Yasuo Nakane

Yasuo Nakane from Mizuho Securities Co., Ltd. asked about the management philosophy for balancing centralized group control with the autonomy of individual business units. He also questioned how incoming CEO Hiroki Totoki's hands-on management style might differ from Kenichiro Yoshida's approach.

Answer

Executive Hiroki Totoki explained that the key to balancing group oversight and business autonomy is the company's shared 'purpose.' He stated that management's role is to connect this purpose to profit. Drawing on his hands-on experience, he stressed the importance of providing support where needed while avoiding interference in well-performing businesses, aiming for a balance between centrifugal and centripetal forces.

Yasuo Nakane of Mizuho Securities asked if Sony's share buyback policy has changed. He also inquired about the minimum target for the shareholders' equity ratio (excluding Financial Services), which has now surpassed 50%.

Answer

Executive Sadahiko Hayakawa confirmed the buyback policy remains unchanged, viewing it as a strategic investment. He noted the company is strengthening shareholder returns with a new 40% total payout ratio target. He also stated the equity ratio target remains above 40%, and Sony will work to improve capital efficiency.

Asked the new Chairperson for his key observations after four months in the role, his strategy for FY 2025 given the lack of major first-party game releases, and the company's policy on shareholder returns.

Answer

The Chairperson noted a need to better align individual business efforts with overall company growth and profitability goals. He sees room for improvement in business discipline at game studios regarding budgets and schedules. On shareholder returns, he stated there is no major change in policy and it remains a key part of strategic investment.