Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CFO

We Will Maintain Our Active Investment Approach toFurther Grow NAV
Fiscal 2023 in review
Throughout its history of over 40 years, SBG

Avoiding change is
our greatest risk

has consistently adapted its core business toWe have consistently evolved our businessthe changing times. Our current focus is on

over time while remaining true to ourour investment business. Our value as anfounding philosophy: Information

investment company is best measured by ourRevolution—Happiness for everyone. As aNet Asset Value (NAV). At the end of Marchleader in the cutting-edge technology field,

2024, our NAV had grown to ¥27.8 trillion,

avoiding change is our greatest risk. Fromalmost double the value at the end of theour founding to our public offering in 1994

previous fiscal year. This remarkable value(over-the-counter market), when we werecreation was largely driven by Arm, which

listed, our main business was software

went public in September 2023 and remains

wholesaling. Since then, our core businesscentral to our strategy in the emerging AI

has undergone significant changes whileera. We would like our stakeholders to lookgrowing steadily. Today, the Information

forward to our ongoing evolution with Arm,

Revolution means something very different

as we continue to enhance corporate value.

than it did 40 years ago when Mr. Son

See page 20 for details of NAV.

(Masayoshi Son, Representative Director,Corporate Officer, Chairman & CEO)founded the company. Back around 2000,
when everyone was just starting to get theirown communication devices, we foresaw theinevitable AI revolution and predicted that it
would be unprecedented in scale. WithYoshimitsu Goto
Board Director, Corporate Officer,Senior Vice President, CFO & CISO
Head of Finance Unit, Head of Administration Unit

considerable confidence in this belief, wehave made our decisions accordingly. SBG isessentially a revolutionary force in the field ofinformation and communication. Therefore,
our most important risk mitigation strategy iscontinuous transformation. Change makes

SoftBank Group Report 202416

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFOGrowth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CFO

us stronger and enhances our value, whilelater, the fact that the deal did not go

in the future. Investors have variousMr. Son has stated, “AI will redefine all

stagnation poses a risk. This mindset has

through has turned out to be a significant

expectations for Arm’s future, and as theindustries.” In this evolving landscape, Arm,brought us to where we are today.

benefit, as it ultimately preserved a valuable

largest shareholder, we are in the bestwith its dominant market share in key AI chipasset for SBG.

position to understand and appreciate thesedesigns, will continue to see the expandedexpectations.

shipments of Arm-based chips and grow as a

NVIDIA is a company with significant

Supporting Arm’s successful
IPO

growth potential, but even for them, ArmThe process leading to the IPO

has become an indispensable part of their

which held 24.99% of Arm’s shares,

companies, we can generate synergies thatstrategy. Having Arm, which is positioned atproposed that SBG purchase these shares.

will lead to the creation of new businesses,

Looking back at fiscal 2023, Arm’s IPO on

the top of the semiconductor supply chain,

Although some stakeholders questioned theindustries, and ecosystems. Arm is at thethe Nasdaq Global Select Market in

as a core part of our portfolio will accelerateagreed acquisition price of approximately

heart of this transformation, and we aim to

September 2023 was undoubtedly theour AI strategy. If the NVIDIA deal had gone

¥2.3 trillion that was ultimately about 20%

continue to be a hub that connects Arm tohighlight. Amid the economic uncertaintythrough, the increase in NVIDIA’s share pricehigher than Arm’s IPO price, we consideredbusinesses and industries around the world,

caused by the COVID-19 pandemic in 2020,

would have boosted our NAV beyond its

the price reasonable, as we believe in Arm’s

while also leading the way in changing

we made the strategic decision to prioritize acurrent level. However, looking out 20 years,

future growth potential more than anyone

lifestyles through the Information Revolution.

defensive strategy by monetizing ¥4.5 trillion

I believe the value of having Arm in ourand agreed to the deal. As we expected,

I personally look forward to growing

worth of assets. This decision ultimately led

portfolio might well surpass the potential

Arm’s value has steadily increased since thetogether with Arm and delivering for ourto the successful monetization of ¥5.6 trillion

gains from the NVIDIA deal. We feel that thisIPO, and we believe that those who werestakeholders by enhancing investment

in just six months. These assets were allhas become a strong tailwind for us.

initially skeptical are now pleased with ourperformance.

highly valuable, but we believed it wasnecessary to proceed with the monetizationin order to safeguard our future.

Prior to Arm’s IPO, SoftBank Vision Fund 1,company. By collaborating with other Groupdecision. Meanwhile, the deal was also

Steady rise in Arm’s share pricesince the IPO

successful from SoftBank Vision Fund 1’s
price than the IPO price.

Arm was also part of this monetization

Arm priced its IPO price at $51 per ADS,plan. Considering the future potential ofwhich I believe is a reasonable level. While

Arm and our overall AI strategy, we originallythe valuation of a company naturally

planned to sell Arm shares to NVIDIA in aperspective, as it sold its shares at a higher

AI investment strategies andchallenges
In fiscal 2023, we doubled down on ourbelief that AI will redefine all industries andincorporates its future value, I question theCreating a new ecosystem withArm

stock and cash transaction. Although theinclusion of uncertainty factors in potential

As a public traded company, Arm will detailwhere AI can significantly enhance people’s

deal ultimately did not receive regulatory

future outcomes, as this can lead toits own future growth strategies andlives, such as logistics, robotics, andapproval and did not go through, we stillovervaluation. Therefore, I believe that theambitions. We are confident that the world’s

autonomous driving. On the other hand,

believe that our decision at that uncertain

IPO price reasonably reflected the value ofleading companies will increasingly leveragelarge corporations like SBG that are leading

time was the right one. Now, a few years

Arm’s strategies that are likely to be realized

AI to advance in their respective fields. As

the AI world, including hyperscalers, nowSoftBank Group Report 2024

sought investment opportunities in areas17

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CFO

face greater challenges. While generative AI

Key indicators

March 31, 2023

March 31, 2024

¥14.1tn¥27.8tn

provides a road map for a rapid technologicaland theoretical growth trajectory, existingdata centers are unable to provide theNAV(Net Asset Value)immense computing power required topower the actual services. In addition, we areentering an era that will require an
unprecedented amount of electricity, far

LTV(Loan to Value)

beyond what is available on a daily basis. To
keep the AI revolution moving forward, weCash position*1

are committed to addressing thesechallenges and believe we are at the starting
line of this critical endeavor.

Review of financial strategies
for fiscal 2023($105.8bn)($183.6,bn)

11.0 %¥5.1tn

8.4 %¥4.7tn*1	Cash and cash equivalents + Short-term investments recorded as current assets + Undrawn commitment line + Bond investments.
On an SBG stand-alone basis. Excludes SB Northstar but includes its cash and cash equivalents and bond investments.

Japan’s household financial assets(Bank of Japan’s flow of funds Accounts Statistics)
Others ¥66 tn
Insurance, pension,and standardized
guarantees¥537tnTotal

Investment
trusts¥2,141tn¥106 tn

As of Dec 31, 2023

Currency anddeposits¥1,127tn

Equity, etc.

¥276 tn
Debt securities, etc. ¥28 tn
incl. Corporate bonds ¥8.0 tn

our NAV doubled over the year to a record

commitment to financial security wasestimated ¥2.1 quadrillion in household

high level, while maintaining strong financial

reinforced by our offensive approach.

financial assets*3 is held in cash andOffense leads to a stronger
defensediscipline. Although our net interest-bearing

deposits, while less than 20% is invested inAs an investment company, we are oftentrillion, our Loan to Value (LTV) improved by*2 Consolidated net interest-bearing debt – Net interest-bearing
debt of self-financing entities, etc. – Other adjustments.
Bank deposits and cash position at PayPay Bank Corporation
are excluded.

seen as being all about offense. However, as

2.6 ppt to 8.4%, and we maintained aMr. Son himself has said, “I’m good at

consistently safe cash position* of ¥4.7

offense, but my greatest strength is retreat.”trillion. To enhance our value as anFundraising on track

This illustrates that our strength lies in ourinvestment company, we need to makeIn terms of fundraising, we successfully

that the Japanese bond market is about 20

ability to halt offensive moves in order toinvestments that boost NAV. Therefore, incompleted bond issuances of ¥550 billion toyears behind global markets. For twostrengthen our defense. In fiscal 2023, wefiscal 2023, we invested nearly $4 billion

retail markets in March 2024 and ¥100

decades, I have been dedicated to offering

shifted from the defense-first approach we

without deteriorating our financial position,

billion to wholesale markets in April 2024.

products that enhance investment

adopted in fiscal 2022 to a balanced

maintaining liquidity at a similar level andDue to strong demand, we issued anotheropportunities for Japanese retail investors.

approach that integrates both offense andstrengthening our financial security. This was¥550 billion bond to retail markets in June

With our bond issue, JCR upgraded ourdefense. As a result of this shift in strategy,

an ideal financial outcome where our2024. Currently, about half of Japan’s

SoftBank Group Report 2024

debt*2 increased by ¥0.8 trillion to ¥2.6

See pages 20 -21 for details of NAV and LTV.

1riskier assets such as equities and mutualfunds. I have long believed that the Japanesemarket lacks sufficient middle-risk/middlereturn products to bridge the gap between
cash deposits and risk assets. I also believe

rating by one notch from A- to A (stable) in18

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CFO

Historical credit ratings of SBG (As of the date of the publication of this Annual Report)

A+

Acquisition ofAcquisition
Japan Telecom of Vodafone KK

Acquisitionof Sprint

Acquisition Listingof Arm of SoftBankListingof ArmJCRAFirst
upgrade in(Stable) 12 years​A
ABBB+BBB

S&P

BBB-Fiscal 2024 financial strategy

FinancialPrinciples

BB+BB+BB(Stable)

BBB+

Financial management
synchronized withinvestment strategy

Financial
Philosophy

FinancialStrategy∙ Adhering to financial policy∙ Flexibly respond to all environmental changes∙ Building trust with each stakeholder（Pursuing the optimal balance between shareholder returns
and financial improvement)

Prioritizing growth investments forfuture NAV expansion
1. Effective utilization of ample cash position2. Active use of non-recourse financing to support strategic investments
3. Enhanced monitoring of portfolio → monetization and reinvestment'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 (CY)

April 2024, and S&P upgraded by one notch

Of course, it is crucial to calmly analyze

increasing our future NAV while maintaining

Financial strategies for fiscal2024

significantly fluctuating external factors, suchfinancial stability and continuing anas the economic and market conditions, andaggressive investment stance.

their recognition of our activities since

Financial strategies should not change

to create specific action plans. The ongoing

becoming an investment company and ourfrequently. The key is to align our financial

and unfortunate conflicts around the world,

stable financial management. We havemanagement with our investment strategy,

rising diplomatic tensions, and the numerous

consistently maintained and adhered to ourwhich is at the heart of our financial

elections in various countries and regions infinancial policies, and we believe that thisphilosophy. While we aim to maximize

fiscal 2024 will influence the politicaldisciplined financial management has now

corporate value, we must always adhere tolandscape. Despite these variables, thebeen recognized.

our financial policies. In other words,

current market environment suggests that it*3 Bank of Japan, Flow of Funds Accounts

maintaining a firm financial policy enhancesis the right time to invest. In fiscal 2024, wemanagerial flexibility.

will prioritize growth investments aimed atfrom BB to BB+ (stable) in May 2024. This
was JCR’s first upgrade in 12 years, reflecting

SoftBank Group Report 2024

19