Thank you very much for joining us today in spite of your tight schedule. It is time to start fiscal 2022 Sony Group Corporation Corporate Strategy meeting. I'm happy to serve as a moderator today. I am Ishii of Corporate Communications. First, our Chairman, President, and CEO, Yoshida, will present corporate strategy with a long-term view. Q&A session will follow. The whole session is scheduled to last about 90 minutes. Yoshida-san, please. Hello, everyone. Thank you for joining us today. First of all, I'd like to express my condolences to those who have been victimized by Russia's military action in Ukraine. We hope that this crisis will be resolved, and that peace will be restored as soon as possible. The Sony Group continues to provide support to mitigate the humanitarian crisis. First, I'd like to discuss our purpose. The key word in our purpose is Kando. People are the ones who create Kando, and they are the ones who receive it. Our corporate direction is getting closer to people, both creators and users. However, there's another group to whom our management team needs to get closer. That is our employees who share our purpose and who drive our businesses forward. We are continuously devoted to managing Sony over the long term based on Kando and on people, including our employees. As a company centered on people, we consider it important to fulfill our responsibility to society in which people exist and to the global environment, and to contribute through our technologies and businesses. The Road to Zero plan we have been pursuing since 2010 is an example of our emphasis on responsibility. Today, we announced that we would be accelerating by 10 years our targets of achieving carbon neutrality and 100% renewable electricity use for the entire Sony Group. The Sony Group has six business segments that are centered on Kando and people. However, in addition to that, I think of them as three different business domains. These are businesses that move people's hearts, businesses that connect people to people, and businesses that support people. For four years, since I became president in 2018, we have been continuously investing in the growth of each of these three business domains. First are our businesses that move people's hearts. These are businesses that create content IP or Kando itself together with creators and deliver it to users through direct-to-consumer, DTC, services. Over the past four years, we have executed over JPY 1 trillion in strategic investments in this area. Principal investments include the acquisition of EMI Music Publishing in 2018 in the IP area, and the acquisition of Crunchyroll in 2021 in the DTC services area. In the DTC space, we value our relationships with partners who deliver Kando to users. At the same time, we have a long-term vision of Sony directly connecting with 1 billion people interested in entertainment. The purpose of this direct connection is to learn from users. Businesses that connect people to people provide technology, products, and services to create and experience Kando content. At the core of this area are our electronics products and CMOS image sensors. Smartphone mobile devices have turned users around the world into creators, and CMOS image sensors are a primary component of these devices. We have invested approximately JPY 1 trillion over the last four years, and we retain the leading share in the image sensor market, which is still growing. Our efforts are centered on automotive and IoT sensing as growth drivers going forward. Health and assurance are a prerequisite for people to create and enjoy Kando. Our medical and financial services businesses are included in these businesses which support people. In the medical business, products that leverage our optical disk technology to study cells are contributing to research on cancer and viruses, and to the manufacture of cellular medicine. The financial services business is a business that we made into a wholly-owned subsidiary by investing approximately JPY 400 billion in 2020. We provide peace of mind and convenience in daily life to over 8 million customers in areas such as life insurance, non-life insurance, and banking. As I have just outlined, we have actively made investments in these three business domains to increase our corporate value. We have set growth in earnings per share as a discipline for management. We have positioned investment in Sony through the repurchase of our shares as part of our strategic investment. Going forward, we plan to continue to make repurchases in a flexible manner. We intend to keep managing Sony with a focus on Kando and people over the long term, and we plan to increase our corporate value through strategic investments in content IP, DTC, and technology. So far, I have discussed investments in growth across the Sony Group. From here, I'd like to talk about three points. The first is about our game, music, and pictures businesses that move people's hearts. These three businesses have continuously grown since the fiscal year ended March 31st, 2013, when we established Kando as the key word of our management. In the previous fiscal year, the total sales exceeded 50% of our consolidated sales for the first time, and their operating income accounted for two-thirds of consolidated operating income. In the gaming area, we're trying to get closer to creators through the creation of content IP, while also getting closer to users through DTC services. The PlayStation 4 and PlayStation 5 consoles are one aspect of this business. We plan to further grow the console business with the 18 million PS5 units we expect to sell this fiscal year. We are also continuing to develop PlayStation's own online electronic commerce store in various regions. The PlayStation Network, which is the largest DTC service in the Sony Group, is another important platform for this business. It generates more than JPY 1.8 trillion in sales over the network, and more than 100 million accounts access the service currently. In order to strengthen PlayStation Network, we will significantly renew the subscription service, PlayStation Plus, to include the cloud streaming service that we have been providing since 2015, and roll out the service in June. As is shown here, we're working on further group collaboration regarding the PlayStation Network. As a provider of this business, we value our relationships with third-party studios. At the same time, we have made several acquisitions and equity investments over the last year in PlayStation Studios, which are our first-party studios. In addition, to provide access to our games to as many users as possible, we are rolling out our PlayStation Studios titles onto PC. Finally, there is Bungie, which we agreed to acquire this year and for which we have high expectations. We believe it will be a catalyst to enhance our live game services capabilities, which I will discuss later. Our acquisition of Bungie also represents a major step forward in becoming more multi-platform. In the music space, we aim to be the closest company to artists and songwriters, and we are focused on supporting them from the creative side. This market has been expanding since 2014 due to the growth of streaming services. As a leader in the industry, Sony is continuously producing hits from artists such as Adele and Yoasobi. The forces driving the growth of the music market, aside from the major labels, are independent labels, independent artists and distribution partners that are diversifying. We provide various support primarily to independent labels through The Orchard. We have also acquired Som Livre, the largest independent label in Brazil, a growing market, and we are strengthening its ties with The Orchard. In addition, we're promoting efforts to make more artists in growing emerging markets known to the world. In India, we established a new label to further expand our relationship with local music creators. We are also supporting the spread of works from African artists globally, such as Wizkid, who claimed number one on Billboard's World Album chart last year. We are strengthening our support of independent artists through the acquisition of AWAL, which together with The Orchard, provides them with recording and distribution services. On the DTC side, which delivers the music of artists, we mainly collaborate with partners who operate music streaming service platforms. Such platforms are continuing to grow. In addition, we are collaborating with service partners in various other genres to expand the reach of our artists. The way music is made and enjoyed is expanding in the social media space. In Japan, social media is leading to the creation of new hits by enabling people to find and popularize new creators. Music is not just delivered. A community is created that connects artists and fans. Sony is working to provide venues for those connections to take place and services to connect those people. Our support for music creators who produce emotionally impactful content that moves people's hearts is not limited to the creative side. We are also conducting initiatives across the globe to support the wellness of our talent. Next is pictures. As in music, this business works to support creators as well as to create and expand content IP. Due to the growth of video streaming services, digital viewing on TV and mobile is increasing. At a time when both quality and quantity are being sought, we have made several acquisitions in the television production space and are working to strengthen our IP creation capabilities. Meanwhile, in the motion picture space, we are emphasizing theaters which are rooted in physical presence and life experience. We find that this approach strongly motivates various creators to come work with us. The theatrical release, which has had the largest success for us, is Spider-Man: No Way Home, which overtook Avatar in terms of cumulative box office revenue in the United States and now ranks at the third highest in history. We expect to continue to expand the world of Sony's Spider-Man Universe of Marvel characters going forward, as we did in April of this year with the release of Morbius, a Marvel character. Uncharted is an example of increasing the value of our IP across the Sony Group. We plan to continue to increase the value of game IP created by creators by deploying it into new genres such as motion pictures and television shows. Although it resides in a different business segment, Demon Slayer: Kimetsu no Yaiba is one of our most important IPs. The original comic has been adapted by Aniplex to various forms of entertainment, including the anime services, anime series. In addition to theaters, distribution partners are important for us to deliver Kando content to people. We are taking advantage of our position as an independent studio provider to accelerate our collaboration with various distribution partners. I call the community of people who share Kando experiences and interests, communities of interest. To get closer to user motivations and learn from them, Sony also focuses on direct delivery in specific areas. One of them is anime. In March of this year, we merged Crunchyroll and Funimation. Another is India, where we are growing SonyLIV, a DTC service rooted in local culture. Also, at the end of last year, we signed definitive agreements to merge Sony Pictures Networks India, a subsidiary of Sony Pictures, with Zee Entertainment Enterprises. We believe the merger will help further accelerate the digital service businesses in the rapidly growing Indian market. Next, I would like to talk about two Kando spaces that can be frontiers in the future. The metaverse and mobility. As I mentioned at the beginning, the key word of Sony's management is Kando. Creating and delivering Kando is something that Sony has done since its founding. The ways in which Kando is delivered have expanded thanks to technology. Kando can now be delivered via broadcast, packaged media, and networks. The entertainment experience over the network is still evolving. From downloads to streaming, and now to social media, interactive experiences whereby people can share time and space are evolving. I think that the essence of entertainment is to be live, whereby time and space are shared. Experiences over the network are also evolving into more live ones through technology. The technology that connects people in this live network space derives from game technology centered on real-time CG rendering. As a result, genres such as games, movies, and music have come to intersect in the network space, and the ways of enjoying each are expanding. Fortnite from Epic Games is one example. It has evolved into a social place where time and space are shared. It is not just a place for playing games. As a result, games have become a place of new expression for artists and a place to increase the value of non-game IP. In this way, the metaverse is at the same time a social space and a live network space where games, music, movie, and anime intersect and expand. Now, I will discuss some of our efforts in this area. In the game space, our efforts center on Bungie, the acquisition which we agreed to this year. Bungie's strength is in live services. Rather than having creators produce a game by themselves, they learn from user feedback to continuously evolve the story and realize an endless game world. Subject to the completion of the acquisition, we would like to learn more about live services from Bungie. We also plan to launch more than 10 live game services from the PlayStation Studios by the fiscal year ending March 31st, 2026. Sports are also live entertainment. I think there is an opportunity to create new Kando through technology here as well. One example is a partnership with Manchester City Football Club. The stadium is an important space for the sports community. By reproducing the stadium itself and the athletes in the network space, we are creating an experience where users can enjoy playing without restrictions on location. When it comes to live experiences that share time and space, music immediately comes to mind. Sony Music artists have already performed many live performances in game spaces. In addition to these efforts, we are working to create new live experiences by connecting artists and users, such as virtual concert by Madison Beer and the virtual space project that leverages our volumetric capture technology. Sony has a variety of entertainment businesses such as games, music, movies, and anime. In addition, Sony has the game technology we have been working on for many years. We will work to leverage these advantages to create a live network space that connects creators and users, while also generating new Kando experiences. Sony is also working on new entertainment in real space. STAR SPHERE is one example. It is a DTC service in outer space that uses cameras mounted on artificial satellites. The satellites are expected to be launched in October or later this year. We also have LinkBuds, which offer a new experience overlaying digital sound over that of the real world. In this area, we are working with partners such as Microsoft and Niantic. Mobility is an area where we see great potential as another Kando space. In 1979, Sony created a new lifestyle whereby people could carry around the Walkman and enjoy audio anywhere. Now, we are aiming to turn the mobility space into a new entertainment space. The mega-trend that has transformed people's lives in the 21st century is mobile, and we believe mobility will be the next mega-trend. Currently, there are more than 1 billion vehicles in operation. The combination of mobility with information and communication technology will make these billion vehicles into services over the long term. In other words, the functions of the vehicles are being defined by software and can be updated through services. From an environmental point of view, in addition to whether a car is electric, it is essential that cars can evolve after purchase. Based on this structural change, Sony aims to contribute to the three areas of safety by improving safety, entertainment by transforming the mobility space into an entertainment space, and adaptability by supporting the evolution of the vehicle. In the safety area, we will contribute to safer mobility through our sensor technologies, such as CMOS image sensors and SPAD depth sensors for LIDAR. These sensors are also a growth area for our image sensor business, and they are beginning to be adopted by many automotive manufacturers. Adaptability enables the evolution of vehicles in terms of safety and entertainment. We aim to contribute to the advancement of mobility, which continues to evolve in terms of safety and functionality by leveraging the cloud service knowledge cultivated through games and aibo. We have been working on the research and development of Vision-S. As a result of these efforts, we have learned that to contribute to the evolution of mobility, we need to commercialize the vehicle and present it to the world, but that we cannot do this on our own. Thus, we announced a strategic alliance with Honda. Through a joint venture we aim to establish in the future, we aim to start selling electric vehicles in 2025 by combining Sony's technology in the three areas I discussed with the mobility development capabilities that Honda has cultivated over many years and their technology and knowledge of vehicle body manufacturing. So far, I have discussed three businesses that deliver Kando, as well as new Kando spaces as our growth area. Lastly, I will discuss technology. Sensing and AI technology play an important role in ADAS, which supports the safety of mobility. Sensing and AI technology are not limited to mobility. They support the evolution of entertainment as well. In the area for audio and video that we have been working on, the importance of sensing technology that captures the real world and deep learning that learns from the world, as well as AI technology is increasing. For example, we have real-time Eye AF installed in our Alpha mirrorless cameras. By combining the image sensor, image processing engine, and AI, we are evolving recognition capabilities to the eyes of animals and birds. In addition, AI has started to be used in game and movie production, and sensing technology is also being used in 3D model production. Also, in the sensing and AI space, virtual production technology that uses Crystal LEDs, like the one used here, is an example of technology that gets closer to creators. This month, Sony's virtual production won the award shown here at the world's largest electronic display society. In the virtual production area, in collaboration with Epic Games, into which we decided to take an additional investment last month, we plan to provide a live video capturing solution that allows creators to check the image combined with a CG background on the set. In addition, Hawk-Eye's tracking system converts athletes' movements into data using advanced AI technology, virtually recreating it as 3D content in real-time. The partnership with Manchester City Football Club I mentioned earlier uses this system. The next generation virtual reality system, PlayStation VR2, is a technology that gets closer to users. VR is a live network device that enables people in real space to enter virtual space. This product uses technology that senses the movement of the user's eyes to create a high-resolution image in their central field of view. Other examples of technology that leverages our sensing and AI technology include an AI agent for racing that increases the value of the experience in the game space, and aibo, which grows by interacting with people by nature of its innate curiosity. The evolution of entertainment is found in our purpose, creativity and technology. As I have explained, Sony aims to grow by investing primarily in content, IP, DTC, and technology, and by delivering Kando to the world, along with our partners and our 110,000 employees. In closing, I would like to show this video about the Sony Group's purpose. Thank you for your attention. What is Kando? It is the feeling of being alive. It is the energy that empowers others. It is something that is shared around the world and brings people together. When Kando unites us, it connects us to the future. It becomes the power that creates more Kando and the driving force that moves the world. This is why we will continue to deliver Kando by unleashing creativity and enhancing technology. We promise to enrich people's hearts with Kando experiences by creating extraordinary content and vibrant communities. To fulfill the dreams of creators by providing the finest tools and the ideal environment. To provide safety, health, and peace of mind to the world by supporting people's daily lives with cutting-edge advances. We cannot accomplish this alone. We want to think together, create together, and enjoy together. Let's move forward together to a world where everyone can find Kando in their lives. Sony's purpose: fill the world with emotion through the power of creativity and technology. That was the speech by Mr. Yoshida. Q&A session for media will start at 10:40 A.M. From 11:05 A.M., Q&A session for investors and analysts will start. Each session is expected to be about 25 minutes. Please be reminded of the process for asking questions online. Those participating online who pre-registered for questions, please call the pre-assigned phone numbers. Those without pre-registration, you can listen to the Q&A session questions and answers. You are cordially requested to wait for a while. Thank you. Q&A session for the media will start shortly. You are kindly requested to wait for a few more minutes. Thank you. Thank you for waiting. We will entertain questions from ladies and gentlemen of the media. To answer your questions, we have Chairman and President and CEO, Kenichiro Yoshida. Executive Deputy President and CFO, Hiroki Totoki. Senior Executive Vice President and CTO, Hiroaki Kitano. Those with questions in the hall, please raise your hand. Those outside the hall participating online, please press star key followed by one. Please limit yourself to two questions per person. Any questions from the floor? It's towards the right, the first row, second one from the right, someone in black. Thank you very much. My name is Sasaki from Toyo Keizai Shimposha. I have one question. This is for Mr. Yoshida about the Vision-S as how to make business out of that. PlayStation, in Sony's case, it's in hardware. It's a strategic price set, and for software, for the monthly charges, you are making profit. In Xperia, the share is low, but the image sensors showcase it's playing a vital role. Now, Vision-S is after selling the hardware, are you going to put emphasis on the monthly charges, or is it going to be the showcase, running showcase for you? Thank you. Vision-S or in the areas of the vehicles, that was the question about the mobility. Probably Mr. Totoki can supplement me. Today, in my speech today, there are two areas, metaverse and mobility spaces that we can contribute. As a timeline, the latter one, the mobility, has longer time span. What we should think about now is, how we can contribute in this area or space. If we can contribute, then the added value will follow. The area of our contribution, as I said, there are three. Safety, primarily with CMOS sensor, we believe we can contribute, and gradually it's expanding. Adaptability is another area. Entertainment, ADAS, well, these will evolve, and we need to update these. Finally, entertainment. Those are the three areas we make contributions, and then if we are successful, then we can make a success out of our business. Well, this is a long-term, thing, in the world subscriptions, software updates. There are various cases. For us, we do not preclude any possibilities. With a long-term view, we would like to study the possibilities. Thank you. Now we'd like to move on to the next question. Yes, in the center. At the very front right, the person with the gray suit, please. Thank you very much. I am Furukawa from Nihon Keizai Shimbun. I have two questions to Mr. Yoshida. My first question, post-COVID-19, how do you look at the world of entertainment? In your explanation, you said that sales have become 50%, and this time you are expecting 55% in entertainment business. As the economy becomes more normalized, how much, you know, entertainment is expected to grow post-COVID-19 if the home stay situation will continue? That's my first question. May I ask you a second question as well? My second question. Let me ask you my second question. As a platform, your view on platform, in your explanation, you said that through Bungie, you will become multi-platform. You have shown your expectation. Motion pictures and you are not a platformer. You have shown the strengths as an independent company. As a platformer, strengths and weaknesses, how do you recognize that? For example, Netflix and Amazon, they have content production close to JPY 1 trillion or JPY 2 trillion per annum is spent. Compared to these players, if you become a platformer, then what kind of strengths will you have? And the kind of strengths that the competitors do not have, and what would be the platform that Sony can become that other peers do not have? Thank you. Your first question is about entertainment post-COVID-19. Second is about platformer. Thank you for your questions. I would like to respond. The second question, I would like to ask Mr. Kitano to make supplementary comment as well. First, post-COVID-19, how do I look at entertainment? This is a rather personal view. In 2005, So-net, I became president of So-net, and I said externally that the 21st century will be the era of entertainment, and network is going to be a major player for entertainment. That thinking remains unchanged now. Through network, entertainment is provided, and basically, this is the growth market. However, how it is delivered will change. Download, streaming, and metaverse time of real-time space, I explained. It may change, but through network kando content delivery, this is a market that will continue to grow. Now, the second question. I do not look at Sony as a platformer. I said that I want to be connected with 1 billion people. That is the vision of DTC. At the same time, community of interest, we come closer to the motivation of the people and learn from the customers. For 1 billion people, it is not to be providing by a single platform. In the basis, we fill the world with the Kando, that's the purpose. For that, we have to come closer to the creators, and in DTC, learn from users. Including platforms with partners, we will be collaborating with partners for delivery. That's important. Platform, providing platform, from that perspective, our thinking is diverse technology and forum are to be provided. That's the key. Especially, what platform is provided is the key. As Mr. Yoshida explained, metaverse will have growing importance, and not a single metaverse appears. That is not the case, but rather various diverse metaverse will be provided. In this metaverse, Sony Group will have a strength that is realistic image, a type of realism and sound. For example, the 360 realism and the simulation, Gran Turismo included. In the world of game, we have developed such. Integrating these very real metaverse can be provided, and we do have the technology. We have strength in providing such technology. GT Sophy, strong AI agent can be created, and we have accumulated such technology. By integrating these technologies that we have, we can provide various possibilities. The key is not the size, but rather with creators. How we can inspire the creativity of the creators and the users, listen to music and the listeners. How we can provide the inspiration and deliver Kando. That is important mission of ours. Along with that thinking, we would like to further strengthen the technology that we have, and as necessary, we diversify platform, whether I should call it platform or not, but we'll be providing such forum and also technology. Next question. On the right-hand side, second row from the front, someone in gray suit. My name is Shimazu from NHK. Thank you very much for your presentation today. I have two questions. One, for EV business, and you announced the collaboration with Honda. I'm sure discussion is going on. For example, anything that you had not assumed, any challenges that you had not assumed at the outset or any schedule of establishing a new company by the end of this year? What kind of a team are you going to have? Where would be the headquarters? If you have any ideas, please share with us. One more point. In game business, for the last several months, large-scale investments have occurred, in my view. For example, well, in the series of investments, are there any shortages or something missing you may feel? Any technologies or any areas? What is lacking or missing, do you think? Based on that, going forward, what kind of investments are you going to continue investing in the games? You are talking about metaverse, but what kind of things you are going to make investment going forward? Thank you for your questions. First point, about the mobility joint venture. Second question is about the game. Allow me to answer. Maybe Totoki-san may supplement my comments. For a joint venture, we are in the discussion now. Each one of us has different business and different history and culture. Naturally, the languages we use may differ between us. New values have to be offered. On that point, we agree. We are making progress, in my view. With the due, when the time comes, we will make appropriate announcements. About the games, as a growth driver, we will continue investing in games. As I said today, we expand into spaces, and another important point is the live services. Well, various ways to express this, but in case of Bungie, and when I discussed with the management at Bungie, I learned that the live service is being with the users and develop the games in an interactive manner with the users. That's what the management of the Bungie taught me. On that particular point, we have much to learn. We must learn, and we make investment. Thank you. For games, the first-party development capability and quality have to be improved. That's one of the major pillars of our strategy. If there are opportunities, acquisition of such studios can be discussed and reviewed, and will continue. Thank you. Now, we'd like to move on to the next question. Yes, in the center. Third from the front. Left-hand side, the person with the gray shirt, please. Nishida, freelance. That's two questions. First, the direction of technology investment. Image sensors, you have been and you will continue to make aggressive investment. The Metaverse, and how long will it take for recovering your investment? And what kind of investment, and what kind of technological development is needed? These are my two questions. Thank you. Thank you. Investment into technology and Metaverse are the questions. I would like to respond to your questions, and then there will be some comment from Kitano-san as well. Technology investment, we would like to invest, especially CMOS sensor. We have to make CapEx other than strategic investment. CapEx has to be made as well because production is there. As I mentioned today, AI is also an important technology. Most important in this area is investment into talent. Then display area. Silicon is used, and so we have to make investment into silicon-based OLEDs, and there are other areas as well. Kitano will be making additional comment later on. Metaverse, as you rightly pointed out, business model, how the business model is going to be is an important challenge for us. Metaverse, there are various ways of looking at it. For example, communication-based Metaverse or NFT, economic area-based Metaverse and digital twin, industrial-based Metaverse. We are an entertainment company, so we have to look at it from entertainment perspective. It should be games or sports. Game business model is being developed, and live service that I have explained is one business model in this area. In the area of Metaverse, community of interest, by motivation of people, there can be various things. It doesn't have to be single Metaverse. That's all from me. Technology direction of investment in technology, overall picture has been explained by Mr. Yoshida already. AI area is important, and especially our strength, sensor area, and convergence of AI and the sensor, we need to establish pipeline. Sony AI, it was established last year, and I'm serving as CEO of the company. Global talents, Japan, U.S., and Europe, promptly we have been recruiting people, and we have high level, high caliber human resources, and actively we are recruiting people. Investment in this area, we will be strengthening. Here, in AI, a company which can build a big AI model and those who are not able to build such a model, there will be a difference. We are going to strategically look at this, and we'll be making investment where strategically it is necessary. In areas other than that, we look at the strategy, and including new areas that we'll be exploring, we will be establishing strategy and exploring possibilities. In relation to that, for Metaverse, in the latter half of 1990s, VRML 2.0 was established, and we challenged it once. It didn't go well. Technological issues were there, but then Second Life came about, and this is a third boom, I would say, in that sense. What has the potential and where are the issues? I think that we have the good understanding. This time, realistic and large-scale social network metaverse space can be established. There's technological maturity. NFC transaction is there. So what will be commercially viable and will be, the profitable, or is that going to have longer-term horizon? We look at that, and we'll be thinking about technological investment and flexibly making investment. Let's proceed to the next question. Since time is running out, the next person will be the last to ask questions. Towards the right and towards the front, someone in striped suit or striped attire. Thank you very much. My name is Furukawa from Bloomberg. About the business portfolio, I have two questions. So far, various changes took place. The six business segments, do you think that's the best? You talked about mobility today. Sony mobility, is it going to be another segment, a business segment to be promoted to that level? Second question, non-core business. Are there any non-core business as you see it now? Mobile in terms of profitability, there was this observation, a rumor of a divestment, but including mobile, are there any business that you may sell in the future? Now, thank you very much for your questions about business portfolio. Allow me to answer, and probably can be supplemented by Totoki-san. For non-core business, I don't see any non-core business as I see it now. Second, six segments you said. I talked about three domains, business domains centering on people. As you rightly said, we are taking on new challenges. For the management to take on new challenges, it's so important, in my view. Our purpose, as is, can be said in, purpose to nurture, the passion, for the technology and creativity among the employees. We need to take on new challenges. The business portfolio, we have wide ranges of business, services, but we would like to take on new challenges. Well, yes, the business portfolio is being updated continuously. That's how we manage our operation. It may not be so conspicuous, but last year, the Game Show Network was sold, and Linear Channel net business was sold. Those kind of things are happening on a daily basis and on a small scale, we do M&A. The business portfolio is constantly being optimized. Thank you. The time is up. With this, we'd like to conclude the Q&A session with media. We'll be starting the Q&A for investors and analysts. Thank you for waiting. We are going to start the Q&A from investors and analysts. I'll be serving as moderator. I am Shinji from IR Group Finance Department. If you have any question, people in this room, please raise your hand. Those people participating online, if you have any question, please press star key followed by number one. I'd like to ask you to limit your questions to two per person. Anybody with any question? Yes. In the front, left-hand side. Second row from the front. On the right-hand side, very extreme right, please. Nishimura from Credit Suisse Securities. Thank you for this opportunity. I have two questions. My first question about music, pictures, and games. You are able to come up with hits continuously now. M&A is in the background of this success. What is the largest success factor? Going forward, in order to continue this good performance, what kind of strategy do you have? That's my first question. Secondly, technology. In the real world, you have the technology and you provide opportunity and forum for creators and users. In addition to the products, your products and technology is to be made as industry technology, which will lead to monetization. What is your mid to long-term view on technology? Thank you for your questions. Your first question is about continuous hit. What are the factors for continuous hit, and you said that M&A is a factor for that. Your second question is about technology. The first question, I would like to respond, and the second question, I would like to ask Mr. Kitano to respond. To come closer to users and creators, as I explained in my presentation, I myself would say that Sony, it will be a brand which is closest to the creators and users all over the world and they're loved by them. It's important for us to learn from users, but it is the creators who create Kando. As I explained, media changes with the development and evolution of technology. Creating Kando, it is people who create Kando, and the way of delivery of Kando changes. For DTC, we do whatever we can do and have the partner strategy. Creators, we are the creators, be it music and others, we'll be supporting artists, creators, and songwriters. Company as a whole is looking at the same direction. Recently, we acquired AWAL, Adele, individual artists. This is supported by us, and their creativity is to be spread globally. That's what we are doing. This, it will become a corporate culture of Sony Group. Your second question, standardization of technology and the strategy for providing technology. Depending upon areas, it may be different. Metaverse, with reality, you said that, reality, for example, in the case of Metaverse, strong technology is there and everybody uses this and establish alliance, then that would be de facto standard. However, some organization certifies that is different. Metaverse technology evolves very rapidly. Whether this will be effective method, we have to think about this very carefully in that sense. De facto alliance formation so that I don't know whether it's called standardization or not, but establishing alliance will be one. We have to look at the evolution of technology. In other areas, for example, we are focusing upon in AI the ethics. From an early stage, internally, we have established the ethics guideline of AI and disclosing this. From we receive questions from our side, and we are responding to these questions. Sustainability also, microgrid technology, including IP, we are making open and disclosed. Standardization and making open, we will be using both and contribute to the society. Also this is to be reflected upon our business as well. Let's proceed to the next question. Towards the left at the forefront, second one from the right. Thank you very much. Eiichi Minakata from JP Morgan. I have two questions as well. First, in the entertainment, about the social side, in the last year's corporate strategy meeting, we talked about it, you talked about it, and your acquisition of the Bungie is one example to show your attitude towards this. Likewise, last year, you talked about the emphasis on mobile, which has not been emphasized today, particularly. For the last 12 months, what are the initiatives, outcomes, or the learnings you made? Please share with us. Also, in the metaverse space, what's the role to be played by mobile? If you have any comment, I would appreciate it. Second question, in the entertainment profitability and investment and the balance between these two, in your presentation today, you have talked about various investments you made so far. At the same time, in terms of ROIC, well, this is one aspect only, but let's say for this fiscal year, Game at 20% or more, music 12%, and motion pictures 6%. Compared to the several years, it seems that the ROIC level is going down. It seems that the cost is being incurred for research and development and the strategic investment. In terms of ROIC, what would be your upside? I'm sure you have made preparations. Including the timeline, please make comment on this. Thank you. Thank you. First, about mobile, and the second question is about, especially in entertainment, profitability and investment and the balance between these two. Those are the questions. I will answer supplemented by Totoki-san. About the mobile, last year, last fiscal year, I think there were two points. One, i t's under Sony Music within Sony Group, but largest mobile game, it's Fate/Grand Order. There, the development and operation of FGO, that's Delightworks, it used to be. Well, we in the mobile games, so development area, we purchased and it was turned into Lasengle. For us, the ability to develop and to operate, that's something that we acquired, and we have expectations on this acquisition. Another point, as Totoki-san said earlier, GSN Games. We sold this. But a part of the process, we acquired. We used that process to acquire. We acquired Scopely of the United States. This one, what we learn, we think we can learn so much. With the CEO and Totoki-san, we had a meeting. What they said is that they try to monitor users' trends, and they are well-versed in this information, knowledge. How can they provide longer engagements based on data? On that particular point, we learned so much from them. By its nature, it's a live service, live game service. That's what we did last fiscal year. SIE, as I said, in the past, current IP, we would like to convert them into mobile steadily. That's what I have to say, and if you can add, Totoki-san. Allow me to answer to the question about ROIC and make supplemental comments. It's a harvest cycle in terms of games. PS4 is getting into the maturity phase, and the investment efficiency is improving at the last stage of the console. Converting to PS5, so for a certain period of time, the profitability would go down, so ROIC may dip for a while. Especially in the music business, there's this growth of streaming service, and content IPs investment, well, was done through catalog purchase. As you know, low-risk investment. This is low-risk investment, but the return is not so high. If excellent, the catalog is excellent, it can be in a stable cash generator, then the ROIC would decline for this. For us, by making steady investment, sustainable midterm growth can be ascertained. That's what we feel. We are a little bit proactive in our investment attitude. Going forward, ideal, what's ideal is that making necessary investment on a stable manner, we maintain the margin. That's the ideal. We try to approach to this ideal as much as possible. Thank you. Now, next, those people who are participating online, we'd like to entertain questions from you. SMBC Nikko Securities, Katsura-san, please. Thank you very much. Katsura from SMBC Nikko Securities. I would like to ask two questions, if I may. My first question, in the long-term perspective for each business BU, optimum way of capital, I'd like to ask you your thinking about optimal capital. Yoshida-san talked about three areas, and wide areas were shown. As you address these businesses, for example, the Sony Corporation, we have established a joint venture. They might then various ways of challenges done. Depending upon the stages, there'll be differences. In the existing businesses included, in the future, how is going to be the mix? That including capital structure, capital composition. Second, regarding development. Kitano-san has been doing this CSL. Compared to that, wide, it's going to be wide areas after Katsumoto-san and Kitano-san, as you assume the current post. What needs to be changed? What are the areas that you would like to change? As the time has changed, those that was done under CSL, these used to be the things which are far to business. But with, are there going to be change in the position? And looking overall, and 6.7% is R&D to the sales. So R&D ratio in the medium to long term, as a company, what would be the o ptimal level of R&D and the balance? Thank you. Your first question is about optimum way of capital, and second is technological development. What are the things that need to be changed? These are the questions. Just one word from me, then the first question, I will ask Mr. Totoki, and the second question, I would like to ask Mr. Kitano to respond. As an example, you have cited mobility. For mobility, in the areas where we can contribute, we will be making contributions. We'll be focusing upon areas where we can contribute. Body manufacturing, we do not have knowledge, expertise, so we have part we join, we rely upon partners. TSMC Kumamoto plant, rather than JV, we have equity investment logics. It is procurement. We are participating, making a capital participation. I should not be talking about Kitano, but he has wide and extensive knowledge, and he will be leading the technology in Sony. Optimum way of capital for each of the businesses, currently, on a consolidated basis, ROE 10% or higher, that is a medium to long-term target. We obviously look at the cost of capital in Tokyo. This will not impair the value, but rather increasing and adding value. We have to at least achieve that level. By businesses, naturally, cost of capital varies depending upon businesses. We have to be aware of that. As a whole, this proportion needs to be maintained. Then for each business, for example, the possibility of procuring capital from outside, that might be the gist of your question. Not only capital, but joining hands with an external partner so that we can pursue greater growth and increase in corporate value, then that may be one of the options. Kitano-san, I hand over. About technological development, let me respond. First, in Sony, where technological development is done, business units, in each business unit, there is a technological development. Then we have R&D center in headquarters, and then Sony Computer Science Laboratories and Sony AI. Each has different natures. Inversely, I am in a position of overseeing all of these. So looking from higher level, Sony R&D ecosystem, dynamic structure, that's how we are going to evolve. For the capital of the R&D organization of each, we are going to respect that. Business unit and R&D Center, between these, collaboration and coordination needs to be strengthened further, and the new challenges will be done. Sony R&D ecosystem's mission is to evolve civilization and make the planet sustainable. That is the mission. This is Sony's purpose, and Sony is a big entertainment company underpinned by technology and wide scope mission. R&D is the business will be wider, and it is necessary to have longer time spans. This rather high level challenge is there. Sony CSL, Sony AI does, and R&D Center and business unit will be collaborating with one another. Here, there are two. New challenge, extension of existing ones, and then in addition, there are a number of challenges. Then exit strategy. Academic, it could be academic because this is research. In business unit strategy, the R&D exit to strengthen the business unit and new ones or carving out, there are a number of exits which are to be made clear. Challenge and exit strategies are made clear with the ecosystem so that the diversity and dynamics, we are going to change the organization to become more dynamic. If I'm to make supplementary comment about the first question, the efficiency of capital and optimal capital. Investment into our shares is investment into the future, and ultimately, this will result in increased capability to invest in the future. Efficiency, capital efficiency improvement, is fostering a relationship of trust with the capital market, which will result in our capability to be enhanced for making investment in the future. The research and development, the size of investment, you refer to or ask a question about the size of investment. First, we have to look at the content, what we do. With the same size, yet depending upon the way of research, R&D, research area, output will be very different. I have looked at universities and research facilities of companies in Japan and their mission and management of the research institutions and aspiration very different. The quality rather than quantity, we have to look at the quality and build up the quality. Mr. Katsumoto, my predecessor, established a good organization. We are going to further strengthen this and enhance. I'd like to start from that. Thank you. There's another one participating online. We take questions, and please limit yourself to one question only. From Mizuho Securities, Yasuo Nakane-san, please. Good afternoon. My name is Nakane from Mizuho. Can you hear me? Yes. About the employees. My question is about your employees. Yoshida-san earlier, that you take new challenges, and Kitano-san talked about the AI investment globally. Within Sony, those people working for Sony, straddling business units, the kind of work that only you can do in Sony is increasing evaluation and the system structure, stock options, anything invisible, advancement of women or someone from overseas. There are various ways, but what are you doing in this area? Doing certain things can recruit highly talented people going forward and with high retention rate. Are there anything that you can tell us about these things? Thank you very much. Your question is about the human resources people. I will answer, and probably Mr. Totoki will follow. Sony's business is moved by 110,000 people, employees. I repeated the word purpose several times today, and I convey this purpose to you, outside Sony, but primarily the purpose is the message or the promise I make with the employees. That's how I position it. There's this raison d’être in the society, and we can do it together. That's the kind of message I'm delivering to my employees. Creators, users, getting closer to creators and users and to employees, that's what the management has to get close to. Various acquisitions and investments are being made, and then cultural positioning is important to create value, collaborate, working together. The cultural impact of these things are so huge, and then on a certain timeline, that's directly connected to Sony's corporate value. That's what I want to say, and Totoki-san can add. Diversity is important, after all. Quite recently, I am keenly aware of this. Diverse talents getting together to inspire each other and to take on new challenges, and they get excited, and then that can create a positive community. That's the ideal or desirable organization. Doing various businesses are not necessarily valued highly by capital market, but there are experiences you can get from doing different businesses. A new creation can come from doing different businesses. On a long-term basis, we will strive forward with this in mind. Thank you. The time is running short, so next will be the last question, and I'd like to ask you to limit yourself to one question. Left-hand side, third from the row in the middle, the person sitting in the middle on the third row, please. Ono from Morgan Stanley. Thank you very much for this opportunity. I would like to ask one question. From the beginning of this year, U.S. entertainment business, there have been various developments in the game industry. JPY 1 trillion large IP investment was announced. Then top-class OTT companies, members or subscribers decreased, which surprises the market. In Yoshida-san's explanation, you said you have the keyword of Kando. According as I understand it, through Sony, how to increase the number of people who receive Kando through Sony and how the time to have Kando will be increased, strengthening content and expanding platform. There are two ways of doing this. The U.S. entertainment industry is undergoing big change, and in response to that, as a position of the company, for example, you're strengthening IP or DTC is to be strengthened further in an accelerated fashion. PlayStation platform is very solid, and you have big population behind this. In the earnings call, you talked about playing time being tracked, as Totoki-san said. How do you receive the change of the entertainment industry? I'm repeating myself, by strengthening IP and expanding platform. I don't think that you have changed, but what kind of risks need to be factored in timeline as well for that? That's all from me. Thank you. Thank you for the good question, important question. Totoki-san can respond later on as well. First, thinking behind the M&A, especially active, M&A in game industry. As we think about M&A, by us investing, for example, gamer, if it is game, gamers or game creators, can we increase value provided for them? That's primarily, that's the thing that we are thinking first. Rather than winning a share, whether we can contribute or not, that is the key perspective. Sony used to become a brand which is loved by creators. That's what I said. I myself would say platform is important, but primarily communities of interest. We are going to be close to the motivation. We are not really thinking so much as one platform. Background for that, as I said, with network, media is changing rapidly, and it will continue to change. If I'm to take some examples, AOL was there, and then portal, Yahoo was there, and then Google was separated, and social in the form of Facebook, and then audio social, maybe Clubhouse or gaming social, Discord. There will be separations. That is occurring, and we have to respond to these changes. Contents do not change so much. Creativity of people, the contents from creativity will not be changing so much. Rather, I would say, in the past, media chose content. Now, content and creators will be choosing the media. We are changing the phases now. We are a company which becomes closer to creators. I don't know whether I'm responding to your question, Totoki-san. I don't have much to add, but we have been having IP and DTC, and we were having more weight on IP for investment. Why? Ability to create excellent content. Well, however the world might change with network, distribution changes, but still, ultimately, the traction for content should be there. Otherwise, it's not viable as a business. Always, in order to increase capabilities, what should we do? We are to become closer to creators, as Mr. Yoshida says. We are pursuing what we can do to become closer to the creators. Now it is time to close the corporate strategy meeting of Sony Group Corporation. Thank you very much for your attendance.