This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 3 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the six-month period ended September 30, 2015 (IFRS)Tokyo, November 4, 2015

1.

Financial Highlights(Millions of yen; amounts are rounded off to the nearest million yen)

(1) Results of Operations(Percentages are shown as year-on-year changes)

OperatingincomeNet sales
Amount%Amount%Incomebefore incometax
Amount%

Net income

Net income
attributable toowners of theparentTotal
comprehensive
incomeAmountAmountAmount%%%Six-month period ended¥4,423,802 10.0 ¥685,766 21.4 ¥818,616 (15.1) ¥508,625 (16.4) ¥426,683 (23.9) ¥481,723 (36.0)
September 30, 2015
Six-month period ended¥4,021,865
September 30, 2014-

¥564,946¥964,176-

Basic earnings per
share (yen)Diluted earnings per
share (yen)Six-month period ended
September 30, 2015¥359.56¥349.81Six-month period ended
September 30, 2014

¥471.74¥471.25-¥608,441 36.6 ¥560,710

36.7¥752,181 262.4

Note:
Net sales, operating income, and income before income tax for the six-month period ended September 30, 2015 are presented basedon the amounts from continuing operations only. Year-on-year percentage changes in net sales, operating income, and income
before income tax for the six-month period ended September 30, 2014 are not presented because corresponding amounts for thesix-month period ended September 30, 2014 are revised and presented respectively.
Please refer to page 55 “Note 14. Discontinued operations” under “3. Condensed Interim Consolidated Financial Statements (6)Notes to Condensed Interim Consolidated Financial Statements” for details.

(2) Financial Position

Total assets

Total equity

Equityattributable toowners of theparentRatio of equity
attributable toowners of the parent
to total assets (%)

As of September 30, 2015

¥21,426,330¥3,936,650¥2,995,148

14.0

As of March 31, 2015

¥21,034,169¥3,853,177¥2,846,306

13.5

2.

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2015
Fiscal year ending
March 31, 2016
Fiscal year ending
March 31, 2016
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

20.00

-

20.00

40.00

-

20.00
-

20.00

40.00

Note:
Revision of forecasts on the dividends: No

3. Forecasts on the Consolidated Results of Operations for the Fiscal Year Ending March 2016 (April 1, 2015 – March 31, 2016)
Currently it is difficult to provide forecasts on the results in figures due to a large number of uncertain factors affecting theearnings. The Company will announce its forecasts on the consolidated results of operations when it becomes possible to
make a rational projection.
* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Excluded from consolidation: Three companies
SoftBank BB Corp. SoftBank Telecom Corp. Ymobile Corporation
Please refer to page 34 “Significant Changes in Scope of Consolidation for the Six-month Period Ended September 30, 2015”
under “2. Notes to Summary Information” for details.
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: Yes
Please refer to page 34 “Changes in Accounting Estimates” under “2. Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of September 30, 2015:
1,200,660,365 shares
As of March 31, 2015:
1,200,660,365 shares[2] Number of treasury stock:
As of September 30, 2015:
26,805,268 shares
As of March 31, 2015:
11,463,275 shares[3] Number of average stocks during six-month period (April-September):
As of September 30, 2015:
1,186,678,615 shares
As of September 30, 2014:
1,188,593,575 shares* Implementation status of interim review proceduresThis interim consolidated financial report is not subject to interim review procedures based on the Financial Instruments
and Exchange Act, and the review procedures for the condensed interim consolidated financial statements were being
conducted when this report was disclosed.
* Note to forecasts on the consolidated results of operations and other items
The company name was changed from SoftBank Corp. to SoftBank Group Corp. on July 1, 2015.
The forecast figures are estimated based on the information that the Company is able to obtain at the present point andassumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On November 4, 2015, the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on our website in both Japanese and English at
http://www.softbank.jp/en/corp/irinfo/. The Earnings Results Data Sheet will also be posted on the Company’s website
around 4 p.m. on the same day at http://www.softbank.jp/en/corp/irinfo/presentations/.

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(Appendix)

Contents
1. Qualitative Information Regarding Six-month Period Results ............................................................................... P. 2
(1) Qualitative Information Regarding Consolidated Results of Operations ......................................................... P. 2
a. Consolidated Results of Operations ............................................................................................................... P. 2
b. Results by Segment ....................................................................................................................................... P. 8
(Reference 1: Principal Operational Data) ........................................................................................................ P. 20(Reference 2: Definitions and Calculation Methods of Principal Operational Data) ........................................ P. 23(Reference 3: Capital Expenditure, Depreciation and Amortization) ................................................................ P. 25(2) Qualitative Information Regarding Consolidated Financial Position ............................................................... P. 26
a. Assets, Liabilities and Equity ........................................................................................................................ P. 26
b. Cash Flows .................................................................................................................................................... P. 31(3) Qualitative Information Regarding Forecasts on Consolidated Results of Operations .................................... P. 33
2. Notes to Summary Information ............................................................................................................................... P. 34(1) Significant Changes in Scope of Consolidation for the Six-month Period Ended September 30, 2015 ............ P. 34(2) Changes in Accounting Estimates ..................................................................................................................... P. 34
3. Condensed Interim Consolidated Financial Statements ........................................................................................... P. 35(1) Condensed Interim Consolidated Statements of Financial Position .................................................................. P. 35(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income ..................................... P. 37(3) Condensed Interim Consolidated Statements of Changes in Equity ................................................................. P. 41(4) Condensed Interim Consolidated Statements of Cash Flows ............................................................................ P. 43(5) Significant Doubt about Going-concern Assumption ........................................................................................ P. 44(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 44
Change of Company Names
On July 1, 2015, SoftBank Corp., the pure holding company, changed its company name to SoftBank Group Corp.
Moreover, on April 1, 2015, SoftBank Mobile Corp., the company that operates the telecommunications business in Japan,
absorbed SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation and was renamed SoftBank Corp. on
July 1, 2015. The company names that appear in this appendix are the names as of the publication date of this financial
report.
Definition of Company Names and Abbreviations Used in this Appendix
Company names and abbreviations used in this appendix, except as otherwise stated or interpreted differently in the context,
are as follows:
Company Name/ Abbreviation

Definition“SoftBank Group Corp.”

SoftBank Group Corp. (stand-alone basis)

The “Company”

SoftBank Group Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company, and its subsidiaries if any.
“Sprint”

Sprint Corporation“Brightstar”

Brightstar Corp.

“Supercell”

Supercell Oy“Alibaba”

Alibaba Group Holding Limited“GungHo”

GungHo Online Entertainment, Inc.

1

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

1. Qualitative Information Regarding Six-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
a. Consolidated Results of Operations(Millions of yen)Six-month Period
Ended September 30,
2014

Six-month Period
Ended September 30,
2015

4,021,865

4,423,802

401,937

10.0%

564,946

685,766

120,820

21.4%-

59,44159,441-

964,176

818,616(145,560)(15.1%)

599,275

14,631(584,644)-

591,443515,593(75,850)(12.8%)

16,998(6,968)(23,966)-

608,441

508,625(99,816)(16.4%)

560,710426,683(134,027)(23.9%)

ChangeChange %Continuing operations
Net sales
Operating income(incl.) Gain from remeasurement
relating to business combination

Income before income tax(incl.) Dilution gain from changes
in equity interest

Net income from continuing
operations
Discontinued operations
Net income (loss) fromdiscontinued operations
Net income
Net income attributable to ownersof the parent

Reference: Average exchange rate for the quarter
Fiscal Year Ended March 2015

USD / JPY

Fiscal Year Ending March 2016

Three-month
Period Ended
June 30, 2014

Three-month
Period Ended
Sept. 30, 2014

Three-month
Period Ended
Dec. 31, 2014

Three-month
Period Ended
Mar. 31, 2015

Three-month
Period Ended
June 30, 2015

Three-month
Period Ended
Sept. 30, 2015

Q1

Q2

Q3

Q4

Q1

Q2

¥102.14¥104.35¥121.34¥121.91¥114.39¥119.56< Results Related to GungHo >In the six-month period ended September 30, 2015 (the “period”), due to the conclusion of a tender offer by GungHo for
its own shares, in which the Company tendered, and the extinguishing of a pledge on 100,000,000 of GungHo’s commonshares held by Heartis G.K. (a pledge with Son Holdings Inc. as the pledgee), GungHo no longer qualified as a subsidiaryand newly became an equity method associate. Accordingly, GungHo’s net income and loss up until June 1, 2015, when
GungHo became an equity method associate, are presented as discontinued operations separately from continuing
operations. The Company’s equity in the net income and loss of GungHo following its transition into an equity method
associate are recognized as income and loss on equity method investments under continuing operations. Net income andloss of GungHo for the six-month period ended September 30, 2014 (the “same period of the previous fiscal year”) arerevised retrospectively and presented under discontinued operations.

2SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

Please refer to page 55 “14. Discontinued operations” under “3. Condensed Interim Consolidated Financial Statements(6) Notes to Condensed Interim Consolidated Financial Statements” for details.
Fiscal Year Ended March 2015
Three-monthThree-month
Period Ended
Period Ended
Sept. 30, 2014
Dec. 31, 2014

Three-month
Period Ended
June 30, 2014

Earnings for the
Fiscal Year Ended
March 2015

Q1

Q2

Three-month
Period Ended
Mar. 31, 2015

Q3

Q4

Fiscal Year Ending March 2016
Three-monthThree-month
Period Ended
Period Ended
June 30, 2015
Sept. 30, 2015
Q1

Q2

Continuing Operations(GungHo’s earnings were included as a subsidiary)

Earnings for the
Fiscal Year Ending
March 2016

June 1
GungHo changed to an equity method
associate from a subsidiary

Discontinued Operations

Continuing Operations

Net income and loss from discontinued operations

Income and loss onequity method
investments

An overview of the consolidated results of operations for the period is as follows:
From the three-month period ended June 30, 2015 (the “first quarter”), the Company’s reportable segments have beenchanged to the Domestic Telecommunications segment, the Sprint segment, the Yahoo Japan segment, and the Distribution
segment.

Please refer to page 8 “b. Results by Segment” for details.

(Continuing Operations)(a) Net Sales
Net sales totaled ¥4,423,802 million, for a ¥401,937 million (10.0%) year-on-year increase.

This resulted fromincreases in net sales of all the segments.
The Domestic Telecommunications segment’s net sales (for customers) amounted to ¥1,489,829 million, for a¥73,860 million (5.2%) increase year on year. The main reason for the increase was an increase in product and othersales at SoftBank Corp.
The Sprint segment’s net sales (for customers) totaled ¥1,867,528 million, for a ¥93,227 million (5.3%) year-on-yearincrease. The main reason for the increase was the yen’s year-on-year depreciation against the U.S. dollar, while theU.S. dollar based net sales decreased year on year.
The Yahoo Japan segment’s net sales (for customers) was ¥244,710 million, for a ¥46,035 million (23.2%) year-onyear increase.

The main reason for the increase was the consolidation of ASKUL Corporation by Yahoo Japan

Corporation in August 2015.
The Distribution segment’s net sales (for customers) amounted to ¥628,587 million, for a ¥149,830 million, or 31.3%
year-on-year increase. The main reason for the increase was an increase in sales of mobile devices for Sprint. Since
September 2014, sales of mobile devices at Sprint, which were previously sold directly from Sprint to dealers, have
gradually been shifted to selling to dealers via Brightstar to pursue higher distribution efficiency.

3

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015(b) Operating Income
Operating income totaled ¥685,766 million, for a year-on-year increase of ¥120,820 million (21.4%).

The mainreasons for the increase were increases in income in the Domestic Telecommunications, Sprint, and Yahoo Japan
segments of ¥23,633 million, ¥16,789 million, and ¥58,115 million, respectively.
The income in the Yahoo Japan segment includes a gain from remeasurement relating to business combination of¥59,441 million (not recorded in the same period of the previous fiscal year).

This was recorded by Yahoo Japan

Corporation due to the remeasurement at fair value of its existing equity interest at the time when it consolidated ASKULCorporation.

(c) Finance Cost
Finance cost totaled ¥215,668 million, for a ¥44,422 million (25.9%) increase year on year. The increase was mainly
due to an increase in the interest expense of Sprint caused by the yen’s year-on-year depreciation against the U.S. dollar,
as well as an increase in the interest expense of SoftBank Group Corp.
(Millions of yen)Six-month Period Ended
September 30, 2014
Finance cost(incl.) Sprint

Six-month Period Ended
September 30, 2015

Change(171,246)(215,668)(44,422)(110,769)(138,460)(27,691)(d) Income and Loss on Equity Method Investments
Income on equity method investments was ¥264,586 million, an increase of ¥283,882 million year on year (loss of¥19,296 million was recorded in the same period of the previous fiscal year).

This was mainly due to recording incomeon equity method investments of ¥251,294 million for the period, which is presented as (C) on page 5 under “Reference:

Amount of impact of Alibaba on the Company’s Consolidated Income before Income Tax” (the “impact amounttable”), as the portion attributable to the Company out of Alibaba’s net income of ¥777,019 million (IFRSs basis). Net
income at Alibaba includes gain from remeasurement relating to business combination of ¥369,994 million, which wasrecorded due to remeasurement at fair value of Alibaba’s existing equity interest in its equity method associate Alibaba
Health Information Technology Limited at the time of its consolidation in July 2015. Of this, ¥119,121 million wasincome attributable to the Company, as shown in the impact amount table as (D).
The Company’s loss on equity method investments of ¥19,296 million in the same period of the previous fiscal year
was mainly attributable to recording loss on equity method investments of ¥27,595 million, shown as (E) in the impact
amount table, as the portion attributable to the Company out of Alibaba’s net loss of ¥79,086 million (IFRSs basis).
Alibaba’s net loss included a loss of ¥398,716 million recognized in conjunction with an increase in the fair value ofConvertible Preference Shares issued by Alibaba. Of this, ¥144,235 million was loss attributable to the Company,
presented as (F) in the impact amount table.

4SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(Millions of yen)Six-month Period Ended
September 30, 2014

Six-month Period Ended
September 30, 2015

Income and loss on equity
method investments(19,296)

264,586

283,882-(incl.) Alibaba(27,595)

251,294

278,889-

ChangeChange %(e) Dilution Gain from Changes in Equity Interest
Dilution gain from changes in equity interest was ¥14,631 million, a decrease of ¥584,644 million year on year. Thisis mainly attributable to the Company recording dilution gain from changes in equity interest of ¥599,141 million in thesame period of the previous fiscal year, as shown in the impact amount table as (G), in connection with the listing of
Alibaba in September 2014, primarily as a result of the issuance of new shares by Alibaba and the conversion of its
Convertible Preference Shares into common stock. ¥12,863 million was recorded in the period, which is presented as(H) in the impact amount table.

Reference: Amount of impact of Alibaba on the Company’s Consolidated Income before Income Tax(Millions of yen)Six-month Period Ended
September 30, 2014
Income and loss on equity
investments related to Alibaba (A)Change251,294

278,889-

144,235

119,121

119,121116,640

132,173

15,533

Dilution gain from changes in equity
interest related to Alibaba (B)(G) 599,141(H) 12,863(586,278)(incl.) Dilution gain from changes inequity interest due to listing

563,111-(563,111)

Amount of impact of Alibaba on the
Company’s consolidated income
before income tax(A) + (B)

571,546

264,157(307,389)

Loss on increase in fair value ofConvertible Preference Shares (i)(E) (27,595)

Six-month Period Ended
September 30, 2015

(F)

Gain from remeasurement relating tobusiness combination (ii)(144,235)-

Income and loss on equity method
investments excluding (i) and (ii)

(C)

(D)

(f) Other Non-operating Income and Loss
Other non-operating income was ¥69,301 million, an improvement of ¥78,804 million compared to the same period of
the previous fiscal year (loss of ¥9,503 million).

The primary components of other non-operating income and loss

were as follows.
i. Gain from financial assets at FVTPL (Fair Value Through Profit or Loss) was ¥112,625 million, increasing by ¥111,407
million year on year. This was due to recording the amount of changes in the fair value of the Company’s financial

5SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

assets at FVTPL during the period from March 31, 2015 (the “previous fiscal year-end”) to September 30, 2015 (the“end of the second quarter”), as gain and loss from financial assets at FVTPL.

Financial assets at FVTPL includes

preferred shares of ANI Technologies Pvt. Ltd., which operates the taxi booking platform Ola in India, and Jasper
Infotech Private Limited, which operates the e-commerce website snapdeal.com, also in India.
Financial assets at FVTPL is a class of financial instruments under IFRSs. The fair values of financial assets at
FVTPL are required to be measured at the end of each quarter, with changes to be recognized as net income or loss.
ii. A total of ¥38,185 million was recorded for impairment loss on securities and provision of allowance for doubtful
accounts as a loss due to the writing down of the value of shares and debt interests related to investments in PT
Trikomsel Oke Tbk. in Indonesia.
Please refer to page 55 “13. Other non-operating income (loss)” under “3. Condensed Interim Consolidated Financial
Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.

(g) Income before Income Tax
As a result of (b) to (f), income before income tax was ¥818,616 million, a decrease of ¥145,560 million (15.1%) year
on year.

(h) Income Taxes
Income taxes were ¥303,023 million, a decrease of ¥69,710 million (18.7%) year on year.

Tax effects were recognizedin principle for income on equity method investments such as Alibaba, and gain from financial assets at FVTPL.

(i) Net Income from Continuing Operations
As a result of (g) and (h), net income from continuing operations totaled ¥515,593 million, for a ¥75,850 million (12.8%)
year-on-year decrease.

(Discontinued Operations)(j) Net Income and Loss from Discontinued Operations
Net loss from discontinued operations was ¥6,968 million (net income of ¥16,998 million was recorded in the same
period of the previous fiscal year). This was due to recording ¥12,739 million for loss relating to loss of control in
discontinued operations related to GungHo, as well as other expenses, while also recording its income after income taxof ¥5,632 million for the period from April 1 to June 1, 2015.

The amount of loss relating to loss of control in

discontinued operations is the difference between the carrying amount of GungHo on a consolidated basis and its fairvalue, which is the closing share price of GungHo multiplied by the number of its shares held by the Company, at thetime of loss of control over GungHo on June 1, 2015.

6

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015(k) Net Income
As a result of (i) and (j), net income amounted to ¥508,625 million, a ¥99,816 million (16.4%) year-on-year decrease.
(l) Net Income Attributable to Owners of the Parent
After deducting net income attributable to non-controlling interests such as Yahoo Japan Corporation, Supercell, andSprint from (k), net income attributable to owners of the parent amounted to ¥426,683 million, for a ¥134,027 million,(23.9%) decrease year on year.
(m) Comprehensive Income
Comprehensive income totaled ¥481,723 million, for a ¥270,458 million (36.0%) year-on-year decrease.

Of this,comprehensive income attributable to owners of the parent was ¥398,085 million, for a ¥283,361 million (41.6%) yearon-year decrease.

7

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015b. Results by Segment
The Company’s reportable segments are components of business activities for which decisions on resource allocation
and assessment of performance are made.
In preparation for the transition to “SoftBank 2.0,” the Company has initiated its transformation from a strong
Japanese business with global assets to a global business that will strive to create sustainable growth over the longterm. In line with this, the Company has revised its segment classifications and changed its reportable segments fromthe first quarter as follows:< Before the Change >Segments

MobileCommunications

Reportablesegments

Main Businesses
・Provision of mobile communications services inJapan・Sale of mobile devices and accessories
・Sale of PC software and peripherals
・Production and distribution of online games for
smartphones and other devices

Core Companies
Former SoftBank Mobile Corp.
Former Ymobile Corporation
Wireless City Planning Inc.
Brightstar Corp.
Former SoftBank Telecom Corp.
GungHo Online Entertainment, Inc.
Supercell Oy
Sprint Corporation

・Provision of mobile communications services bySprint in the U.S.
・Sale of mobile devices and accessories accompanying
Sprintthe above services
・Provision of fixed-line telecommunications services
by Sprint
・Provision of telecom services such as fixed-line
Former SoftBank Telecom Corp.
telephone and data communications services toFormer SoftBank BB Corp.
Fixed-line
Former Ymobile Corporation
domestic corporate customers
Telecommunications ・Provision of broadband services to domestic retailYahoo Japan Corporation
customers
・Services accompanying the above services
・Internet advertising
Yahoo Japan Corporation
Internet・e-commerce business・Membership services
・Fukuoka SoftBank HAWKS related businesses
Fukuoka SoftBank HAWKS Corp.
Others< After the Change >Segments

Reportablesegments

Main Businesses

Core Companies

・Provision of mobile communications services in
SoftBank Corp.
Japan
Wireless City Planning Inc.
・Sale of mobile devices in Japan・Provision of broadband services to retail customers in
Domestic
Telecommunications Japan・Provision of telecom services to corporate customers
in Japan, such as data communications and fixed-line
telephone services
・Provision of mobile communications services in the Sprint Corporation
U.S.
・Sale and lease of mobile devices and sale ofSprintaccessories in the U.S.
・Provision of fixed-line telecommunications services
in the U.S.
・Internet advertising
Yahoo Japan Corporation
Yahoo Japan・e-commerce business・Membership services
・Distribution of mobile devices overseas
Brightstar Corp.
Distribution
・Sale of PC software, peripherals, and mobile device SoftBank Commerce & Service
accessories in Japan
Corp.
・Production and distribution of online games forSupercell Oy
Otherssmartphones and other devices
Fukuoka SoftBank HAWKS Corp.
・Fukuoka SoftBank HAWKS related businesses

8SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

Notes:
1. The results for the same period of the previous fiscal year are presented in accordance with the reportable segments after
the change.
2. The results at Yahoo Japan Corporation related to Yahoo! BB, the broadband service which is run jointly by SoftBank Corp.
and Yahoo Japan Corporation, are included under the Yahoo Japan segment after the change. The results were previously
included under the Fixed-line Telecommunications segment.
3. The calculation method of segment income has been changed from the first quarter as follows:
Before the change:
Segment income = (net sales – cost of sales – selling, general and administrative expenses) in each segment
After the change:
Segment income = (net sales – cost of sales – selling, general and administrative expenses + gain from remeasurement
relating to business combination + other operating income (loss)) in each segment
4. EBITDA in each segment = (segment income + depreciation and amortization – gain from remeasurement relating tobusiness combination – other operating income (loss)) in each segment(a) Domestic Telecommunications Segment(Millions of yen)Six-month Period Ended
September 30, 2014

Six-month Period Ended
September 30, 2015

ChangeChange %Net sales

1,424,350

1,503,964

79,614

5.6%

EBITDA

613,058

642,833

29,775

4.9%

Depreciation andamortization(212,007)(218,149)(6,142)-Other operating
income----Segment income

401,051424,684

23,633

5.9%< Overview of the Segment >The Domestic Telecommunications segment comprises the subsidiaries that operate domestic telecommunications
businesses, such as SoftBank Corp. and Wireless City Planning Inc.

SoftBank Corp. provides (i) mobile

communications services under the SoftBank and Y!mobile brands, (ii) broadband services for retail customers, suchas SoftBank Hikari1 and Yahoo! BB, and (iii) fixed-line telecommunications services for corporate customers, suchas data communications and fixed-line telephone services.

Wireless City Planning Inc. provides broadband

wireless access (BWA) services using the 2.5 GHz band.
The segment’s net sales are categorized as telecom service revenue and product and other sales. Telecom service
revenue includes the communication revenues of each service (i)-(iii) above, as well as device warrantee service
revenue, advertising revenue, and content-related revenues.

Product and other sales include the sales of mobile

devices for mobile communications services and the sales terminals for broadband services on customer premises.
The main drivers of revenue and profit in mobile communications services are referred to as the Company’s “mainsubscribers,” which includes subscribers for smartphones, feature phones, tablets, and mobile data communication
devices. The Company makes a focused effort to acquire and retain these main subscribers.

1

A fiber-optic service using the wholesale fiber-optic connection of NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION (“NTT East”)
and NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION (“NTT West”)

9SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(Breakdown of Net Sales)(Millions of yen)Six-month Period Ended
September 30, 2014

Six-month Period Ended
September 30, 2015

ChangeChange %1,424,350

1,503,964

79,614

5.6%

Telecom service revenue

1,165,004

1,186,793

21,789

1.9%

Mobile communications

962,523

971,413

8,890

0.9%

Telecom2

867,844864,317(3,527)(0.4%)

3

Service

94,679107,096

12,417

13.1%

Broadband

65,71579,337

13,622

20.7%

Fixed-line
telecommunications

136,766

136,043(723)(0.5%)

Product and other sales

259,346

317,171

57,825

22.3%

Total net sales< Overview of Operations >The segment’s net sales increased by ¥79,614 million (5.6%) year on year to ¥1,503,964 million. Of this, telecom
service revenue increased by ¥21,789 million (1.9%) year on year to ¥1,186,793 million, while product and othersales increased by ¥57,825 million (22.3%) year on year to ¥317,171 million.
The increase in telecom service revenue reflected an increase in broadband revenue following the startup of the
SoftBank Hikari fiber-optic service (launched in March 2015), as well as an increase in mobile communications
revenue.

The increase in product and other sales reflected an increase in the number of mobile devices shipped4

for smartphones, which have higher unit prices.
Mobile communications revenue increased by ¥8,890 million (0.9%) year on year to ¥971,413 million, primarily
due to an increase in service revenue associated with an expansion in content services and others, which was partially
offset by a decrease in telecom revenue associated with a decrease in PHS subscribers.
EBITDA increased by ¥29,775 million (4.9%) year on year to ¥642,833 million. Operating expenses (excluding
depreciation and amortization) increased by ¥49,839 million (6.1%) year on year to ¥861,131 million.

The mainfactors affecting operating expenses are as follows:
・Cost of products increased by ¥37,701 million (17.7%) year on year. This primarily reflected an increase in
the number of mobile devices shipped for smartphones, which have higher purchase prices, despite an
improvement in the valuation loss of mobile device inventories.
・Sales commission fees increased by ¥16,061 million (10.1%) year on year. This was mainly due to a year-onyear increase in the average cost of sales commission fees for smartphones associated with intensifiedcompetition for customer acquisition under the Mobile Number Portability (MNP) system.

2
3
4

Telecom revenues of mobile communications services, etc. under SoftBank and Y!mobile brands
Device warrantee service revenue, advertising revenue, and content-related revenues, etc.
The number of devices shipped (sold) to dealers. Includes the number of devices sold to customers at stores operated by SoftBank Corp. and the
SoftBank ONLINE SHOP.

10SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

・Telecommunications network charges5 increased by ¥12,614 million (13.7%) year on year. This primarilyreflected an increase in access charges paid to other operators as a result of an increase in the amount of calls
made by SoftBank Corp. mobile communications service subscribers to subscribers of other operators,
accompanying an increase in subscribers to the Smartphone Flat-rate mobile communication service priceplan providing unlimited voice calls at a flat rate. Another factor increasing telecommunications network
charges was fiber-optic connection charges for the SoftBank Hikari fiber-optic service that was launched in
March 2015.
・Outsourcing expenses decreased by ¥17,335 million (27.2%) year on year. This mainly reflected efficiency
gains in outsourced operations related to customer service and network maintenance following the absorptionof SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation by SoftBank Corp. (formerly
SoftBank Mobile Corp.) in April 2015.
Depreciation and amortization increased by ¥6,142 million (2.9%) year on year to ¥218,149 million.
As a result of the above, segment income increased by ¥23,633 million (5.9%) year on year to ¥424,684 million.
< Overview of Business Operations >Among the segment’s businesses, the following describes an overview of the business operations of the mobile
communications and broadband services of SoftBank Corp.

For definitions and calculation methods of subscribers,

ARPU, and churn rate at SoftBank Corp., please refer to page 23 “(Reference 2: Definitions and Calculation Methodsof Principal Operational Data) (a) SoftBank Corp.”< Changes in the Presentation Method and Definitions of Principal Operational Data >The presentation method and definitions for the principal operational data of mobile communications services havebeen changed from the first quarter. The main changes are as follows:
・The total number of subscribers for SoftBank and Y!mobile services are categorized and presented as main
subscribers, communication modules, and PHS. Main subscribers include the service contracts that are the main
focus of management strategy; namely, smartphones, feature phones, tablets, and mobile data communication
devices.
・ARPU, number of units sold, and churn rates are presented based on data of main subscribers.
・ARPU for main subscribers is separately presented as “telecom ARPU” and “service ARPU.” Telecom ARPU
is calculated by dividing data-related revenue, basic monthly charges, and voice-related revenues by the numberof active subscribers. Service ARPU is calculated by dividing device warrantee service revenue, advertising
revenue, and content-related revenues, etc., by the number of active subscribers.
・The number of subscribers, ARPU, number of units sold and churn rates for the fiscal year ended March 31, 2015
are also presented based on data of main subscribers.
Please refer to page 21 “(Reference 1: Principal Operational Data) (a) SoftBank Corp. < Changes in the Presentation
Method and Definitions of Principal Operational Data >” for details of the changes.

5

The scope of aggregation for managing telecommunications network charges was changed from the second quarter.
charges in the first quarter after reflecting this change increased by ¥5,894 million (13.1%) year on year.

11

Telecommunications network

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

i. Mobile Communications Service
・Subscribers: Main Subscribers
The cumulative number of main subscribers of mobile communications services as of September 30, 2015 stood at
31,604,000, an increase of 59,000 from the previous fiscal year-end. Net additions in smartphones and tablets
during the period were partially offset by a net loss in feature phones.
(Thousands)
As of March 31, 2015
Cumulative number ofsubscribers

As of September 30, 2015

31,54531,604

Change59

・Smartphone & Internet Bundle Discount Applications
The Smartphone & Internet Bundle Discount offers a discount on the communication charges of mobile
communications services to customers subscribing to bundled packages combining mobile communications services(applicable for smartphones, feature phones, and tablets among main subscribers) and broadband services such as
SoftBank Hikari.

The cumulative number of applications at the end of the second quarter eligible for the

Smartphone & Internet Bundle Discount stood at 1,315,0006 for mobile communication services, and 660,000 for
broadband services.7

・ARPU: Main Subscribers
Total ARPU for main subscribers of mobile communications services for the three-month period ended September
30, 2015 (the “second quarter”) was ¥4,720, for a year-on-year increase of ¥10.
Of this, telecom ARPU declined by ¥40 year on year to ¥4,190. This was mainly due to a decline in voice-related
revenues accompanying the higher penetration of Smartphone Flat-rate, which was partially offset by an increase in
the compositional ratio of smartphone subscribers within the cumulative number of main subscribers. An additional
factor reducing telecom ARPU was an increase in the number of cumulative applications eligible for Smartphone &Internet Bundle Discount. The negative impact from the Smartphone Flat-rate on year-on-year variance of telecom
ARPU began to decline from the second quarter, as the migration of the majority of customers with high voice usage
to Smartphone Flat-rate has advanced.
Service ARPU increased ¥60 year on year to ¥540. This reflects the steady increase of subscribers to content
services such as Daily Value Pack8 and App Pass.9

The Company will strive to further increase total ARPU going

forward by aggressively pursuing the increase of service ARPU.

6

Includes the Fiber-optic Discount applied to mobile communication services under Y!mobile brand
The number of eligible applications for Smartphone & Internet Bundle Discount includes that of fiber-optic lines as long as the relevant discount isapplied to the associated mobile communications services, even if its connection construction is not complete at the central office of NTT East or NTT
West.
8
A service enabling subscribers to purchase food and movie tickets, among other items, at discounts
9
A service enabling subscribers to use a select range of popular apps
7

12

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(Yen / Month)Three-month Period Ended
September 30, 2014

Three-month Period Ended
September 30, 2015

4,710

4,720

10

Telecom ARPU

4,230

4,190

(40)

Service ARPU

480

540

60

Total ARPU

Change・Number of Units Sold: Main Subscribers
The number of units sold10 for mobile devices of main subscribers for the period decreased by 193,000 year on year
to 4,665,000.

This was mainly due to a year-on-year decrease in the number of units sold for feature phones,

primarily to new subscriptions, which outstripped a year-on-year increase in the number of units sold for smartphones.
(Thousands)
Six-month Period Ended
September 30, 2014

Six-month Period Ended
September 30, 2015

4,858

4,665

(193)

New subscriptions

2,547

2,378

(169)

Device upgrades

2,311

2,287

(24)

Units sold

Change・Churn Rate: Main Subscribers
Churn rate for main subscribers of mobile communications services for the second quarter was 1.28%, improved by
0.02 of a percentage point year on year mainly due to an improvement in the churn rates for feature phones andtablets. This outweighed a deterioration in the churn rate for smartphones associated with intensified competition
to acquire customers under MNP amid an increase in customers reaching the end of their two-year subscriptions.
To increase the number of main subscribers, it is important to improve the churn rate as well as acquire newcustomers. After making significant progress on improving network connectivity, which has been a longstanding
issue, the Company is now executing initiatives targeting improved churn rates over the medium term.

The

initiatives include improving the quality of customer service at sales channels such as SoftBank Stores, as well as
expanding the Smartphone & Internet Bundle Discount.

Churn rate

10

Three-month Period Ended
September 30, 2014

Three-month Period
Ended September 30, 2015

1.30%

1.28%

Change0.02 pp improvement

The total number of new subscriptions and device upgrades. New subscriptions where customers switch between SoftBank and Y!mobile using MNP
are included in the number of device upgrades.

13SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

ii. Broadband Service
The cumulative number of subscribers for broadband services at the end of the second quarter stood at 4,602,000, for
an increase of 245,000 from the previous fiscal year-end. The increase mainly reflected an increase of 596,00011
subscribers to SoftBank Hikari, while subscribers to Yahoo! BB hikari with FLET’S 12 and Yahoo! BB ADSL 13
decreased by 237,000 and 114,000, respectively.
After the launch of SoftBank Hikari, a fiber-optic service, in March 2015, the main focus of broadband services
has been shifted from Yahoo! BB hikari with FLET’S to SoftBank Hikari and the Company is now working to acquire
customers through sales channels nationwide such as electronics retail stores and SoftBank Stores. SoftBank Hikari
ARPU11 for the second quarter was ¥4,980, higher than that of Yahoo! BB hikari with FLET’S (¥1,860 for the second
quarter) and Yahoo! BB ADSL (¥2,660 for the second quarter). The Company therefore expects a steady increasein telecom service revenue of broadband services in step with the increase in subscribers to SoftBank Hikari.
(Thousands)
As of March 31, 2015

As of September 30, 2015

ChangeCumulative subscribers

4,357

4,602

245

SoftBank Hikari11

119

715

596

Yahoo! BB hikariwith FLET’S

2,672

2,435

(237)

Yahoo! BB ADSL

1,566

1,452

(114)

11

Includes the number of subscribers and ARPU of SoftBank Air, the high-speed wireless internet service provided through the Air terminal
An Internet service provider (ISP) service offered as a package with NTT East and NTT West’s FLET’S Hikari Series fiber-optic connection
13
A service combining an ADSL connection service and an ISP service
12

14

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015(b) Sprint Segment(Millions of yen)Six-month Period Ended
September 30, 2014

Six-month Period Ended
September 30, 2015

Net sales

1,783,436

1,946,178

162,742

9.1%

EBITDA

338,110508,778

170,668

50.5%

Depreciation andamortization(261,383)(398,179)(136,796)-

Other operating
loss(12,131)(29,214)(17,083)-

Segment income

64,596

81,385

16,78926.0%

Reference: U.S. dollar based results (IFRSs)

ChangeChange %(Millions of U.S. dollars)

Net sales

17,277

16,002(1,275)(7.4%)EBITDA

3,279

4,183

904

27.6%

631

670

39

6.2%

Segment income< Overview of Operations >The segment’s net sales increased by ¥162,742 million (9.1%) year on year to ¥1,946,178 million.

The main factor

behind the overall increase was the yen’s year-on-year depreciation against the U.S. dollar, although net sales declinedin U.S. dollar terms by $1,275 million (7.4%) year on year. The decrease in U.S. dollar net sales mainly reflecteda decrease in telecom service revenue due to customer shifts to rate plans associated with device financing options
such as leases and installment sales.
EBITDA increased by ¥170,668 million (50.5%) year on year to ¥508,778 million.

This reflected an increase in

EBITDA in U.S. dollar terms by $904 million (27.6%), in addition to the yen’s year-on-year depreciation against the
U.S. dollar. The increase in EBITDA in U.S. dollar terms primarily reflects a year-on-year decrease in operating
expenses (excluding depreciation and amortization) of $2,179 million due to decreases in the cost of goods andprovision for doubtful accounts, among others. The main factors affecting operating expenses are as follows:
・The decrease in cost of goods mainly occurred because the compositional ratio of postpaid units sold under
the leasing program, which started in September 2014, reached 51% of the number of Sprint platform14
postpaid units sold (excluding wholesale and affiliate) in the period. This was partially offset by the around
4% year-on-year increase in the number of Sprint platform postpaid units sold. For the conventional salesof mobile devices, including the installment billing method, the sale of the devices and the cost of goods arerecognized at the point of sale.

However, under the leasing program, lease revenue is recognized throughout

the period of the lease (typically 24 months), along with depreciation expenses for the capitalized leased
devices.
14

Sprint-operated CDMA and LTE networks

15

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

・The decrease in provision of allowance for doubtful accounts mainly reflected a decrease in non-payment ofservice charges resulting from an increase in the compositional ratio of customers with higher credit quality.
Depreciation and amortization increased by ¥136,796 million (52.3%) year on year to ¥398,179 million, reflecting
the increase in leased mobile devices and the expansion of telecommunications equipment.
Other operating loss was ¥29,214 million, a deterioration of ¥17,083 million from the same period of the previous
fiscal year.

The loss mainly reflected recording legal reserves of ¥19,140 million for ongoing legal matters, as wellas impairment loss on non-current assets of ¥10,403 primarily related to cell site construction costs that are no longer
expected to be used as a result of changes in Sprint’s network plans.
As a result of the above, segment income increased by ¥16,789 million (26.0%) year on year to ¥81,385 million.
Since the amounts of lease revenues and depreciation on capitalized leased devices are essentially the same, anincrease in sales under the leasing program will contribute to an increase in EBITDA, but will only have a slight
impact on segment income.
< Overview of Business Operations >Among the segment’s businesses, the following describes an overview of the business operations related to the Sprint
platform.

For definitions and calculation methods of ABPU/ARPU and churn rate of the Sprint platform, see page

24 “(Reference 2: Definitions and Calculation Methods of Principal Operational Data) (b) Sprint Platform.”・ Number of Subscribers: Sprint Platform
The Sprint platform had 57,868,000 subscribers as of the end of the second quarter, an increase of 1,731,000 from theend of the previous fiscal year. This represented a net addition of 1,597,000 in wholesale and affiliate and 863,000 in
postpaid in the period, although there was a net loss of 729,000 in prepaid.
The net addition in wholesale and affiliate subscribers was driven mainly by growth in the number of communication
modules. The net addition in postpaid was mainly due to a continued increase in tablets, as well as a net addition of
226,000 in phones (smartphones and feature phones).

Excluding 199,000 of migrations from prepaid, 15 the net

addition in phones would have been 27,000. On the other hand, net loss in prepaid was due to intensified competitionin the prepaid market, as well as the migrations to postpaid.15(Thousands)

As of March 31, 2015
Sprint platform cumulative
subscribers

Change56,13757,868

1,731

29,70630,569863

24,87825,104226

Prepaid15

15,706

14,977(729)

Wholesale & affiliate

10,725

12,322

1,597

Postpaid(incl.) Phone15

15

As of September 30, 2015

During the second quarter, Sprint introduced a program to provide certain tenured prepaid subscribers with an extended payment period for their next
month of service charges beyond the expiration of their current monthly plan, while normally if customers on the monthly prepaid service plan do not
pay the next month’s charges by the due date, they will not be able to use the service. It is the extension of credit which defines the customers as
postpaid. Prepaid subscribers who have applied for this program are included in postpaid subscribers as “migrations” from prepaid.

16

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

・ABPU: Sprint Platform Postpaid Phone
Sprint platform postpaid phone ABPU for the second quarter increased by $1.62 year on year to $70.64.
Out of this, ARPU declined by $4.88 year on year to $61.74.

This was mainly due to an increase in thecomposition ratio of customers on lower-priced rate plans offered in conjunction with device financing programs suchas leases and installment sales.
On the other hand, average equipment billings per user per month increased by $6.50 year on year to $8.90. This
reflected the increased adoption of device financing programs.
(U.S. dollar / month)Three-month Period Ended
September 30, 2014

Three-month Period
Ended September 30, 2015

Postpaid phone ABPU

69.02

70.64

1.62

ARPU
Average equipment
billings per user

66.62

61.74

(4.88)

2.40

8.90

6.50

Change・Churn Rate: Sprint Platform
The Sprint platform postpaid churn rate for the second quarter improved by 0.64 of a percentage point year on year
to 1.54%. This was primarily attributable to network performance improvements, as well as a decrease in forced
deactivations due to non-payment of service charges following focused efforts to acquire customers with higher credit
quality beginning in August 2014.
Three-month Period Ended
September 30, 2014

Three-month Period
Ended September 30, 2015

2.18%

1.54%

Postpaid churn rate

Change0.64 pp improvement< Reference: Cost Reduction Initiatives >Sprint aims to return to a growth trajectory by turning around the ongoing declining trend in net sales while promoting
large-scale cost reductions. To increase net sales, Sprint is focusing on increasing the number of postpaid phone
subscribers, which are the largest source of revenue. Signs of a turnaround began to appear in the period, with the
downward trend in the number of such subscribers turned to a net addition.

Meanwhile, in cost reductions, Sprint

has set a target of reducing operating expenses by $1.5 billion (under US GAAP, hereinafter the same shall apply tothe amounts in this section) from the run rate16 in the fiscal year ending March 2016 (the “current fiscal year”),
reviewing the budget from scratch across all areas.
So far, Sprint has made steady progress on cost reductions during the period and is expected to achieve the $1.5
billion target. The bulk of the reduced operating expenses has been reinvested in strategic initiatives to achieve along-term growth.
To further reduce operating expenses, Sprint plans to commence a transformation of cost structure (the“transformation”) during the current fiscal year. Through the transformation, Sprint expects to achieve a sustainable

16

Estimated future figures based on the assumption that current trends continue

17SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

reduction of $2 billion or more of run rate operating expenses in the fiscal year ending March 2017 (the “next fiscalyear”), with the cost reduction effect projected to continue in the following fiscal years. In conjunction with thetransformation, Sprint expects to, according to preliminary estimates, incur transformation program costs totaling $1
billion to $1.2 billion including one-time operating expenses and upfront capital expenditure, over the current fiscal
year and the next fiscal year. While the bulk of the operating expense reduction in the current fiscal year is to be
reinvested, the cost reduction by the transformation, with the exception of the transformation program costs, is
expected to contribute to profit.

(c) Yahoo Japan Segment(Millions of yen)Six-month Period Ended
September 30, 2014

Six-month Period Ended
September 30, 2015

Net sales

202,013248,768

46,755

23.1%

EBITDA

100,704

104,387

3,683

3.7%

Depreciation andamortization

ChangeChange %(7,924)(12,933)(5,009)-Gain fromremeasurement relating
to business combination-

59,44159,441-Other operating income

-

-

-

-

92,780150,895

58,115

62.6%

Segment income< Overview of Operations >The segment’s net sales increased by ¥46,755 million (23.1%) year on year to ¥248,768 million.

This increase wasmainly a result of the consolidation of ASKUL Corporation in August 2015 by Yahoo Japan Corporation, as well as
revenue growth in the advertising business driven by an increase in sales of display advertising.17
EBITDA increased by ¥3,683 million (3.7%) year on year to ¥104,387 million. This was primarily due to anincrease in income in the advertising business, despite an increase in sales promotion expense for Yahoo! Shopping.
Depreciation and amortization increased by ¥5,009 million (63.2%) year on year to ¥12,933 million, due tocontinuing capital expenditure related to big data and so forth, as well as the consolidation of ASKUL Corporation
and YJ Card Corporation by Yahoo Japan Corporation.
Gain from remeasurement relating to business combination was ¥59,441 million (not recorded in the same periodof the previous fiscal year). This was recorded due to the remeasurement at fair value of Yahoo Japan Corporation’s
existing equity interest at the time when it consolidated ASKUL Corporation in August 2015.
As a result of the above, segment income increased by ¥58,115 million (62.6%) year on year to ¥150,895 million.

17

Display advertising is graphical, Flash®, and video advertising that appears on a certain defined area and includes premium advertisements such as
Brand Panel shown on Yahoo! JAPAN’s top page and Yahoo! Display Ad Network, which shows advertisements most suitable to the user based on thecontent the user is viewing and their interests, attributes, and geographical location.

18

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015(d) Distribution Segment(Millions of yen)Six-month Period Ended
September 30, 2014

Six-month Period Ended
September 30, 2015

ChangeChange %Net sales

499,467

666,728

167,261

33.5%

EBITDA

8,407

9,928

1,521

18.1%

(4,587)(5,791)(1,204)

-

2,380

-

(2,380)

-

6,200

4,137

(2,063)(33.3%)

Depreciation andamortization
Other operating
incomeSegment income< Overview of the Segment >The Distribution segment comprises subsidiaries such as Brightstar and SoftBank Commerce & Service Corp.
Brightstar became a subsidiary of the Company on January 30, 2014.

Its operations include a wholesaling businesspurchasing mobile devices from manufacturers and distributing them to telecommunications operators and retailers
in countries around the world. SoftBank Commerce & Service Corp.’s operations include the sale of mobile device
accessories and IT-related software and hardware in Japan.
< Overview of Operations >The segment’s net sales increased by ¥167,261 million (33.5%) year on year to ¥666,728 million.
due to an increase in sales of mobile devices for Sprint.

This was mainly

Since September 2014, the sales of mobile devices at Sprint

which were previously sold directly from Sprint to dealers, has gradually been shifted to selling to dealers via
Brightstar to pursue higher distribution efficiency.

Another factor increasing the net sales was the yen’s year-on-

year depreciation against the U.S. dollar. These increases in sales outweighed a decrease in sales associated withthe termination of a mobile device wholesale supply contract with Verizon Communications Inc. and a contractionin the mobile device OEM business being conducted in Argentina (contracted manufacturing for mobile device
manufacturers).
EBITDA increased by ¥1,521 million (18.1%) year on year to ¥9,928 million. This was mainly attributable to a
decline in operating expenses (excluding depreciation and amortization).

The decline in operating expenses mainlyreflected the absence of expenses recorded in the same period of the previous fiscal year in relation to corporate
acquisitions. These factors outweighed the negative effect of the abovementioned termination of the mobile device
wholesale supply contract with Verizon Communications Inc. and contraction of the mobile device OEM business inArgentina.
Segment income was ¥4,137 million, down ¥2,063 million (33.3%) year on year, while EBITDA increased as
described above. This was due to an increase in depreciation and amortization of ¥1,204 million (26.2%) year on
year, as well as the recording of other operating income of ¥2,380 million in the same period of the previous fiscal
year, while none was recorded in the period. Within segment income, income at SoftBank Commerce & Service
Corp. declined by ¥415 million (7.8%) year on year mainly due to the absence of a surge in PC replacement demandthat occurred in the same period of the previous fiscal year in conjunction with Microsoft Corporation ending support
for Windows XP in April 2014, despite continued strong performance in the highly profitable mobile device
accessories business.

19SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(Reference 1: Principal Operational Data)(a) SoftBank Corp.
i. Mobile Communications Service
Fiscal Year Ending
March 2016

Fiscal Year Ended March 2015

Three-month Three-month Three-month Three-monthFiscal Year Three-month Three-month
PeriodPeriod Ended Period Ended Period Ended Period Ended
Ended
Period Ended
Ended
June 30, 2014 Sept. 30, 2014 Dec. 31, 2014 Mar. 31, 2015 Mar. 31, 2015 June 30, 2015 Sept.
30, 2015
Q1
Q2
Q3
Q4
Full Year
Q1
Q2

Main subscribers18¥/ month

30,868
80
4,700
4,220
480

20

% / month

1.19

1.30

1.38

1.57

1.36

1.24

1.28

19

Thousands

New subscriptions

Thousands

1,994
1,182

2,864
1,365

3,587
1,387

3,236
1,817

11,681
5,750

2,197
1,168

2,468
1,210

Device upgrades

Thousands

812

1,499

2,201

1,419

5,930

1,029

1,258

Thousands

639

1,315

Thousands

326

660

Cumulative subscribers

Thousands

Net additions

Thousands

Total ARPU20
Telecom ARPU20¥/ month20

Service ARPU¥/ month

Churn rate
Units sold

31,018
150
4,710
4,230
480

31,173
155
4,710
4,230
490

373
4,580
4,080
500

31,545
758
4,670
4,190
490

31,565
20
4,660
4,140
520

31,604
39
4,720
4,190
540

Cumulative Applications for the Smartphone & Internet Bundle Discount20
Mobile communications
service
21

Broadband service

Overall mobile communications
Cumulative subscribers
Main subscribers18

Thousands

44,56444,90044,88744,88644,417

44,117

Thousands

31,018
8,723

31,173
8,787

31,545
8,615

31,5658,322

31,604
8,156

Communication modules

Thousands

30,868
8,426

PHSThousands

5,271

5,160

4,927

4,726

4,530

4,356

Thousands

4,242

4,243

4,256

4,357
119

4,452
341

4,602
715

Thousands

2,531

2,583

2,638

2,672

2,610

2,435

Thousands

1,711

1,660

1,618

1,566

1,501

1,452

4,270

4,980

18

ii. Broadband Service
Cumulative subscribers
SoftBank Hikari18, 22
Yahoo! BB hikari with
FLET’S18, 23
Yahoo! BB ADSL18, 24

Thousands

ARPU18SoftBank Hikari18, 22¥/ month

Yahoo! BB hikari with
FLET’S18, 23¥/ month

1,770

1,830

1,840

1,830

1,820

1,830

1,860

Yahoo! BB ADSL18, 24¥/ month

2,870

2,830

2,780

2,740

2,810

2,680

2,660

3,100

Note:
5. The presentation method and definitions for the principal operational data of SoftBank Corp.’s mobile communications service has
been changed from the first quarter of the fiscal year ending March 2016. Please refer to “< Changes in the Presentation Method
and Definitions of Principal Operational Data >” for details. Data for the fiscal year ended March 31, 2015 are also presented basedon the new definitions.
18

For definitions and calculation methods of subscribers, churn rate, and ARPU at SoftBank Corp., see page 23 “(Reference 2: Definitions andCalculation Methods of Principal Operational Data) (a) SoftBank Corp.”
19
The total number of new subscriptions and device upgrades. New subscriptions where customers switch between SoftBank and Y!mobile using MNP
are included in the number of device upgrades.
20
Includes subscribers for Fiber-optic Discount applied to Y!mobile brand mobile communications services
21
The number of eligible applications for the Smartphone & Internet Bundle Discount includes that of fiber-optic lines as long as the relevant discountis applied to the associated mobile communications services, even if its connection construction is not complete at the central office of NTT East or
NTT West.
22
A fiber-optic service using the wholesale fiber-optic connection of NTT East and NTT West. Includes the number of subscribers and ARPU of
SoftBank Air.
23
An ISP service offered as a package with NTT East and NTT West’s FLET’S Hikari Series fiber-optic connection
24
A service combining an ADSL connection service and an ISP service

20

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

< Changes in the Presentation Method and Definitions of Principal Operational Data >SoftBank Mobile Corp., the company that operates domestic telecommunications businesses, absorbed SoftBank BB Corp.,
SoftBank Telecom Corp., and Ymobile Corporation on April 1, 2015 and was renamed SoftBank Corp. on July 1, 2015.
In line with this, the presentation method and definitions of the principal operational data of SoftBank Corp.’s mobile
communications services were also changed from the first quarter of the fiscal year ending March 2016.
The main changes are as follows. The number of subscribers are categorized as “main subscribers,” which are the main
focus in terms of management strategy, with the remaining number of subscribers classified under “communication
modules” and “PHS.” In addition, some services have been removed from the scope of inclusion for subscriber numbers.
i. Presentation Method
Number of subscribers
Before the change: respective numbers of subscribers for the former SoftBank Mobile Corp. and former Ymobile
Corporation were presented
After the change: the number of subscribers at SoftBank Corp. is presented in the following categories
Category
Main subscribers

Smartphones,

Communication modules

Communication modules, Note 8Mimamori Phone, prepaid mobile phones, others

PHS

PHS

Note 6

Detailsfeature phones, tablets, mobile data communication devices, Note 7 others

Notes:
6. Smartphones to which the Smartphone Family Discount are applied are included under communication modules. The
Smartphone Family Discount is a promotion offering discounts to the family members of upgrading existing customers when
they use the old handset and make a new subscription.
7. Mobile data communication devices to which the Data Card 2-Year Special Discount are applied are included undercommunication modules. The Data Card 2-Year Special Discount is a price plan based on usage of traffic with a free basic flat
rate. It is provided to customers using a data card with a contract period of two years or more.
8. Communication modules that use PHS networks are included under PHS.

ARPU, number of units sold, and churn rate
Before the change: ARPU was calculated based on all the subscribers and revenues of the former SoftBank Mobile
Corp. excluding those of communication modules. The number of units sold and churn rates were
calculated based on all the subscribers of the former SoftBank Mobile Corp.
After the change: all the data are calculated based on the data for main subscribers at SoftBank Corp.
ii. Definitions
Scope of inclusion for number of subscribers
Before the change: including the contracts described below
After the change: excluding the contracts described below
The overlapping portion of mobile data communications devices Note 9 compliant with the spectrums of former SoftBank
Mobile Corp. and former Ymobile Corporation, etc. (number of subscribers as of March 31, 2015: 2,897,000)
Note:
9. Mobile data communication devices provided by the former SoftBank Mobile Corp. and former Ymobile Corporation that arecompatible with both companies’ spectrums. The devices were provided from February 2009 through a business alliance, prior
to the acquisition of the former eAccess Ltd. by SoftBank Corp. (currently SoftBank Group Corp.). Previously, the numbers ofsubscribers for these devices were included in the respective numbers of subscribers of both companies.

21

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015(b) Sprint
Fiscal Year Ending March2016

Fiscal Year Ended March 2015

Fiscal Year
Three-month Three-monthThree-month Three-month Three-month Three-month
Ended
Period Ended Period Ended
Period Ended Period Ended Period Ended Period Ended
June 30, 2014 Sept. 30, 2014 Dec. 31, 2014 Mar. 31, 2015 Mar. 31, 2015 June 30, 2015 Sept. 30, 2015
Q1

Q2

Q3

Q1

Q2

Thousands

54,55355,03755,92957,141

57,66858,578Sprint platform

Thousands

53,331

53,92154,88856,13756,812

57,868Postpaid

Thousands

29,737(incl.) Phone26, 27 Thousands

25,78529,46529,49529,70630,01630,56925,28425,07924,87824,86625,104

Thousands

14,715

14,75015,16015,706

15,34014,977

Thousands

8,879

9,706

10,233

10,725

11,456

12,322

Clearwire28

Thousands

1,222

1,116

1,041

1,004

856

710

Net additions25

Thousands

(220)

590

967

2,586

675

1,056

Postpaid

Thousands

(181)

(272)

30

211

(212)

310

553

(incl.) Phone26, 27 Thousands

(620)

(500)

(205)

(201)

(1,526)(12)

237

Thousands

(542)

35

410

546

449

(366)

(363)

Thousands

503

827

527

492

2,349

731

866

$ / month

69.34

69.02

69.01

69.19

69.91

70.64

Postpaid$ / month

62.07

60.58

58.90

56.94

55.48

54.02

Prepaid$ / month

27.38

27.19

27.12

27.50

27.81

27.54

Postpaid% / month

2.05

2.18

2.30

1.84

1.56

1.54

Prepaid% / month

4.44

3.76

3.94

3.84

5.08

5.07

Cumulative subscribers25

Sprint total

Prepaid27
Wholesale andaffiliate

Sprint platform

Prepaid27

Wholesale andaffiliate
Postpaid phone26
ABPU29Q4Full Year

1,249

ARPU29Churn rate29

25

Includes the number of communication module service subscribers
Smartphones and feature phones
27
During the second quarter, Sprint introduced a program to provide certain tenured prepaid subscribers with an extended payment period for their next
month of service charges beyond the expiration of their current monthly plan, while normally if customers on the monthly prepaid service plan do not
pay the next month’s charges by the due date, they will not be able to use the service. It is the extension of credit which defines the customers as
postpaid. Prepaid subscribers who have applied for this program are included in postpaid subscribers as “migrations” from prepaid. Such migrations
totaled 199,000 for the second quarter.
28
Subscribers acquired through the acquisition of assets from Clearwire Corporation29
For definitions and calculation methods of ABPU/ARPU and churn rate of the Sprint platform, see page 24 “(Reference 2: Definitions and Calculation
Methods of Principal Operational Data) (b) Sprint Platform.”
26

22

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(Reference 2: Definitions and Calculation Methods of Principal Operational Data)(a) SoftBank Corp.
i. Mobile Communications Service
・ Subscribers
The following categories serve as cover-all terms for the service contracts described.
Main subscribers: smartphones, Note 10 feature phones, tablets, mobile data communications devices, Note 11 others
Communication modules: communication modules, Note 12 Mimamori Phone, prepaid mobile phones, others
PHS: PHS
Notes:
10. Smartphones to which the Smartphone Family Discount are applied are included under communication modules.
11. Mobile data communication devices to which the Data Card 2-Year Special Discount are applied are included undercommunication modules.
12. Communication modules that use PHS networks are included under PHS.

Principal Operational Data for Main Subscribers
・ ARPU
ARPU: Average Revenue Per User per month
Total ARPU = (data-related revenue + basic monthly charge and voice-related revenues + device warrantee services +advertising revenue + content-related revenues, etc.) / number of active subscribers (rounded to the nearest ¥10)
Telecom ARPU = (data-related revenue (packet communication and flat-rate charges, basic monthly Internet connection chargesetc.) + basic monthly charge and voice-related revenues (basic monthly usage charges, voice call charges,
revenues from incoming calls, etc.)) / number of active subscribers (rounded to the nearest ¥10)
Service ARPU = (device warrantee services, advertising revenue, content-related revenues, etc.) / number of active subscribers(rounded to the nearest ¥10)
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)
Revenues from incoming calls: interconnection charges received from other operators for voice calls from their customers on
their network to SoftBank and Y!mobile phones as a charge for the services provided in the
SoftBank Corp. service area

・ Churn rate
Churn rate: average monthly churn rate (rounded to the nearest 0.01%)
Churn rate = number of churn / number of active subscribers for the relevant period.

The number of churn excludes thenumber of subscribers who switch between SoftBank and Y!mobile using MNP.
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period((subscribers at the beginning of the month + subscribers at the end of the month) / 2)ii. Broadband Service
・ Subscribers
SoftBank Hikari subscribers:
Number of users for which connection construction of a fiber-optic line at the central office of NTT East or NTT West is complete.
Includes the number of subscribers to SoftBank Air.
Yahoo! BB hikari with FLET’ S subscribers:
Number of users of Yahoo! BB hikari with FLET’ S for which connection construction of a fiber-optic line at the central office of
NTT East or NTT West is complete and who are provided with services

23

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

Yahoo! BB ADSL subscribers:
Number of users of Yahoo! BB ADSL for which connection construction of an ADSL line at the central office of NTT East or
NTT West is complete

・ ARPU
ARPU: Average Revenue Per User per month (rounded to the nearest ¥10)
ARPU = Revenue of each broadband service / the number of active subscribers
SoftBank Hikari ARPU =SoftBank Hikari revenue (basic monthly charge + provider charge + Hikari BB unit rental charge + White hikari Phone and BB
Phone voice call charge + optional service charges, etc.) / the number of active SoftBank Hikari subscribers* Calculation of SoftBank Hikari ARPU includes revenues and subscribers of SoftBank Air.
Yahoo! BB hikari with FLET’ S ARPU =Yahoo! BB hikari with FLET’ S revenue (provider charge + Hikari BB unit rental charge + BB Phone voice call charge +optional service charges, etc. (excluding usage charges for FLET’S hikari and FLET’S hikari LIGHT)) / the number of active
Yahoo! BB hikari with FLET’S subscribers
Yahoo! BB ADSL ARPU =Yahoo! BB ADSL revenue (basic monthly charge + provider charge + modem rental charge + BB Phone voice call charge +optional service charges, etc.) / the number of active Yahoo! BB ADSL subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period(subscribers at the beginning of the month + subscribers at the end of the month) / 2(b) Sprint Platform・ ABPU/ARPUABPU: Average Billings Per User per month (rounded to the nearest $.01)
ABPU = (service revenue + equipment billings) / number of active subscribers
Equipment billings: the sum of lease fees under the leasing program and installment billings under the installment billing
program
ARPU: Average Revenue Per User per month (rounded to the nearest $.01)
ARPU = service revenue / number of active subscribers
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period(subscribers at the beginning of the month + subscribers at the end of the month) / 2*ABPU/ARPU for postpaid phones are calculated by dividing the relevant telecom service revenue and equipment billings by
its number of active subscribers.

・ Churn rate
Churn rate: average monthly churn rate (rounded to the nearest 0.01%)
Churn rate = number of deactivations / number of active subscribers
Deactivations: the total number of subscribers that churned during the relevant period.

The number of deactivations excludes

the number of subscribers who switch between prepaid and postpaid.
Number of active subscribers: the total of the monthly numbers of active subscribers for the relevant period(subscribers at the beginning of the month + subscribers at the end of the month) / 2

24

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(Reference 3: Capital Expenditure, Depreciation and Amortization)(a) Capital Expenditure (Acceptance Basis)(Millions of yen)
Fiscal Year Ending March2016

Fiscal Year Ended March 2015
Three-month
Period Ended
June 30, 2014

Three-month
Period Ended
Sept. 30, 2014

Three-month
Period Ended
Dec. 31, 2014

Three-month
Period Ended
Mar. 31, 2015

Fiscal Year
Ended
Mar. 31, 2015

Three-month
Period Ended
June 30, 2015

Three-month
Period Ended
Sept. 30, 2015

Q1

Q2

Q3

Q4

Full Year

Q1

Q2

Domestic
Telecommunications segment

130,281

133,170

140,713

177,587

581,751

72,44088,241

Sprint segment

148,793

162,025

213,765

175,266

699,849

160,367

165,421

Yahoo Japan
segment

8,532

5,031

9,418

7,073

30,054

7,196

16,921

Distribution
segment

2,559

2,709

2,958

5,969

14,195

1,896

2,086

Others

5,574

4,596

9,700

7,714

27,584

1,345

3,144

295,739

307,531376,554373,609

1,353,433

243,244

275,813

Consolidated
total(b) Depreciation and Amortization(Millions of yen)
Fiscal Year Ending March2016

Fiscal Year Ended March 2015
Three-month
Period Ended
June 30, 2014

Three-month
Period Ended
Sept. 30, 2014

Three-month
Period Ended
Dec. 31, 2014

Three-month
Period Ended
Mar. 31, 2015

Fiscal Year
Ended
Mar. 31, 2015

Three-month
Period Ended
June 30, 2015

Three-month
Period Ended
Sept. 30, 2015

Full Year

Q1

Q2

Q1

Q2

Q3

Q4

Domestic
Telecommunications segment

105,164

106,843

109,863

130,428452,298

107,521110,628

Sprint segment

128,621

132,762

145,355

172,414579,152

190,278

207,901

Yahoo Japan
segment

3,653

4,271

4,515

5,925

18,364

5,646

7,287

Distribution
segment

2,446

2,141

2,220

3,441

10,248

2,406

3,385

Others

8,325

8,243

8,770

9,845

35,183

10,347

9,024

248,209254,260

270,723

322,053

1,095,245

316,198338,225

Consolidated
total

Notes:
13. The results for the fiscal year ended March 2015 are presented in accordance with the reportable segments for the first quarter of the
fiscal year ending March 2016.
14. The amount of capital expenditure and depreciation and amortization excludes those of discontinued operations.

25

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015(2) Qualitative Information Regarding Consolidated Financial Positiona. Assets, Liabilities and Equity
Assets, liabilities and equity at the end of the second quarter were as follows:(Millions of yen)

As of March 31, 2015

As of September 30, 2015

ChangeChange %Total assets

21,034,169

21,426,330

392,161

1.9%

Total liabilities

17,180,992

17,489,680

308,688

1.8%

Total equity

3,853,177

3,936,650

83,473

2.2%¥119.96¥(0.21)(0.2%)

Reference: Exchange rate at the end of the period¥120.17

USD/ JPY(a) Current Assets(Millions of yen)

As of March 31, 2015
Cash and cash equivalents

As of September 30, 2015

Change3,258,653

2,208,269(1,050,384)

481,891

236,620(245,271)

1,895,648

1,838,234(57,414)433,013424,015(8,998)Other financial assets

197,068

211,557

14,489Inventories

351,152

343,943(7,209)Other current assets

255,399

1,126,957

871,558

Total current assets

5,957,920

5,728,960(228,960)(incl.) Sprint

Trade and other receivables(incl.) Sprint

Current assets decreased by ¥228,960 million (3.8%) from the previous fiscal year-end, to ¥5,728,960 million.
The primary components of the change were as follows:i. Cash and cash equivalents decreased by ¥1,050,384 million from the previous fiscal year-end. For the details
on changes in cash and cash equivalents, please refer to page 31 “b. Cash Flows.”
ii. Trade and other receivables decreased by ¥57,414 million from the previous fiscal year-end. The decrease
mainly reflected a decrease in receivables at Brightstar. Another factor for the decrease was the transition of
GungHo from a subsidiary to an equity method associate.
iii. Other current assets increased by ¥871,558 million from the previous fiscal year-end. This mainly reflected
the recording of ¥844,748 million in withholding income tax to be paid, related to dividends within the groupcompanies.

Of this, ¥611,199 million and ¥233,549 million is expected to be refunded by the end of

December 2015 and the end of July 2016, respectively.

26

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015(b) Non-current Assets(Millions of yen)

As of March 31, 2015
Property, plant and equipment

As of September 30, 2015

Change4,317,448

4,435,029

117,5812,141,120

2,284,005

142,885

1,663,363

1,569,721(93,642)353,867

353,249(618)

6,903,582

6,852,472(51,110)

5,993,034

5,899,313(93,721)

4,320,296

4,317,383(2,913)

4,320,296

4,317,383(2,913)786,834

806,090

19,256772,433

770,152(2,281)

582,223532,208(50,015)

496,594

416,765(79,829)

Software757,866

776,679

18,813

Game titles

109,21174,751(34,460)

Others347,152

345,361(1,791)

1,102,456

1,567,006

464,550

Other financial assets

662,463

917,032

254,569

Deferred tax assets

235,488

163,762(71,726)

Other non-current assets

191,449

192,348899

Total non-current assets

15,076,249

15,697,370

621,121(incl.) Sprint

Goodwill(incl.) Sprint

Intangible assets(incl.) Sprint
FCC licenses30(incl.) Sprint

Trademarks(incl.) Sprint

Customer relationships(incl.) Sprint

Investments accounted for using
the equity method

Non-current assets increased by ¥621,121 million (4.1%) from the previous fiscal year-end to ¥15,697,370 million.
The primary components of the change were as follows:i. Investments accounted for using the equity method increased by ¥464,550 million from the previous fiscal
year-end. This primarily reflected an increase in the carrying amount of Alibaba due to the recording ofincome on equity method investments related to Alibaba as well as the new recording of GungHo as aninvestment accounted for using the equity method. There was also an impact from the acquisition of theshares of Social Finance, Inc., which provides student loan refinancing services in the U.S.
ii. Other financial assets increased by ¥254,569 million from the previous fiscal year-end. This mainly reflected
the acquisition of preferred units in Forward Ventures, LLC, which operates the e-commerce website Coupang
in South Korea.
30

There was also an impact from an increase in the fair value of financial assets at FVTPL,

Licenses issued by the U.S. Federal Communications Commission for use of specified spectrum

27SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

such as preferred shares of ANI Technologies Pvt. Ltd. and Jasper Infotech Private Limited.
iii. Property, plant and equipment increased by ¥117,581 million from the previous fiscal year-end.

Thisprimarily reflected an increase in capitalized leased devices at Sprint due to the increased mobile device leases
under the leasing program, despite continued regular depreciation of network equipment at SoftBank Corp. andSprint.
iv. Goodwill decreased by ¥93,642 million from the previous fiscal year-end.

This was mainly due to thetransition of GungHo from a subsidiary to an equity method associate, which was partially offset by thetransition of ASKUL Corporation from an equity method associate to a subsidiary.

(c) Current Liabilities(Millions of yen)
As of March 31, 2015
Interest-bearing debt

As of September 30, 2015

Change1,817,415

1,660,269(157,146)

216,247

215,277(970)

Short-term borrowings

413,846

385,503(28,343)

Current portion of
long-term borrowings

525,898

558,906

33,008Current portion of
corporate bonds

183,557

258,208

74,651

113,491

113,288(203)

Current portion oflease obligations

411,453

373,624(37,829)

Current portion ofpreferred securities

200,000-(200,000)

Others82,661

84,0281,367

1,863,480

1,626,057(237,423)

741,549

570,548(171,001)

Other financial liabilities

12,917

7,881(5,036)

Income taxes payables

184,175

109,549(74,626)

Provisions

54,99850,163(4,835)

Other current liabilities

739,501

941,210201,709

Total current liabilities

4,672,486

4,395,129(277,357)(incl.) Sprint(incl.) Sprint

Trade and other payables(incl.) Sprint

Current liabilities declined by ¥277,357 million (5.9%) from the previous fiscal year-end to ¥4,395,129 million.
The primary components of the change were as follows:i. Trade and other payables decreased by ¥237,423 million from the previous fiscal year-end.

28

This mainly

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015reflected a decrease in accounts payable-other related to telecommunications equipment at Sprint after making
payments.
ii. Interest-bearing debt decreased by ¥157,146 million from the previous fiscal year-end. This mainly reflecteda decline of ¥200,000 million in the current portion of preferred securities from the previous fiscal year-end
due to the Company’s subsidiary SFJ Capital Limited’s redemption in May 2015 of the full amount of preferred(restricted voting) securities issued in September 2011.
iii. Other current liabilities increased by ¥201,709 million from the previous fiscal year-end.

This mainlyreflected the recording of ¥293,508 million for an expected payment of withholding income tax related todividend payments within the group companies.

(d) Non-current Liabilities(Millions of yen)

As of March 31, 2015
Interest-bearing debt

As of September 30, 2015

Change9,789,829

10,231,618

441,7893,886,597

3,885,851(746)

Long-term borrowings

2,116,498

2,005,628(110,870)

Corporate bonds

6,825,868

7,339,733

513,865

3,813,511

3,788,947(24,564)

Lease obligations

744,911803,044

58,133

Others102,552

83,213(19,339)

Other financial liabilities

27,142

49,716

22,574

Defined benefit liabilities

128,282

131,213

2,931

Provisions

155,705

131,539(24,166)

2,052,615

2,192,847

140,232

1,748,273

1,747,422(851)

Other non-current liabilities

354,933

357,618

2,685

Total non-current liabilities

12,508,506

13,094,551

586,045(incl.) Sprint(incl.) Sprint

Deferred tax liabilities(incl.) Sprint

Non-current liabilities increased by ¥586,045 million (4.7%) from the previous fiscal year-end to ¥13,094,551
million.

The primary components of the change were as follows:i. Interest-bearing debt increased by ¥441,789 million from the previous fiscal year-end. This was mainly due
to SoftBank Group Corp. issuing ¥552,990 million in foreign currency denominated senior notes and ¥100,000
million in unsecured straight corporate bonds, which was offset by a transfer of ¥100,000 million of its
unsecured straight corporate bonds into current liabilities as the redemption date came to be within one year.
ii. Deferred tax liabilities increased by ¥140,232 million from the previous fiscal year-end. This was mainly due
to a tax effect being recognized for the difference between the carrying amount of Alibaba on a consolidated

29

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

basis, which increased due to the recording of the relevant income on equity method investments, and its
carrying amount on a tax basis.

(e) Equity(Millions of yen)

As of March 31, 2015

As of September 30, 2015

ChangeEquity attributable to owners of
the parent

2,846,306

2,995,148

148,842

Non-controlling interests

1,006,871

941,502(65,369)

Total equity

3,853,177

3,936,650

83,473Equity totaled ¥3,936,650 million, for a ¥83,473 million (2.2%) increase from the previous fiscal year-end. Of
this amount, equity attributable to owners of the parent increased by ¥148,842 million (5.2%), while non-controllinginterests decreased by ¥65,369 million (6.5%). The ratio of equity attributable to owners of the parent to total
assets increased by 0.5 of a percentage point from the previous fiscal year-end to 14.0%.

(Equity Attributable to Owners of the Parent)(Millions of yen)

As of March 31, 2015

As of September 30, 2015

ChangeCommon stock

238,772

238,772-

Capital surplus

374,845

268,203(106,642)

Retained earnings

1,740,686

2,142,680

401,994

Treasury stock(48,383)(166,301)(117,918)

Accumulated othercomprehensive income

540,386

511,794(28,592)

29,023

14,499Available-for-sale financial
assets

14,524

Cash flow hedges(7,345)(22,580)(15,235)

Exchange differences ontranslating foreign operations

533,207505,351(27,856)

2,846,306

2,995,148

148,842

Total equity attributable toowners of the parent

Equity attributable to owners of the parent increased by ¥148,842 million (5.2%) from the previous fiscal year-end
to ¥2,995,148 million.

The primary components of the change were as follows.

i. Retained earnings increased by ¥401,994 million from the previous fiscal year-end. This was mainly due torecording net income attributable to owners of the parent of ¥426,683 million.

30

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

ii. Treasury stock increased by ¥117,918 million from the previous fiscal year-end. This was mainly due to an
acquisition of 15,795,000 shares of treasury stock amounting to ¥120,000 million in August 2015, with anaim of executing a flexible capital policy in response to changes in the management environment.
iii. Capital surplus declined by ¥106,642 million from the previous fiscal year-end. This mainly reflected the
deduction from capital surplus of ¥120,847 million as changes in interests in subsidiaries due to the purchaseof an additional 24.1% of the shares of subsidiary Supercell from its existing shareholders (the Company’s
share of voting rights after the additional purchase: 77.8%).

(Non-controlling Interests)
Non-controlling interests totaled ¥941,502 million, for a ¥65,369 million (6.5%) decrease from the previous fiscal
year-end. This was mainly due to the transition of GungHo from a subsidiary to an equity method associate, while
ASKUL Corporation was changed from an equity method associate to a subsidiary.

b. Cash Flows
Cash flows for the period were as follows.
Cash and cash equivalents at the end of the second quarter totaled ¥2,208,269 million, for a ¥1,050,384 million
decrease from the previous fiscal year-end.
(Millions of yen)Six-month Period Ended
September 30, 2014

Six-month Period Ended
September 30, 2015

Cash flows from operating activities

682,348

176,584(505,764)

Cash flows from investing activities(736,984)(1,128,941)(391,957)

Cash flows from financing activities

510,476(87,220)(597,696)

49,331(610,140)(659,471)

Change(Reference)
Cash flows from operating activities capital expenditure (Note 15)Note:
15. Outlays for purchase of property, plant and equipment and intangible assets.

(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥176,584 million (compared with ¥682,348 million provided in thesame period of the previous fiscal year). The primary components of cash flows were as follows:i. Net income totaled ¥508,625 million.
ii. The main items added to net income were depreciation and amortization of ¥659,151 million, income taxes of¥306,452 million, and finance cost of ¥215,669 million.
iii. The main items subtracted from net income were income on equity method investments of ¥264,586 million, othernon-operating income and loss of ¥69,435 million, and gain from remeasurement relating to business combinationof ¥59,441 million.

31

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

iv. Interest paid was ¥229,396 million.
v. Income taxes paid was ¥740,529 million.

This includes a payment of ¥551,241 million for withholding income

tax related to dividends within the group companies, of which ¥317,692 million and ¥233,549 million are
expected to be refunded by the end of December 2015 and the end of July 2016, respectively.

(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥1,128,941 million (compared with ¥736,984 million used in the same
period of the previous fiscal year). The primary components of cash flows were as follows:i. Outlays for purchase of property, plant and equipment and intangible assets amounted to ¥786,724 million.
This was mainly due to an acquisition of telecommunications equipment at Sprint and SoftBank Corp.
ii. Payments for acquisition of investments amounted to ¥312,133 million.

This was mainly attributable toinvestments in Forward Ventures, LLC, Yamada Denki Co., Ltd., a major Japanese electric retailer, and Social
Finance, Inc.
iii. A decrease of ¥63,070 million from loss of control over subsidiaries.

This represents the amount of cash andcash equivalents held by GungHo at the time of loss of control.
iv. Payments for acquisition and proceeds from sales/redemption of marketable securities for short-term trading
amounted to ¥65,199 million and ¥119,947 million, respectively.

This was mainly attributable to acquisitionand sale of marketable securities for short-term trading, primarily by Sprint and Brightstar.

(c) Cash Flows from Financing Activities
Net cash used in financing activities was ¥87,220 million (compared with ¥510,476 million provided in the same
period of the previous fiscal year). The primary components of cash flows were as follows:(Items Increasing Cash Flows)
Proceeds from long-term interest-bearing debt amounted to ¥1,152,321 million.

The components were as

follows:
・ Proceeds from sale and leaseback of newly acquired equipment of ¥272,821 million.

This was mainly

because sale and leaseback was conducted when acquiring telecommunications equipment by finance lease at
SoftBank Corp.
・ Proceeds from long-term borrowings of ¥226,510 million. This was mainly due to borrowings made throughsecuritization of installment sales receivables at SoftBank Corp. and borrowings made at Sprint through ECA
finance.31
・ Proceeds from issuance of corporate bonds of ¥652,990 million.

This consisted of SoftBank Group Corp.’sissuance of foreign currency denominated senior notes and unsecured straight corporate bonds.

(Items Decreasing Cash Flows)i. Repayment of long-term interest-bearing debt was ¥824,952 million.
follows:
31

Funding based on the credit provided by export credit agencies (ECA)32

The primary components were asSoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

・ Redemption of preferred investment securities of ¥200,000 million.

This was due to the Company’s

subsidiary SFJ Capital Limited’s redemption in May 2015 the full amount of preferred (restricted voting)securities issued in September 2011.
・ Repayment of long-term borrowings of ¥315,957 million. This was mainly due to SoftBank Corp. repaying
borrowings made through securitization of installment sales receivables and SoftBank Group Corp. repaying
the borrowings.
・ Repayment of lease obligations of ¥259,242 million.
ii. Payment for purchase of subsidiaries’ equity from non-controlling interests was ¥239,706 million. This was
mainly due to the additional purchase of shares of Supercell and Sprint.
iii. Payment for purchase of treasury stock was ¥120,031 million.

(3) Qualitative Information Regarding Forecasts on Consolidated Results of Operations
Currently it is difficult to provide forecasts on the results in figures due to a large number of uncertain factors affecting
the earnings. The Company will announce its forecasts on the consolidated results of operations when it becomes
possible to make a rational projection.

33

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Six-month Period Ended September 30, 2015
(Specified subsidiaries (three companies) excluded from the scope of consolidation)
SoftBank Mobile Corp., SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation conducted anabsorption type merger with SoftBank Mobile Corp. being the surviving company, effective on April 1, 2015. As aresult of the merger, SoftBank BB Corp., SoftBank Telecom Corp., and Ymobile Corporation, which were our
specified subsidiaries, were dissolved and are excluded from the scope of consolidation. SoftBank Mobile Corp.
changed its company name to SoftBank Corp. on July 1, 2015.

(2) Changes in Accounting Estimates(Impairment loss on financial assets)
Certain shares and other were impaired as the investment amounts were not expected to be collected for thethree-month period ended September 30, 2015. The details are described in “Note 13. Other non-operating income(loss) Note 1” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim
Consolidated Financial Statements.”

34

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

3. Condensed Interim Consolidated Financial Statements(1) Condensed Interim Consolidated Statements of Financial Position(Millions of yen)

As ofMarch 31, 2015

As of
September 30, 2015

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets

3,258,653
1,895,648
197,068
351,152
255,399
5,957,920

2,208,269
1,838,234
211,557
343,943
1,126,957
5,728,960

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using the equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

4,317,448
1,663,363
6,903,582
1,102,456
662,463
235,488
191,449
15,076,249
21,034,169

4,435,029
1,569,721
6,852,472
1,567,006
917,032
163,762
192,348
15,697,370
21,426,330

35

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(Millions of yen)

As ofMarch 31, 2015
Liabilities and equity
Current liabilities
Interest-bearing debt
Trade and other payables
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Total current liabilities

As of
September 30, 2015

1,817,415
1,863,480
12,917
184,175
54,998739,501
4,672,486

1,660,269
1,626,057
7,881
109,549
50,163
941,210
4,395,129

Total liabilities

9,789,829
27,142
128,282
155,705
2,052,615
354,933
12,508,506
17,180,992

10,231,618
49,716131,213
131,539
2,192,847
357,618
13,094,551
17,489,680

EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

238,772
374,845
1,740,686(48,383)
540,386
2,846,306
1,006,871
3,853,177
21,034,169

238,772
268,203
2,142,680(166,301)
511,7942,995,148
941,5023,936,650
21,426,330

Non-current liabilities
Interest-bearing debt
Other financial liabilities
Defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

36SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income
For the six-month period ended September 30
Condensed Interim Consolidated Statements of Income(Millions of yen)

Continuing operations
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain from remeasurement relating tobusiness combination
Other operating loss
Operating income
Finance cost
Income (loss) on equity method investments
Dilution gain from changes in equity interest
Other non-operating income (loss)
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income (loss) from discontinued operations
Net income
Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share attributable to owners of the parent
Basic earnings per share (yen)Continuing operations
Discontinued operations
Total basic earnings per share
Diluted earnings per share (yen)Continuing operations
Discontinued operations
Total diluted earnings per share

Six-month period ended
September 30, 2014*

Six-month period ended
September 30, 2015

4,021,865(2,400,891)
1,620,974

4,423,802(2,606,016)
1,817,786(1,046,302)(1,156,161)-

59,441(9,726)564,946(171,246)(19,296)599,275(9,503)964,176(372,733)
591,443(35,300)
685,766(215,668)
264,586
14,631
69,301
818,616(303,023)
515,593

16,998608,441(6,968)508,625

560,71047,731
608,441

426,683
81,942508,625465.905.84
471.74368.23(8.67)
359.56465.42
5.83
471.25358.47(8.66)
349.81

Note:
Continuing operations and discontinued operations are revised and presented separately.
14. Discontinued operations.”

37

The details are described in “NoteSoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)Six-month period ended
September 30, 2014
Net income
Other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income (loss), net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

38

Six-month period ended
September 30, 2015

608,441

508,625

(246)

(6)

(246)

(6)

(1,108)4,257

14,428(15,109)

139,441(25,467)

1,396

(748)

143,986(26,896)

143,740
752,181(26,902)481,723

681,446
70,735752,181

398,085
83,638
481,723

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

For the three-month period ended September 30
Condensed Interim Consolidated Statements of Income(Millions of yen)Three-month period ended Three-month period ended
September 30, 2014*
September 30, 2015
Continuing operations
Net sales
Cost of sales
Gross profit

2,073,601(1,273,068)
800,533

2,284,744(1,367,289)
917,455(544,638)(598,688)

Selling, general and administrative expenses
Gain from remeasurement relating tobusiness combination
Other operating loss
Operating income
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Other non-operating loss
Income before income tax
Income taxes
Net income from continuing operations-

59,441(10,301)
245,594(86,261)
44,129597,739(18,184)
783,017(291,905)
491,112(35,994)342,214(110,157)
183,984
14,539(10,637)
419,943(161,335)
258,608

Discontinued operations
Net income from discontinued operations
Net income

6,021
497,133

258,608

483,136
13,997497,133

213,301
45,307
258,608404.352.09
406.44180.13180.13402.66
2.09
404.75173.34173.34

Net income attributable to
Owners of the parent
Non-controlling interests

Earnings per share attributable to owners of the parent
Basic earnings per share (yen)Continuing operations
Discontinued operations
Total basic earnings per share
Diluted earnings per share (yen)Continuing operations
Discontinued operations
Total diluted earnings per share

Note:
Continuing operations and discontinued operations are revised and presented separately.
14. Discontinued operations.”

39

The details are described in “NoteSoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
September 30, 2014

Three-month period ended
September 30, 2015

497,133

258,608

(2)

-

(2)

-

983
469

(10,285)(14,436)

178,952(98,494)

6,757(5,508)187,161(128,723)

187,159684,292(128,723)
129,885

637,668
46,624684,292

95,247
34,638129,885

Net income
Other comprehensive income (loss), net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
Total items that will not be reclassified to profit
or loss
Items that may be reclassified subsequently to
profit or loss
Available-for-sale financial assets
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income (loss), net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

40SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(3) Condensed Interim Consolidated Statements of Changes in Equity
For the six-month period ended September 30, 2014
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2014
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive
incomeTransactions with owners
and other transactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposal oftreasury stock
Changes from businesscombination
Changes in interests in
subsidiaries
Share-based paymenttransactions
Other
Total transactions withowners and othertransactions
As of September 30, 2014

Commonstock
238,772

Capitalsurplus405,045

Retainedearnings
1,168,266

Treasurystock(51,492)--

560,710---

Accumulated
othercomprehensive
incomeNoncontrollinginterests Total equity
899,941 2,830,382

169,850

Total
1,930,441--

560,71047,731

608,441--

120,736

120,736

23,004

143,740-

560,710-

120,736

681,446

70,735752,181--(23,769)--(23,769)(16,157)(39,926)

-

-

(246)

-

246

-

-

-

-

-

(693)

1,849

-

1,156

-

1,156

-

-

-

-

-

-

227

227

-

(30,984)---(30,984)

8,801(22,183)

-

(13)

-

-

-

(13)

4,650

4,637

-

-

-

-

-

-

(1,409)(1,409)-(30,997)(24,708)

1,849

246

(53,610)(3,888)(57,498)

238,772

374,048

1,704,268(49,643)

290,832

2,558,277

966,7883,525,065

41

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

For the six-month period ended September 30, 2015
(Millions of yen)
Equity attributable to owners of the parent

As of April 1, 2015
Comprehensive income
Net income
Other comprehensive
loss
Total comprehensive
incomeTransactions withowners and othertransactions
Cash dividends
Transfer of accumulated
other comprehensive
income to retained
earnings
Purchase and disposalof treasury stock
Changes from businesscombination
Changes from loss ofcontrolChanges in interestsin subsidiaries
Changes in associates’interests in theirsubsidiaries
Share-based paymenttransactions
Other
Total transactions
with owners andother transactions
As of September 30, 2015

Accumulated
othercomprehensive
income540,386

Total
2,846,306

Noncontrollinginterests
1,006,871--

426,683

81,942508,625--(28,598)(28,598)

1,696(26,902)-426,683-(28,598)

398,085

83,638

481,723--(23,784)--(23,784)(29,165)(52,949)

-

-

(6)

-

6

-

-

-

-

-

(899)

-

(118,817)-(118,817)

-

-

-

-

-

-

54,16354,163

-

-

-

-

-

-

(96,060)(96,060)-(120,090)---(120,090)(84,192)(204,282)-

13,640---13,640-13,640-(3,214)---(3,214)

7,937

4,723

-

3,022

-

-

-

3,022

(1,690)1,332-(106,642)

6(249,243)(149,007)(398,250)

238,772

268,203511,7942,995,148

941,5023,936,650

Commonstock
238,772

Capitalsurplus374,845

Retainedearnings
1,740,686

Treasurystock(48,383)--

426,683---(117,918)(24,689) (117,918)
2,142,680(166,301)

42

Total equity
3,853,177

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(4) Condensed Interim Consolidated Statements of Cash Flows(Millions of yen)Six-month period ended
September 30, 2014

Six-month period ended
September 30, 2015

608,441
516,183

508,625
659,151-(59,441)

171,249
19,296(599,275)
9,607
387,340
28,68349,367

215,669(264,586)(14,631)(69,435)
306,452
131,429(8,144)

Other(82,044)(263,324)

Subtotal

1,108,847

1,141,765

2,920(184,533)(244,886)
682,348

4,744(229,396)(740,529)
176,584(633,017)(786,724)(24,558)
10,673(312,133)
16,442(7,801)

28,849-(63,070)(171,010)(65,199)

167,599

119,947(78,870)(736,984)(67,053)(1,128,941)(65,687)(31,295)

1,063,791(410,914)

1,152,321(824,952)(43,496)(239,706)(21)(120,031)(23,767)(16,087)
6,657
510,476(23,764)(29,265)
29,472(87,220)

30,282(10,807)486,122
1,963,490
2,449,612(1,050,384)
3,258,653
2,208,269

Cash flows from operating activities
Net income
Depreciation and amortization
Gain from remeasurement relating to businesscombination
Finance cost
Loss (income) on equity method investments
Dilution gain from changes in equity interest
Other non-operating loss (income)
Income taxes
Decrease in trade and other receivables
Increase (decrease) in trade and other payables

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment, andintangible assets
Payments for acquisition of investments
Proceeds from sales/redemption of investments(Decrease) increase from acquisition of control oversubsidiaries
Decrease from loss of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketablesecurities for short-term trading
Other
Net cash used in investing activities
Cash flows from financing activities
Decrease in short-term interest-bearing debt, net
Proceeds from long-term interest-bearing debt
Repayment of long-term interest-bearing debt
Payments for purchase of subsidiaries’ equity from
non-controlling interests
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

43SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015(5) Significant Doubt about Going-concern Assumption
For the six-month period ended September 30, 2015
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Definition of company name and abbreviation used in the notes
Company names and abbreviations used in the notes, except as otherwise stated or interpreted differently in thecontext, are as follows:

Company name / Abbreviation

Definition“SoftBank Group Corp.”*

SoftBank Group Corp. (stand-alone basis)

The “Company”

SoftBank Group Corp. and its subsidiaries*Each of the following abbreviations indicates the respective company, and its subsidiaries, if any.
“Sprint”

Sprint Corporation“Brightstar”

Brightstar Corp.

“Supercell”

Supercell Oy“Alibaba”

Alibaba Group Holding Limited“GungHo”

GungHo Online Entertainment, Inc.

Note:
SoftBank Corp., a pure holding company, changed its company name to SoftBank Group Corp. effective on
July 1, 2015. The company name “SoftBank Group Corp.” is used consistently in the notes including theinformation with regard to the transactions occurred before the change.

44SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

2. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s board of directors in orderto make decisions about the allocation of the resources and assess its performance.
The Company had four segments, the Mobile Communications segment, the Sprint segment, the Fixed-line
Telecommunications segment, and the Internet segment for the fiscal year ended March 31, 2015. Along withthe transformation into “SoftBank 2.0” from a strong Japanese business with global assets to a global businessthat will strive to create sustainable growth over the long term, the Company revised its segments. The
Domestic telecommunications segment, the Sprint segment, the Yahoo Japan segment, and the Distribution
segment are the four reportable segments from the three-month period ended June 30, 2015.
The Domestic Telecommunications segment provides, mainly through SoftBank Corp. (formerly SoftBank
Mobile Corp.), mobile communications services, sale of mobile devices, telecommunication services such as
fixed-line telephone and data communications services for corporate customers, and broadband services for retailcustomers in Japan.
The Sprint segment provides, through Sprint, mobile communications services, sale and lease of mobile devices,and sale of mobile device accessories, and fixed-line telecommunications services in the U.S.
The Yahoo Japan segment provides, mainly through Yahoo Japan Corporation, Internet-based advertisingbusiness, e-commerce business, and membership services.
The Distribution segment provides, mainly through Brightstar, distribution of mobile devices overseas, andthrough SoftBank Commerce & Service Corp., sale of mobile device accessories, PC software and peripherals inJapan.
The reportable segments for the six-month period ended September 30, 2014 and the three-month period ended
September 30, 2014 are presented based on the revised reportable segments.

(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.”
The Company had defined the income of reportable segments as the amount after deducting “Cost of sales” and“Selling, general and administrative expenses” from “net sales” until the fiscal year ended March 31, 2015. In
connection with the revision of the segments, the Company defined its income of reportable segments as“Operating income” from the three-month period ended June 30, 2015.
Income of reportable segments for the six-month period ended September 30, 2014 and the three-month period
ended September 30, 2014 is also defined as “Operating income.”
Intersegment transaction prices are determined under the same general business conditions as applied for externalcustomers.
The following is the information about the Company’s net sales and income by reportable segment. The
Company also discloses EBITDA (segment income (operating income) + depreciation and amortization – gainfrom remeasurement relating to business combination – other operating income and loss) by each reportablesegment.

45

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

For the six-month period ended September 30, 2014
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

1,415,969

1,774,301

198,675

478,757

3,867,702

154,163-

4,021,865

8,381

9,135

3,338

20,71041,564

13,932(55,496)-

1,424,350

1,783,436

202,013499,467

3,909,266

168,095(55,496)

4,021,865

613,058

338,110

100,704

8,407

1,060,279

35,052(18,190)

1,077,141(212,007)(261,383)(7,924)(4,587)(485,901)(15,836)(732)(502,469)-(12,131)-2,380(9,751)

25-(9,726)401,051

64,59692,7806,200

564,627

19,241(18,922)564,946

Reconciliations2

Consolidated

Net sales
Customers
Intersegment
Total
EBITDA
Depreciation andamortization
Other operating income(loss)
Segment income(Operating income)Finance cost

(171,246)

Equity in loss of associates(19,296)

Dilution gain from changes
in equity interests

599,275

Other non-operating loss

(9,503)

Income before income tax

964,176

For the six-month period ended September 30, 2015
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

Customers

1,489,829

1,867,528

244,710628,587

4,230,654

193,148-

Intersegment

14,13578,6504,058

38,141

134,984

12,639(147,623)-

1,503,964

1,946,178

248,768

666,728

4,365,638

205,787(147,623)

4,423,802

642,833

508,778

104,387

9,928

1,265,926

70,960(20,838)

1,316,048(218,149)(398,179)(12,933)(5,791)(635,052)(18,507)(864)(654,423)--

59,441-59,441--59,441Other operating loss-

(29,214)--(29,214)(6,086)-(35,300)

Segment income(Operating income)

424,684

81,385150,895

4,137

661,101

46,367(21,702)685,766

Reconciliations2

Consolidated

Net sales

Total
EBITDA
Depreciation andamortization
Gain from remeasurement
relating to businesscombination

4,423,802

Finance cost
Equity in income ofassociates
Dilution gain from changes
in equity interest(215,668)

Other non-operating income

69,301

264,586
14,631

Income before income tax

818,616

Notes:
1. Information on the business segments which are not included in the reportable segments is classified in “Other.” “Other”
includes mainly online game-related business by Supercell.
2. “Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses unallocated to eachreportable segment. Expenses arising mainly from SoftBank Group Corp. and SB Group US, Inc. which manage and supervise
investment activities in the Internet, communication, and media fields overseas are included in the corporate general expenses.
3. Discontinued operations are not included. The details are described in “Note 14. Discontinued operations.”46

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

For the three-month period ended September 30, 2014
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

Reconciliations2

Consolidated

Net sales
Customers

749,253878,258

101,674

263,753

1,992,938

80,663-

2,073,061

Intersegment

3,841

7,441

1,560

10,58823,4307,363(30,793)-

Total

753,094

885,699

103,234

274,341

2,016,368

88,026(30,793)2,073,601

EBITDA
Depreciation andamortization
Other operating income(loss)
Segment income(Operating income)

303,128

147,784

49,833

5,305

506,050

16,337(12,232)

510,155(106,843)(132,762)(4,271)(2,141)(246,017)(7,914)(329)(254,260)-(10,919)-593(10,326)

25-(10,301)

196,285

4,103

45,562

3,757

249,707

8,448(12,561)

245,594

Finance cost
Equity in income ofassociates
Dilution gain from changes
in equity interests(86,261)
44,129597,739(18,184)

Other non-operating loss
Income before income tax

783,017

For the three-month period ended September 30, 2015
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

777,132

929,715

136,179

344,4072,187,433

97,311-

Reconciliations2

Consolidated

Net sales
Customers
Intersegment

2,284,744

6,265

42,4692,134

18,57869,446

6,641(76,087)-

Total

783,397

972,184

138,313362,985

2,256,879

103,952(76,087)2,284,744

EBITDA
Depreciation andamortization
Gain from remeasurement
relating to businesscombination

320,893249,606

49,8897,111

627,499

38,960(9,467)

656,992(110,628)(207,901)(7,287)(3,385)(329,201)(8,629)(395)(338,225)--

59,441-59,441--59,441Other operating loss-

(29,908)--(29,908)(6,086)-(35,994)

Segment income(Operating income)

210,265

11,797102,043

3,726

327,831

24,245(9,862)342,214

Finance cost
Equity in income ofassociates
Dilution gain from changes
in equity interests(110,157)

Other non-operating loss

(10,637)

183,984
14,539

Income before income tax

419,943

Notes:
1. Information on the business segments which are not included in the reportable segments is classified in “Other.” “Other”
includes mainly online game-related business by Supercell.
2. “Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses unallocated to eachreportable segment. Expenses arising mainly from SoftBank Group Corp. and SB Group US, Inc. which manage and supervise
investment activities in the Internet, communication, and media fields overseas are included in the corporate general expenses.
3. Discontinued operations are not included. The details are described in “Note 14. Discontinued operations.”47

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

3. Business combinations
For the six-month period ended September 30, 2015
(1) Overview of consolidation
ASKUL Corporation, the Company’s associate which primarily conducts mail order services for office supplies,
became the Company’s subsidiary on August 27, 2015 as a result of ASKUL Corporation’s acquisition of its
own treasury stock as resolved by its Board of Directors on May 19, 2015. As a result of ASKULCorporation’s acquisition of its own treasury stock, the ownership ratio of ASKUL Corporation’s voting rights
held by the Company rose from 41.7% (as of May 20, 2015) to 44.4% (as of August 27, 2015). The Company
did not yet hold the majority of the voting rights of ASKUL Corporation, however, considering the dispersion of
voting rights in ASKUL Corporation and the voting patterns exercised in ASKUL Corporation’s pastshareholders meetings, etc., the Company judged that it has substantial control of ASKUL Corporation and hasconverted it to a consolidated subsidiary.

(2) Summary of acquiree
NameBusiness description

ASKUL Corporation
Mail-order business for stationery, other products and services(3) Acquisition dateAugust 27, 2015

(4) Consideration transferred and the components(Millions of yen)

Acquisition date(August 27, 2015)
Fair value of equity interest in ASKUL Corporation
already held at the time of the acquisition
Total consideration transferred

93,611
A

93,611

As a result of the reevaluation of equity interest already held at the time of the acquisition of control by theCompany in ASKUL Corporation at fair value on the acquisition date, the Company recognized a gain on theacquisition of ¥59,441 million for the six-month period ended September 30, 2015. This gain is presented as“Gain from remeasurement relating to business combination” in the condensed interim consolidated statements
of income.

48

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

(5) Fair values of assets and liabilities, non-controlling interests and goodwill on the acquisition date(Millions of yen)

Acquisition date(August 27, 2015)
45,36544,751
32,40971,944
8,363
202,832

Trade and other receivables
Other current assets
Tangible assets
Intangible assets
Other non-current assets
Total assets

71,49535,495
106,990

Current liabilities
Non-current liabilities
Total liabilities
Net assets

B

95,842

Non-controlling interests1
Goodwill2

C55,13352,902A-(B-C)

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on the acquisition
date.

The above amounts, which are provisional fair values based on the best estimate at present, may change in a year

from the acquisition date when additional information related to facts and circumstances that existed as of the acquisition
date may be obtained.
Notes:
1. Non-controlling interests
Non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation are measured based on the proportionate interests at theacquisition date in the identifiable net assets of the acquiree at the acquisition date.
2. Goodwill
Goodwill reflects excess earning power expected from the future business development and the synergy between the
Company and the acquiree.

(6) Proceeds from acquisition of control over subsidiaries(Millions of yen)

Acquisition date(August 27, 2015)
Cash and cash equivalents held by the acquiree at the time ofacquisition of control
Proceeds in cash from the acquisition of control overthe subsidiary

31,291
31,291(7) Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income before elimination of inter-company transactions after theacquisition date, which are recorded in the condensed interim consolidated statements of income for thesix-month period ended September 30, 2015, are ¥24,719 million and ¥456 million, respectively.
In addition, the above net income includes amortization expenses, which are related to intangible assets
recognized at the acquisition date, and other.

49

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

4. Other current assets
The components of other current assets are as follows:(Millions of yen)

As ofMarch 31, 2015
44,660173,463
37,276
255,399

Tax receivable*
Prepaid expense
Other
Total

As of
September 30, 2015
886,572
176,306
64,0791,126,957

Note:
Withholding income tax of ¥844,748 million related to dividend within the group companies is included in tax
receivable as of September 30, 2015.

5. Property, plant and equipment
The components of the carrying amounts of property, plant and equipment are as follows:(Millions of yen)

As ofMarch 31, 2015
267,633
3,251,673
365,305
97,342
318,345
17,1504,317,448

Buildings and structures
Telecommunications equipment
Equipment and fixtures
Land
Construction in progress
Other
Total

As of
September 30, 2015
267,948
3,219,022
598,895
106,708
220,167
22,2894,435,029

6. Intangible assets
The components of the carrying amounts of intangible assets are as follows:(Millions of yen)

As ofMarch 31, 2015
Intangible assets with indefinite useful lives
FCC licenses
Trademarks
Intangible assets with finite useful lives
Software
Customer relationships
Favorable lease contracts
Spectrum migration costs
Game titles
Trademarks
Other
Total

50

As of
September 30, 2015

4,320,296
727,251

4,317,383
747,590

757,866
582,223
145,191
53,550109,21159,583
148,411
6,903,582

776,679
532,208
136,110
114,705
74,75158,50094,5466,852,472

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

7. Interest-bearing debt
(1) Components of interest-bearing debt
The components of interest-bearing debt are as follows:(Millions of yen)

As ofMarch 31, 2015
Current
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of lease obligations
Current portion of preferred securities
Current portion of installment payables
Total
Non-current
Long-term borrowings
Corporate bonds
Lease obligations
Installment payables
Total

As of
September 30, 2015

413,846
32,000525,898
183,557
411,453
200,000
50,661
1,817,415

385,503
32,000558,906
258,208
373,624
52,028
1,660,269

2,116,498
6,825,868
744,911
102,552
9,789,829

2,005,628
7,339,733
803,044
83,213
10,231,618(2) Components of decrease in short-term interest-bearing debt
The components of “Decrease in short-term interest-bearing debt, net” in the condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)Six-month period ended
September 30, 2014
(65,687)

Net decrease of short-term borrowings

Six-month period ended
September 30, 2015
(31,295)(3) Components of proceeds from long-term interest-bearing debt
The components of “Proceeds from long-term interest-bearing debt” in the condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)Six-month period ended
September 30, 2014
146,579
Proceeds from long-term borrowings
1,2
700,000
Proceeds from issuance of corporate bonds
217,212
Proceeds from sale and leaseback of newly acquired equipment
Total
1,063,791

51

Six-month period ended
September 30, 2015
226,510
652,990272,821
1,152,321

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

Notes:
1. Corporate bonds issued for the six-month period ended September 30, 2014 are as follows:

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

45th Unsecured Straight
Corporate Bond

May 30, 2014

¥300,000 million

1.45%

May 30, 201946th Unsecured Straight
Corporate Bond

Sept. 12, 2014

¥400,000 million

1.26%

Sept. 12, 2019

Company name / Name of bonds
SoftBank Group Corp.

Notes:
2. Corporate bonds issued for the six-month period ended September 30, 2015 are as follows:

Date of issuanceTotal amountof issuanceInterest
rate

Date of maturity

47th Unsecured Straight
Corporate Bond

June 18, 2015

¥100,000 million

1.36%

June 18, 2020

USD-denominated Senior Notes
due 2022

July 28, 2015

$1,000 million¥124,120 million3

5.38%
2.98%4

July 30, 2022

USD-denominated Senior Notes
due 2025

July 28, 2015

$1,000 million¥124,120 million3

6.00%
3.44%4

July 30, 2025

Euro-denominated Senior Notes
due 2022

July 28, 2015

€500 million¥67,722 million3

4.00%
3.73%4

July 30, 2022

Euro-denominated Senior Notes
due 2025

July 28, 2015

€1,250 million¥169,306 million3

4.75%
4.25%4

July 30, 2025

Euro-denominated Senior Notes
due 2027

July 28, 2015

€500 million¥67,722 million3

5.25%
4.72%4

July 30, 2027

Company name / Name of bonds
SoftBank Group Corp.

Notes:
3. Stated amounts are cash outflows at the time of redemption, which are fixed by the currency swap contracts designated as cash
flow hedges.
4. Interest rates are after considering the effect of exchange from fixed interest rates denominated in foreign currencies to fixedinterest rates in Japanese yen by the currency swap contracts designated as cash flow hedges.

(4) Components of repayment of long-term interest-bearing debt
The components of “Repayment of long-term interest-bearing debt” in the condensed interim consolidated
statements of cash flows are as follows:(Millions of yen)Six-month period ended Six-month period ended
September 30, 2014
September 30, 2015
(179,131)(315,957)(63,434)(25,104)(144,059)(259,242)(200,000)(24,290)(24,649)(410,914)(824,952)

Repayment of long-term borrowings
Redemption of corporate bonds1,3
Repayment of lease obligations
Redemption of preferred securities
Payment of installment payables
Total

52

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

Notes:
1. Major Corporate bonds redeemed for the six-month period ended September 30, 2014 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 19, 2007

¥14,900 million

4.36%

June 19, 2014

June 10, 2011

¥30,000 million

0.65%

June 10, 2014

April 23, 2007

$181 million¥18,513 million

3.49%

May 1, 2014

SoftBank Group Corp.
26th Unsecured Straight
Corporate Bond
37th Unsecured Straight
Corporate Bond
iPCS, Inc.2
Second Lien Senior Secured
Floating Rate Notes due 2014

Notes:
2. iPCS, Inc. is a subsidiary of Sprint.
3. Major corporate bonds redeemed for the six-month period ended September 30, 2015 are as follows:

Company name / Name of bonds

Date of issuance

Amount of redemption

Interest
rate

Date of redemption

June 2, 2010

¥25,000 million

1.67%

June 2, 2015

SoftBank Group Corp.
32nd Unsecured Straight
Corporate Bond

8. Foreign exchange rate
Exchange rates of the major currencies used for translating financial statements of foreign operations are as follows:(1) Rate at the end of the period

U.S. dollars

As ofMarch 31, 2015
120.17(yen)
As of
September 30, 2015
119.96(2) Average rate for the quarter
For the six-month period ended September 30, 2014

U.S. dollars

Three-month period ended
June 30, 2014
102.14(yen)
Three-month period ended
September 30, 2014
104.35For the six-month period ended September 30, 2015

U.S. dollars

Three-month period ended
June 30, 2015
121.3453(yen)
Three-month period ended
September 30, 2015
121.91

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

9. Equity(1) Capital surplus
For the six-month period ended September 30, 2015
The Company additionally acquired 24.1% shares of Supercell, a subsidiary of the Company, from existing
shareholders and the Company’s ownership in Supercell became 77.8%. In connection with this transaction,¥120,847 million is deducted from capital surplus as “Changes in interests in subsidiaries.”(2) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2015

As of
September 30, 2015

Available-for-sale financial assets

14,52429,023

Cash flow hedges
Exchange differences on translating
foreign operations(7,345)(22,580)533,207505,351

540,386

511,794Total
10. Other operating loss
The components of other operating loss are as follows:(Millions of yen)

Sprint segment
Legal reserves1
Imparment loss on non-current assets2
Severance costs associated with reduction inwork force of Sprint
Other
Other
Total

Six-month period ended
September 30, 2014

Six-month period ended
September 30, 2015-

(19,140)(10,403)(17,130)(2,239)

4,999
2,405
(9,726)2,568(6,086)(35,300)

Notes:
1. Legal reserves for ongoing legal matters.
2. Impairments are primarily related to cell site construction costs that are no longer expected to be used as a result ofchanges in Sprint’s network plans.

11. Finance cost
The components of finance cost are as follows:(Millions of yen)Interest expense54

Six-month period ended
September 30, 2014

Six-month period ended
September 30, 2015

(171,246)(215,668)

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 201512. Dilution gain from changes in equity interest
For the six-month period ended September 30, 2014
The Company recorded dilution gain from changes in equity interest of ¥599,141 million related to Alibaba, which isan associate of the Company. This is mainly due to the issuance of new shares by Alibaba and the conversion ofConvertible Preference Shares issued by Alibaba into common stock in connection with its listing on the New York
Stock Exchange on September 19, 2014.

13. Other non-operating income (loss)
The components of other non-operating income are as follows:(Millions of yen)

Impairment loss on securities1
Impairment loss on equity method associates2
Gain from remeasurement relating to applying
equity method3
Gain from financial assets at FVTPL4
Provision of allowance for doubtful accounts1
Other
Total

Six-month period ended
September 30, 2014
(2,206)(19,393)

Six-month period ended
September 30, 2015
(18,944)
(654)

6,249

-

1,218
-

112,625(20,024)

4,629(9,503)(3,702)
69,301

Notes:
1. Shares and debt interests related to investments of PT Trikomsel Oke Tbk. in Indonesia were impaired as the investment
amount and the debt interests amount were not expected to be collected.

As a result, impairment loss on securities andprovision of allowance for doubtful accounts totaling ¥38,185 million were recorded for the six-month period ended
September 30, 2015.
2. The Company recorded impairment loss of ¥19,393 million with regard to the equity method associate for the six-month
period ended September 30, 2014 as the fair value had been declining for a prolonged period and the carrying amount was
reduced to the recoverable amount.
3. Due to the increase in the percentage of voting rights, the equity method was newly applied to the investment in associates
and the gain arose from remeasurement of the interest already held by the Company at the time the equity method wasapplied, based on the fair value on the date of the equity method application.
4. Gain or loss arising from financial assets at FVTPL is mainly changes in fair value of preferred stock investment including
embedded derivatives, designated as financial assets at FVTPL.

14. Discontinued operations
GungHo Online Entertainment, Inc.
SoftBank Group Corp. entered into an agreement to tender in the Tender Offer for 188,235,200 shares, a portion of
the common shares of GungHo held by SoftBank Group Corp, on April 28, 2015. The Tender Offer was completed
on June 1, 2015 and 188,235,200 common shares of GungHo held by Softbank Group Corp. were transferred to
GungHo for ¥80,000 million.
An agreement between Heartis G.K. (“Heartis”) and Son Holdings Inc. to extinguish the pledge on 100,000,000
shares, out of the common shares of GungHo held by Heartis, was executed and the Agreement on Exercise of Voting
Rights* for the 100,000,000 shares was terminated effective on June 1, 2015.

55

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

As a result of the transactions, GungHo was no longer qualified as a subsidiary and became an equity method
associate on June 1, 2015.
Operating results related to GungHo for the six-month period ended September 30, 2014, the three-month period
ended September 30, 2014, and from April 1, 2015 to June 1, 2015 are presented as discontinued operations
separately from continuing operations in the condensed interim consolidated statement of income.
Note:
Heartis (Taizo Son’s asset management company, the second largest shareholder of GungHo, and Taizo Son, chairman of
GungHo is the representative director), and Masayoshi Son, chairman and CEO of SoftBank Group Corp., entered into a
Memorandum of Understanding on Exercise of Voting Rights for Deferment of Execution of Pledges (the “MOU”), on April
1, 2013. Under the MOU, all of GungHo common shares held by Heartis were pledged to Son Holdings, Masayoshi Son’s
asset management company and in order to defer the execution of pledges, Heartis agreed to act on behalf of Masayoshi Sonat the shareholders’ meeting of GungHo, for the voting rights related to 213,080,000 shares (ownership ratio: 18.50%) out of
the common shares of GungHo held by Heartis.

The operating results and cash flows from discontinued operations are as follows:(1) Operating results from discontinued operations(Millions of yen)

Revenue
ExpenseIncome before income tax from disconiued operations
Income taxes
Income after income tax from disconiued operations
Loss relating to loss of control in discontined
operations
Deferred tax expenses for investment temporary
differences
Net income (loss) from discontined operations

Six-month period ended
September 30, 201482,499(50,894)
31,605(14,607)
16,998Six-month period ended
September 30, 2015
26,604(17,404)
9,200(3,568)
5,632-(12,739)

16,998139(6,968)Six-month period ended
September 30, 2014
32,641(1,010)(139)
31,492Six-month period ended
September 30, 2015
16,051(735)(86)
15,230(2) Cash flows from discontinued operations(Millions of yen)

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in fincanicng activities
Total

15. Supplemental information to the condensed interim consolidated statements of cash flows(1) Scope of purchase of property, plant and equipment, and intangible assets“Purchase of property, plant and equipment, and intangible assets” includes cash outflows from long-term prepaid
expenses that are included in “Other non-current assets” in the condensed interim consolidated statements offinancial position.
(2) Presentation of cash flow regarding finance leases
Once the Company purchases telecommunications equipment for the purpose of assembly, installation andinspection, the Company sells the equipment to lease companies for sale and leaseback purposes. The leased
asset and lease obligation are recorded in the condensed interim consolidated statements of financial position.

56

SoftBank Group Corp. Consolidated Financial Report
For the six-month period ended September 30, 2015

The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property, plantand equipment, and intangible assets” under cash flows from investing activities, and the cash inflows from thesale of the equipment to lease companies are included in “Proceeds from long-term interest-bearing debt” undercash flows from financing activities.
(3) Income taxes paid
For the six-month period ended September 30, 2015
Payment of withholding income tax related to dividend within the group companies ¥551,241 million is included
in “Income taxes paid,” and ¥317,692 million and ¥233,549 million are expected to be refunded by the end of
December 2015 and the end of July 2016, respectively.
(4) Decrease from loss of control over subsidiaries
For the six-month period ended September 30, 2015
“Decrease from loss of control over subsidiaries” is the amount of cash and cash equivalents held by GungHo atthe time of loss of control.
(5) Payments for purchase of subsidiaries’ equity from non-controlling interests“Payments for purchase of subsidiaries’ equity from non-controlling interests” is mainly due to the additionalpurchase of shares of Supercell and Sprint from existing shareholders respectively.

57