益的影響方面，新舊準則之間沒有差異。

Operating income decreased a significant JPY 84.7 billion year-on-year to JPY 54.5 billion, mainly due to the fact that the impact of market fluctuation was controlled as a result of transitioning to hedging operations based on the new standard and due to the fact that there was a gain on the sales of real estate in the same period of the previous fiscal year. Adjusted OIBDA decreased JPY 84.2 billion year-on-year to JPY 61.4 billion. The FY '23 Financial Services revenue forecast is JPY 1.320 trillion, an increase of JPY 450 billion from the previous forecast, reflecting the result of the current quarter. There are no changes to the forecast for operating income and adjusted OIBDA. As has already always been the case, the forecast does not reflect the impact of market fluctuations from the second quarter onwards. In addition, we expect insurance service revenue result of Sony Life to continue to stably grow in line with the expansion of policy amount in force.

營業收入較去年大幅下降847億日圓，至545億日元，主要原因是根據新準則轉向避險操作後市場波動的影響得到控制，且上一財年同期房地產銷售收入有所增長。調整後OIBDA年減842億日圓，至614億日圓。 2023財年金融服務收入預測為1.320兆日元，較先前的預測增加4,500億日元，反映了本季的業績。營業收入和調整後OIBDA的預測沒有改變。與以往一樣，該預測不反映第二季及以後市場波動的影響。此外，我們預計索尼生命的保險服務收入將繼續隨著有效保單金額的擴大而穩定增長。

Finally, I would like to summarize everything. Business areas such as entertainment and image sensors, which we have positioned as growth areas, are reaching opportunities for growth over the mid- to long term. And we aim to grow through the unique competitiveness each business has in its area.

最後，我想總結一下。我們定位為成長領域的娛樂和影像感測器等業務領域，正在迎來中長期的成長機會。我們的目標是透過每個業務領域獨特的競爭力來實現成長。

On the other hand, since the operating environment this fiscal year is uncertain and there are many risks, we are operating the businesses with an emphasis on risk management.

另一方面，由於本財年的經營環境不確定，風險較多，我們在經營業務時非常重視風險管理。

In the hardware business of ET&S, I&SS and G&NS, we are responding primarily to the stagnation of the Chinese economy, the slowdown of the economy, mainly in Europe and the United States and geopolitical risks, while in the Pictures business, we plan to focus on various issues such as the strikes in Hollywood. We have reincorporated the expected impact of these factors and countermeasures into our current forecast. Inside Sony, we have begun to discuss the next mid-range plan, which begins next fiscal year, while looking to the potential market recovery from next fiscal year as an opportunity and preparing to reach our next stage of growth.

在ET&S、I&SS和G&NS的硬體業務中，我們主要應對中國經濟的停滯、以歐美為主的經濟放緩以及地緣政治風險；而在影視業務中，我們計劃重點關注好萊塢罷工等各種問題。我們已將這些因素的預期影響及其應對措施重新納入目前的預測中。索尼內部已開始討論將於下財年開始的下一個中期計劃，同時將下財年的潛在市場復甦視為機遇，為邁入下一階段的增長做好準備。

That's all for my presentation.

我的演講就到這裡。

Thank you very much. Totoki, Matsuoka and Hayakawa made a presentation. Now at 16:25, we would like to entertain the questions from the media. At 16:50, we'd like to intertie questions from the investors and analysts. And each session consists of about 20 minutes. And some people have already pre-submitted questions so that the pre-link your phone to that registered phone number. And then as to this way to ask questions in some of the matters of consideration, please refer to our invitation letter. So please wait for a few minutes before we resume the session. Thank you.

非常感謝。十時、松岡和早川做了演講。現在16:25，我們想回答媒體的提問。 16:50，我們想結合投資人和分析師的問題來提問。每場會議約20分鐘。有些人已經預先提交了問題，以便將您的電話預先連結到註冊的電話號碼。關於如何就一些審議事項進行提問，請參閱我們的邀請函。請稍等幾分鐘，我們再繼續會議。謝謝。

Thank you very much for waiting. We will now like to have the session to entertain questions from the media. The speakers are the same as the previous presenters, the 3 people on the screen. So let us start to entertain questions.

非常感謝大家的等待。現在我們開始回答媒體提問。發言嘉賓和之前的主持人一樣，都是螢幕上的三位。現在開始回答媒體提問。

(Operator Instructions) The first question is from [Furuka-san] from Nikkei.

(操作員指示)第一個問題來自日經新聞的[Furuka-san]。

I hope you can hear me. I'm [Furuka] of Nikkei newspaper. I have 2 parts of questions. The first question is that about your financial results. As Mr. Totoki explained to us that -- so the situation is maybe leveling off, like games and semiconductors and other issues. But from the Q1, of course, you are in the middle of that phase. But Mr. Totoki, what is your vision for the growth? To which area and segment are likely to grow more? Do you have a vision on this growth scenario? That's my first part of the question.

希望您能聽到我的聲音。我是《日經新聞》的[古河]。我有兩個問題。第一個問題是關於貴公司的財務表現。正如十時先生向我們解釋的那樣，情況可能正在趨於平穩，例如遊戲、半導體和其他方面。但從第一季開始，你們當然正處於這個階段的中間階段。十時先生，您對成長的願景是什麼？哪些領域和細分市場可能會成長更快？您對這種成長情境有什麼展望嗎？這是我問題的第一部分。

And my second part of the question is about the situation on the strikes. To what extent that the movie new film release might be delayed because of the U.S. strikes of actors and others. So that in the generative AI is linked to this problem because that might have adverse impact upon music and films and pictures. Some of the content assets might be undermined by the -- potentially by the AI. So what do you think of that the potential impact there?

我的第二部分問題是關於罷工的情況。美國演員和其他人員的罷工會在多大程度上推遲新電影的上映？生成式人工智慧與這個問題息息相關，因為這可能會對音樂、電影和影視產業產生負面影響。一些內容資產可能會被人工智慧破壞。那麼您認為這會帶來什麼潛在影響呢？

Thank you very much for your question. As to your first question, so in the next fiscal year in the growth scenario that I have in mind, actually, in this mid-term business plan that the Content IP, DTC as a technology investment as well as some of the diversified business segment should have intergroup collaboration. Those are promoted.

非常感謝您的提問。關於您的第一個問題，我設想的下一財年的成長情景是，實際上，在這份中期業務計劃中，內容IP、DTC作為技術投資，以及一些多元化業務部門應該進行跨集團合作。這些都得到了推動。

As a result, in the last 3 years, the cumulative -- that JPY 1.9 trillion of capital investment in equipment imaging led to JPY 1.8 trillion for that strategic investment. So gradually, we made progress. For the mid- to long term, we have already planted the seeds for the future growth potential. That's the first point.

因此，在過去三年中，我們累計在設備成像方面投入的1.9兆日圓資本投資，最終轉化為1.8兆日圓的策略投資。所以我們逐步取得了進展。從中長期來看，我們已經為未來的成長潛力播下了種子。這是第一點。

As to the collaboration within our group companies and segments, PlayStation game IP will be used. (inaudible) HBO, that the actual -- the drama TV production, but that became a big hit in 2022 in February. Unchartered was released in the theater, and those were success. Following those successes, numerous projects are ongoing, therefore, so that there's a strong momentum now like together with the music business. This kind of entertainment business, the 3 segments of the entertainment business, in the next mid-term plan that we expect a big growth, a sufficient growth to be achieved.

至於我們集團公司和部門內部的合作，我們將利用PlayStation遊戲IP。 （聽不清楚）HBO，其實是一部電視劇，但在2022年2月大獲成功。 《神秘海域》在戲院上映，取得了巨大成功。繼這些成功之後，許多項目正在進行中，因此現在發展勢頭強勁，包括音樂業務。我們預計娛樂業務的三大板塊將在下一個中期計劃中大幅成長，實現足夠的成長。

As with I&SS segment, for this fiscal year, of course, there could be maybe some stagnation or we are levering off the growth to a certain extent. Of course, the revenue sales are going up. In terms of profitability, there's slightly some areas where we are not fully satisfied. So we must secure the profitability in a growth scenario. That's something we have to implement in the mid-term, the plan, and that's our challenge and priority.

與工業和消費電子部門一樣，本財年當然可能會出現一些停滯，或者我們正在一定程度上抑製成長。當然，銷售額正在上升。就獲利能力而言，有些方面我們並不完全滿意。因此，我們必須在成長的情況下確保獲利能力。這是我們在中期計畫中必須實施的目標，也是我們的挑戰和優先事項。

In 2024 and afterwards, semiconductor market situation and mainly the market situation improves, especially in China, like a recovery in Chinese smartphone market is expected. But we have to be prepared fully so that we will be ready for the next term.

2024年及以後，半導體市場情勢，尤其是中國市場狀況將會好轉，例如預計中國智慧型手機市場將會復甦。但我們必須做好充分的準備，才能為下一個階段做好準備。

As to respond to your second part of the question about the strike-related issues. It's not directly just linked to the strikes, but of course, the generative AI has an adverse impact. And I think that's something I'd like to respond to you. It's not only affecting these films and pictures. The game of production, the music production and creator support already for anime, that the multilingual, the translation and so forth could be supported by AI. So the stakeholders have the rights and copyrights, and that should be respected in introduction of AI. Like music copyright, it might be violated. So we have to protect the IP as well as the artist and content. Related issues must be solved, just not by Sony stand-alone, but we have to have the entire interest involved in order to discuss to identify the future solution. That's my thought on this.

關於你關於罷工相關問題的第二部分，這不僅與罷工直接相關，生成式人工智慧當然也會產生負面影響。我想這也是我想回應你的。它不僅影響電影和圖片，還影響動畫的製作、音樂製作、創作者支援、多語言、翻譯等等，這些都可以由人工智慧支援。因此，利害關係人擁有權利和版權，在引入人工智慧時應該尊重這些權利和版權。例如，音樂版權可能會受到侵犯。因此，我們必須保護智慧財產權、藝術家和內容。相關問題必須解決，不僅僅是索尼一家的事情，我們必須讓所有利益相關者都參與進來，共同討論，找到未來的解決方案。這就是我的想法。

So we would like to move on to the next question. [Nishida-san], who is a freelancer.

那我們想進入下一個問題。 [西田先生]是一名自由工作者。

Very difficult to hear your voice. I'm very sorry, but I can not hear your voice. Can you repeat your question once again? Can you hear me?

很難聽清楚您的聲音。非常抱歉，我聽不見您的聲音。您能再重複一次您的問題嗎？您聽見我說話嗎？

Your voice is not clear. Your voice is not clear, unfortunately. Can you just put the microphone a little bit more distantly? I am very sorry, since the voice is not clear, for the time sake, we would like to move on to the next person to ask question.

你的聲音不清楚。很遺憾，你的聲音不清楚。你能把麥克風放遠一點嗎？非常抱歉，由於聲音不清楚，為了節省時間，我們想換到下一位提問者。

[Umedaki-san] from Toyo Keizai.

東洋經濟的[梅瀧先生]。

Can you hear me?

你聽得到我嗎？

Yes, I can hear you. So please go ahead.

是的，我能聽到。請繼續。

I have 2 questions. And first question is that, as was already mentioned, the 3 areas of segments of entertainment, the total, the income, the exceeds are 54%, the 3 segments combined. It is still very high. And so you talked about next MLP, what are the percentage you would like to reach for the total -- the income of those 3 segments? And so now the China slowdown, and you have already mentioned in I&SS. And for other segment, what is the impact? For instance, the consumer spending has been quite weak in China. So what is the impact on overall business of Sony Group?

我有兩個問題。第一個問題是，如同前面提到的，娛樂業務的三個領域，總計、收入和超額部分佔54%，三個領域加起來。這個數字仍然很高。您之前提到了下一個MLP，您希望這三個領域在總收入中所佔的比例是多少？現在中國經濟放緩，您在I&SS報告中已經提到了。這對其他領域有什麼影響？例如，中國的消費支出一直相當疲軟。那麼這對索尼集團的整體業務有什麼影響呢？

Thank you very much for your question. And so I would like to answer the 2 questions. And as for entertainment, 3 segments combined, the operating income, what is our plan to reach the certain percentage? That -- and we do not have any target in terms of the percentage. But 3 segments: Entertainment, the segments combined, and also I&SS where the growth is expected. So comprehensively, I believe that the percentage or the portion of the profit earned by those segments will increase.

非常感謝您的提問。我想先回答這兩個問題。至於娛樂業務，我們三個部門合併後的營業收入，我們計劃達到多少比例？目前我們還沒有設定具體的百分比目標。但娛樂業務、綜合業務以及I&SS業務預計會實現成長，這三個部門是值得考慮的。所以綜合來看，我相信這些部門的利潤佔比或份額會增加。

And the second question is other than I&SS, what is the slowdown of Chinese economy on other segments? And for the consumer spending, the ET&S will be affected. The TV and smartphones are areas where -- which is severely impacted. But currently, as far as FY '23 is concerned, the slowdown in China since there is a great concern about that, so our plan is made quite conservatively. And therefore, management itself has been going quite well. But on the other hand, as for the camera, the market, which is quite -- performing quite well, and under COVID, the activities have been restricted in the past. But there is a very good demand in this area. So we would like to reap the profit as early as possible in this area. That's all.

第二個問題是，除了資訊科技和服務（I&SS）之外，中國經濟放緩對其他領域有何影響？就消費支出而言，電子技術和服務（ET&S）將受到影響。電視和智慧型手機是受影響最嚴重的領域。但就目前而言，就2023財年而言，由於人們對此非常擔憂，中國經濟放緩，所以我們的計畫制定得相當保守。因此，管理本身進展順利。但另一方面，相機市場表現相當不錯，在新冠疫情期間，過去的活動受到了限制。但這個領域的需求非常旺盛。因此，我們希望盡快在這個領域實現盈利。就這樣。

Now we'd like to move on to the next question (Operator Instructions) [Abe-san] from (inaudible) Industry Delhi.

現在我們想轉到下一個問題（操作員指示）[Abe-san]，來自（聽不清楚）工業德里。

I'm Abe from Industry Delhi (inaudible). Can you hear me?

我是來自德里工業部的阿貝（聽不清楚）。你聽得到我說話嗎？

Yes, I can. Thank you.

是的，我可以。謝謝。

Related to the question asked earlier, ET&S segment. Digital camera is the area that I have a question. The sales unit increased, which relatively increased profit. By regions, can you explain, for example, year-on-year basis growth rate? Can you enlighten me?

與之前關於ET&S部門的問題相關。我有一個問題是關於數位相機的。銷售單位增加了，利潤也相應增加了。您能否按地區解釋一下，例如同比增長率？能否解釋一下？

In addition, in this area, Chinese market, you said that there is a robust market demand in China. Going forward, do you expect robust demand will continue in the Chinese market? What is your view of the Chinese market and the demand in the market in China?

此外，您提到中國市場需求強勁。展望未來，您預期中國市場需求會持續強勁嗎？您對中國市場及其需求有何看法？

Thank you very much for your question. ET&S segment, digital camera increased in the number of units sold, and what is the breakdown by regions was your question. In the first quarter, camera body and lens both are doing well. By regions, China and Asia, the sales has been very robust. And Europe and U.S., full on, the competition with others is getting more severe. So in some areas, there is some slight decline in share. But we are making additional investments such as sales promotion, and we are expecting our share to increase. Going forward, we should not be optimistic, and we have to be prepared for the possible slowdown of the market. And we have to invest for new products, and also we'll be controlled in both production and sales.

非常感謝您的提問。 ET&S部門的數位相機銷售量有所成長，您問的是按地區細分的情況。第一季度，相機機身和鏡頭都表現良好。按地區來看，中國和亞洲的銷售非常強勁。而在歐洲和美國，與其他市場的競爭日益激烈，因此在某些地區，市佔率略有下降。但我們正在加大投資，例如促銷，預計市佔率會上升。展望未來，我們不應過於樂觀，必須為市場可能出現的放緩做好準備。我們必須加大對新產品的投資，同時控制產量和銷售量。

We'd like to entertain next question. Kyodo Tsushinsha, [Endo-san], please.

我們想回答下一個問題。有請共同通信社的遠藤先生。

Endo from Kyodo Tsushinsha, I hope you can hear me. I have one question about camera. The sales are going up because after the COVID-19, there's some maybe the repercussion after the -- that for the people troubling again, that they like to use more digital camera. Is that the new demand? Linked to the COVID-19 and the pandemic, how the demand is increasing after the COVID-19 pandemic?

共同通信社的遠藤先生，希望您能聽我說。我有一個關於相機的問題。相機銷量上漲是因為新冠疫情之後，或許還有一些後續影響——對於那些再次陷入困境的人來說，他們更喜歡使用數位相機。這是新的需求嗎？與新冠疫情和疫情相關，新冠疫情之後的需求是如何成長的？

Thank you for the question, as I said, there's maybe reaction after the COVID-19 pandemic. Let us say at one time, demand was down. That's a fact. So people now have the pent-up demand. So last year, already -- that the people already bought lots of cameras after that. So the strength of demand is still persistent, which is a great pleasure. We have a continuing demand. From a macroscopic standpoint that the traveling demand is going up, people spend more money on traveling, vacations and so on, I suppose. So that might have a good impact on that demand.

謝謝你的提問，正如我所說，新冠疫情之後可能會出現一些反應。比如說，需求一度下降。這是事實。所以現在人們有被壓抑的需求。去年之後，人們已經購買了許多相機。所以需求仍然強勁，令人欣慰。我們有持續的需求。從宏觀角度來看，旅行需求正在上升，我想人們在旅行、度假等方面的支出也會增加。這可能會對需求產生正面的影響。

So we'd like to move on to the next question. (Operator Instructions)

我們想繼續下一個問題。 （操作員指示）

[Nishida-san], who is a freelancer, please go ahead.

[西田先生] 是一名自由工作者，請繼續。

Can you hear me?

你聽得到我嗎？

Yes, I can hear you, please.

是的，我聽得到你的聲音。

I have 2 questions, and the first point is about game business. The third party, the application has increased. How do you assess this? Do you think that this trend will be here to stay? Or do you think that you need more efforts to promote this? And so that is related to that. In your document, PlayStation Plus, the number of user, there is a change in the disclosure conditions. So is there any reason for that?

我有兩個問題。第一點是關於遊戲業務的。第三方應用的數量有所增加。您如何看待這一點？您認為這種趨勢會持續下去嗎？還是說您需要付出更多努力來推動這種趨勢？這與此相關。在您的檔案中，PlayStation Plus 的使用者數量揭露條件有所變化。這其中有什麼原因嗎？

And secondly, about Pictures, particularly for drama, the streaming service overseas, is there any other impact of the fluctuation of the overseas market in this area?

其次，關於影視，特別是電視劇，在海外的串流服務方面，海外市場的波動對這領域還有其他影響嗎？

Thank you very much for your question. The Game & Network Service that you are talking about, the increase of third-party titles, and I think your question is about our assessment on that. And during the first quarter, the new title from the third party, we have a very strong ones. And so in a software, the overall year-on-year, there has been increased revenue from this. So of course, on our part, the strong titles, the third-party titles should continue to prosper. And as a platform, we are very happy about it. And first-party titles and our new titles, because of the release timing, there has been the reduced sales year-on-year. But not only the third-party titles, but we would like to make greater efforts for the first-party titles.

非常感謝您的提問。您提到的遊戲及網路服務，以及第三方遊戲的成長，我想您的問題與我們對此的評估有關。第一季度，我們第三方新遊戲的銷售非常強勁。因此，軟體整體營收年增。當然，就我們而言，強勁的第三方遊戲應該會繼續蓬勃發展。作為一個平台，我們對此感到非常高興。至於第一方遊戲和我們的新遊戲，由於發佈時間的原因，銷量較去年同期有所下降。但不僅僅是第三方遊戲，我們也希望在第一方遊戲上做出更大的努力。

And your second question is about PS Plus and the change of the assumption about disclosure conditions. And about PS Plus, we just ceased to announce a review and the disclosure. And also, there has been some expansion of disclosures. So Matsuoka-san will cover this point.

您的第二個問題是關於PS Plus以及揭露條件假設的變化。關於PS Plus，我們剛剛停止了審核和揭露。此外，揭露範圍也得到了一些擴展。松岡先生將就這一點進行討論。

And FY '22 in June, there was renewal. And after that, the PS Plus, in addition to the greater number of the subscribers moved to the more attractive titles with the increase in app. So we have been expanding the PS Plus business. So extra and premium, we would like to continue to promote the shift. In order -- and in order to do so, we would like to increase the service appeal. And on this basis, we are able to confirm the growth through network services expansion. And so we stopped the disclosing, the number of subscribers as a result.

2022財年6月，我們進行了續約。之後，隨著PS Plus應用程式的增多，越來越多的訂閱用戶轉向了更具吸引力的遊戲。因此，我們一直在擴展PS Plus業務。對於額外付費和高級付費用戶，我們希望繼續推動這項轉變。為了做到這一點，我們希望提升服務的吸引力。在此基礎上，我們能夠透過網路服務的擴展來確認成長。因此，我們停止了揭露訂閱用戶數量。

And what are included in others? That is software sales other than PS Plus. They will be newly released. So in this area, the multi-platform will be covered, including PC. So we would like to promote this. So with additional disclosure, I hope that we can give an update about our progress.

那麼「其他」包含哪些內容呢？指的是PS Plus以外的軟體銷售。這些軟體都是新發布的。因此，這方面將涵蓋多平台，包括PC。我們希望推廣這一點。我希望在披露更多資訊後，能夠更新我們的進展。

And about the Pictures, in your second question, drama streaming, is there any -- the impact of overseas market? And so overall, the business environment surrounding this area is that in overseas theatrical market, there are many tent-pole, the films released. So they become very active. But as a result of strike, the major studios, the productions have been actually delayed in major studios. And so there is some concern about advertising. So the theatrical, the business, after July, we have to pay close attention. And there is the competitive environment among the streamers. And so the content investment of those players may not decrease immediately. But as a result of the strike, there will be the change of the schedule about the production. And therefore, the future development since impact will be -- will emerge. From now, we'd like to pay attention to that.

關於影業，你的第二個問題，電視劇串流媒體，海外市場會有什麼影響嗎？總體而言，該領域的商業環境是，在海外影院市場，有許多主打電影上映，所以它們非常活躍。但由於罷工，主要電影公司的製作實際上已經被推遲了。因此，廣告方面存在一些擔憂。所以，7月之後，我們必須密切注意戲院業務。串流媒體平台之間的競爭環境也比較激烈。這些平台的內容投資可能不會立即減少。但由於罷工，製作時間表將會改變。因此，未來的影響將會顯現。從現在開始，我們會持續關注這一點。

Time is running short. So the next will be the last question. (Operator Instructions) [Kutsumi-san] from Nikkei Newspaper, please.

時間不多了。接下來是最後一個問題。 （接線員指示）請日經新聞的[久木先生]發言。

Kutsumi from Nikkei. Can you hear me?

日經新聞的久木。你聽得到我說話嗎？

Yes, we can, please?

是的，可以，可以嗎？

One question. PS5 sales, the -- you said that the actual is lower than the forecast. What is the reason for lower-than-expected sales, the sluggish personnel spending or other -- the users went to other game hardware? Can you please explain the reasons?

問一個問題。您說 PS5 的實際銷售量低於預期。銷售低於預期的原因是什麼？是員工支出低迷，還是其他原因？用戶轉向了其他遊戲硬體？您能解釋一下原因嗎？

Thank you for your question. First quarter sales were 3.3 million units, slightly lower than the expectation. But from last year, 38% increase. We also believe that the demand is strong, and promotion itself was rather limited. In view of the profitability, we limited promotion activities and slightly weak. So starting from July in some regions, we have started the promotion on full-fledged basis. So the sell-through, we are looking at the sell-through, and we are seeing good signs already. So in view of the seasonality of the sales, the first quarter, slightly less than the target. But. On a fiscal year basis, especially calendar year-end, by that time, we believe that there is ample possibility for us to catch up. Especially towards the third quarter, we will be increasing the number of sales, and it's important to increase the sales. And we will aim to achieve the target.

感謝您的提問。第一季銷售量為330萬台，略低於預期。但與去年同期相比，成長了38%。我們也認為需求強勁，但促銷活動本身相當有限。考慮到獲利能力，我們限制了促銷活動，力度略弱。因此，從7月開始，我們在某些地區全面啟動了促銷活動。我們正在關注銷量，目前已經看到了一些積極的跡象。考慮到銷售的季節性，第一季的銷售量略低於目標。但是，從財年來看，尤其是到年底，我們相信到那時我們有足夠的機會趕上目標。尤其是在第三季度，我們的銷量將會增加，提高銷量非常重要。我們將力爭實現目標。

Thank you very much. Now it is time for us to end this media Q&A session. Thank you very much. The Q&A session for the analyst and investors will start at the 4:50.

非常感謝。現在我們結束本次媒體問答環節。非常感謝。分析師和投資人問答環節將於4:50開始。

Thank you very much for waiting. Let us now start this Q&A session for the investors and analysts. I would like to serve as the MC. I am [Kondo] of the Finance and IR Group member. The speakers are the same as the media. Session, the photos are shown on this PowerPoint slide. So I we'd like to now entertain questions and comments from the analysts and so on. (Operator Instructions)

非常感謝大家的等待。現在開始投資人和分析師的問答環節。我想擔任主持人。我是財務和投資者關係小組成員[近藤]。發言者與媒體嘉賓相同。會議照片已在這張PowerPoint投影片中展示。現在，我想回答分析師等的提問和評論。 （操作員指示）

First, from Morgan Stanley, please.

首先有請摩根士丹利的代表。

I'm Ono of Morgan Stanley. My question is about games and the other one is I&SS. So I have 2 questions. First of all, that throughout the year that you have the annual plan for Game & Network Services systems, and the JPY 7 billion is something that -- JPY 270 billion, so actually, that it's only JPY 10 billion. So that software, of course, the third party is a focus. So you had an analysis of flat, but you have raised that plan. And so there might be some impact, maybe the upside of this sales figure. However, this is only that level of the profitability you achieved. So maybe hardware promotion was accumulated and maybe that's the result. But what is the size and scale you're expecting to have some hint for the total scale you'd be achieving?

我是摩根士丹利的小野。我的問題是關於遊戲的，另一個是關於I&SS的。我有兩個問題。首先，你們全年的遊戲和網路服務系統年度計畫是70億日元，實際上是2700億日元，所以實際上只有100億日元。所以軟體，當然，第三方軟體也是重點。你們之前對銷售額持平進行了分析，但後來提高了這個計畫。所以這可能會帶來一些影響，或許是銷售額的上行空間。但是，這只是你們實現的獲利水準。也許硬體促銷是累積的，也可能是結果。但是，您預計的規模和規模是多少？這對你們最終實現的整體規模有什麼暗示嗎？

The second part of the question is I&SS. Previously you showed the outlook for the downward turn, lowered the revenue and income. So the production costs are very high and that is a very challenging situation, which the expense is regarded as -- and expected to be very high. On the other hand, China is another place where the mid- to low range of the smartphones, that the price reduction has to be implemented in China. So the additional JPY 20 billion downward adjustment was done. But what is -- is a change taking place to influence that balance? Those are 2 parts of the questions.

問題的第二部分是關於I&SS。之前您提到了下滑的前景，降低了收入和利潤。因此，生產成本非常高，這是一個非常具有挑戰性的情況，費用被認為——而且預計會非常高。另一方面，中國是另一個中低階智慧型手機的產地，因此必須在中國實施降價。因此，額外下調了200億日圓。但是，究竟發生了什麼變化來影響這種平衡呢？這是問題的兩個部分。

Thank you very much for your question. The first one, about the Game & Network Services related question. Throughout the year, what is our annual plan and how should we interpret our annual plan? Maybe that's the gist of your question. But in terms of profitability, what you said is right. Third-party software, the good sales in the first quarter is reflected in there. In the second quarter and afterwards, the sales plan was adjusted upward. So that is one impact. And the other one is the foreign exchange rates, that we have revised it to the weaker yen situation. So that would push up these sales. On the other hand, what was about operating income? The third-party software sales are going up. And then of course, the profit will be pushed up by that. But the first-party titles, the sales launch was delayed, postponed. And there's some postponement from this fiscal term to the next term. So that was taken into account in that adjustment.

非常感謝您的提問。第一個問題是關於遊戲和網路服務相關的。全年來看，我們的年度計畫是什麼？我們該如何解讀這些計劃？也許這就是您問題的要點。但就獲利能力而言，您說的沒錯。第三方軟體第一季的良好銷售業績反映在其中。第二季及之後，我們上調了銷售計劃。這是一個影響。另一個影響是匯率，我們已經根據日圓貶值的情況進行了調整。這會推高這些銷售額。另一方面，營業收入方面呢？第三方軟體銷售額正在成長。當然，利潤也會因此成長。但第一方遊戲的發售計畫被延後了。從本財年到下財年，銷售計畫有所延後。所以在調整中已經考慮到了這些因素。

Another factor is the promotion and other activities. There is no major change to the promotion plan. However, some part of that, because there was original channel mix that is direct sales versus the so-called the other sales channels and that kind of sales, so the sales channel mix -- compared to our original forecast, rather than the direct sales, I think the other ones going through the retail shops and the dealers, I think that proportion is likely to increase more. So you have -- we have to pay margin for that. So that margin has to be taken into account in the changed sales channel mix. But overall, that part means this -- how to calculate and estimate this expense there, and we are quite conservative. But the 15 million units is -- 25 million units is something that we have set as a target. We would like to really achieve that target, and our intention is taken into account in this revised plan.

另一個因素是促銷和其他活動。促銷計劃沒有重大變化。但是，由於最初的通路組合是直銷，而不是所謂的其他銷售管道，所以與我們最初的預測相比，銷售通路組合中，除了直銷之外，我認為透過零售店和經銷商的銷售佔比可能會更高。所以，我們必須為此支付保證金。因此，在調整後的銷售管道組合中，必須將這部分保證金納入考量。但總的來說，這部分意味著如何計算和估算這方面的費用，我們對此持相當保守的態度。但1500萬台——2500萬台是我們設定的目標。我們希望真正實現這個目標，我們的意圖也體現在修訂後的計畫中。

Another factor, the second part of your question about I&SS related question. Of course, there is some production cost increase, that was an impact. And then in China, the smartphone momentum is being changed. But these are 2 factors which have to be considered and taken into account. That is to say, as of April, we announced the outlook and there's a change. The production expense compared to the original plan has increased slightly. So that increased production cost was taken into account. But no, I think we have considered fully all the potential increase. And in China, as of April -- compared to the April outlook, the current outlook in the smartphone market, the recovery is more likely to be delayed. So that was also taken into account. So these are the factors which are again added to revise this current plan. Thank you.

另一個因素，也就是您問題的第二部分，關於I&SS相關的問題。當然，生產成本有所上漲，這確實會造成影響。此外，在中國，智慧型手機的勢頭也發生了變化。但這兩個因素都必須考慮在內。也就是說，截至4月份，我們公佈了預期，但有一個變化。與原計劃相比，生產費用略有增加。因此，生產成本的增加已被考慮在內。但我認為，我們已經充分考慮了所有潛在的成長。在中國，截至4月份，與4月份的預期相比，智慧型手機市場的復甦可能會有所延遲。這些因素也被考慮在內。因此，這些因素再次被添加到修訂當前計劃中。謝謝。

So we would like to move to the next question. Hirakawa-san from BofA Securities, please.

那我們想進入下一個問題。有請美銀證券的平川先生發言。

My name is Hirakawa from BofA. I have 2 questions. The first is about semiconductor. And previously, for the announcement from January to March, so at the end of the quarter, that will be higher than year-on-year. But the market condition is worse than your April forecast. So is there any change about your strategy? And the -- well, the reason for the March FY '23, why you are quite optimistic? And for Pictures, because of negotiation, it's not easy for you to reveal your strategy about the Pictures. And so strike, how to deal with strikes of writers and the actors? How do you incorporate the impact into your -- the financial results at this moment?

我叫平川，來自美國銀行。我有兩個問題。第一個是關於半導體的。先前公佈的1月到3月的業績，也就是本季末的業績，會高於去年同期。但目前的市場狀況比你4月的預測還要差。那麼，你的策略有什麼改變嗎？為什麼你對2023財年3月的業績如此樂觀？至於影視業務，由於談判的原因，你不太容易透露你的策略。那麼，如何應對編劇和演員的罷工呢？你如何將這些影響納入目前的財務表現？

Thank you very much for your question. And first is I&SS. The first quarter -- at the end of first quarter, the inventory level and about it, if I may explain, as a result of sales expansion, that has increased. And also, there is some downside of -- the downward revision of sales during the first quarter. And for the future outlook, logic and sensor, strategic inventory will decline towards the end of the year. But inventory amount itself, the sales has been expanding. So FY'23 -- at the end of FY '23, compared to the end of FY '22, it is expected to increase. There is no change in this forecast. But I should say that basically, as a result of sales expansion, this is increased as a result of sales increase. And so it does not mean that we have excessive inventory. And we have to pay close attention to the quality of inventory, but to a certain extent, we'll keep inventory under control. And we have to effectively utilize the equipment and have appropriate timing for the investment.

非常感謝您的提問。首先是I&SS。第一季——第一季末，庫存水準有所上升，請容我解釋一下，這是由於銷售額擴張導致的。此外，第一季銷售額的下調也帶來了一些負面影響。展望未來，邏輯和感測器業務的策略性庫存將在年底前下降。但庫存量本身，也就是銷售額一直在成長。因此，與2022財年末相比，2023財年末的庫存量預計會增加。這個預測沒有改變。但基本上，由於銷售額擴張，庫存量增加。所以這並不意味著我們的庫存過剩。我們必須密切注意庫存質量，但在一定程度上，我們會控制庫存。我們必須有效運用設備，並掌握投資時機。

And what is the reason we are optimistic about FY '24? And the reason is that the demand for the image sensor, we do not think that we make wrong assumption about it. And the issue is -- that pertains to the manufacturing cost or excessive, the inventory of -- our competitors' inventory in China, so as a result, decline of ASP. So that has adversely impacted the profitability. And as for the business, the volume itself, our forecast is not quite incorrect. And so that is the reason we are quite optimistic about FY '24.

我們對2024財年持樂觀態度的原因是什麼？原因在於對影像感測器的需求，我們認為我們對此的預測沒有錯。問題在於製造成本，或者說我們競爭對手在中國的庫存過多，導致平均售價下降，對獲利能力產生了不利影響。至於業務，就銷售而言，我們的預測並不算錯。這就是我們對2024財年非常樂觀的原因。

And your second question about Pictures. About this fiscal year, under our assumption, we have actually incorporated our assumption into the forecast. And for the details, very difficult for me to share the details with you. But in terms of profitability, the impact on this fiscal year's business is relatively limited because business turnover is long for the motion pictures industry. And therefore, that is the reason that we forecast this way.

您的第二個問題是關於電影業務的。關於本財年，根據我們的假設，我們實際上已經將我們的假設納入了預測中。至於具體細節，我很難與您分享。但就獲利能力而言，由於電影業的營業額週期較長，因此對本財年業務的影響相對有限。因此，這就是我們做出此預測的原因。

Moving on, JPMorgan Securities, Ayada-san, please.

接下來有請摩根大通證券的 Ayada 先生。

Ayada From JPMorgan. I have 2 questions, if I may. The first question about game. Earlier, full year profit increased, as explained. The first quarter, profit changed. Can you elaborate on the first quarter? Compared to last year, JPY 3.6 billion decrease, and excluding FX impact, about JPY 6 billion decrease. In your explanation, you talk about Bungee expense is negative JPY 16.6 billion, and positive side, software increased add-on point about JPY 80 billion. So the software increase and there's contribution to profit, the change of the sales channel was explained as well. On the other hand, the profitability of software seems to be deteriorating. In the current quarter, the sales of software is large, but mainly older titles are sold. So the content of the software sales, can you explain that? That's my first question.

來自摩根大通的Ayada。請容許我問兩個問題。第一個問題是關於遊戲的。之前解釋過，全年利潤有所成長。但第一季的利潤有所變動。您能詳細解釋一下第一季的情況嗎？與去年相比，第一季利潤減少了36億日元，剔除外匯影響後，減少了約60億日圓。在您的解釋中，您提到Bungee的支出為負166億日元，而軟體業務的附加收入增加了約800億日元。所以軟體業務的成長對利潤有所貢獻，銷售管道的變化也得到了解釋。另一方面，軟體業務的獲利能力似乎正在下降。本季，軟體銷量很大，但主要還是老遊戲。您能解釋一下軟體銷售的具體內容嗎？這是我的第一個問題。

My second question, I&SS. Full year, downward revision, JPY 20 billion. And the breakdown of this downward revision with FX, about JPY 50 billion positive, I believe. So negative side, 70 -- around JPY 70 billion impact is there. On the negative side, the breakdown, the sales forecast is revised downside, and this is about half of the total, about JPY 30 billion to JPY 40 billion, and then the increase in the expenses of mass production launch, about JPY 30 billion to JPY 40 billion. So the magnitude of the increase in expenses, can you please elaborate? These are my 2 questions.

我的第二個問題，I&SS。全年銷售額下調了200億日圓。考慮到外匯因素，我認為下調後的銷售影響約為500億日圓。因此，負面影響約為700億日圓。負面方面，銷售額預測下調了，約為總額的一半，約300億至400億日圓。此外，量產啟動費用也增加了，約300億至400億日圓。能詳細說明一下費用增加的幅度嗎？這是我的兩個問題。

Thank you very much for your questions. Your first question, first quarter profit increased -- or decreased and the breakdown for that. Profitability itself basically is not changing so much according to our analysis. First quarter -- the factor for the first quarter, first, M&A-related expenses, acquisition-related expense. And then Bungee acquisition, and this is on a full consolidated basis now, so the cost related to full consolidation of Bungee. In the first quarter, the breakdown I have not explained, on a full fiscal year, about JPY 68 billion, M&A-related expense and expenses for full consolidation, combined, we are looking at that number for your reference.

非常感謝您的提問。您的第一個問題是，第一季利潤是增加了還是減少了，以及具體情況。根據我們的分析，獲利能力本身基本上沒有太大變化。第一季－首先是第一季的因素，併購相關費用，收購相關費用。然後是Bungee的收購，這是完全合併後的，所以成本與Bungee的完全合併有關。第一季的明細，我沒有解釋，在整個財年中，大約有680億日元，包括併購相關費用和完全合併費用，我們正在查看這個數字供您參考。

And then your second question, I&SS. As you pointed out, the impact of the reduced revenue and the expenses related to launch of the mass production of new products, these are negative factors. And the positive factor is exchange rate, as you pointed out. The breakdown, we are not disclosing the breakdown. So it's very difficult for me to explain. But I would say, image sensors for mobile decreased in revenue and industrial social infrastructure image sensors decreased in revenue. So not only for the mobile, but sensor -- image sensor itself is impacted by reduced revenue. That can be a hint for you to understand.

然後是你的第二個問題，I&SS。正如你所指出的，收入減少的影響以及與新產品量產相關的費用，這些都是負面因素。而匯率是正面因素，正如你所指出的。我們沒有揭露分項數據，所以我很難解釋。但我想說的是，行動影像感測器的收入下降了，工業社會基礎設施影像感測器的收入也下降了。所以不僅是移動影像感測器，影像感測器本身也受到了收入下降的影響。這可以給你一些提示，讓你更容易理解。

Thank you very much. (Operator Instructions) From Citigroup, Ezawa-san, please.

非常感謝。 （接線生指示）請接通花旗集團的 Ezawa 先生的電話。

I'm Ezawa of Citigroup Securities. I have a question, a semiconductor-related question. The inventory is to be lowered, reduced, and then the production expense, I think related to this production yield, but I think that will be improved. I understand in the future, and demand is likely to go up. There are 3 factors affecting the Q2, and later on, those are the important factors. Then if you separate this Q2 and the second half, I think the semiconductor is likely to improve markedly. But still the figure is still so low, or despite this, maybe the improvement of recovery might be delayed slightly. So during the second half, would that happen markedly? So could you please tell us the factors and background factors for your forecasting analysis?

我是花旗證券的Ezawa。我有一個與半導體相關的問題。庫存將會降低，生產費用也會降低，我認為這與產量有關，但我認為情況會有所改善。我理解未來需求可能會上升。影響第二季的因素有三個，這些是後期的重要因素。如果將第二季和下半年分開來看，我認為半導體產業可能會顯著改善。但目前的數據仍然很低，或者儘管如此，復甦的改善可能會略有延遲。那麼在下半年，這種情況會顯著改善嗎？您能否告訴我們您進行預測分析的因素和背景因素？

Thank you for your question. About I&SS, what is to do during the second quarter and the second half. When you split the 2 analysis, as to the second quarter, there's a seasonality influence. In other words, the demand is weak in Q2. So there is an emphasis on this second half so that the second half, I think, is emphasized mostly. That's how to read it.

謝謝你的提問。關於I&SS，第二季和下半年該做什麼？如果把兩季分開分析，就會發現第二季有季節性因素。換句話說，第二季的需求疲軟。所以重點放在下半年，我認為下半年才是重點。就是這樣理解的。

So from Mizuho Securities, Nakane-san, please?

那麼，請問瑞穗證券的 Nakane 先生可以嗎？

Nakane from Mizuho Securities. I have one question. For the game, PS5, now the sales is bit weak. But in the U.S. and Asia and Europe, what is the situation? And can you just share with promotion, 25 million is the target of unit sales according to Totoki-san. And so current exchange rate assumed to continue, there is some the gap of exchange rate. So I believe that for that portion, there is a deterioration of profit. If the exchange rate stays this way or a further depreciation of yen, installed base is important. So you put more emphasis on installed base than the current profitability? Or PS5, when you think about future profitability, if there is a major change in foreign exchange rate, you have a plan to change this. Now JPY 135 against the $1. And do you think that this is a conservative estimate?

瑞穗證券的 Nakane：我有一個問題。就遊戲 PS5 而言，現在銷量有點疲軟。但在美國、亞洲和歐洲的情況又是如何？能否分享一下促銷方面的狀況？十時先生表示，2,500 萬台是銷售目標。假設目前的匯率持續下去，匯率會有一定的波動。因此，我認為這部分利潤會下降。如果匯率維持這種水平，或日圓進一步貶值，安裝基數就很重要。所以您更看重安裝基數而不是目前的獲利能力？或者說，當您考慮 PS5 未來的獲利能力時，如果匯率發生重大變化，您是否有計劃進行調整。現在日圓兌美元匯率為 135 比 1，您認為這是一個保守的估計嗎？

Thank you very much for your question. For PS5, Game & Network Services segment, PS5, currently it's a bit weak. And what is the situation by regions is your question. And by regions, currently in Japan, the sales is strong, and the same holds true for Asia. And about North America, the response to the promotion is quite favorable. In United Kingdom, it's a bit weak, but Europe as a whole has been performing quite well. And that seems to be the current response. And our target of 25 million units, and so in light of the impact of foreign exchange rates, even we sacrifice profitability, whether we will put emphasis on installed base, that seems to be the heart of your question. And currently, of course, expansion of installed base is important, so we will continue to make efforts. But we do not make any extreme measures in order to achieve this. So the strength of demand and, of course, a certain level of profitability and expansion of installed bases, so those 3 factors must be well balanced. So the extreme promotion, as a result of extreme -- the promotion, even we acquire the subscribers are very difficult to follow that the trend. Therefore, we would like to use data-driven, the method approach, to make it appropriate level.

非常感謝您的提問。就PS5而言，遊戲和網路服務部門目前表現略顯疲軟。您問的是各地區的情況如何？就各地區而言，目前日本的銷售強勁，亞洲市場也同樣強勁。至於北美，促銷活動的反應相當不錯。英國的銷售量略顯疲軟，但歐洲整體表現良好。目前的情況似乎就是這樣。我們的目標是2500萬台，考慮到匯率的影響，即使我們犧牲盈利能力，我們是否會將重點放在安裝基數上，這似乎是您問題的核心。目前，擴大安裝基數當然很重要，所以我們會繼續努力。但我們不會為了實現這一目標而採取任何極端措施。因此，需求強勁，當然還有一定程度的獲利能力和安裝基數的擴大，這三個因素必須得到很好的平衡。極端推廣，由於極端推廣，即使我們獲得了訂閱用戶，也很難跟上這種趨勢。因此，我們希望使用數據驅動的方法，使其達到合適的水平。

Next person will be the last person, SMBC Nikko Securities, Katsura-san, please.

下一位就是最後一位，有請三井住友日興證券的桂先生。

Katsura from SMBC Nikko Securities. Can you hear me?

三井住友日興證券的桂先生，你聽得到我說話嗎？

Yes, we can.

是的，我們可以。

I would like to ask a question on the consolidated operating cash flow, excluding Financial Services segment. Full year, JPY 1.25 billion remains unchanged, a significant improvement as compared to last fiscal year. First quarter cash flow is negative, but as compared to last year, slight improvement. And going forward, how are you going to look at this? Can you please explain? That's the background.

我想問一個關於合併營業現金流（不包括金融服務部門）的問題。全年12.5億日圓維持不變，與上一財年相比有顯著改善。第一季現金流為負，但與去年相比略有改善。展望未來，您將如何看待這個問題？能否解釋一下？以上是背景狀況。

Inventory, ET&S, the inventory level is controlled, as you have explained. First quarter, G&NS and I&SS, slightly heavy inventory. Other factors? Full year operating cash flow is maintained. And as compared to 3 months ago, what are the plus and what are the minus negative factors, excluding Financial Services, consolidated cash flow?

庫存方面，ET&S，正如您所解釋的，庫存水準得到了控制。第一季度，G&NS 和 I&SS 庫存略高。其他因素？全年營運現金流保持穩定。與三個月前相比，不包括金融服務和合併現金流，有哪些利多和負面因素？

Hayakawa-san, please.

早川先生，有請。

I would like to respond to your question. First, the first quarter operating cash flow is minus JPY 80.7 billion. Year-on-year, you have made a comparison, but as compared to year-on-year, positive by JPY 90 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, JPY 1.25 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.

我想回答你的問題。首先，第一季的營業現金流為負807億日圓。你剛才做了同比比較，但與去年同期相比，正值900億日圓。第一季是負值。關鍵在於PlayStation 5庫存以及I&SS庫存，第一季和第二季的庫存略有增加。因此，基於這些庫存，現金流水準有所下降。但這是營運資本，尤其是PlayStation 5 Station 5，用於第三季的銷售，從而帶來現金回流。這是假設。因此，最終，今年（不包括金融服務）我們預測的1.25兆日圓保持不變。基本上，對於第一季的現金流量、營運資本，尤其是遊戲、PlayStation 5和I&SS庫存，這些都會產生影響。這是我們的分析。

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.

非常感謝大家。今天的2023財年第一季合併財務業績報告到此結束。我謹代表索尼集團公司，再次感謝大家的參與。

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[本記錄中的英文陳述由現場翻譯人員宣讀。 ]