Stock-based compensation plans

12 Months Ended

Mar. 31, 2025

21.	Stock-based compensation plans

The stock-based compensation expense for the fiscal years ended March 31, 2023, 2024 and 2025 was 15,781 million yen, 21,657 million yen and 29,416 million yen, respectively.

Sony Group Corporation has stock-based compensation plans primarily in the form of a stock option plan for Corporate Executive Officers and employees of Sony Group Corporation, and the directors, other officers and employees of its subsidiaries, and a restricted stock unit plan (the “RSU Plan”) for Directors, Senior Executives, other officers and employees of Sony Group Corporation, and the directors, other officers and employees of its subsidiaries.

(1) Stock option plan

The stock acquisition rights granted under the stock option plan primarily have a three-year vesting schedule and are exercisable up to 10 years from the date of grant. Sony Group Corporation either issues new shares of common stock or reissues existing treasury stock upon the exercise of these rights.

As of October 1, 2024, Sony Group Corporation conducted a five-for-one

stock split of its common stock. The following weighted-average fair value per share at the date of grant of stock acquisition rights, the number of shares, the weighted-average exercise price, the weighted-average stock price at the time when the stock acquisition rights were exercised, the exercise price and the balance of unexercised stock acquisition rights at the end of the fiscal year are calculated assuming that the stock split was implemented at the beginning of the fiscal year ended March 31, 2023.

The fair value of stock acquisition rights on the date of grant and used to recognize compensation expense for the fiscal years ended March 31, 2023, 2024 and 2025 was estimated using the Black-Scholes model, and the weighted-average fair value per share

right

at the date of grant of stock acquisition rights granted during the fiscal years ended March 31, 2023, 2024 and 2025 was 625 yen, 733 yen and 875 yen, respectively. A summary of the activities regarding the stock option plan during the fiscal years ended March 31, 2023, 2024 and 2025 is as follows:


	Fiscal year ended March 31
	2023				2024				2025
	Number of shares		Weighted- average exercise price		Number of shares		Weighted- average exercise price		Number of shares		Weighted- average exercise price
	Number of shares		Yen		Number of shares		Yen		Number of shares		Yen
Outstanding at beginning of the fiscal year		82,721,500		1,879		98,457,500		2,062		97,809,500		2,330

Granted		23,721,500		2,196		12,190,500		2,533		4,302,800		2,927

Exercised		6,304,000		1,113		10,608,500		1,359		18,930,500		1,843

Forfeited or expired		1,681,500		2,531		2,230,000		2,660		2,012,500		2,796

Outstanding at end of the fiscal year		98,457,500		2,062		97,809,500		2,330		81,169,300		2,442

Exercisable at end of the fiscal year		48,415,000		1,607		59,409,500		2,166		59,515,500		2,403

The weighted-average stock price at the time when the stock acquisition rights were exercised during the fiscal years ended March 31, 2023, 2024 and 2025 was 2,281 yen, 2,629 yen and 3,238 yen, respectively.

A summary of unexercised stock acquisition rights as of March 31, 2023, 2024 and 2025 is as follows:


Series	Date of grant	Exercise term	Exercise price		Outstanding at end of the fiscal year (shares)
Series	Date of grant	Exercise term	Exercise price		2023		2024		2025
26 th	November 20, 2013	November 20, 2014 to November 19, 2023	¥	402		72,000		-		-
27 th	November 20, 2013	November 20, 2014 to November 19, 2023	$	4.01		553,500		-		-
28 th	November 20, 2014	November 20, 2015 to November 19, 2024	¥	483		662,500		417,500		-
29 th	November 20, 2014	November 20, 2015 to November 19, 2024	$	4.14		677,500		613,500		-
30 th	November 19, 2015	November 19, 2016 to November 18, 2025	¥	681		934,500		445,000		230,500
31 st	November 19, 2015	November 19, 2016 to November 18, 2025	$	5.51		741,000		656,500		337,000
32 nd	November 22, 2016	November 22, 2017 to November 21, 2026	¥	673		1,952,000		1,157,000		755,500
33 rd	November 22, 2016	November 22, 2017 to November 21, 2026	$	6.22		1,652,500		1,430,500		983,000
34 th	November 21, 2017	November 21, 2018 to November 20, 2027	¥	1,047		2,171,000		1,401,000		944,500
35 th	November 21, 2017	November 21, 2018 to November 20, 2027	$	9.15		3,102,500		2,528,500		1,486,500
36 th	February 28, 2018	February 28, 2019 to February 27, 2028	¥	1,089		19,500		7,500		4,500
38 th	November 20, 2018	November 20, 2019 to November 19, 2028	¥	1,288		4,199,500		2,983,500		2,308,500
39 th	November 20, 2018	November 20, 2019 to November 19, 2028	$	11.25		3,802,500		3,271,500		1,926,500
40 th	November 20, 2019	November 20, 2020 to November 19, 2029	¥	1,341		6,050,500		4,373,000		2,799,000
41 st	November 20, 2019	November 20, 2020 to November 19, 2029	$	12.20		5,381,500		4,582,000		2,736,000
42 nd	April 17, 2020	April 17, 2021 to April 16, 2030	$	12.75		66,500		-		-
43 rd	November 18, 2020	November 18, 2021 to November 17, 2030	¥	1,848		10,302,000		8,270,000		6,386,000
44 th	November 18, 2020	November 18, 2021 to November 17, 2030	$	17.50		9,310,500		8,573,000		5,641,000
45 th	November 18, 2021	November 18, 2022 to November 17, 2031	¥	2,870		11,837,500		11,656,000		10,635,000
46 th	November 18, 2021	November 18, 2022 to November 17, 2031	$	24.98		11,385,500		10,689,000		10,119,500
47 th	November 16, 2022	November 16, 2023 to November 15, 2032	¥	2,278		12,135,500		12,006,000		10,686,500
48 th	November 16, 2022	November 16, 2023 to November 15, 2032	$	15.58		11,447,500		10,620,000		7,836,500
49 th	November 27, 2023	November 27, 2024 to November 26, 2033	¥	2,589		-		6,471,000		6,392,000
50 th	November 27, 2023	November 27, 2024 to November 26, 2033	$	17.10		-		5,657,500		4,658,500
51 st	November 25, 2024	November 25, 2025 to November 24, 2034	¥	2,948		-		-		2,867,000
52 nd	November 25, 2024	November 25, 2025 to November 24, 2034	$	18.93		-		-		1,435,800

(2) Restricted stock unit plan

The restricted stock units granted under the RSU Plan primarily have a three-year vesting schedule. Upon vesting, Sony Group Corporation promptly delivers shares of common stock, the number of which is equal to the number of units vested. Sony Group Corporation either issues new shares of common stock or reissues existing treasury stock upon delivering shares of common stock.

As of October 1, 2024, Sony Group Corporation conducted a five-for-one

stock split of its common stock. The following number of units of the restricted stock units and the weighted-average fair value per share on the grant date are calculated assuming that the stock split was implemented at the beginning of the fiscal year ended March 31, 2023.

A summary of the activities regarding the restricted stock unit plan during the fiscal years ended March 31, 2023, 2024 and 2025 is as follows:


	Fiscal year ended March 31
	2023		2024		2025
	Number of units		Number of units		Number of units
Outstanding at beginning of the fiscal year		-		2,443,150		8,255,925

Granted		2,499,210		6,913,640		10,215,944

Vesting		-		757,040		2,746,775

Forfeited		56,060		343,825		635,243

Outstanding at end of the fiscal year		2,443,150		8,255,925		15,089,851

The fair value of restricted stock units on the date of grant and used to recognize compensation expense for the fiscal years ended March 31, 2023, 2024 and 2025 was based on the closing price per share of common stock on the grant date, adjusted to reflect the expected dividends not received during the vesting period. The weighted-average fair value per share on the grant date of the restricted stock units during the fiscal years ended March 31, 2023, 2024 and 2025 is as follows:


	Fiscal year ended March 31
	2023		2024				2025
Date of grant	November 25, 2022		July 25, 2023		November 27, 2023		July 25, 2024		November 25, 2024
The weighted-average fair value (Yen)		2,295		2,587		2,532		2,644		2,944