索尼 (SONY) 2025 Q2 法說會逐字稿

(audio in progress) -- to start Sony Group Corporation's consolidated financial results announcement session. And my name is Okada. I'm with the Sony Group Corporate Communications.

（音訊進行中）－開始索尼集團公司的合併財務表現公佈會議。我的名字是岡田。我在索尼集團企業傳播部工作。

First, let me introduce the people on the stage. First, we have President, COO and CFO, Mr. Hiroki Totoki. And we have a Senior Vice President in Charge of Corporate Planning and Control, Lead of Group Diversity, Equity and Innovation and Support for Financial Services Business and Entertainment area, Ms. Naomi Matsuoka; and the Senior Vice President in charge of Finance and IR, Mr. Sadahiko Hayakawa; and also Sony Financial Group Inc. Corporate Executive Officer and CFO, Mr. Kazuhiro Yamada. These four will be presenting the 2024 second quarter actual and full year forecast and then have the Q&A session in total of 70 minutes.

首先，我來介紹一下台上的人。首先，我們有總裁、營運長和財務官，Hiroki Totoki 先生。我們還有一位高級副總裁，負責企業規劃和控制，負責集團多元化、股權和創新以及金融服務業務和娛樂領域的支持，Naomi Matsuoka 女士；以及負責財務和投資者關係的高級副總裁早川定彥先生；以及索尼金融集團公司執行長兼財務長 Kazuhiro Yamada 先生。這四位人士將介紹 2024 年第二季的實際情況和全年預測，然後進行總計 70 分鐘的問答環節。

Mr. Totoki, please.

十時先生，有請。

Okay. Thank you. Today Matsuoka-san, Hayakawa-san and Yamada-san will explain the contents shown here, and I will give a general summary at the end.

好的。謝謝。今天松岡老師、早川老師、山田老師對這裡的內容做了說明，最後我會進行概括性的總結。

Hayakawa-san, please.

早川同學，請。

Okay. Thank you. So consolidated sales, excluding the financial services segment for the quarter, increased 9% compared to the same quarter of the previous fiscal year to JPY2.9734 trillion. Operating income increased 57% to JPY389.3 billion, a record high for the second quarter and the first half of the fiscal year. Consolidated sales, including the financial services segment, increased 3% year-on-year to JPY2.9056 trillion. Operating income increased 73% to JPY451.1 billion, a record high for the second quarter. And net income increased 69% to JPY338.5 billion. The results by segment for the quarter are shown on the slide.

好的。謝謝。因此，本季的綜合銷售額（不包括金融服務部門）與上一財年同季相比成長了 9%，達到 2.9,734 兆日圓。營業收入成長57%，達到3893億日圓，創第二季和上半財年的歷史新高。包括金融服務部門在內的綜合銷售額年增 3%，達到 2.9056 兆日圓。營業收入成長 73% 至 4,511 億日元，創第二季歷史新高。淨利潤成長 69%，達到 3,385 億日圓。幻燈片上顯示了本季按部門劃分的結果。

Next, I will explain our consolidated results forecast for FY24 full year. Consolidated sales excluding the financial services segment have been increased slightly from the previous forecast to JPY11.800 trillion. Operating income is unchanged at JPY1.165 trillion, and operating cash flow has been increased JPY40 billion to JPY1.440 trillion.

接下來，我將解釋我們對 2024 財年全年綜合業績的預測。不包括金融服務部門的綜合銷售額較先前的預測略有增加，達到 11.800 兆日圓。營業收入維持在 1.165 兆日圓不變，營業現金流增加 400 億日圓至 1.440 兆日圓。

Consolidated sales including the financial services segment have been increased slightly from the previous forecast to JPY12.710 trillion. Operating income and net income are unchanged at JPY1.310 trillion and JPY980 billion, respectively. The full year forecast by segment is shown here.

包括金融服務部門在內的綜合銷售額較先前的預測略有增加，達到 12.710 兆日圓。營業收入和淨利潤保持不變，分別為 1.310 兆日圓和 9,800 億日圓。此處顯示了按細分市場劃分的全年預測。

Now I will move on to the explanation of the state of each business. The first is the G&NS segment. Sales for the quarter increased 12% year-on-year to JPY1.0715 trillion, primarily due to an increase in third-party software sales despite a decrease in hardware sales. Operating income increased 184% year-on-year to JPY138.8 billion, a new record high for this segment in the second quarter due to an increase in the profit of hardware, third-party software, and network services.

下面我就各個業務的情況進行說明。第一個是 G&NS 部分。該季度銷售額年增 12% 至 1.0715 兆日元，主要是由於儘管硬體銷售額下降，但第三方軟體銷售額的成長。由於硬體、第三方軟體和網路服務的利潤成長，營業收入年增184%至1,388億日圓，創該部門第二季新高。

We have increased the full year forecast for sales by 4% from the previous forecast to JPY4.490 trillion. Taking into account the results of the quarter, we expect operating income to increase 11% to JPY355 billion, a new record high for profit for this segment.

我們將全年銷售額預測較先前預測上調 4%，至 4.490 兆日圓。考慮到本季的業績，我們預計營業收入將成長 11%，達到 3,550 億日圓，創該部門利潤新高。

Now I will discuss the state of the business, starting from our platform business. The number of monthly active users across all PlayStation platforms in September increased 8% compared to the same month last year to 116 billion (sic - see Press Release, "million") account, making the eighth consolidated quarter of growth compared to the same period of the previous year. The total play time also increased 14% on compared to the same month last year and 11% on a cumulative basis since the beginning of the current fiscal year compared to the same period of the previous fiscal year, demonstrating steady growth for the platform.

現在我將從我們的平台業務開始討論業務狀況。9 月份所有 PlayStation 平台的每月活躍用戶數較去年同月增長 8%，達到 1,160 億（原文如此 - 參見新聞稿，“百萬”）帳戶，實現同比第八個季度的增長上一年的。總遊戲時長也較去年同月增長了 14%，自本財年開始以來累計較上一財年同期增長了 11%，顯示了該平台的穩定增長。

PS Plus is providing a stable base of earnings as sales on a US dollar basis increased 18% year-on-year. This is due to an increase in ARPU, primarily resulting from the shift to higher tiers of service and the impact of price revisions. As for third-party software, sales significantly grew due to contributions from solid franchise titles as well as hit new IP, including a new sports title and an action RGP title from China.

PS Plus 提供了穩定的獲利基礎，以美元計算的銷售額比去年同期成長了 18%。這是由於 ARPU 的增加，主要是由於向更高層級的服務的轉變以及價格調整的影響。至於第三方軟體，由於可靠的特許經營遊戲以及熱門新IP（包括來自中國的新體育遊戲和動作RGP遊戲）的貢獻，銷量顯著增長。

Next is the studio business. Astro Bot released on September 6 has received a Metacritic score of 94 and has garnered high praise from the gamer community. It is a hit, which has sold over 1.5 million copies in the nine weeks since its release. 37% of the users who purchased Astro Bot had not purchased a first-party title from us in the last two years.

接下來是工作室業務。9月6日發布的Astro Bot在Metacritic上獲得了94分的高分，並獲得了遊戲玩家社群的高度評價。該書大受歡迎，發行九週內銷售超過 150 萬份。購買 Astro Bot 的用戶中有 37% 在過去兩年內沒有從我們這裡購買第一方遊戲。

The percentage of younger age groups and families purchasing the title was much higher than other titles, and the title is contributing significantly to a widening of the user base through the acquisition of new users and the expansion of our title portfolio.

購買該遊戲的年輕群體和家庭的比例遠高於其他遊戲，而遊戲透過獲取新用戶和擴大我們的遊戲組合，為擴大用戶群做出了重大貢獻。

We launched two live services -- new two live service games this year. Helldivers 2 was a huge hit, while Concord ended up being shut down. We gained a lot of experience and learned a lot from both. We intend to share the lessons learned from our successes and failures across our studios, including in the areas of title development management as well as the process of continually adding expanded content and scaling the service after its release, so as to strengthen our development management system.

我們今年推出了兩款即時服務——新的兩款即時服務遊戲。《Helldivers 2》大受歡迎，而《Concord》最終被關閉。我們從兩者中獲得了很多經驗，也學到了很多。我們打算分享我們工作室的成功和失敗的經驗教訓，包括在遊戲開發管理方面，以及在發布後不斷添加擴展內容和擴展服務的過程，以加強我們的開發管理系統。

We intend to build on an optimum title portfolio during the current mid-range plan period that combines single-player games, which are our strengths and which have a higher predictability of becoming hit due to our proven IP with live service games that pursue upside, while taking on a certain amount of risk upon release. As the quarterly results show the platform business has strong momentum, and we expect to see stable expansion of user engagement and associated revenue growth in the second half and beyond.

我們打算在當前的中期計劃期間建立一個最佳的遊戲組合，將單人遊戲與追求優勢的即時服務遊戲結合起來，這是我們的優勢，並且由於我們經過驗證的IP而具有更高的熱門預測性，釋放後要承擔一定的風險。由於季度業績顯示平台業務勢頭強勁，我們預計下半年及以後用戶參與度及相關收入將穩定成長。

In the studio business, we expect sales and profits to decline in the second half of the fiscal year compared to the same period of last fiscal year when Marvel's and Spiderman 2 and Helldivers 2 were huge hits. However, we are making steady progress in the development of new titles and improving our live service game process, starting with Ghost of Yotei, which is a sequel to the smash hit Ghost of Tsushima. We plan to continue releasing major single-player game titles every year from next fiscal year onwards.

在工作室業務方面，我們預計本財年下半年的銷售額和利潤將比上財年同期有所下降，當時《漫威》、《蜘蛛人2》和《絕命毒師2》都大受歡迎。然而，我們在新遊戲的開發和改進我們的即時服務遊戲流程方面正在穩步取得進展，從《羊蹄之魂》開始，它是熱門遊戲《對馬島之魂》的續作。我們計劃從下一財年開始每年繼續發布主要的單人遊戲。

Next is the music segment. Sales for the quarter increased 10% year-on-year to JPY448.2 billion and operating income increased 12% to JPY90.4 billion, primarily due to an increase in live performance, merchandising and lines -- through license and then streaming revenues. Streaming revenue for the quarter increased 9% year-on-year for both recorded music and music publishing, a 5% and 6% increase, respectively, on a US dollar basis.

接下來是音樂部分。該季度銷售額年增 10%，達到 4,482 億日元，營業收入增長 12%，達到 904 億日元，這主要是由於現場表演、商品銷售和線路的增加——通過許可和流媒體收入。本季錄製音樂和音樂出版的串流媒體收入年增 9%，以美元計算分別成長 5% 和 6%。

The FY24 forecast remains unchanged from the previous forecast. We are expanding our business globally in markets where streaming is fast growing, such as emerging market including through digital music distribution and artist services provided by The Orchard and AWAL.

2024 財年預測與先前的預測維持不變。我們正在全球串流媒體快速成長的市場（例如新興市場）拓展我們的業務，包括透過 The Orchard 和 AWAL 提供的數位音樂發行和藝術家服務。

On the other hand, in countries and territories where streaming is more widespread, the consumption of a catalog music is increasing. For example, the share of consumption of catalog music released more than 18 months ago, reached 73% in the recorded music market in the United States.

另一方面，在串流媒體較為普遍的國家和地區，目錄音樂的消費正在增加。例如，18個多月前發布的目錄音樂的消費份額在美國錄製音樂市場中達到了73%。

Additionally, in the Spotify Global Top 200, the share of songs released more than 10 years ago has increased significantly from the less than 5% in the calendar year 2020 to more than 20% through the end of July 2024. This is primarily due to a shift in the age demographic of user to more mature age group in those countries and territories as well as younger listeners having more opportunity to consume major hit songs from the past due to discovery on social media platform.

此外，在 Spotify 全球 Top 200 中，10 多年前發布的歌曲所佔比例大幅上升，從 2020 日曆年的不到 5% 增加到截至 2024 年 7 月的超過 20%。這主要是由於這些國家和地區的用戶年齡結構向更成熟的年齡層轉變，以及由於社交媒體平台上的發現，年輕聽眾有更多機會消費過去的熱門熱門歌曲。

We have carefully selected and acquired evergreen music catalogs through investment or the signing of a licensing agreement. These music catalog assets serve as a stable earnings foundation for the long term, not only from the consumption of streaming, but also from the use in the media such as movies and advertisement. Additionally, by also acquiring names and image and likeness rights related to the music artists for some catalogs, we are pursuing additional monetization opportunities, like merchandising and experiential live events that use these rights.

我們精心挑選並透過投資或簽署授權協議的方式來獲得長青的音樂目錄。這些音樂目錄資產是長期穩定的收入基礎，不僅來自串流媒體的消費，也來自電影和廣告等媒體的使用。此外，透過取得某些目錄中與音樂藝術家相關的姓名、形象和肖像權，我們正在尋求額外的貨幣化機會，例如使用這些權利的商品推銷和體驗式現場活動。

Next is the pictures segment. The sales in the quarter decreased 11% year-on-year to JPY355.8 billion primarily due to a decrease in the number of television programs in part deliveries -- in part due to the impact of the strikes in the previous years. Operating income decreased 37% year-on-year to JPY18.5 billion, mainly due to the decline in sales.

接下來是圖片部分。該季度銷售額年減 11% 至 3,558 億日元，主要是由於部分交付的電視節目數量減少，部分原因是前幾年罷工的影響。營業收入較去年同期下降37%至185億日元，主要是因為銷售額下降。

For FY24, we forecast sales to decrease slightly from the previous forecast to JPY1.510 trillion and operating income to decrease 8% to JPY115 billion. We have revised downward forecast for the operating income from the previous forecast, primarily due to a revision in the results forecast of our India business in the media networks.

對於 2024 財年，我們預期銷售額將較先前的預測小幅下降至 1.510 兆日圓，營業收入將下降 8% 至 1,150 億日圓。我們下調了先前預測的營業收入預測，主要是因為我們調整了印度媒體網路業務的業績預測。

In motion pictures, It Ends With Us, a film adaptation of the best-selling novel released on August 9, generated box office revenues significantly exceeding our expectations and contributed to the result of the quarter. We are still recovering from the impact of the strikes, but the number of major films released after the end of the strike has been increasing, such as Bad Boys: Ride or Die, released in June; and Venom: The last Dance, released last month. We expect the television and video streaming services licensing revenues to recover from the second half of this fiscal year through the next fiscal year.

電影方面，8 月 9 日上映的根據暢銷小說改編的電影《我們結束了》的票房收入大大超出了我們的預期，為本季業績做出了貢獻。我們仍在從罷工的影響中恢復過來，但罷工結束後上映的主要電影數量一直在增加，例如6月份上映的《絕地戰警：乘車或死亡》；以及上個月發布的《毒液：最後的舞蹈》。我們預計電視和視訊串流服務授權收入將從本財年下半年到下一財年恢復。

The Crunchyroll is actively expanding its global user base, including partnering with Amazon Prime video channels and then signing a distribution agreement with the YouTube Primetime channels, where the service is scheduled to launch towards the end of the year. Moreover, we have begun streaming many new anime titles from the second half of this fiscal year and aim to further increase engagement with anime fans around the world.

Crunchyroll 正在積極擴大其全球用戶群，包括與 Amazon Prime 視訊頻道合作，然後與 YouTube Primetime 頻道簽署分銷​​協議，該服務計劃於今年年底推出。此外，我們從本財年下半年開始播放許多新的動漫作品，旨在進一步增加與世界各地動漫迷的互動。

Regarding our business in India, the operating environment is challenged primarily due to a softness in the ad market and then a decrease in viewers of pay television. However, under the new local management team that started in August, we are strengthening our operations and rebuilding our strategies to grow the business over the mid to long term, including continuing to improve viewership through restrengthening of our programming.

就我們在印度的業務而言，經營環境面臨挑戰，主要是因為廣告市場疲軟以及付費電視觀眾減少。然而，在八月上任的新本地管理團隊的領導下，我們正在加強我們的營運並重建我們的策略，以在中長期內發展業務，包括透過加強我們的節目繼續提高收視率。

Next is the ET&S segment. Sales for the quarter were JPY619.8 billion, essentially flat year-on-year. Operating income increased 15% year-on-year to JPY70.2 billion, mainly due to the favorable impact of foreign exchange rates and cost reduction effects. The FY24 forecast remains unchanged from the previous forecast. Major markets such as North America, Europe, China, and Japan remain generally stable during the quarter and then solid business operations enabled us to achieve operating income exceeding the same quarter of the previous fiscal year.

接下來是 ET&S 部分。該季度銷售額為 6,198 億日元，年比基本持平。營業收入年增15%至702億日圓，主要得益於匯率的利多影響及成本削減效應。2024 財年預測與先前的預測維持不變。北美、歐洲、中國、日本等主要市場本季整體保持穩定，穩健的業務營運使我們實現了超過上一財年同季的營業收入。

We continue to pay close attention to inventory control. And while -- overall segment sales remain essentially the same as in the same period of the previous fiscal year, we were able to reduce inventory by approximately 10% at the end of the quarter.

我們繼續密切關注庫存控制。雖然整體部門銷售額與上一財年同期基本相同，但我們在本季末將庫存減少了約 10%。

On the other hand, the imaging business, which significantly grew year-on-year in the first quarter and then June 30, 2024, mainly in China, was essentially flat year-on-year in the current quarter. As a result, we have incorporated into our forecast a proactive change to a more cautious production inventory plan in preparation for the year-end selling season.

另一方面，在第一季和2024年6月30日同比大幅成長的影像業務（主要在中國），本季同比基本持平。因此，我們在預測中納入了主動調整，採取更謹慎的生產庫存計劃，為年底銷售季節做好準備。

In the sports business, which is a growth access area, we are working to further expand our business opportunity by collaborating with the partners and incorporating new technology centered on Hawk-Eye, which provides a referee decision support solution based on the video data.

在體育業務這個成長領域，我們正在努力透過與合作夥伴合作，並結合以鷹眼為中心的新技術來進一步擴大我們的業務機會，鷹眼提供基於視訊數據的裁判決策支援解決方案。

On August 1, we announced technology partnership with NFL in the United States. Through this collaboration, we aim to advance the practical application of our cutting-edge sports-related technologies, such as using Hawk-Eye to assist referee decision, improving the accuracy of measuring key game metrics, such as yards gained, through the video data analysis.

8 月 1 日，我們宣布與美國 NFL 建立技術合作夥伴關係。透過此次合作，我們旨在推進尖端體育相關技術的實際應用，例如使用鷹眼輔助裁判決策，透過視訊數據提高測量關鍵比賽指標（例如增碼數）的準確性分析。

Also, on October 15, we completed the acquisition of the KinaTrax, a US company that uses high-precision motion capture technology and data analysis to provide support services such as those aimed at improving athlete performance. The company has a strong affinity with Hawk-Eye in terms of technology for acquiring highly reliable sports data, and we expect great synergy in terms of maximization of data accumulation and use. Although the sports business is not large in scale, we expect it to generate stable and high profits and aim to continue to focus on expanding it.

此外，10月15日，我們完成了對美國公司KinaTrax的收購，該公司利用高精度動作捕捉技術和數據分析來提供旨在提高運動員成績等支援服務。該公司與Hawk-Eye在獲取高可靠運動數據的技術方面有著很強的親和力，我們期望在數據累積和使用最大化方面產生巨大的協同效應。體育業務雖然規模不大，但我們預計將產生穩定、高額的利潤，並將繼續專注於拓展。

Next is the I&SS segment. Sales for the quarter increased 32% year-on-year to JPY535.6 billion, primarily due to increased sales of image sensors of mobile products and the impact of foreign exchange rates. Operating income approximately doubled year-on-year to JPY92.4 billion, primarily due to the benefit of the increased sales and the favorable impact of foreign exchange rates. For FY24, we forecast sales to decrease 4% from the previous forecast to JPY1.770 billion and operating income to decrease 9% to JPY250 billion.

接下來是 I&SS 部分。該季度銷售額年增32%至5,356億日元，主要由於行動產品影像感測器銷售額增加以及匯率影響。營業收入年增約一倍至924億日元，主要得益於銷售額增加和匯率的有利影響。對於 24 財年，我們預計銷售額將比先前的預測下降 4% 至 17.7 億日圓，營業收入將下降 9% 至 2,500 億日圓。

The global smartphone market continued its gradual recovery trend with positive year-on-year growth continuing in China and Europe and signs of recovery in the North America market. Mobile sensor sales during the quarter significantly increased due to an increase in unit prices resulting from larger die sizes and steady shipment of image sensors for new products to a major customer. This led to the segment overall recording its highest ever second quarter sales.

全球智慧型手機市場延續逐步復甦的趨勢，中國和歐洲持續年比正成長，北美市場出現復甦跡象。由於晶片尺寸增大以及新產品影像感測器向主要客戶的穩定出貨導致單價上漲，本季行動感測器銷售額顯著成長。這導致該部門整體第二季銷售額創下歷史新高。

On the other hand, with regard to the second half, we have downwardly revised our sales and profit forecast for mobile sensors to reflect a revision in the production plan of our major customer.

另一方面，就下半年而言，我們下調了行動感測器的銷售和利潤預測，以反映我們主要客戶生產計劃的修訂。

The introduction of AI functionality and services into smartphones, which is currently underway, may bring short-term volatility to the high-end market, depending on the speed of rollout and initial reasons. However, in the mid to long term, we expect that convenience brought by AI will make smartphone functionality more attractive, revitalizing the market and encouraging a shift to high-end products.

目前正在將人工智慧功能和服務引入智慧型手機，這可能會為高端市場帶來短期波動，具體取決於推出的速度和最初的原因。然而，從中長期來看，我們預期人工智慧帶來的便利性將使智慧型手機功能更具吸引力，從而重振市場並鼓勵向高階產品轉型。

On the production side, improvement in yields for mobile sensors are progressing as planned since the beginning of the fiscal year, and we expect to achieve normal run rate in the fourth quarter ending March 31, 2025.

在生產方面，自本財年開始以來，移動感測器產量的改善正在按計劃進行，我們預計在截至 2025 年 3 月 31 日的第四季度實現正常運作率。

Last is the Financial services segment. Financial services revenue for the quarter decreased JPY167.2 billion year-on-year to a negative JPY63.3 billion, primarily due to the impact of market fluctuations at Sony Life. This was due to the significant appreciation of the yen during the quarter, which led to a significant decrease in the yen-based valuation of the asset under management for the foreign currency-denominated insurance. However, since the valuation of liabilities declined in a similar manner, this did not have a significant impact on profitability.

最後是金融服務部門。本季金融服務收入年減 1,672 億日元，至負 633 億日元，主要是受到索尼人壽市場波動的影響。這是由於本季日圓大幅升值，導致外幣保險管理資產的日圓估值大幅下降。然而，由於負債估值以類似方式下降，這並未對獲利能力產生重大影響。

Operating income increased JPY50.1 billion year-on-year to JPY65.7 billion primarily due to the impact of interest rate fluctuations at Sony Life. Insurance service results at Sony Life, which are the baseload of profitability for the business, continued their stable trend at JPY49 billion. FY24 forecast remains unchanged from the previous forecast. Sony Life's new policy amount continues to be strong with the cumulative first half growth of 14% compared to the same period of the previous fiscal year.

營業收入較去年增加501億日圓至657億日圓，主要是由於索尼人壽利率波動的影響。索尼人壽的保險服務業績是該業務盈利的基礎，繼續保持穩定的趨勢，達到 490 億日圓。2024 財年預測與先前的預測維持不變。索尼人壽的新保單金額持續強勁，上半年累計較上一財年同期成長14%。

Preparations for the partial spinoff and the listing of Sony Financial Group Inc. planned for October next year are progressing smoothly. As a part of those preparations and in order to strengthen its governance and accelerate its decision-making, SFGI transitioned to a company with three committees corporate governance structure as of October 1.

索尼金融集團計劃於明年10月進行部分分拆和上市的準備工作進展順利。作為這些準備工作的一部分，為了加強治理並加快決策速度，SFGI 自 10 月 1 日起轉變為擁有三個委員會的公司治理結構。

Next, I will explain efforts to improve and stabilize our economic value-based solvency ratio, ESR, which is an important issue ahead of the listing. ESR is an indicator of financial softness of financial services business. It shows the level of capital relative to amount of risk calculated based on conservative assumptions after assets and liabilities are evaluated on an economic value basis.

接下來，我將解釋如何改善和穩定我們以經濟價值為基礎的償債能力比率（ESR），這是上市前的重要議題。ESR是金融服務業務財務軟弱程度的指標。它顯示了以經濟價值為基礎評估資產和負債後，根據保守假設計算出的資本水準相對於風險量的水準。

As shown on this slide, the ESR of SFG on a consolidated basis is within the target range. However, the high sensitivity of ESR to interest rate fluctuations is an issue for the life insurance business, and we are implementing measures to reduce sensitivity in terms of both capital and risk amount. With regard to capital, which is the numerator of ESR, the assets held on the balance sheet, such as our bonds, exceeded insurance liabilities, resulting in an overhead situation and a structure in which net assets decrease when interest rates rise.

如本投影片所示，SFG 的綜合 ESR 處於目標範圍內。然而，ESR對利率波動的高度敏感度是壽險業務的一個問題，我們正在採取措施降低資本和風險金額的敏感度。至於資本，即ESR的分子，我們的債券等資產負債表上的資產超過了保險負債，導致了管理費用的情況以及利率上升時淨資產減少的結構。

In order to correct this, we sold the portion of our yen-denominated bonds, so as to mitigate over-hedging, and we are currently undertaking transaction designed to curve capital fluctuations. The amount of risk, which is the denominator, also increases as interest rates rise. So we are working to refine our risk measurement methods and further improve our risk management. We have created a two- to three-year road map improving and stabilizing ESR, and we will continue to report on our progress and results.

為了糾正這個問題，我們出售了部分日元債券，以減少過度對沖，目前我們正在進行旨在緩解資本波動的交易。作為分母的風險量也會隨著利率上升而增加。所以我們正在努力完善我們的風險衡量方法，進一步完善我們的風險管理。我們制定了一個兩到三年改善和穩定 ESR 的路線圖，我們將繼續報告我們的進展和結果。

Finally, I would like to give you an overall summary. The key performance indicators for the entire Sony Group in the fifth Mid-Range Plan are the growth rate of the operating income of 10% or more and a three-year cumulative operating income margin of 10% or more, both on a consolidated basis, excluding the financial services segment.

最後我要為大家做一個整體的總結。第五中期計畫中整個索尼集團的關鍵績效指標是合併營業收入成長率達到10%以上，以及三年累計營業利益率達10%以上，不包括金融服務部門。

The consolidated result forecast for this fiscal year announced today predicts a new record-high operating income year-on-year, the growth rate of operating income of more than 10% and operating income margin of approximately 10%. We believe that we have gotten off to a good start in the first year of this midrange plan.

今天公佈的本財年綜合業績預測預計營業收入年比再創新高，營業收入成長率超過10%，營業利益率約10%。我們相信，在這個中期計劃的第一年，我們已經有了一個好的開始。

In the second half, there will be no major first-party software title releases in G&NS, and there will be an adjustment in demand from a major customer in I&SS. As a result of these and other factors, consolidated operating income, excluding the financial services segment, is expected to be slightly lower than the same period of the previous fiscal year. However, business momentum is currently good, particularly in the G&NS and music segment, we aim to produce solid results in order to achieve the targets of our mid-range plan.

下半年，G&NS不會有主要的第一方軟體發布，而I&SS的主要客戶的需求將會有所調整。由於這些和其他因素，不包括金融服務部門的綜合營業收入預計將略低於上一財年同期。然而，目前業務勢頭良好，特別是在 G&NS 和音樂領域，我們的目標是取得紮實的成果，以實現我們中期計劃的目標。

Moreover, under the mid-range plan, we aim to strengthen shareholders' return. And the cumulative amount of shares repurchased through the end of October out of JPY250 billion authorized this fiscal year was JPY237.1 billion. Amid the rapid changing business environment, we will continue to manage our business in a way that will enable us to achieve sustainable growth across the entire group, while addressing the various challenges that each business face.

此外，根據中期計劃，我們的目標是加強股東回報。截至10月底，本財年授權的2,500億日圓回購股份累計金額為2,371億日圓。在快速變化的商業環境中，我們將繼續以一種能夠使整個集團實現永續成長的方式管理我們的業務，同時應對每個業務面臨的各種挑戰。

That's all for my explanation.

這就是我的解釋。

So that was the presentation by Mr. Totoki, Ms. Matsuoka, Mr. Hayakawa, and Mr. Yamada. After this, from 04:25, we'll have Q&A session with media persons and the Q&A with investors and analysts will start at 04:50, and each session will last for 20 minutes.

以上就是十時先生、松岡女士、早川先生、山田先生的發言。之後，從04:25開始，我們將進行媒體問答環節，投資人和分析師問答環節將於04:50開始，每場問答時間為20分鐘。

(Event Instructions)

（活動須知）

(break)

（休息）

Thank you for waiting. Now I would like to start the Q&A. We'd like to respond to the questions from media people. And as was the case with the presentations, we have these four people who have made the presentations responding to your questions. Now I would like to start the Q&A.

謝謝您的等待。現在我想開始問答。我們願意回答一下媒體人士的提問。與演示的情況一樣，我們有這四位人士進行了演示，回答了您的問題。現在我想開始問答。

(Event Instructions) And first, we have Umegaki-san, Toyo Keizai. Umegaki-san, please.

（活動說明）首先有梅垣老師，東洋經濟。梅垣同學，請。

This is Umegaki of Toyo Keizai. I have two questions. First, ISS downward revision. The overall market is recovering, but the ISS is revising downward. What is the outlook for the next fiscal year? And smartphone has been getting image sensor becoming larger and larger. But isn't there any risk having a consolidated business with a large maker?

這是東洋經濟的梅垣。我有兩個問題。首先，ISS向下修正。整體市場正在復甦，但國際太空站正在向下修正。下一財年的前景如何？智慧型手機的影像感測器變得越來越大。但與大型製造商合併業務是否有任何風險？

And the next question is about the game business. Two years ago, in '22, Totoki-san mentioned about the issues. And then you have became risk management and then the cutback of the personnel and some studio closure as well. And how much of that reform has progressed as of now?

下一個問題是關於遊戲業務的。兩年前，也就是22年，Totoki-san曾提到這個問題。然後你就開始了風險管理，然後是人員的削減和一些工作室的關閉。截至目前，這項改革取得了多少進展？

Thank you for your questions. The first question about the I&SS. Second question was about game and network services. I will answer both questions. First about the I&SS. The market is set to be recovering, but it's very slow. So I think it is just provisional. And for this particular quarter, our customer has revised their production plan, and we followed our outlook revision downward, but there are different reasons for production adjustment. So it is part of the business as usual. And so it is not to impact the next fiscal year.

謝謝您的提問。關於 I&SS 的第一個問題。第二個問題是關於遊戲和網路服務。我將回答這兩個問題。首先是關於 I&SS。市場即將復甦，但速度非常緩慢。所以我認為這只是暫時的。對於這個特定的季度，我們的客戶修改了他們的生產計劃，我們也下調了展望，但生產調整的原因不同。所以這是正常業務的一部分。因此，這不會影響下一財年。

So as -- so we have not changed any forecast for the -- and also your comment about the risk of having a concentrated customer base. And that is not a new product challenge, and we hope to continue to work on expanding our customer base.

因此，我們沒有改變任何預測，以及您對擁有集中客戶群的風險的評論。這並不是一個新的產品挑戰，我們希望繼續努力擴大我們的客戶群。

And about the gaming, and we are in reform. We are not only changing the business structure, but also game development approach. We are taking a new look and also portfolio concept to be introduced. And regardless of the personnel, we have different cost cut in different areas. And also optimization of investment in sales and marketing. We are doing all these and as a combination, I think we got very good results.

關於遊戲，我們正在進行改革。我們不僅改變業務結構，也改變遊戲開發方法。我們正在以新的面貌和投資組合概念推出。而且無論人員如何，我們在不同領域都有不同的成本削減。以及優化銷售和行銷投資。我們正在做所有這些事情，作為一個組合，我認為我們取得了非常好的結果。

Now the question of to the extent -- what extent this reform has progressed? And this is a Kaizen improvement we need to continue to do, which we surely intend to do.

現在的問題是，這項改革進展到什麼程度了？這是我們需要繼續進行的一項 Kaizen 改進，我們當然也打算這麼做。

So let's move on to the next questions. Iwato-san from Nikkei Business.

那麼讓我們繼續討論下一個問題。來自《日經商業》的岩戶先生。

This is Iwato, from Nikkei Business. So I have one question with regards to game. In live service game, the current status, what do you make of that? And you have the huge hit and also you discontinued certain services. And basically, how do you -- are you managing the portfolio in terms of development?

我是日經商業新聞的岩戶。所以我有一個關於遊戲的問題。對於直播遊戲目前的現狀，您怎麼看？您受到了巨大的打擊，也停止了某些服務。基本上，您如何在開發方面管理投資組合？

Thank you very much for your question. But currently, we are still in the process of learning. And basically, with regards to new IP, of course, you don't know the results until you actually try it. So for us, for our reflection, probably, we need to have a lot of gates, including user testing or internal evaluation and the timing of such gates. And then we need to bring them forward, and we should have done those gates much earlier than we did.

非常感謝您的提問。但目前，我們還處於學習的過程中。基本上，對於新的IP，當然，只有親自嘗試之後才能知道結果。所以對我們來說，為了我們的反思，我們可能需要有很多門，包括使用者測試或內部評估以及這些門的時機。然後我們需要將它們推進，我們應該比我們更早完成這些大門。

And also, we have a siloed organization. So going beyond the boundaries of those organizations in terms of development and also sales, and I think that could have been much more smoother. And then going forward, in our own titles and then the third-party titles, we do have many different windows, and we want to be able to select the right and optimal window and so that we can deploy them our own platform without cannibalization so that we can maximize our performance in terms of title launches. That's all I have.

而且，我們有一個孤立的組織。因此，在開發和銷售方面超越這些組織的界限，我認為這可能會更加順利。然後展望未來，在我們自己的遊戲和第三方遊戲中，我們確實有許多不同的窗口，我們希望能夠選擇正確和最佳的窗口，以便我們可以將它們部署在我們自己的平台上，而不會相互蠶食我們可以在遊戲發布方面最大化我們的表現。這就是我所擁有的一切。

Next, we move on to the next question. From Nikkei, Omichi-san, please.

接下來，我們繼續下一個問題。來自日經新聞的大道先生，有請。

Omichi, from Nikkei. I have two questions. And the first question is that in the US, the election, Trump had a victory. So foreign exchange or the tariff, there will be change. How do you perceive the impact of his election on your business?

來自日經新聞的大道。我有兩個問題。第一個問題是，在美國大選中，川普取得了勝利。所以外匯或是關稅，都會有變動。您如何看待他的當選對您的業務的影響？

And this year, you actually acquired Pink Floyd or Queen -- the rights, and for the Michael Jackson, the IP of his music has been acquired by you. And so for those music, how -- what is the role, for instance, stable the revenue or synergy effect on other businesses, what is your expectation about those new business?

今年，你實際上收購了平克佛洛伊德或皇后樂團的版權，而對麥可傑克森來說，他的音樂IP已經被你收購了。那麼對於那些音樂來說，它的作用是什麼，例如穩定收入或對其他業務的協同效應，您對這些新業務的期望是什麼？

So first, the impact of US presidential election on our business. Second, with regard to music, Matsuoka-san will answer your question. And as regard to the impact of US presidential election on our part, we respect the choice of US public. And so that means that election results, how it impacts on the global economy or geopolitical situation? I'm not expert on that. And there are many experts on those areas. So we'd like to just depend on their analysis.

首先，美國總統大選對我們業務的影響。第二，關於音樂，松岡老師來回答你的問題。至於美國總統大選對我們的影響，我們尊重美國大眾的選擇。那麼這意味著選舉結果對全球經濟或地緣政治局勢有何影響？我不是這方面的專家。這些領域有很多專家。所以我們只想依賴他們的分析。

But when it comes to the impact on our own business, the United States has a very broad impact on the global economy and also has a very large geopolitical impact. And so of course, that will directly impact on our business. Therefore, we would like to observe the facts of the matter and make analysis about them, and we would like to look at the future and do what we are able to do.

但說到對我們自己企業的影響，美國對全球經濟有非常廣泛的影響，也有非常大的地緣政治影響。當然，這將直接影響我們的業務。因此，我們願意觀察事實、分析事實，著眼於未來，做我們所能做的事。

And when it comes to tariff issue, that has been very often discussed recently, but that is just a general discussion. And so we have to have a very accurate prediction, and we have to think about the optimum level of shipment, which country becomes a producer and what way we conduct shipment and how we are able to optimize our plan and how we're able to look at the pricing for that. And of course, we have been doing that, but we have to once again look at this and study this carefully.

至於關稅問題，最近經常討論，但這只是一般性討論。因此，我們必須有一個非常準確的預測，我們必須考慮最佳的運輸水平，哪個國家成為生產商，我們以什麼方式進行運輸，以及我們如何能夠優化我們的計劃以及我們如何能夠看到它的定價。當然，我們一直在這樣做，但我們必須再次審視這一點，仔細研究這一點。

So the second -- the question about music. Matsuoka-san will answer your question.

第二個問題是關於音樂的問題。松岡老師來回答你的問題。

Thank you for your question. And which catalog, we haven't identified particular catalogs. But those catalogs -- our plan to acquire them will contribute to the stable source of recurring income. And so that may generate the stable return. And so we have many use opportunities. And so we are able to create opportunities upside.

謝謝你的提問。至於是哪個目錄，我們還沒有確定具體的目錄。但這些目錄——我們購買它們的計劃將有助於穩定的經常性收入來源。這樣才能產生穩定的回報。所以我們有很多使用機會。因此我們能夠創造上升機會。

And for IP value of Sony as a whole. For instance, there is a likeness or image rights. So those are peripheral, the new -- the rights. And by acquiring those catalogs and across the Sony Group, we are able to expand the usage of catalogs. Therefore, in that sense, of course, we should have always disciplined approach and to look at the opportunities for acquisition of catalogs. Thank you.

以及索尼整體的智慧財產權價值。例如，有肖像權或肖像權。所以這些都是次要的、新的——權利。透過收購整個索尼集團的這些目錄，我們得以擴大目錄的使用。因此，從這個意義上說，我們當然應該始終保持紀律性，並尋找獲取目錄的機會。謝謝。

If I may supplement, that in my speech, as I mentioned, recently in the market, particularly in the streaming market, the service users and listeners, the age, the group has become more of a mature age group. In other words, evergreen music has been more of listened to by those groups. So for us, I believe that that is a very important asset. And the fact that we have evergreen catalogs, that also shows our attitude of commitment to the artist and therefore, through [A&L] activities. And so we would like to use it as the assets gave very good spin-off effects.

我補充一下，在我的演講中，正如我所提到的，最近在市場上，特別是在串流媒體市場上，服務的用戶和聽眾的年齡、群體已經變得更加成熟的年齡層。換句話說，這些群體更多地聆聽常青音樂。所以對我們來說，我相信這是一項非常重要的資產。事實上，我們擁有常青的目錄，這也表明了我們對藝術家的承諾態度，因此，透過 [A&L] 活動。所以我們想使用它，因為這些資產帶來了非常好的附帶效應。

Okay. Let's move to the next question. Furukawa-san of Bloomberg, please.

好的。讓我們進入下一個問題。有請彭博社的古川先生。

This is Furukawa of Bloomberg. I have two questions. First about the game business. This quarter, PS5 hardware, is that remained target 30 million units. It's unchanged? And Pro is released. So it will be -- some people say it will be difficult to have a wide user base with JPY120,000. What is the plan for sales of Pro as well? And the second, additional investment to (inaudible) Have you made the additional investment, if yes? And what is the reason for the additional investment?

我是彭博社的古川。我有兩個問題。首先是遊戲業務。本季度，PS5 硬體仍維持 3,000 萬台的目標。沒變嗎？Pro 也發布了。所以會這樣吧——有人說12萬日圓很難擁有廣泛的用戶基礎。Pro的銷售計畫是什麼？第二，額外投資（聽不清楚）您是否進行了額外投資（如果是）？追加投資的原因是什麼？

Thank you for the question. And the first question about the PS5 sales, 18 million units, is that unchanged? Short answer is yes, will remain. First quarter was slightly weaker than planned. In second quarter, pretty much at target, and that has been the actuals in the first half. For the second half of this fiscal year, we will have some sales promotion in our plan. And in the first half of the year, as that the -- we did not introduce a price reduction, which we had for PlayStation 4 in the past, so we have been able to sell through without the discount.

謝謝你的提問。第一個問題關於PS5的銷量，1800萬台，這個數字沒有改變嗎？簡短的回答是肯定的，將會保留。第一季略弱於計劃。第二季幾乎達到了目標，這也是上半年的實際情況。本財年下半年，我們的計畫中將會有一些促銷活動。今年上半年，我們沒有像過去那樣對 PlayStation 4 進行降價，所以我們能夠在沒有折扣的情況下銷售。

Now PS5 Pro unit numbers are included in this. PS5 Pro is rather high-end hardcore users are the target of this hardware. So we don't have a large contribution in corporate. And compared with the PS5, I think it is, in fact, stronger. And in terms of the pricing, many people made different comments on that. But pricing for PS5 Pro has not had a negative impact, I don't think.

現在 PS5 Pro 的單位編號已包含在其中。PS5 Pro是相當高階的硬派用戶，是這款硬體的目標客群。所以我們在企業方面沒有很大的貢獻。與PS5相比，我認為它實際上更強。而在定價方面，很多人也給了不同的評價。但我認為 PS5 Pro 的定價並沒有產生負面影響。

And second question about (inaudible) additional investment. And we -- I apologize. We do not make comments on individual specific projects like this. But our basic thinking is that the semiconductor industry is needed for the growth of the economy and also for the economic security as such is very important as we are one of the members of that industry if the semiconductor industry is to be enhanced. And we believe that all strengthened infrastructure and the technology personnel base, and that's good for industry. So we want to make a due contribution to that. That's it.

第二個問題是關於（聽不清楚）額外投資。我們——我很抱歉。我們不會對此類個別具體項目發表評論。但我們的基本想法是，半導體產業是經濟成長所必需的，也是經濟安全所必需的，因此如果要增強半導體產業，我們就是該產業的成員之一，因此經濟安全非常重要。我們相信，所有加強的基礎設施和技術人員基礎，這對工業都有好處。所以我們希望為此做出應有的貢獻。就是這樣。

We are running out of time. So we like -- we have time for two more persons for questions. (Event Instructions) Suzuki-san, from Weekly Diamond.

我們的時間不多了。所以我們希望──我們還有時間讓另外兩個人提問。（活動說明）鑽石週刊的鈴木先生。

My name is Suzuki from the Weekly Diamond. I'd like to ask you a question about game business. In live service business and then you failed the Concord and also you gained success and you have two different experiences. And I'm sure that will have given you of learning and that's what you explained. Can you talk a little bit more about that? And what didn't work? And then what really worked? Can you elaborate on that?

我叫鈴木，來自《鑽石週刊》。我想問你一個關於遊戲業務的問題。在現場服務業務中，你在協和中失敗了，但你也獲得了成功，你有兩種不同的經驗。我相信這會帶給你學習，這就是你所解釋的。能多談談嗎？什麼不起作用？那麼什麼才是真正有效的呢？能詳細說明一下嗎？

Thank you very much for your question. As I might be repeating myself, but in terms of what didn't work, we need to have more detailed confirmation or validation, and we should have done those more. And then we need to have more detailed gates to make sure that we check the user test. We need to repeat those gates more so that we could have caught, and I want to determine whether that will be accepted by the users or not. And we need to have more information that will enable us to make more sound decision. And I think that's the overall reflection.

非常感謝您的提問。正如我可能會重複的話，但就哪些不起作用而言，我們需要進行更詳細的確認或驗證，我們應該做得更多。然後我們需要有更詳細的關卡來確保我們檢查用戶測試。我們需要更多地重複這些門，以便我們能夠抓住，我想確定用戶是否會接受。我們需要更多的資訊來幫助我們做出更明智的決定。我認為這就是總體反映。

And in terms of what worked, and looking back on what worked and then we usually don't do that. But -- and if things are really working and then, of course, like -- and all the things that I have said, worked really well to really produce a great resource and looking back in the past. So I think we need to go back to the basic and then make it really stronger. That's all.

就什麼是有效的而言，回顧什麼是有效的，然後我們通常不會這樣做。但是 - 如果事情真的有效，那麼，當然，就像 - 我所說的所有事情都非常有效，可以真正產生出色的資源並回顧過去。所以我認為我們需要回到基礎，然後讓它變得更強大。就這樣。

So the next question will be the last question. Sato-san from Nikkei, please.

所以下一個問題將是最後一個問題。有請《日經新聞》的佐藤先生。

Sato from Nikkei. Regarding Concord, I have a question. So actually, (inaudible) well, it's not easy to pay attention to that. And for Sony Group, anime films and game, well, you have diverse content. So you we have produced a diverse content. And so how you are going to combine them? From Concord, the lessons -- how you're able to take advantage of the lessons from Concord?

來自日經新聞的佐藤。關於康科德，我有一個問題。所以實際上，（聽不清楚）嗯，關注這一點並不容易。對於索尼集團來說，動畫電影和遊戲，嗯，你有多樣化的內容。所以我們為您製作了多樣化的內容。那麼你將如何將它們結合起來呢？來自 Concord 的經驗教訓——您如何能夠利用 Concord 的經驗教訓？

So regarding that matter, as lesson, we have learned a lot. But the way to face the issues regarding PC. For instance, the PlayStation accounts that we have the offered. And well, actually, by offering them, for instance, sometimes, that tends to invite pushback. But for the live services games -- so in order to maintain order of the gaming so that anybody can enjoy the game safely, and we need to create environment conducive to that.

所以對於這件事，作為一個教訓，我們學到了很多。但如何面對有關 PC 的問題。例如，我們提供的 PlayStation 帳戶。事實上，例如，有時，透過提供它們往往會招致阻力。但對於直播遊戲來說——為了維護遊戲秩序，讓任何人都可以安全地享受遊戲，我們需要創造一個有利於這一點的環境。

Of course, enjoying the game freely and having some restrictions may not call it rule, but to ask the users and gamers to follow the manner. And those balance is very important. We have to continue to seek the best way to achieve this.

當然，自由地享受遊戲並有一些限制可能不叫規則，而是要求用戶和遊戲玩家遵循的方式。這些平衡非常重要。我們必須繼續尋求實現這一目標的最佳途徑。

So the time runs out. So now we would like to bring an end to the question and answer from media. And from 04:52, we'd like to start question-and-answer for the investors and analysts. So please wait for a while.

所以時間已經不多了。那麼現在我們想結束媒體的問答。從04:52開始，我們開始為投資人和分析師進行問答。所以請稍等一下。

(break)

（休息）

Thank you for your patience. Now we'd like to start the Q&A session for investors and analysts. My name is [Konto], I'm with the IR Group of Sony Group Corporation. (Event Instructions)

感謝您的耐心等待。現在我們開始投資人和分析師的問答環節。我叫 [Konto]，索尼集團公司 IR 小組的工作人員。（活動須知）

So SMBC Nikko Securities, Katsura-san, please.

有請 SMBC 日興證券、桂先生。

Okay. Thank you very much. SMBC Nikko Securities, Katsura. And I would like to talk about I&SS and ETS one each. For I&SS in the additional documents, page 20, wafer production capacity is now at full, and you will continue -- we will start adjusting that. And what will be the period you will be adjusting -- making adjustment? And also on Page 8, there is an inventory level. So with the addition of the impact from the ForEx, has there been any change in the outlook? That's the first question.

好的。非常感謝。SMBC日興證券、桂。我想分別談談 I&SS 和 ETS。對於附加文件第 20 頁中的 I&SS，晶圓產能現已滿載，您將繼續 - 我們將開始對此進行調整。您將在什麼時期進行調整？第 8 頁上也顯示了庫存水準。那麼，加上外匯的影響，前景有什麼改變嗎？這是第一個問題。

And the second question about ETS is about the digital camera. You have become more cautious about your outlook for digital cameras market. Now that revision is limited to that only or ET&S, as a whole, you are taking a look? And as a result, we have flat unchanged as a whole, but the plus and minuses we could expand on.

關於 ETS 的第二個問題是關於數位相機的。您對數位相機市場的前景變得更加謹慎。現在修改僅限於此，還是ET&S，作為一個整體，你在看嗎？結果，我們整體上沒有變化，但我們可以擴展優點和缺點。

Thank you for your question. And regarding I&SS utilization rate, currently, as you know, full production capability is utilized. For the third quarter, we plan to have the same station of full operation. And as of now, we have -- regarding the inventory, I think as of late end of March, we have a little bit more production inventory. I talked about the production control adjustment. So we will cut back the inventory a little bit as such. And so we do not consider it's needed to adjust the production much.

謝謝你的提問。至於I&SS利用率，如您所知，目前，生產能力已充分利用。第三季度，我們計劃讓同一站全面運作。截至目前，關於庫存，我認為截至 3 月底，我們的生產庫存有所增加。我講了生產控制的調整。所以我們會稍微削減庫存。所以我們認為沒有必要對產量進行太大的調整。

And as for ETS, as a whole, there is some change. ETS as a whole, that is the China, the market -- TV market is softening. And worldwide, not much change, though. So that's how we view the TV market. And for the increased cost for logistics, that was -- that is now included in the -- as a risk in the October assumption. And imaging because of a competitive condition, there is an increase in the sales promotion cost. And also Chinese market risk is also incorporated. But initial plan, we had overall risk as a whole as well. So we did not change the forecast for operating income this time.

至於ETS，作為一個整體，也有一些變化。ETS作為一個整體，即中國市場—電視市場正在走軟。但在全球範圍內，變化不大。這就是我們如何看待電視市場。對於物流成本的增加，現在已納入 10 月假設的風險。而且成像由於競爭狀況，促銷成本增加。中國市場風險也被納入其中。但在最初的計畫中，我們也面臨整體風險。所以我們這次沒有改變營業收入的預測。

Thank you, Katsura-san.

謝謝你，桂桑。

Moving on to JPMorgan, Ayada-san. Over to you.

轉到摩根大通，綾田先生。交給你了。

This is Ayada, from JPMorgan. And I have two questions with regards to game. The first one is, in the second quarter, and there was a huge shock. So I'd like you to take a pause, and then there was an increase in profit by JPY85 billion because of the foreign exchange and then also the hardware and third-party network. What was the profit contribution of each?

我是來自摩根大通的綾田。我有兩個關於遊戲的問題。第一個是，第二季度，有一個巨大的震動。所以我想讓你暫停一下，然後因為外匯，然後還有硬體和第三方網絡，利潤增加了850億日元。每個人的獲利貢獻是多少？

And in terms of hardware, and I think you turned -- you made profit in the second quarter. And do you think -- and then also you mentioned this profit improvement of the hardware in the second quarter and onwards. What was the driver behind that? That was the first question.

在硬體方面，我認為你在第二季度實現了盈利。您是否認為 - 然後您也提到了第二季及以後硬體的利潤改善。背後的推動者是什麼？這是第一個問題。

And the second question is, looking at the game, especially hardware in the second half and the third-party software lineup in the second half, not compatible to PS4, but some titles are only compatible with the PS5, and there has been an increase in the number of that. And what's the thinking before that? And then upgrade and are you expecting the accelerated transition from PS4 to PS5?

而第二個問題是，從遊戲來看，尤其是下半年的硬體和下半年的第三方軟體陣容，不相容PS4，但有些遊戲只相容PS5，而且有增加在那個數量中。在此之前的想法是什麼？然後升級，您是否期待從 PS4 到 PS5 的加速過渡？

Or -- and because we are talking our third parties and those users with the PC and PS4, they might be able to purchase a self PC and there might be such risk. And how do you view there is such risks and opportunities? And I know that you are overdelivering in the second quarter. So maybe you -- maybe you might have decided to increase the market promotional costs in the second half.

或者 - 因為我們正在談論我們的第三方以及擁有 PC 和 PS4 的用戶，他們可能能夠購買一台自己的 PC，並且可能存在這樣的風險。您如何看待這種風險和機會？我知道你們在第二季超額交付了。所以也許你——也許你可能決定在下半年增加市場促銷費用。

So with regards to game, in the second quarter, and in terms of operating income growth, and you have given us your analysis. And then our view is very close to what you have said. And also the sequence that you mentioned, you are correct.

因此，關於遊戲，在第二季度，以及營業收入成長方面，您向我們提供了您的分析。那麼我們的觀點與你所說的非常接近。還有你提到的順序，你是對的。

So in terms of profit growth, and we don't -- we haven't disclosed that, but speaking about the reason for the improved profitability of hardware, in last year second quarter, when compared to the current second quarter to the last year's, and we made a switch to the new models, so which means that the cost structure improved and that also generated a positive contribution to the profit. And then also -- and we launched new models in the third quarter of last year.

因此，就利潤增長而言，我們沒有披露這一點，但談到去年第二季度硬體盈利能力提高的原因，與當前第二季度和去年同期相比，我們轉向了新車型，這意味著成本結構得到改善，也對利潤產生了正面的貢獻。然後，我們在去年第三季推出了新型號。

So basically, the cost structure remains unchanged compared to the second half of last year. But the average selling price has improved and which we -- is expected to generate the profit improvement year-on-year. And with regards to the third quarter, as you know, which is the volume driving quarter and of the year. So yes, we have included the marketing promotional expense increase and not at drastic increase. And so if you look at -- focus on only that, you might see that there will be a slight deterioration of the profitability, but that's all I have.

所以基本上成本結構與去年下半年相比沒有變動。但平均售價有所提高，我們預計將產生年比利潤改善。至於第三季度，如您所知，這是銷售驅動的季度和年度。所以，是的，我們已經包括了行銷促銷費用的增加，但並未大幅增加。因此，如果你只關注這一點，你可能會發現盈利能力會略有惡化，但這就是我所擁有的。

Sorry, I forgot to address one more question with regards to upgrade. So the third-party lineup for -- only for PS5 and you said that there might be an increase in the number of the titles. But because of the timing and because of the late stage of the console cycle, naturally, we have more titles for PS5. But if the transition from PS5 and PS5 will continue, we believe that transition is happening and as we expect.

抱歉，我忘了解決另一個有關升級的問題。所以第三方陣容——僅適用於 PS5，你說遊戲的數量可能會增加。但由於時間安排以及主機週期的後期階段，我們自然會為 PS5 提供更多遊戲。但如果 PS5 和 PS5 的過渡將繼續下去，我們相信過渡正在發生並且正如我們所期望的那樣。

So if you upgrade to PS5, basically -- and of course, there will be upside in the software purchases, and then we see that as a positive opportunity. And then as for the risk for third-party software for PC, we don't see that as a risk. And we haven't seen that as trend emerging. That's all I have. Thank you.

因此，如果你升級到 PS5，基本上 - 當然，軟體購買將會有好處，然後我們將其視為一個積極的機會。至於 PC 上的第三方軟體的風險，我們不認為這是一個風險。我們還沒有看到這種趨勢正在出現。這就是我所擁有的一切。謝謝。

The next question is Citigroup is Ezawa-san.

下一個問題是花旗集團是江澤先生。

Ezawa, from Citigroup. I have two questions. And regarding hardware and the results of the game, the relation between this. And also another question is pertains to music. As for game, operating income forecast, the JPY34 billion upward the revision. And the first half and the second quarter results are better than your plan. So is that just a mere addition of that increase on the second quarter just in terms of number?

江澤民，來自花旗集團。我有兩個問題。而關於硬體和遊戲的結果，這之間的關係。另一個問題與音樂有關。至於遊戲方面，營業收入預測則向上修正為340億日圓。而且上半年和第二季的業績都比你的計畫好。那麼，這僅僅是在數量上加上第二季的成長嗎？

Because hardware profitability improvement seems to be the major factor to increase the results of second quarter. And the cost structure has improved and the profit has increased. So that may increase the profit of the second quarter. That is not reflected. So I just wonder whether that is reflected in the second quarter results or forecast?

因為硬體獲利能力的改善似乎是第二季業績成長的主要因素。成本結構改善，利潤增加。因此第二季的利潤可能會增加。這沒有反映出來。所以我只是想知道這是否反映在第二季的業績或預測？

And the second question pertains to music. At evergreen, the music has been more often listened to by users. And until a few years ago, the hit chart of new songs. Sony Music artist, the portion share was the largest, and you put a lot of emphasis on that. In Latin America and Indies, you have made a lot of the emphasis in order to increase the hit songs of the new artists or new songs.

第二個問題與音樂有關。在evergreen，音樂已經被更多的用戶聽到。直到幾年前，新歌的熱門排行榜。索尼音樂藝人，份額是最大的，你非常重視這一點。在拉丁美洲和印度，為了增加新藝人或新歌曲的熱門歌曲，你們做了很多重點。

The fact that the change happens reflects the change of your position of the music business or generally in the music industry, this is a general trend of music industry that people listen to the older music more often than just the new songs.

這種變化的發生反映了你在音樂產業或整個音樂產業中的地位的變化，這是音樂產業的一個大趨勢，人們更聽舊音樂而不是新歌曲。

Thank you. Regarding the game, answering your question, during the Q2, the reason the sales was solid, that is also reflected in the second half. In hardware, the profitability magnitude is larger during the first half and because the new model was introduced during the first half. The timing was important.

謝謝。關於遊戲，回答你的問題，在第二季度，銷售穩定的原因也反映在下半年。硬體方面，上半年獲利幅度較大，因為上半年推出了新機型。時機很重要。

And during the second half, sales and marketing, we have to spend more money. And so that is the reason for this difference. And as for Q4, the fourth quarter, there will be a slightly more upside. And I expect that great deal, but I should not have any predetermined the forecast for that. So we actually formulate forecast as is presented now.

在下半年的銷售和行銷方面，我們必須花更多的錢。這就是造成這種差異的原因。至於第四季度，第四季會有更多的上漲空間。我對此抱有很大的期望，但我不應該對此有任何預先確定的預測。因此，我們實際上製定了現在提出的預測。

And regarding your question on music, I ask Matsuoka-san to speak and then I will supplement her comment.

關於你關於音樂的問題，我請松岡女士發言，然後我會補充她的評論。

Now in my presentation, as I mentioned earlier, for PSP, for the maturity of the market -- in other words, in the developed countries, the age group become older. And also in S&S, the some of the old -- the songs have been listened to more often than before. So what is called evergreen, the music or songs, the share and also frequency of that music being listened to has been increasing. That is the general trend of the music industry.

現在在我的演講中，正如我之前提到的，對於PSP來說，是因為市場的成熟——換句話說，在已開發國家，年齡層變得更老了。在 S&S 中，一些老歌也比以前更常被人們聽到。所以所謂的長青，音樂或歌曲，音樂被聆聽的份額和頻率一直在增加。這是音樂產業的大趨勢。

But in emerging the market where the gross -- the potential is expected like Latin America or India. There are many pieces of music, which have been listened to. And we also pay attention to that, to acquire the new label, et cetera. So in terms -- rather than the preference of users, the composition of the market itself has changed. I think that is a way you should interpret the music, the market right now.

但在拉丁美洲或印度等預計潛力巨大的新興市場。有很多音樂作品，都聽過。我們也關注這一點，獲得新標籤等等。因此，就市場本身的組成而言，而不是使用者的偏好發生了變化。我認為這是你現在應該解釋音樂和市場的一種方式。

So to supplement, on our part, the evergreen catalogs, the results of our investment, they have been listened to more than we expected at least to upside our profitability. So that we welcome very much. And in addition to that, say, new songs in Latin America, that does not mean that they compromise the new songs from Latin America. So we would like to put emphasis on the both so that we can enjoy the upside of the profitability from the both.

因此，就我們而言，為了補充常青目錄和我們的投資結果，他們聽取的意見超出了我們的預期，至少提高了我們的獲利能力。所以我們非常歡迎。除此之外，比如說拉丁美洲的新歌，這並不意味著它們會損害拉丁美洲的新歌。因此，我們希望專注於兩者，以便我們能夠享受兩者的盈利優勢。

Okay. Let us move to the next question. And we have Yasui-san of UBS Securities.

好的。讓我們進入下一個問題。我們還有瑞銀證券的安井先生。

Thank you. Once again, my name is Yasui. I'd like to ask two questions. And in terms of music streaming business, since summer, the streaming growth is slowing down. That's what the competitors are saying and that's getting some attention. And it used to be double-digit growth, but now single-digit. And also, your performance in dollar base was 5% growth only. So is this temporarily slow down? Or is that a structural, if you could comment on that?

謝謝。再說一次，我的名字是安井。我想問兩個問題。而在音樂串流媒體業務方面，自夏季以來，串流媒體成長正在放緩。這就是競爭對手的說法，也引起了一些關注。以前是兩位數成長，現在是個位數成長。而且，以美元計算，你們的業績只成長了 5%。那麼這是否是暫時的放緩呢？或者這是一個結構性的，如果你能對此發表評論嗎？

And second, about semiconductor second quarter profitability, about 17% to 18% profitability. In the past second quarter, it was like 20% and above. So 17% to 18% is rather slow with better yield, full production, I would imagine the better portability. And wafers input is increasing in dollar base as well and the wafer costs with the change of ForEx rate. And if you could comment on that situation?

其次，關於半導體第二季的獲利能力，獲利能力約為17%至18%。在過去的第二季度，這一比例約為 20% 甚至更高。所以 17% 到 18% 是相當慢的，但產量更好，全面生產，我想會有更好的可移植性。晶圓投入也隨著美元匯率的變動而增加，晶圓成本也隨之增加。您能否對這種情況發表評論？

Thank you for the question. First question about the music, Matsuoka-san will respond. And on I&SS, second question, I will respond.

謝謝你的提問。第一個關於音樂的問題，松岡老師來回答。關於 I&SS 的第二個問題，我會回答。

Matsuoka-san, please.

松岡先生，請。

Regarding streaming, which has two aspects, publishing and production, and streaming growth trend is pretty much in line. It's still stable growth. But compared with the past, like first quarter of 2023 and before, there are multiple DSP, which raised their price. And that made it look like they are growing rapidly. But in terms of music production, the streamings, the audio portion has grown from quarter 1 to quarter 2.

就串流媒體而言，串流媒體有發布和製作兩個方面，串流媒體的成長趨勢基本上一致。依然是穩定成長。但與過去相比，例如2023年第一季及之前，有多個DSP，這提高了它們的價格。這使得他們看起來正在快速成長。但就音樂製作、串流媒體、音訊部分而言，從第一季成長到了第二季。

As for video, streaming service growth is slowing down. That's true. And as a whole, that is bringing down the growth rate. So that's where current situation is. But the overall structure has not changed. So the DSP price hike timing and so on may change the streaming growth rate. And DSP paid subscribers are still increasing. And I think there is a room for price raise in the future. And so those are some of the factors that work in the background.

至於視頻，串流媒體服務成長正在放緩。這是真的。總體而言，這正在降低成長率。這就是目前的情況。但整體結構沒有改變。因此DSP漲價時機等可能會改變串流成長率。而且DSP付費用戶仍在增加。而且我認為未來還有漲價的空間。這些是在後台起作用的一些因素。

Okay. Let me talk about I&SS, which was the second question. And OP margin was 11.4% and this year, 17.3% operating profit margins of last year and this year. And last year was slow because of the yield issue we had. And also Q2 did not have the full shipment as we expected. So last year's second quarter was not a good quarter.

好的。我講一下I&SS，這是第二個問題。而今年的營業利益率為 11.4%，去年和今年的營業利益率為 17.3%。去年由於產量問題而進展緩慢。而且第二季也沒有像我們預期的那樣全面出貨。所以去年第二季並不是一個好的季度。

But this year, as far as the shipping is concerned, that has recovered and brought us to the 70.3% of the profitability. Now can we expect higher? That's for high-end sensor development is, well, we are making investment in that and also increasing its capacity. So the capital investment depreciation will have to be accounted. And we are not 100% successful in terms of investing and still getting enough profitability, but we intend to continue to improve that profitability.

但今年，就航運而言，已經恢復並為我們帶來了70.3%的獲利能力。現在我們可以期待更高嗎？那是為了高端感測器的開發，我們正在對此進行投資，並提高其產能。因此，必須考慮資本投資折舊。我們在投資方面並不是100%成功，仍然獲得足夠的獲利能力，但我們打算繼續提高獲利能力。

So we are running out of time. So the next person will be the last person to ask the question. (Event Instructions) Nakane-san from Mizuho Securities.

所以我們的時間不多了。所以下一個人會是最後一個提出問題的人。（活動說明）瑞穗證券的中根先生。

Thank you. My name is Nakane, from Mizuho Securities. And operating cash flow, and that's I'd like to ask you about. In the Financial Service, operating cash flow, JPY40 billion has been revised to JPY1.44 trillion. And what's the upside and downside from this? And we can forecast a profit. But what are the other aspects, especially inventory, and then also at this point in time, and I know the network business is doing really well. So what about the operating capital?

謝謝。我叫中根，來自瑞穗證券。還有經營現金流，這就是我想問你的問題。金融服務業的經營現金流由 400 億日圓修正為 1.44 兆日圓。這有什麼好處和壞處？我們可以預測利潤。但是其他方面呢，特別是庫存，然後也是在這個時間點上，我知道網路業務做得非常好。那麼營運資金呢？

And then there might be some impact. And then towards the end of the year, apart from the profit, what are there any factors that will affect the operating cash flow. And can you at least talk about the factors that will impact the operating cash flow?

然後可能會有一些影響。那麼到了年底，除了利潤之外，還有哪些因素會影響經營現金流。您至少能談談影響經營現金流的因素嗎？

Thank you very much for your question. So operating cash flow, excluding the financial, has been upward revised by JPY40 billion.

非常感謝您的提問。因此，不包括財務費用的經營現金流量已上調 400 億日圓。

Thank you very much for that question. As you pointed out, in upward revision by JPY40 billion, that is driven by the improved profitability of the game business. And as you said, compared to last year, operating cash flow has increased significantly. Now it's driven by the improvement in the working capital in a game business.

非常感謝你提出這個問題。正如您所指出的，向上修正了 400 億日元，這是由遊戲業務盈利能力改善所推動的。正如你所說，與去年相比，經營現金流大幅增加。現在，它是由遊戲業務營運資金的改善所推動的。

With regards to the inventory situation compared to last year, each business has a better control of the inventory, and we are tightly controlling the inventory. And as we gear up for the year-end selling season, the gaming and ET&S businesses, of course, we need to watch closely the market development so that we can accurately forecast the operating cash flow. Thank you very much.

從庫存情況來看，與去年相比，各個業務對庫存的控制都比較好，我們對庫存的控制是比較嚴格的。當我們為年終銷售旺季做準備時，遊戲和ET&S業務當然需要密切關注市場發展，以便準確預測營運現金流。非常感謝。

So on -- with regards to the question as to other key factors that you pay attention to, so I don't think there are any notable upside, downside apart from the working capital. And for us, as we get closer to the year-end selling season, what sort of the inventory level that we need to have.

等等，關於您關注的其他關鍵因素的問題，所以我認為除了營運資金之外，沒有任何顯著的好處或壞處。對我們來說，隨著年底銷售旺季的臨近，我們需要擁有什麼樣的庫存水準。

And of course, we need to have a processing in place to normalize that, and then we need to do that in a timely manner, and that will have an impact on the cash flow. So how diligent and then how detailed -- granular, we will be able to do that. And I think that will have an impact on working cash flow, operating capital.

當然，我們需要有一個適當的處理來使其正常化，然後我們需要及時地做到這一點，這將對現金流產生影響。因此，只要多麼勤奮，多麼細緻，我們就能做到這一點。我認為這將對營運現金流、營運資本產生影響。

With that, we would like to conclude the Sony Group consolidated financial results announcement session. Thank you very much.

至此，索尼集團合併財務業績發表會結束。非常感謝。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本筆錄中的英語陳述是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。