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 nine-month period ended December 31, 2015 (IFRS)Tokyo, February 10, 2016

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%%%Nine-month period ended¥6,810,206 7.9 ¥875,322 18.0 ¥918,214 (14.3) ¥511,102 (20.2) ¥428,972 (26.0) ¥445,436 (58.6)
December 31, 2015
Nine-month period ended¥6,309,043
December 31, 2014-

¥741,641¥1,070,886-

Basic earnings per
share (yen)Diluted earnings per
share (yen)Nine-month period ended
December 31, 2015

¥362.80¥351.42

Nine-month period ended
December 31, 2014

¥487.45¥486.86-¥640,724 18.8

¥579,446

15.9 ¥1,075,030 92.3

Note:
Net sales, operating income, and income before income tax for the nine-month period ended December 31, 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 nine-month period ended December 31, 2014 are not presented because corresponding amounts for thenine-month period ended December 31, 2014 are revised and presented respectively.
Please refer to page 62 “Note 15. 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 December 31, 2015

¥21,497,648¥3,855,507¥2,926,932

13.6

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: Five companies
SoftBank BB Corp. SoftBank Telecom Corp. Ymobile Corporation
Mobiletech Corporation BB Mobile Corp.
Please refer to page 38 “(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December 31,
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 38 “(2) 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 December 31, 2015:
1,200,660,365 shares
As of March 31, 2015:
1,200,660,365 shares[2] Number of treasury stock:
As of December 31, 2015:
26,712,553 shares
As of March 31, 2015:
11,463,275 shares[3] Number of average stocks during nine-month period (April-December):
As of December 31, 2015:
1,182,405,746 shares
As of December 31, 2014:
1,188,725,107 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 present and assumptions
which are deemed to be reasonable. However, actual results may be different due to various factors.
On February 10, 2016, 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 nine-month period ended December 31, 2015

(Appendix)
Contents
1. Qualitative Information Regarding Nine-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. 23(Reference 2: Definitions and Calculation Methods of Principal Operational Data) ........................................ P. 26(Reference 3: Capital Expenditure, Depreciation and Amortization) ................................................................ P. 28(2) Qualitative Information Regarding Consolidated Financial Position ............................................................... P. 29
a. Assets, Liabilities and Equity ........................................................................................................................ P. 29
b. Cash Flows .................................................................................................................................................... P. 35(3) Qualitative Information Regarding Forecasts on Consolidated Results of Operations .................................... P. 37
2. Notes to Summary Information ............................................................................................................................... P. 38(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December 31, 2015 .......... P. 38(2) Changes in Accounting Estimates ..................................................................................................................... P. 38
3. Condensed Interim Consolidated Financial Statements ........................................................................................... P. 39(1) Condensed Interim Consolidated Statements of Financial Position .................................................................. P. 39(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income ..................................... P. 41(3) Condensed Interim Consolidated Statements of Changes in Equity ................................................................. P. 45(4) Condensed Interim Consolidated Statements of Cash Flows ............................................................................ P. 47(5) Significant Doubt about Going-concern Assumption ........................................................................................ P. 48(6) Notes to Condensed Interim Consolidated Financial Statements ...................................................................... P. 48
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 Global Group Inc.

“Supercell”

Supercell Oy“Alibaba”

Alibaba Group Holding Limited“GungHo”

GungHo Online Entertainment, Inc.

1

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

1. Qualitative Information Regarding Nine-month Period Results(1) Qualitative Information Regarding Consolidated Results of Operations
a. Consolidated Results of Operations(Millions of yen)
Nine-month Period
Ended December 31,
2014

Nine-month Period
Ended December 31,
2015

6,309,043

6,810,206

501,1637.9%

741,641875,322

133,68118.0%(incl.) Gain fromremeasurement relating tobusiness combination-

59,44159,441-

Income before income tax

1,070,886

918,214(152,672)(14.3%)(incl.) Dilution gain fromchanges in equity interest

599,806

14,654(585,152)-

Net income from continuing
operations

614,953

518,070(96,883)(15.8%)

25,771(6,968)(32,739)-

640,724

511,102(129,622)(20.2%)

579,446

428,972(150,474)(26.0%)

ChangeChange %Continuing operations
Net sales
Operating income

Discontinued operations
Net income (loss) fromdiscontinued operations
Net income
Net income attributable toowners of 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

Three-month
Period Ended
Dec. 31, 2015

Q1

Q2

Q3

Q4

Q1

Q2

Q3

¥102.14¥104.35¥114.39¥119.56¥121.34¥121.91¥121.07< Results Related to GungHo >In the nine-month period ended December 31, 2015 (the “period”), GungHo no longer qualified as a subsidiary and became
an equity method associate as a result of the completion of a tender offer by GungHo for its own shares, in which theCompany tendered, and the extinguishment of a pledge on 100,000,000 of GungHo’s common shares held by Heartis G.K.
(a pledge with Son Holdings Inc. as the pledgee). 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 to an equity method
associate are recognized as income and loss on equity method investments under continuing operations. Net income andloss of GungHo for the nine-month period ended December 31, 2014 (the “same period of the previous fiscal year”) arerevised retrospectively and presented under discontinued operations.
Please refer to page 62 “15. Discontinued operations” under “3. Condensed Interim Consolidated Financial Statements(6) Notes to Condensed Interim Consolidated Financial Statements” for details.

2SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

Earnings for the Fiscal
Year Ended March2015

Fiscal Year Ended March 2015

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

Three-month
Period Ended
Dec. 31, 2015

Q1

Q2

Q3

Q4

Q1

Q2

Q3

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 on equity
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 ¥6,810,206 million, for a ¥501,163 million (7.9%) year-on-year increase. This resulted from increases
in net sales of all the segments.
The Domestic Telecommunications segment’s net sales (for customers) amounted to ¥2,315,819 million, for a¥61,999 million (2.8%) increase year on year. The main reason for the increase was increases in both telecom service
revenue and product and other sales at SoftBank Corp.
The Sprint segment’s net sales (for customers) totaled ¥2,783,054 million, for a ¥99,617 million (3.7%) year-on-yearincrease.

The increase was due to the yen’s year-on-year depreciation against the U.S. dollar, while the U.S. dollar

based net sales decreased year on year.
The Yahoo Japan segment’s net sales (for customers) was ¥438,337 million, for a ¥133,810 million (43.9%) 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 ¥994,506 million, for a ¥164,010 million (19.7%)
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 in order to pursue right-sized inventory and higher distribution
efficiency.

3

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015(b) Operating Income
Operating income totaled ¥875,322 million, for a year-on-year increase of ¥133,681 million (18.0%). The main reason
for the increase was increases in income of ¥42,331 million in the Domestic Telecommunications segment, ¥19,673
million in the Sprint segment, and ¥52,431 million in the Yahoo Japan segment.
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 ¥329,484 million, for a ¥65,320 million (24.7%) 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)

Nine-month Period Ended
December 31, 2014

Nine-month Period Ended
December 31, 2015

(264,164)(329,484)(65,320)(incl.) Sprint(171,209)(209,294)(38,085)

Reference: in U.S. dollars$ (1,601) million$ (1,723) million$ (122) million

Finance cost

Change(d) Income and Loss on Equity Method Investments
Income on equity method investments was ¥303,167 million, an increase of ¥291,106 million year on year. This was
mainly due to recording income on equity method investments of ¥303,400 million for the period, which is presented
as (C) under page 5 “Reference: Amount of Impact of Alibaba on the Company’s Consolidated Income before Income
Tax” (the “impact amount table”), as the portion attributable to the Company out of Alibaba’s net income of ¥938,838
million (IFRSs basis). Net income at Alibaba includes gain from remeasurement relating to business combination of¥369,994 million, which was recorded 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 was income attributable to the Company, as shown in the impact amount table as (D).
The Company’s income on equity method investments was subdued at ¥12,061 million in the same period of theprevious fiscal year primarily because income on equity method investments related to Alibaba was ¥3,938 million,
shown as (E) in the impact amount table. This was because Alibaba’s net income of ¥8,154 million (IFRSs basis)
reflected a loss of ¥398,716 million recognized in conjunction with an increase in the fair value of Convertible
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 nine-month period ended December 31, 2015

(Millions of yen)

Nine-month Period Ended
December 31, 2014

Nine-month Period
Ended December 31, 2015

ChangeChange %Income and loss on equity
method investments

12,061

303,167

291,106-(incl.) Alibaba

3,938

303,400

299,462-(e) Dilution Gain from Changes in Equity Interest
Dilution gain from changes in equity interest was ¥14,654 million, a decrease of ¥585,152 million year on year. Thisis mainly attributable to the Company recording dilution gain from changes in equity interest of ¥599,668 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. ¥12,741 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)

Nine-month Period
Ended December 31,
2014

Nine-month Period
Ended December 31,
2015

Income and loss on equity investments
related to Alibaba (A)

(E)

3,938

(C)

Loss on increase in fair value ofConvertible Preference Shares (i)(F)(144,235)

Gain from remeasurement relating tobusiness combination (ii)-

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

148,173

Change303,400

299,462-

144,235

119,121

119,121

184,279

36,106

12,741(586,927)

Dilution gain from changes in equity
interest related to Alibaba, net (B)(G) 599,668(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)603,606

316,141(287,465)(H)(f) Other Non-operating Income and Loss
Other non-operating income was ¥54,555 million, an improvement of ¥73,013 million compared to the same period of
the previous fiscal year (loss of ¥18,458 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 ¥108,426 million, increasing by¥103,440 million year on year.

This was due to recording the amount of changes in the fair value of the Company’s

financial assets at FVTPL during the period from March 31, 2015 (the “previous fiscal year-end”) to December 31,

5

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

2015 (the “end of the third 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, andJasper 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 61 “14. 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 ¥918,214 million, a decrease of ¥152,672 million (14.3%) year
on year.

(h) Income Taxes
Income taxes were ¥400,144 million, a decrease of ¥55,789 million (12.2%) 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 ¥518,070 million, for a ¥96,883 million (15.8%)
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 ¥25,771 million was recorded in the same
period of the previous fiscal year). This was due to recording ¥12,739 million primarily for loss relating to loss ofcontrol in discontinued operations related to GungHo, while also recording its income after income tax of ¥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 fair value, which is the closing
share price of GungHo multiplied by the number of its shares held by the Company, at the time of loss of control over
GungHo on June 1, 2015.

(k) Net Income
As a result of (i) and (j), net income amounted to ¥511,102 million, a ¥129,622 million (20.2%) year-on-year decrease.

6SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015(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 ¥428,972 million, for a ¥150,474 million,(26.0%) decrease year on year.

(m) Comprehensive Income
Comprehensive income totaled ¥445,436 million, for a ¥629,594 million (58.6%) year-on-year decrease.

Of this,comprehensive income attributable to owners of the parent was ¥359,965 million, for a ¥594,812 million (62.3%) yearon-year decrease.

7

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 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 segmentsfrom the fiscal year ending March 2016 as follows.
Reportable segments until the fiscal year ended March 2015

Reportable segments

Segments

Main Businesses

Core Companies

Former SoftBank Mobile Corp.
・Provision of mobile communications services in Japan
Former Ymobile Corporation
・Sale of mobile devices and accessories
Wireless City Planning Inc.
・Sale of PC software and peripherals
Mobile・Production and distribution of online games for smartphones Former SoftBank Telecom Corp.
Communications
Brightstar Corp.
and other devices
GungHo Online Entertainment, Inc.
Supercell Oy
・Provision of mobile communications services by Sprint in the Sprint Corporation
U.S.
・Sale of mobile devices and accessories accompanying theSprintabove services
・Provision of fixed-line telecommunications services bySprintFormer SoftBank Telecom Corp.
・Provision of telecom services such as fixed-line telephone
Former SoftBank BB Corp.
and data communications services to domestic corporate
Fixed-line
customers
Former Ymobile Corporation
Telecommunications
・Provision of broadband services to domestic retail customers Yahoo Japan Corporation
・Services accompanying the above services
・Internet advertising
Yahoo Japan Corporation
Internet・e-commerce business・Membership services
Others・Fukuoka SoftBank HAWKS related businesses
Fukuoka SoftBank HAWKS Corp.

Reportable segments adopted in the fiscal year ending March 2016

Reportable segments

Segments

Main Businesses

Core Companies

・Provision of mobile communications services in Japan
SoftBank Corp.
・Sale of mobile devices in Japan
Wireless City Planning Inc.
Domestic
・Provision of broadband services to retail customers in Japan
Telecommunications ・Provision of telecom services to corporate customers inJapan, such as data communications and fixed-line telephoneservices
Sprint Corporation
・Provision of mobile communications services in the U.S.
・Sale and lease of mobile devices and sale of accessories in
Sprintthe U.S.
・Provision of fixed-line telecommunications services in the
U.S.
・Internet advertising
Yahoo Japan Corporation
Yahoo Japan・e-commerce business
ASKUL Corporation
・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 for smartphones Supercell Oy
Othersand other devices
Fukuoka SoftBank HAWKS Corp.
・Fukuoka SoftBank HAWKS related businesses

8SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

Notes:
1. The results for the same period of the previous fiscal year are presented in accordance with the reportable segments adopted
in the fiscal year ending March 2016.
2. The results at Yahoo Japan Corporation related to Yahoo! BB, the broadband service that 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 fiscal year ending March 2016 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 (loss) + depreciation and amortization – gain from remeasurement relating tobusiness combination ± other operating income (loss)) in each segment
Sprint segment’s EBITDA for the period includes ¥17,270 million of “loss on disposal of property, plant and equipment,”
recognized as “other operating loss” in the condensed consolidated statements of income. For details of “loss on disposalof property, plant and equipment,” please refer to page 60 “11. Other operating loss” under “3. Condensed Interim
Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements.”(a) Domestic Telecommunications Segment(Millions of yen)

Nine-month Period Ended
December 31, 2014

Nine-month Period Ended
December 31, 2015

Net sales

2,276,362

2,341,990

65,628

2.9%

EBITDA

897,279

930,184

32,905

3.7%

Depreciation andamortization(322,541)(331,866)(9,325)-

Other operating loss

(18,751)-

18,751-

Segment income

555,987

598,318

42,331

7.6%

ChangeChange %< 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 wirelessaccess (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 of terminals for broadband services on customer premises.

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 nine-month period ended December 31, 2015

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 communications
devices. The Company makes a focused effort to acquire and retain these main subscribers.

(Breakdown of Net Sales)(Millions of yen)

Nine-month Period Ended
December 31, 2014

Nine-month Period Ended
December 31, 2015

ChangeChange %2,276,362

2,341,990

65,6282.9%

Telecom service revenue

1,751,573

1,792,997

41,424

2.4%

Mobile communications

1,447,966

1,463,363

15,397

1.1%

Telecom2

1,304,672

1,300,147(4,525)(0.3%)

3

Service143,294

163,216

19,922

13.9%

Broadband

97,636124,336

26,70027.3%

Fixed-line
telecommunications

205,971

205,298(673)(0.3%)

Product and other sales

524,789

548,993

24,204

4.6%

Total net sales< Overview of Operations >The segment’s net sales increased by ¥65,628 million (2.9%) year on year to ¥2,341,990 million. Of this, telecom
service revenue increased by ¥41,424 million (2.4%) year on year to ¥1,792,997 million, while product and othersales increased by ¥24,204 million (4.6%) year on year to ¥548,993 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 mainly reflected an increase in sales of smartphones and terminals

for broadband services on customer premises.

Smartphone sales increased as the impact of a rise in the unit prices

more than offset a decline in the number of mobile devices shipped.4
Mobile communications revenue increased by ¥15,397 million (1.1%) year on year to ¥1,463,363 million,
primarily due to an increase in service revenue mainly associated with an expansion in content services, which waspartially offset by a decrease in telecom revenue associated with a decrease in PHS subscribers.
EBITDA increased by ¥32,905 million (3.7%) year on year to ¥930,184 million.

Operating expenses (adifference of net sales and EBITDA) increased by ¥32,723 million (2.4%) year on year to ¥1,411,806 million.

Themain factors affecting operating expenses are as follows:
・Cost of products decreased by ¥2,064 million (0.5%) year on year. This primarily reflected an improvement
in valuation loss on mobile device inventories that more than offset a cost increase associated with the increasein unit prices.
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 nine-month period ended December 31, 2015

・Sales commission fees increased by ¥28,387 million (10.9%) 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.
・Telecommunications network charges increased by ¥16,214 million (11.4%) 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. This
was associated with an increase in subscribers to the Smartphone Flat-rate mobile communication service priceplan, which provides 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 ¥23,257 million (21.9%) 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 ¥9,325 million (2.9%) year on year to ¥331,866 million.
No other operating income (loss) was recognized during the period. In the same period of the previous fiscal
year, the Company recognized provision for unprofitable contract of ¥18,751 million in relation to fixed-line
telecommunications services.
As a result of the above, segment income increased by ¥42,331 million (7.6%) year on year to ¥598,318 million.

11SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

< 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 26 “(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; 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 24 “(Reference 1: Principal Operational Data) (a) SoftBank Corp. < Changes in the Presentation
Method and Definitions of Principal Operational Data >” for details of the changes.

i. Mobile Communications Service
・Subscribers (Main Subscribers)
The cumulative number of main subscribers of mobile communications services at the end of the third quarter stoodat 31,686,000, an increase of 136,000 from the previous fiscal year-end. Net additions in smartphones and tablets
during the period exceeded a net loss in feature phones.
(Thousands)
As of March 31, 2015
Cumulative number ofsubscribers

As of December 31, 2015

31,55031,686

Change136

・Home Bundle Discount Hikari Set Applications
The Home Bundle Discount Hikari Set (previously referred to as “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 applications5 at theend of the third quarter for the Home Bundle Discount Hikari Set stood at 2,085,000 for mobile communications
5

Includes the Fiber-optic Discount applied to mobile communication services under Y!mobile brand

12

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015services, and 1,038,000 for broadband services.6

・ARPU (Main Subscribers)
Total ARPU for main subscribers of mobile communications services for the three-month period ended December
31, 2015 (the “third quarter”) was ¥4,720, for a year-on-year increase of ¥10.
Of this, telecom ARPU declined by ¥60 year on year to ¥4,170. 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 cumulative number of applications for Home Bundle DiscountHikari Set.

The negative impact from the Smartphone Flat-rate on year-on-year variance of telecom ARPU (theyear-on-year difference of the impact amount arising in each quarter) is declining because the migration of the
majority of customers with high voice usage to Smartphone Flat-rate has advanced. However the negative impact
from Home Bundle Discount Hikari Set is increasing in line with growth in the cumulative number of applications.
Service ARPU increased by ¥70 year on year to ¥560.
services such as Daily Value Pack7 and App Pass.8

This reflects the steady increase of subscribers to content

SoftBank Corp. will strive to further increase total ARPU going

forward by aggressively pursuing the increase of service ARPU.
(Yen / Month)Three-month Period Ended
December 31, 2014

Three-month Period Ended
December 31, 2015

4,710

4,720

10

Telecom ARPU

4,230

4,170

(60)

Service ARPU

490

560

70

Total ARPU

Change・Number of Units Sold (Main Subscribers)
The number of units sold9 for mobile devices of main subscribers for the period decreased by 763,000 year on year
to 7,683,000. This was mainly due to year-on-year decreases in the number of units sold for both smartphones andfeature phones. For smartphones, this result reflects a year-on-year decrease in the number of device upgrades,
which more than offset an increase in the number of new subscriptions.

6

The cumulative number of applications of the Home Bundle Discount Hikari Set includes that of fiber-optic lines as long as the discount is applied tothe associated mobile communications services, even if physical connection of the fiber optic line is not complete at the central office of NTT East or
NTT West.
7
A service enabling subscribers to purchase food and movie tickets, among other items, at discounts
8
A service enabling subscribers to use a select range of popular apps
9
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 nine-month period ended December 31, 2015

(Thousands)
Nine-month Period Ended
December 31, 2014

Nine-month Period Ended
December 31, 2015

8,446

7,683

(763)

New subscriptions

3,935

3,738

(197)

Device upgrades

4,511

3,945

(566)

Units sold

Change・Churn Rate (Main Subscribers)
The churn rate for main subscribers of mobile communications services for the third quarter was 1.41%, adeterioration of 0.03 of a percentage point year on year.

This mainly reflected a deterioration in the churn rate forsmartphones associated with intensified competition to acquire customers under MNP.
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, SoftBank Corp. is now executing initiatives for improving 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
bundle discounts such as the Home Bundle Discount Hikari Set and Home Bundle Discount Denki Set,10 which will
be launched in April 2016.

Three-month Period Ended
December 31, 2014

Three-month Period Ended
December 31, 2015

1.38%

1.41%

Churn rate

Change0.03 pp deteriorationii. Broadband Service
The cumulative number of subscribers for broadband services at the end of the third quarter stood at 4,847,000, for
an increase of 490,000 from the previous fiscal year-end.

This mainly reflected an increase of 1,099,000 11

subscribers to SoftBank Hikari, while subscribers for Yahoo! BB hikari with FLET’S12 decreased by 447,000 andsubscribers for Yahoo! BB ADSL13 decreased by 162,000.
Starting with the launch of a fiber-optic service SoftBank Hikari in March 2015, SoftBank Corp. shifted its main
focus of broadband services from Yahoo! BB hikari with FLET’S to SoftBank Hikari and is now working to acquire
SoftBank Hikari customers through sales channels nationwide such as electronics retail stores and SoftBank Stores.
Since SoftBank Hikari ARPU11 is higher than that of Yahoo! BB hikari with FLET’S and Yahoo! BB ADSL, SoftBank
Corp. expects a steady increase in telecom service revenue of broadband services in step with the increase insubscribers to SoftBank Hikari.

For the third quarter, SoftBank Hikari ARPU was ¥5,060, Yahoo! BB hikari with

FLET’S ARPU was ¥1,830, and Yahoo! BB ADSL ARPU was ¥2,630.

10

A service that offers discounts on mobile communications service or broadband service charges for customers that subscribe to both the electric
power service SoftBank Denki and a mobile communications service or broadband service such as SoftBank Hikari
11
Includes the number of subscribers and ARPU of SoftBank Air, the high-speed wireless internet service provided through the Air terminal
12
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

14

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

(Thousands)
As of March 31, 2015

As of December 31, 2015

ChangeCumulative subscribers

4,357

4,847

490

SoftBank Hikari11

119

1,218

1,099

Yahoo! BB hikariwith FLET’S

2,672

2,225

(447)

Yahoo! BB ADSL

1,566

1,404

(162)

(b) Sprint Segment(Millions of yen)

Nine-month Period Ended
December 31, 2014

Nine-month Period Ended
December 31, 2015

2,809,857

2,927,742

117,885

4.2%

461,566

744,811283,24561.4%(406,738)(622,154)(215,416)-(15,013)(63,169)(48,156)-

39,81559,48819,67349.4%

Net sales
EBITDA(Note 5)
Depreciation andamortization
Other operating
loss
Segment income
Reference: U.S. dollar based results (IFRSs)

ChangeChange %(Millions of U.S. dollars)

Net sales

26,25024,109(2,141)(8.2%)EBITDA(Note 5)

4,359

6,133

1,774

40.7%

Segment income

415

489

74

17.8%

Note:
5. Sprint segment’s EBITDA for the period includes ¥17,270 million ($143 million) of “loss on disposal of property, plant andequipment,” recognized as “other operating loss” in the condensed consolidated statements of income. For details of “losson disposal of property, plant and equipment,” please refer to page 60 “11. Other operating loss” under “3. Condensed Interim
Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements.”< Overview of Operations >The segment’s net sales increased by ¥117,885 million (4.2%) year on year to ¥2,927,742 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 $2,141 million (8.2%) year on year. The decrease in U.S. dollar net sales mainly reflecteda decrease in telecom service revenue due to customer shifts to lower rate plans associated with device financing
options such as leases and installment sales.
EBITDA increased by ¥283,245 million (61.4%) year on year to ¥744,811 million.

This reflected an increase in

EBITDA in U.S. dollar terms by $1,774 million (40.7%), 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 reflected a year-on-year decrease inoperating expenses (a difference of net sales and EBITDA) of $3,915 million, especially in cost of products and15

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015selling, general and administrative expenses.

Aside from this, a sale-leaseback transaction of leased devices in

November 2015 had a negative impact on EBITDA.

For details, please refer to “(Reference: Sale-Leaseback

Transaction for Leased Devices)” below.
The main factors affecting operating expenses are as follows:
・A decrease in cost of products occurred mainly because the compositional ratio of postpaid units sold under theleasing program, which started in September 2014, reached 53% of the number of Sprint platform14 postpaid
units sold (excluding wholesale and affiliate) in the period. This factor outweighed a slight year-on-year decline
in the number of Sprint platform postpaid units sold. For the conventional sales of mobile devices, including
the installment billing method, the sale of the devices and the cost of products are recognized at the point of sale.
However, under the leasing program, lease revenue is recognized throughout the period of the lease (typically 24months), along with depreciation expenses for the capitalized leased devices.
・A decrease in selling, general and administrative expenses mainly reflected a decrease in provision for
doubtful accounts accompanying a decrease in non-payment of service charges due to an increase in thecompositional ratio of prime customers.

It also reflected further reductions in advertising and personnel

expenses associated with cost reduction initiatives.
Depreciation and amortization increased by ¥215,416 million (53.0%) year on year to ¥622,154 million, mainlyreflecting the increase in leased devices.
Other operating loss was ¥63,169 million, a deterioration of ¥48,156 million from the same period of the previous
fiscal year. The loss for the period is mainly comprised of the following:
Severance costs associated reduction in work force
Legal reserves
Impairment loss on non-current assets¥23,556 million¥21,682 million¥10,403 million

Please refer to page 60 “11. Other operating loss” under “3. Condensed Interim Consolidated Financial Statements(6) Notes to Condensed Interim Consolidated Financial Statements” for details.
As a result of the above, segment income increased by ¥19,673 million (49.4%) year on year to ¥59,488 million.
(Reference: Sale-Leaseback Transaction for Leased Devices)As part of its fund procurement initiatives, Sprint entered into agreements (“MLS Handset Sale-Leaseback”) to selland lease back certain leased devices, with Mobile Leasing Solutions, LLC (“MLS”), SoftBank Group Corp.’s equity
method company, in November 2015.
of $1.3 billion.

Certain leased devices were sold to MLS in exchange for the total proceeds

MLS leases back each device to Sprint in exchange for monthly rental payments to be made by

Sprint to MLS.
MLS Handset Sale-Leaseback causes a negative impact on EBITDA. Leased devices are recorded as property,
plant and equipment on the balance sheet and depreciated as shown as (B) in the following table. Those leased
devices sold under MLS Handset Sale-Leaseback are derecognized and, therefore, are no longer depreciated by Sprint.
Instead, rental payments to MLS are recorded in cost of products (as shown as (C) in the following table). As
expenses have been shifted from depreciation expense to cost of products, there is a negative impact on EBITDA.
In the period, approximately $60 million (approximately ¥7.3 billion) of rental payments was recorded for about one
month’s rental payments.

14

Sprint-operated CDMA and LTE networks

16

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

For details of MLS Handset Sale-Leaseback, please refer to page 54 “4. Handset sale-leaseback” under “3.
Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated Financial
Statements.”
Leased Devices

Leased Devices Sold under
MLS Handset Sale-Leaseback

On-balance sheet(property, plant and equipment)

Off-balance sheet(A) Customer lease revenues(A) Customer lease revenues

Cost of products-(C) Rental payments to MLS

EBITDA(A)(A) - (C)(B) Depreciation of leased devices-(A) - (B)(A) - (C)Consolidated statements offinancial position

Consolidated statements of income
Net sales

Depreciation
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

27 “(Reference 2: Definitions and Calculation Methods of Principal Operational Data) (b) Sprint Platform.”
In the three-month period ended September 30, 2015 (the “second quarter”), certain prepaid subscribers of Sprint
who had their payment period extended for a certain period were included in the number of postpaid subscribers.
However, these subscribers have been reclassified to be included in the number of prepaid subscribers from the third
quarter.

The number of subscribers for the second quarter has been retroactively revised in line with this change,along with other postpaid data: ARPU, phone ABPU, and churn rate.
・ Number of Subscribers (Sprint Platform)
The Sprint platform had 58,359,000 subscribers as of the end of the third quarter, an increase of 2,222,000 from the endof the previous fiscal year. This represented a net addition of 1,189,000 in postpaid and 2,078,000 in wholesale andaffiliate in the period, although there was a net loss of 1,045,000 in prepaid.
The net addition in postpaid was driven by a continued increase in tablets and a net addition of 416,000 in phones(smartphones and feature phones). The net addition in wholesale and affiliate was mainly due to a growth in thenumber of communication modules.

The net loss in prepaid was due to intensified competition in the prepaid

market.
(Thousands)

As of March 31, 2015
Sprint platform cumulative
subscribers

As of December 31, 2015

Change56,13758,3592,222

29,70630,895

1,189

24,87825,294416

Prepaid

15,706

14,661(1,045)Wholesale & affiliate

10,72512,803

2,078

Postpaid(incl.) Phone

17

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

・ABPU (Sprint Platform Postpaid Phone)
Sprint platform postpaid phone ABPU for the third quarter increased by $1.98 year on year to $70.99.
Out of this, ARPU declined by $5.05 year on year to $60.30.

This was mainly due to an increase in thecomposition ratio of customers on lower rate plans offered in conjunction with device financing programs such as leases
and installment sales.
On the other hand, average equipment billings per user per month increased by $7.03 year on year to $10.69. This
reflected the increased adoption of device financing programs.
(U.S. dollar / month)Three-month Period Ended
December 31, 2014

Three-month Period Ended
December 31, 2015

Postpaid phone ABPU

69.01

70.99

1.98

ARPU
Average equipment
billings per user

65.35

60.30

(5.05)

3.66

10.69

7.03

Change・Churn Rate (Sprint Platform)
The Sprint platform postpaid churn rate for the third quarter improved by 0.68 of a percentage point year on year to
1.62%.

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 prime customers beginningin August 2014.

Postpaid churn rate

Three-month Period Ended
December 31, 2014

Three-month Period
Ended December 31, 2015

2.30%

1.62%

18

Change0.68 pp improvement

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

< Sprint’s 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 and liquidity improvement.

As for net sales, Sprint is focusing on increasing the numberof postpaid phone subscribers, which are the largest source of revenue.

Signs of a turnaround have begun to appear

with two consecutive quarters of net subscriber additions from the second quarter.

Meanwhile, in cost reduction

and liquidity improvement, Sprint is making solid progress on multiple initiatives as described below. While thissection is prepared based on U.S. GAAP that Sprint adopts, there is no significant difference to be made in IFRS,
except a possible difference in the timing of recognition.

i. Cost Reduction
Sprint has set a target of reducing operating expenses by $1.5 billion in the fiscal year ending March 2016 (the“current fiscal year”), reviewing the budget from scratch across all areas.
So far, Sprint has been exceeding the target on cost reductions in the current fiscal year and expects to achieve the$1.5 billion target. A large portion of the reduced operating expenses has been reinvested in strategic initiatives,
such as an expansion of sales channels, to achieve long-term growth. Nevertheless, the year-on-year reduction incost of services and selling, general and administrative expenses for the period amounted to approximately $800
million.
To further reduce operating expenses, Sprint began to transform its cost structure (the “transformation”) during theperiod.

Through the transformation, Sprint expects to achieve a run rate15 operating expense reduction of $2.0

billion or more at the end of March 2017, with the cost reduction effect projected to continue in the following fiscal
years. The targeted reduction amount of $2.0 billion is comprised of the following:
Cost of products
Maximum approximately $0.2 billion
Cost of services
Approximately $0.4 billion - $0.6 billion
Selling, general and administrative expenses (Note 6)
Approximately $1.2 billion - $1.4 billion
Note:
6. Sales, marketing, and customer care-related expenses, etc.

In conjunction with the transformation, Sprint expects to incur transformation program costs totaling
approximately $1.0 billion, according to current estimates (the “transformation program cost”). The transformation
program costs are expected to be split relatively evenly between operating expenses and capital expenditures. The
bulk of the transformation program costs, apart from the $176 million in severance costs associated with reduction
in work force recorded for the third quarter, are expected to be incurred in the fiscal year ending March 2017 (the“next fiscal year”). Unlike the operating expense reduction in the current fiscal year, of which a large portion was
reinvested, the cost reduction through the transformation, with the exception of the transformation program costs, is
expected to contribute to profit.

15

Estimated future figures based on the assumption that current trends continue

19

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

ii. Liquidity Improvement
In addition to cash flow improvement through the aforementioned cost reduction initiatives, Sprint is working todiversify its fund procurement methods to improve its liquidity. During the third quarter, Sprint took the following
steps to improve liquidity.
・Executed MLS Handset Sale-Leaseback: procured $1.1 billion
For details, please refer to page 54 “4. Handset sale-leaseback” under “3. Condensed Interim Consolidated
Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements.”
・Increased total capacity of receivables facility to $4.3 billion
This was achieved by amending the existing receivables facility to include the sale of future lease receivables.
These lease receivables are related to devices not included in MLS Handset Sale-Leaseback.
Sprint’s liquidity at the end of the third quarter totaled $6.0 billion, including cash, cash equivalents and shortterm investments, and undrawn borrowing capacity under the revolving bank credit facility.16

Sprint also plans to carry out the following fund procurement in the next fiscal year:
・Sale-leaseback of leased devices (to be executed quarterly): $3.0 billion to $4.0 billion in total for the next
fiscal year
・Network-related fund procurement: $3.0 billion - $5.0 billion in total for the next fiscal year
Sprint expects to raise proceeds against its existing radio access equipment and a small portion of its spectrum
portfolio, as well as from combination of new assets associated with the network densification initiative.
As a result of these initiatives, Sprint expects to maintain an adequate amount of available liquidity for
approximately $3.7 billion of principal payments on long-term debt due by March 2017 and execute its current
business plan.
(c) Yahoo Japan Segment(Millions of yen)

Nine-month Period Ended
December 31, 2014

ChangeChange %Net sales

309,530

444,724

135,194

43.7%

EBITDA

153,686

156,247

2,561

1.7%

Depreciation andamortization(12,439)(22,010)(9,571)--59,44159,441-

141,247

193,678

52,431

37.1%

Gain fromremeasurement relating
to business combination
Segment income

16

Nine-month Period
Ended December 31,
2015

A form of loan that allows borrowing within a specified period and maximum amount20

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

< Overview of Operations >The segment’s net sales increased by ¥135,194 million (43.7%) year on year to ¥444,724 million.

This increase

was mainly a result of the consolidation of ASKUL Corporation in August 2015, as well as revenue growth in theadvertising business driven by an increase in sales of display advertising.17
EBITDA increased by ¥2,561 million (1.7%) year on year to ¥156,247 million. This was primarily due to anincrease in income in the advertising business. On the other hand, sales promotion expense increased for Yahoo!
Shopping, as well as for the credit card business such as Yahoo! JAPAN Card at YJ Card Corporation, which wasconsolidated in January 2015.
Depreciation and amortization increased by ¥9,571 million (76.9%) year on year to ¥22,010 million. This mainlyreflected continuing capital expenditure related to big data and so forth, as well as recognition of customer
relationships associated with the consolidation of ASKUL Corporation and YJ Card Corporation.
Gain from remeasurement relating to business combination was ¥59,441 million (not recorded in the same periodof the previous fiscal year). This was due to the remeasurement at fair value of existing equity interest at the timeof the consolidation of ASKUL Corporation in August 2015.
As a result of the above, segment income increased by ¥52,431 million (37.1%) year on year to ¥193,678 million.

(d) Distribution Segment(Millions of yen)

Nine-month Period
Ended December 31,
2015

Nine-month Period Ended
December 31, 2014

ChangeChange %Net sales

863,188

1,049,988

186,800

21.6%

EBITDA

2,213

20,702

18,489835.5%(6,807)(8,381)(1,574)-

5,758(13,633)(19,391)-

1,164(1,312)(2,476)-

Depreciation andamortization
Other operating
income (loss)
Segment income(loss)< 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.

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.

21

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

< Overview of Operations >The segment’s net sales increased by ¥186,800 million (21.6%) year on year to ¥1,049,988 million.

This was mainly

because an increase in sales of mobile devices for Sprint. This increase outweighed a decrease in sales associatedwith a contraction in the mobile device OEM business being conducted in Argentina (contracted manufacturing formobile device manufacturers) and the termination of a mobile device wholesale supply contract with Verizon
Communications Inc.

Since September 2014, the sale of mobile devices at Sprint, which were previously solddirectly from Sprint to dealers, has gradually been shifted to selling to dealers via Brightstar to pursue right-sized
inventory and higher distribution efficiency.

The yen’s year-on-year depreciation against the U.S. dollar also

contributed to the net sales increase.
EBITDA increased by ¥18,489 million (835.5%) year on year to ¥20,702 million.

This was mainly attributable

to an increase in service revenue from Sprint for providing distribution and inventory control services associated withthe sale of mobile devices for Sprint.

This more than offset the negative effect of the abovementioned contractionof the mobile device OEM business.

The absence of provision for doubtful accounts in Latin America of ¥6,470

million that was recorded in the same period of the previous fiscal year also contributed to the year-on-year EBITDA
increase.
Depreciation and amortization increased by ¥1,574 million (23.1%) year on year to ¥8,381 million.

Other

operating income (loss) deteriorated by ¥19,391 million year on year to other operating loss of ¥13,633 million.
This was due to recording impairment loss related to property, plant and equipment and intangible assets in Latin
America in the period. Please refer to page 60 “11. Other operating loss” under “3. Condensed Interim Consolidated
Financial Statements (6) Notes to Condensed Interim Consolidated Financial Statements” for details.
As a result of the above, segment loss was ¥1,312 million, deteriorating by ¥2,476 million year on year.

22SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

(Reference 1: Principal Operational Data)(a) SoftBank Corp.
i. Mobile Communications Service
Fiscal Year Ended March 2015

Fiscal Year Ending March 2016

Three-month Three-month Three-month Three-month Fiscal Year Three-month Three-month Three-month
PeriodPeriod Ended Period Ended Period Ended Period Ended
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 Dec.Ended31, 2015
Q1

Q2

Q3

30,868
80
4,700
4,220
480
1.19

31,018
150
4,710
4,230
480
1.30

31,174
157
4,710
4,230
490
1.38

2,864
1,365
1,499

Q4

Full Year

Q1

Q2

Q3

31,55031,57031,611

31,686

375
4,580
4,080
500
1.57

762
4,670
4,190
490
1.36

21
4,660
4,140
520
1.24

41
4,720
4,190
540
1.28

74
4,720
4,170
560

3,589
1,388

3,240
1,821

11,686
5,756

2,198
1,169

2,470
1,212

3,015
1,356

2,201

1,419

5,930

1,029

1,258

1,659

’000

639

1,315

2,085

’000

326

660

1,038

Main subscribers18
Cumulative subscribers’000

Net additions’000

Total ARPU18
Telecom ARPU18
Service ARPU18¥/ month¥/ month¥/ month

18

Churn rate

% / month

Units sold19’000

New subscriptions

’000

1,994
1,182

Device upgrades

’000

812

1.41

Cumulative applications for the Home Bundle Discount Hikari Set20
Mobile communications
service
21

Broadband service

Overall mobile communications’000

44,56430,8688,426

44,90031,0188,723

44,887
31,174
8,786

44,88631,5508,610

44,417
31,5708,317

44,11731,611
8,149

43,74831,686
7,891

’000

5,271

5,160

4,927

4,726

4,530

4,356

4,171

’000

4,242

4,243

4,256

4,357
119

4,452
341

4,602
715

4,847
1,218

’000

2,531

2,583

2,638

2,672

2,610

2,435

2,225

’000

1,711

1,660

1,618

1,566

1,501

1,452

1,404

4,270

4,980

5,060

’000

Cumulative subscribers
Main subscribers18
Communication
modules18
PHS

’000

ii. Broadband Service
Cumulative subscribers18
SoftBank Hikari22
Yahoo! BB hikari with
FLET’S23
Yahoo! BB ADSL24
ARPU18SoftBank Hikari22
Yahoo! BB hikari with
FLET’S23
Yahoo! BB ADSL24

’000

3,100

¥/ month¥/ month

1,770

1,830

1,840

1,830

1,820

1,830

1,860

1,830

¥/ month

2,870

2,830

2,780

2,740

2,810

2,680

2,660

2,630

Note:
7. The presentation method and definitions for the principal operational data of SoftBank Corp.’s mobile communications services havebeen changed in the first quarter and the third 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 2015 and forthe first quarter and second quarter of the fiscal year ending March 2016 are also presented based on the changes applied in the third
quarter.

18

For definitions and calculation methods of subscribers, churn rate, and ARPU at SoftBank Corp., see page 26 “(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
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. Includes subscribers for Fiber-optic Discount applied to Y!mobile brand mobile communications services
21
The cumulative number of applications of the Home Bundle Discount Hikari Set includes that of fiber-optic lines as long as the discount is applied tothe associated mobile communications services, even if physical connection of the fiber optic line 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

23

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 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

Communication modules

Details
Smartphones, Note 8 feature phones, tablets, mobile data communication devices, Note 9others Note 10
Communication modules, Note 11 Mimamori Phone, prepaid mobile phones, others

PHS

PHS

Main subscribers

Notes:
8. 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.
9. 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.
10. From the third quarter, the category for SIM cards (IC cards that have telephone number and other subscriber information
recorded on them) sold with tablets and other devices has been changed from “communication modules” to “main subscribers”(the cumulative number of reclassified subscribers was 16,000 as of December 31, 2015). Data for the fiscal year ended
March 2015 and for the first and second quarters of the fiscal year ending March 2016 has been revised in line with this change.
11. 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 12 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:
12. 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, thenumbers of subscribers for these devices were included in the respective numbers of subscribers of both companies.

24SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015(b) Sprint
Fiscal Year Ended March 2015

Fiscal Year Ending March 2016

Three-month Three-month Three-month Three-month Fiscal Year Three-month Three-month Three-month
Ended
Period 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 Dec. 31, 2015
Q1

Q2

Q3

57,141

57,66858,57858,35954,88856,13756,812

57,86858,35929,46529,49529,70630,01630,39430,89525,28425,07924,87824,86624,92925,294

14,715

14,75015,16015,706

15,34015,152

14,661

’000

8,879

9,706

10,233

10,725

11,456

12,322

12,803

Clearwire28

’000

1,222

1,116

1,041

1,004

856

710

-

Net additions25

’000

(220)

590

967

2,586

675

1,056

491

Postpaid

’000

(181)

(272)

30

211

(212)

310

378

501

’000

(620)

(500)

(205)

(201)

(1,526)

(12)

62

366

’000

(542)

35

410

546

449

(366)

(188)

(491)

’000

503

827

527

492

2,349

731

866

481

$ / month

69.34

69.02

69.01

69.19

69.91

70.62

70.99

Postpaid$ / month

62.07

60.58

58.90

56.94

55.48

53.99

52.48

Prepaid$ / month

27.38

27.19

27.12

27.50

27.81

27.66

27.44

Postpaid% / month

2.05

2.18

2.30

1.84

1.56

1.54

1.62

Prepaid% / month

4.44

3.76

3.94

3.84

5.08

5.06

5.82

Cumulative subscribers25

Sprint total
Sprint platform
Postpaid(incl.) Phone26, 27

Prepaid27
Wholesale andaffiliate(incl.) Phone26, 27

Sprint platform

Prepaid27

Wholesale andaffiliate
Postpaid phone26
ABPU29

Q1

Q2

Q3

Q4

’000

54,55355,03755,929’000

53,331

53,921’000

29,737’000

25,785’000

Full Year

1,249

ARPU29Churn rate29

25

Includes the number of communication module service subscribers
Smartphones and feature phones
27
In the second quarter, certain prepaid subscribers of Sprint who had their payment period extended for a certain period were included in the number of
postpaid subscribers. However, these subscribers have been reclassified to be included in the number of prepaid subscribers from the third quarter.
The number of subscribers for the second quarter has been retroactively revised in line with this change, along with other postpaid data: ARPU, phone
ABPU, and churn rate.
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 27 “(Reference 2: Definitions and Calculation
Methods of Principal Operational Data) (b) Sprint Platform.”
26

25

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 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 13 feature phones, tablets, mobile data communications devices, Note 14 others
Communication modules: communication modules, Note 15 Mimamori Phone, prepaid mobile phones, others
PHS: PHS
Notes:
13. Smartphones to which the Smartphone Family Discount are applied are included under communication modules.
14. Mobile data communication devices to which the Data Card 2-Year Special Discount are applied are included undercommunication modules.
15. 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 physical connection 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 physical connection of a fiber-optic line at the central office of
NTT East or NTT West is complete and who are provided with services

26

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

Yahoo! BB ADSL subscribers:
Number of users of Yahoo! BB ADSL for which physical connection 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

27

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

(Reference 3: Capital Expenditure, Depreciation and Amortization)(a) Capital Expenditure (Acceptance Basis)(Millions of yen)
Fiscal Year Ending March 2016

Fiscal Year Ended March 2015

Three-month Three-month Three-month Three-monthFiscal Year
Three-month Three-month Three-month
Period Ended Period Ended Period Ended Period Ended
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 Dec. 31, 2015
Q1

Q2

Q3

Q4

Domestic
Telecommunications segment

130,504

133,645

141,184

178,375

Sprint segment

148,793

162,025

213,765

Yahoo Japan
segment

8,532

5,031

Distribution
segment

2,559

OthersConsolidated
total

Full Year

Q1

Q2

Q3

583,708

72,66488,51989,950175,266

699,849

160,367

165,421

194,848

9,418

7,073

30,054

7,196

16,921

9,904

2,709

2,958

5,969

14,195

1,896

2,086

2,354

5,351

4,121

9,229

6,926

25,627

1,121

2,866

7,564

295,739

307,531376,554373,609

1,353,433

243,244

275,813304,620(b) Depreciation and Amortization(Millions of yen)
Fiscal Year Ended March 2015

Fiscal Year Ending March 2016

Fiscal Year
Three-month Three-month Three-monthThree-month Three-month Three-month Three-month
Ended
Period 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 Dec. 31, 2015
Q1

Q2

Q3

Q4

Domestic
Telecommunications segment

105,375

107,066

110,100

131,187

Sprint segment

128,621

132,762

145,355

Yahoo Japan
segment

3,653

4,271

Distribution
segment

2,446

OthersConsolidated
total

Full Year

Q1

Q2

Q3

453,728

107,798

110,911113,157

172,414579,152

190,278

207,901

223,975

4,515

5,925

18,364

5,646

7,287

9,077

2,141

2,220

3,441

10,248

2,406

3,385

2,590

8,114

8,020

8,533

9,086

33,753

10,070

8,741

8,546

248,209254,260

270,723

322,053

1,095,245

316,198338,225

357,345

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

28

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015(2) Qualitative Information Regarding Consolidated Financial Positiona. Assets, Liabilities and Equity
Assets, liabilities and equity at the end of the third quarter were as follows:(Millions of yen)

As of March 31, 2015

As of December 31, 2015

ChangeChange %Total assets

21,034,169

21,497,648

463,479

2.2%

Total liabilities

17,180,992

17,642,141

461,149

2.7%

Total equity

3,853,177

3,855,507

2,330

0.1%

¥120.61

¥0.44

0.4%

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 December 31, 2015

Change3,258,653

2,769,911(488,742)

481,891

262,364(219,527)

1,895,648

1,948,669

433,013420,188

53,021(12,825)

Other financial assets

197,068

202,673

5,605

Inventories

351,152

337,137(14,015)

Other current assets

255,399568,718

313,319

Total current assets

5,957,920

5,827,108(130,812)(incl.) Sprint

Trade and other receivables(incl.) Sprint

Current assets decreased by ¥130,812 million (2.2%) from the previous fiscal year-end, to ¥5,827,108 million.
The primary components of the change were as follows:i. Cash and cash equivalents decreased by ¥488,742 million from the previous fiscal year-end.

For the details

on changes in cash and cash equivalents, please refer to page 35 “b. Cash Flows.”
ii. Other current assets increased by ¥313,319 million from the previous fiscal year-end. This mainly reflected
the recording of ¥293,489 million in withholding income tax to be paid, related to dividends within the groupcompanies, which is expected to be refunded by the end of July 2016.

29

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015(b) Non-current Assets(Millions of yen)

As of March 31, 2015
Property, plant and equipment

As of December 31, 2015

Change4,317,448

4,350,672

33,2242,141,120

2,232,401

91,281

1,663,363

1,570,682(92,681)353,867

355,163

1,296

6,903,582

6,840,633

5,993,034

5,900,766(62,949)(92,268)

4,320,296

4,344,060

23,764

4,320,296

4,344,060

23,764

786,834

802,354

15,520772,433

773,857

1,424

582,223

488,630(93,593)496,594

382,125(114,469)

Software757,866

790,800

32,934

Game titles

109,21167,365(41,846)

Others347,152

347, 424

272

1,102,456

1,583,877

481,421

Other financial assets

662,463

972,917

310,454

Deferred tax assets

235,488

160,821(74,667)

Other non-current assets

191,449

190,938(511)

Total non-current assets

15,076,249

15,670,540

594,291(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 ¥594,291 million (3.9%) from the previous fiscal year-end to ¥15,670,540 million.
The primary components of the change were as follows:i. Investments accounted for using the equity method increased by ¥481,421 million from the previous fiscal
year-end. This primarily reflected an increase of ¥282,631 million in the carrying amount of Alibaba due tothe recording of income on equity method investments related to Alibaba. Other factors include the newrecording of GungHo as an investment accounted for using the equity method and an impact from theacquisition of the shares of Social Finance, Inc., which provides student loan refinancing services in the U.S.
ii. Other financial assets increased by ¥310,454 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

30SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

such as preferred shares of ANI Technologies Pvt. Ltd. and Jasper Infotech Private Limited.
iii. Property, plant and equipment increased by ¥33,224 million from the previous fiscal year-end. This primarilyreflected an increase in capitalized leased devices at Sprint due to an increase in mobile device leases under
the leasing program, despite continued regular depreciation of network equipment at SoftBank Corp. and Sprint.
In November 2015, as part of its fund procurement initiatives, Sprint sold certain leased devices with the total
carrying amount of $1.3 billion, approximately ¥162.0 billion, to SoftBank Group Corp.’s equity method
company MLS.

For further details of the transaction, please refer to page 54 “4. Handset sale-leaseback”

under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated
Financial Statements.”
iv. Goodwill decreased by ¥92,681 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 December 31, 2015

Change1,817,415

2,002,319

184,904

216,247545,676

329,429

413,846462,883

49,03760,085

144,732

84,647

Current portion of
long-term borrowings

525,898

582,582

56,684Current portion of
corporate bonds

183,557

483,859

300,302

113,491

338,903

225,412Current portion oflease obligations

411,453

389,401(22,052)

Current portion ofpreferred securities

200,000-(200,000)

Others82,661

83,594933

1,863,480

1,621,889(241,591)

741,549

519,050(222,499)

Other financial liabilities

12,917

8,214(4,703)

Income taxes payables

184,175

91,341(92,834)

Provisions

54,99852,208(2,790)

Other current liabilities

739,501

662,572(76,929)

Total current liabilities

4,672,486

4,438,543(233,943)(incl.) Sprint
Short-term borrowings(incl.) Sprint(incl.) Sprint

Trade and other payables(incl.) Sprint

31

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

Current liabilities declined by ¥233,943 million (5.0%) from the previous fiscal year-end to ¥4,438,543 million.
The primary components of the change were as follows:i. Trade and other payables decreased by ¥241,591 million from the previous fiscal year-end.

This mainlyreflected a decrease in accounts payable-other related to telecommunications equipment at Sprint and SoftBank
Corp. after making payments.
ii. Interest-bearing debt increased by ¥184,904 million from the previous fiscal year-end. This mainly reflected
an increase of ¥329,429 million in interest-bearing debt at Sprint. The increase in Sprint’s interest-bearing
debt was primarily due to an increase in the current portion of corporate bonds following the transfer of¥225,412 million of corporate bonds from non-current assets as the redemption date came to be within one
year. Another contributing factor at Sprint was an increase of ¥84,647 million in short-term borrowings as
Sprint procured funds by securitizing receivables (wireless service and installment receivables related to themobile communications services). On the other hand, the Company recorded a 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.

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

As of March 31, 2015
Interest-bearing debt

As of December 31, 2015

Change9,789,829

10,303,150

513,3213,886,597

3,647,770(238,827)

Long-term borrowings

2,116,498

2,031,652(84,846)

Corporate bonds

6,825,868

7,382,058

556,190

3,813,511

3,545,142(268,369)

Lease obligations

744,911820,685

75,774

Others102,552

68,755(33,797)

Other financial liabilities

27,142

68,22041,078

Defined benefit liabilities

128,282

132,775

4,493

Provisions

155,705

129,081(26,624)

2,052,615

2,214,311

161,696

1,748,273

1,768,352

20,079Other non-current liabilities

354,933

356,061

1,128

Total non-current liabilities

12,508,506

13,203,598

695,092(incl.) Sprint(incl.) Sprint

Deferred tax liabilities(incl.) Sprint

32

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

Non-current liabilities increased by ¥695,092 million (5.6%) from the previous fiscal year-end to ¥13,203,598
million.

The primary components of the change were as follows:i. Interest-bearing debt increased by ¥513,321 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 a total of¥470,000 million in unsecured straight corporate bonds. This was offset by a transfer of Sprint’s senior notes
totaling $2.3 billion (balance at the previous fiscal year-end: ¥290,499 million) into current liabilities as theredemption date came to be within one year, and the full early redemption of Brightstar’s senior notes totaling$600 million (balance at the previous fiscal year-end: ¥76,411 million).
ii. Deferred tax liabilities increased by ¥161,696 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
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 December 31, 2015

ChangeEquity attributable to ownersof the parent

2,846,306

2,926,932

80,626

Non-controlling interests

1,006,871

928,575(78,296)

Total equity

3,853,177

3,855,507

2,330

Equity totaled ¥3,855,507 million, for a ¥2,330 million (0.1%) increase from the previous fiscal year-end. Of thisamount, equity attributable to owners of the parent increased by ¥80,626 million (2.8%), while non-controllinginterests decreased by ¥78,296 million (7.8%). The ratio of equity attributable to owners of the parent to total
assets increased by 0.1 of a percentage point from the previous fiscal year-end to 13.6%.

33

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

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

As of March 31, 2015

As of December 31, 2015

ChangeCommon stock

238,772

238,772-

Capital surplus

374,845

261,342(113,503)

Retained earnings

1,740,686

2,121,159

380,473

Treasury stock(48,383)(165,726)(117,343)

Accumulated othercomprehensive income

540,386

471,385(69,001)

Available-for-sale financial
assets

14,524

31,138

16,614

Cash flow hedges(7,345)(41,413)(34,068)

Exchange differences ontranslating foreign operations

533,207481,660(51,547)

2,846,306

2,926,932

80,626

Total equity attributable toowners of the parent

Equity attributable to owners of the parent increased by ¥80,626 million (2.8%) from the previous fiscal year-end
to ¥2,926,932 million.

The primary components of the change were as follows:i. Retained earnings increased by ¥380,473 million from the previous fiscal year-end. This was mainly due torecording net income attributable to owners of the parent of ¥428,972 million.
ii. Treasury stock increased by ¥117,343 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 business environment.
iii. Capital surplus declined by ¥113,503 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 ¥928,575 million, for a ¥78,296 million (7.8%) decrease from the previous fiscal
year-end.

34SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015b. Cash Flows
Cash flows for the period were as follows.
Cash and cash equivalents at the end of the third quarter totaled ¥2,769,911 million, for a ¥488,742 million decrease
from the previous fiscal year-end.
(Millions of yen)

Nine-month Period
Ended December 31,
2014

Nine-month Period
Ended December 31,
2015

ChangeCash flows from operating activities

799,427

566,846(232,581)

Cash flows from investing activities(1,359,208)(1,334,845)

24,363

Cash flows from financing activities

951,003270,227(680,776)(a) Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥566,846 million (compared with ¥799,427 million provided in thesame period of the previous fiscal year). The primary components of cash flows were as follows:i. Net income totaled ¥511,102 million.
ii. The main items added to net income were depreciation and amortization of ¥1,016,496 million, income taxes of¥403,573 million, and finance cost of ¥329,485 million.
iii. The main items subtracted from net income were income on equity method investments of ¥303,167 million, othernon-operating income and loss of ¥54,689 million, and gain from remeasurement relating to business combinationof ¥59,441 million.
iv. Increase in inventories was ¥291,449 million (negative cash flow). This was mainly attributable to an increasein the number of leased devices at Sprint. Sprint recognizes a cash outflow when it purchases the device froma manufacturer as an increase in inventories. When the device is leased through Sprint’s direct channel (lease
inception), the cost of the device is reclassified from inventory to property, plant and equipment as a non-cash
transaction (a reduction in inventories is not recorded as a cash inflow nor is an increase in property, plant andequipment recorded as a cash outflow).
v. Interest paid was ¥348,612 million.
vi. Income taxes paid was ¥1,216,709 million.

This includes a payment of ¥904,688 million for withholding

income tax related to dividends within the group companies.

Of this, ¥611,199 million was refunded by theend of December 2015 (included in income taxes refund of ¥641,988 million) and ¥293,489 million is expected
to be refunded by the end of July 2016.

35

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015(b) Cash Flows from Investing Activities
Net cash used in investing activities was ¥1,334,845 million (compared with ¥1,359,208 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 ¥1,092,761 million.
This was mainly due to an acquisition of telecommunications equipment at Sprint and SoftBank Corp.
ii. Proceeds from sales of property, plant and equipment and intangible assets amounted to ¥146,603 million. Thiswas mainly due to the procurement of funds at Sprint by conducting MLS Handset Sale-Leaseback.
iii. Payments for acquisition of investments amounted to ¥352,932 million.

This was mainly attributable toinvestments including Forward Ventures, LLC, Social Finance, Inc., and Yamada Denki Co., Ltd.
iv. 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.
v. Payments for acquisition and proceeds from sales/redemption of marketable securities for short-term trading
amounted to ¥71,308 million and ¥145,486 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 provided by financing activities was ¥270,227 million (compared with ¥951,003 million provided in thesame 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 ¥1,826,661 million.

The components were as

follows:
・ Proceeds from issuance of corporate bonds of ¥1,053,258 million. This consisted of SoftBank Group Corp.’sissuance of foreign currency denominated senior notes and unsecured straight corporate bonds.
・ Proceeds from sale and leaseback of newly acquired equipment of ¥405,247 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 ¥368,156 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(Items Decreasing Cash Flows)i. Repayment of long-term interest-bearing debt was ¥1,172,999 million.

The primary components were as

follows:
・ Repayment of long-term borrowings of ¥413,351 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 ¥358,502 million.
31

Funding based on the credit provided by export credit agencies (ECA)36

This was primarily due to SoftBank Corp. repaying

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015lease obligations for telecommunications-related equipment. Additionally, in July 2015, Shiodome Estate
Corporation, a subsidiary that engages in real estate management, acquired a trust beneficiary interest in the
FUKUOKA YAHUOKU! DOME and repaid the remaining lease obligations as stipulated in a purchase
contract to acquire the trust beneficiary interest which was entered into in March 2012.
・ 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 of the full amount of preferred (restricted voting)securities issued in September 2011.
・ Redemption of corporate bonds of ¥158,281 million.

This was primarily due to Brightstar redeeming seniornotes of ¥72,642 million, Sprint mainly redeeming the Export Development Canada Facility of ¥60,539
million, and SoftBank Group Corp. redeeming straight corporate bonds of ¥25,000 million.
ii. Payment for purchase of subsidiaries’ equity from non-controlling interests was ¥253,860 million. This was
mainly due to the additional purchase of shares of Supercell and Sprint.
iii. Payment for purchase of treasury stock was ¥120,037 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.

37

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December 31, 2015
(Specified subsidiaries (five 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.
SoftBank Group Corp. merged with Mobiletech Corporation, effective on December 1, 2015, and subsequently on thesame day, merged with BB Mobile Corp., a subsidiary of Mobiletech Corporation. As a result of the merger,
Mobiletech Corporation and BB Mobile Corp., which were our specified subsidiaries, were dissolved and are excluded
from the scope of consolidation.

(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 14. Other non-operating income(loss) Note 2” under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim
Consolidated Financial Statements.”(Impairment loss on non-current assets)
The recoverable amount of certain cash-generating unit in the Distribution segment became negative and therefore thecarrying amount related to the cash-generating unit was impaired, as a result of reviewing the business plan, for thethree-month period ended December 31, 2015. The details are described in “Note 11. Other operating loss Note 5”
under “3. Condensed Interim Consolidated Financial Statements (6) Notes to Condensed Interim Consolidated
Financial Statements.”

38

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

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

As ofMarch 31, 2015

As ofDecember 31, 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

2,769,911
1,948,669
202,673
337,137
568,718
5,827,108

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

4,350,672
1,570,682
6,840,633
1,583,877
972,917160,821
190,938
15,670,540
21,497,648

39

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 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 ofDecember 31, 2015

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

2,002,319
1,621,889
8,214
91,341
52,208662,572
4,438,543

Total liabilities

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

10,303,150
68,220132,775
129,0812,214,311
356,061
13,203,598
17,642,141

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
261,342
2,121,159(165,726)
471,385
2,926,932
928,575
3,855,507
21,497,648

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

40SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income
For the nine-month period ended December 31
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 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

Nine-month period ended
December 31, 2014*

Nine-month period ended
December 31, 2015

6,309,043(3,865,093)
2,443,950

6,810,206(4,108,026)
2,702,180(1,674,328)(1,786,141)-

59,441(27,981)741,641(264,164)
12,061
599,806(18,458)
1,070,886(455,933)
614,953(100,158)
875,322(329,484)
303,167
14,65454,555918,214(400,144)
518,070

25,771
640,724(6,968)511,102579,446
61,278640,724

428,972
82,130511,102478.62
8.83
487.45371.50(8.70)
362.80478.048.82
486.86360.11(8.69)
351.42

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

41

The details are described in “NoteSoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)

Nine-month period ended
December 31, 2014

Nine-month period ended
December 31, 2015

640,724

511,102(45,985)(6)(45,985)

(6)

4,736
9,096

16,458(33,727)

423,151(46,927)

43,308(1,464)

480,291(65,660)

434,306
1,075,030(65,666)
445,436

954,777
120,253
1,075,030

359,965
85,471
445,436

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

42

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

For the three-month period ended December 31
Condensed Interim Consolidated Statements of Income(Millions of yen)Three-month period ended Three-month period ended
December 31, 2014*
December 31, 2015
Continuing operations
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating loss
Operating income
Finance cost
Income on equity method investments
Other non-operating loss
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income 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

2,287,178(1,464,202)
822,976

2,386,404(1,502,010)
884,394(628,026)(18,255)
176,695(92,918)
31,357(8,424)
106,710(83,200)
23,510(629,980)(64,858)
189,556(113,816)
38,581(14,723)
99,598(97,121)
2,477

8,773
32,283

2,477

18,736
13,54732,283

2,289
188
2,477

12.77
2.99
15.76

1.95
1.95

11.70
2.98
14.68

0.11
0.11

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

43

The details are described in “NoteSoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

Condensed Interim Consolidated Statements of Comprehensive Income(Millions of yen)Three-month period ended
December 31, 2014

Three-month period ended
December 31, 2015

32,283

2,477(45,739)-(45,739)

-

5,844
4,839

2,030
(18,618)

283,710(21,460)

41,912(716)

336,305(38,764)

290,566
322,849(38,764)(36,287)

273,331
49,518322,849(38,120)
1,833(36,287)

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 (loss)
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests

44SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

(3) Condensed Interim Consolidated Statements of Changes in Equity
For the nine-month period ended December 31, 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 December 31, 2014

Commonstock
238,772

Capitalsurplus405,045

Retainedearnings
1,168,266

Treasurystock(51,492)--

579,446---

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

169,850

Total
1,930,441--

579,446

61,278640,724--

375,331375,33158,975434,306-

579,446-

375,331954,777

120,253

1,075,030--(47,547)--(47,547)(16,222)(63,769)--(36,678)-

36,678

-

-

-

-

-

(1,050)

2,798

-

1,748

-

1,748

-

-

-

-

-

-

1,423

1,423

-

(31,716)---(31,716)

7,363(24,353)

-

1,249

-

-

-

1,249

6,169

7,418

-

-

-

-

-

-

(1,161)(1,161)-(30,467)(85,275)

2,798

36,678(76,266)(2,428)(78,694)

238,772

374,578

1,662,437(48,694)581,859

2,808,952

1,017,766

3,826,718

45

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

For the nine-month period ended December 31, 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 December 31, 2015

Accumulated
othercomprehensive
income540,386

Total
2,846,306

Noncontrollinginterests
1,006,871--

428,972

82,130511,102--(69,007)(69,007)

3,341(65,666)-

428,972-(69,007)359,965

85,471

445,436--(47,261)--(47,261)(30,031)(77,292)

-

-

(6)

-

6

-

-

-

-

-

-

(118,575)-(118,575)

-

-

-

-

-

-

53,06753,067

-

-

-

-

-

-

(96,060)(96,060)-(127,251)---(127,251)(94,571)(221,822)-

14,617---

14,617-

14,617-(3,891)---(3,891)

5,518

1,627

-

3,022

-

-

-

3,022

(1,690)1,332-(113,503)

6(279,339)(163,767)(443,106)

238,772

261,342471,385

2,926,932

928,575

3,855,507

Commonstock
238,772

Capitalsurplus374,845

Retainedearnings
1,740,686

Treasurystock(48,383)--

428,972---(1,232) (117,343)(48,499) (117,343)
2,121,159(165,726)

46

Total equity
3,853,177

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

(4) Condensed Interim Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Net income
Depreciation and amortization
Gain from remeasurement relating to businesscombination
Finance cost
Income on equity method investments
Dilution gain from changes in equity interest
Other non-operating loss (income)
Income taxes
Increase in trade and other receivables
Increase in inventories
Increase (decrease) in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment, andintangible assets
Proceeds from sales of property, plant andequipment, and intangible 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 (increase) 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 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
47

Nine-month period ended
December 31, 2014

Nine-month period ended
December 31, 2015

640,724
793,658

511,102
1,016,496-(59,441)

264,168(12,061)(599,806)
18,502476,518(114,314)(175,093)
154,275
35,012

329,485(303,167)(14,654)(54,689)
403,573(30,175)(291,449)(5,829)(19,159)

1,481,583
3,950(298,017)(464,623)
76,534
799,427

1,482,093
8,086(348,612)(1,216,709)
641,988566,846(993,205)(1,092,761)

15,290146,603(205,230)
18,600(352,932)
19,550(18,794)

28,834-(63,070)(248,848)(71,308)

249,718

145,486(176,739)(1,359,208)(95,247)(1,334,845)(68,391)

46,231

1,725,939(598,581)

1,826,661(1,172,999)(48,127)(253,860)(33)(120,037)(47,255)(16,209)
3,660
951,003(47,021)(29,350)
20,602
270,227

93,995

9,030

485,217
1,963,490
2,448,707(488,742)
3,258,653
2,769,911

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015(5) Significant Doubt about Going-concern Assumption
For the nine-month period ended December 31, 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 Global Group Inc.

“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.

48

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 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. In line 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 nine-month period ended December 31, 2014 and the three-month period ended
December 31, 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 nine-month period ended December 31, 2014 and the three-month period
ended December 31, 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.

49

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

For the nine-month period ended December 31, 2014
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

Customers

2,253,820

2,683,437

304,527

830,496

6,072,280

236,763-

6,309,043

Intersegment

22,542

126,420

5,003

32,692

186,657

17,227(203,884)-

2,276,362

2,809,857

309,530

863,1886,258,937

253,990(203,884)

6,309,043

897,279

461,566

153,686

2,213

1,514,744

61,100(33,030)

1,542,814(322,541)(406,738)(12,439)(6,807)(748,525)(23,556)(1,111)(773,192)(18,751)(15,013)-

5,758(28,006)

25-(27,981)555,987

39,815

141,247

1,164

738,21337,569(34,141)

741,641

Reconciliations2

Consolidated

Net sales

Total
EBITDA3
Depreciation andamortization
Other operating income(loss)
Segment income(Operating income)Finance cost
Equity in income ofassociates
Dilution gain from changes
in equity interests(264,164)
12,061
599,806

Other non-operating loss

(18,458)

Income before income tax

1,070,886

For the nine-month period ended December 31, 2015
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

Customers

2,315,819

2,783,054

438,337

994,506

6,531,716

278,490-

6,810,206

Intersegment

26,171

144,688

6,387

55,482

232,728

13,648(246,376)-

2,341,990

2,927,742

444,724

1,049,988

6,764,444

292,138(246,376)

6,810,206

Reconciliations2

Consolidated

Net sales

Total
3

EBITDA
Depreciation andamortization
Gain from remeasurement
relating to businesscombination
Other operating loss
Segment income (loss)(Operating income (loss))

930,184

744,811

156,247

20,702

1,851,944

91,420(32,827)

1,910,537(331,866)(622,154)(22,010)(8,381)(984,411)(26,108)(1,249)(1,011,768)--

59,441-59,441--59,441-(63,169)-(13,633)(76,802)(6,086)-(82,888)598,318

59,488

193,678(1,312)

850,172

59,226(34,076)

Finance cost
Equity in income ofassociates
Dilution gain from changes
in equity interest

875,322(329,484)
303,167
14,65454,555

Other non-operating income
Income before income tax

918,214

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 each reportablesegment. 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. EBITDA= segment income and loss + depreciation and amortization – gain from remeasurement relating to business combination ±other operating income and loss
¥17,270 million of “Loss on disposal of property, plant and equipment” recognized as “Other operating loss” in the condensed interim
consolidated statements of income for the nine-month period ended December 31, 2015 is included in “EBITDA” in the Sprint segment
and therefore there is a difference between “Other operating loss” in the segment information and in the condensed interim consolidated
statements of income. The details are described in “Note 11. Other operating loss.”
4. Discontinued operations are not included. The details are described in “Note 15. Discontinued operations.”

50

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

For the three-month period ended December 31, 2014
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

Reconciliations2

Consolidated

Net sales
Customers

833,984

909,136

105,852

351,7392,200,711

86,467-2,287,178

Intersegment

13,779117,285

1,665

11,982

144,7115,800(150,511)

-

Total

847,763

1,026,421

107,517363,7212,345,422

92,267(150,511)

2,287,178

EBITDA3
Depreciation andamortization
Other operating income(loss)
Segment income (loss)(Operating income (loss))

283,213

123,456

52,982(6,194)453,457

27,056(14,840)

465,673(110,100)(145,355)(4,515)(2,220)(262,190)(8,154)(379)(270,723)(18,751)(2,882)-

3,378(18,255)--(18,255)

154,362(24,781)

48,467(5,036)173,012

18,902(15,219)

176,695

Finance cost
Equity in income ofassociates(92,918)

Other non-operating loss

(8,424)31,357

Income before income tax

106,710For the three-month period ended December 31, 2015
(Millions of yen)
Reportable segments
Domestic
Telecommunications

Sprint

Yahoo
Japan

Distribution

Total

Other1

Customers

822,347

915,526

193,627

365,919

2,297,419

88,985-2,386,404

Intersegment

11,57566,0382,329

17,341

97,283

4,449(101,732)

-

Total

833,922

981,564

195,956

383,260

2,394,702

93,434(101,732)

2,386,404

EBITDA3
Depreciation andamortization

285,515

236,033

51,86010,774584,182

22,296(11,989)594,489(113,157)(223,975)(9,077)(2,590)(348,799)(8,161)(385)(357,345)-(33,955)-(13,633)(47,588)--(47,588)

172,358(21,897)

42,783(5,449)187,795

14,135(12,374)

189,556

Reconciliations2

Consolidated

Net sales

Other operating loss
Segment income (loss)(Operating income (loss))
Finance cost
Equity in income ofassociates(113,816)

Other non-operating loss

(14,723)

38,581

Income before income tax

99,598Notes:
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 each reportablesegment. 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. EBITDA= segment income and loss + depreciation and amortization ± other operating income and loss
¥17,270 million of “Loss on disposal of property, plant and equipment” recognized as “Other operating loss” in the condensed interim
consolidated statements of income for the three-month period ended December 31, 2015 is included in “EBITDA” in the Sprint segment
and therefore there is a difference between “Other operating loss” in the segment information and in the condensed interim consolidated
statements of income. The details are described in “Note 11. Other operating loss.”
4. Discontinued operations are not included. The details are described in “Note 15. Discontinued operations.”

51

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

3. Business combinations
For the nine-month period ended December 31, 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 nine-month period ended December 31, 2015. This gain is presented as“Gain from remeasurement relating to business combination” in the condensed interim consolidated statements
of income.

52

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 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)
45,36544,75132,315
69,124
8,394
199,949

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

71,49534,586
106,081

Current liabilities
Non-current liabilities
Total liabilities
Net assets

B

93,868Non-controlling interests2
Goodwill3

C54,036
53,779A-(B-C)

Notes:
1. Adjustment of the provisional amount
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on theacquisition date. Allocation of the consideration transferred was completed during the three-month period ended
December 31, 2015. The details of the adjustments from the initial provisional amounts are as follows. Due to theadditional analysis on the fair value of ASKUL Corporation, intangible assets decreased by ¥2,820 million andnon-controlling interests decreased by ¥1,097 million. As a result, goodwill increased by ¥877 million.
2. 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.
3. 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 subsidiary53

31,291
31,291

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015(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 thenine-month period ended December 31, 2015, are ¥104,699 million and ¥1,003 million, respectively.
In addition, the above net income includes amortization expenses, which are related to intangible assets
recognized at the acquisition date, and other.
4. Handset sale-leaseback
In November 2015, Sprint entered into agreements (Handset Sale-Leaseback) to sell and leaseback certain leased
devices, with Mobile Leasing Solutions, LLC (MLS).
MLS was established for leasing business by SBLS HD US, Inc. (SBLS), a wholly-owned subsidiary of SoftBank
Group Corp. and JPLS HD US, Inc. (JPLS), a company formed by Japanese leasing companies. It is contractuallyagreed that significant management policy and operating decision of MLS require the unanimous consent of its boardof directors designated by SBLS and JPLS. Accordingly, the Company accounts for MLS under the equity method
as a joint venture.
Under this transaction, Sprint sold the devices and transferred the associated certain specified customer lease end
rights and obligations to MLS in exchange for a total amount of $1.3 billion, consisting of proceeds totaling $1.1
billion cash which was received in December 2015 and a deferred purchase price receivable of $0.1 billion, theremaining amount of the total proceeds, which will be settled at the end of the agreement. Simultaneously with thesale of the devices and transfer of certain specified customer lease end rights and obligations, MLS leased back eachdevice to Sprint pursuant to the Master Lease Agreement in exchange for monthly rental payments to be made by
Sprint to MLS. In addition, Brightstar has a contractual agreement with MLS to provide reverse logistics andremarketing services to MLS with respect to the devices that are returned to MLS. The terms and conditions of thetransaction are negotiated and determined based on the market price and the content of transaction.
Sprint derecognized devices from property, plant and equipment when they were sold to MLS. The $65 million(¥7,801 million) difference between the fair value and the carrying amount of the devices sold was recognized as“Other operating loss” in the condensed interim consolidated statements of income.
The proceeds received in December 2015 totaling $1.1 billion (¥137,593 million), was recognized as “Proceeds fromsales of property, plant and equipment, and intangible assets” in the condensed interim consolidated statements ofcash flows.
Outline of the transaction*

Note:
This chart only refers to major transactions and the relation between the Company and major parties, to describe outline of the transaction.

54

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

5. 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
December 31, 2015
339,148
172,408
57,162568,718

Note:
Withholding income tax of ¥293,489 million related to dividend within the group companies is included in tax
receivable as of December 31, 2015.

6. 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
December 31, 2015
264,966
3,193,140
564,752
107,118
199,472
21,2244,350,672

7. 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

55

As of
December 31, 2015

4,320,296
727,251

4,344,060
744,015

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

790,800
488,630132,237
113,026
67,36558,339102,161
6,840,633

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

8. 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
December 31, 2015

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

462,883
32,000582,582
483,859
389,401
51,5942,002,319

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

2,031,652
7,382,058
820,685
68,755
10,303,150(2) Components of (decrease) increase in short-term interest-bearing debt
The components of “(Decrease) increase in short-term interest-bearing debt, net” in the condensed interim
consolidated statements of cash flows are as follows:(Millions of yen)

Nine-month period ended Nine-month period ended
December 31, 2014
December 31, 2015
(68,391)
46,231

Net (decrease) increase of short-term borrowings(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)

Nine-month period ended Nine-month period ended
December 31, 2014
December 31, 2015
368,156
279,397
Proceeds from long-term borrowings
1,4
1,134,317
1,053,258
Proceeds from issuance of corporate bonds
312,225405,247
Proceeds from sale and leaseback of newly acquired equipment
Total
1,725,939
1,826,661

56

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

Notes:
1. Corporate bonds issued for the nine-month period ended December 31, 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

1st Unsecured SubordinatedCorporate Bond

Dec. 19, 2014

¥400,000 million

2.50%

Dec. 17, 2021

Dec. 19, 2014$300 million¥34,317 million

3.78%3

Dec. 17, 2019

Company name / Name of bonds
SoftBank Group Corp.

Sprint Communications, Inc.2
Export Development Canada
Facility (Tranche 3)

Notes:
2. Sprint Communications, Inc. is a subsidiary of Sprint.
3. The corporate bond has a floating interest rate and the interest rate stated above is as of December 31, 2015.
4. Corporate bonds issued for the nine-month period ended December 31, 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 million55.38%
2.98%6

July 30, 2022

USD-denominated Senior Notes
due 2025

July 28, 2015

$1,000 million¥124,120 million5

6.00%
3.44%6

July 30, 2025

Euro-denominated Senior Notes
due 2022

July 28, 2015

€500 million¥67,722 million5

4.00%
3.73%6

July 30, 2022

Euro-denominated Senior Notes
due 2025

July 28, 2015

€1,250 million¥169,306 million5

4.75%
4.25%6

July 30, 2025

Euro-denominated Senior Notes
due 2027

July 28, 2015

€500 million¥67,722 million5

5.25%
4.72%6

July 30, 2027

48th Unsecured Straight
Corporate Bond

Dec.10, 2015

¥370,000 million

2.13%

Dec. 9, 2022

Dec.15, 2015$250 million¥30,268 million

5.56%3

Dec.15, 2017

Company name / Name of bonds
SoftBank Group Corp.

Sprint Communications, Inc.2
Export Development Canada
Facility (Tranche 4)

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

57

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

(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)

Nine-month period ended Nine-month period ended
December 31, 2014
December 31, 2015
(270,611)(413,351)(63,446)(158,281)(222,227)(358,502)(200,000)(42,297)(42,865)(598,581)(1,172,999)

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

Notes:
1. Major Corporate bonds redeemed for the nine-month period ended December 31, 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 nine-month period ended December 31, 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

Jan. 20, 2011

$500 million¥60,535 million

4.08%5

Dec.15, 2015

9.50%

Dec.11, 2015

7.25%

Dec.11, 2015

SoftBank Group Corp.
32nd Unsecured Straight
Corporate Bond
Sprint Communications, Inc.4
Export Development Canada
Facility (Tranche 2)
Brightstar Corp.
9.50% senior notes due 2016

Nov. 30, 2010

7.25% senior notes due 2018

July 31, 2013$350 million¥42,375 million$250 million¥30,268 million

Notes:
4. Sprint Communications, Inc. is a subsidiary of Sprint.
5. The corporate bond has a floating interest rate and the interest rate stated above is at the time of redemption.

58

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

9. Foreign exchange rates
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 ofDecember 31, 2015
120.61(2) Average rate for the quarter
For the nine-month period ended December 31, 2014

U.S. dollars

Three-month period
endedJune 30, 2014
102.14Three-month period
ended
September 30, 2014
104.35(yen)
Three-month period
ended
December 31, 2014
114.39For the nine-month period ended December 31, 2015

U.S. dollars

Three-month period
endedJune 30, 2015
121.34Three-month period
ended
September 30, 2015
121.91(yen)
Three-month period
ended
December 31, 2015
121.07

10. Equity(1) Capital surplus
For the nine-month period ended December 31, 2015
The Company acquired additional 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 ofDecember 31, 2015

Available-for-sale financial assets

14,524

31,138Cash flow hedges
Exchange differences on translating
foreign operations(7,345)(41,413)533,207481,660

540,386

471,385

Total

59

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

11. Other operating loss
The components of other operating loss are as follows:(Millions of yen)

Nine-month period ended
December 31, 2014

Nine-month period ended
December 31, 2015

(18,751)-(29,509)(23,556)(10,492)(21,682)-(17,270)

18,726
6,262(10,403)(7,528)

5,758
25(27,981)(13,633)(6,086)(100,158)

Domestic Telecommunications segment
Provision for unprofitable contract1
Sprint segment
Severance costs associated with reduction inwork force of Sprint
Legal reserves
Loss on disposal of property, plant andequipment2
Impairment loss on non-current assets3
Gain on partial pension settlement4
Other
Distribution segment
Impairment loss on non-current assets5
Other
Other
Total

Notes:
1. Loss was recognized due to the provision made by SoftBank Corp. for the excess of expected future cost of delivery fora contracted communication service over its contracted amount.
2. ¥9,469 million of loss on disposal that resulted from the write-off of leased devices associated with lease cancellations
prior to the scheduled customer lease terms where customers did not return the devices to Sprint, and ¥7,801 million of
net loss recognized upon the sale of devices to Mobile Leasing Solutions, LLC under the Handset Sale-Leaseback
transaction, which represented the difference between the fair value and net book value of the devices sold. Regarding
Handset Sale-Leaseback transaction, the details are described in “Note 4. Handset sale-leaseback.”
3. 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.
4. Sprint made an amendment associated with the defined benefit pension plan to offer certain terminated participants,
who had not begun to receive plan benefits, the opportunity to receive their benefits as an immediate lump sum
distribution. This is the gain arising from the settlement.
5. Cash-generating units of the Distribution segment are composed of five regions, Brightstar Global Group Inc.’s US &Canada, Latin America, Asia & Oceania, SoftBank Commerce& Service Corp., and Europe & Africa from thenine-month period ended December 31, 2015. Of these cash-generating units, as a result of reviewing the businessplan of Brightstar Global Group Inc.’s Latin America region, the recoverable amount became negative and therefore thecarrying amount related to the cash-generating unit was reduced to zero. Impairment loss on property, plant andequipment was ¥8,070 million and impairment loss on intangible assets was ¥5,563 million. Value in use was used as
the recoverable amount and calculated by discounting management approved estimated future cashflow plan by 22.11%,
weighted average capital cost before tax.
Goodwill of Brightstar Global Group Inc. is allocated to entire Brightstar Global Group Inc. (a group of cash-generating
units) which bundles five cash-generating units. As a result of the impairment test on entire Brightstar Global Group
Inc., subsequent to the recognition of the impairment loss in Brightstar Global Group Inc.’s Latin America region for
the nine-month period ended December 31, 2015, the recoverable amount exceeded the carrying amount, and therefore
the impairment loss on the goodwill allocated to entire Brightstar Global Group Inc. is not recognized.

60

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 2015

12. Finance cost
The components of finance cost are as follows:(Millions of yen)

Nine-month period ended
December 31, 2014

Nine-month period ended
December 31, 2015

(264,164)(329,484)

Interest expense

13. Dilution gain from changes in equity interest
For the nine-month period ended December 31, 2014
The Company recorded dilution gain from changes in equity interest of ¥599,668 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.

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

Foreign exchange gain (loss)1
Impairment loss on securities2
Impairment loss on equity method associates3
Gain from remeasurement relating to applying
equity method4
Gain from financial assets at FVTPL5
Provision of allowance for doubtful accounts2
Other
Total

Nine-month period ended
December 31, 2014
4,233
(7,656)(32,339)

Nine-month period ended
December 31, 2015
(29,589)(21,572)(1,333)

6,249

-

4,986
-

108,426(20,534)

6,069(18,458)

19,15754,555

Notes:
1. The value of Argentine peso has decreased against US dollars in December 2015 due to change in foreign exchange policyby the Argentine Government. As a result, foreign exchange loss of ¥18,614 million associated to dollar-denominatedmonetary items, such as cash and cash equivalents, account receivables, and account payables, held by Argentine
subsidiaries were recorded for the nine-month period ended December 31, 2015.
2. 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 nine-month period ended
December 31, 2015.
3. The Company recorded impairment loss of ¥32,339 million with regard to the equity method associate for the nine-month
period ended December 31, 2014 as the fair value had been declining for a prolonged period and the carrying amount was
reduced to the recoverable amount.
4. 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.
5. Gain or loss arising from financial assets at FVTPL comprises mainly changes in fair value of preferred stock investment
including embedded derivatives, designated as financial assets at FVTPL.

61

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 201515. 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.
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 nine-month period ended December 31, 2014, the three-month period
ended December 31, 2014, and from April 1, 2015 to June 1, 2015 are presented as discontinued operations separatelyfrom 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 discontinued
operations
Income taxes
Income after income tax from discontinued operations
Loss relating to loss of control in discontinued
operations
Deferred tax expenses for investment temporary
differences
Net income (loss) from discontinued operations

Nine-month period ended
December 31, 2014
122,124(75,768)

Nine-month period ended
December 31, 2015
26,604(17,404)

46,356(20,585)
25,771

9,200(3,568)
5,632-(12,739)-

139

25,771(6,968)Nine-month period ended
December 31, 2014
52,898(40,545)(178)
12,175Nine-month period ended
December 31, 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 financing activities
Total

62

SoftBank Group Corp. Consolidated Financial Report
For the nine-month period ended December 31, 201516. 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.
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 and income taxes refund
For the nine-month period ended December 31, 2015
Payment of withholding income tax related to dividends within the group companies of ¥904,688 million is
included in “Income taxes paid,” and refund of the withholding income tax of ¥611,199 million is included in“Income taxes refund,” respectively. The withholding income tax of ¥293,489 million included in “Income
taxes paid” is expected to be refunded by the end of July 2016.
(4) Proceeds from sales of property, plant and equipment, and intangible assets
For the nine-month period ended December 31, 2015
Proceeds of ¥137,593 million which Sprint received from Mobile Leasing Solutions, LLC through Handset
Sale-Leaseback transaction in December 2015 are included in “Proceeds from sales of property, plant andequipment, and intangible assets.” The details are described in “Note 4. Handset sale-leaseback.”(5) Decrease from loss of control over subsidiaries
For the nine-month period ended December 31, 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.
(6) Payments for purchase of subsidiaries’ equity from non-controlling interests
For the nine-month period ended December 31, 2015
“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.

63