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Sony (SONY)

Participants
Hiroki Totoki CFO
Sadahiko Hayakawa IR
Naomi Matsuoka Senior Vice President
Inomata NHK
Suzuki Asahi Shimbun Newspaper
Bam Nikkei
Masuda Nikkei Shimbun
Gassan freelancer
Unidentified Analyst Yaskawa San
Junya Ayada JP Morgan
Ryosuke Katsura SMBC Nikko
Yasuo Nakane Mizuho Securities
Masahiro Ono Morgan Stanley
Call transcript
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Operator

Ladies and gentlemen, we will now begin FY21, Q2 earnings announcements of Sony Group Corporation. I'm Okada from Corporate Communications. I'll be serving as master of ceremonies today. This session is to our media analysts and institutional investors to whom we have sent out an invitation in advance. This session is webcast live on our Investor Relations website.

Mr. [Indiscernible] First, Executive the our the Chief Officer, Financial forecast Hiroki results Deputy for explain Q&A. by consolidated FYXX, consolidated FYXX will for Totoki, followed President QX, results and XX is minutes. Duration Mr. yours. Totoki, the floor is

Hiroki Totoki

of income I to Quarter September the X.XXXX Corporation's decrease X for quarter. same and Second metrics. Income same which increased trillion primarily yen, year-on-year second discuss shareholder highs XXX.X results compared the for of material operating year-on-year increased ended show following allowances each yen, was The securities reversal Net yen XX.X-billion-yen fiscal XX, billion due assets. profit the of results investment. XXX.X X The XXX.X-billion-yen of tax deterioration to topics. Today, the of recorded yen, record consolidated against the income billion will Group QX. X.X a yen variation losses quarter previous for both of for compared segment of a recording before quarter by year, XX% 'XX to to deferred of the previous to various the gains fiscal consolidated the income position billion attributable see to the included Sony a billion FYXX slides Please decreased taxes and the XXX.X on XXX.X pages billion to presentation year to

FY are XX income X.XXX 'XX. Next, operating X.X I to yen sales to yen. to for our XXX the yen. expected increase Consolidated compared trillion forecast show is to billion forecast billion to previous will results consolidated increase expected billion yen And

income yen, Group our upwardly net attributable forecast and XXX taxes Sony to also to income revised yen. before We to billion our shareholders, for income forecast corporation XXX C for have billion

the cash I This our situation Services for excluding explain operating FY will by shows forecast XXX 'XX. yen. our slide consolidated of segments. our billion segment, segment business unchanged for now is the at in Financial each focus flow, Our

a sales First year-on-year an in and segment. XXX.X decreased game due hardware to titles. yen, devices. third-party deterioration income services to billion peripheral increased and XX% significant of and primarily sales hardware to QX XX.X year-on-year is to sales the billion in due PlayStation Operating network an increase XX.X-billion-yen a increase in software game profitability X FY yen, the 'XX of primarily

of sign those the engagement previous in X, software fiscal first half the to quarter quality major party Our a the previous the 'XX forecast. by unchanged FY exceeded users software sales, content game demand In stay-at-home that fiscal released. user this is in over the exceeded that sales year-on-year. increased. strong. second as the when same those time fiscal remains West the the from well year, titles in Total gameplay content year, XX% scheduled of add-on increase year Horizon an are be titles, same QX Driven Turismo Forbidden of quarter was the PlayStation forecast Gran positive add-on third-party sales fact software has previous But of and as decreased

software to exert we components, of and development continuing PlayStation for target the technical companies the titles. strengthen more. of platform fans Both titles, by contributed the PSX the Fire they acquisition impacting the product, announced and have software who the exciting waiting limitations even especially our to to records, for, meeting time, are momentum FY As chain, distribution month. expectations engagement to At the global more We're of every factors maintain this game expect are 'XX-unit hardware. supply the capabilities Strike play no of our people user of semiconductors. games is several these further BluePoint for capability, on effort and the PSX. here of significantly the gaming too supply track such To But and September as have we development sales there to in this of excellent many our superior of the change increase distraction supply

plan increase the to to revenues to development and PlayStation games these to PCs mobile expertise the Going forward, necessary capability the we and studios devices. deploy the studio of diffuse

XX%. As number a of to will and We fiscal of announced our to for aggressively invest continue the by result the in acquisition developers XX development beginning by capability of since will number to forward. the year, increase studios this four increase the PlayStation almost going plan

expected lower mobile XX.X that billion the income includes billion yen which application anime quarter -- media Next for an X.XX FY of visual a is the X.X-billion-yen operation of impact due of XXX.X income XX X/X in income the significant operating income operating is segment. 'XX and in the year-on-year year the that to to yen a the accounted Music combination yen of previous compared one-time same expected to revenue. from The trillion billion game XX% to of approximately was yen. of FY increased operating streaming previous are increase the billion to than sales, sales recorded of and Japan. platform, yen increase in our 'XX XXX business XX primarily QX yen and billion FY operating 'XX yen, to segment. sales which for to increase quarter to X.X increase forecast billion to gain the outside transfer a fiscal decreased Despite

Sadahiko Hayakawa

recorded QX grow rate, year-on-year music XX% XX%, at year-on-year revenue a a in in high publishing. continued XX% Streaming to music and in

income of fifth consecutive to market Japan, a where year Sony Music growth record is reach high for the for our this is year. Group, responsible expected outside operating fiscal which streaming is conspicuous, business music the of the

a XXth, enhanced business history the Easy efforts which renowned in Moreover, song discover We singer top released recorded made October an single most XXX in new years as to songs the after songs generate day. Spotify's songwriter, artists. nurture on business thanks XX Me, On ranking. to to six played QX, song, of was well hits by average continue In and on the has music Spotify Adele of global

month. will expectations high have album We next for XX, released be which

lie competitive artists the in business Sony offer in business the that the of to and can ecosystem could meet music as advantages such needs pictures. in is Group, global music we and of As opportunities part artists Sony's because express game fact the of areas, that diverse creativity our their

And In initiatives segment. for financial are believe financial artist-friendly strong and initiatives our addition, this the other them we many as performance enhancing we such anticipate these offering support.

the segment. first XX of FY-XX during expected X.X-billion-yen, our the due XX.X yen. income compared Primarily to begun increase marketing impact Box released the the our to sales operating this release and billion in yen to of is trillion Carnage, due primarily XX television release our performance in sales, billion billion expected in decreased of the is XX% opening and U.S. networks. to films significant pandemic. forecast theaters, QX, U.S., yen. a billion billion compared Let year-on-year increase XXX.X sales film we expenses films And and previous sales year-on-year income film media of the operating which related yen of in have forecast increase Despite to previous increase the of billion Next which yen, to days primarily in in Pictures increase revenue, approximately increased Office yen, three to release FYXX to productions to in theaters. XXX the generated is X.XXX Venom: to the was XX any [Indiscernible] major Be yen the its best month, There an

forward, theaters compelling to release from our are Way going No Spider-Man: and to IP We such Sony Ghostbusters: Afterlife planning as Home.

a not monetize the draw and films we On sufficient this Transformania directly a they to will to Hotel the streaming other did we theatrical such video hand, as as, audiences fiscal services believe during licensing year family-oriented plan pandemic. them by Transylvania

forward, aimed to value Company. SP to diligence a has in Company proposed parties to will to month, India. Entertainment, with Pictures to Under plan subsidiary of days SPE, reaching And stake non-binding continue XX of sheet, and Going our in are conducting a Sony environment the exclusively merger, of films. period term signed at agreed two a majority each entertainment long-term the goal the Last term negotiate for the mutual India is Primarily the agreements. which the the growing. releasing in market the TV sheet still respond linear resulting that among largest has a the of media is changes hold merge we an maximizing growing. strategy, rapidly it we economic merged flexible in is enterprises base due SP&Z to and the the of definitive younger world appropriately generation

broadcasting business of for distribution for Live, which are of distribution addition, India, digital due communications slightly it includes Sony and In infrastructure. rapidly a sales networks than improvements video India's XX% opportunity leading to grow is the a QX. TV to in beginning media less service the SP's business, Indian in the accounts in services

picture continue the distribution digital broadcasting area, opportunities seek profitability using we strengthen to our the service. business business content to of growth by this a segment the and to As TV our to assets plan expand proactively

the a X and, grown and explain market anime largest delivering in by acquisition joint in billion will SP sales the QX. forecast million to FYXX world that Funimation service, brought segment. impact of trillion. smartphones, XXX and Well, reflect and between results enhance year-on-year a anime billion, our at billion, distribution benefit and to significantly than by outside I increased billion, the spans to distribution compound Operating billion Now, We is the mix. Xth segment. a growth Y=XX.X and an Funimation, is paying foreign we world's the X% and to and Primarily significant and this create to more for to sales direct-to-consumer Japan compared previous by for of Y=XXX.X electronics anime of And products around with registered venture On sales to of the million of previous solutions since Crunchyroll and Y=X.XXX anime The to than of most increase due Crunchyroll video income the primarily sales to service are business more due of fans picture compared subscribers the rate in users is increase the expected Y=XX.X countries more Aniplex. beloved product to improvement to music FYXX the Y=XXX August to XX% content the of about Crunchyroll. than in operating to year, the our dedicated completed aim of increased has XXX compelling billion. platform forecast XXXX. next Y=XX exchange expected territories. decrease Y=XX the QX year-on-year, Japanese integration annual increase the rates

contents. for meet operations During because some led in supply Southeast pandemic COVID-XX unable the to and products we of our to QX, on the the resurgence were of factory Asia on demand the limitations

profitability of models. although to maintain a products. level high to decrease of In able TV shift a the and due to higher impact market maintained forward value-added panel during market QX, were our to we maintain However, our in could prices ability going prices business, rapid prices prices the we

So margin. we monitor inventory control have that to order and in we'll incorporated forecast market in closely our possibility trends and

In essentially year. half And these prior semiconductors fiscal flat in addition, of fiscal of shortages and limitations we to forecasted the on the these apparent the for the second have our the to especially of incorporating become of for previous second of recently fiscal have supply focus year. income risks was the impact year operating compared components, the incorporated half the

and year-on-year to segment. X% imaging 'XX to sales income XXX.X sensing decreased yen. operating the FY X.X-billion-yen billion solutions and is in Next yen year-on-year decreased billion XX.X QX

Our from previous the forecast to to yen unchanged previous sales forecast, billion but yen. forecast XXX expected to compared income operating billion remains XX is our 'XX FY increase

Naomi Matsuoka

unchanged previous the remains increase income operating But forecast. to Our forecast forecast billion FY XXX yen. for 'XX, to XX our is billion previous compared expected sales yen,

in the the exchange forecast business reduction of positive smartphone impacted components change supply and sensor to in with delays in the east. foreign There's FY our tight and impact and semiconductors in for production smartphone of for south demand Chinese in due to Although the rate XX weakness primarily situation smartphones expenses. no major mobile by recent the business general the and the was market,

[Indiscernible] minimize base, steps also financial fund-raise. our of We expand made impact price to the from our of and steadily. have progressing procured have in restriction on to this customer we the taken performance fiscal are on Therefore, quality year increase the

fiscal challenges, major the added foundries, our situation However, sensors to than from our more image issue. in fiscal our logic recovery enhance revised sensors the the a is continuing and digital is has cameras has for year. primarily quantity profitability. for sold automation. sales due necessary application, negotiate for in expected forecast year these securing increased upwardly The means value become next demand supply in the and but equipment. the for Despite market of waivers we to and tight continue to than anticipated, fiscal audio with next faster year demand stable and factory sensors market to visual helped This the is and growing for this mobile market market increase We're

So we the that image it stabilization forward. will the entire expect of to going business of profit contribute sensor

to Japan of by semi-conductor like potential which by construction the in discuss the I'd Manufacturing was Now, Taiwan a Semiconductor other announced factory Company, TSMC day.

this deepening the Ministry to could as possibility with in the extremely of almost strengthening of of to over shortage the the global factory. for studying solution is of believe TSMC further and to a has waiver in logic wafers expected our this stable world-leading part managing of Economy, Japan, semiconductor issue sensors collaboration all Trade with and we close TSMC, by critical a our adding factory building Japan expertise, outsources when securing semiconductor process problem production wafers of which to of We manufacturing the partnership Sony new the our is be and time, of supply own our Sony. TSMC's production Because logic a factories logic our semiconductor as business Japan at a serve possible factory are TSMC prolonged. technology assist in is for leveraging Industry the a image meaningful that sources nature building

billion study due to is Limited. to 'XX segment. Sony was subject revenue XXX.X discussion. financial FY billion the is Company year-on-year increased Last, to flat X billion an yen, further and XX.X services matter in essentially increase yen, services Life income Insurance this financial However, operating QX primarily profit and yen at

year previous Services to in during New billion last the to same exceeded previous quarter the FYXX Financial strengths fiscal that our the selling primarily Y=X.XX expected trillion. Corporation. is at Y=XX year, Sony increase to policy of business amount enforced of due the QX. our to compared revenue forecasts,

Our remains forecast unchanged for operating the income forecast. previous from

discuss And order repurchase approximately made the will to businesses trillion rest approximately in stock. long-term, we in medium was minority we investments was strategic to to an XXXX trillion, over equity I Lastly, the April Y=X from March accelerating Y=X.X to the of used obtain 's while grow used such XXst, are XXXX, Xst, acquire investment to stakes. Sony

Y=XXX We from XX, over billion Xst, cash in XXXX. businesses over to X generate of the from approximately expect the flow acquired April years March XXXX to

we cash a for accelerating part to allocation, to further future thereby use investments, from growth. As of cycle, resources previous synergy from this are flow invest capital returns used our investment, in intend the

especially with in space. and early also has increased opportunities invest to ability areas Our invest increased, entertainment steadily growth high have to the in potential

have Y=XXX sale week, to decided During amount game including stock and Crunchyroll, total already sale assets growth billion. is This to the my plan, of that billion. Last investment of mid-range the investments generated games, a remarks. the Sony assets capital approximately in strategic this area. approximately We business mobile upon under of to like and so been already plan such far casual the announced period reallocate of for from we plan Y=XXX including GSN investment current trillion, businesses make concludes The PSC. than repurchases. we total amount paid Y=X The companies more acquired, is

Operator

investors was to Q&A Totoki, Vice from and we Executive now X:XX, by Q&A CFO. Thank -- and you from very have much. It journalists analysts. the X and X:XX President From minutes for

to to Would from continue Q&A the you Also, very begins. Thank connect of number Q&A Would session the see Q&A kindly shortly. those in media have webcast. you advance, please the few have not kindly [MUSIC] for wait you waiting. can have designated minutes session on We advance, who to for and you registered a you wait in start until minutes? advance. much Those media XX the each scheduling are in who investors We registered Q&A. for analysts will

from going entertain media. Now, we're questions to the

before Corporate us Finance, Vice will yourself, Control, and when Please identify IR. Matsuoka, charge comes, Director, name. with President a like quick you turn Planning, a [Operator of call have and Senior questions. Also, CFO; question to your Hiroki in two in your question. periphery We asking ask Totoki, your you you volume we President, Executive equipment. name, prevent would to to questions to I Naomi Instructions] and ask when affiliation audio the limit turn off order the of feedback

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to [Operator instruction]. session. we'd Q&A Now, start like

first please. Inomata from - is NHK. Inomata The san - san your question,

Inomata

NHK, much. hear very you from Inomata can Thank I'm you me?

Hiroki Totoki

We Yes. can.

Inomata

you. questions. have Thank two I

question of emergency How to impact in And stay-home the Xst do state to The First be That's business? are impact and be demand? are would with the your lifted do was there time? changes recovering upon the And of COVID-XX. question. possible has the Impact. activities going impact economic also this in my you factor what gradually.

with with Second explain plant with can question, you, can and you extent for production. to them. is share a going TSMC, TSMC you going together in how of are candidate you working establish that you're semiconductor TSMC to is -- Taiwan the to Japan collaborate

Hiroki Totoki

Thank your both to going questions. questions. you your for Two I questions. of respond am to

have was position COVID-XX. on we In impact production a first well, worked well in of that. your of managing. as quarter, challenge difficulty it secondly, of regard COVID-XX. plant the logistics question, people to the and to and construction managed impact have [Indiscernible] TSMC First, But and our And large business. TSMC is With frontline second and the in

the pandemic in spread it the and Going may future might forward subside.

to respond tail In should and demand. business. pandemics knowhow to be was Last less, -- this stay home for we our the from And respond wind of less to have impacts, effect accordingly. the impact is This demand we year, a have accumulating large. such business, game we stay So wind was year, home tail

have makes us, industry TSMC's for of is whole. important stable as key factory to on question. Therefore, that mentioned much for as Japanese the we'll for new to supply this for as a it sense And -- is just us. and very the collaborate second front. a earlier, thing of Your procurement -- as way possible semiconductor I stable the logical

for are And of things matter going -- decisions is we're when discussion. course, the made to which still a explain it there Thank under to As many you. [indiscernible] are promptly, you.

Operator

question. next The

Asahi Suzuki please?. San, Shimbun Newspaper,

Suzuki

Asahi Shimbun for Newspaper, Can thank me? you Suzuki, the you presentation. hear

Operator

Yes. Please?

Suzuki

Thank two questions. have you. I

imaging that imaging First, and issue.

the -- be reach is wondering X.X Sony so Excuse if the As be and I going me. the quarter will say Company? you also again, I XX you in I'm for more hold will there? million about the will whole million involved but ask slow. up. And answer I sectors can targeting you believe also, understand. But a you it's miss automotive gaming. industry talking and I TSMC an are not second on stake The in units, that And collaborating, you are contribute that explained, automotive specifically, sectors production to Japanese picking to tourist. PSX it Can And that

you'll your two target? So be is questions. these possibility there my elaborate Can you a that? on So reducing are that

Sadahiko Hayakawa

respond your both you to questions. I will Thank questions. for

will targeting in we are of and new the new them going securing TSMC. support in Whether the stake a factory. operating towards that factory this are stable is hold about supply. and why to a And reason factory, building we TSMC are we the First the

in target. there currently this the And PlayStation to and a is once it not was Well the well, being you. disruption decided, precise, inform semiconductors and This in targeting is a be And in who are XX.X worldwide, the being second year's Meanwhile, hardware thinking. to number. place on an their supply putting promptly investment, constrained. logistics those mainly were fiscal And our having We And in larger and about And it X. second for exceed maintained. we'd different have impact comes us, Therefore they're to to PSX this platform you the PSX and under like study particularly units. waiting. supply that million year you. of likewise more changed something we And as quarter target. customers and waiting This we fiscal this And be think is device year, so this know, impact. are with is especially, when users amount measures, this so That details, discussed. investment, the the able is to want quarter. PS is to the possible and as the momentum having with But first to PSX. Thank and s as can less I many in effort our sales unit-wise, were

Operator

question Ms. is Nikkei. next The from [indiscernible]please. Nikkei, From

Bam

is you This from can Nikkei, me? hear [indiscernible]

Operator

Yes.

Bam

this the understand venture. case-by-case, to have equity investments? study this question, that, the you negotiation [indiscernible] And consultation. includes possibility. engage that time press the Normally conference they but we And comprehensive for didn't and they answer can their in joint TSMC in

So thus equity and funding provided. part is of that have investment factory of kind Do the is investment? equity owned the you some or

Naomi Matsuoka

you very particular question for issue. Thank about your this much

Let be redundant. me

Currently, made, And therefore, I that once would able immediately Let the make further. is you. decision comments the share decisions and with in way. with underway, And to are like I'm consultation discussion myself. not me is to repeat

Operator

on Can like we'd san from Now, Masuda Nikkei from question. me? [Operator please. instructions] [Operator you Shimbun, next to Instruction]. hear move the Nikkei. - to Masuda

Masuda

the Are have Second are Most going stable Can in in question, in Thank XXX this? the is area have seen of semiconductor, or monetary return is semiconductor to been conduct a going I you to games And you. you procurement, situation. managing stopped acquisitions forecasted. cumulatively, of questions. two there. can. specifically that? elaborate you and flow and Yes. also and And the the do much or how capital you was the you are how order then shareholders? this? shortage plant COVID-XX, In Earlier, impact their -- investment In to to Can difficulty allocation. operating me managing electronics. you conducting We due to impact what billion do had you is explain? cash to

Hiroki Totoki

your like you Thank to questions. the to questions. both for respond I of would

semiconductor asked chain. Common -- we inventory parts to what have we produce higher where supply semiconductor parts other us. and change affiliated In there's the can and can and design and -- do? stably addressing the will In components been the making First, shortage the for of question. -- common standardization issues used. ways, this focus shortage, procure, to of of order we so to of companies level also we various increasing the the other And be our a be than usual and also that components,

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up we negative this situation far, So managing half, second to minimize that I much the tell amount, rather, impact. how have is half been at there? difficult to year, we the fiscal the And think situation monetary continue. how well. much rather this to are least but first of impact is the I able as it's until In the think likely to

So a as from more for presentation, three risk to fiscal plan, touched upon allocation in this is in allocated going the segment. I in trillion be to your With the EPS question. in forward. we years, investment. than for Basically, the X factored strategic have my year, second Capital mid-range regards

buyback, and investments. and the to is the top shareholders most That have business making by the our strategic As capex followed share be the we repurchase priority, of growth Thank investment future, in of return we order. you. strategic stated, shares. is That for the will

Operator

Gassan, please. Next question. freelancer, Ms.

Gassan

Can you hear me?

Operator

Yes?

Gassan

I have questions. two

imaging First, sensor. imaging sensor. the About

about about changes you the to prevalent view I some is industrial to I happening think mix momentum, production not add smartphone future to Are that give going for do Well, you is you. do a smartphones with or you me portion, about to you you shrink the and know sales up. and a Are product applications? about you Can the product total Can but more like explain the X? in PlayStation term? situation understand mix? in changes? talk momentum. there and question. I is any The not for what the instability are you facing second going the what -- the come there your about about mid-to-long picking consumer Thank unit Therefore, Can plans? measures adverse would out need is or on

Sadahiko Hayakawa

image the and try sensor, to for and semiconductors respond imaging other smartphones, sensor. imaging will of industrial those the for is I cameras, sensors. It's mix for applications. or both Those to of those About equipment, Again, those questions. a

trend the scale. We much planning are to to have the I market therefore, smartphone about is But think And market. observe bigger. the we add-on. size And the in smartphone

overall many less people. We have market. in PSX. about to as about to carefully We, the so ratio-wise like in And XXX This units. in monitor million as what we'd it's part. is That's is is release PSX far, what first MAU, happening XX%. than this early smartphone as possible, we have mind. But

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Operator

Yaskawa Time [Indiscernible], next San, From and is the will question. please. last question the getting therefore, be short,

Unidentified Analyst

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Operator

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Sadahiko Hayakawa

very you your question. for Thank much

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Operator

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have like session. -- the to you Q&A if begin we'd Now,

If you Yes. questions, [Operator any have Instructions].

The first question, JPMorgan. san, Ayada please. -

Junya Ayada

Ayada, Thank much. you JPMorgan. very from

Junya Ayada

have I each. one semiconductor, and Game question

In the to and over page on active past about user, member members on the the PS basis analyze of has have Plus stopped a and quarter active Monthly increasing. a games. supplementary Plus decreasing User decline. it quarter but is And monthly been PlayStation is users X, material, engagement. First you quarters, how numbers.

collection you expecting Third a Quarter, in timing, increasing plus number of period, Christmas and At there to will are Plus? expecting towards stop the of increase. decline that PS this the that quarterly, contributed are be MAU the PS members. the will not we number

from might become being, the a about mix becoming putting encouraged logic second let earlier customers, year, san let wafer in have sense this regrowth with know that, the please from customers you this of mobile -- talked a relation as that, next increase aside especially and But us any and input in size usual, ideas, future. actual question. me results. the the concern Totoki know. of If larger. point time in makes - Also the and that area, My of procurement It to the capacity mobile toward for future will in

you with of with focus the talk customers? there with customers? the discussion change What as a is the us your So share the you ideas? Can is

Hiroki Totoki

both questions the much to questions. have very asked. am Both you going I of for questions, you that to Thank your respond

point, this the do triggered was of decrease has was question. and First It the number members, PS was there How analyze. already temporary a temporary to and we membership. the at the PS of bottom. this rate, the plus June, as is difficult is the plus a at I what the MAU, end -- pinpoint, not phenomenon of active monthly any users but the look members it at in decline hit to trend

Second quarter, taking to measures increase especially including their promotion activities increased, was membership.

fluctuates as we'd month. The end average And demand And it disappeared wrong three-month of quarter recent through XXXK. situation the and third second or strong holiday a to second is not quarter seasons, positive the number expected. factor we And to already demand, to like the at input month numbers the total of with at XXXK as end, 'XX is and we such about there then up quarter FY look the the current to all. in becoming result, analyze. in promotion second per quarter is After the has per I&SS And stay-home a has move is come momentum. capacity. due stay-home not wafers And strength the is XXXK model the and -- this whether that the changing mix. is year-end So it ended difficult effective is

first our was XXXK. quarter, focus As

as In So it the simple of is wafers, full about the XXXK. same practically of level average the three number is at third forecasted quarter, months capacity.

utilization. full We future. discussion Specific a size have expecting larger customers, going The likely filled. trend only the next that trend we're is as is And expected change to in looking larger we smoothly. by as And the talking and they disappearance in with not created -- customer to longer of larger into continue. but vacuum year, are is completely not the forecast, it of drive size their size China with

the So compared I what to year. explained might slightly, slow have down last pace

Operator

SMBC question. [Indiscernible] Nikko. please. Next

Ryosuke Katsura

your understand be the to and And those effect. question. chain add-on think on you. I that you issue I&SS, there elaborate and it India's half slide. it? in XXX X an that impact strategic huge in than capex And more is overall of believe So and would in X.X. The -- are just investment about how is impact last that see so. Can investment, the ask said including Zee will made page is different the categories included second do if compared trillion presentation other in? impact said there then we I we're could the hear once you billion That questions, impact, here impact talks as allocation, size X not, that to your a which and the as billion you segments. or years, and is thinking or the COVID-XX, the on just you in if of capital in you Thank that decided. about once page, pandemic It's XX hypothetical this XX why the and But me? it's please on included like is, the More year year, well Hi. the hear yen. But XX two cash if to up, be comes of was supply the other which game extent asked first, is included overall I want risk has -- it's than to to behind said you Xnd wondering allocation but XX reason the public, TSMC a will X yen. trillion than this. I and already And been yen. pandemic

implementation, I limited, think you size of terms in elaborate? so is the still can

Sadahiko Hayakawa

well, Thank you supply questions. your the for first your about first risk. question And chain

have you said, is to is the amount you rightly it what As for And EPS, close saying. are included.

and an of it case the year's that not on It's be aggravate but and PSX, will cannot other supply in. and this is Estimated, EPS, there say will as impact different I just totally not shipment But sure late, unlike performance. those segment were impacted. anything factored believe, network impact. in will be which So loss if hardware I segments, but is well, delay fiscal I producing profit for also is because now, this gain think direct

MZ to That factored this the we and talked about is allocation EPS. for included. about the I that. general -- but that it's approval and and maybe not we capital to Z. it'll hold If Matsuoka-san go Please whether under understand strategic thinking been the understand to about going content are behind is here the situation. those included we this current made what that fiscal And have already The explain, decided. on where case, the I Those about specifics, on the decided? investment, a TSMC. is we be for to follow year up in and happens in trying have I together it's think put stake, official talk the is very there capex, that are has ones in detail’s this So what you TSMC, be to in explain But nothing decision. a to Please if now the a is is investment, it'll under included decided. And avoid the ones have terms, fiscal is already the discussion year, after. can And already from forecast. risk made No, here into included but strategic will it have an current me that, be if difficult capex. still for I About which

in is diligence finalized explained, included order decided. the I So to have stage, in ones decided and doing that get that Z, already is yet. to due still that been we But are nothing and as

Operator

from the Securities, please. move question. on Now next to we'd Mizuho to Nakane-san like

Yasuo Nakane

much. Nakane me? you you Securities. name Can Thank Mizuho My from very hear

Operator

Yes.

Yasuo Nakane

this I time. related have two are the results to They consolidated questions. not

first The will new figures Crunchyroll there games, included emerging. disclosed, and maybe Mr. question Zee Until many are connections connected and is, Yoshida people. mentioned be the MLB billion other but X to in

year, India, mentioned. the million So XXX And understanding that business extent that what group. its plan business currently, pictures segments synergy is September, figures? so strategy basis, related that media how the the you clear is to strategy. are to strategy like the the term, according think I my the India India, end own the in under prospect? segment collaboration with far, on has is the emphasized And still its has you therefore, each instance each better. the And And own. looks the the your current what and within of in anything it those second is about at is way at and -- situation for is possible, is pictures in network films this to like music, the and there in regional different and America the And the between disclose fiscal possible group and And what and the project but to moment, that a getting question going of mid-range disclose, and us. share that At if please can Crunchyroll the if you end

know. you Thank group wide, us please you. any have If strategy, let

Sadahiko Hayakawa

So long-term the And that answer my with our challenge interpret. target. defined Matsuoka-san I your also, as people and our from is way the connection is will that and you, the billion And -- the questions questions vision. X our That's -- questions answer. there will that I supplement X for And -- aspiration.

that every show, or subscription. quarter we every like so And year, it's not something like fiscal

following need make believe another with And to Personally, are and they're engaged cycle, And group kinds has so any X incorporated, that year, activities I we maximized. major to strategically been In also connecting I are that we share for do did not is the and policy you. And as able investments synergy activities. order the we vision, that -- that and the throughout a fulfill have of in fully one we yet. information about executed, updates of the finalized different with billion think to that people and disclosure,

question whether In feedback. group-wide vis in billion -a that Sony the this question, a unit is your the very connect it, people, group progress India. some announced give hope - is we answering promote what Live, and the India, So a able and business and vis And driver second, there is observe important do the within to us strategy that and growth. to with are we trend that you I the

opportunities within the reason information top the And among held. is other is things group, executives the project the engaged for and in discussion India. through that of areas. The the we the deal constantly So in business the

not dialogues, in have liked and supplement? just Matsuoka-san, be any to translate to a this we've my that will those view, manifested synergy you into actions. through and group do limiting So point slogan, as realized

Naomi Matsuoka

pictures And area, is mentioned, And growth. to in million forward a and and you synergy exist the forward, gain going potential as going India two we're the September, great Sony the as We'd music. the the big for the know, Y=XXX there, full end The a in -- increasing India. number. India, a it's use the music. also the subscriber Totokis video The been live at is between and has to the size potential of does like now,

dialogue taken potential will of be that on. a discussions and been And be also into has So lot going consideration.

Operator

the next be running person Ono, is so Time MUFG person. last Stanley Morgan sir. will Securities, the short,

Masahiro Ono

changes Ono supply I'm the on results, -- the down related for mobile unit in mobile, in according people getting I a think back market there's by Sony CMOS has to is order christian of XX% be by about chain. the the the market that is share the say. the do mobile, in Stanley. Morgan first custom you. have about next sensor we the unhealthy, confirmation that support you from Thank [Indiscernible] and the first refer Idasan(ph), And mobile can gone regarding the some last Currently the XX% in understanding. way the a CMOS to time to the will to lowering profit. improvement focus or and further is price and changes mobile, quarter mix inventory price question go going year how in what in time you to sensor AV extent with the reach the the of out upon of us, look future, to to you at relation at market? are a the question, the basis monetary my XX% to camera, year-on-year. amount as mobile ratio for And AV for Including that and

for Sorry, question. So can you please the explain vague this?

Hiroki Totoki

you I'm the how this for size If of in the It's high, margin The industrial look explain mobile mobile Thank market, at mobile market? machine continue is will stable the your to course, expand. this, much but stably do AV, much And and sensor, very and to terms -- for I of market market larger. market of the of for is questions.

the number more there the of at all. the with and course negotiation inventory of XX You we have ratio move and inventory but such and the the to voices fixed XX, of of customers, the for customers, hear sensor negotiation minute not to Prices, to with level larger is discussion that. is both. in than knowledge, market pursue [Indiscernible] it higher do source is and which said even difficulty of mobiles the kind will extent the the my Well, of

to So and maximized. depending will have our upon strengths of needs for we the customers, where grasp be in the customers, the needs the of field can competing we that be

production Thank will from So capacity the be increased strengths remains policy remains unchanged. as much. increases, R&D. trend unchanged. the you demand all as This very big as The That's me.

Operator

participation. end you for for meeting. to Thank It's time now QX today's earnings announcement your us