Komori
Earnings6758SONY GROUP CORPORATIONElectrical Equipment and Precision Instruments

Notice of Recognition of an Impairment Loss on Shares in Affiliated Companies and a Provision for Losses on Affiliated Company Businesses in the FY2025 Non-Consolidated Financial Results

Sony Group recognized an impairment loss of ¥100.0 billion on its shares in Sony Honda Mobility (SHM) and ¥25.2 billion as an expense for a provision against losses it expects to bear in the future, both as extraordinary losses in its standalone financial results, following the cancellation of SHM's EV development and launch plans. In the consolidated financial results, these standalone losses are eliminated, while an additional ¥44.9 billion in equity-method investment loss was recognized.

Worth reading
72In focus
Scored from 1 of 6 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
1252
¥ hundred million
Wording
Conditional
How definitive the wording is.

Results for this period

Full yearFiscal 2025 (1 April 2025 to 31 March 2026)Non-consolidated (standalone)
Factors Behind Changes in Business Performance

SHM's negative net worth following the cancellation of development and launch of its EV model, the significant decline in the actual value of the shares held, and expected future losses to be borne. On a consolidated basis, expenses were recognized in connection with the cancellation of the launch of SHM's EV model.

Impairment loss¥1,000 hundred million
Breakdown of extraordinary income (loss)Item Impairment Losses on Shares of Affiliates / Amount ¥1,000 hundred million / Category Extraordinary Losses, Item Expense for provision for loss on an affiliated company's business / Amount ¥252 hundred million / Category Extraordinary Losses
Availability of Financial Results BriefingYes (audience: Not disclosed)
Results for this period
ItemDetails
Fiscal Period ClassificationFull year
Consolidated / non-consolidatedNon-consolidated (standalone)
Period CoveredFiscal 2025 (1 April 2025 to 31 March 2026)
Impairment loss¥1,000 hundred million
Breakdown of extraordinary income (loss)Item Impairment Losses on Shares of Affiliates / Amount ¥1,000 hundred million / Category Extraordinary Losses, Item Expense for provision for loss on an affiliated company's business / Amount ¥252 hundred million / Category Extraordinary Losses
Availability of Financial Results BriefingYes (audience: Not disclosed)
Factors Behind Changes in Business PerformanceSHM's negative net worth following the cancellation of development and launch of its EV model, the significant decline in the actual value of the shares held, and expected future losses to be borne. On a consolidated basis, expenses were recognized in connection with the cancellation of the launch of SHM's EV model.
Items this document does not state (31)
Accounting standardsNet SalesOperating profitOrdinary incomeProfit attributable to owners of the parentNet income per shareOperating MarginEquity ratioTotal assetsNet assetsCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesCash and cash equivalents at end of periodFull-year earnings forecastRevision to Earnings ForecastAnnual Dividend ForecastPayout ratioShareholder Return PolicySegment revenueSegment profitRegional salesOrders received and order backlogDepreciation and amortizationDisclosure regarding the going concern assumptionChange in accounting policyChanges in the scope of consolidationMaterial subsequent eventsAvailability of Supplementary Financial Results MaterialsIssued Shares at Period-EndTreasury Shares at Period-End

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

SHM became insolvent following the cancellation of the launch of its EV model, causing the actual value of the shares held to fall significantly. In addition, Sony Group expects to bear a portion of SHM's future losses based on its ownership interest in SHM's negative net worth. In the consolidated financial results, an additional equity-method investment loss was recognized following the recognition of expenses associated with the cancellation of SHM's EV model launch.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice of Recognition of an Impairment Loss on Shares in Affiliated Companies and a Provision for Losses on Affiliated Company Businesses in the FY2025 Non-Consolidated Financial Results | SONY GROUP CORPORATION (6758) timely disclosure | Komori