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Sony Group Corporation
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=== Currency and Exchange Rate Risks === Sony's operations and financial state may be affected by any fluctuations in foreign exchange rates due to the company's global sales. Sonyโs electronics businesses, research and development and headquarters overhead costs are incurred mainly in Yen. Manufacturing and material costs, on the other hand, are incurred mainly in USD and Yen. This implies that any weakening of the Yenโs value against USD could lead to escalated operation costs, consequently impacting Sony's stability over the long term. The majority of sales are recorded in Yen, USD, Euros, Chinese Yuan. If the Yen strengthens significantly against these foreign currencies it may have an adverse impact on Sony's equity capital, as the incomes from all of its subsidiaries are prepared by translating the local currency of the operating country into Yen.
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