Sony completes partial spin-off of financial services business

Sony Group Corporation announced the completion of its partial spin-off of Sony Financial Group Inc. (SFGI), effective October 1, 2025. This move reduces Sony's ownership in SFGI to 16.40%, reclassifying SFGI from a consolidated subsidiary to an affiliate accounted for using the equity method. The total carrying amount of the dividend property is JPY 463,885,829,967 (JPY 77.61 per share), resulting in a corresponding reduction in retained earnings.

For tax purposes, the finalized proportion of distributed assets is 0.206, consistent with previous estimates. Notifications regarding this will be sent to shareholders in early November 2025.

Sony expects to record a loss of approximately JPY 1,400 bn from discontinued operations in the fiscal year ending March 31, 2026, due to the reclassification of SFGI's accumulated other comprehensive income balance. This accounting adjustment is a reclassification within equity and does not affect total equity, cash flows, or profit/loss from continuing operations.