Sony has, from time to time, entered into various arrangements with structured entities. As a result of the execution of the Partial

Spin-off

of the Financial Services business, SFGI, which operates the Financial Services business, has been excluded from consolidation. Therefore, the descriptions of the structured entities related to the Financial Services business are presented only as of March 31, 2025.

Sony consolidates investment funds as structured entities in the Financial Services business. The investment funds are designed so that voting or similar rights are not the dominant factor in deciding who controls these entities, but it is determined that Sony has control over these structured entities. Sony has not provided and does not intend to provide any significant financial or other support to any of the consolidated structured entities without contractual obligations to the investment funds. The assets and liabilities of structured entities that are consolidated in the Financial Services business are limited in their intended use by contractual arrangements. As of March 31, 2025, the total assets of these structured entities are 4,439,856 million yen.

In the Financial Services business, Sony enters into securitization transactions for certain housing loans, involving unconsolidated structured entities. Sony

derecognizes a financial asset when the contractual right to receive the cash flows from the financial asset is transferred, or when Sony retains the contractual right to receive the cash flows from the financial asset, but assumes a contractual obligation to pay the cash flows without reinvestment or material delay to other recipients in an arrangement, and substantially all the risks and rewards of ownership of the financial asset are transferred to another entity. Since the above securitization transactions do not meet the requirements for derecognition of financial assets, such transferred assets are not derecognized. Sony recorded

150,953

million yen of transferred assets that do not meet the requirement for derecognition of financial assets included in investments and advances in the Financial Services business as of March 31, 2025. As of March 31, 2025, the liabilities recorded from these securitization transactions were

152,046

million yen, which are included in the current portion of long-term debt and long-term debt. The liabilities will be settled when the payment for the transferred assets is executed and until this time, Sony is unable to utilize the transferred assets. The transferee of the transferred assets has recourse only to the transferred asset, and as of March 31, 2025, the fair value of the transferred assets is

148,305

million yen, and the associated liabilities is

147,673

million yen.

In addition to the above, in the Financial Services business, Sony makes investments in structured entities. Sony’s investments in such structured entities include securitized products, foreign corporate bonds and other investments. The following tables present the carrying amount of the investments of unconsolidated structured entities, the presentation in the consolidated statements of financial position, and the maximum exposure to loss associated with these investments as of March 31, 2025. Maximum exposure to loss does not reflect Sony’s estimate of the actual losses that could result from adverse changes, nor does it reflect the economic hedges Sony enters into to reduce its exposure. The risks associated with structured entities in which Sony is involved are limited to the amount recorded in the consolidated statements of financial position and the amount of commitments.