Okay. It is time to start Sony Group Corporation's consolidated financial results announcement session. And my name is Okada. I'm with the Sony Group Corporate Communications. First, let me introduce the people on the stage. First, we have President, COO and CFO, Mr. Hiroki Totoki.

And we have a Senior Vice President in Charge of Corporate Planning and Control, Lead of Group Diversity, Equity and Innovation and Support for Financial Services Business and Entertainment area, Ms. Naomi Matsuoka; and the Senior Vice President in charge of Finance and IR, Mr. Sadahiko Hayakawa; and also Sony Financial Group Inc.

Corporate Executive Officer and CFO, Mr. Kazuhiro Yamada. These four will be presenting the second -- 2024 quarter actual and full year forecast and then have the Q&A session in total of 70 minutes. Mr. Totoki, please..

Okay. Thank you. Today Matsuoka-san, Hayakawa-san and Yamada-san will explain the contents shown here, and I will give a general summary at the end. Hayakawa-san, please..

The last Dance, released last month. We expect the television and video streaming services licensing revenues to recover from the second half of this fiscal year through the next fiscal year.

The Crunchyroll is actively expanding global user base, Including partnering with Amazon Prime video channels and then signing a distribution agreement with the YouTube Primetime channels, where the service is scheduled to launch towards the end of the year.

Moreover, we have begun streaming many new anime titles from the second half of this fiscal year and aim to further increase engagement with anime fans around the world. Regarding our business in India, the operating environment is challenged primarily due to a softness in the ad market and then a decrease in viewers of pay television.

However, under the new local management team that started in August, we are strengthening our operations and rebuilding our strategies to grow the business over the mid- to long term, including continuing to improve viewership through restrengthening of our programming. Next is the ET&S segment.

Sales for the quarter were ¥619.8 billion, essentially flat year-on-year. Operating income increased 15% year-on-year to ¥70.2 billion, mainly due to the favorable impact of foreign exchange rates and cost reduction effects. The FY ‘24 forecast remains unchanged from the previous forecast.

Major markets such as North America, Europe, China and Japan remain generally stable during the quarter and then solid business operations enabled us to achieve operating income exceeding the same quarter of the previous fiscal year. We continue to pay close attention to inventory control.

And while – overall segment sales remain essentially the same as in the same period of the previous fiscal year, we were able to reduce inventory by approximately 10% at the end of the quarter.

On the other hand, the imaging business, which significantly grew year-on-year in the first quarter and then June 30, 2024, mainly in China, was essentially flat year-on-year in the current quarter.

As a result, we have incorporated into our forecast a proactive change to a more cautious production inventory plan in preparation for the year-end selling season.

In the sports business, which is a growth access area, we are working to further expand our business opportunity by collaborating with the partners and incorporating new technology centered on Hawk-Eye, which provides a referee decision support solution based on the video data.

On August 1, we announced technology partnership with NFL in the United States.

Through this collaboration, we aim to advance the practical application of our cutting-edge sports-related technologies, such as using Hawk-Eye to assist referee decision, improving the accuracy of measuring key game metrics, such as yards gained, through the video data analysis.

Also, on October 15, we completed the acquisition of the KinaTrax, a U.S. company that uses high-precision motion capture technology and data analysis to provide support services such as those aimed at improving athlete performance.

The company has a strong affinity with Hawk-Eye in terms of technology for acquiring highly reliable sports data, and we expect great synergy in terms of maximization of data accumulation and use. Although the sports business is not large in scale, we expect it to generate stable and high profits and aim to continue to focus on expanding it.

Next is the I&SS segment. Sales for the quarter increased 32% year-on-year to ¥535.6 billion primarily due to increased sales of image sensors of mobile products and the impact of foreign exchange rates.

Operating income approximately doubled year-on-year to ¥92.4 billion, primarily due to the benefit of the increased sales and the favorable impact of foreign exchange rates. For FY ‘24, we forecast sales to decrease 4% from the previous forecast to ¥1.770 billion and operating income to decrease 9% to ¥250 billion.

The global smartphone market continued its gradual recovery trend with positive year-on-year growth continuing in China and Europe and signs of recovery in the North America market.

Mobile sensor sales during the quarter significantly increased due to an increase in unit prices resulting from larger die sizes and steady shipment of image sensors for new products to a major customer. This led to the segment overall recording its highest ever second quarter sales.

On the other hand, with regard to the second half, we have downwardly revised our sales and profit forecast for mobile sensors to reflect a revision in the production plan of our major customer.

The Introduction of AI functionality and services into smartphones, which is currently underway, may bring short-term volatility to the high-end market, depending on the speed of rollout and initial reasons.

However, in the mid to long term, we expect that convenience brought by AI will make smartphone functionality more attractive, revitalizing the market and encouraging a shift to high-end products.

On the production side, improvement in yields for mobile sensors are progressing as planned since the beginning of the fiscal year, and we expect to achieve normal run rate in the fourth quarter ending March 31, 2025. Last is the Financial Services segment.

Financial Services revenue for the quarter decreased ¥167.2 billion year-on-year to a negative ¥63.3 billion, primarily due to the impact of market fluctuations at Sony Life.

This was due to the significant appreciation of the yen during the quarter, which led to a significant decrease in the yen-based valuation of the asset under management for the foreign currency-denominated insurance. However, since the valuation of liabilities declined in a similar manner, this did not have a significant impact on profitability.

Operating income increased ¥50.1 billion year-on-year to ¥65.7 billion primarily due to the impact of interest rate fluctuations at Sony Life. Insurance service results at Sony Life, which are the baseload of profitability for the business, continued their stable trend at ¥49 billion. FY ‘24 forecast remains unchanged from the previous forecast.

Sony Life’s New policy amount continues to be strong with the cumulative first half growth of 14% compared to the same period of the previous fiscal year. Preparations for the partial spinoff and the listing of Sony Financial Group Inc. planned for October next year are progressing smoothly.

As a part of those preparations and in order to strengthen its governance and accelerate its decision-making, SFGI transitioned to a company with 3 committees corporate governance structure as of October 1.

Next, I will explain efforts to improve and stabilize our economic value-based solvency ratio, ESR, which is an important issue ahead of the listing. ESR is an indicator of financial softness of Financial Services business.

It shows the level of capital relative to amount of risk calculated based on conservative assumptions after assets and liabilities are evaluated on an economic value basis. As shown on this slide, the ESR of SFG on a consolidated basis is within the target range.

However, the high sensitivity of ESR to interest rate fluctuations is an issue for the life insurance business, and we are implementing measures to reduce sensitivity in terms of both capital and risk amount.

With regard to capital, which is the numerator of ESR, the assets held on the balance sheet, such as our bonds, exceeded insurance liabilities, resulting in an overhead situation and a structure in which net assets decrease when interest rates rise.

In order to correct this, we sold the portion of our yen-denominated bonds, so as to mitigate overhedging, and we are currently undertaking transaction designed to curve capital fluctuations. The amount of risk, which is the denominator, also increases as interest rates rise.

So we are working to refine our risk measurement methods and further improve our risk management. We have created a 2- to 3-year road map improving and stabilizing ESR, and we will continue to report on our progress and results. Finally, I would like to give you an overall summary.

The key performance indicators for the entire Sony Group in the 5th Mid-Range Plan are the growth rate of the operating income of 10% or more and a 3-year cumulative operating income margin of 10% or more, both on a consolidated basis, excluding the Financial Services segment.

The consolidated result forecast for this fiscal year announced today predicts a new record-high operating income year-on-year, the growth rate of operating income of more than 10% and operating income margin of approximately 10%. We believe that we have gotten off to a good start in the first year of this midrange plan.

In the second half, there will be no major first-party software title releases in G&NS, and there will be an adjustment in demand from a major customer in I&SS.

As a result of these and other factors, consolidated operating income, excluding the Financial Services segment, is expected to be slightly lower than the same period of the previous fiscal year.

However, business momentum is currently good, particularly in the G&NS and Music segment, we aim to produce solid results in order to achieve the targets of our mid-range plan. Moreover, under the mid-range plan, we aim to strengthen shareholders’ return.

And the cumulative amount of shares repurchased through the end of October out of ¥250 billion authorized fiscal year was ¥237.1 billion.

Amid the rapid changing business environment, we will continue to manage our business in a way that will enable us to achieve sustainable growth across the entire group, while addressing the various challenges that each business face. That’s all for my explanation..

So that was the presentation by Mr. Totoki, Ms. Matsuoka, Mr. Hayakawa and Mr. Yamada. After this, from 4:25, we'll have Q&A session with media persons and the Q&A with investors and analysts will start at 4:50, and each session will last for 20 minutes. [Operator Instructions] So until then..

Thank you for waiting. Now I would like to start the Q&A. We'd like to respond to the questions from media people. And as was the case with the presentations, we have these 4 people who have made the presentations responding to your questions. Now I would like to start the Q&A..

[Operator Instructions] And first, we have Umegaki-san, Toyo Keizai. Umegaki-san, please..

This is Umegaki of Toyo Keizai. I have two questions. First, I&SS downward revision. The overall market is recovering, but the I&SS is revising downward. What is the outlook for the next fiscal year. And smartphone has been getting image sensor becoming larger and larger.

But isn't there any risk having a consolidated business with a large maker? And the next question is about the game business. 2 years ago, in '22, Totoki-san mentioned about the issues. And then you have became risk management and then the cutback of the personnel and some studio closure as well.

And how much of that reform has progressed as of now?.

Thank you for your questions. The first question about the I&SS. Second question was about Game & Network Services. I will answer both questions. First about the I&SS. The market is set to be recovering, but it's very slow. So I think it is just provisional.

And for this particular quarter, our customer has revised their production plan, and we followed our outlook revision downward, but there are different reasons for production adjustment. So it is part of the business as usual. And so it is not to impact next fiscal year.

So as -- so we have not changed any forecast for the -- and also your comment about the risk of having a concentrated customer base. And that has -- that is not a new product challenge, and we hope to continue to work on expanding our customer base. And about the gaming, and we are in reform.

We are not only changing the business structure, but also game development approach. We are taking a new look and also portfolio concept to be introduced. And regardless of the personnel, we have different cost cut in different areas. And also optimization of investment in sales and marketing.

We are doing all these and as a combination, I think we got very good results. Now the question of to the extent -- what extent this reform has progressed? And this is kind of a Kaizen improvement, we need to continue to do, which we surely intend to do..

So let's move on to the next questions. Iwato-san from Nikkei Business..

This is Iwato, from Nikkei Business. I hope you can hear me..

Yes, I can hear you fine..

So I have one question with regards to game. In live service game, the current status, what do you make of that? And you have the huge hit and also you discontinued certain services.

And basically, how do you -- are you managing the portfolio in terms of development?.

Thank you very much for your question. But currently, we are still in the process of learning. And basically, with regards to new IP, of course, you don’t know the results until you actually try it. So for us, for our reflection, probably, we need to have a lot of gates, including user testing or internal evaluation and the timing of such gates.

And then we need to bring them forward, and we should have done those gates much earlier than we did. And also, we have a siloed organization. So going beyond the boundaries of those organizations in terms of development and also sales, and I think that could have been much more smoother.

And then going forward, in our own titles and then the third-party titles, we do have many different windows, and we want to be able to select the right and optimal window and so that we can deploy them our own platform without cannibalization so that we can maximize our performance in terms of title launches. That’s all I have..

Next, we move on to the next question. From Nikkei, Omichi-san, please..

Omichi, from Nikkei.

Can you hear me?.

Well, can you just speak more loudly?.

Omichi, from Nikkei.

Can you hear me?.

Yes, we can hear you..

I have two questions. And the first question is that in the U.S., the election, the Trump had a victory. So foreign exchange or the tariff, there will be change.

How do you perceive the impact of his election on your business? And this year, you actually acquired Pink Floyd or Queen the rights, and for the Michael Jackson, the IP of his music has been acquired by you.

And so for those the music, how -- what is the role, for instance, stable the revenue or synergy effect on other businesses, what is your expectation about those new business?.

So first, the impact of U.S. presidential election on our business. Second, with regard to music, Matsuoka-san will answer your question. And as regard to the impact of presidential -- U.S. presidential election on our part, we respect the choice of U.S. public.

And so that means that election results, how it impacts on the global economy or geopolitical situation? I'm not expert on that. And there are many experts on those areas. So we'd like to just depend on their analysis.

But when it comes to the impact on our own business, the United States has a very broad impact on the global economy and also has a very large geopolitical impact. And so of course, that will directly impact on our business.

Therefore, we would like to observe the facts of the matter and make analysis about them, and we would like to look at the future and do what we are able to do. And when it comes to tariff issue, that has been very often discussed recently, but that is just a general discussion.

And so we have to have a very accurate prediction, and we have to think about the optimum level of shipment, which country becomes a producer and what way we conduct shipment and how we are able to optimize our plan and how we're able to look at the pricing for that.

And of course, we have been doing that, but we have to once again look at this and study this carefully. So the second -- the question about music. Matsuoka-san will answer your question..

Thank you for your question. And which catalog, we haven't identified particular catalogs. But those catalogs -- and the -- our plan to acquire them will contribute to the stable source of recurring income. And so that may generate the stable return. And so we have many use opportunities. And so we are able to create opportunities upside.

And for IP value of Sony as a whole. For instance, there is a likeness or image rights. So those are peripheral, the new, the rights. And by acquiring those catalogs and across the Sony Group, we are able to expand the usage of catalogs.

Therefore, in that sense, of course, we should have always disciplined approach and to look at the opportunities for acquisition of catalogs. Thank you..

If I may supplement that, in my speech, as I mentioned, recently in the market, particularly in the streaming market, the service users and listeners, the age, the group has become more of a mature age group. In other words, evergreen music has been more of listened to by those groups. So for us, I believe that, that is a very important asset.

And the fact that we have evergreen catalogs, that also shows our attitude of commitment to the artist and therefore, through [A&L] activities. And so we would like to use it as the assets gave very good spin-off effects..

Okay. Let's move to the next question Furukawa-san of Bloomberg, please..

This is Furukawa of Bloomberg. I have 2 questions. First about the game business. This quarter, PS5 hardware, is that remained target 30 million units. It's unchanged. And Pro is released. So it will be -- some people say it will be difficult to have a wide user base with ¥120,000.

What is the plan for sales of Pro as well? And the second, additional investment to [indiscernible].

Have you made the additional investment, if yes? And what is the reason for the additional investment?.

Thank you for the question. And the first question about the PS5 sales 18 million units, is that unchanged? Short answer is yes, will remain. First quarter was slightly weaker than planned. In second quarter, pretty much at target, and that has been the actuals in the first half.

For the second half of this fiscal year, we will have some sales promotion in our plan. And in the first half of the year, as that the -- we did not introduce a price reduction, which we had for PlayStation 4 in the past. So we have been able to sell through without the discount. Now PS5 Pro unit numbers are included in this.

PS5 Pro is rather high-end core -- hardcore users are the target of this hardware. So we don't have a large contribution in corporate. And compared with the PS5, I think it is, in fact, stronger. And in terms of the pricing, many people made different comments on that. But pricing for PS5 Pro has not had a negative impact, I don't think.

And second question about [indiscernible], additional investment. And we -- I apologize. We do not make comments on individual specific projects like this.

But our basic thinking is that the semiconductor industry is needed for the growth of the economy and also for the economic security as such is very important as we are one of the members of that industry if the semiconductor industry is to be enhanced.

And we believe that all strengthen the infrastructure and the technology personnel base, and that's good for industry. So we want to make a due contribution to that. That's it..

We are running out of time. So we like -- we have time for 2 more persons for questions. [Operator Instructions] Suzuki-san, from Weekly Diamond..

My name is Suzuki from the Weekly Diamond. I'd like to ask you a question about game business. In live service business and then you failed the Concord and also you gained success and you have 2 different experiences. And I'm sure that will have given you of learning and that's what you explained.

Can you talk a little bit more about that? And what didn't work? And then what really worked? Can you elaborate on that?.

Thank you very much for your question. As I might be repeating myself, but in terms of what didn't work, we need to have more detailed confirmation or validation, and we should have done those more. And then we need to have more detailed gates to make sure that we check the user test.

We need to repeat those gates more so that we could have caught, and I want to determine whether that will be accepted by the users or not. And we need to have more information that will enable us to make more sound decision. And I think that's the overall reflection.

And in terms of what worked, and looking back on what worked and then we usually don't do that. But -- and if things are really working and then, of course, like -- and all the things that I have said, worked really well to really produce a great resource and looking back in the past.

So I think we need to go back to the basic and then make it really stronger. That's all..

So the next question will be the last question. Sato-san from Nikkei, please..

Sato from Nikkei. Regarding Concord, I have a question. So actually, [indiscernible], well, it's not easy to pay attention to that. And for Sony Group, anime films and game, well, you have diverse content. So you we have produced a diverse content.

And so how you are going to combine them? From Concord the lessons -- how you're able to take advantage of the lessons from Concord?.

So regarding that matter, as lesson, we have learned a lot. But the way to face the issues regarding PC, for instance, the PlayStation accounts that we have the offered. And well, actually, by offering them, for instance, sometimes, that tends to invite pushback.

But for the live services games -- so in order to maintain order of the gaming so that anybody can enjoy the game safely, and we need to create environment conducive to that. Of course, enjoying the game freely and having some restrictions may not call it rule, but to ask the users and gamers to follow the manner. And those balance is very important.

We have to continue to seek the best way to achieve this..

So the time runs out. So now we would like to bring an end to the question and answer from media. And from 4:52, we'd like to start question-and-answer for the investors and analysts. So please wait for a while..

Thank you for your patience. Now we'd like to start the Q&A session for investors and analysts. My name is [Konto], I'm with the IR Group of Sony Group Corporation..

[Operator Instructions] So SMBC Nikko Securities, Katsura-san, please..

Okay. Thank you very much. SMBC Nikko Securities, Katsura. And I would like to talk about I&SS and ET&S 1 each. For I&SS in the additional documents, Page 20, wafer production capacity is now at full, and you will continue -- we will start adjusting that.

And what will be the period you will be adjusting -- making adjustment? And also on Page 8, there is an inventory level. So with the addition of the impact from the ForEx, has there been any change in the outlook? That's the first question. And the second question about ET&S is about the digital camera.

You have become more cautious about your outlook for digital cameras market. Now that revision is limited to that only or ET&S, as a whole, you are taking a look? And as a result, we have flat unchanged as a whole, but the plus and minuses we could expand on..

Thank you for your question. And regarding I&SS utilization rate, currently, as you know, full production capability is utilized. For the third quarter, we plan to have the same station of full operation. And as of now, we have -- regarding the inventory, I think as of late end of March, we have a little bit more production inventory.

I talked about the production control adjustment. So we will cut back the inventory a little bit as such. And so we do not consider it's needed to adjust the production much. And as for ET&S, as a whole, there is some change. ET&S as a whole, that is the China, the market -- TV market is softening. And worldwide, not much change, though.

So that's how we view the TV market. And for the increased cost for logistics, that was -- that is now included in the -- as a risk in the October assumption. And imaging because of a competitive condition, there is an increase in the sales promotion cost. And also Chinese market risk is also incorporated.

But initial plan, we had overall risk as a whole as well. So we did not change the forecast for operating income this time. Thank you, Katsura-san..

Moving on to JPMorgan, Ayada-san. Over to you..

This is Ayada, from JPMorgan. And I have 2 questions with regards to game. The first one is in the second quarter, and there was a huge shock.

So I'd like you to take a pause, and then there was an increase in profit by ¥85 billion because of the foreign exchange and then also the hardware and third-party network, what was the profit contribution of each? And in terms of hardware, and I think you turned -- you made profit in the second quarter.

And do you think -- and then also you mentioned this profit improvement of the hardware in the second quarter and onwards. What was the driver behind that? That was the first question.

And the second question is, looking at the game, especially hardware in the second half and the third-party software lineup in the second half, not compatible to PS4, but some titles are only compatible with the PS5, and there has been an increase in the number of that.

And what's the thinking before that? And then upgrade and are you sort of -- are you expecting the accelerated transition from PS4 to PS5? Or -- and because we are talking our third parties and those users with the PC and PS4, they might be able to purchase a self PC and there might be such risk.

And how do you view there is such risks and opportunities? And I know that you are overdeliver in the second quarter. So maybe you -- maybe you might have decided to increase the market promotional costs in the second half..

So with regards to game in the second quarter and in terms of operating income growth, and you have given us your analysis. And then our view is very close to what you have said. And also the sequence that you mentioned, you are correct.

So in terms of profit growth, and we don't -- we haven't disclosed that, but speaking about the reason for the improved profitability of hardware, in last year second quarter, when compared to the current second quarter to the last year's, and we made a switch to the new models, so which means that the cost structure improved and that also generated a positive contribution to the profit.

And then also -- and we launched new models in the third quarter of last year. So basically, the cost structure remains unchanged compared to the second half of last year. But the average selling price has improved and which we -- is expected to generate the profit improvement year-on-year.

And with regards to the third quarter, as you know, which is the volume driving quarter and of the year. So yes, we have included the marketing promotional expense increase and not at drastic increase. And so if you look at -- focus on only that, you might see that there will be a slight deterioration of the profitability, but that's all I have.

Sorry, I forgot to address one more question with regards to upgrade. So the third-party lineup for -- only for PS5 and you said that there might be an increase in the number of the titles. But because of the timing and because of the late stage of the console cycle, naturally, we have more titles for PS5.

But if the transition from PS5 and PS5 will continue, we believe that transition is happening and as we expect. So if you upgrade to PS5, basically -- and of course, there will be upside in the software purchases, and then we see that as a positive opportunity. And then as for the risk for third-party software for PC, we don't see that as a risk.

And we haven't seen that as trend emerging. That's all I have..

The next question is Citigroup is Ezawa-san..

Ezawa, from Citigroup. I have two questions. And regarding hardware and the results of the game, the relation between this. And also another question is pertains to music. As for game, operating income forecast, the ¥34 billion upward the revision. And the first half and the second quarter results are better than your plan.

So is that just a mere addition of that increase on the second quarter just in terms of number, because hardware profitability improvement seems to be the major factor to increase the results of second quarter. And the cost structure has improved and the profit has increased. So that may increase the profit of the second quarter. That is not reflected.

So I just wonder whether that is reflected in the second quarter results or forecast. And the second question pertains to music. At evergreen, the music has been more often listened to by users until a few years ago, the hit chart of new songs. Sony Music artist, the portion share was the largest, and you put a lot of emphasis on that.

In Latin America and Indies, you have made a lot of the emphasis in order to increase the hit songs of the new artists or new songs.

The fact that the change happens reflects the change of your position of the music business or generally in the music industry, this is a general trend of music industry that people listen to the older music more often than just the new songs..

Thank you. Regarding the game, answering your question, during the Q2. The reason the sales was solid, that is also reflected in the second half. In hardware, the profitability magnitude is larger during the first half and because the new mode was introduced during the first half. The timing was important.

And during the second half, sales and marketing, we have to spend more money. And so that is the reason for this difference. And as for Q4, the fourth quarter, there will be a slightly more upside. And I expect that great deal, but I should not have any predetermined the forecast for that. So we actually formulate forecast as is presented now.

And regarding your question on music, I ask Matsuoka-san to speak and then I will supplement her comment..

Now in my presentation, as I mentioned earlier, for PSP, for the maturity of the market. In other words, in the developed countries, the age group become older. And also in S&S, the some of the old -- the songs have been listened to more often than before.

So what is called evergreen, the music or songs, the share and also frequency of that music being listened to has been increasing. That is the general trend of the music industry. But in emerging the market where the gross -- the potential is expected like Latin America or India. There are many pieces of music, which have been listened to.

And we also pay attention to that, to acquire the new label, et cetera. So in terms -- rather than the preference of users, the composition of the market itself has changed. I think that is a way you should interpret the music, the market right now..

So to supplement, on our part, the evergreen catalogs, the results of our investment, they have been listened to the more than we expected at least to upside our profitability. So that we welcome very much. And in addition to that, say, new songs in Latin America, that does not mean that they compromise the new songs from Latin America.

So we would like to put emphasis on the both so that we can enjoy the upside of the profitability from the both..

Okay. Let us move to the next question. And we have Yasui-san of UBS Securities..

Once again, this is Yasui. I'd like to ask 2 questions. And in terms of music streaming business, since summer, the streaming growth is slowing down. That's what the competitors are saying and that's getting some attention. And it used to be double-digit growth, but now single-digit. And also, your performance in dollar base was 5% growth only.

So is this temporarily slow down? Or is that kind of a structural, if you could comment on that? And second, about semiconductor second quarter profitability, about 17% to 18% profitability. In the past second quarter, it was like 20% and above. So 17% to 18% is rather slow with better yield, full production, I would imagine the better portability.

And wafers input is increasing in dollar base as well and the wafer costs with the change of ForEx rate. And if you could comment on that situation..

Thank you for the question. First question about the music Matsuoka-san will respond. And on I&SS, second question, I will respond. Matsuoka-san, please..

Regarding streaming, which has 2 aspects, publishing and production, and streaming growth trend is pretty much in line. It's still stable growth. But compared with the past, like first quarter of 2023 and before, there are multiple DSP, which raised their price. And that kind of look -- made it look like they are growing rapidly.

But in terms of music production, the streaming, the audio portion has grown from quarter 1 to quarter 2. As for video, streaming service growth is slowing down. That's true. And as a whole, that is kind of bringing down the growth rate. So that's where current situation is. But the overall structure has not changed.

So the DSP price hike timing and so on may change the streaming growth rate. And DSP paid subscribers are still increasing. And I think there is a room for price raise in the future. And so those are some of the factors that work in the background..

Okay. Let me talk about I&SS, which was the second question. And OP margin was 11.4% and this year, 17.3% operating profit margins of last year and this year. And last year was slow because of the yield issue we had. And also Q2 did not have a full shipment as we expected. So last year's second quarter was not a good quarter.

But this year, as far as the shipping is concerned, that has recovered and brought us to the 70.3% of the profitability. Now can we expect higher? That's for high-end sensor development is, well, we are making investment in that and also increasing its capacity. So the capital investment depreciation will have to be accounted.

And we are not 100% successful in terms of investing and still getting enough profitability, but we intend to continue to improve that profitability..

So we are running out of time. So the next person will be the last person to ask the question. [Operator Instructions] Nakane-san from Mizuho Securities..

My name is Nakane, from Mizuho Securities. And operating cash flow, and that's I'd like to ask you about. In the Financial Service, operating cash flow, ¥40 billion has been revised to ¥1.44 trillion. And what's the upside and downside from this? And we can forecast a profit.

But what are the other aspects, especially inventory, and then also at this point in time, and I know the network business is doing really well. So what about the operating capital? And then there might be some impact. And then towards the end of the year, apart from the profit, what are there any factors that will affect the operating cash flow.

And can you at least talk about the factors that will impact the operating cash flow?.

Thank you very much for your question. So operating cash flow, excluding the financial, has been upward revised by ¥40 billion..

Thank you very much for the question. As you pointed out, in upward revision by ¥40 billion, that is driven by the improved profitability of the game business. And as you said, compared to last year, operating cash flow has increased significantly. Now it's driven by the improvement in the working capital in a game business.

With regards to the inventory situation compared to last year, each business has a better control of the inventory, and we are tightly controlling the inventory.

And as we gear up for the year-end selling season, the gaming and ET&S businesses, of course, we need to watch closely the market development so that we can accurately forecast the operating cash flow. Thank you very much..

So on -- with regards to the question as to other key factors that you pay attention to. So I don't think there are any notable upside, downside apart from the working capital. And for us, as we get closer to the year-end selling season, what sort of the inventory level that we need to have.

And of course, we need to have a processing in place to normalize that, and then we need to do that in a timely manner, and that will have an impact on the cash flow. So how diligent and then how detailed -- granular, we will be able to do that. And I think that will have an impact on working cash flow, operating capital..

With that, we would like to conclude the Sony Group consolidated financial results announcement session. Thank you very much..