ANN UA L R E P O RT

2019

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Disclaimers• This annual report provides relevant information about the Group anddoes not constitute or form any solicitation of investment including any
offer to buy or subscribe for any securities in any jurisdiction.
• This annual report contains forward-looking statements, beliefs or opinions
regarding the Group, such as statements about the Group’s futurebusiness, future position and results of operations, including estimates,
forecasts, targets and plans for the Group. Without limitation, forwardlooking statements often include the words such as “targets”, “plans”,“believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “will”,“may”, “should”, “would”, “could” “anticipates”, “estimates”, “projects” or words or terms of similar substance or the negative thereof. Any
forward-looking statements in this annual report are based on the current
assumptions and beliefs of the Group in light of the information currently
available to it as of the date hereof. Such forward-looking statements do
not represent any guarantee by any member of the Group or its management of future performance and involve known and unknown risks,
uncertainties and other factors, including but not limited to: the economic
circumstances surrounding the Group’s business, including general
economic conditions in Japan, the United States and China; fluctuations inforeign exchange rates; unforeseen situations involving key members of
the Group management; the Group’s ability to respond to changes intechnology and business models; competition and competitive factors;
telecommunications network capacity; dependence on management
resources of other companies; risks relating to the renewable energy
business; information leaks and security; service disruptions or decline inquality due to human error and other factors; natural disasters, accidents
and other unpredictable events; factors affecting our fund procurement
and leasing; factors affecting our investment activities; factors affecting
SoftBank Vision Fund and Delta Fund; requirements to provide support for
subsidiaries and others; country risk; changes in law, regulation and legal
systems; changes in accounting and taxation systems; national security
policy in the U.S. and elsewhere; regulations relating to health risks
associated with electromagnetic waves; issues surrounding intellectual
property; litigation; administrative sanctions and other orders; issues
related to the proposed merger of Sprint and T-Mobile; and other factors,
any of which may cause the Group’s actual results, performance, achievements or financial position to be materially different from any future
results, performance, achievements or financial position expressed or
implied by such forward-looking statements. For more information onthese and other factors which may affect the Group’s results, performance,
achievements, or financial position, see “Risk Factors” starting on page 75.
None of the Group nor our management gives any assurances that the
expectations expressed in these forward-looking statements will turn out

Growth Strategy

Management Organization

to be correct, and actual results, performance or achievements could
materially differ from expectations. Persons viewing this annual report
should not place undue reliance on forward-looking statements. We
undertake no obligation to update any of the forward-looking statements
contained in this annual report or any other forward-looking statements
we may make. Past performance is not an indicator of future results andthe results of the Group in this annual report may not be indicative of, andare not an estimate, forecast or projection of our future results.
• We do not guarantee the accuracy of information in this report regarding
companies (including, but not limited to, those in which SoftBank Vision
Fund has invested) other than the Group which has been quoted frompublic and other sources. For disclaimers about information regarding
SoftBank Vision Fund and its fund manager, SBIA, see “Disclaimers about
information regarding SoftBank Vision Fund and its fund manager, SBIA”(https://cdn.group.softbank/en/corp/set/data/irinfo/financials/annual_reports/pdf/svf_disclaimer.pdf) on our website.

Financial Section

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Contents
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SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

006

Corporate Information

Table of Contents
SoftBank Group Corp.

ANNUAL REPORT 2019
Towards the AI Era P.001

CEO Message
P.002

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

006

Essential Information

Table of Contents

P.006

007 Corporate Philosophy

Towards the AI Era P.001

008 Transformation of the SoftBank Group
014 Consolidated Financial Highlights
Essential Information P.006
015 Summary of Segment Information
007 Corporate Philosophy

CEO Message
P.002

United by a Common Vision
United by a to
CommonVisionto Bring Happiness
Everyone

Adoption of IFRSs• The Company has prepared the consolidated financial statements inaccordance with the International Financial Reporting Standards (IFRS)
from the three-month period ended June 30, 2013 (the first quarter of the
fiscal year ended March 31, 2014). The date of transition to IFRS was April
1, 2012. The financial data for the year ended March 31, 2013 has also
been presented based on IFRS.

Corporate Information

008 Transformation of the SoftBank Group

Growth Strategy

014 Consolidated Financial Highlights

P.016

015 Summary of Segment Information

017 Growth Strategy of the SoftBank Group
Cluster of No.1 AI Strategy
Growth Strategy —P.016
017 Growth Strategy
the SoftBank Group018 ofInvestment
Strategy of SoftBank Vision Fundto Bring Happiness to Everyone— Cluster of No.1 AI Strategy

020 SoftBank Vision Fund in Focus

018 Investment Strategy of SoftBank Vision Fund

025 FundPortfolio
020 SoftBank Visionin Focus Companies of SoftBank Vision Fund
025 Portfolio Companiesof SoftBank
VisionFund
026 Arm
Business
Strategy
026 Arm Business Strategy

Management
Organization
Management
Organization P.028
Chairman & CEO, SoftBank Group Corp.

Chairman & CEO, SoftBank Group Corp.

Masayoshi Son

Masayoshi Son
Investment Strategy of
SoftBank Vision Fund
Investment Strategy of
P.018
SoftBank Vision Fund
P.018

Arm Business Strategy
P.026
Arm Business
Strategy
P.026

Financial Strategy
P.029
Financial
Strategy
P.029

029 Financial Strategy
029

P.028

Financial Strategy

031 Our Approach to Shareholder Value

031 Our Approach to Shareholder Value

032 Corporate Governance032an External
Corporate
Governance
035 Message from
Board Director
036 Board Directors
035andMessage from an External Board Director
Audit & Supervisory Board Members
040 Compliance036

Board Directors and

042 Risk Management Audit & Supervisory Board Members
043 Initiatives for
Sustainability
040
Compliance

042 Risk Management
Financial Section P.045
043 Initiatives
for Sustainability
046 Graphs: Consolidated
Financial Data
049 Eleven-year Consolidated Financial Data

Financial Section

051 Management’s Discussion and Analysis ofResults of Operations and Financial Position

P.045

082 Consolidated
Financial
Statements
046
Graphs:Consolidated Financial Data
090 Notes to Consolidated Financial Statements

049 Eleven-year Consolidated Financial Data

204 Independent Auditor’s Report

Definition of Terms• “Fiscal 2018” refers to the fiscal year ended March 31, 2019, and otherfiscal years are referred to in a corresponding manner in this annual report.
“FYE” denotes the fiscal year-end. For example, “FYE2018” denotes
March 31, 2019, the last day of fiscal 2018.

Company Names• Unless specifically stated otherwise, “SBG” refers to SoftBank Group Corp.
and “the Company” refers to SBG and its subsidiaries. See page 91 for theabbreviations of subsidiary and associate company names.

Board Director, Executive Vice President, SoftBank Group Corp.
CEO, SB Investment Advisers (UK) Limited

Board Director, SoftBank Group Corp.
CEO, Arm Limited

Senior Vice President, CFO & CISO, SoftBank Group Corp.
(Head of Finance Unit, Head of Administration Unit)

Rajeev Misra

Simon Segars

Yoshimitsu Goto

206 Major Subsidiaries
Associates
082 and
Consolidated
Financial Statements
209 Corporate Data

090 Notes to Consolidated Financial Statements

210 Stock Information

204 Independent Auditor’s Report

Board Director, Executive Vice President, SoftBank Group Corp.
CEO, SB Investment Advisers (UK) Limited

Board Director, SoftBank Group Corp.
CEO, Arm Limited

Senior Vice President, CFO & CISO, SoftBank Group Corp.
(Head of Finance Unit, Head of Administration Unit)

Rajeev Misra

Simon Segars

Yoshimitsu Goto

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Regarding Trademarks and Logos• Names of companies, products and services that appear in this annual report
are trademarks or registered trademarks of their respective companies.
• This annual report includes logos of third parties which do not belong to
the Group, and the appearances of such logos in this annual report do notindicate any current or future business or other relationships between theGroup and such third parties.

051 Management’s Discussion and Analysis ofResults ofOperations and Financial Position
P.205
Corporate Information

Link to external website

Corporate Information

P.205

206 Major Subsidiaries and Associates
209 Corporate Data
210 Stock Information

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information“AI will be the largest revolution
in human history.”

001

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

002

CEO Message

United by a Common Vision
to Bring Happiness to Everyone
Around the time when I first founded the SoftBank Group, I told my only twopart-time employees, “Eventually, I want to count our net sales in trillions ofyen.” I don’t know whether they found it all too preposterous, or were just fed
up, but both of them soon quit. Later in fiscal 2018, nearly 40 years since ourfounding, our operating income, not to mention net sales, topped ¥2 trillion
and net income*1 exceeded ¥1 trillion for the third year in a row. Our market
capitalization is now over ¥10 trillion.*2 Our net sales, profits, and market capitalization can indeed all be measured in trillions of yen.
However, there is something far more important than those numbers. That is
to make many people around the world even a little happier through the Information Revolution. Nothing would be more personally gratifying than contributing to people’s happiness in some way, and even slightly sharing in it. To that
end, via SoftBank Vision Fund we have brought together like-minded partners
from around the globe to form and support an entrepreneurial AI group. I also
regard you, our shareholders, as like-minded partners who share the same aspirations. Together, we are working to resolve a variety of challenges for the benefit of humanity. Thank you for your support as we continue to move forward,
inspired by our belief in the power of technology to build a more connected,
efficient, and joyful world, as expressed by our corporate philosophy: “Information Revolution — Happiness for Everyone.”

Chairman & CEO*1 Net income attributable to owners of the parent*2 As of June 18, 2019

Masayoshi Son

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

003

CEO Message

Aiming to Orchestrate the AI Revolution
Pioneering entrepreneurs of the Industrial Revolution

The role of the conductor

We are often asked, “What is the SoftBank Group?” The answer to that fundamental

We want to be the conductor of the AI Revolution — a maestro of the orchestra com-question starts with a historical look back at the Industrial Revolution, which began inprising AI entrepreneurs. As a child, I was puzzled by the role of a conductor who stood

the U.K. in the latter half of the 18th century. Driven by the development of the steam

in the center, directing an entire orchestra with a baton without playing a single instru-

engine, the shift gained further momentum in the U.S. in the 19th century. A number ofment. Later in life, I came to understand that conductors do not play any instruments,

entrepreneurs put their hearts and souls into the Industrial Revolution in the U.S. andbut it could be said that they play the entire orchestra. Even if the musical composition

moved it forward. Among the most notable were Thomas Edison, who established theand the orchestra are the same, the music sounds completely different depending onelectricity supply system; Henry Ford, who was the first to commoditize automobiles;

the conductor. To apply this analogy to the SoftBank Group, each entrepreneur is com-

John D. Rockefeller, who provided stable supplies of oil; and J.P. Morgan, who financiallyparable to the player of an instrument. We aim to take the helm of a group of compa-

supported these and many other similar activities. The Industrial Revolution that theynies led by top AI entrepreneurs from all different fields, much like a preeminent orches-

drove transformed industries, societies, and the lifestyles of people all over the world.

tra made up of virtuosos on scores of instruments, and help them harmonize, while
creating additional value along the way. This vision underlies the transformation of

AI entrepreneurs will lead the next chapter of
the Information Revolution
We are now in the midst of the Information Revolution, which is even more transformative than the Industrial Revolution. After its emergence, the Internet quickly became an
indispensable part of people’s lives. Internet traffic has surged roughly a million-fold overthe past 25 years. That said, we believe that the Internet has revolutionized two industries only, namely, advertising and retail. As the steam engine, and later oil and electricity, drove the Industrial Revolution, artificial intelligence (AI) will undoubtedly drive theshift to the next chapter of the Information Revolution. We are on the cusp of the AI
Revolution, which is poised to redefine all industries — including education, health care,real estate, and finance as well as the advertising and retail sectors. Our current AI-savvy
entrepreneurs will follow in the footsteps of their Industrial Revolution forebears, putting their hearts and souls into the AI Revolution and driving it forward.

SoftBank Group Corp. into a strategic holding company, following the IPO of our domestic telecommunications subsidiary in December 2018.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

004

CEO Message

Creating an ecosystem that will evolve for 300 years

Dreaming big makes the impossible possible

The cutting-edge field in the Information Revolution has shifted from personal comput-

Following the example of Ryoma Sakamoto (1836–1867), a leader who lived during theers to the Internet, then to broadband, and later to smartphones, which occurs seem-end of the tumultuous Edo period in Japan whom I have long admired, I hope to turn

ingly every dozen year or so. Since the founding of the SoftBank Group in 1981, we

my vision into reality. To achieve that, we must at times be bold — setting goals thathave been at the forefront of those shifts, adapting our business model accordingly.

everyone thinks are unachievable. For example, at the Annual General Meeting of

After starting off as a distributor of packaged software for PCs, we launched Yahoo!

Shareholders held in June 2004, at a time when we reported a huge loss from ourJAPAN during the dawn of the Internet era and were among the first to enter the fixed-

fixed-line broadband business, I, at the age of 46, spoke about my vision in these words:

line broadband market, driving the widespread adoption of mobile broadband and“You may think I am just dreaming, but please hear me out. I want the Group to growsmartphones in Japan.

to such a scale that we count net sales in trillions of yen by my forties, and profits inMore recently, as AI emerged as the next driver of the Information Revolution, we

trillions by my sixties. My ambitions are that big.” We suffered a net loss of over ¥100

launched SoftBank Vision Fund (the “Vision Fund”) to capture related growth opportu-

billion in fiscal 2003. Guess what happened 15 years later? We posted net income*1 ofnities. The Vision Fund is an unconventional venture capitalist in that, instead of target-

over ¥1 trillion over the three consecutive years through fiscal 2018.

ing start-ups, it focuses on making large-scale investments in actual or likely unicorns

Subsequently, we announced “SoftBank’s Next 30-Year Vision” in 2010, which marked

that typically lead their respective sectors. On top of those investments, we seek toour 30th anniversary. In that vision—a statement of what the Group aimed to achieve

foster both synergies as appropriate among the Vision Fund’s portfolio companies andover the next 30 years—we said that we wanted to become a corporate group that pro-collaboration with existing group companies as well. Although the Vision Fund has only

vides the most desired technologies and services to people around the world. I was ambi-

been in operation for about two years, we are extremely satisfied with its performance.

tious with that vision as well, asserting that we would probably “rank among the world’s

The Vienna Philharmonic Orchestra, established in 1842, has continued to play beau-

top 10 in terms of market capitalization in 2040,” assuming “market capitalization oftiful music for more than 150 years, even though its conductors and performers have¥200 trillion to justify this.” To lift our market capitalization from ¥2.7 trillion at the timechanged throughout its long history. This tradition is likely be sustained for anotherto ¥200 trillion, we would have to increase it by an average of 15% per annum. We

century or two. Similarly, we want to create an ecosystem that will continue to grow forsucceeded, raising it by an average of 16% annually during the past nine years.

300 years. To come back to our opening question, “What is the SoftBank Group?”, theDreaming big can bear fruit. By voicing such lofty ambitions, I hunkered down withanswer is that we are building an ecosystem consisting of a group of entrepreneurial

the organization and worked hard, determined that we would “never give up until wecompanies with new technologies and business models. In addition, we are the linchpin

achieve our goals.” Even though we were told many times that we would go bankrupt,of the so-called “Cluster of No. 1 Strategy” that enables the Group to continue to grow

we have made good on our words. That is why I am now talking about raising SoftBankeven if the management, including myself eventually, and companies consisting of theGroup Corp.’s shareholder value dramatically from ¥22 trillion (as of June 18 2019) inGroup change over time.

the next couple of decades.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

CEO Message

Management Organization

Financial Section

See page 17 for more details on the “Cluster of No. 1 Strategy” and “Cluster of No. 1 AI Strategy”.
See page 31 for more details on the shareholder value.

Information Revolution — Happiness for Everyone
Of course, our earnings results, market capitalization, and shareholder value mentioned
above are important. However, money is not my end goal. The SoftBank Group’s establishment is deeply rooted in our corporate philosophy that technology will bring about ahappier and more fulfilling future for all. AI should be able to provide solutions to problems that humanity has been unable to solve to date. Our portfolio companies aredeveloping technologies for this purpose. For example, the proliferation of autonomous
cars should eliminate traffic accidents and the early detection and treatment of diseases
should enable people to live longer and healthier lives. The SoftBank Group’s corporate
philosophy of “Information Revolution — Happiness for Everyone” comes with the wish
that people around the world will lead happier, more fulfilling lives through the technology-empowered services and products we provide. That belief has propelled us since ourfoundation, and it remains the enduring answer to who we are today and tomorrow.

July 2019
Masayoshi Son
Chairman & CEO

Corporate Information

005

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

006

Corporate Information

Table of Contents
Towards the AI Era P.001

CEO Message
P.002

Essential Information

P.006

007 Corporate Philosophy
008 Transformation of the SoftBank Group
014 Consolidated Financial Highlights
015 Summary of Segment Information

United by a Common Vision
to Bring Happiness to Everyone

Growth Strategy

P.016

017 Growth Strategy of the SoftBank Group— Cluster of No.1 AI Strategy
018 Investment Strategy of SoftBank Vision Fund
020 SoftBank Vision Fund in Focus
025 Portfolio Companies of SoftBank Vision Fund
026 Arm Business Strategy

Management Organization
Chairman & CEO, SoftBank Group Corp.

Masayoshi Son

P.028

029 Financial Strategy
031 Our Approach to Shareholder Value
032 Corporate Governance
035 Message from an External Board Director

Investment Strategy of
SoftBank Vision Fund
P.018

Arm Business Strategy
P.026

Financial Strategy
P.029

036 Board Directors andAudit & Supervisory Board Members
040 Compliance
042 Risk Management043 Initiatives for Sustainability

Financial Section

P.045

046 Graphs: Consolidated Financial Data
049 Eleven-year Consolidated Financial Data
051 Management’s Discussion and Analysis ofResults of Operations and Financial Position
082 Consolidated Financial Statements
090 Notes to Consolidated Financial Statements
204 Independent Auditor’s Report

Board Director, Executive Vice President, SoftBank Group Corp.
CEO, SB Investment Advisers (UK) Limited

Board Director, SoftBank Group Corp.
CEO, Arm Limited

Senior Vice President, CFO & CISO, SoftBank Group Corp.
(Head of Finance Unit, Head of Administration Unit)

Rajeev Misra

Simon Segars

Yoshimitsu Goto

Corporate Information

P.205

206 Major Subsidiaries and Associates
209 Corporate Data
210 Stock Information

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Philosophy

Information Revolution— Happiness for Everyone

Corporate Information

007

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

008

Corporate Information

Transformation of the SoftBank Group2017

Our vision is consistent.
Our business areas continue to evolve,
with the Information Revolution.

SoftBank Vision Fund started operations

2004

2016

Entered the fixed-line
telecom business byacquiring JAPAN TELECOM

Acquired Armwith sights set on the IoT era

Consolidated net sales (Trillions of yen)
10
Founded

8

1981

2013

Began as a distributor

2001

of packaged software

Launched Yahoo! BB

Acquired U.S. telecom
operator Sprint

broadband service
with ADSL lines

2006

6

4

1993

2000

Established SoftBank
Holdings Inc. in the U.S. toinvest strategically inInternet companies

Made a strategic
investment in Alibaba

Entered the mobile
business by acquiring
Vodafone K.K.

1996
Established Yahoo Japan
Corporation as a joint
venture with Yahoo! Inc.

2

0

1981

Business
area

1985

1990
PC/Software

1995

2000
Internet

2005

2010

2015

MobileAI/IoT/
Smart robotics

Note: On April 1, 2015, SoftBank Mobile Corp. (formerly Vodafone K.K.) merged with and absorbed SoftBank BB Corp., SoftBank Telecom Corp. (previously JAPAN TELECOM CO., LTD.), and Ymobile Corporation (name following the merger of eAccess Ltd. and WILLCOM, Inc.).
On July 1, 2015, SoftBank Mobile Corp. changed its name to SoftBank Corp.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information“AI will redefine all industries.”

009

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

010

Transformation of the SoftBank Group
September
2016
Acquired Arm

The technologies of processor designer Arm are used in the main chips of almost all smartphones
and tablets. In the Internet of Things (IoT) era, Arm, as a leader in semiconductor technologies, is
expected to play a central role in the SoftBank Group’s strategy by taking advantage of its differentiated technologies in high security and energy efficiency.

“The evolution of microprocessors is transforming
the lives of everyone.
We will accelerate the pace of this transformation.”

SoftBank Group Corp.
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011

Transformation of the SoftBank GroupMay 2017
SoftBank Vision Fundstarted operations

SoftBank Vision Fund has been established to invest in companies and platform businesses with the potential to bring about
the AI revolution. The fund makes large-scale, global investments in a broad range of technology fields. These include IoT, AI,
robotics, mobile applications, biotechnology, cloud technology, and fintech. The fund aims to energetically drive the nextstage of the Information Revolution forward by investing in innovative technologies and entrepreneurs that promise toshape the future.

“By investing in companies with the potential to become the leaders in their fields,
we aim to create a strategic group that will continuously grow for 300 years.”

SoftBank Group Corp.
ANNUAL REPORT 2019

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012

Transformation of the SoftBank Group
April 2018
Sprint and T-Mobile
agreed to merge*

The new company to be established through the merger
will drive transformation of the U.S. telecommunications
market. The new company will have a network with
sufficient breadth and depth for 5G network deployment;deliver lower prices as well as better quality and value;
and increase competition. Following the merger, the Company will have an approximately 27.4% stake in the newcompany. We are confident that the success of the newcompany will lead to an increase in our corporate value.

December 2018
SoftBank Corp. was listedon the Tokyo Stock
Exchange

The listing of SoftBank Corp. shares clarified the roles andvalue of SoftBank Group Corp., which invests globally, and
SoftBank Corp., a domestic telecommunications business.
With an independent management viewpoint andgrowth strategy, SoftBank Corp. will develop businesses
in a broad range of fields while pursuing collaboration
with Group companies all over the world.

“We have transitioned from a telecommunications operator to a strategic
holding company and will advance the Cluster of No. 1 Strategy.
We are focusing on realizing a more strategic, longer-term vision.”* The transaction is subject to Sprint and T-Mobile shareholder approval, regulatory approvals, and other customary closing conditions.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

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Management Organization

Financial Section

Corporate Information“Technology has the potential to address a variety of issues and risks
that humanity currently faces. In an era when AI is redefining all industries,
we, as a strategic holding company, will partner with companies thatshare our vision and build a future in which
the Information Revolution brings happiness to everyone.”013

SoftBank Group Corp.
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Towards the AI Era

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Financial Section

Consolidated Financial Highlights

014

Corporate Information

See page 49 for eleven-year consolidated financial data.

Fiscal year beginning April 1 and ending March 31 of the following year

Net sales

Operating income(Billions of yen)

10,000(Billions of yen)

9,602.2

8,504.1

8,881.8 8,901.0 9,158.8

8,000

918.7

908.9

’15

’16

’17

’18

(FY)

0

’14

’15

’16

+4.8% YoY

’18

(FY)

9,009.2

10,00031,180.58,000

021,034.2 20,707.2

3,853.1
4,000

7,115.6

10,000

’16

’17

’18

(FYE)

0

3,505.2

’17

’18

(FY)

’15

’16

’17

’14

’18

’15

’16

’17

(Billions of yen)

(%)

(%)

10,000

25

50

20

40

15

30

21.1

(FY)

16.6
13.5

14.6

7,621.5

5,184.2

12.6
3,586.4

2,846.3 2,613.6

(FYE)

0

’14

’15

’16

’17

’18

46.0

28.0

10

20

5

10

(FYE)

0

22.0
23.7
17.4

’14

’15

’16

’17

Equity attributable to owners of the parent
Ratio of equity attributable to owners of the parent to total assets+43.6% YoY’18+35.8% YoY

2,000
’14

0

ROE

4,000

T otal assets
Investments from SoftBank Vision Fund and Delta Fund accounted forusing FVTPL*+15.8% YoY’16Equity attributable to owners of the parent / Ratio of
equity attributable to owners of the parent to total assets

6,000

4,469.7

2,000

2,827.8
’15

’15

8,000

6,000

20,000’14’14

6,273.0

24,634.2

474.2
500

384.6

+339.7% YoY(Billions of yen)

36,096.5

40,000

668.4

814.6

712.5

Income before income tax
Income before income tax from SoftBank Vision Fund and Delta Fund

Total equity(Billions of yen)

0

919.1

+80.5% YoY

Total assets

1,000

125.6

’17

Operating income
Operating income from SoftBank Vision Fund and Delta Fund

30,0001,039.0
1,213.0

500

303.0

1,411.2

1,426.3

1,500

1,691.3

1,000

1,026.0500’14(Billions of yen)

1,303.8 1,256.6

1,000

2,000

(Billions of yen)

1,500

1,500

4,000

Net income attributable to owners of the parent

2,000

2,000

6,000

0

2,353.9

2,500

Income before income tax

Equity attributable to owners of
the parent
Ratio of equity attributable toowners of the parent to total assets+47.0% YoY
21.1%

ROE 22.0%

Note: In fiscal 2018, the Company adopted IFRS 9 and IFRS 15.
* As of March 31, 2019, SoftBank Vision Fund held 24.99% of Arm shares (equivalent to approximately $8.2 billion). Since Arm is a consolidated subsidiary of the Company, the value of such shareholding is not included in “Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL.”

’18

(FY)

SoftBank Group Corp.
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Management Organization

Financial Section

Corporate Information

Summary of Segment Information
Net Sales

Segment Income(Billions of yen)

10,000

SoftBank(Billions of yen)

9,602.2

3,000

9,158.8

3,747.7

Core companies• Provision of mobile communications services, sale of mobile devices,
provision of broadband and other fixed-line
communications services in Japan• SoftBank Corp.

• Sale of PC software, peripherals, and mobile device accessories in Japan

2,353.9
8,000

Main businesses

2,500• Wireless City Planning Inc.
• SB C&S Corp.

Sprint3,608.8
725.1

Main businesses

Core companies• Provision of mobile communications services in the U.S.

• Sprint Corporation• Sale and lease of mobile devices and sale of accessories in the U.S.
• Provision of fixed-line telecommunications services in the U.S.

2,000

6,000

Yahoo Japan

280.3

1,303.8

1,500

4,000

134.9
134.0

3,726.8

3,602.0

Main businesses

Core companies• Internet advertising• Yahoo Japan Corporation• e-commerce business• ASKUL Corporation• Membership services

684.7

Arm

1,000

Main businesses

Core companies• Design of microprocessor intellectual property and related technology• Arm Limited• Sale of software tools and provision of software services
2,000

0

876.1

500

202.3

202.7

1,075.0

1,082.7

97.6–303.1

193.7–298.9’17

SoftBank
SprintYahoo Japan
SoftBank Vision Fund and Delta Fund*1  

’18

Arm
Brightstar

176.3

SoftBank Vision Fund and Delta Fund*1

303.0
0

–31.4
–44.6
–21.8
–41.6

Main businesses

Core companies• Investment activities by SoftBank Vision Fund

• SoftBank Vision Fund L.P.

• Investment activities by Delta Fund

• SB Delta Fund (Jersey) L.P.

–23.4
–90.1
–63.6

’17

(FY)

Other*2

1,256.6

279.3

947.4

Reconciliation*1 Net sales are not recorded for this segment as it is not engaged in the sale of goods and services.
*2 Other indicates Fortress Investment Group LLC, Fukuoka SoftBank HAWKS Corp, PayPay Corporation, among others.

’18

(FY)

Brightstar
Main businesses

Core companies• Distribution of mobile devices overseas• Brightstar Corp.

015

SoftBank Group Corp.
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Corporate Information

016

SoftBank Group Corp.
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017

Growth Strategy of the SoftBank Group — Cluster of No. 1 AI Strategy

We are guided by our corporate philosophy of “Information Revolution — Happiness forEveryone.” We aim to be a corporate group that maximizes enterprise value while providing essential technologies and services to people around the world. Therefore, we believe
it is essential that we continuously evolve to reflect changes in society, rather than fixate
on a particular technology or business model.

Cluster of No. 1 Strategy

Focusing on
the potential of AI

Generally
not holding
majority stakes

Cluster ofleading companies

The goal of the “Cluster of No. 1 Strategy” is to form a diverse group of companies withoutstanding technologies and business models in specific fields. Under this strategy, thecompanies are encouraged to form synergies to evolve and grow together based on
capital ties and a shared vision while making decisions independently. While appearing
similar to zaibatsu, a type of Japanese conglomerate, and overseas equivalents, we
believe this approach is in fact totally different. We believe this unique organizational
strategy has the potential to help the Group to grow over the next 300 years throughflexible transformation and the expansion of business lines.
The Cluster of No. 1 Strategy has two distinctive features. First, it aims to create acluster of leading companies in their respective fields, markedly heightening the competitiveness of the whole cluster. Second, the strategy enables SoftBank Group Corp. (“SBG”)
to maintain an extremely flexible management style, rather than controlling and managing portfolio companies as wholly-owned subsidiaries. As a strategic holding company,
SBG will seek to provide guidance on decision-making of companies in the cluster. SBG,
however, will largely not seek to acquire majority equity interests or integration ofbrands, as it attaches greater importance to preserving companies’ diversity and autonomy. Further, our decision to generally not hold majority stakes, in our view, means we areable to more easily exit from equity interests in group companies that have matured or
not grown as expected, thereby facilitating their smooth replacement over time.

Cluster of No. 1 AI Strategy — Focused on the Potential of AI
At present, the incorporation of AI into a range of business models is reshaping value
creation and fundamentally redefining all industries. The expansion of markets and thecreation of new industries through the utilization of AI bring huge opportunities. To
ensure that we seize these opportunities, we are investing to build a cluster of leading AI
companies that are building innovative services and business models based around theemerging capabilities of AI technology. These efforts are based on the “Cluster of No. 1
AI Strategy,” which we believe will sustain our growth going forward. In implementing
this strategy, SoftBank Vision Fund plays a leading role by enabling large-scale investment activities over the long term.

SoftBank Group Corp.
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018

Investment Strategy of SoftBank Vision Fund
Investing in the AI Revolution
The AI revolution
At the Group, we believe the AI revolution has arrived. Masayoshi Son’s founding vision was to invest in businesses that are
enabling this next stage of the Information Revolution. To thisend, in 2017 we invited institutions that share our vision topartner with us in the SoftBank Vision Fund (the “Vision Fund”).
Over the past two years, as our partnership has grown to include
more institutions, we have been making large-scale, long-term
investments in companies that are leveraging AI to disrupt
inefficient industries and create entirely new ones. Positioned at
the center of the SoftBank Group’s investment activities, the
Vision Fund is driving the SoftBank Group’s paradigm shift froma telecom service operator to a strategic holding company.

Portfolio company support

Rajeev Misra
Board Director, Executive Vice President, SoftBank Group Corp.
CEO, SB Investment Advisers (UK) Limited

The Vision Fund focuses on investing in growth-stage companies, particularly “unicorns.”*1 We evaluate investment opportunities by examining them from three angles: the market
opportunity, the business, and the founders.
We seek to match our financial investment with multifaceted support that enables our portfolio companies to reach
their full potential. We provide this support in three ways:
through our investment team who represents us on our company boards, through functional experts in areas such ascommunications, human resources, and government affairs,
and through the operating group. The operating group wasformed last year and is a dedicated team of 35 professionals
with average more than 20 years of management and operating experience across more than 100 global companies. The
operating group has already improved portfolio management,
expanded the geographic reach of our companies, and identi-

fied and developed numerous joint venture opportunities. In
our view, the operating group offers a competitive advantage
for us and we are very excited about the impact it can have on
our portfolio companies in the years ahead.

Beyond capitalOver the past years, we have broken new ground in expanding
our portfolio and our team. The Vision Fund has made a seriesof compelling investments, which has grown our portfolio tomore than 70 companies.*2 We believe these investments
form an unparalleled group of leading tech firms, of which the
Vision Fund is often the largest outside shareholder. We seek
to foster beneficial relationships across this ecosystem to help
our portfolio companies accomplish much more than they
could alone.
Our team now includes approximately 300 employees
around the world. In addition to our hubs in London, Silicon
Valley, and Tokyo, we have established a presence in Abu
Dhabi, Mumbai, Riyadh, Shanghai, and Singapore. This geographic reach allows us to identify new investment opportunities around the world, help our portfolio companies access newmarkets, and partner more closely with our limited partners.
We have also established a high-performing culture of teamwork, integrity, and impact that we believe will be central to
our long-term success.
One of the year’s most exciting developments has been theshift in founders’ understanding of the value we offer. Twoyears ago, we were relatively unknown. This meant we were
often defined by the size of the checks we wrote, and needed
to work hard on many occasions to convince companies topartner with us. Now, many extraordinary entrepreneurs seek

SoftBank Group Corp.
ANNUAL REPORT 2019

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019

Corporate Information

Investment Strategy of SoftBank Vision Fundus out. Our capital remains compelling since it enables founders to distance themselves from competitors and focus onbuilding an enduring company. But now many entrepreneurs
seek us out for our ability to help them amplify their ambition,enter new markets, and access our ecosystem of companies.
Collaboration between the Vision Fund portfolio companies
and the SoftBank Group is creating a stream of new businesses.
For example, the businesses of WeWork Japan and DiDi Mobility
Japan are already producing positive results. Such collaborations
led to the establishment of OYO Hotels Japan in April 2019. The
resulting businesses are contributing to the growth of both the
Vision Fund and the SoftBank Group as a whole.

Looking ahead
On the heels of Uber’s IPO, the Vision Fund has entered an
exciting stage that expects to see the public listings of a seriesof portfolio companies and the expansion of synergies across
our portfolio. We expect that the Vision Fund’s 71 portfolio
companies*2 will grow to more than 100 and we believe thefund will be the biggest collection of unicorns in the world.
We believe that our business also generates other economic
benefits for our limited partners. Most recently, we collaborated
with a limited partner to establish a tech hub in Abu Dhabi.
Through the tech hub, our portfolio companies will receive anumber of benefits and assistance expanding their businesses
locally. We also intend to work with another limited partner toestablish a similar support system in Riyadh to provide a bridgehead for our portfolio companies’ entry into Saudi Arabia.

Going forward, we will continue to focus on accelerating
our portfolio companies’ long-term growth. A top priority is
expanding the operating group so it can create additional value
and meet future opportunities. We will also begin to help our
portfolio companies find new business directions that arecomplementary to their core businesses. We believe the knowledge and information that we receive from our global portfolio
companies and staff make us smarter every day, and we apply
this know-how across geographies and our portfolio.
I am very proud of our progress to date. While we areencouraged by the Vision Fund’s performance, the synergies
across our portfolio, and the growth of our organization, weare even more excited by the opportunities that lie ahead.
*1 Private companies with estimated valuations of more than $1 billion*2 Includes joint ventures and two exited investments. As of March 31, 2019

Portfolio companies composed of various sectors

Geographical diversity of portfolio companies

As of March 31, 2019

Calculated as a percentage of total fair value as of March 31, 2019

Transportation

HealthTechReal
EstateLogistics

AI

Americas

FintechConsumer

Frontier
Tech

EMEA

Enterprise

See page 25 for a complete list of SoftBnak Vision Fund portfolio companies.

46%

14%
Asia

40%

SoftBank Group Corp.
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020

SoftBank Vision Fund in Focus
Investment results

Unprecedented characteristics

In less than two years from its initial close to March 31, 2019,
SoftBank Vision Fund (the “Vision Fund”) grew to hold 69
investments,*1 including joint ventures, at a cumulative acquisition cost of $60.1 billion and fair value of $72.3 billion.*2
In the consolidated earnings of SoftBank Group Corp.
(“SBG”) for fiscal 2018, the rise in value of these investments
has contributed as operating income from SoftBank Vision
Fund and Delta Fund of ¥1,256.6 billion. After adding derivative gain of ¥177.4 billion and deducting ¥586.2 billion of
third-party interests, among others, this has contributed¥814.6 billion to income before income tax.

The Vision Fund is the world’s largest technology investor.* We
believe several characteristics, when taken together, help the fundremain unique and difficult to replicate by other fund managers.
The Vision Fund seeks to take a holistic view of potential investment opportunities focusing on large and growing market opportunity, use of technology to accelerate growth, and the founder’s
desire to rapidly scale their business.
The Vision Fund’s investment process considers opportunities across the spectrum of growth stage companies, as opposed to by geography or sector. We believe this approachcreates significant benefits because it allows the Vision Fund to
identify companies with the potential to disrupt a market orindustry. Unshackled from sector or geographic focus, the
Vision Fund is free to create a global ecosystem of portfolio*1 Excludes two exited investments*2 The acquisition costs and fair values of the investments at the Vision Fund include the investments
made by subsidiaries of SBG through investment holding entities that are subsidiaries of the
Vision Fund.

Growth in value of investments*2

3

companies and to help these companies exchange insights,
share resources, collaborate with one another, and form business partnerships.
This investing approach also helps ensure our portfolio
remain diversified across sectors and geographic regions, in ourview positioning us to maximize risk-adjusted returns to ourlimited partners including SBG.
*3 Based on a comparison of committed capital of the Vision Fund as of March 31, 2019 and global
venture fund raising in 2018 as in “Venture Pulse Q4 2018” KPMG Enterprise, January 15, 2019.

Investment process
The Vision Fund has a highly selective investment process. Of
more than 2,200 deals it has sourced since May 2017, just71, or 3%, have been approved and funded. The process
flows as follows.

The Vision Fund’s strategy*

As of March 31, 2019$72.3bn$60.1bn

Size of investments that drives business scale
We make large, long-term investments, helping founders
focus on realizing their ambitious business goals.

Global reach, local insight

Vision-led global team

We help our portfolio companies expand
internationally thanks to our deep understandingof their target markets.

The SoftBank Group's vision, combined with ourworld class team, delivers disciplined investments in
big ideas.

Global ecosystem
We believe this ecosystem enables our portfolio companies
to achieve much more together than they could alone.
Acquisition cost

Fair value

SoftBank
Vision Fund

Portfolio of market leaders
We are backing companies that we believe either
already are, or are poised to become, market leaders,with the potential to deliver outsized returns.
*SB Investment Advisers (UK) Limited beliefs

SoftBank Group Corp.
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021

SoftBank Vision Fund in Focus

Preliminary screening
Once potential investments enter the funnel, they go through apreliminary screening process. The Vision Fund focuses on themarket opportunity, business model, and management team.
Due diligence
The investment case then moves into a rigorous due diligenceprocess, in which the fund’s team and its external advisers
perform commercial, legal, financial, compliance, and technicaldue diligence.

Highly selective investment process
Investment Pipeline

2,257Preliminary Screening and Underwriting
Advanced Due Diligence
Managing Partners Review
SBIA UK Investment
Committee

71*4 Portfolio Companies(As of March 31, 2019)*4 Includes two exited investments

Managing partner review
Managing partners who oversee multiple regions and sectors
then review and select investments to be recommended to theInvestment Committee. As of May 2019, 12 managing partners are involved in our investment activities.
Investment Committee
Shortlisted investments are presented to the Investment Committee. The members of the committee includes Masayoshi Son,
SBG’s chairman & CEO, and Rajeev Misra, CEO of SB Investment
Advisers (UK) Limited (“SBIA”), which is the manager of the
Vision Fund.

Valuation process
The Vision Fund’s valuation process and governance reflect
industry best practice and is supported by market-leading
professionals. The valuations are prepared by the valuationteam of SBIA in accordance with IFRSs, International Private
Equity and Venture Capital Valuation (IPEV) Guidelines and the
SBIA Global Valuation Policy on a quarterly basis, using themost appropriate valuation techniques and inputs that reflect
the nature, characteristics and risks of the invested assets asfinancial instruments that are subject to fair value measurement. The valuation team of SBIA may engage external specialists with a high level of knowledge and experience as needed,in determining the fair value of certain complex financial
instruments. The Investor Advisory Board (IAB) of the Vision
Fund has additionally appointed certain external firms to act as
independent valuers for the Vision Fund’s assets. The independent valuers are engaged to determine the fair value of all
portfolio companies held on the Vision Fund’s balance sheet asat the measurement date in accordance with IFRSs and IPEV.
The valuations prepared by the valuation team of SBIA, as wellas the fair value determinations made by the independent
valuers, are then reviewed by the Valuation and Financial Risk
­Committee (VFRC), established as a committee of SBIA, which
reports the result of their review to SBIA’s Board of Directors ona quarterly basis. The VFRC reviews the reasonableness ofsignificant inputs and assumptions as well as the valuation
results. In addition, the VFRC considers the appropriateness ofthe choice of valuation methodology.

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SoftBank Vision Fund in Focus

Valuation approach
The applicable reporting framework of the Vision Fund is the
IFRSs, which outlines how to measure fair values. The Vision
Fund also follows IPEV Guidelines.
For companies that are publicly listed, quoted prices areused to measure fair value.
For companies that are privately held, the market andincome approaches are widely used valuation techniques. The
market approach uses public company comparables, industry
valuation benchmarks, and available market prices to establish
a valuation range. The income approach, otherwise known as

the discounted cash flow method, derives the value of abusiness by calculating the present value of expected future
cash flows. Then pricing of similar recent transactions is­reviewed and who is investing and the size of the investment
round are considered. The Vision Fund also recognizes thesenior-­subordinate structure of the companies in which it
invests, which acknowledges that senior shares are worth morethan junior ranking shares. Finally, to create a reliable valuation
range, the Vision Fund weights each methodology based on
the observability and reliability of its data.

Valuation methodologies for private companies• Discounted Cash Flows• Fundamental Analysis

IncomeApproachMarketApproach

RecentTransactions• Comparable Company Multiples• Guideline Company Transactions• Financing & Follow-On Rounds

Culture Award winners who contributed to fostering team culture of SBIA, with Masayoshi Son andRajeev Misra in Tokyo in January 2019

Our people are critical to our success
Talent from across a diverse set of backgrounds—from technology specialists to VC investors, former founders to banking andfinance experts—continues to join our team. In fiscal 2018,
SBIA, the manager of the Vision Fund, hired 150 permanent
employees across eight geographic locations. As of March 31,
2019, SBIA employed approximately 300 permanent employees, of whom over 130 are investment professionals, engaged
in evaluating investment opportunities and risks. SBIA intends
to keep growing its team and within the first half of next year,
its team is expected to reach 500. SBIA has a clear focus on
attracting, developing, rewarding, and retaining its diverse,
world-class talent, at all levels and across locations.
As SBIA grows, it pays significant attention to putting in place
the right building blocks for success. SBIA continues to build astrong, healthy, and high-performing culture that is critical to thesuccess of the SoftBank Group’s business model and toward theexecution of the SoftBank Group’s long-term vision.
SBIA is bringing disruptive thinking to how it leads its own
teams, with employee well-being a current focus. It takes ateam effort—from front office to back, deal team, and functional—to accomplish what it has done in the last 18 months
as a firm. Every team is critical to value creation.

SoftBank Group Corp.
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Corporate Information

SoftBank Vision Fund in Focus

Economy of SoftBank Vision Fund
The Vision Fund is managed by SBIA, SBG’s wholly owned and independent subsidiary. SBG
also participates in the Vision Fund as a limited partner.
Out of the around $98.6 billion in total committed capital,*5 SBG has committed $28.1
billion.*6
Contributions by the Limited Partners are classified as “Equity (performance-based distribution)” and “Preferred Equity (fixed distribution)” depending on the terms and conditions of
distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution. As a limited partner, SBG contributes to Equity.

Capital structure

SBIA is entitled to receive management fees and performance fees, each of which is measured by reference to the investment activities of the Vision Fund. Management fees to SBIA
are calculated by multiplying 1% per annum to equity contributions.
Once the Vision Fund exits or monetizes an investment, a portion of the proceeds in certain
circumstances may be retained or re-invested in foreseeable new investments. Any residual
proceeds are distributed as illustrated below.
*5 Total of commitment of around $97 billion to the Vision Fund and $1.6 billion of commitment by third-party limited partners to Delta Fund
*6 Excludes $5 billion of commitment earmarked for an employee incentive scheme related to the Vision FundDistribution waterfall

As of March 31, 2019$98.6bn*5
Preferred equity (fixed distribution)• A fixed rate of 7% is distributed in proportion to theinvestment principal, regardless of the investment
performance• Prioritized over equity upon distribution$40.0bn

Equity (performance-based distribution)$58.6bn$28.1bn*6• Distribution to limited partners is fully dependent on
investment performance• Has lower priority during distribution, compared withpreferred equity interest

SBG has committed to equity interests
Committed Capital

Payment of Preferred
Equity Coupons
Preferred equity
Return of Preferred
Investors
Equity Contributions
Preferred equity
Investors

1

2

Return of Equity
Contributions
Equity Investors

3

Payment of Preferred
Return on Equity
Equity Investors

4
Return of Contributions & Hurdle Return

Payment of
Performance Fees
SBIA

5

Payment of
Remaining Gain
Equity Investors

6
Sharing Gains Above Hurdle

SoftBank Group Corp.
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024

SoftBank Vision Fund in Focus

SoftBank Vision Fund portfolio companies
The largest fair value by sector as of March 31, 2019

Transportation & Logistics

Xiaoju Kuaizhi Inc. (DiDi)
Transportation platform
CEO: Cheng Wei
Headquarters: Beijing, China

FintechOne97 Communications
Limited (PayTM)

Guardant Health, Inc.

Online payment service

CEO: Helmy Eltoukhy
Headquarter: Redwood City, CA, U.S.

CEO: Vijay Shekhar Sharma
Headquarters: Noida, Uttar Pradesh, India

Didiglobal.com

Health Tech

Cancer diagnosis

guardanthealth.com

paytm.com

Consumer

Frontier Tech

Real Estate & Construction

Oravel Stays Private
Limited (OYO)

Arm Limited

WeWork Companies Inc.

Semiconductor technology designs

Co-working space

Hotels

CEO: Simon Segars
Headquarters: Cambridge, U.K.

CEO: Adam Neumann
Headquarters: New York, NY, U.S.

CEO: Ritesh Agarwal
Headquarter: Gurgaon, Indiaarm.com

wework.com

oyorooms.com

Enterprise

OSIsoft LLC
Industrial IoT solutions
CEO: J. Patrick Kennedy
Headquarters: San Leandro, CA, U.S.

* The investments presented herein are solely for illustrative purposes to demonstrate examples of
SoftBank Vision Fund investments in different sectors. References to investments included hereinshould not be construed as a recommendation of any particular investment or security.

Osisoft.com

See page 25 for a complete list of SoftBank Vision Fund
portfolio companies

SoftBank Group Corp.
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025

Portfolio Companies of SoftBank Vision FundAs of March 31, 2019; excludes exited investments

Cumulative acquisition cost of investments: $60.1 billion *Total fair value of investments: $72.3 billion *SectorConsumer

Name (in alphabetical order)
Brainbees Solutions Private Limited (First Cry)
Brandless, Inc.

SectorReal Estate &Construction

Katerra Inc. (and its one affiliate)

Coupang LLC

OpenDoor Labs, Inc.

Fanatics Holdings, Inc.

View Inc.

Oravel Stays Private Limited (OYO) (and its two affiliates)
Plenty United Inc.

FintechFrontier Tech

Compass, Inc.

Bytedance Ltd.

Grofers International Pte. Ltd.

Enterprise

Name (in alphabetical order)
CLUTTER INC.

WeWork Companies Inc. (and its three affiliates)
Transportation &Logistics

Auto1 Group GmbH
Cambridge Mobile Telematics Inc.

PT Tokopedia

Delhivery Private Limited

Wag Labs, Inc.

Doordash, Inc.

Zuoyebang Education Limited

Fair Financial Corp.

1 other investment

Full Truck Alliance Co. Ltd

Automation Anywhere, Inc.

Getaround, Inc.

Cohesity, Inc.

GM Cruise Holdings LLC

Globality, Inc.

GRAB HOLDINGS INC. (Grab)

MapBox Inc.

Local Services Holding Limited (Alibaba Local Services)

OSIsoft LLC

Loggi Technology International

Slack Technologies, Inc.

Nauto, Inc.

Kabbage, Inc.

Nuro, Inc.

OakNorth Holdings Limited

ParkJockey Global, Inc.

One97 Communications Limited (PayTM)

Uber Technologies, Inc. (Uber)

OneConnect Financial Technology Co., Ltd.

Xiaoju Kuaizhi Inc. (DiDi)

Zhongan Online P&C Insurance Co., Ltd. (and its one affiliate)

Zume, Inc.

Arm Limited

Total of 69 investments

Brain Corporation
Improbable Worlds Limited
Light Labs, Inc.
Petuum Holdings Ltd.
2 other investments
Health Tech

10x Genomics, Inc.
Guardant Health, Inc. (and its one affiliate)
HealthKonnect Medical and Health Technology Management Company Limited (Ping An Medical and Healthcare)
Ping An Healthcare and Technology Company Limited (Ping An Good Doctor)

New investments during fiscal 2018

Relay Therapeutics, Inc.
Roivant Sciences Ltd.
Vir Biotechnology, Inc.
Zymergen, Inc.

* SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not wholly owned subsidiaries, of the fund. All
investments made through the investment holding entities are calculated as investments made by SoftBank Vision Fund. As of March 31, 2019, a wholly
owned subsidiary of the Company is a shareholder of such subsidiaries. Of the acquisition cost of investments made by SoftBank Vision Fund, $1.3 billion
belongs to this wholly owned subsidiary; of the fair values, $1.7 billion belongs to this wholly owned subsidiary.

SoftBank Group Corp.
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026

Arm Business Strategy
Strategy to Benefit from the Growth of AI and IoT
Leading the world in semiconductor technology
Arm is the world's leading designer of key technologies used insemiconductor computer chips. Arm’s processor technology is
the world’s most widely licensed and deployed semiconductor
design of its kind and has a 100% share in markets as diverse
as smartphones and disk drives, and a very high share in a hostof electronic devices, from digital TVs to drones. As new markets for electronics emerge, they are often based on Arm’s
advanced processor designs, including IoT, self-driving vehicles,
and industrial automation.

• Establish Arm as the leader in emerging technologies andmarkets such as IoT, machine learning, computer vision, andautonomous vehicles;• Provide more advanced and valuable technology so that Arm
can increase the price per chip;• Diversify Arm into new business opportunities as the IoT
market develops; and• Continue to develop a financially disciplined organization, fit
for the long term.
Market share

Arm business model
Arm licenses processor designs to semiconductor companies thatincorporate the technology into their computer chips. Licensees
pay an up-front fee to gain access to our technology, and aroyalty on every chip that uses one of our technology designs.
Typically, the royalty is based on the selling price of the chip.
Each Arm design is suitable for a wide range of end applications and can be reused in a variety of chip families to address
multiple markets. Each new chip family generates a new
stream of royalties. An Arm design may be used in manydifferent chips and may ship for more than 25 years.

Arm business strategy
At this moment in time, there are many emerging markets thatwill depend on new technologies being developed. Arm isinvesting in these new technologies to enable these emerging
markets. Over the past two years after being acquired by the
SoftBank Group, Arm has significantly increased investment in
R&D to ensure that it is to develop technology that is suitable
for all of these new opportunities.

Simon Segars
Board Director, SoftBank Group Corp.
CEO, Arm Limited

Arm’s strategy is therefore to:• Maintain share in markets where Arm already has a very highmarket share, such as smartphones and other consumer electronics;

FY2018FY2028 Target

>90 %

>90 %

Networking
equipment

30 %

>65 %

Data center/
cloud

4%

>25 %

Embeddedcomputing

90 %

>90 %

>75 %

>90 %

Mobile application
processors*

In-vehicle
infotainment anddriver assistance* Includes processors for smartphones, tablets, and laptops

Investing in growth markets
Arm is investing in technologies, markets, and industries thatare going to transform the way we all live and work.
Smartphones will become smarter and more capable.
Although the number of smartphones sold each year may notincrease, the intelligence of each smartphone is growing withevery generation, and this is creating opportunities for Arm toprovide both more technology and more intelligent technology
to this important market. Future smartphones will have built-in
machine learning capability. They will have learned how youSoftBank Group Corp.
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Management Organization

Financial Section

Corporate Information

027

Arm Business Strategy

use the smartphone may change with the time of day or
location, they will be able to understand your voice and follow
spoken instructions and gestures, and they will be able toanticipate what you will need next based on your past patternof behaviour and what others are also doing with their devices.
Cars will become semi- or fully autonomous.
A lot of new technology is being built into cars to make themsafer for humans to drive in the near term and completely
self-driving in years to come. This technology includes multiple
cameras and sensors for vehicles to be able to understand theirArm’s opportunity increases as cars become smarter

physical environment, more communications between different
vehicles and between vehicles and the road infrastructure(signs and signals, for example), and more in-vehicle infotainment to ensure that passengers are kept entertained.
Everything will become connected, creatingan Internet of Things.
Already, devices that used to be merely electrical are now
becoming smarter and connected with digital electronics:
streetlights, elevators, parking meters, thermostats, etc. This isalso happening in factories and warehouses where industrial
automation is making systems faster and more efficient. Mostof these digital connections are based on Arm technology, andover time we expect that there will be billions, and by 2035
one trillion, Internet-connected devices. All of these will need
to be securely connected to the Internet and managed. This iscreating new opportunities for new products and services, andArm intends to invest in this area, building on the strength ofits very high market share in end devices.

Progress in fiscal 2018

>65%
share

>85%
share

>40%
share

ADAS/Autonomous• Cruise control• Collision avoidance
Arm’s opportunity: main processor, real-time controller, andgraphics processor

IVI/Cockpit• Rear seat entertainment• Navigation
Arm’s opportunity: main processor and graphics processor

Connectivity/Telematics• Vehicle-to-vehicle• LTE 5G
• Vehicle-to-infrastructure
Arm’s opportunity: main processor and real-time controller

Arm is now in its third year following acquisition, and over thistime Arm has steadily increased investment in R&D. This increase
in investment is now yielding the new technologies and new
business strategies that were announced throughout fiscal 2018.

announces the Cortex-M35P processor, which combines anti-tamperQ1 Arm
ing technology and robust software isolation to create a secure base for
IoT embedded devices.
acquires Treasure Data and Stream Technologies and combines withQ2 Armexisting IoT services to create the secure IoT platform Pelion.
launches the Neoverse processor family for servers and high-perforQ3 Armmance computing.
Amazon announces that it has started to deploy Arm-based servers at
Amazon Web Services (AWS).
announces Helium architecture for machine learning in microconQ4 Armtrollers and tiny embedded computers.

Near-term challenges
Although Arm is focusing on investing for long-term growth,
we cannot ignore near-term market conditions. In fiscal 2019,
Arm is expecting to see a slowdown in the semiconductor
industry primarily due to weakness in demand for some consumer electronics products such as smartphones. In 2019,some analysts expect that the number of smartphones soldcould decline by as much as 5%, and growth in the industry
as a whole is likely to be only 2%. About half of Arm’s revenues are driven by smartphone-related technology, so this isgoing to be a significant headwind to Arm’s overall revenues
in fiscal 2019.

Collaborating across the SoftBank GroupIn fiscal 2018, Arm increased collaboration with companies
across the SoftBank Group. This included Sprint announcing a
new IoT platform utilizing Arm’s IoT managed services technology, and SoftBank Corp. utilizing Arm’s data management
technology to extend their customer insight capabilities. SoftBank Corp. is extending Arm’s commercial reach in Japan as achannel partner for our customer data management services.
Arm is working with both Sprint and SoftBank Corp. to enableglobal coverage for our eSIM-based connectivity offering. In
addition, Arm is exploring opportunities with SoftBank Vision
Fund’s portfolio companies. By being part of the SoftBank
Group ecosystem, Arm is provided with a unique opportunity
to find new partners and invest in new technology areas.

SoftBank Group Corp.
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Management Organization

028

SoftBank Group Corp.
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029

Corporate Information

Financial Strategy
Supporting the Growth of a Strategic Holding Company
Making a new start as a strategic holding company
The SoftBank Group is undergoing its most significant transition since its foundation. Facing the largest paradigm shift in
human history, which is being driven by AI, we decided thatthe optimal organizational structure for pursuing sustained
growth is one that enables the holding company to focus on
corporate strategy while allowing each group company toincrease its value independently. In keeping with this decision,
SoftBank Corp., our domestic telecommunications arm, listed
its shares on the Tokyo Stock Exchange in December 2018. The
listing of SoftBank Corp., which was previously integrated into
the business management of SoftBank Group Corp., enabled
the latter to make a new start as a strategic holding company
that is primarily tasked with making decisions on strategic
investments and managing the financial matters of SoftBank
Group Corp.
From the viewpoint of the strategic holding company, allgroup companies are equity assets. As a consequence of its

listing, SoftBank Corp. has emerged as a highly liquid equity
asset with market capitalization surpassing ¥6 trillion. In addition, our investment portfolio comprises a diverse array of morethan 1,500 companies,*1 such as Alibaba, as of March 31,
2019. We want each of these companies to become the dominant No.1 in their respective business fields. If they are alreadyNo.1, we want them to leave the second-place company far
behind. With the exception of certain companies that form thecore of the SoftBank Group, as an investment company, inprinciple, we dispose of companies that are unable to become
No.1 in their business fields and that are unlikely to produce
high returns. We then use the collected funds to acquire newcompanies promising strong growth. Creating a flexible groupof No.1 companies through this constant turnover of portfolio
companies is how we aim to manage the group, an approach
we call the “Cluster of No.1 Strategy.”*1 Includes the number of portfolio companies of SoftBank Vision Fund

Equity value of holdings
As of May 9, 2019

SoftBank
Vision Fund¥13.1 trillion ¥4.5 trillion

Yoshimitsu Goto
Senior Vice President, CFO & CISO
Head of Finance Unit, Head of Administration Unit
SoftBank Group Corp.

ListedListed¥2.8 trillion¥0.6 trillion

ListedListed

¥3.2 trillion¥2.7 trillion

OthersEquity value ofholdings¥0.5 trillion¥27.3 trillion

Equity value of holdings: Based on closing share prices as of May 9, 2019 (Japan), and closing shareprices as of May 8, 2019 (U.S.)
Exchange rate: USD/JPY = ¥110.01

See page 31 “Our Approach to Shareholder Value” for details.

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030

Financial Strategy

Discipline for financial safety
Ideally, an investment company’s financial operations should
focus on an approach whereby investment assets are disposedof in a timely manner and the collected funds are reinvested
when new opportunities arise. Relying solely on such an approach, however, can result in missing a chance to invest at thebest time or having to dispose of investments at an unfavorable time. Providing supplementary funds so that such undesirable situations are avoided is the role of debt financing. Continuous and stable debt financing allows us to flexibly executeand monetize investments at the best times. That being said,
when using debt financing, we must demonstrate our financial
discipline even more clearly than before to earn the further
trust of bond markets and financial institutions. This is because,
following the listing of SoftBank Corp., we are no longer able
to freely use free cash flows generated by the company.
Given this situation and the characteristics of an investmentcompany, we view LTV (Loan to Value: net interest-bearing debt
of SBG stand-alone*2 ÷ equity value of holdings), as our mostimportant financial indicator. We have set out a policy of keep-

ing LTV below 25% in normal times and establishing an upper
threshold of 35% even in times of emergency (LTV was 16.3%
based on share prices on May 9, 2019). We believe that keeping
LTV below 25% in normal times is a highly safe standard because even if share prices were to halve due to a financial crisis
or for some other reason, LTV would only increase to 50%. In
addition, we view our cash position as another important financial indicator. By maintaining a cash position that is sufficient toredeem bonds for the coming two years, we are clearly demonstrating that there should be no concerns about bond redemptions. Moreover, if the bond market temporarily stopped functioning due to a financial crisis, we would be able to redeem
bonds until the market recovered.
We will rigorously adhere to the following components of financial discipline: (1) keeping LTV at a safe level, (2) maintaining
an adequate cash position, and (3) securing stable dividend income from subsidiaries, in order to firmly maintain our financial
safety. At the same time, we will carefully explain our approachand measures to credit investors and credit rating agencies todispel any concerns they may have.

Our approach to Loan to Value (LTV)

Financial policy

Net interest-bearing debt of SBG stand-alone*2 ÷ Equity value of holdings¥27.3 trillion

1

Keep LTV under 25% withupper threshold of 35%

2

Maintain a cash position that covers
bond redemptions for at least next 2 years

3

Secure sustainable distribution anddividend income from SoftBank Vision Fundand other subsidiaries

LTV(As of May 9, 2019)

16.3%¥4.4 trillion
Equity value ofholdings(As of May 9)

Net interest-bearing
debt of SBG
stand-alone*2

See page 31 “Our Approach to Shareholder Value” for the calculation ofequity value of holdings and net interest-bearing debt of SBG stand-alone.*2

Enhancing shareholder returns while keeping
creditors in mind
As mentioned earlier, debt financing is an extremely important
method of fund-raising for us. Consequently, not only shareholders (equity investors), service users (customers), local
communities, and employees but also such creditors as bondinvestors and banks are very important stakeholders. Generally,
the interests of shareholders and creditors, as well as theinterests of equity investors and bond investors, tend to comeinto conflict. Giving due consideration to their respective
positions and viewpoints, however, we are providing shareholder returns through share repurchase, higher dividends, andother measures in a manner that is also acceptable to creditors.
For example, we undertook the balanced allocation of theapproximately ¥2 trillion in net proceeds from listing SoftBank
Corp., earmarking approximately ¥700 billion for strategic
investments going forward, approximately ¥700 billion forimproving SoftBank Group Corp.’s financial position throughsuch measures as repayment of borrowings, and ¥600 billion
for the share repurchase.*3 Further, aiming for enhanced
shareholder returns and a broader investor base, we executed a
two-for-one stock split in June 2019, and we have decided tokeep the annual dividend at ¥44.00 per share in fiscal 2019,
unchanged from that of the previous fiscal year. This will
effectively double the annual dividend year on year.
We will continue to pay close attention to feedback fromshareholders and other stakeholders. At the same time, we willcontinue to disclose information about our financial discipline
and improve our governance, compliance, and risk management systems and capabilities, in order to ultimately enhance
corporate value. We appreciate your continued support.
*2 Excludes self-financing subsidiaries from the consolidated accounts.
Self-financing subsidiaries are SoftBank Corp., Sprint, SoftBank Vision Fund, Yahoo Japan, Arm, etc.
*3 Strengthening of financial position was completed by the end of January 2019, and the share
repurchase was completed on May 14, 2019.

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031

Our Approach to Shareholder Value
We evaluate the shareholder value of SoftBank Group Corp. as a pure holding company as shown below.
Shareholder value = Equity value of holdings – Net interest-bearing debt of SBG stand-alone*1

Calculation of equity value of holdings

As of May 9, 2019
(Trillions of yen)

27
SoftBank
Vision FundFor the latest information, see“Shareholder Value per Share” on our website.

4

15.7

Sum of the following items- Value equivalent to SoftBank Group Corp.'s portion of SoftBank Vision Fund (“SVF”)'s holding value +accrued performance fee, etc.
- Assets to be transferred to SVF from SoftBank Group Corp.: value of investments, which are currently heldby SoftBank Group Corp. and planned to be transferred to SVF after April 2019, is calculated by theestimated value equivalent to SoftBank Group Corp.'s portion of SVF's future holding value at thecompletion of the respective transfer

9.0

3.2

23

Others2.7

Fair value of unlisted shares, etc. mainly held by SoftBank Group Corp.
Calculated by multiplying the number of Yahoo Japan shares held by SoftBank Group Corp. (1.83 billion
shares*2) by the share price of Yahoo Japan (¥338)

0.5
0.6

SBG stand-alone*1

2.8

6.7

On the premise of a future merger with T-Mobile, calculated by multiplying the number of Sprint shares heldby SoftBank Group Corp. (3.45 billion shares) by the assumed share price (the share price of T-Mobile($72.63) times the exchange ratio of 0.10256)

2.3
4.4
( 4)

4.5

Calculated by multiplying the equity value ($32.8 billion) based on the acquisition cost by shareholding ratioof SoftBank Group Corp. (75.01%) excluding the number of shares held by SVF

Calculated by multiplying the number of SoftBank Corp. shares held by SoftBank Group Corp. (3.18 billion
shares) by the share price of SoftBank Corp. (¥1,401.5)
Calculated by multiplying the number of Alibaba shares held by SoftBank Group Corp. as of December 31,
2018 (0.66 billion shares, excluding those pledged for Mandatory Exchangeable Trust Securities (0.09 billion
shares)) by the share price of Alibaba ($179.59)

Calculation of net interest-bearing debt of SBG stand-alone*1
Consolidated
Interestinterest-bearing bearing debt
debt
of selffinancing
subsidiaries*1

13.1

Equity valueof holdings

Net interestbearing debt of
SBG stand-alone*1

Shareholder
valueInterest-bearing Cash position
debt
etc.

Net interestbearing debt

• Consolidated interest-bearing debt: excludes deposits for banking business of The Japan Net Bank
• Interest-bearing debt of self-financing subsidiaries*1: includes financial liabilities relating to the sale of
Alibaba shares by variable prepaid forward contract (¥0.7 trillion)• Interest-bearing debt of SBG stand-alone*1: adjusted the following items- JPY Hybrid Bonds issued in September 2016: 50% of outstanding amount, which is recorded as debt inconsolidated B/S, is excluded from debt
- USD Hybrid Notes issued in July 2017: 50% of outstanding amount, which is recorded as equity inconsolidated B/S, is treated as debt
- JPY Hybrid Loan executed in November 2017: 50% of outstanding amount, which is recorded as debt inconsolidated B/S, is excluded from debt
• Cash position, etc. of SBG stand-alone*1: adjusted the estimated impacts of the following items- Estimated tax payment related to disposal of the shares of SoftBank Corp.
- Estimated cash proceeds and contribution to capital calls related to the assets transfer to SVF from
SoftBank Group Corp. after April 2019
- Future proceeds from sale of Supercell- Estimated cash proceeds and contribution to capital calls related to the assets transfer of SVF from
SoftBank Group Corp. and Delta Fund that are already completed by the end of March 2019
Note: Based on data as of March 31, 2019 unless otherwise stated
Share prices: (Japan) closing price as of May 9, 2019, (U.S.) closing price as of May 8, 2019
Exchange rate: USD/JPY=¥110.01*1 Excluding self-financing subsidiaries from the consolidated accounts. Self-financing subsidiaries are SoftBank
Corp., Sprint, SVF, Yahoo Japan, Arm, etc.
*2 Before issuance of new shares through a third-party allotment to SoftBank Corp. and acquisition of its own
shares through a tender offer by Yahoo Japan Corporation. See page 56 “Issuance of New Shares by Yahoo
Japan Corporation through Third-Party Allotment to SoftBank Corp. and Acquisition by Yahoo Japan
Corporation of Its Own Shares through Tender Offer” for details.

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032

Corporate Governance
Basic views

Governance system

The Company is guided by a fundamental concept of “free, fair, and innovative,” and a corporate
philosophy of “Information Revolution – Happiness for Everyone.” The Company aims to be a providerof essential technologies and services to people around the world while maximizing its enterprise value.
SoftBank Group Corp. (“SBG”) recognizes that it is vital to maintain effective corporate governance in order to realize this vision. Accordingly, SBG continues to strengthen governance bytaking measures such as formulating the “SoftBank Group Charter” to share the Company’s
fundamental concept and corporate philosophy, devising “Group Company Management Regulations of the SoftBank Group” to set out the management policy and management framework forGroup companies, and establishing compliance with the “SoftBank Group Code of Conduct,”which has been upgraded in June 2019 from “SoftBank Group Officer and Employee Code of
Conduct,” to prescribe policies to be followed by the Company and its Board directors and employees, among other matters.

(1) Board of Directors
SBG’s Board of Directors consists of 12 Board directors, including three external Board directors.
The chairman and CEO serves as the chairman of the Board. The Board’s purpose is to makeimportant decisions on the execution of duties and oversee Board directors’ execution of duties.
SBG ensures adequate independence of the three external Board directors, who bring a wealth ofknowledge and experience to the Board related to business management and other matters. Eachexternal Board director participates actively in the discussions at Board meetings and makes
management judgments and decisions based on these discussions.
Agenda items for discussion at the Board of Directors meetings are set forth in the “Board of
Directors Regulations.” The Board discusses the following: (i) Statutory matters; (ii) Critical mattersrelated to business management, such as (a) fundamental management policy, business plans,and (b) matters such as investments and loans and borrowings, etc., exceeding a certain amount;(iii) Certain matters related to subsidiaries (excluding listed subsidiaries and their subsidiaries), suchas investments and loans and borrowings, etc., exceeding a certain amount; and (iv) Other matters. Authority to decide matters other than these agenda items discussed by the Board of Directors is delegated to committees, Board directors, and department managers to enable speed andflexibility in corporate activities.
To elect Board directors, the Board of Directors selects candidates in accordance with SBG’s
Articles of Incorporation and the Board of Directors Regulations, and these candidates are proposed at the Annual General Meeting of Shareholders.

Corporate governance system
General Meeting of Shareholders
Election / dismissal ofmembers of Audit &Supervisory Board

Election / dismissalof directors

Election / dismissal ofindependent auditor
ReportBoard of Directors
12 directors

Audit

3 External
directors
Election ofmembers / partial
delegation of
authority

Call /
report on
execution
situation

4 members

Supervision /election /dismissal

ReportCooperation

Briefing /cooperation

Audit &
Supervisory
Board Office

Briefing

Cooperation

ReportReportInvestment Committee

Independent
Auditor3 External
members

Chairman & CEO

ReportBriefing

Audit & Supervisory Board

Election of chairperson /partial delegation of authority

Brand Committee

Internal Audit
Department(2) Investment Committee
The Investment Committee has the purpose of making decisions on matters for which it has beendelegated authority by the Board of Directors, in order to carry out corporate activities flexibly. The
committee comprises five Board directors elected by the Board (Masayoshi Son, Ronald D. Fisher,Marcelo Claure, Katsunori Sago, and Rajeev Misra).
The agenda items for discussion at the Investment Committee are set forth in the “Regulationsof the Investment Committee.” The committee makes decisions on the following matters: (i)Matters such as investments and loans and borrowings under a certain amount; (ii) Certain matters related to subsidiaries (excluding listed subsidiaries and their subsidiaries), such as (a) investments and loans and borrowings, etc., under a certain amount, (b) issue and gratis issue of new
stock or stock acquisition rights, etc. (except matters such as the issue of new stocks that will notalter the shareholding ratio), (c) issue of corporate bonds, (d) overseas business expansion, and (e)entry into new business fields; and (iii) Other matters.

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Corporate GovernanceThe committee makes decisions through the Electronic Investment Committee System, andsuch decisions are only approved by unanimous agreement from all members. If one or moremembers is against a proposal, it is brought to the Board of Directors. All final decisions of thecommittee are reported to the Board of Directors.
(3) Brand Committee
The Brand Committee has been delegated authority by the Board of Directors to make decisions
on and properly manage matters related to the “SoftBank” brand. The committee comprises fivemembers, the chairperson (Senior Vice President Yoshimitsu Goto), who has been selected by the
Board of Directors, and four members appointed by the chairperson (Senior Vice President
Kazuko Kimiwada, the head of the Legal Department Natsuko Oga, the head of the Corporate
Communications Office Takeaki Nukii, and the head of the General Administration Department
Tatsuya Iida).
The agenda items for discussion at the Brand Committee are set forth in the “Regulations of
the Brand Committee.” The committee discusses the following: (i) Certain matters related to thelicensing of the “SoftBank” brand; (ii) Matters related to a consideration for use of the “SoftBank”
brand; (iii) Cancellation of licensing of the “SoftBank” brand; (iv) Basic policy and importantmatters related to the management of the “SoftBank” brand; and (v) Certain matters other than
the above related to the “SoftBank” brand.
The Brand Committee makes decisions through an electromagnetic means, in principle, andsuch decisions are only approved by unanimous agreement from all members. All decisions madeby the committee are reported to the Board of Directors.

Audit & Supervisory Board members and the Audit & Supervisory Board
Audit & Supervisory Board members attend the Board of Directors meetings, allowing them tomonitor and verify the decision-making of the Board and fulfillment of the Board’s obligation tosupervise the execution of duties by each Board director. Moreover, Audit & Supervisory Board
members receive regular reports from Board directors, employees, and Audit & Supervisory Board
members and other personnel of major subsidiaries and conduct hearings, as necessary, to audit
the execution of duties by the Board directors of SBG.
The Audit & Supervisory Board has been established to receive reports on, deliberate, andresolve important matters related to audits. The Audit & Supervisory Board consists of four Audit& Supervisory Board members, three of whom are external Audit & Supervisory Board members(two full-time members and two part-time members), and is chaired by a full-time, internal Audit& Supervisory Board member. SBG ensures adequate independence of the three external Audit &Supervisory Board members, who possess a wealth of knowledge and experience in their professional roles as a lawyer, certified public accountant, or certified tax accountant.
The Audit & Supervisory Board meets once a month, in principle. At the meeting, Audit &Supervisory Board members decide on the audit policy, plan, and other matters; receive quarterly
briefings and reports related to the earnings results from the independent auditor; and exchange
information and opinions with the independent auditor, as necessary. The Audit & Supervisory
Board also explains details of the audit plan for each fiscal year, interim audit status, and audit
results to the Board of Directors.
The Audit & Supervisory Board Office has been established to support the duties of all Audit &Supervisory Board members and it comprises three dedicated personnel who act under the direction of Audit & Supervisory Board members to gather information; investigate financial statements, requests for approval, treasury stock, and matters related to the General Meeting of
Shareholders, among other matters; and give other assistance.

Disclosure of policy on determining remuneration amounts andcalculation methods
Overview of the remuneration system for Board directors andAudit & Supervisory Board members
While referring to results of remuneration surveys conducted by a specialized organization, SBG
ensures the appropriateness of its remuneration system for Board directors and Audit & Supervisory Board members, so that the system provides remuneration that is competitive enough toattract global talent.
The total remuneration comprises fixed remuneration and performance-linked remuneration.
Furthermore, the performance-linked remuneration comprises cash bonuses based on short-term
performance and share-based payments based on medium- to long-term performance, and their
proportion is determined individually.
The remuneration for Board directors, whose main duty is to serve as officers of subsidiaries
and Group companies, is paid by said subsidiaries and Group companies, and such amounts are
determined based on the remuneration policy of each company.
The remuneration for external Board directors and Audit & Supervisory Board members consists
exclusively of fixed remuneration.

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Corporate GovernanceCalculation of performance-linked remuneration
The performance-linked remuneration is determined on an individual basis by comprehensively
taking into account individual performance based on the demonstration of capabilities andachievements of each officer and SBG’s business performance in accordance with consolidated
operating income, consolidated net income, stock prices, and other factors.

The results of the evaluation were reported at the Board of Directors’ meeting held in April 2019,
and the Board has confirmed that it will make improvements with regard to the indicated issues.
SBG will continue to conduct evaluations of the effectiveness of the Board of Directors going
forward in an effort to make the Board even more effective.

Policy for constructive dialogue with shareholders
Body to decide the policy on determining remuneration amounts and determination procedures
The remuneration paid to Board directors shall not exceed ¥5 billion for cash payments and ¥5billion for share-based payments, pursuant to the resolution of the 38th Annual General Meetingof Shareholders held on June 20, 2018. The remuneration paid to Audit & Supervisory Board
members shall not exceed ¥80 million, pursuant to the resolution of the 10th Annual General
Meeting of Shareholders held on June 28, 1990.
Entrusted by the Board of Directors, representative director determines the remuneration for
Board directors based on the aforementioned results of remuneration surveys, taking into accountthe social status and relative position of each Board director, his or her level of contribution to
SBG, and other factors.
The remuneration for Audit & Supervisory Board members is determined through deliberation
by Audit & Supervisory Board members.

SBG works to promote constructive dialogue with shareholders and other investors by assigning IR
duties to the senior vice president and has established the Investor Relations Department as the
responsible department. The department conducts IR activities in close coordination with the
Accounting, Finance, Legal, General Administration, and other related departments. SBG discloses
this structure on its website and in its Corporate Governance Report.
Management and the Investor Relations Department respond to requests for dialogue fromshareholders and other investors within reason, paying careful attention to the handling of material facts subject to insider trading regulations. In addition to individual investor discussions, SBG
holds earnings results briefings and briefings for retail investors to explain the status of its businesses to shareholders and other investors.
The Investor Relations Department compiles the opinions received from shareholders and otherinvestors through dialogue and periodically reports them to management.

Summary of results of the Board of Directors’ evaluation

Basic views on the internal control system and the progress of system development

From November 2018 to April 2019, SBG had an independent organization conduct interviews
with all of its external Board directors and Audit & Supervisory Board members from the perspective of the composition, operation, and support systems of the Board of Directors, and conducted
an evaluation of the effectiveness of the Board based on the results of the interviews.
The results of the evaluation confirmed the overall efficacy of the Board of Directors. Meanwhile, among the matters pointed out as issues in the evaluation in the previous fiscal year, it wasnoted that the explanations given at the Board of Directors meetings, the substance of Board
meeting materials, and the scope of matters reported by the Board of Directors, among othermatters, should be further improved. Also highlighted was the necessity for securing more time
for deliberation on complicated investment projects at the Board of Directors meetings, and forconsidering the establishment of a nominating committee and a remuneration committee in order
to discuss the election, dismissal, and remuneration of management executives as well as officers
and employees of subsidiaries.

Please refer to Corporate Governance Report for the Company’s basic views on the internal
control system and the progress of system development.

See Corporate Governance Report on our website.

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Message from an External Board Director

An External Board Director’s View of
the SoftBank Group’s Governance Model

geration to say that they are one of the most important pillarsof SBG’s governance.

became CEO of MITSUI & CO. after serving in a range of
positions in this single company. I am confident that I can help
enhance the corporate value of SBG by using the experienceand knowledge that I have accumulated while serving invarious positions at a company that has had a succession ofCEOs during its long history, from a salesman in frontline
operations and an on-site leader, to a senior executive. One
example of an area in which I can contribute is the “defensive”
area of internal control and risk management. No company isperfect. Each has its strengths and weaknesses, and SBG is no
exception. While SBG has a progressive business model and isenergetically pursuing a growth strategy through proactive
business management, I think that companies with long histories have a little more experience with respect to “defensive”
systems. I believe that providing support in this regard is one of
my roles as a board director. As SBG launches forays into newfields, there are sure to be fields where the insight and expertise developed through my work at a general trading company
will prove useful. In such fields, I want to actively offer myopinions with a view to maximizing corporate value.

My role as a director of an investment company

SoftBank Group Corp.’s tasks going forward

Most of the directors of SoftBank Group Corp.(“SBG”), including me, are or were CEOs. Thus, at SBG those tasked withbeing the ultimate decision maker in their respective companies conduct discussions in earnest and with a sense of responsibility. I should add that the weightiness of these discus-

SBG has transformed into a strategic holding company. Whenexamining investments, I pay most attention to the significancea proposed investment would have for the SoftBank Group asa whole. What elements would be required to maximize thissignificance? How could the Group minimize the various risks
associated with the investment? In the worst-case scenario,
how would the Group respond? I offer my opinions after giving
due consideration to such questions and remaining mindful ofsions and decisions is considerable. Another significant featureof SBG’s governance is that most of the directors are in effectserving as external board directors. For example, directors fromthe subsidiary Arm and the associate Alibaba are treated assynergies in the entire Group.
When participating in discussions, I intend to make use of
my experience. Unlike Chairman & CEO Masayoshi Son or
Board Director Tadashi Yanai, I am not a company founder. I

The development of executives is one task going forward. In myview, SBG owes a great deal of its growth and success so far tothe business management abilities of Mr. Son and to the strong
network of personal contacts that has been built. To continue
growing, the entire Group must foster personnel who can
support Mr. Son and assume the management in the future.
As a senior executive of a general trading company, I havedevoted a lot of attention to developing personnel, particularly
the development of executives capable of becoming my successor. I intend to draw on this experience to closely monitor
the development of SBG’s personnel.

“internal” directors because each company has capital ties
with SBG. At the Board of Directors meetings, however, these
directors and most other participants examine the business
management of SBG from an external board director’s perspective. They maintain a high degree of independence,
enabling them to “apply the brakes” at various points indiscussions. Taking into consideration all of the above, I believe
the Board of Directors meetings function soundly.
A further feature of SBG’s governance is measures to enliven
discussions. At the Board of Directors meetings, after the
discussion of important agenda items, time is set aside for free
discussion. During these sessions, directors are free to introduce and discuss topics they feel are important. Such free
discussions are extremely significant. It would not be an exag-

Masami Iijima
External Board Director, Independent Officer,
SoftBank Group Corp.

SoftBank Group Corp.’s unique governance system

SoftBank Group Corp.
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Corporate Information

036

Board Directors and Audit & Supervisory Board Members
As of June 19, 2019

Directors

Chairman & CEO

Board Director, Vice Chairman

Board Director, Executive Vice President & COO

Board Director, Executive Vice President & CSO

Masayoshi Son

Ronald D. Fisher

Marcelo Claure

Katsunori Sago

Sep 1981

Founded SOFTBANK Corp. Japan (currently
SoftBank Group Corp.), Chairman & CEO

Jul 1984

President, Interactive Systems Corp.

Jun 1995

Owner, USA Wireless, Inc

Apr 1992

Jan 1990

CEO, Phoenix Technologies Ltd.

Oct 1996

President, Small World Communications, Inc.

Jan 1996

President & CEO, Yahoo Japan Corporation

Oct 1995

Sep 1997

Founder, Chairman & CEO, Brightstar Corp.

Oct 2005

Director, Alibaba.com Corporation (currently
Alibaba Group Holding Limited; to present)

Director and president, SoftBank Holdings Inc.
(to present)

May 1997 Head of Derivatives Trading, Fixed Income
Division, Goldman Sachs JapanSep 2008

Jun 1997

Owner, Bolivar Administracion, Inversiones Y
Servicios Asociados S.R.L. (to present)

Chairman of the Board, President & CEO,
Vodafone K.K. (currently SoftBank Corp.)

Board Director, SoftBank Corp.
(currently SoftBank Group Corp.)

Jan 2014

Member of the Board, Sprint Corporation

Jul 2013

Vice Chairman of the Board,
Sprint Corporation (to present)

Feb 2014

Founder and Director, Miami Beckham United(to present)

Director, Brightstar Global Group Inc.

Apr 2006

Joined Goldman Sachs JapanJan 2007

Director, Co-head of Pan-Asia Equities Division
and Fixed Income Currency and Commodities
Division, Goldman Sachs Japan Co., Ltd.

Jan 2011

Director, Deputy President,
Goldman Sachs Japan Co., Ltd.

Jul 2013

Chairman of the Board, Sprint Corporation

Jun 2015

Director, Yahoo Japan Corporation (to present)

Jan 2014

Aug 2014 President & CEO, Sprint Corporation

Jul 2014

Vice Chairman, Goldman Sachs Japan Co., Ltd.

Sep 2016

Chairman and Executive Director,
ARM Holdings plc(currently SVF HOLDCO (UK) LIMITED)Aug 2014 Chairman, Brightstar Global Group Inc.

Jan 2015

Member of the Board, CTIA

Feb 2015

Special Adviser to the Financial Services Agency

Sep 2016

Director, ARM Holdings plc(currently SVF HOLDCO (UK) LIMITED)Jan 2017

Chairman of the Board, CTIA

Jun 2015

Board Director, SoftBank Group Corp.

Executive Vice President,JAPAN POST BANK Co., Ltd.

Chairman & CEO, SoftBank Group Corp.
(to present)

Jun 2017

Dec 2016

Director, SB Investment Advisers (US) Inc.

Mar 2018

Director, Arm Limited (to present)

Jun 2016

Jun 2017

Board Director, Vice Chairman,
SoftBank Group Corp. (to present)

May 2018 Executive Chairman, Sprint Corporation(to present)

Director and Representative Executive Vice
President, JAPAN POST BANK Co., Ltd.

Jun 2018

Dec 2017

Director and Chairman,
SB Investment Advisers (US) Inc. (to present)

Jun 2018

Board Director, Executive Vice President & COO,
SoftBank Group Corp. (to present)

Board Director, Executive Vice President & CSO,SoftBank Group Corp. (to present)

Mar 2018

Director, Arm Limited (to present)

Mar 2019

Chairman, Brightstar Global Group Inc.
(to present)

Jun 2017
Mar 2018

Chairman and Director, Arm Limited(to present)

Apr 2018

Chairman, SoftBank Corp. (to present)

May 2018 Director of the Board, Sprint Corporation(to present)

May 2019 Chairman of the Board,
Fortress Investment Group LLC (to present)SoftBank Group Corp.
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037

Board Directors and Audit & Supervisory Board Members
As of June 19, 2019

Directors

Board Director, Executive Vice President

Board Director

Board Director

Board Director

Rajeev Misra

Ken Miyauchi

Simon Segars

Yun MaDec 1985

Joined Los Alamos National Laboratory

Feb 1977

Joined Japan Management Association

Mar 1991

Founded China Pages, President

Joined Realty Technologies Pty Ltd

Oct 1984

Joined SOFTBANK Corp. Japan(currently SoftBank Group Corp.)

Joined Advanced RISC Machines Limited(currently Arm Limited)Feb 1995

Jul 1986

Jan 1998

President, MOFTEC EDI Centre

Feb 2001

Vice President, Engineering, ARM Holdings plc(currently SVF HOLDCO (UK) LIMITED)Jul 1999

Director, Alibaba.com Corporation(currently Alibaba Group Holding Limited)

Jan 2004

Executive Vice President, Worldwide Sales,
ARM Holdings plc(currently SVF HOLDCO (UK) LIMITED)Nov 1999

Director, Chairman of the Board and CEO,
Alibaba Group Holding Limited

Aug 1991 Joined Merrill Lynch (Currently Bank ofAmerica Merrill Lynch)

Feb 1988

May 1997 Joined Deutsche Bank AG as
Managing Director

Board Director, SOFTBANK Corp. Japan(currently SoftBank Group Corp.)

Apr 2006

May 2001 Global Head of Credit, Emerging Markets,
Deutsche Bank AG

Executive Vice President, Director & COO,
Vodafone K.K. (currently SoftBank Corp.)

Jun 2007Jun 2007

Representative Director & COO, SoftBank
Mobile Corp. (currently SoftBank Corp.)

Jan 2005

Executive Director, ARM Holdings plc(currently SVF HOLDCO (UK) LIMITED)

Board Director, SoftBank Corp.
(currently SoftBank Group Corp.; to present)

Oct 2007Jun 2012

Director, Yahoo Japan Corporation (to present)

Sep 2007

Non-Executive Director, Chairman,
Alibaba.com Limited

Jun 2013

Representative Director,
Senior Executive Vice President, SoftBank Corp.
(currently SoftBank Group Corp.)

EVP and GM, Physical IP Division,
ARM Holdings plc(currently SVF HOLDCO (UK) LIMITED)May 2013 Executive Chairman,
Alibaba Group Holding Limited (to present)

Apr 2009

Joined UBS Group AG

Jan 2010

Global Co-Head of Fixed Income, Currencies
and Commodities, UBS Group AG

May 2014 Joined Fortress Investment Group LLC as
Senior Managing Director and Partner
Nov 2014

Joined SoftBank as the Head of Strategic
Finance for the GroupMay 2017 CEO, SoftBank Investment Advisers,
the manager of SoftBank Vision Fund(to present)

Jan 2013

President, ARM Holdings plc
CEO, ARM Holdings plc(currently SVF HOLDCO (UK) LIMITED)Apr 2015

President & CEO, SoftBank Mobile Corp.
(currently SoftBank Corp.)

Jul 2013

Apr 2018

Board Director, SoftBank Group Corp.
(to present)

Mar 2014

Director, Global Semiconductor AllianceFeb 2015

Non-Executive Director,
Dolby Laboratories, Inc. (to present)

Jun 2018

President & CEO, SoftBank Corp. (to present)

Jun 2017

Board Director, SoftBank Group Corp.

May 2017 Director, TechWorks, Inc. (to present)

Dec 2017

Board Director,
Fortress Investment Group LLC (to present)

Jun 2017

Board Director, SoftBank Group Corp.
(to present)

Jun 2018

Board Director, Executive Vice President,
SoftBank Group Corp. (to present)

Mar 2018

CEO, Arm Limited (to present)

Oct 2018

Vice Chairman and Director,
Global Semiconductor Alliance (to present)SoftBank Group Corp.
ANNUAL REPORT 2019

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038

Board Directors and Audit & Supervisory Board Members
As of June 19, 2019

Directors

External Directors

Board Director

Board Director, Independent Officer

Board Director, Independent Officer

Board Director, Independent Officer

Yasir O. Al-Rumayyan

Tadashi Yanai

Masami Iijima

Yutaka Matsuo

Dec 2010

CEO and Board Member,
Saudi Fransi Capital LLC

Aug 1972 Joined Ogori Shoji Co., Ltd.
(currently FAST RETAILING CO., LTD.)Apr 1974

Joined MITSUI & CO., LTD.

Apr 2002

Apr 2006

Board Member,
Saudi Stock Exchange (Tadawul)

Sep 1972

Director, Ogori Shoji Co., Ltd.

Aug 2005 Visiting Scholar, Stanford University

Sep 1984

President & CEO, Ogori Shoji Co., Ltd.

Managing Officer, Chief Operating Officer ofIron & Steel Raw Materials and Non-Ferrous
Metals Business Unit, MITSUI & CO., LTD.

Oct 2007

Sep 2015

Managing Director and Board Member, Public
Investment Fund (PIF) of Saudi Arabia

Jun 2001

Board Director, SoftBank Corp.
(currently SoftBank Group Corp.; to present)

Associate Professor, Graduate School ofEngineering, the University of Tokyo

Apr 2019

Jun 2016

Board Member,
Uber Technologies, Inc. (to present)

Sep 2005

Chairman, President & CEO,FAST RETAILING CO., LTD. (to present)

Managing Officer, Chief Operating Officer ofMineral & Metal Resources Business Unit,
MITSUI & CO., LTD.

Professor, Graduate School of Engineering,
the University of Tokyo (to present)

Apr 2008

Board Member, Saudi Aramco (to present)

Nov 2005

Chairman, President & CEO,UNIQLO CO., LTD. (to present)

Executive Managing Officer,
MITSUI & CO., LTD.

Jun 2019

Jun 2016

Board Director, SoftBank Group Corp.
(to present)

Jun 2008

Representative Director, Executive Managing
Officer, MITSUI & CO., LTD.

Feb 2014

Aug 2016 Board Member,
Saudi Industrial Development Fund (to present)
Dec 2016
Jun 2017
Jul 2017

Chairman, Saudi Decision Support Center(to present)
Board Director, SoftBank Group Corp.
(to present)
Chairman, Sanabil Investments (to present)

Sept 2008 Chairman, GOV RETAILING CO., LTD.
(currently G.U. CO., LTD.; to present)

Apr 2007

Oct 2008

Jun 2009

Director, Nippon Venture Capital Co., Ltd.
(to present)

Representative Director, Senior Executive
Managing Officer, MITSUI & CO., LTD.

Apr 2009

Nov 2011

Director, LINK THEORY JAPAN CO., LTD.
(to present)

Representative Director, President and Chief
Executive Officer, MITSUI & CO., LTD.

Apr 2015

Representative Director, Chairman of the Boardof Directors, MITSUI & CO., LTD. (to present)

Jun 2016

Director, Ricoh Company, Ltd. (to present)

Jun 2018

Board Director, SoftBank Group Corp.
(to present)

Jun 2019

Counsellor, Bank of Japan (to present)

Jun 2019

Director, Isetan Mitsukoshi Holdings Ltd.
(to present)

May 2018 Director, Arm Limited (to present)
May 2019 Governor and Board Member,
Public Investment Fund (PIF) of Saudi Arabia(to present)

Researcher, National Institute of Advanced
Industrial Science and Technology

SoftBank Group Corp.
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039

Board Directors and Audit & Supervisory Board Members
As of June 19, 2019

Audit & Supervisory Board Member

External Audit & Supervisory Board Members

Full-time Audit & Supervisory Board Member

Full-time Audit & Supervisory Board Member,
Independent Officer

Audit & Supervisory Board Member

Audit & Supervisory Board Member,
Independent Officer

Masato Suzaki

Maurice Atsushi Toyama

Soichiro Uno

Hidekazu Kubokawa

Certified public accountant, State of California, U.S.

LawyerCertified public accountant, certified tax accountant

Sep 1977

Apr 1988

Apr 1975

Joined Mitsubishi Corporation

Dec 1983

Master of Business Administration (MBA),
School of Global Management (U.S.)

Feb 2002

Joined SoftBank Corp.
(currently SoftBank Group Corp.)
General Manager of Legal Department

Jul 2012

Oct 2013

Sep 2016

Jun 2017

Corporate Officer, General Manager of Legal
Department, SoftBank Corp.
(currently SoftBank Group Corp.)
Corporate Officer, General Manager of Legal
Department, SoftBank Corp.
(currently SoftBank Group Corp.);Group Compliance Officer
Corporate Officer, Head of Legal Unit; General
Manager of Legal Department of SoftBank
Group Corp.; Group Compliance Officer
Full-time Audit & Supervisory Board Member,
SoftBank Group Corp. (to present)

Joined San Francisco office of Price Waterhouse (currently PricewaterhouseCoopers)

Aug 1981 Certified public accountant,State of California, U.S.
Jun 2006

Partner, PricewaterhouseCoopers Aarata

Jun 2015

Full-time Audit & Supervisory Board Member,
SoftBank Corp. (currently SoftBank Group
Corp.; to present)

Joined Nagashima & Ohno Law Office(currently Nagashima Ohno & Tsunematsu),
admitted to practice law in Japan

Nov 1993

Passed the bar examination of
the State of New York, U.S.

Jan 2000

Partner, Nagashima Ohno & Tsunematsu(to present)

Nov 1976

Joined Chuo Accounting Corporation

Aug 1980 Registered as a certified public accountant
Jul 1986

Founded Kubokawa CPA Office(currently Yotsuya Partners Accounting Firm),
Representative Partner (to present)

Mar 1987

Registered as certified tax accountant

Feb 1989

Audit & Supervisory Board Member,
SOFTBANK Corp. Japan(currently SoftBank Group Corp.; to present)

Jun 2004

Audit & Supervisory Board Member,
SoftBank Corp.
(currently SoftBank Group Corp.; to present)

Mar 2000

Jun 2018

Director (Audit & Supervisory Committee
Member), Dream Incubator Inc. (to present)

Audit & Supervisory Board Member,
Digital Arts Inc.

Jun 2005

Corporate Auditor,
KYORITSU PRINTING CO., LTD.

Jun 2006

Auditor, Pado Corporation

Aug 2011 Supervisory Director,
HEIWA REAL ESTATE REIT, Inc. (to present)
Jun 2016

Director (Audit & Supervisory Committee
Member), Digital Arts Inc. (to present)SoftBank Group Corp.
ANNUAL REPORT 2019

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Corporate Information

040

Compliance
Commitment to complying with the law and integrity
The Company is committed to complying with the law and more. We believe a commitment to integrity
must be the foundation for our business. The Company strives to create an organization where every
officer and employee demonstrates the highest degree of ethical conduct in every action they take.
We will also continue to make a positive difference in the world as a leading corporate citizen
and as a valued neighbor in the communities where we work and live.

The GCO and CCOs have the responsibility to implement systems designed to ensure compliance with the law and to promote ethical conduct. The GCO and CCOs also have the authority,
and responsibility, to stop actions that may violate laws or Company policies. The GCO and CCOs
periodically report material incidents and risks together with activities of their ethics and compliance program to their respective boards.
SBG will hold the global CCO forum periodically to mitigate risks, share best practices, andstrengthen the relationship with subsidiaries.

Organizational structure
GCO and CCOs
The Board of Directors of SoftBank Group Corp. (“SBG”) has the exclusive authority to appoint agroup compliance officer (GCO) as the chief officer responsible for compliance across the Company. In June 2019, Chad Fentress was appointed as the new GCO. Similarly, each subsidiaryappoints a chief compliance officer (CCO).

Ethics and compliance program
The Company’s ethics and compliance program is based on industry best practices and a continuous improvement model. By employing the Plan-Do-Check-Act cycle, we constantly evaluate theeffectiveness of our program and make changes based on the results we measure and observe.

Oversight of program
In 2019, SBG established the Group Risk and Compliance Committee to provide oversight to therisk management and ethics and compliance programs of the Company. This committee membership includes senior leaders of SBG. The committee reviews risk assessments, risk mitigation,
incidents, and other key performance indicators that measure the effectiveness and activities of
the risk management and ethics and compliance programs. The committee reports regularly to
SBG’s Board of Directors on the effectiveness of those programs.

Group Compliance Structure (As of April 2019)
Board of Directors of SoftBank Group Corp.
Oversight

ReportGroup Risk and Compliance
Committee of
SoftBank Group Corp.
Oversight

Appoint

ReportStandards and controls

ReportGroup Compliance Officer
Report/consult
Appoint

AssistHead Office of Group Compliance
CCO Forum(held periodically)

Direct/advise/guide

Subsidiary
Chief compliance officer

ReportSubsidiary
Chief compliance officer
Report/consult

Employee

Subsidiary
Chief compliance officer

SBG first adopted the SoftBank Group Code of Conduct in 2005. As part of our rapid businessexpansion across the globe, SBG has substantially enhanced the SoftBank Group Code of Conduct and Group Policies. Our revised Code of Conduct is more comprehensive and enriched withspecific examples, Q&As, definitions, and red flags to guide the Company’s officers and employees to ethical conduct.
SBG has implemented Group Policies that establish Groupwide minimum requirements across
key risk areas such as anti-corruption, competition, conflicts of interests, insider trading, economic
sanctions, information security, privacy, human rights, and brand management.

SoftBank Group Corp.
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Corporate Information

041

ComplianceTraining and awarenessMonitor audit and review

The Company conducts training and awareness-raising activities to ensure that officers and employees recognize risk areas and have the information they need to make the right choices. As
one example of those activities, SBG holds a Compliance Awareness Month annually for officers
and employees of main subsidiaries in Japan and conducts an integrity test to assess their own
level of understanding.
SBG also provides training for directors and officers of main subsidiaries in Japan. In this training, participants learn the essence of various risks and how to address them through group discussions based on case studies of actual incidents that have occurred in the Company or potential
risks. The Company strives to minimize risks and enhance management efficiency.
SBG is establishing minimum standards across the Company and standardizing training incertain risk areas.

The Company has implemented ethics and compliance helplines to assist employees, officers orothers such as business partners to ask for advice or to make reports of misconduct. These include
a helpline hosted by an external legal counsel. Allegations and consultations may be made anonymously, as permitted by local laws. The Company received several hundred reports and requests
for advice in fiscal year 2018. SBG is currently implementing a global ethics and compliancehelpline across the Company where users may easily report concerns or seek advice using a
web-based tool or by telephone. In addition, CCOs are responsible for maintaining helplines fortheir respective group companies. Significant substantiated cases must be reported to the GCO.
SBG also conducts a regular employee survey designed to measure our ethical culture. SBG uses
the results of the survey to target messaging about our program or take other action as appropriate.

Risk assessment
Each subsidiary undergoes periodic risk assessments, control evaluations, and mitigation planning.
SBG is creating a new function in our program that will support each subsidiary in identifying its
key ethics and compliance risks, evaluate the effectiveness of its controls, and mitigate those risks.

Architecture of ethics and compliance program

Oversight of Program
Leadership
GovernanceRisk Assessment
Across the Group
Oversee mitigation

Monitor, Audit and Review
Ethics and compliance helplines
Employee surveys
Internal auditsStandards and Controls
Code of Conduct
Group Policies
Controls

Training and Awareness
Computer-based testing
Live
Regular communications

SoftBank Group Corp.
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Risk Management
The Company conducts risk management throughout the Group.
We have built a group-wide system to anticipate potential risks and prevent the materialization of these risks
as well as to minimize losses in situations where serious risks may materialize.

Risk management system
The Group Company Management Regulations of the SoftBank Group set out our fundamental
approach to risk management. Based on the regulations, the Company has appointed risk officers
and built a system to prevent and mitigate risks in business activities. Further, when an emergency
occurs, appropriate responses as a corporate group are determined according to a designatedescalation flow from the Group’s subsidiaries, associates, and jointly controlled companies to
SoftBank Group Corp. (“SBG”).
In addition, SBG has been strengthening the risk management capabilities of the Group. For
example, we newly established the Group Risk and Compliance Committee (GRCC) in 2019,
which oversees risk management of the entire Group.

Risk management system
SoftBank Group Corp.
Board of Directors

Group Risk and Compliance Committee

Risk Management Officer

Risk management initiatives
SBG operates a risk management Plan–Do–Check–Act cycle under the supervision of the GRCC.
Doing so enables SBG to understand potential risks and the occurrence of incidents at groupcompanies, as well as to identify significant risks and issues at the Group level. Following the
aforementioned cycle, SBG regularly collects such information as the results of risk assessmentsfrom Group companies. By analyzing this information, SBG identifies material risks that could giverise to losses in the Group. Such findings as well as the status of risks of the entire Group arereported to the Board of Directors. Through this process, SBG takes steps including deciding on
countermeasures for material risks and revising the risk management cycle.

Group company

Group company

Group company

Risk officer

Risk officer

Risk officer

042

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Initiatives for Sustainability

through its business activities. Under the SoftBank Group CSR Principles, theCompany is promoting its sustainability initiatives prioritizing the following
three themes.

1

Corporate Information

043

For details, see “CSR” on our website.

The Company seeks to contribute to society by bringing happiness to everyone

Building a healthy
Internet society

Financial Section

gramming classes that use Pepper robots contribute greatly to the development of children’s
logical thinking, problem-solving, and creativity, we are actively promoting the program in partnership with government agencies, municipalities, universities, and other educational institutions.

Launching programming education in North America

2

Cultivating a next
generation that has
dreams and aspirations

3

Protecting the planet’s
future through environmental protection

Pepper Social Contribution Program

In collaboration with educational institutions in the United States and Canada, since December
2018 we have been adapting the Pepper robot-enabled programming classes originally started inJapan. We are leveraging the experience and expertise gained from the program in Japan to offer
similar educational support in North America, thereby contributing to STEM education.*1 Currently, we provide these programming classes in the San Francisco Unified School District and at
Boston Public Schools, and plan to steadily increase the number of robots and expand the coverage area of the programming classes.
*1 An approach to education begun in the United States in the 2000s that emphasizes science, technology, engineering and mathematics (STEM)

As part of its social contribution activities, SoftBank Group Corp.
loans Pepper humanoid robots for educational use.

Arm initiatives

Using Pepper to support education
In April 2017, we began the Pepper Social Contribution Program using Pepper robots in programming classes. Our goal is to foster a new generation that can play an active role in an era whenpeople and robots coexist. Given that programming is to be introduced as part of a compulsory
elementary school curriculum from 2020, Pepper robots were loaned for use in over 25,000
programming classes at approximately 600 schools as of March 2019. Believing that robot pro-

Arm has established the “2030 Vision” in September 2015 to help achieve the Sustainable Development Goals (SDGs) and build a better future. The vision calls for the use of technology in cooperation
with companies, NPOs, educational institutions, governments, and other entities to establish optimalliving environments for everyone by 2030. For example, Arm supports Simprints Technology, a British
non-profit tech start-up based in Cambridge, which develops low-cost biometric identification systems.
The technology developed by the company is currently deployed in 11 countries and reaching over
250,000 beneficiaries. The company aims to scale this up to 4.1 million beneficiaries by 2021.
For details, see Arm’s “2030 Vision” website.

SoftBank Group Corp.
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Initiatives for Sustainability

Generation of renewable energy
In light of the accident at the Fukushima Daiichi Nuclear Power Station caused by the Great East
Japan Earthquake, which occurred on March 11, 2011, the SoftBank Group began engaging in
power generation projects using renewable energy to maintain the safety, reliability, and sustainability of the power supply.
Every year, we contribute a 2.05 million tonnes of reduction in CO2 emissions*2 by using
renewable energy to supply 2,552 GWh*3 of power, equivalent to 40% of a standard nuclear
power station’s output. Put another way, this reduction represents approximately 0.4% of the CO2
emissions generated by all the power stations in Japan. SB Energy Corp., a group subsidiary, has
36 solar power generation plants and a wind power generation plant (Wind Farm Hamada) in
operation throughout Japan, as of the end of March 2019. Overseas, meanwhile, the Group
operates Tsetsii Wind Farm, the first wind power project in Mongolia’s Gobi Desert, and solar
power generation plants in India.
We contribute significantly to the advancement of renewable energy in Japan and overseas. SB
Energy Corp. and SoftBank Group Corp. are founding members of the Japan Climate Initiative, a
network of companies and municipal authorities in Japan that are focused on realizing the carbon-free society called for by the Paris Agreement. Also, we have served as secretariat of theRenewable Energy Governors’ Alliance since its foundation in July 2011. Comprising Japan’s
prefectural governors, this organization aims to spread renewable energy. In addition, we are amember of and play active roles in international organizations related to renewable energy,
including the International Solar Alliance and Global Energy Interconnection Development andCooperation Organization.
As IoT progresses and big data accumulates, and as electricity-powered mobility becomes morecommon, power use is expected to rise significantly on a global scale. Accordingly, the Group will
promote the creation of an information-oriented society that anticipates energy generation needs.

044

Corporate Information

For details, see “CSR” on our website.

Renewable energy projects of the SoftBank Group (As of March 2019)
Tsetsii Wind Farm

50MW

Power supplied byusing renewable energy

Mongolia
Japan

RJ-4002,552 GWh per year

400MW
Emissions reduction

India

2.05 million ton of

AP-350CO2 per year

350MW

Power generated
in Japan

439 MW*2 The calculation of CO2 emissions reductions is based on the guidelines of the Ministry of Economy, Trade and Industry and Japan Photovoltaic Energy Association.
*3 Based on the expected annual power generation of respective power plants

Solar power plant
Solar power plant under construction
Wind power plant

SoftBank Group Corp.
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Corporate Information

Financial Section
Graphs: Consolidated Financial Data 046
Eleven-year Consolidated Financial Data 049
Management’s Discussion and Analysis of Results of Operations and Financial Position 051
Consolidated Financial Statements 082

Notes to Consolidated Financial Statements 090
Independent Auditor’s Report 204

045

SoftBank Group Corp.
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046

Corporate Information

Graphs I: Consolidated Financial Data
Fiscal year beginning April 1 and ending March 31 of the following year

Net sales

Adjusted EBITDA / Adjusted EBITDA margin(Billions of yen)(Billions of yen)

Adjusted EBITDA

10,0008,504.1

8,881.8 8,901.0

9,602.2

9,158.8

6,666.7

7,500

2,763.4 3,004.6

31.0

787.6

36.0

31.7

930.7 1,013.7

1,15272,041.6
1,778.5
24.0

28.8

26.2

28.4

’10

’11

’12

’13

’14

JGAAP

’15

’16

’18

’17

(FY)

0

’09

IFRSs

’10

’11

’12

+

Net sales

’13

’14

’15

’16

(Billions of yen)

1,600

1,691.3

1,500

+

675.3

799.4

919.1

924.0

15

600

465.9

0

’09

1,303.8
1,077.0
675.3

629.2

799.4

918.7

908.9

1,026.0

1,256.6

303.0

’10

’11

’12

’13

’14

’15

’16

’17

’18

(FY)

IFRSs

FY2018+

80.5% YoY

1,287.01

1,268.15

Operating income

Basic EPS

’12

FY2018

Income before income tax

’13

’14

’15

’16

’17

96.7

’18

(FY)

0

’09

189.7

’10
JGAAP

IFRSs

+

1,200

1,039.0

400

125.6

’11

1,500

933.54

800

384.6

JGAAP

(Yen)

1,411.2

900

814.6

712.5

465.9

’10

1,200

21.1% YoY
32.8%

1,426.3

1,200

1,213.0’0930

Income before income tax from SoftBank Vision Fund and Delta Fund

2,000

0

2,353.9

JGAAP

Adjusted EBITDA(Billions of yen)

629.2

1,800

Net income attributable to owners of the parent

Income before income tax

1,000

45

’18 (FY) 0’17

Adjusted EBITDA margin

Income before income tax

2,400

IFRSs

FY2018

4.8% YoY

60

26.7

JGAAP

FY2018

500

32.8

800

’09

Operating income from SoftBank Vision Fund and Delta Fund(Billions of yen)

2,564.5 2,605.1

2,325.2

1,600

3,202.4 3,202.5

Operating income

3,153.5 (%)

2,400

2,500
0

Adjusted EBITDA margin

3,200

28.5

5,000

Operating income

339.7% YoY

313.8

’11

372.5

520.3

474.2

’12

’13

’14

562.20

600

668.4

’15

300
’16

’17

’18

(FY)

0

89.39

’09

IFRSs

’10
JGAAP

FY2018Net income attributable to owners of the parent

175.28+

35.8% YoYFY2018

Basic EPS
Diluted EPS

Note: In fiscal 2018, the Company adopted IFRS 9 and IFRS 15.
Items where terminology differs between JGAAP and IFRSs are presented as below. (JGAAP / IFRSs)• Income before income taxes and minority interests / income before income tax• Net income / net income attributable to owners of the parent• Net income per share/ basic EPS• Total shareholders’ equity / total equity attributable to owners of the parent• Ratio of total shareholders’ equity / Ratio of total equity attributable to owners of the parent• Shareholders’ equity per share / equity per share attributable to owners of the parent

285.78 332.51

’11

’12

436.95’13402.49

’14

’15

’16

’17

’18

(FY)

IFRSs

1,268.15¥1,256.53¥

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Financial Section

Management Organization

047

Corporate Information

Graphs II: Consolidated Financial Data
Fiscal year beginning April 1 and ending March 31 of the following year

Total assets

Equity attributable to owners of the parent /Ratio of equity attributable to owners of the parent to total assets(Billions of yen)(Billions of yen)

Equity attributable to owners of the parent

36,096.5

40,000

8,000
6,000

24,634.2
21,034.220,707.2

24,0007,621.5 (%)
40

(Yen)

30

6,000

20

4,000

10

2,000

5,184.2
22.3
19.1

16,690.1

4,000

16,00010.5

8,000 4,462.9 4,655.7 4,899.7
’09

’10

’11

7,218.2

1,612.8
470.5

’12

’13

’14

’15

’16

’17

’18

(FYE)

0

’10

936.7

’11

1,930.4¥

8,000

6,760.66

13.5

12.6

3,292.40
2,393.47 2,278.85

14.6
434.74 572.14

’12

’13

’14

’15

’16

’17

’18 (FYE) 0

0

’09

IFRSs

’10

1,353.55
852.69’11

JGAAP

47.0% YoY
Ratio of equity attributable to owners of the parent to total assets
21.1%+

Equity attributable to owners of the parent

Finance cost

Net interest-bearing debt*’12

1,624.33

’13

’14

’15

’16

’18

’17

(FYE)

IFRSs

FYE2018

Equity per share attributable to owners of the parent¥

6,760.66

Credit ratings

Finance leases

Vodafone K.K. acquisition(Billions of yen)

SprintArmacquisition acquisition

Listing of
SoftBank Corp.

(Billions of yen)

15,00012,928.9
11,207.6

12,000

800
600
440.7

8,182.8

9,000

7,059.3200

2,257.8

1,619.2
1,501.1 1,209.6 1,110.5
547.3

’10

’11

’12

JGAAP

FYE2018

Net interest-bearing debt

’13

’14

’15

’16

’17

’18

(FYE)

0

111.2

104.0

’09

’10
JGAAP

11,325.4 billion

A–/A3

516.1

JCR(A–)

BBB+/Baa1
BBB/Baa2

271.5

IFRSs

¥

467.3

366.5

400

6,000
3,000 1,941.0

A/A2

633.8

11,325.4

9,248.4’09

4,302.26

2,846.3 2,613.6

FYE2018

36,096.5 billion+ 15.8% YoY

21.1

3,586.4 16.6

JGAAP

FYE2018

Net interest-bearing debt

619.3

’09

IFRSs

Total assets

11.6

13.3

2,000

JGAAP

0

Ratio of equity attributable to owners of
the parent to total assets

31,180.5

32,0000Equity per share attributable to owners of the parent

BBB–/Baa3
62.2

65.3

’11

’12

BB+/Ba1
’13

’14

’15

’16

FY2018Finance cost

’17

’18

(FY)

IFRS

¥

633.8 billion

S&P(BB+)
Moody’s(Ba1)

BB/Ba2
BB–/Ba3
B+/B1

Note: In fiscal 2018, the Company adopted IFRS 9 and IFRS 15.
Items where terminology differs between JGAAP and IFRSs are presented as below. (JGAAP / IFRSs)• Income before income taxes and minority interests / income before income tax• Net income / net income attributable to owners of the parent• Net income per share/ basic EPS• Total shareholders’ equity / total equity attributable to owners of the parent• Ratio of total shareholders’ equity / Ratio of total equity attributable to owners of the parent• Shareholders’ equity per share / equity per share attributable to owners of the parent’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 (CY)* Calculated by subtracting cash position (cash and cash equivalents + short-term investments recorded as current assets (both excluding those of The Japan Net Bank)) from interest-bearing debt (excluding financial liabilities relating to variable prepaid forward contract for sale of Alibaba shares).
Deposits for banking business of The Japan Net Bank are not included in interest-bearing debt.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Financial Section

Management Organization

048

Corporate Information

Graphs III: Consolidated Financial Data
Fiscal year beginning April 1 and ending March 31 of the following year

ROE / ROA
Amount of share repurchase

Dividend per share / Payout ratio(Billions of yen)

(Yen)

Dividend per share

700

50

600.0

600

500.0

40.0

40

500
400

30

300

20

200

120.0

100
0

’10

’11

’12

’13

40.0

40.0

40.0

41.0

’15

’16

’17

’18

’19

5.0

4.7

7.1

2.9

’09

’10

Total amount of repurchase

¥

25

50

’11

46.0

20

40

15

30

10

20

5

10

(FY) 0

0

34.8

’12

’13

’14

’15

’16

’17

’18

44

Market capitalization(Trillions of yen)

14
12
10
8
6
4
2
’04

’05

’06

’07

’08

’09

’10

’11

Note: In fiscal 2018, the Company adopted IFRS 9 and IFRS 15.
Items where terminology differs between JGAAP and IFRSs are presented as below. (JGAAP / IFRSs)• Income before income taxes and minority interests / income before income tax• Net income / net income attributable to owners of the parent• Net income per share/ basic EPS• Total shareholders’ equity / total equity attributable to owners of the parent• Ratio of total shareholders’ equity / Ratio of total equity attributable to owners of the parent• Shareholders’ equity per share / equity per share attributable to owners of the parent

’12

’13

’14

’15

’16

23.7

2.2

’09

4.2

’10
JGAAP

Annual dividend: ¥

’17

’18

’19 (CY)

28.0

17.4

IFRSs

Dividend per share

29.5

22.9

FY2018

ROE
ROA

0

ROA

40.3

3.5

FY2018600 billion

(%)

3.4

JGAAP

2019

44.0

10.2
9.2

5.6

0

(CY)

44.0

(%)

29.7
12.0

5.0

’14

44.0

14.0

10

32.5

22.7

ROE

Payout ratio

6.6

’11

6.0

4.4

3.5

’12

’13

’14

6.3

2.3

’15

’16

22.0

3.7

4.2

’17

’18

(FY)

IFRSs

22.0%
4.2%

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

049

Corporate Information

Eleven-year Consolidated Financial Data
Fiscal year beginning April 1 and ending March 31 of the following year

JGAAP
(Millions of yen)

Net sales �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Adjusted EBITDA �����������������������������������������������������������������������������������������������������������������������������������������������������������������������
Operating income ���������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income before income tax ���������������������������������������������������������������������������������������������������������������������������������������������������������
Net income attributable to owners of the parent �����������������������������������������������������������������������������������������������������������������������
Total assets �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Total equity attributable to owners of the parent �����������������������������������������������������������������������������������������������������������������������
Interest-bearing debt*1 �������������������������������������������������������������������������������������������������������������������������������������������������������������
Net interest-bearing debt*2 �������������������������������������������������������������������������������������������������������������������������������������������������������
Net cash provided by operating activities �����������������������������������������������������������������������������������������������������������������������������������
Net cash used in investing activities �������������������������������������������������������������������������������������������������������������������������������������������
Net cash provided by (used in) financing activities ���������������������������������������������������������������������������������������������������������������������
Net increase (decrease) in cash and cash equivalents �����������������������������������������������������������������������������������������������������������������Cash and cash equivalents at the end of the year �����������������������������������������������������������������������������������������������������������������������
Major indicators
Adjusted EBITDA margin������������������������������������������������������������������������������������������������������������������������������������������������ROA ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
ROE ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Ratio of equity attributable to owners of the parent to total assets ��������������������������������������������������������������������������������

(Units)

Per share data*3
Basic EPS ����������������������������������������������������������������������������������������������������������������������������������������������������������������������
Diluted EPS ������������������������������������������������������������������������������������������������������������������������������������������������������������������
Equity per share attributable to owners of the parent ����������������������������������������������������������������������������������������������������
Dividend per share ��������������������������������������������������������������������������������������������������������������������������������������������������������

(Units)OthersShares outstanding ������������������������������������������������������������������������������������������������������������������������������������������������������
Subsidiaries ������������������������������������������������������������������������������������������������������������������������������������������������������������������
Associates ��������������������������������������������������������������������������������������������������������������������������������������������������������������������
Number of public companies*4 ������������������������������������������������������������������������������������������������������������������������������������
Number of employees (consolidated basis) ��������������������������������������������������������������������������������������������������������������������

(Units)

%
%
%
%

¥
¥
¥
¥

’000

IFRSs

FY2008FY2009FY2010FY2011FY2012

2,673,035
678,636
359,121
107,338
43,172
4,386,672
374,094
2,400,391
1,939,521
447,858(266,295)(210,348)(31,169)
457,6442,763,406
787,631465,871289,250
96,716
4,462,875
470,532
2,195,471
1,501,074
668,050(277,162)(159,563)
230,719
687,682

3,004,640
930,730
629,163
480,613
189,713
4,655,725
619,253
2,075,801
1,209,636
825,837(264,448)(397,728)
159,457
847,155

3,202,436
1,013,716
675,283
632,257
313,753
4,899,705
936,695
1,568,126
547,299740,227(375,656)(196,667)
168,069
1,014,559

3,202,536
1,152,741
799,399
715,504
372,481
7,218,172
1,612,756
3,707,853
2,257,806
813,025(874,144)
471,477
417,944
1,439,057

25.4
1.0
11.4
8.5

28.5
2.2
22.9
10.5

31.0
4.2
34.8
13.3

31.7
6.6
40.3
19.1

36.0
6.0
29.7
22.3

39.95
38.64
346.11
2.50

89.39
86.39
434.745.00

175.28168.57572.145.00

285.78278.75852.6940.00

332.51
328.081,353.55
40.00

1,080,855
173
90
13
21,0481,082,329
172
83
12
21,885

1,082,350
178
92
13
21,7991,098,515
196
97
14
22,7101,191,500
235
108
14
25,891

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

050

Corporate Information

Eleven-year Consolidated Financial Data
Fiscal year beginning April 1 and ending March 31 of the following year

IFRSs
(Millions of yen)

Net sales ��������������������������������������������������������������������������������������������������������������������������������������������������
Adjusted EBITDA ��������������������������������������������������������������������������������������������������������������������������������������
Operating income ������������������������������������������������������������������������������������������������������������������������������������
Income before income tax ������������������������������������������������������������������������������������������������������������������������
Net income attributable to owners of the parent ��������������������������������������������������������������������������������������
Total assets ����������������������������������������������������������������������������������������������������������������������������������������������
Total equity attributable to owners of the parent ��������������������������������������������������������������������������������������
Interest-bearing debt*1 ����������������������������������������������������������������������������������������������������������������������������
Net interest-bearing debt*2 ����������������������������������������������������������������������������������������������������������������������
Net cash provided by operating activities ��������������������������������������������������������������������������������������������������
Net cash used in investing activities ����������������������������������������������������������������������������������������������������������
Net cash provided by (used in) financing activities ������������������������������������������������������������������������������������
Net increase (decrease) in cash and cash equivalents ��������������������������������������������������������������������������������Cash and cash equivalents at the end of the year ��������������������������������������������������������������������������������������
Major indicators
Adjusted EBITDA margin���������������������������������������������������������������������������������������������������������������ROA ���������������������������������������������������������������������������������������������������������������������������������������������
ROE ���������������������������������������������������������������������������������������������������������������������������������������������
Ratio of equity attributable to owners of the parent to total assets �����������������������������������������������

(Units)

Per share data*3
Basic EPS �������������������������������������������������������������������������������������������������������������������������������������
Diluted EPS ���������������������������������������������������������������������������������������������������������������������������������
Equity per share attributable to owners of the parent �������������������������������������������������������������������
Dividend per share �����������������������������������������������������������������������������������������������������������������������

(Units)OthersShares outstanding ���������������������������������������������������������������������������������������������������������������������
Subsidiaries ���������������������������������������������������������������������������������������������������������������������������������
Associates �����������������������������������������������������������������������������������������������������������������������������������
Number of public companies*4 ���������������������������������������������������������������������������������������������������
Number of employees (consolidated basis) �����������������������������������������������������������������������������������

(Units)

%
%
%
%

¥
¥
¥
¥

’000

FY2013

FY2014FY2015FY2016FY2017FY20186,666,651
1,778,492
1,077,044
924,049
520,250
16,690,127
1,930,441
9,170,053
7,059,286
860,245(2,718,188)
2,359,375
524,433
1,963,490

8,504,135
2,041,633
918,720
1,213,035
668,361
21,034,169
2,846,306
11,607,244
8,182,817
1,155,174(1,667,271)
1,719,923
1,295,163
3,258,653

8,881,777
2,325,153
908,907919,161
474,172
20,707,192
2,613,613
11,922,431
9,248,363
940,186(1,651,682)
43,270(689,046)
2,569,607

8,901,004
2,564,467
1,025,999
712,526
1,426,308
24,634,212
3,586,352
14,142,922
11,207,617
1,500,728(4,213,597)
2,380,746(386,505)
2,183,102

9,158,765
2,605,117
1,303,801
384,630
1,038,977
31,180,466
5,184,176
16,353,856
12,928,922
1,088,623(4,484,822)
4,626,421
1,151,548
3,334,650

9,602,236
3,153,461
2,353,931
1,691,302
1,411,199
36,096,476
7,621,481
14,954,506
11,325,430
1,171,864(2,908,016)
2,202,291
523,868
3,858,518

26.7
4.4
29.5
11.6

24.0
3.5
28.0
13.5

26.2
2.3
17.4
12.6

28.8
6.3
46.0
14.6

28.4
3.7
23.7
16.6

32.8
4.2
22.0
21.1

436.95434.681,624.33
40.00

562.20558.752,393.47
40.00

402.49388.32
2,278.85
41.00

1,287.01
1,275.64
3,292.40
44.00

933.54908.384,302.26
44.00

1,268.15
1,256.53
6,760.66
44.00

1,188,456
756
105
13
70,336

1,189,197
769
120
14
66,154

1,146,900
739
122
12
63,591

1,089,282
763
130
12
68,402

1,089,498
1,141
385
18
74,952

1,053,833
1,302
423
19
76,866

Notes: 1. In fiscal 2018, the Company adopted IFRS 9 and IFRS 15.
		 Items where terminology differs between JGAAP and IFRSs are presented as below. (JGAAP / IFRSs)
		 • Income before income taxes and minority interests / income before income tax• Net income / net income attributable to owners of the parent • Total shareholders’ equity / total equity attributable to owners of the parent		 • Ratio of total shareholders’ equity / Ratio of total equity attributable to owners of the parent • Net income per share/ basic EPS• Diluted net income per share / diluted EPS		 • Shareholders’ equity per share / equity per share attributable to owners of the parent
2. The figures for fiscal 2013 have been retrospectively adjusted in accordance with the adoption of IFRIC 21 “Levies.”
3. As of June 1, 2015, GungHo no longer qualified as a subsidiary and became an equity method associate. Accordingly, GungHo’s net income and loss for the period from April 1, 2015 to June 1, 2015 are presented as discontinued operations. Its net income and loss for fiscal 2014 arerevised retrospectively and also presented under discontinued operations.
		Furthermore, as of August 16, 2016, GungHo no longer qualified as an equity method associate. This is a result of a transaction where the Company tendered 245,592,400 of its shares in the tender offer by GungHo. The tender offer was executed from June 23, 2016 and completed
on July 21, 2016.
4.	The Company sold all of its shares in Supercell to an affiliate of Tencent Holdings Limited on July 29, 2016. Accordingly, Supercell’s net income until July 29, 2016 is presented as discontinued operations. Net income of Supercell for fiscal 2015 was revised retrospectively and presented
under discontinued operations.
*1 Excludes financial liabilities relating to variable prepaid forward contract for sale of Alibaba shares. Deposits for banking business of The Japan Net Bank are not included in interest-bearing debt.
*2 Calculated by subtracting cash position (cash and cash equivalents + short-term investments recorded as current assets (both excluding those of The Japan Net Bank)) from interest-bearing debt.
*3 Basic EPS and diluted EPS are calculated based on net income attributable to owners of the parent.
*4 Number of subsidiaries and associates with publicly offered shares (including SFJ Capital Limited, which issued preferred (restricted voting) securities from fiscal 2011 to fiscal 2014)

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

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Management Organization

Financial Section

051

Corporate Information

Management’s Discussion and Analysis of Results of Operations and Financial Position
As of June 19, 2019

Results of Operations
Highlights of Results

1.Operating income: ¥2,353.9 billion (increased 80.5% yoy)• Operating income from SoftBank Vision Fund and Delta Fund was ¥1,256.6 billion.
		 – 
Unrealized gain of ¥1,378.6 billion from continuing investments: reflecting the increase in the fair values of Uber, Guardant Health, OYO1, and other investments.
		 – 
Completed exits from two investments (Flipkart, NVIDIA) in fiscal 2018. Gain on investments of ¥146.7 billion was recorded on the sale of Flipkart shares.
For NVIDIA, the gain on investments during the entire investment period was ¥138.3 billion; total gain was ¥306.8 billion including derivative gain.

2.Net income attributable to owners of the parent: ¥1,411.2 billion (increased 35.8% yoy)• Finance cost of ¥(633.8) billion*• 
Derivative gain of ¥158.2 billion: gain recorded mainly as a result of collar transactions using NVIDIA shares.
• Changes in third-party interests in SoftBank Vision Fund and Delta Fund of ¥(586.2) billion*: increased due to higher gain on investments.
• 
Income taxes of ¥(236.7) billion*: tax benefit of ¥405.6 billion through the use of loss carryforwards of a subsidiary that had not been recognized as deferred tax
assets, for the disposal of SoftBank Corp. shares.
*recorded as cost for fiscal 2018

Adoption of IFRS 9 and IFRS 15
In the first quarter, the Company adopted IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” (collectively, the “new standards”). The cumulative impact of the adoption of the
new standards was recognized as an adjustment to the balance of retained earnings on the date of adoption (April 1, 2018), and the Company has not adjusted the presentation of information of the previous
fiscal year. In the tables of this appendix, figures for the previous fiscal year are presented under “previous standards,” and the impacts of adopting the new standards on the results of the fiscal year arepresented under “impact of adopting new standards.” Further, in the consolidated statement of financial position, the cumulative impact of the adoption of the new standards was recognized as adjustments tothe balances of retained earnings and accumulated other comprehensive income on the date of adoption.
Changes in Segment Classification
In accordance with changes in the Company’s organization based on its unique organizational strategy, “Cluster of No.1 Strategy,” the Company revised its segment classifications for management purposes in
the first quarter, comprising six reportable segments: SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision Fund and Delta Fund, and Brightstar.
Note: Abbreviations for Management’s Discussion and Analysis of Results of Operations and Financial Position
The fiscal year / Fiscal 2018: Fiscal year ended March 31, 2019
The first quarter: Three-month period ended June 30, 2018
The second quarter: Three-month period ended September 30, 2018
The third quarter: Three-month period ended December 31, 2018
The fourth quarter: Three-month period ended March 31, 2019
The previous fiscal year / Fiscal 2017: Fiscal year ended March 31, 2018
The fiscal year-end: March 31, 2019
The previous fiscal year-end: March 31, 2018

SoftBank Group Corp.
ANNUAL REPORT 2019

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Overall Results for Fiscal 2018052

Corporate Information

The segment income of the Arm segment includes gain relating to loss of control over subsidiaries

Fiscal 2017
Previous standards

Net sales������������������������������
Operating income(excluding income from
SoftBank Vision Fundand Delta Fund)������������
Operating income from
SoftBank Vision Fundand Delta Fund2������������
Operating income����������������
Income before income tax����
Net income��������������������������
Net income attributable toowners of the parent ��������

Financial Section

9,158,765(Millions of yen)of ¥176,261 million, which was recognized as a result of Arm’s Chinese subsidiary becoming an

Fiscal 2018

associate accounted for using the equity method, following the establishment of a joint venture.

Fiscal 2018
New standards

ChangeChange %Impact of adopting
new standards

9,602,236

443,471

4.8%

59,310Operating income from SoftBank Vision Fund and Delta Fund was ¥1,256,641 million, comparedwith income of ¥302,981 million in the previous fiscal year. This was mainly due to an unrealized gainof ¥1,378,553 million, reflecting an increase in the fair values of continuing investments including
Uber Technologies, Inc. (“Uber”), Guardant Health, Inc. (“Guardant Health”), and Oravel Stays Private
Limited (“OYO”),1 and a realized gain of ¥146,682 million on the sale of Flipkart Private Limited

1,000,820

1,097,290

96,4709.6%

169,066

302,981
1,303,801
384,630
1,237,812

1,256,641
2,353,931
1,691,302
1,454,618

953,660
1,050,130
1,306,672
216,806

314.8%
80.5%
339.7%
17.5%

135,527
304,593261,243
245,426

January 2019) was ¥306,809 million (before deducting third-party interests). A gain of ¥365,325

1,038,977

1,411,199

372,22235.8%

224,510

investment was disposed in January 2019. On the other hand, derivative gain of ¥168,471 million, the(“Flipkart”) shares. Conversely, a loss of ¥222,628 million was recorded for the investment in NVIDIA
Corporation (“NVIDIA”).
The total gain on investment in NVIDIA for the entire investment period (December 2016 tomillion was recorded in the previous fiscal year, consistent with NVIDIA’s share price increase, while aloss of ¥222,628 million was recorded in the fiscal year, consistent with its share price drop until the
total amount for the previous fiscal year and the fiscal year, was recorded as non-operating income forthe previous fiscal year and the fiscal year, as a result of collar transactions conducted to hedge theReference: Average exchange rates used for translations

share price drop.

Fiscal 2017

Fiscal 2018

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

USD / JPY��������������� ¥111.61¥111.38¥112.74¥108.85¥108.71¥111.55¥112.83¥110.46

1. Net Sales

Net sales(Billions of yen)
10,0009,158.8

Operating income /Adjusted EBITDA / Adjusted EBITDA margin(Billions of yen)
4,000

9,602.2(%)
40

Net sales increased ¥443,471 million (4.8%) year on year, to ¥9,602,236 million. Net sales increasedin the following segments: SoftBank, Sprint, and Yahoo Japan. Net sales were almost flat in the Arm
and Brightstar segments.

3,000

7,500

2,605.1

2. Operating Income
Operating income increased ¥1,050,130 million (80.5%) year on year, to ¥2,353,931 million.

30

2,353.9

2,000

5,000

20

1,303.8

Operating income (excluding income from SoftBank Vision Fund and Delta Fund) increased¥96,470 million (9.6%) year on year, to ¥1,097,290 million. Segment income improved ¥40,423

32.8
3,153.5

28.4

1,000

2,500

10

million in the SoftBank segment, ¥1,012 million in the Sprint segment, ¥165,346 million in the Armsegment, and ¥21,238 million in the Brightstar segment. However, segment income deteriorated¥41,376 million in the Yahoo Japan segment and ¥68,218 million in the Other segment.

0’17Previous standards’18
New standards

(FY)

0

’17
Previous standards’18
New standards

Operating income
Adjusted EBITDA
Adjusted EBITDA margin(FY) 0SoftBank Group Corp.
ANNUAL REPORT 2019

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053

Corporate Information

3. Income before Income Tax(Net Income Attributable to Alibaba and the Company’s Income on Equity Method

Income before income tax increased ¥1,306,672 million (339.7%) year on year, to ¥1,691,302 million.

Investments Related to Alibaba)

Finance cost increased ¥117,637 million (22.8%) year on year, to ¥633,769 million. Interest
expenses increased ¥45,544 million at SoftBank Group Corp.3 This was mainly due to an increase in

Twelve months ended December 314

interest-bearing debt associated with the issuance of foreign currency-denominated senior notes in

Alibaba

September 2017 and the borrowings made by a wholly owned subsidiary of the Company using

Net income attributable to Alibaba (US GAAP) ������������

Alibaba shares. The Company also recognized ¥24,051 million in conjunction with the partial
repayment of a senior loan, as a result of the full amortization of the unamortized balance of an

Net income attributable to Alibaba (IFRSs)��������������������

amortized cost. In addition, the interest expenses of SoftBank Vision Fund increased ¥25,339 million(Millions of yen)

Income on equity method investments related to Alibaba(Reference) Interest ratio as of December 31����������������

Fiscal 2017

Fiscal 2018

Change(516,132)(193,036)(7,801)(267,089)$(2,402)(633,769)(238,580)(33,140)(291,832)$(2,631)(117,637)(45,544)(25,339)(24,743)$(229)

millionmillionmillion2018

ChangeMillion CNY

Million CNY

Million CNY

67,071

69,642

2,571

Million CNY

Million CNY

Million CNY

84,89370,714(14,179)

Fiscal year ended March 31

due to borrowings made using NVIDIA shares.

Finance Cost����������������������������������������������������������������
SoftBank Group Corp.3��������������������������������������������
SoftBank Vision Fund ����������������������������������������������
Sprint����������������������������������������������������������������������
Reference: In U.S. dollars��������������������������������������

2017

2018

2019

Change29.36%

29.12%(0.24) pp

Million CNY

Million CNY

Million CNY

Income on equity method investments������������������������

25,08820,644(4,444)(Reference) Effective exchange rate CNY/JPY����������������

¥16.93¥16.41¥(0.52)Million yen

Million yen

Million yen

Income on equity method investments������������������������

424,771338,683(86,088)

Income on equity method investments decreased ¥87,790 million (21.7%) year on year, to¥316,794 million. This was mainly due to a decrease of ¥86,088 million (20.3%) in income on equity
method investments related to Alibaba, to ¥338,683 million.

Foreign exchange gain was ¥11,145 million, compared with a loss of ¥34,518 million in theprevious fiscal year.
Derivative gain was ¥158,230 million, compared with a loss of ¥630,190 million in the previous
fiscal year. Derivative gain of ¥2,876 million was recorded in relation to a collar transaction embedded
in a variable prepaid forward contract for Alibaba shares, compared with a loss of ¥604,156 million in
the previous fiscal year. Derivative gain of ¥177,373 million, which arose until the settlement of collartransactions utilizing NVIDIA shares in January 2019, was also recorded.
Gain from financial instruments at FVTPL was ¥38,443 million, which arose from the change in thefair values of investments held by the Company outside of SoftBank Vision Fund and Delta Fund,compared with a loss of ¥68 million in the previous fiscal year.

SoftBank Group Corp.
ANNUAL REPORT 2019

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Changes in third-party interests in SoftBank Vision Fund and Delta Fund amounted to an increase

Management Organization

Financial Section

054

Corporate Information

5. Net Income Attributable to Owners of the Parentof ¥586,152 million, compared with an increase of ¥160,382 million in the previous fiscal year. An

After deducting net income attributable to non-controlling interests such as those of Yahoo Japan

increase in third-party interest is reflected as a decrease in the Company’s income. The breakdown is

Corporation, Sprint, and SoftBank Corp. from net income, net income attributable to owners of theas below:parent increased ¥372,222 million (35.8%) year on year, to ¥1,411,199 million.
The percentage of SoftBank Corp.’s net income attributable to non-controlling interests has(Millions of yen)

Attributable to investors entitled to fixed distribution ������������������������������
Attributable to investors entitled to performance-based distribution��������
Changes in third-party interests in SoftBank Vision Fund and Delta Fund�����

Fiscal 2017

Fiscal 2018(39,397)(120,985)(160,382)(102,712)(483,440)(586,152)

increased, due to a decrease in the Company’s indirect ownership percentage of SoftBank Corp., from99.99% to 66.49%, on December 19, 2018.

6. Comprehensive Income

Changes in third-party interests in SoftBank Vision Fund and Delta Fund indicate the sum ofComprehensive income increased ¥172,763 million (13.0%) year on year, to ¥1,502,295 million. Of

distributions to third-party investors in proportion to their interests in fixed distributions and perfor-

this, comprehensive income attributable to owners of the parent increased ¥287,107 million (24.9%),

mance-based distributions. The distributions are based on the gain and loss on investments at bothto ¥1,440,235 million.

funds, net of management and performance fees payable to SBIA, the Company’s wholly owned
subsidiary and manager of SoftBank Vision Fund, and operating and other expenses of the funds.
Other non-operating income was ¥32,680 million, compared with income of ¥17,535 million in
the previous fiscal year.

4. Net Income
Net income increased ¥216,806 million (17.5%) year on year, to ¥1,454,618 million.
Income taxes were ¥236,684 million, compared with a credit of ¥853,182 million (profit) in the

Impact of adopting new standards (IFRS 9 and IFRS 15) on consolidated statement of income

Net sales(Billions of yen)
10,000 9,158.8

Operating income
Impact of adopting
new standards+59.3
9,602.2
9,542.9↑
SoftBank
Segment–32.1

previous fiscal year. The effective income tax rate of 14.0% was significantly lower than the statutory
income tax rate of 31.46%. This was mainly due to the use of loss carryforwards that had not beenrecognized as deferred tax assets at SoftBank Group Japan Corporation, a wholly owned subsidiary of

7,500

Impact of adopting
new standards+304.62,353.9

2,049.3
1,800

Sprint Segment+59.6

the Company, against the gain on disposal of a portion of its SoftBank Corp. shares (33.50% of total
shares issued), when SoftBank Corp. was listed in December 2018. Mainly due to this impact, income(Billions of yen)
2,400

1,303.8

5,000

1,200

2,500

600

↑
SoftBank
Segment+49.4
Sprint Segment+95.5

taxes were reduced by ¥405,577 million.
Current taxes of ¥64,892 million were recorded for the aforementioned realized gain in Flipkart,
which mainly operates businesses in India. Capital gains on investments in entities that operatebusinesses in India are subject to tax in India. As a result of the sale of Flipkart shares occurring within
24 months of making the investment, the sale taxed at 43.68%, the Indian short-term capital gains
tax rate.

0’17Previousstandards’18
Previousstandards’18
New
standards

(FY)

0

’17
Previousstandards’18
Previousstandards’18
New
standards(FY)SoftBank Group Corp.
ANNUAL REPORT 2019

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Management Organization

Financial Section

055

Corporate Information

SoftBank Segment
1. Achieved higher net sales and segment income, driven by an expansion of telecom service customer base.
2. SoftBank Corp. was listed on the Tokyo Stock Exchange First Section on December 19, 2018.

Overview
In order to achieve sustainable growth, SoftBank Corp., under its “Beyond Carrier Strategy,” aims to

Net sales(Billions of yen)
4,000

Segment income / Segment margin
Adjusted EBITDA / Adjusted EBITDA margin
3,608.8(Billions of yen)
2,000

3,747.7

with partner companies including SoftBank Vision Fund’s portfolio companies. As businesses in new

1,000

2,000

32.4

1,199.7

1,212.5

30

19.3

19.0

20

725.1

684.7

areas, the company is currently working to build up new services, including a shared office service
through a joint venture with WeWork Companies, Inc. (“WeWork”) of the U.S., and a taxi booking

33.2
1,500

3,000

expand its telecom service customer base, while expanding businesses in new areas that are expected
to generate synergies with its existing telecommunications business, by cooperating or collaborating

(%)
40

500

1,000

10

platform service through a joint venture with Didi Chuxing Technology Co., Ltd. of China. Both joint
ventures are accounted for using the equity method by SoftBank Corp.
0

Financial Results’17
Previous standards’18
New standards

(FY)

0

’17
Previous standards
Segment income
Segment margin

Both net sales and segment income increased year on year, driven by a steady growth in the telecom-’18
New standards

Adjusted EBITDA
Adjusted EBITDA margin

munications business, especially the service for retail consumers. Net sales growth was attributable toan increase in telecom service revenue from service for retail consumers, which is the largest revenue
source, led by the steady expansion in customer base. The cumulative number of smartphone
subscribers with the three brands—SoftBank, Y!mobile, and LINE MOBILE—increased 1.95 million
from the previous fiscal year-end, to 22.08 million, and the cumulative number of subscribers to
SoftBank Hikari, a fiber-optic service, increased 940,000 from the previous fiscal year-end, to 5.92
million. Segment income and adjusted EBITDA also increased as a result of increased net sales,
especially telecom service revenue that contributed to profit.
Depreciation and amortization expenses, which had increased in the previous fiscal year due to thetemporary impact from the termination of 3G services on 1.7 GHz in January 2018, decreased year on
year.
Capital expenditures, on the basis of acceptance, increased year on year, due to initiatives toexpand service areas and improve the quality of LTE services.

For more information on SoftBank Corp.’s financial results and business operations, pleaserefer to its website at:(FY) 0SoftBank Group Corp.
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Issuance of New Shares by Yahoo Japan Corporation through Third-Party Allotment to(Reference)

SoftBank Corp. and Acquisition by Yahoo Japan Corporation of Its Own Shares through

Before the Transactions (as of March 31, 2019)056

Corporate Information

After the Transactions

Tender Offer
On May 8, 2019, Yahoo Japan Corporation resolved to issue 1,511,478,050 new shares for
SoftBank Group Corp.

¥456.5 billion to SoftBank Corp. through a third-party allotment (the “Third-Party Allotment”), of
which SoftBank Corp. resolved to purchase the entire shares. Yahoo Japan Corporation also

100%

implemented a tender offer for its own shares from May 9, 2019 to June 5, 2019 (the “Tender
Offer”), and SoftBank Group Corp. accepted the Tender Offer and tendered its holding ofcommon shares of Yahoo Japan Corporation, held by its wholly owned subsidiary SoftBank GroupSoftBank Group Japan Corporation

Japan Corporation (“SBGJ”). As a result, 1,792,819,200 of these shares (equivalent to ¥514.5
In the event that SoftBank Corp. purchases the shares of Yahoo Japan Corporation through theCompany’s ownership in common shares of Yahoo Japan Corporation will be 45.52%*1 (all of

100%

SoftBank Group Japan Corporation

66.49%

billion) will be sold to Yahoo Japan Corporation.
Third-Party Allotment, and the Tender Offer is settled (collectively, the “Transactions”), theSoftBank Group Corp.

36.08%SoftBank Corp.
12.08%

66.49%

0.87%*1

SoftBank Corp.
44.64%*1

which are indirect holdings, including SoftBank Corp.’s shareholding of 44.64%), compared with
48.16%*2 (all of which are indirect holdings, including SoftBank Corp.’s shareholding of 12.08%) asof the fiscal year-end. As a result of the Transactions, Yahoo Japan Corporation is expected to
become a subsidiary of SoftBank Corp., which will be deemed to effectively control the company,
considering its dispatch of officers to Yahoo Japan Corporation as board members. Consequently,
Yahoo Japan Corporation will remain a subsidiary of the Company in the Company’s consolidated
financial results. The Company’s economic interests in Yahoo Japan Corporation are expected todrop from 44.11% to 30.56% in accordance with an increase in non-controlling interests.
Notes: 1. This indicates a ratio to 4,760,851,065 shares of Yahoo Japan Corporation, an amount derived by subtracting 1,902,256,600 shares, which is the total of
the number of treasury stock as of March 31, 2019 (67,879,000 shares) and the number of own shares to be acquired in the Tender Offer (1,834,377,600
shares), from the number of shares issued as of March 31, 2019 (5,151,629,615 shares), and adding the number of new shares to be issued in the
Third-Party Allotment (1,511,478,050 shares), rounded to two decimal place.
2. This indicates a ratio to 5,083,750,615 shares of Yahoo Japan Corporation, an amount derived by subtracting the number of treasury stock as of March 31,
2019 (67,879,000 shares) from the number of shares issued as of March 31, 2019 (5,151,629,615 shares), rounded to two decimal place. The same applies
to any references to shareholding ratio in this section except the one defined in note 1.

Yahoo Japan Corporation

Yahoo Japan Corporation

SoftBank Group Corp.
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057

Corporate Information

Sprint Segment
1.	Net sales increased 3.5% yoy to ¥3,726.8 billion. U.S. dollar-based wireless telecom service revenue has
been stabilized, excluding the impact of adopting the new standards.
2. Segment income increased 0.4% yoy to ¥280.3 billion, including the positive impact of adopting the new

Of telecom service revenue, excluding the negative impact of adopting the new standards,
quarterly wireless telecom service revenue has been stabilized, with year-on-year growth from thesecond quarter to the fourth quarter.
Segment income increased $39 million (1.6%) year on year, to $2,532 million.

standards.
3. Review by the Federal Communications Commission (FCC) and other regulatory agencies regarding themerger with T-Mobile is still underway.

Net sales increased $659 million year on year (excluding the impact of adopting the new standards)
as mentioned above. Operating expenses (cost of sales and selling, general and administrative
expenses) increased $627 million year on year (excluding the impact of adopting the new standards),
mainly due to an increase in depreciation expenses following an increase of leased device assets. Other

Overview

operating income and loss deteriorated $851 million year on year, due to the absence of one-time

Sprint is working to expand its net sales by increasing the number of postpaid and prepaid subscribers

gains recognized in the previous fiscal year, such as a gain on spectrum license exchange and gain on

and stabilizing its ARPU. To achieve this goal, Sprint has continued its effort to further improve network

litigation settlement. On the other hand, the adoption of the new standards had a positive impact of

quality and increase customer value by leveraging its ample spectrum holdings. In the fiscal year, Sprint$858 million on segment income ($535 million for the increase in net sales and $323 million for the

expects to further increase network cash capital expenditures to improve its network quality. At the same

push-down of operating expenses). As a result, segment income increased $39 million year on year.

time, Sprint continues its efforts to enhance profitability by further improving operational efficiency.

Adjusted EBITDA increased $1,706 million (15.5%) year on year, to $12,746 million, which
included the same amount of the positive impact as on segment income from the adoption of the

Merger of Sprint and T-Mobile
On April 29, 2018, Sprint and T-Mobile entered into a definitive agreement to merge in an
all-stock transaction (the “Transaction”). Upon completion of the Transaction, the combined

new standards.
Adjusted free cash flow decreased $1,859 million year on year, to negative $914 million (asdisclosed by Sprint, US GAAP). An increase in operating cash flows was more than offset by anincrease in expenditures for the acquisition of telecom equipment for the 5G network.

company is expected to become an equity method associate of the Company with an approximately 27.4% shareholding, and Sprint will no longer be a subsidiary of the Company. The
Transaction is subject to Sprint and T-Mobile stockholder approvals, regulatory approvals, andother customary closing conditions. To obtain regulatory approvals for the merger, Sprint andT-Mobile completed the Hart-Scotto-Rodino filing with the Department of Justice (DOJ).
Furthermore, the parties filed merger applications with the Federal Communications Commission(FCC) and the Committee on Foreign Investment in the United States (CFIUS). By the end of the

Net sales(Billions of yen)
5,000(Millions of U.S dollars)
50,000(Billions of yen)
1,600

37.9
1,413.2

34.1
4,000

fiscal year, the Transaction received clearance from CFIUS, while review is still underway by DOJ,
FCC, and other regulatory agencies. The Transaction is expected to receive federal regulatory

Segment income / Segment margin
Adjusted EBITDA / Adjusted EBITDA margin

3,602.0
32,406

3,726.8
33,60040,0003,000

30,0002,000

20,000approval in the first half of 2019.

1,227.3
1,200

30

800

20

279.3

Financial Results (in U.S. Dollars)
Net sales increased $1,194 million (3.7%) year on year, to $33,600 million. Of the net sales increase,$535 million comes from adopting the new standards, with a negative impact on telecom service
revenue and a positive impact on equipment revenue. Excluding these impacts, net sales increased$659 million year on year. Although telecom service revenue fell mainly due to a decrease in wireline
revenue, equipment revenue increased due to an increase in equipment rentals revenue.

10,000

1,000

0

’17
Previous standards
Results in yen (left)’18
New standards

Results in dollars (right)(FY) 0

(%)
40

280.3

400

0

10

7.8

7.5

’17
Previous standards’18
New standards

Segment income
Segment margin

Adjusted EBITDA
Adjusted EBITDA margin(FY) 0SoftBank Group Corp.
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058

Corporate Information

Yahoo Japan Segment
Accounting treatment of Sprint's impairment losses in the Company's consolidated­financial statements

Net sales(Billions of yen)
1,000

On May 7, 2019 (EST), Sprint announced that it recorded impairment losses of $2 billion in the fourth
quarter. However, the Company did not recognize the impairment losses in its consolidated financial
statements, because recoverable value of Sprint ((fair value – cost of disposal) x the Company’s

Segment income / Segment margin
Adjusted EBITDA / Adjusted EBITDA margin(Billions of yen)
250

947.4
876.1

(%)
50

209.9
200

750

ownership of 84.4%) was higher than its consolidated carrying amount at the fiscal year-end.

150

193.6

176.3

134.9

24.0

100

carrying amount of Sprint on consolidated basis to its recoverable value
As of March 31, 201940,000250

0Impairment losses$(2.0) billion

14.2

’17
Previous standards’18
New standards

(FY)

0

’17
Previous standards
Segment income
Segment margin$28.3
billion

20

20.1

50

30,00020,000

30

20.4

500

Comparison: Sprint’s net asset value to its fair value /50,00040’18
New standards

10(FY) 0Adjusted EBITDA
Adjusted EBITDA margin

For more information on Yahoo Japan Corporation’s financial results and business operations,$26.3 billion

please refer to its website at:

10,000$22.1 billion
Sprint net asset value

Fair value*1

Recoverable amount(Fair value – cost of disposal) x 84.4% (the Company’s ownership)] No recognitionof impairment$22.0 billion loss
Carrying amount of Sprint on the
Company’s consolidated basis*2

Notes: 1.	Calculating the fair value by a blend of DCF based on future business plans, EBITDA multiple, and M&A at other companies.
			 2.	In the Company’s consolidated financial statements, the amount of currency hedge effect from forward exchange contracts
on acquisition of Sprint, which is approximately $3.1 billion, has been deducted from the carrying amount of Sprint on the
Company’s consolidated basis.

For more information on Sprint’s US GAAP-based financial results and business operations,please refer to its website at:SoftBank Group Corp.
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Corporate Information

Arm Segment
1.	For the full year, net sales were almost flat yoy; the fourth quarter net sales were the highest in the year.
• Deteriorationof global business conditions in the semiconductor industry resulted in a decline of technology
licensing revenue of 11.5% yoy and the lower growth rate of technology royalty revenue of 1.0% yoy, on a
U.S. dollar basis.
• Although net sales were almost flat yoy for the full year, they increased 11.3% yoy in the fourth quarter, on a
U.S. dollar basis, and were the highest in the year, due to delivery of a new next generation high-performance
processor.
• The delay in signing new contracts following the establishment of a joint venture for the China business wasdispelled in the third quarter, and there has been no impact on a full-year basis.
2. Steadily increasing R&D capability to drive long-term growth• Arm launched further processors developed for specific markets such as automotive and IoT; a direct result of
the strategy of accelerated R&D over the past two years.

Net sales(Billions of yen) 202.3
200

Segment income / Segment margin
Adjusted EBITDA / Adjusted EBITDA margin202.7(Billions of yen)
160

134.0

(%)
80

66.1

120

60

80

40

150

15.3

40

100

30.9

24.4

0

0

50
–40

• Arm continuously evaluates the mix of R&D projects in which it is investing to ensure that ROI is maximized.
0’17Previous standards

Overview’18
New standards

(FY)

–80

–31.4

’17
Previous standards

Segment income
Segment margin

Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the’18
New standards

Adjusted EBITDA
Adjusted EBITDA margin

designs of energy-efficient microprocessors and associated technologies. Since becoming part of theCompany, Arm has been accelerating investment in research and development by hiring more engineers.
With the expansion of its engineering capability, Arm intends to develop new technologies faster, with afocus on artificial intelligence (AI), computer vision, and augmented reality. Arm is also investing increating new revenue streams from adjacent markets, especially in the Internet of Things (IoT).
In the fiscal year, Arm announced several new products that are a direct result of the accelerated
R&D that Arm has executed over the past two years. This has included:• Helium is the architecture used for Cortex-M processors which brings machine learning acceleration to tiny micro-controllers going into applications such as robotics and industrial automation.
• Pelion IoT platform that enables enterprises to seamlessly and securely connect and manage IoT
devices and data at any scale• Two new processors developed specifically for the safety-critical applications within automotive
applications (Cortex-A76AE and Cortex-A65AE)• Neoverse family of processors developed for server and networking application.
– Amazon Web Services Inc. announced that the first generation of Neovese technologies will be
used in their own-built Graviton server chips, which would replace the previous generation ofchips with a significant cost saving for its customers.
– Introduced the Neoverse N1 and Neoverse E1 processors which significantly improve theperformance capability of the family. The Neoverse N1 and Neoverse E1 processors are
expected to appear in end applications in 2020

20

12.1

Net sales of the segment comprise (i) licenses to Arm technology, (ii) royalties arising from theresulting sale of licensees’ products based on Arm technology, and (iii) revenues from the sale ofsoftware tools.

(FY)

SoftBank Group Corp.
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Financial Results

Software and Services

Net sales increased ¥355 million (0.2%) year on year, to ¥202,699 million. This was due to theSoftware and services revenue, on a U.S. dollar basis, increased 51.6% year on year, due to thedeterioration of global business conditions in the semiconductor industry resulting in a decline ofacquisition of Treasure Data, Inc. and Stream Technologies Limited during the fiscal year.

technology licensing revenue by 11.5% year on year and the lower growth rate of technology royalty
Segment income was ¥133,966 million, compared with a loss of ¥31,380 million in the previous fiscal

revenue of 1.0% year on year, on a U.S. dollar basis.
However, net sales increased 11.3% year on year in the fourth quarter, which marks high quarterly

year. This was mainly attributable to the recognition of gain relating to the loss of control over

net sales for Arm. This was due to delivery of next generation high-performance processor aimed at

subsidiaries of ¥176,261 million as other operating income, as a result of Arm Technology (China) Co.,

smartphones, tablets, and laptops, resulting in strong technology licensing revenue.

Ltd. (“Arm China”) becoming an associate accounted for using the equity method from a subsidiary,
following the establishment of a joint venture of the China business.
In the fiscal year, Arm continued to increase its R&D capacity, which included hiring more R&D

Technology Licensing
Technology licensing revenue decreased year on year primarily due to a reduction in confidence withinengineers and support staff. As a result, operating expenses (cost of sales and selling, general andthe semiconductor industry as a whole, resulting in Arm’s customers either delaying chip design starts

administrative expenses) increased ¥11,225 million year on year. Arm’s head count increased net 101

or reducing R&D budgets. As global business conditions in the semiconductor industry restores, Armpeople (1.7%) from the previous fiscal year-end, despite the exclusion of 341 employees of Arm China

expects that the number of new chip designs will increase, and companies will invest more in R&D.

from the head count upon June 26, 2018.

The delay in signing new contracts following the establishment of a joint venture for the China
business (see “Establishment of Joint Venture for the China Business” on the following page), which
resulted in a negative revenue impact in the first quarter and second quarter, was dispelled in the third
quarter leading to a recovery in revenue. There has been no impact on revenue on a full-year basis.
Technology Royalties
Technology royalty revenue’s growth rate has slowed down due to a deceleration in semiconductor
demand globally including a weakening in global smartphone demand, especially in China, combinedwith a general slowdown in global chip sales. Going forwards, royalty revenue growth will continued
to be impacted by the slowdown in smartphone demand, but the overall growth of royalty revenue isstill expected to increase in the medium- to long-term as Arm gains share in other secular growthmarkets such as networking, automotive, and IoT.

(Net sales in U.S. dollars)(Millions of U.S. dollars)
Fiscal 2018

Fiscal 2017
Q1

Q2

Q3

Q4

Full year

Q1

Q2

Q3

Q4

Full year

Technology licensing�����������������������������������������������������������

149

123

190

156

618

85

124

125

213

547

Technology royalties�����������������������������������������������������������

250

271

297

269

1,087

261

285

305

247

1,098

Software and services���������������������������������������������������������

29

28

33

36

126

35

47

56

53

191

Total net sales���������������������������������������������������������������������

428

422

520

461

1,831

381

456

486

513

1,836

SoftBank Group Corp.
ANNUAL REPORT 2019

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Growth Strategy

Arm will continue to strengthen its R&D capacity to build the technologies needed to meet theopportunities presented by machine learning, IoT, autonomous vehicles, among others. In theManagement Organization

Financial Section

061

Corporate Information

Operations
Licensingmeantime, to ensure that ROI is maximized, it will also continuously evaluate the mix of R&D projects
in which it is investing, as well as the locations of the engineering teams. From time to time, someengineers and project team members are transferred onto other projects or locations. Since the third
quarter, Arm restructured some R&D projects and office locations, and consequently Arm’s head countis becoming flattish from the second quarter to the fourth quarter. It is expected that Arm’s headcount growth will accelerate in the medium term, as Arm will continue to increase its R&D capacity
through hiring engineers.
Adjusted EBITDA decreased ¥6,509 million (21.0%) year on year, to ¥24,435 million.

Classic (Arm7, Arm9, Arm11)������������������������������������������������������������������
Cortex-A��������������������������������������������������������������������������������������������������
Cortex-R��������������������������������������������������������������������������������������������������
Cortex-M ������������������������������������������������������������������������������������������������
Mali ��������������������������������������������������������������������������������������������������������
Number of processor licenses signed��������������������������������������������������������

Licenses signed
January 1 toMarch 31, 2019

Cumulative
number oflicenses signed
March 31, 2019

–
10
3
14
5
32

499
363
106
539
187
1,694

Note: Cumulative number of licenses signed only includes extant licenses that are expected to generate royalties.

Establishment of Joint Venture for the China Business
On June 26, 2018, Arm sold 51% of its equity interest in its wholly owned Chinese subsidiary, Arm
China, for $845 million to entities representing certain institutional investors and certain of Arm’s
ecosystem partners in order to form a joint venture for Arm’s semiconductor technology IP businessin China. As a result of this transaction, Arm China is no longer considered as a subsidiary of theCompany and has become an associate accounted for using the equity method. Accordingly, theCompany recorded gain relating to loss of control over subsidiaries of ¥176,261 million.
Arm will continue to receive a significant proportion of all license, royalty, software, and service
revenues arising from Arm China’s licensing of Arm semiconductor products, and record them as
net sales. Arm China’s labor costs are no longer included after it became an associate. However,Arm’s business outside of China will continue to utilize services provided by Arm China employees,
for which Arm pays as if Arm China was a subcontractor and record the cost in operating expenses.
The net impact on segment income in the medium term is expected to be minor.

Arm signed 32 processor licenses during the fourth quarter, including four licenses for new
technologies that Arm has not yet announced, reflecting solid demand for Arm’s latest technology.
Of the 20 customers signing new licenses, five were new customers purchasing their very first Armprocessor license. The customers who signed licenses with Arm in the fourth quarter intend to use
Arm technology in a very broad range of end markets, including AI applications, consumer electronics,
networking equipment, smartphones and virtual reality headsets.

SoftBank Group Corp.
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Royalty Units
The following analysis is based on the actual shipments of royalty units (chips incorporating Armtechnology) by Arm licensees for the three-month period ended December 31, 2018, as reported bylicensees in royalty reports. Arm’s licensees report their actual shipments of royalty units one quarter inarrears; therefore, the current quarter’s royalty unit analysis is based on chips shipped in the prior quarter.
In contrast, royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.
2018

2017

2018

Jan 1 toMar 31

Apr 1 toJun 31

Jul 1 toSep 30

Oct 1 toDec 31

Full year

Full year

5.5
17.0%

5.6
10.7%

6.2
8.8%

5.6
(3.4%)

21.3
20.3%

22.9
7.5%

14%
20%
8%
58%

10%
21%
8%
61%

9%
18%
10%
63%

9%
19%
9%
63%

17%
18%
8%
57%

10%
20%
9%
61%

2017
Oct 1 toDec 31

Royalty units as reported
by Arm’s licensees(billion)
5.8
Growth rate (yoy)
13.7%
Breakdown by processor family
Classic(Arm7, Arm9, Arm11)
16%
Cortex-A
19%
Cortex-R
7%
Cortex-M
58%

Arm’s licensees reported shipments of 5.6 billion Arm-based chips for the three-month period
ended December 31, 2018. This is down 3.4% year on year and reflects the slowdown in the growthof smartphones combined with the overall weakness in the semiconductor industry. For the full year,
22.9 billion Arm-based chips were reported as shipped, up 7.5% year on year.
Demand for Arm-based chips are expected to increase in the medium- to long-term as Arm gains
share in other secular growth markets such as networking, automotive, and IoT.

For more information about Arm, its business, and its technology, please refer to its
website at:

Financial Section

Corporate Information

062

SoftBank Group Corp.
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063

Corporate Information

Arm Segment Principal Operational Data
LicensingProcessor licenses signed. . . . . . . . . . . . . . . . . . . . . . . . . . .
Breakdown by processor family
Classic (Arm7, Arm9, Arm11) . . . . . . . . . . . . . . . . . . . . .
Cortex-A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cortex-R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cortex-M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mali. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FY2017FY2018Q1

FY2017
Q2

Q3

Q4

Q1

FY2018
Q2

Q3

Q4

141

125

41

26

48

26

16

35

42

32

0
45
16
58
22

0
35
12
59
19

0
7
5
20
9

0
7
4
11
4

0
19
5
17
7

0
12
2
10
2

0
3
1
11
1

0
14
5
13
3

0
8
3
21
10

0
10
3
14
5

1,482

1,508

1,552

1,577

1,593

1,627

1,662

1,694

500
297
83
445
157

500
304
87
456
161

500
322
92
472
166

499
334
94
482
168

499
337
95
493
169

499
350
100
506
172

499
353
103
525
182

499
363
106
539
187

15
10
5

33
23
10

18
9
9

12
9
3

26
21
5

27
21
6

20
15
5

Jul - Sep

Oct - Dec

Jan - Mar

Cumulative number of licenses signed. . . . . . . . . . . . . . . .
Breakdown by processor family
Classic (Arm7, Arm9, Arm11) . . . . . . . . . . . . . . . . . . . . .
Cortex-A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cortex-R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cortex-M. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mali. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Companies signing licenses. . . . . . . . . . . . . . . . . . . . . . . . .
Existing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

89
52
37

85
66
19

30
17
13

CY2017

CY2018Jan - MarJul - Sep

Oct - Dec

21.3

22.9

4.7

5.1

5.7

5.8

5.5

5.6

6.2

5.6

17%
18%
8%
57%

10%
20%
9%
61%

17%
22%
8%
53%

18%
20%
9%
53%

17%
17%
7%
59%

16%
19%
7%
58%

14%
20%
8%
58%

10%
21%
8%
61%

9%
18%
10%
63%

9%
19%
9%
63%

FY2017FY2018

Q1

Q3

Q4

Q1

Royalty Units(Billions)Royalty units as reported by licensee�������������������������������������
Breakdown by processor family
Classic (Arm7, Arm9, Arm11) ���������������������������������������������
Cortex-A�����������������������������������������������������������������������������
Cortex-R �����������������������������������������������������������������������������
Cortex-M�����������������������������������������������������������������������������

CY2017
Apr - Jun

CY2018Apr - Jun

Employees
Total number of employees�����������������������������������������������������
(incl.) Technical employees�������������������������������������������������������
Geographical breakdown
U.K. �����������������������������������������������������������������������������������
Rest of Europe���������������������������������������������������������������������
U.S. �����������������������������������������������������������������������������������
Asia�������������������������������������������������������������������������������������
India �����������������������������������������������������������������������������������
1. Total number of employees: include temporary employees.
2. Technical employees: employees who work on the research, creation, maintenance, deployment and support of technology products and services of Arm.

FY2017Q2

FY2018
Q2

Q3

Q4

5,182
4,269

5,538
4,555

5,708
4,677

5,886
4,812

5,707
4,697

5,990
4,940

5,970
4,887

5,987
4,858

2,037
929
1,151
454
611

2,198
1,020
1,184
482
654

2,262
1,060
1,241
481
664

2,340
1,093
1,280
486
687

2,418
1,137
1,312
146
694

2,504
1,150
1,375
234
727

2,451
1,209
1,354
238
718

2,547
1,125
1,318
252
745

SoftBank Group Corp.
ANNUAL REPORT 2019

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Management Organization

Financial Section

Corporate Information

064

SoftBank Vision Fund and Delta Fund Segment
1.	Segment income of ¥1,256.6 billion• Valuation gain of ¥1,378.6 billion from continuing investments: fair values of Uber, Guardant Health, OYO,1and other investments increased.
• Saleof Flipkart shares: gain of ¥146.7 billion• Disposalof NVIDIA shares: total gain for the entire investment period (December 2016 to January 2019) was¥306.8 billion, including gains from shares and collar transactions. A loss of ¥222.6 billion was recorded infiscal 2018 due to share price fall, however, a gain of ¥177.4 billion was recorded as non-operating income
resulting from hedging the share price fall through collar transactions.
2. Progress of investments at SoftBank Vision Fund•H
 olds 69 investments at cost totaling $60.1 billion, with fair value amounting to $72.3 billion (excludingexited investments)5.
•D uring fiscal 2018, two investees, Guardant Health and Ping An Good Doctor, became publicly listed issuers.
Three investees, Uber, WeWork, and Slack, have filed documents related to initial public offerings.

Overview
SoftBank Vision Fund began its operation in 2017. This fund aims to conduct large-scale, long-term
investment in companies and platform businesses that have the potential to bring about next-generation
innovation. SoftBank Vision Fund is managed by SBIA, a wholly owned subsidiary of the Company
established in the U.K., which is registered at the Financial Conduct Authority. The segment results
include the results of the investment and operational activities of SoftBank Vision Fund and Delta Fund,which is also managed by SBIA.

Outline of Funds in the Segment
As of March 31, 2019
SoftBank Vision Fund

Delta Fund

Major limited partnership

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

Total committed capital(Billions of U.S. dollars)

97.0 *1 *3

General partner

SVF GP (Jersey) Limited(The Company’s wholly owned
overseas subsidiary)

SB Delta Fund GP (Jersey) Limited(The Company’s wholly owned
overseas subsidiary)

Investment period

Until November 20, 2022 (in principle)

Until November 20, 2022 (in principle)

Minimum Fund life

Until November 20, 2029 (in principle)

Until September 27, 2029 (in principle)

SoftBank Group Corp.: 33.1
Third-party investors: 63.9 *3

6.0 *3*2

SoftBank Group Corp.: 4.4
Third-party investors: 1.6 *3

Notes: 1. S oftBank Vision Fund completed a total of two closings in the third quarter. As a result, SoftBank Vision Fund accepted the participation of new limited partners
and acquired additional committed capital totaling $5.3 billion.
2. The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation to be satisfied by using Arm Limited shares and$5.0 billion earmarked for use in an incentive scheme related to SoftBank Vision Fund.
3. A portion of the capital committed by third-party investors in both SoftBank Vision Fund and Delta Fund has been committed in consideration of the total capitalcommitted for both such funds; hence, the total committed capital and remaining committed capital for each separate fund will change according to the statusof contribution made by third-party investors in each such fund.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Results

Gain and loss on investments at
SoftBank Vision Fund and Delta Fund������������
Realized gain and loss on
sales of investments ����������������������������������
Unrealized gain and loss on
valuation of investments����������������������������
Interest and dividend income
from investments ��������������������������������������
Effect of foreign exchange translation����������
Operating expenses ����������������������������������������
Segment income����������������������������������������������
Depreciation and amortization ������������������������
Adjustments relating to investments
Unrealized loss (gain) on
valuation of investments����������������������������
Effect of foreign exchange translation*1 ������
Other adjustments*2����������������������������������������
Adjusted EBITDA����������������������������������������������
Segment income����������������������������������������������
Finance cost (interest expenses)������������������������
Foreign exchange gain and loss������������������������
Derivative gain and loss������������������������������������
Change in third-party interests in
SoftBank Vision Fund and Delta Fund������������
Other non-operating income and loss��������������
Income before income tax��������������������������������

Financial Section

Corporate Information

065

Segment income was ¥1,256,641 million, compared with ¥302,981 million in the previous fiscal year.
(Millions of yen)This was mainly due to an unrealized gain of ¥1,378,553 million recorded for continuing investments

Fiscal 2017

Fiscal 2018

ChangeChange %due to an increase in the fair values of Uber, Guardant Health, OYO,1 and other investments, and a

352,095

1,302,838

950,743270.0%–

296,531

296,531–345,975

1,013,228

667,253

192.9%

6,120–(49,114)302,981
1

4,522(11,443)(46,197)
1,256,641
89(1,598)(11,443)
2,917
953,660
88(26.1%)–(5.9%)
314.8%–

realized gain of ¥146,682 million recorded on the sale of Flipkart shares. Conversely, a loss of¥222,628 million was recorded for the investment in NVIDIA.
The total gain on investment in NVIDIA for the entire investment period (December 2016 toJanuary 2019) was ¥306,809 million (before deducting third-party interests). A gain of ¥365,325
million was recorded in the previous fiscal year consistent with NVIDIA’s share price increase, while aloss of ¥222,628 million was recorded in the fiscal year consistent with its share price drop until theinvestment was disposed of in January 2019. On the other hand, derivative gain of ¥168,471 million,
the total amount for the previous fiscal year and the fiscal year, was recorded as non-operating
income, as a result of collar transactions conducted to hedge the share price drop. For more information, see “Investment in NVIDIA” on the following page.
Adjusted EBITDA was ¥427,099 million, compared with negative ¥22,491 million in the previous
fiscal year.

(345,975)–
20,502(22,491)(1,013,228)
11,443
172,154427,099(667,253)
11,443
151,652
449,590

192.9%–
739.7%–

302,981(7,801)(33)(8,902)

1,256,641(33,141)
68
177,373953,660(25,340)101
186,275

314.8%
324.8%––(160,382)(248)
125,615(586,152)(232)
814,557(425,770)
16
688,942265.5%(6.4%)
548.5%

Note:	The segment’s results are calculated as follows:
Segment income = gain and loss on investments at SoftBank Vision Fund and Delta Fund – operating expenses
Adjusted EBITDA = segment income (loss) + depreciation and amortization ± adjustments relating to investments in SoftBank Vision Fund and Delta Fund
(unrealized gain and loss on valuation of investments + effect of foreign exchange translation) ± other adjustments
Notes: 1. The amount arose from the different foreign currency exchange rates used for unrealized gain and loss and realized gain and loss.
2. Mainly derivative gain and loss recorded in relation to collar transactions utilizing NVIDIA shares.

Continuing investments
Unrealized gain on valuation from continuing investments of ¥1,378,553 million was recognized
mainly due to an un-realized gain totaling ¥1,485,410 million, which was recorded for investments
whose fair value increased during the fiscal year, including Uber, Guardant Health, and OYO.1 Fairvalue of the investment in Uber increased ¥418,140 million, resulting from SBIA’s revised fair value
calculation taking into account market expectations, including with regards to the anticipated initialpublic offering. Fair value of the investment in Guardant Health increased ¥203,412 million, consistent
with its share price increase during the fiscal year. Fair value of the investment in OYO increased¥154,189 million, resulting from SBIA’s revised fair value calculation taking into account concluded
fund raising and transactions occurring in the fiscal year. Conversely, unrealized loss totaling ¥106,857
million was recorded for Zhongan Online P&C Insurance Co., Ltd,1 and other investments.
(Fair value changes in fiscal 2018 of investments held by SoftBank Vision Fund,
U.S. dollar-based)
Comparison between fair values at the fiscal year-end with the acquisition values of the investments
acquired in fiscal 2018, or with the initial carrying amounts of fiscal 2018 for the investments acquiredin the previous fiscal year
Fair value increase

29 investments

Fair value decrease

12 investments

No change in fair value

28 investments

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Investment in Flipkart

Capital Deployment

Realized gain on sale of Flipkart of ¥146,682 million was recognized following the completion of the

As of March 31, 2019

Financial Section

066

Corporate Information

sale of Flipkart shares to WAL-MART INTERNATIONAL HOLDINGS, INC. in August 2018, based on the(Billions of U.S. dollars)
Totalsales value of approximately $4.0 billion, net of amount deposited in escrow account6, etc. Capital gains
on investments in entities that operate businesses in India are subject to tax in India. Consequently,
outside segment income, current taxes of ¥64,892 million were recorded for the aforementioned
realized gain in Flipkart, which mainly operates businesses in India. As a result of the sale of Flipkart
shares occurring within 24 months of making the investment, the sale taxed at 43.68%, the Indianshort-term capital gains tax rate.
Investment in NVIDIA
Anticipating the start of operations of SoftBank Vision Fund in 2017, the Company acquired NVIDIA
shares in December 2016 for $2,834 million. SoftBank Vision Fund acquired NVIDIA shares for thesame amount from the Company in September 2017 after the start of its operations. The fundhedged the fall in NVIDIA’s share price through collar transactions using the shares, and subsequently
monetized the shares (the proceeds from which were recorded as borrowings). In January 2019, thefund executed an early unwind of the collar transactions, and elected to deliver NVIDIA shares for the
repayment of borrowings. NVIDIA shares that were not utilized in the collar transactions were soldentirely in January 2019. As a result, gain on this investment was $2,915 million.

Committed capital (A)SoftBank Vision Fund ����������������������������������������������
Delta Fund ��������������������������������������������������������������
Contributions from limited partners7 (B)SoftBank Vision Fund ����������������������������������������������
Delta Fund ��������������������������������������������������������������
Non-recallable contribution9 included in (B)SoftBank Vision Fund ��������������������������������������
Remaining committed capital (C) = (A) – (B)SoftBank Vision Fund *2 ������������������������������������������
Delta Fund10 ������������������������������������������������������������

The Company*1 Third-party investors

97.0
6.0

33.1
4.4

63.9
1.6

50.9
5.1

17.5
3.78

33.4
1.4

(2.5)

(0.9)

(1.6)

46.1
0.9

15.6
0.7

30.5
0.2

Note: Investment in DiDi, which was held by Delta Fund, has been sold to SoftBank Vision Fund in the fourth quarter via promissory note. As the promissory note is
expected to be settled in the three-month period ending September 30, 2019, this transaction has not been reflected in the capital deployment presented above asof March 31, 2019.
Notes: 1. The Company’s committed capital includes approximately $8.2 billion of obligation to be satisfied by using 24.99% of Arm Limited shares. The obligation was
entirely satisfied by the end of the third quarter, resulting in SoftBank Vision Fund holding all of the applicable Arm Limited shares. The Company’s committed
capital also includes $5.0 billion that is earmarked for use in an incentive scheme related to SoftBank Vision Fund.
2. The amount of distribution to limited partners resulting from disposal of NVIDIA shares is included in remaining committed capital as it is recallable.

Of this $2,915 million, valuation gain and realized gain due to NVIDIA’s share price change were$1,450 million, and derivative gain from being able to hedge losses due to its falling share pricethrough collar transactions was $1,465 million. In the consolidated statement of income, the former
was recorded in the fiscal 2016, fiscal 2017, and fiscal 2018 ((A) in the table below), and the latter wasrecorded for fiscal 2017 and fiscal 2018 ((B) below).

(Primary gain and loss related to NVIDIA shares)(Millions of U.S. dollars)
Fiscal 2016

Valuation gain and realized gain due to share price change (A)������������������������������������������������

93 *1

Fiscal 2017

Fiscal 2018

Total

3,296

(1,939)1,450(Millions of yen)
Fiscal 2016

(4,359) *1

Fiscal 2017

Fiscal 2018

Total

365,325(222,628)

138,338

Derivative gain and loss (B)������������������������������������������������������������������������������������������������������

–

(85)

1,550

1,465

–

(8,902)

177,373

168,471

Total gain and loss (before deducting third-party interests) ������������������������������������������������������

93

3,211

(389)

2,915

(4,359)356,423(45,255)

306,809

Impact on segment income������������������������������������������������������������������������������������������������������

–

3,296

(1,939)1,357–

365,325(222,628)

142,697

Impact on adjusted EBITDA������������������������������������������������������������������������������������������������������

–

–

2,915

2,915

–

–

322,003

322,003Note:
1. F or fiscal 2016, which was before the start of operations of SoftBank Vision Fund, a gain of $93 million (a loss of ¥4,359 million in yen terms due to the exchange translation) consistent with changes in NVIDIA’s share price was recorded as gains and losses from financial instruments at FVTPL under non-operating income and loss.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Portfolio

067

Corporate Informationconsent from the investment committee and other bodies (and certain limited partners if applicable) at(Billions of U.S. dollars)

Consumer��������������������������������������������������������������������
Enterprise��������������������������������������������������������������������
Fintech������������������������������������������������������������������������
Frontier Tech����������������������������������������������������������������
Health Tech������������������������������������������������������������������
Real Estate & Construction������������������������������������������
Transportation & Logistics��������������������������������������������
Total����������������������������������������������������������������������������

Financial Section

The Company recognizes that the transfer of such investments is agreed, at the timing when

As of March 31, 2019; excluding exited investments

SectorManagement Organization

Acquisition cost

8.6
1.8
2.6
9.8
3.1
7.7
26.5
60.1

SoftBank Vision Fund and approvals from relevant regulatory authorities are obtained. Sales of these

Fair value

Changeinvestments are made at the fair value at the time the Company made its decision at its applicable

10.8
2.4
3.1
10.2
5.0
9.7
31.1
72.3

2.2
0.6
0.5
0.4
1.9
2.0
4.6
12.2

authority to offer the transfer, and this value will be the acquisition cost for SoftBank Vision Fund.

Note:	SoftBank Vision Fund made some investments through investment holding entities that are subsidiaries, but not wholly owned subsidiaries, of the fund. All
investments made through the investment holding entities are calculated as investments made by SoftBank Vision Fund. As of the fiscal year-end, a wholly owned
subsidiary of the Company is a shareholder of such subsidiaries. Of the acquisition cost of investments made by SoftBank Vision Fund, $1.3 billion belongs to thiswholly owned subsidiary; of the fair values, $1.7 billion belongs to this wholly owned subsidiary.

See page 25 for a complete list of SoftBank Vision Fund portfolio companies.

In the fourth quarter, SoftBank Vision Fund acquired the investment in DiDi for $5.0 billion, which had
been acquired and held by Delta Fund since September 2017, from the sale by Delta Fund. SoftBank
Vision Fund also acquired the investment in DiDi for $6.8 billion, which had been acquired and held

These investments are presented as investments of SoftBank Vision Fund in the Company’s consolidated financial statements, after the Company recognizes that the transfer is agreed.
As for investments transferred during the fiscal year, the differences between the carrying amounts
at the beginning of the fiscal year (or the acquisition cost during the fiscal year) and the sale values
were recorded in non-operating income of the Company’s consolidated statement of income, while
the changes in fair values from the sale values (the acquisition value for SoftBank Vision Fund) wererecorded in segment income of the SoftBank Vision Fund and Delta Fund segment. The sale transactions for the transfer between the Company and SoftBank Vision Fund have been eliminated asinter-group transactions in the Company’s consolidated financial statements.
(Investments Acquired from Sale by the Company in Fiscal 2018)
In fiscal 2018, the Company sold the investments shown below to SoftBank Vision Fund. The saleprice is based on the fair value at the time the Company made its decision at its applicable authority
to offer the transfer.
(Billions of U.S. dollars)by the Company through several transactions since January 2015, from the sale by the Company. For
the investments initially acquired by the Company, see the table in “Investments Acquired from Saleby the Company” below. Both of these transactions were via promissory notes, and the promissory
notes are expected to be settled in the three-month period ending September 30, 2019.
Investments Acquired from Sale by the Company
In addition to direct purchase, some investments of SoftBank Vision Fund are acquired from sale by
the Company, but only if they are in accordance with the fund’s investment eligibility criteria. There
are two types of investments that could be sold to SoftBank Vision Fund: (A) Investments that wereacquired by the Company on the premise of offering the investment to SoftBank Vision Fund and thatwere in accordance with the investment eligibility criteria of the fund at the time of acquisition(“Bridge Investments”) and (B) other investments. Examples of (B) include investments that were madewithout the premise of offering the investment to SoftBank Vision Fund at the time of acquisition, or,investments that were made with the premise of offering the investment to the fund but were not inaccordance with the investment eligibility criteria of the fund at the time of acquisition and therefore
require consent from the limited partners for selling to the fund.

Acquisition value by
the Company

Sale value by theCompany to SVF(Acquisition value by SVF)

7.7
5.9
5.2
18.8

7.7
6.8
5.3
19.8

Uber Technologies, Inc. (Uber)�������������������������������������������������
Xiaoju Kuaizhi Inc. (DiDi)���������������������������������������������������������
Others �����������������������������������������������������������������������������������
Total of 18 investments�����������������������������������������������������������
Note: The above table presents investments whose sale value were above $5 billion, in order of the amount of value.

Portfolio of Delta FundAs a result of the sale of investment in DiDi to SoftBank Vision Fund, there is no investments held in
Delta Fund as of March 31, 2019.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Brightstar Segment
Segment income /Adjusted EBITDA / Adjusted EBITDA margin(Billions of yen)
1,200(Billions of yen)
50

1,082.7

(%)
2

1.1
25

900

1

11.5

0

0

600

300

’17

’18

(FY)

–50

–44.6

–75

’17

’18

		 – 54 investments totaling $33.9 billion were acquired in fiscal 2018, including Uber, DiDi, and Grab1(including acquisitions from the Company).

(FY)

Fiscal 2018

(Millions of yen)March 31, 2018

March 31, 2019

ChangeChange %31,180,466
24,907,444
6,273,022

36,096,476
27,087,272
9,009,204

4,916,010
2,179,828
2,736,182

15.8%
8.8%
43.6%

Reference: Exchange rate at the fiscal year-end used for translations
USD / JPY����������������������������������������
¥106.24¥110.99
GBP / JPY ����������������������������������������
¥148.84¥144.98¥ 4.75¥(3.86)

4.5%(2.6)%

Total assets��������������������������������������
Total liabilities����������������������������������
Total equity��������������������������������������

(Millions of yen)
ChangeOther

Reconciliation

Other

Reconciliation

Other

Reconciliation

97,626(21,835)(303,122)(41,617)

193,742(90,053)(298,900)(63,572)

96,116(68,218)

4,222(21,955)

13,655

1,508

36,776699

23,121(809)(5,042)(13,222)

1,577(38,532)

16,315(36,962)–(62,873)

21,357(23,740)(1,577)(24,341)

Other segment loss was ¥90,053 million, compared with loss of ¥21,835 million in the previous fiscal
year. This was mainly due to operating loss of ¥36,559 million at PayPay Corporation, which isengaged in smartphone payment services in Japan, as a result of its proactive measures to increase thenumber of users and stores where its services are usable.

2. Status of investments• Balance of investments from SoftBank Vision Fund of ¥7.1 trillion, up ¥4.3 trillion from the previous fiscal
year-end• Balance of investment securities (investments outside the fund) of ¥924.6 billion, down ¥1.7 trillion from theprevious fiscal year-end

Other and Reconciliation

Net sales�������������������������������
Segment income�������������������
Depreciation andamortization�����������������������
Other adjustment�����������������
Adjusted EBITDA�������������������

• Repurchased own shares for ¥384.1 billion; used approximately ¥700 billion to strengthen financial position
through repayment of debt.

		 – Exited investments: NVIDIA, Flipkart

Segment income
Adjusted EBITDA
Adjusted EBITDA margin

Fiscal 2017

1.	Disposal of 33.50% of SoftBank Corp. shares• Received proceeds of ¥2.3 trillion. Capital surplus increased ¥1.2 trillion.

		 – The fair values of investments increased.

–17.5
–23.4

–25

0

068

Corporate Information

Financial Position

Net sales

1,075.0

Financial Section

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Current Assets

Management Organization

Financial Section

Corporate Information069

Non-current Assets(Millions of yen)

(Millions of yen)March 31, 2018

March 31, 2019

Change3,334,650
2,314,353
519,444362,041
344,374–
6,874,862

3,858,518
2,339,977
203,476
365,260
766,556
224,201
7,757,988

523,868
25,624(315,968)
3,219
422,182
224,201
883,126

Cash and cash equivalents ������������������������������������������
Trade and other receivables������������������������������������������
Other financial assets ��������������������������������������������������
Inventories ������������������������������������������������������������������
Other current assets����������������������������������������������������
Assets classified as held for sale ����������������������������������
Total current assets������������������������������������������������������

Primary components of the change
Components

Reasons for changes from the previous fiscal year-end

Cash and cash equivalents

See “Cash Flows” for details.

Other current assets

This mainly reflects the recording of an expected withholding tax refund of¥422,648 million on dividends from SoftBank Group Japan Corporation to
SoftBank Group Corp.

Assets classified as held
for sale

As the Company plans to use shares for the settlement of a variable prepaid
forward contract for Alibaba shares in June 2019, the Alibaba shares under thiscontract were transferred from investments accounted for using the equity method.

Property, plant and equipment ������������������������������������
Goodwill����������������������������������������������������������������������
Intangible assets����������������������������������������������������������
Costs to obtain contracts ��������������������������������������������
Investments accounted for using the equity method����
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL ����������������������������������������
Investment securities����������������������������������������������������
Other financial assets ��������������������������������������������������
Deferred tax assets������������������������������������������������������
Other non-current assets����������������������������������������������
Total non-current assets ����������������������������������������������

March 31, 2018

March 31, 2019

Change3,856,847
4,302,553
6,784,550–
2,328,617

4,070,704
4,321,467
6,892,195
384,076
2,641,045

213,857
18,914
107,645
384,076
312,428

2,827,784
2,660,115
676,392
647,514221,232
24,305,604

7,115,629
924,614
1,185,856
586,943
215,959
28,338,488

4,287,845(1,735,501)
509,464(60,571)(5,273)
4,032,884

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Primary components of the change
Components

Reasons for changes from the previous fiscal year-end

Property, plant andequipment

Capital expenditures for the 5G network and leased mobile devices forcustomers increased at Sprint. Meanwhile, telecommunications equipment was
regularly depreciated at SoftBank Corp.

Intangible assets• FCC licenses increased ¥194,529 million due to a weaker yen against the U.S.
dollar.
• Mainly due to regular amortization, customer relationships of Sprint and Arm
decreased ¥83,416 million and Arm’s technologies decreased ¥49,719 million.

Costs to obtain contracts

Costs to obtain contracts at SoftBank Corp. and Sprint were newly recorded
due to the adoption of the new standards.

Investments accounted forusing the equity method

Alibaba’s consolidated carrying amount increased due to the recording ofincome on equity method investments. A consolidated carrying amount of¥86,596 million was newly recorded as Arm China became an equity method
associate. On the other hand, the Alibaba shares under a variable prepaid
forward contract for Alibaba shares were transferred to current assets.

Investments from SoftBank • Newly acquired investments totaling $33.9 billion, including Uber, DiDi, Grab, Vision Fund and Delta Fundand GM Cruise Holdings LLC (“GM Cruise”). Of these, a total of 18
accounted for using FVTPL
investments (sale value totaling $19.8 billion) were acquired from sale by theCompany.
• The fair values of Uber, Guardant Health, OYO,1 and other investments increased.
• The fund disposed of NVIDIA shares and sold Flipkart shares.
Investment securities

Other financial assets

Investments including Uber, DiDi, and Grab (total carrying amounts of ¥1,832,387
million at the previous fiscal year-end) that were sold to SoftBank Vision Fund werereclassified as investments from SoftBank Vision Fund and Delta Fund accounted
for using FVTPL.
Convertible promissory note issued by WeWork and advances received related tothe acquisition of WeWork shares totaling ¥275,477 million were recorded.

Management Organization

Financial Section

Corporate Information

070

Current Liabilities(Millions of yen)Interest-bearing debt ���������������������������������������
SoftBank Group Corp.3���������������������������������
Short-term borrowings�����������������������������
Current portion of long-term borrowings���Current portion of corporate bonds ���������
Others �����������������������������������������������������
SoftBank Corp.���������������������������������������������
Current portion of long-term borrowings���Current portion of lease obligations ���������
Others �����������������������������������������������������
Sprint�����������������������������������������������������������
Current portion of long-term borrowings���Current portion of corporate bonds ���������
Others �����������������������������������������������������
SoftBank Vision Fund �����������������������������������
Short-term borrowings�����������������������������
Current portion of long-term borrowings���
Others ���������������������������������������������������������
Current portion of financial liabilities
relating to sale of shares by variable
prepaid forward contract�������������������������
Others �����������������������������������������������������
Deposits for banking business���������������������������
Third-party interests in SoftBank Vision Fund andDelta Fund�������������������������������������������������������
Trade and other payables ���������������������������������
Derivative financial liabilities�����������������������������
Other financial liabilities �����������������������������������
Income taxes payables �������������������������������������
Provisions���������������������������������������������������������
Other current liabilities�������������������������������������
Total current liabilities���������������������������������������

March 31, 2018

March 31, 2019

Change3,217,405
1,485,851
771,275
214,747
399,829
100,000
803,055
393,916
393,282
15,857364,245
164,466
190,396
9,383
397,095
83,952
313,143
167,159

3,480,960
1,219,305
398,200
79,597
699,508
42,000877,583
469,337
400,6457,601
505,716
158,658
337,745
9,313
36,571
36,571–
841,785

263,555(266,546)(373,075)(135,150)
299,679(58,000)
74,52875,421
7,363(8,256)
141,471(5,808)147,349(70)(360,524)(47,381)(313,143)
674,626–
167,159
684,091

730,601
111,184
745,943

730,601(55,975)
61,852

40,713
1,816,010
96,241
1,646
147,979
65,709658,961
6,728,755

29,677
1,909,608
767,714
10,849534,906
43,685
1,158,355
8,681,697(11,036)
93,598671,473
9,203
386,927(22,024)499,394
1,952,942

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Primary components of the change
Components

Management Organization

Financial Section

Non-current Liabilities

Reasons for changes from the previous fiscal year-end(Millions of yen)Interest-bearing debt
SoftBank Group Corp.3• Due to repayments, short-term borrowings decreased ¥373,075 million andcurrent portion of long-term borrowings decreased ¥135,150 million.
• Current portion of corporate bonds increased ¥299,679 million as corporate
bonds that would mature within a year were transferred from non-current
liabilities, while certain domestic straight corporate bonds were redeemed uponmaturity.

SoftBank Vision Fund

Borrowings using NVIDIA shares through collar transactions were settled withthe shares for repayment.

OthersAs the settlement date of a variable prepaid forward contract for Alibaba sharesbecame due within a year, the related financial liabilities were transferred from
non-current liabilities.

Derivative financial
liabilities

Derivative liabilities relating to the embedded collar transaction in the variable
prepaid forward contract for Alibaba shares were transferred from non-current
liabilities.

Income taxes payables

This mainly reflects the recording of an amount equivalent to taxes payable forthe gain on disposal that arose at seller SoftBank Group Japan Corporation as aresult of the disposal of SoftBank Corp. shares.

Other current liabilities

071

Corporate Information

This mainly reflects the recording of an expected withholding income tax
payment of ¥422,648 million on dividends from SoftBank Group Japan
Corporation to SoftBank Group Corp.

Interest-bearing debt ���������������������������������������
SoftBank Group Corp.3���������������������������������
Long-term borrowings �����������������������������
Corporate bonds���������������������������������������
SoftBank Corp.���������������������������������������������
Long-term borrowings �����������������������������
Lease obligations �������������������������������������
Others �����������������������������������������������������
Sprint�����������������������������������������������������������
Long-term borrowings �����������������������������
Corporate bonds���������������������������������������
Others �����������������������������������������������������
SoftBank Vision Fund �����������������������������������
Others ���������������������������������������������������������
Financial liabilities relating to sale of sharesby variable prepaid forward contract�������
Others �����������������������������������������������������
Third-party interests in SoftBank Vision Fundand Delta Fund�����������������������������������������������
Derivative financial liabilities�����������������������������
Other financial liabilities �����������������������������������
Defined benefit liabilities�����������������������������������
Provisions���������������������������������������������������������
Deferred tax liabilities���������������������������������������
Other non-current liabilities�������������������������������
Total non-current liabilities �������������������������������

March 31, 2018

March 31, 2019

Change13,824,783
7,732,330
3,215,459
4,516,871
896,435
217,514
670,862
8,059
3,979,705
1,346,576
2,612,178
20,951
101,312
1,115,001

12,204,146
5,495,645
1,418,764
4,076,881
2,309,035
1,646,349
662,686–
3,922,662
1,571,545
2,336,904
14,213–476,804(1,620,637)(2,236,685)(1,796,695)(439,990)
1,412,600
1,428,835(8,176)(8,059)(57,043)
224,969(275,274)(6,738)(101,312)(638,197)–

688,332
426,669

476,804(688,332)
50,135

1,803,966
865,40262,372
100,486
132,139
1,085,626
303,915
18,178,689

4,107,288
130,545
57,11599,351
157,478
1,391,072
258,580
18,405,575

2,303,322(734,857)(5,257)(1,135)25,339305,446(45,335)
226,886

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Primary components of the change
Components

Management Organization

Financial Section• Long-term borrowings decreased ¥1,796,695 million.
SoftBank Group Corp. repaid a portion of its senior loan before maturity byusing ¥1.6 trillion, which was received from SoftBank Corp. as repayment of
its borrowings from the company, as part of the preparations to list SoftBank
Corp. shares.
Borrowings made through a wholly owned subsidiary Skywalk Finance GK
using Alibaba shares3 decreased ¥285,161 million. (Additional borrowings of¥161,084 million and repayment of ¥475,797 million were made in the fiscal
year. Balance at the fiscal year-end: ¥557,152 million)• Corporate bonds decreased ¥439,990 million.
Corporate bonds of ¥700 billion were transferred to current liabilities as they
became due within a year. In addition, foreign currency-denominated seniornotes totaling ¥357.6 billion were redeemed before maturity and a portion
was repurchased for ¥106.2 billion ($410 million and €520 million). On theother hand, corporate bonds totaling ¥722.7 billion were issued.

SoftBank Corp.

SoftBank Corp. made new borrowings of ¥1.6 trillion through a senior loan aspart of its preparations for listing and subsequently repaid part of this loan.

OthersFinancial liabilities related to the variable prepaid forward contract for Alibaba
shares were transferred to current liabilities.

Third-party interests in
See page 113 “b. Changes in interests attributable to Third-Party Investors” for SoftBank Vision Fund and details.
Delta Fund
Derivative financial
liabilities

Derivative liabilities relating to the embedded collar transaction in the variable
prepaid forward contract for Alibaba shares were transferred to current liabilities.

072

EquityReasons for changes from the previous fiscal year-end(Millions of yen)Interest-bearing debt
SoftBank Group Corp.3

Corporate Information

Common stock������������������������������������������������������������
Capital surplus ������������������������������������������������������������
Other equity instruments ��������������������������������������������
Retained earnings��������������������������������������������������������
Treasury stock��������������������������������������������������������������
Accumulated other comprehensive income������������������
Available-for-sale financial assets������������������������������
Equity financial assets at FVTOCI������������������������������
Debt financial assets at FVTOCI��������������������������������Cash flow hedges����������������������������������������������������
Exchange differences on translating
foreign operations��������������������������������������������������
Total equity attributable to owners of the parent����������
Non-controlling interests����������������������������������������������
Total equity������������������������������������������������������������������
Ratio of equity attributable to owners of the parent����

March 31, 2018

March 31, 2019

Change238,772
256,768
496,876
3,940,259(66,458)
317,959
63,700––(55,286)

238,772
1,467,762
496,876
5,571,285(443,482)
290,268–
6,661
267(45,791)–
1,210,994–
1,631,026(377,024)(27,691)(63,700)
6,661
267
9,495

309,545

329,131

19,586

5,184,176
1,088,846
6,273,022
16.6%

7,621,481
1,387,723
9,009,204
21.1%

2,437,305
298,877
2,736,182
4.5 ppPrimary components of the change
Components

Reasons for changes from the previous fiscal year-end

Capital surplus

Capital surplus increased due to the disposal of SoftBank Corp. shares by awholly owned subsidiary of the Company.

Retained earnings

Net income attributable to owners of the parent of ¥1,411,199 million wasrecorded. The cumulative impact of adopting the new standards of ¥300,615
million was recorded on April 1, 2018.

Treasury stock

The Company repurchased its own shares for ¥384.1 billion.

Accumulated othercomprehensive income• The cumulative impact of adopting the new standards of ¥57,828 million wasreclassified as retained earnings on April 1, 2018
• Exchange differences on translating foreign operations increased ¥19,586
million. The yen depreciated against the U.S. dollar while it appreciatedagainst the British pound.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

073

Cash Flows
1.	Proceeds of ¥2.3 trillion from the disposal of SoftBank Corp. shares were utilized for shareholder returns
and strengthening of financial position.
• Shareholder
returns: ¥384.1 billion has been used for share repurchase as of the fiscal year-end, of a
maximum allowance of ¥600.0 billion.

Cash Flows from Operating Activities
Cash flows from operating activities increased ¥83,241 million year on year. While net income
increased ¥216,806 million year on year, this included an increase in non-cash income such as
unrealized gain on valuation of investments at SoftBank Vision Fund.

• Strengthening
of financial position: reduced debt by approximately ¥700.0 billion, including a ¥106.2 billion
repurchase of outstanding foreign currency-denominated senior notes and repayment of borrowings of¥475.8 billion made using Alibaba shares.
2.	Dissolution of debtor-creditor relationship between SoftBank Group Corp. and SoftBank Corp. prior tolisting of SoftBank Corp.
• S oftBank Corp. implemented borrowings through a senior loan of ¥1.6 trillion and repaid the same amountborrowed from SoftBank Group Corp.
• S oftBank Group Corp. used the entire ¥1.6 trillion to partially repay its senior loan before maturity.

Cash Flows from Investing Activities
Primary components for fiscal 2018
Components

Primary details

Outlays for purchase of property, plantand equipment and intangible assets¥(1,364,954) million

Sprint acquired telecommunications equipment and leased
devices. SoftBank Corp. acquired telecommunications
equipment.

Payments for acquisition of investments¥(822,628) million

A wholly owned subsidiary of the Company invested a total of$1.5 billion in WeWork.
“Payments for acquisition of investments” includes the totalacquisition cost by the Company of ¥187,634 million for six
investments that were initially acquired by the Company andsold to SoftBank Vision Fund during the fiscal year, such as GM
Cruise and Doordash, Inc.

Payments for acquisitions of investment
by SoftBank Vision Fund and Delta Fund¥(1,576,790) million

SoftBank Vision Fund made new investments.
For investments made in the fiscal year, see “Portfolio” under“SoftBank Vision Fund and Delta Fund Segment”. Investmentsthat were acquired from sale by the Company are recorded as“Payments for acquisition of investments” at the time of theCompany’s acquisition.

Proceeds from sale of investments by
SoftBank Vision Fund and Delta Fund
¥428,865 million

SoftBank Vision Fund sold Flipkart shares and NVIDIA shares thatwere not utilized in the collar transactions.

3. Cash flow related to SoftBank Vision Fund•C
 ontributions from third-party investors of ¥2.1 trillion (cash flows from financing activities);
payments for acquisition of investments of ¥1.6 trillion (cash flows from investing activities)• Impact in fiscal 2018 from exits from two investments		 – Proceeds from sales of investments of ¥428.9 billion (cash flows from investing activities): proceeds fromthe sale of Flipkart shares and disposal of NVIDIA shares that were not utilized in the collar transactions		 – Distribution/repayment to third-party investors of ¥486.4 billion (cash flows from financing activities):
distributed the proceeds from sales and monetization through borrowings to third-party investors(Millions of yen)
Fiscal 2017

Fiscal 2018

ChangeCash flows from operating activities����������������������������Cash flows from investing activities������������������������������

1,088,623(4,484,822)

1,171,864(2,908,016)

83,241
1,576,806

Cash flows from financing activities ����������������������������

4,626,421

2,202,291(2,424,130)

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Cash Flows from Financing Activities
Primary components for fiscal 2018
Component

Primary details

Proceeds from interest-bearing debt
¥6,189,112 million
Proceeds from borrowings*1¥4,959,821 million• In preparation for listing, SoftBank Corp. borrowed ¥1.6 trillion
through a senior loan. The proceeds from the senior loan were used
to repay its borrowings from SoftBank Group Corp., which was eliminated as an intercompany transaction.
• Sprint implemented borrowings through the securitization of­receivables and term loans.
• SoftBank Group Corp. borrowed ¥161,084 million by using Alibaba
shares, through a wholly owned subsidiary.

Proceeds from issuance of bonds SoftBank Group Corp. issued corporate bonds totaling ¥722.7 billion¥747,744 million
for redemption of bonds.
Repayment of interest-bearing debt¥(7,128,379) million
Repayment of borrowings*1¥(5,526,771) million• SoftBank Group Corp. used all of the ¥1.6 trillion repayment received
from SoftBank Corp. to partially repay its senior loan before maturity.
The company also repaid borrowings of ¥475,797 million madethrough using Alibaba shares.
• Sprint and SoftBank Corp. repaid borrowings that were mainly madeby securitizing receivables.

Redemption of corporate bonds¥(1,061,732) million• SoftBank Group Corp. redeemed corporate bonds totaling ¥757.6
billion, including early redemption, and repurchased a portion of outstanding foreign currency-denominated senior notes for ¥106.2 billion.
• Sprint redeemed corporate bonds of $1.8 billion at maturity.

Contribution to SoftBank Vision
Fund and Delta Fund fromthird-party investors¥2,133,682 million

SoftBank Vision Fund received cash contributions from third-party
investors based on capital calls.

Distribution/repayment from
SoftBank Vision Fund and Delta
Fund to third-party investors¥(486,388) million

SoftBank Vision Fund made distributions and repaid the principal forinvestments to third-party investors from the sale of Flipkart shares andthe disposal of NVIDIA shares.

Proceeds from the partial sales ofshares of subsidiaries tonon-controlling interests¥2,350,262 million

Proceeds of ¥2,349,832 million were received from the disposal of a portionof SoftBank Corp. shares.

Purchase of shares of subsidiaries
from non-controlling interests¥(229,818) million

SoftBank Corp. acquired shares of Yahoo Japan Corporation from
Altaba Inc. through a tender offer.

Purchase of treasury stock¥(384,102) million

SoftBank Group Corp. repurchased its own shares.

Note: 1. Proceeds from borrowings and repayments of borrowings include proceeds of ¥945,737 million and outlays of ¥1,397,796 million, respectively, related to borrowings
with a contracted term of one year or less.

Management Organization

Financial Section

Corporate Information

074

Notes for “Management’s Discussion and Analysis of Results of Operations and Financial Position”
1. The names of the investments of SoftBank Vision Fund are presented in the order of the size of the investments’ impact on the Company’s
financial results, unless otherwise stated.
2. To enable investors to appropriately understand and assess the Company’s management performance, the Company has presented operating income arising from SoftBank Vision Fund and Delta Fund separately from that of other segments in a subcategory under operating
income as “Operating income from SoftBank Vision Fund and Delta Fund.”
3. The presentation of the interest-bearing debt and finance cost of SoftBank Group Corp. includes borrowings made by Skywalk Finance GK,
a wholly owned subsidiary of the Company, using Alibaba shares. The borrowings are not guaranteed by SoftBank Group Corp., hence
non-recourse to the company.
4. In its consolidated statement of income, the Company applies the equity method to the financial statements of Alibaba on a three-monthtime lag, as it is impracticable to conform the reporting period of Alibaba due to the contract with Alibaba, among other reasons. However,
the Company performs necessary adjustments for material transactions or events that arise during the lag period and which are publicly
announced by Alibaba.
5. The acquisition costs and fair values of the investments at SoftBank Vision Fund include the investments made by subsidiaries of the Company through investment holding entities that are subsidiaries of SoftBank Vision Fund.
6. Amount deposited for future indemnity claims
7. Contributions from limited partners of SoftBank Vision Fund excludes the amount that was repaid to limited partners due to investment
plan changes and other reasons after the contribution had been made.
8. The Company’s obligation to Delta Fund is offset against the value of the investment securities in DiDi acquired by the Company and thentransferred to Delta Fund.
9. Non-recallable contribution of SoftBank Vision Fund represents the applicable principal for the investment in Flipkart, which was returned tolimited partners after the sale of its shares.
10. When an investment is made from the remaining committed capital of the third-party investor at Delta Fund, the same amount isdeducted from that investor’s remaining committed capital at SoftBank Vision Fund.

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

075

Risk Factors
With respect to SoftBank Group Corp. (“SBG”) and its subsidiaries and associates (“Group compa-(2) Global Trends in Political and Economic Situations and Financial Markets

nies”; SBG and Group companies are collectively referred to as the “Group”), SBG, the strategic

In addition to Japan, the Group conducts investments and businesses in countries and regions

investment holding company, exercises overall control of Group companies and manages them as anoverseas, such as the United States, China, India, Europe, and Latin America. Therefore, deterioration

investment portfolio. Meanwhile, Group companies operate in a wide range of markets in Japan andin economic situations or financial markets as a result of changes in the political or economic

overseas. Accordingly, a variety of risks accompany the execution of these corporate activities. The

situations in such countries and regions or as a result of changes in international situations due tomajor risks envisaged by the Group as of June 19, 2019, that could significantly affect investors’

factors such as trade disputes or conflicts could lead to the Group being unable to conduct invest-

investment decisions are outlined below. Moreover, these risks do not include all of the risks that thements or businesses in accordance with expectations. For example, the equity value of the Group’sGroup could face. Forward-looking statements were determined as of June 19, 2019, unless otherwise

shareholdings could fall, conditions for the monetization of investments could deteriorate, orstated.

monetization could be delayed, or a decrease in demand for the products or services that the Groupor its portfolio companies provide could adversely affect the results of operations of respective(1) The Group’s Business Modelcompanies. Further, a sudden deterioration in the market environment, among other reasons, could

Based on its unique organizational strategy, the Cluster of No. 1 Strategy (see page 17 “Growth

result in an inability to dispose of investments in low-liquidity unlisted companies at a time, on a scale,

Strategy of the SoftBank Group—Cluster of No. 1 AI Strategy”), the Group will invest in its subsid-

or under conditions desired by the Group. As a result, such factors could adversely affect the Group’s

iaries and associates (for example, SoftBank Corp. and Arm) and invest through participating inresults of operations and financial position.

investment funds (for example, SoftBank Vision Fund) to build a group of companies engaged in

The Group’s foreign currency-denominated investments in overseas companies could incur foreign

diverse businesses in the information and technology field and endeavor to maximize corporate value

exchange losses due to changes in foreign exchange rates between the time of investment and theover the medium to long term. In the process, portfolio companies (including Group companies) willtime of disposal. Further, in the preparation of the Group’s consolidated financial statements, the local

seek autonomous growth. Meanwhile, as a strategic investment holding company, SBG will use its

currency-based revenues, expenses, assets, and liabilities of Arm and other overseas Group companies

various networks to support portfolio companies through such means as promoting businessare converted into Japanese yen. Consequently, fluctuations in foreign exchange rates could affect thecollaborations among them, and thereby help enhance the corporate value of each company. If theGroup’s results of operations and financial position.

business development and results of operations of these portfolio companies differ from the Group’s
expectations at the time of investment, the returns on these investments may not be in accordance(3) Management Teamwith the Group’s expectations, which could adversely affect the Group’s business activities and results

Unforeseen situations concerning key members of management—especially Chairman and CEO ofof operations.

SBG and Group Representative Masayoshi Son—could impede the Group’s business activities.

As a pure holding company, SBG raises funds for the investment activities required to build theaforementioned group of companies. With its main sources of income being dividend income from(4) Investment Activities

Group companies and distributions from investment funds in which it participates as a limited partner,

The Group’s investment activities are led by SBG and include corporate acquisitions, establishment of

SBG also raises funds through monetization of its investment assets and debt to meet capital demand

subsidiaries and joint ventures, and acquisitions of interests in operating companies or holding

for contributions to investment funds and other investment activities. Decreases in dividend income orcompanies (including companies that effectively control other companies through various contracts)

distributions from investment funds could adversely affect SBG’s creditworthiness in relation toand investment funds. These investment activities are associated with risks such as those stated below.

fund-raising or adversely affect its results of operations. Also, if in response to capital demand SBG is

The materialization of these risks could adversely affect the Group’s results of operations, financial

unable to raise appropriate amounts in a timely manner based on conditions that are favorable to it, its

position, and cash flows.

investment activities could be restricted. Either eventuality could hinder the Group’s sustained growth.

SoftBank Group Corp.
ANNUAL REPORT 2019

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Management Organization

Financial Section

Corporate Information

076

a. Risks associated with the results of operations of portfolio companies

d. Risks related to partners in joint ventures and business alliances

Due to a deterioration in the results of operations of portfolio companies, such as a decrease in their

In some cases, the Group develops its business in Japan and overseas through the establishment of

profitability, or due to the inability of portfolio companies to develop businesses in accordance withjoint ventures, formation of business alliances, and so forth with other companies. Drastic changes in

expectations at the time of investment, impairment losses on or write-downs of assets acquired

business strategy by these joint venture partners or business alliance partners or a drastic deterioration

through investments—including goodwill; property, plant and equipment; intangible assets; orin their results of operations or financial position could lead to joint ventures or business alliancesfinancial assets such as shares—could be recognized, expected profit distributions or other returns

being unable to produce results in accordance with expectations or having difficulty continuing. In

from portfolio companies could be unobtainable, or investments could be uncollectible.

addition, the execution of a joint venture or business alliance with a particular third party could restrict

In the non-consolidated financial statements of SBG, any decline in the value of assets that wereobtained through these investment activities, including equity interests, could cause SBG to recognize

the execution of joint ventures, business alliances, and so forth with other companies, which could
lead to the loss of larger earnings opportunities.

a valuation loss, which could have an attendant impact on SBG’s results of operations and the
distributable amount. Furthermore, a deterioration in the results of operations of portfolio companies

e. Risks related to the governance and compliance of portfolio companies

could result in an inability to obtain dividends from portfolio companies in accordance with expecta-

Portfolio companies may be facing internal control problems or conducting unlawful activities that thetions, which could adversely affect cash flows.

Group was unable to discover at the time of investment. An inability to promptly correct such

In some cases, SBG provides portfolio companies with financial assistance through loans, guaran-

problems or activities, despite the introduction of measures for their monitoring and correction after

tees, and other means when it deems such assistance to be necessary for enhancement of the Group’s

investment, could impair the credibility and corporate image not only of portfolio companies but also

corporate value. If portfolio companies are unable to develop businesses as anticipated at the time ofof the Group, which could adversely affect business activities of the Group.

investment, or are unable to create sufficient synergies with other subsidiaries and associates, or
require more funds than anticipated to develop their businesses, SBG may provide them with financial(5) Response to Changes in Technology and Business Models

assistance such as loans, which could increase risk assets in relation to said portfolio companies.

The Group conducts investments and businesses in information and technology industries (forexample, the telecommunications industry and the semiconductor industry), which are subject to rapid

b. Regulatory riskschanges in technology and business models. If, for some reason, the Group is unable to develop or

In some cases, the investment activities that the Group conducts (including corporate acquisitions andintroduce outstanding technologies or business models in anticipation of market or other trends, themergers) require approvals and permissions from regulatory authorities. An inability to obtain theseproducts and services that the Group offers based on its technologies or business models could lose

approvals and permissions could result in the Group being unable to invest in accordance withcompetitiveness in the market, which could make it difficult to acquire and retain customers. This

expectations.

could adversely affect the Group’s results of operations.

c. Risks related to mergers and acquisitions(6) Competition

With respect to the Group’s investments conducted to acquire or merge companies, if the businessIn certain instances, the Group’s competitors may have a competitive advantage over the Group in

development plan does not progress as expected at the time of the Group’s investment, for suchterms of capital, technology development capabilities, price competitiveness, customer base, sales

reasons as a loss of key members of management, employees, business partners, or customers at thecapabilities, brands, or public recognition, for example. If these competitors were to develop or sellacquired or merged companies after such investment, the business development and results ofservices and products that harness these competitive advantages to a greater extent than at present,

operations of these companies could be adversely affected, or sufficient synergies may not be createdthe Group may be placed at a disadvantage in sales competition, or may be unable to provide services

after the acquisition or merger. As a result, returns in accordance with expectations may be unobtain-

and products, or acquire or retain customers as anticipated. This could adversely affect the Group’s

able from such investments.

results of operations.

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Moreover, even though the Group’s services and products are introduced ahead of competitors’Management Organization

Financial Section

Corporate Information

077(8) SoftBank Vision Fundofferings or have strong competitive advantages relative to them, competitors’ introduction of services

SoftBank Vision Fund (“SVF”) invests in companies across a wide range of technology sectors,

and products that are equivalent or superior to the offerings of the Group could reduce its competi-

focusing on unlisted companies that are rolling out innovative business models or services. SVF istiveness, result in expenses incurred in development becoming unrecoverable, or impair related

managed by SBG’s wholly owned subsidiary in the United Kingdom, SB Investment Advisers (UK)business assets (including intangible assets). This could adversely affect the Group’s business activities,

Limited (“SBIA”), which is regulated by the United Kingdom’s Financial Conduct Authority. SBG invests

results of operations, and financial position.

in SVF as a limited partner. Also, SBIA is entitled to receive management fees and performance fees,
each of which is measured by reference to the investment activities of SVF.

(7) Fund Procurement

As of March 31, 2019, total committed capital for SVF was USD 97.0 billion*1 (including USD 33.1

In the Group, SBG procures the funds it requires for developing its business and conducting invest-

billion from the Group); cumulative contributions from limited partners were USD 50.9 billion

ment activities by borrowing from financial institutions, borrowings through the use of its sharehold-(including USD 17.5 billion from SBG), and remaining committed capital was USD 46.1 billion

ings (asset-backed financing), issuing corporate bonds, and other sources. On the other hand,(including USD 15.6 billion by the Group).

self-financing entities, including the listed subsidiaries and associates SoftBank Corp., Sprint, YahooSVF and SBIA are subject to the particular risks stated below. If any of these risks were to emerge,

Japan, and Alibaba, as well as Arm, Brightstar, and SoftBank Vision Fund, procure their respective

they could adversely affect the results of operations of SVF and SBIA, and, subsequently, the results offunds independently. A rise in interest rates due to such factors as changes in respective countries’

operations, financial position, and cash flows of the Group. They could also adversely affect SBG’sfinancial policies or in financial markets, or a decline in SBG or its subsidiaries and associates’

results of operations and the distributable amount.

creditworthiness, which could take the form of a downgrading of their credit ratings, due to adecrease in the value of owned assets or a deterioration in their results of operations, could increase
the cost of procuring funds for Group companies and adversely affect the Group’s results of operations. Further, an inability to procure funds at a time, on a scale, or under conditions as planned could
adversely affect the Group’s investment and business activities, results of operations, and financial
position.
The Group may undertake new fund procurement or refinancing, sell some of its assets, or takeother measures to secure resources for the repayment of procured funds. Such factors as a deterioration in the fund procurement environment could force the Group to dispose of assets under disadvantageous terms or execute unplanned disposals of assets in order to secure resources for repayment,
which could adversely affect the Group’s results of operations, business activities, and financial
position.
In addition, various covenants may be attached to the Group’s debt, including borrowings fromfinancial institutions, corporate bonds, and other transactions. If the potential arises for any of thesecovenants to be breached and the Group is unable to take steps to avoid breaching them, the Group
could forfeit the benefit of the term relating to the obligation concerned, and in conjunction with thisforfeit the Group could be requested to repay other borrowings in lump sum payment as well. As aresult, the Group’s results of operations, business activities, and financial position could be adversely
affected.

Note: 1. The committed capital of the Group includes USD 5.0 billion earmarked for use in an incentive scheme related to SVF.

a. Impact on the results of operations
All entities that comprise SVF are consolidated by the Group. Investments held by SVF are measured atfair value at the end of every quarter. Changes in fair value are recognized as gain and loss on
investments (except for gain and loss on investments in subsidiaries) in operating income from
SoftBank Vision Fund and Delta Fund in the consolidated statements of income. Fair value is measured
by combining multiple methods, such as the price of recent transactions, discounted cash flow, andmarket comparable companies. A decline in the fair value of the investments—due to factors such asa deterioration in the results of operations of portfolio companies or a downturn in financial markets
and economic conditions—could lead to a deterioration in the results of operations of SVF, which
could have an adverse effect on the Group’s results of operations and financial position. Further, in the
non-consolidated financial statements of SBG, a deterioration in the results of operations of SVF could
give rise to valuation loss on investment made as a limited partner, which could have an adverse effecton the results of operations and the distributable amount.
The portfolio companies in which SVF has invested that, based on IFRSs, the Group is deemed tocontrol are treated as subsidiaries of the Group. The results of operations as well as assets andliabilities of said subsidiaries are reflected in the Group’s consolidated financial statements. Therefore,
a deterioration in the results of operations of said portfolio companies that are subsidiaries could havean adverse effect on the Group’s results of operations and financial position. Gain and loss on
investments in said subsidiaries that are recognized at SVF are eliminated in consolidation.

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078

b. Investments acquired from sale by the Group

carefully selecting investments and promoting growth after investment through the provision of a

In addition to direct purchases, SVF acquires some investments from the sale of investments held

wide range of support. For the success of these investment activities, it is essential to secure and retain

directly or indirectly by SBG, only if they are in accordance with SVF’s investment eligibility criteria. The

capable personnel who possess broad knowledge of technology and financial markets as well as

price of such sales to SVF is based on the fair value when SBG made its decision at its applicablespecialized skills in managing investment businesses. SBIA is expanding and enhancing its investment

authority to offer the transfer. In some cases, a transfer requires the approval of relevant regulatory

and management capabilities. However, the inability of SBIA to secure or retain an adequate number

authorities or the agreement of certain of SVF’s limited partners. As a result, even if SBG has made aof such capable personnel could have an adverse effect on the maintenance or expansion of thedecision at its applicable authority, the sale could take time, or it may not be implemented. In such ainvestment scale and future investment performance of the investment funds it manages.

case, SBG may be unable to receive proceeds from the sale of investments to SVF as planned, which
could have an adverse effect on SBG’s financial management by requiring measures such as additionale. Limited partners

financing.

For each of SVF’s investments, SBIA issues capital calls to its limited partners. The inability of limited
partners to contribute capital for any reason could restrict the investment amounts of SVF and result inc. Investment performanceit being unable to invest as planned. Also, because certain limited partners that provide large

Net proceeds from the investment performance of SVF are distributed to limited partners, whocommitted capital amounts have a veto for investments above a certain threshold amount, thecomprise SBG and third-party investors. They are also distributed to SBIA as performance fees. If SVF

exercise of a veto could result in SBIA being unable to conduct investments as planned.

experiences a deterioration in investment profitability and an inability to obtain investment performance as planned, SBG could be unable to receive performance-based distributions as a limited

f. Regulation of new technologies or business models

partner in accordance with expectations or could be unable to recover its capital contributions. SBIA

SVF’s portfolio includes companies that are advancing the use of or conducting research and develop-

may also be unable to receive performance fees in accordance with expectations.

ment in relation to new technologies such as AI and big data and companies that are rolling out new

Further, SBIA receives performance fees after the disposition of investments, the receipt ofbusiness models that are different from existing business models. The business fields in which these

dividends from investments, or the monetization of shares. The performance fees to SBIA from thetypes of new technologies and business models are offered (for example, autonomous vehicles andmonetization of investments are not paid to SBIA during the investment period of SVF (in principle, up

ride-sharing services) may be subject to strict regulations in many countries and regions. With theto November 20, 2022). Instead, an amount equivalent to the performance fees attributable to SBIA isdevelopment of related laws, the introduction of or changes in regulations could have an adverse

temporarily paid to the limited partners during the investment period, under the Limited Partnershipeffect on portfolio companies’ business development and their results of operations by, for example,

Agreement. After the investment period, the equivalent amount is paid to SBIA as performance fees,

requiring portfolio companies to change, suspend, or discontinue the deployment of technologies,

which is given priority over the performance-based distributions to limited partners from monetization

business models, or related research and development plans.

of investment in post-investment period. After the investment period, however, the performance fees
received are subject to a clawback provision (a provision requiring the return of performance fees

g. Concentration of investments in specific business fields

received in the past), which is triggered under certain conditions based on future investment perfor-

SVF invests in multiple companies in specific business fields, which in some cases leads to a high levelmance. Therefore, if the investment performance of SVF does not exceed a certain level, SBIA may beof concentration of investments in said business fields. For example, SVF has invested in companies

unable to receive performance fees in accordance with expectations. Also, if the investment perfor-that provide ride-sharing services, including Uber Technologies, Inc., Xiaoju Kuaizhi Inc., and GRAB

mance at the time of liquidation of SVF does not exceed a certain level, the amount of performance

HOLDINGS INC. In such business fields, a deterioration in the business environment, such as sluggish

fees that have been received by SBIA up until then could be reduced, or SBIA may not be able todemand or intensified market competition (including competition among portfolio companies), could

receive performance fees.

result in a deterioration in the results of operations, such as a decrease in the profitability of aportfolio company; an inability to develop a business in accordance with expectations at the time ofd. Securing and retaining human resources

SVF’s investment; or a deterioration in the market’s valuation of said business fields. Such develop-

SBIA seeks to maximize the equity value of the investment funds that it manages, including SVF, byments could adversely affect the results of operations or the fair value of portfolio companies.

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079(9) Telecommunications Businessiii. Consignment of operations

There are particular risks associated with the telecommunications business, which in the Group is

The Group consigns sales activities, acquisition and retention of customers mainly for telecommunica-

mainly operated by SoftBank Corp. and Sprint, as listed below.

tions services, and the execution of other related operations in whole or part to subcontractors. The
Group’s business activities could therefore be adversely affected if these subcontractors are unable toa. Capacity enhancement of telecommunications networks

execute operations in line with the Group’s expectations.

To maintain and enhance the quality of its telecommunications services, the Group must continuously

As these subcontractors are responsible for the sale of the Group’s services and products, damage

increase the capacity of its telecommunications networks (by securing required spectrum, for example)

to the credibility or corporate image of these subcontractors would also have a negative impact on thebased on predictions regarding the amount of future network traffic. The Group thus intends toGroup’s credibility or corporate image. This could hinder business development and the acquisition

systematically increase network capacity. However, if the actual amount of network traffic was toand retention of customers, which could adversely affect the Group’s results of operations.

drastically exceed the Group’s predictions, or if the Group was unable to carry out network capacity

Furthermore, if these subcontractors should fail to comply with laws and regulations, the Group could

enhancement in accordance with plans, service quality could decline, which could have an adverse

receive a warning or administrative guidance from the relevant regulatory authorities, or be investi-

effect on the acquisition and retention of customers. In this case, the Group would need to executegated for non-fulfillment of its supervisory responsibility, and the Group’s credibility or corporate

additional capital expenditure. These outcomes could adversely affect the Group’s results of operations

image could deteriorate as a result, making it difficult to acquire and retain customers. As a result, theand financial position.

Group’s results of operations could be adversely affected.

b. Dependence on management resources of other companies

c. Regulations about health risks associated with electromagnetic waves

i. Use of facilities, etc., of other companies

There have been some research results that have indicated the possibility that electromagnetic waves

The Group makes use of certain telecommunications lines and facilities owned by other operators

emitted from mobile devices and base stations have adverse health effects, such as increasing the risk

when constructing the telecommunications networks required for providing telecommunicationsof cancer. The International Commission on Non-Ionizing Radiation Protection (ICNIRP) has prescribed

services. The Group’s business activities and results of operations could therefore be adversely affected

guidelines relating to the amplitude of these electromagnetic waves. The World Health Organization

if it becomes difficult to continue to use those facilities, or if utilization or connection rates for those(WHO) has issued an opinion that there is no clear evidence showing that electromagnetic waves havefacilities were to be increased.

adverse effects on health when their amplitude is within the reference values stated in the ICNIRP’s
guidelines and recommends that all countries adopt them.

ii. Procurement of various equipment

The Group complies with a policy for protection from electromagnetic waves based on the ICNIRP’s

The Group procures telecommunications equipment, network devices, and so forth (mobile devices

guidelines in Japan, and complies with the requirements of the Federal Communications Commission

and radio equipment for mobile phone base stations, for example) from other companies. The Group(FCC) in the U.S. However, the WHO and other organizations continue to conduct research andmay be unable to switch suppliers or equipment in a timely manner should problems occur with theinvestigations, the results of which may lead to regulations being revised in the future, or new

procurement of equipment in a case where the Group relies heavily on a specific supplier. Suchregulations being introduced. Complying with such revision or introduction of regulations may incur

problems could include supply interruptions, delivery delays, order volume shortfalls, and defects.

costs, or may restrict the Group’s business operations, which could adversely affect the Group’s results

Suppliers may also cease to provide the maintenance and inspection services required for telecom-of operations.

munications equipment to maintain performance. Either of these situations could impede the Group’s

Moreover, regardless of the presence of such regulations, concerns over the adverse effects onprovision of services, making it difficult to acquire and retain customers, or cause the Group to incur

health associated with the use of mobile devices could make it difficult for the Group to acquire andadditional costs for changing a supplier, or cause a decline in sales of telecommunications equipment.

retain customers, which could adversely affect the Group’s results of operations.

This could adversely affect the Group’s results of operations.

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Growth Strategy(10) Renewable Energy Business

Management Organization

Financial Section

Corporate Information

080

affect the Group’s results of operations.

The Group conducts renewable energy businesses engaged in solar power generation and wind
power generation in Japan, India, Mongolia, and other countries. In principle, these businesses are(12) Country Risk

conducted based on investment from the Group and project finance formats that entail financing

The Group’s entry into a country or region with respect to which the Group has insufficient knowledge

from financial institutions and other third parties. However, weather conditions, the malfunction ofor experience to conduct investment activities or business activities could hinder said activities. For

power generation or transmission facilities, and other factors that cause the volume of power

example, the Group may be unable to conduct investment activities or business activities in accor-

generated or sold to be dramatically lower than projections could result in the Group being unable todance with expectations.

receive returns in accordance with expectations.

Moreover, the occurrence of political, social, or economic turbulence in countries and regions, due
to the outbreak of wars, conflicts, or terror attacks, the enactment of economic sanctions, the(11) Laws, Regulations, and Systems

outbreak of communicable diseases, and other events, could prevent the Group from carrying out its

The Group conducts its business and investments under laws, regulations, systems, and so forth inbusiness activities as anticipated, or delay or prevent the recovery of its investments.

various fields in each country, and is affected by these both directly and indirectly. Specifically, theserange from laws, regulations, systems, and so forth pertaining to the telecommunications business(13) Intellectual Property

through to various laws, regulations, systems, and so forth pertaining to businesses such as invest-

Infringement of the Group’s SoftBank brand or Arm’s intellectual property by a third party could havement, Internet advertising, e-commerce, energy, artificial intelligence, robotics, finance and settlementa negative impact on the Group’s competitiveness, credibility, or corporate image. On the other hand,services, and other corporate business activities (including but not limited to laws, regulations,

if the Group were to unintentionally infringe on intellectual property rights held by a third party, it may

systems, and so forth related to the environment, product liability, fair competition, consumer

be prevented from using the intellectual property or subjected to claims for compensatory damages,

protection, protection of personal information and privacy, anti-bribery, labor affairs, intellectual

license fees, and so forth from the third party. Such actions could impact the Group’s results ofproperty, prevention of money laundering, taxation, foreign exchange, business and investment

operations. Corporations and persons who have acquired usage rights for Arm’s technology (licensees)

permits, and import and export activities).

could become subject to such claims, and Arm could be obliged to provide compensation to licensees

Revisions to such laws, regulations, systems, and so forth; the enforcement of new laws, regulations, systems, and so forth; or new interpretations and applications of laws, regulations, systems, andbased on license agreements.
Further, in the businesses of SoftBank Corp. and Yahoo Japan, the Group makes use of Yahoo!

so forth (including amendments thereof) could hinder the Group’s investment activities or businessbrands belonging to a subsidiary of U.S. company Verizon Communications Inc. in certain service

activities. For example, the Group may be unable to develop its investment activities or businessnames, such as Yahoo! JAPAN, Y!mobile, and Yahoo! BB. If the Group were to become unable to use

activities in accordance with expectations, new businesses or investments may be restricted, or thethese brands due to a drastic change in its relationship with the subsidiary of Verizon Communications

monetization of investments may be delayed or become impossible. In addition, incurring an increasedor other reasons, the Group may be prevented from developing businesses as anticipated.

financial burden could adversely affect the Group’s results of operations.
Further, in countries and regions in which the Group or the Group’s portfolio companies conduct(14) Information Leaks

business activities, the introduction of or changes to tax laws or regulations or changes to their

In its business operations, the Group handles customer information (including personal information)interpretations or enforcement or the incurrence of additional tax burdens due to differences of views

and other confidential information. This information could be leaked, lost, or involved in a similar

with tax authorities could adversely affect the Group’s results of operations or financial position.

incident, either intentionally or accidentally by the Group (including officers and employees of the

In addition, if the Group (including officers and employees) conducts business activities in breachGroup and people related to subcontractors), or through a malicious cyberattack by a third party orof those laws, regulations, systems, and so forth, regardless of whether the Group was aware of it orother means. Such an occurrence could damage the Group’s competitiveness, and incur significant

not, the Group may be subject to sanctions or guidance by government agencies (including deregistra-

costs to the Group for payment of damages and modification of security systems, in addition totion, revocation of licenses and fines), or may face cancellation of business agreements by businesshaving an adverse impact on the Group’s credibility or corporate image and making it difficult topartners. As a result, the Group’s credibility and corporate image may be impaired, or its businessacquire and retain customers. These outcomes could adversely affect the Group’s results of operations.

activities may be hindered. In addition, the Group may incur a financial burden, which could adversely

SoftBank Group Corp.
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081(15) Service Disruptions or Decline in Quality Due to Human Error andOther Factors(17) Measures to Protect U.S. National Security

In its provision of various services, including telecommunications services, there is a possibility that a(investees) have entered into a National Security Agreement with the relevant departments of the U.S.

major problem could occur if the Group were to become unable to continuously provide thesegovernment. Under the National Security Agreement, SBG and the investees have agreed to imple-

services, or suffered a decline in the quality of these services, due to human error, problems withment certain measures to protect U.S. national security. Implementing these measures could increase

equipment or systems, or other causes. If such disruptions or a decline in quality were to becomecosts and limit control over certain U.S. facilities, contracts, personnel, vendor selection, and businesswidespread and/or if significant time were required to restore services, the Group’s credibility or

operations. This could adversely affect the Group’s results of operations.

In relation to certain investments in the U.S., SBG and the companies receiving these investments

corporate image could deteriorate, making it difficult to acquire and retain customers. This could
adversely affect the Group’s results of operations.

(18) Litigation
The Group faces the possibility of lawsuits by third parties claiming compensatory damages for the(16) Natural Disasters, Accidents, and Other Unpredictable Events

alleged infringement of rights or benefits. These third parties may include customers, business partners,

The Group constructs and maintains telecommunications networks, information systems, and othershareholders (including shareholders of subsidiaries, associates, and investees), and employees. Suchsystems necessary for the provision of various services, including Internet and telecommunications

lawsuits could hinder the Group’s business activities or may impair the Group’s corporate image, as wellservices. Natural disasters such as earthquakes, typhoons, hurricanes, floods, tsunamis, tornadoes,

as create a financial burden that could adversely affect the Group’s results of operations.

heavy rainfall, snowfall, or volcanic activity; other unexpected disruptions such as fires or power
outages or shortages; or incidents such as terrorist attacks, cyberattacks, unauthorized access, or(19) Merger of Sprint and T-Mobile

infection by computer viruses could interfere with the normal operation of telecommunications

On April 29, 2018, Sprint and T-Mobile entered into a definitive agreement to merge in an all-stock

networks and information systems and other systems. This could hinder the provision of varioustransaction (the “Transaction” herein (19)). The Transaction is subject to Sprint and T-Mobile stock-

services by the Group.

holder approval, regulatory approvals, and other customary closing conditions. As of June 19, 2019,

If these impacts were to become widespread and/or if significant time were required to restore

not all required approvals have been obtained from the relevant regulatory authorities, including theservices, the Group’s credibility or corporate image could deteriorate, making it difficult to acquire andU.S. Department of Justice. If, due to various factors including the status of the acquisition ofretain customers. Moreover, significant costs may be incurred by the Group for recovery and repair ofregulatory approvals, the Transaction is unable to close under the conditions and schedule as planned

telecommunications networks, information systems, and other systems. This could adversely affect theby the Group, Sprint’s business development could be adversely affected. This could adversely affectGroup’s results of operations.

the Group’s results of operations and financial position.

Moreover, regarding Arm’s business, Arm’s technology is used in billions of consumer and enterpriseproducts, many of which are used to store, manage, or transmit huge amounts of personal informationand confidential information. Further increases in the complexity of Arm’s technology could increase
the likelihood of a fault or bug. A fault or bug associated with one of Arm’s products could result in thedeterioration of Arm’s credibility or corporate image and damage to Arm’s brand value.
In Japan, the head offices and business offices of various Group companies are concentrated in theTokyo metropolitan area. The possibility therefore exists that a major earthquake or other force
majeure event in the area could incapacitate these business locations, impeding the continuity of theGroup’s business.

SoftBank Group Corp.
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082

Consolidated Financial Statementsa. Consolidated Statement of Financial Position
ASSETS
Current assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets classified as held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current assets
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Costs to obtain contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments accounted for using the equity method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Thousands of
U.S. dollars)
As of March 31, 2019

Notes

As of March 31, 2018

(Millions of yen)
As of March 31, 20199
10, 2911, 2912
13¥ 3,334,650
2,314,353
519,444362,041
344,374
6,874,862–
6,874,862¥ 3,858,518
2,339,977
203,476
365,260
766,556
7,533,787
224,201
7,757,988$ 34,764,555
21,082,773
1,833,282
3,290,927
6,906,533
67,878,070
2,020,011
69,898,081

3,856,847
4,302,553
6,784,550–
2,328,617
2,827,784
2,660,115
676,392
647,514221,232
24,305,604¥31,180,466

4,070,704
4,321,467
6,892,195
384,076
2,641,045
7,115,629
924,614
1,185,856
586,943
215,959
28,338,488¥36,096,476

36,676,313
38,935,643
62,097,441
3,460,456
23,795,342
64,110,541
8,330,606
10,684,350
5,288,251
1,945,753
255,324,696$325,222,777

14

15
16
16
20
7, 19, 29
19, 2911, 2922
13

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

LIABILITIES AND EQUITYCurrent liabilities
Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits for banking business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fund and Delta Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities
Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fund and Delta Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defined benefit liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EquityEquity attributable to owners of the parent
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial Section

Corporate Information

083(Thousands of
U.S. dollars)
As of March 31, 2019

Notes

As of March 31, 2018

(Millions of yen)
As of March 31, 201923, 2924, 297, 29
25, 2929
29¥ 3,217,405
684,091
40,713
1,816,010
96,241
1,646
147,979
65,709658,961
6,728,755¥ 3,480,960
745,943
29,677
1,909,608
767,714
10,849534,906
43,685
1,158,355
8,681,697$ 31,362,825
6,720,813
267,384
17,205,226
6,916,965
97,7484,819,407
393,594
10,436,571
78,220,533

23, 29
7, 29
29
29
28
27
22
26

13,824,783
1,803,966
865,40262,372
100,486
132,139
1,085,626
303,915
18,178,689
24,907,444

12,204,146
4,107,288
130,545
57,11599,351
157,478
1,391,072
258,580
18,405,575
27,087,272

109,957,167
37,005,928
1,176,187
514,596
895,135
1,418,849
12,533,310
2,329,759
165,830,931
244,051,464

34
34
34
34
34
34

238,772
256,768
496,876
3,940,259(66,458)
317,959
5,184,176
1,088,846
6,273,022¥31,180,466

238,772
1,467,762
496,876
5,571,285(443,482)
290,268
7,621,481
1,387,723
9,009,204¥36,096,476

2,151,293
13,224,272
4,476,764
50,196,279(3,995,693)
2,615,263
68,668,178
12,503,135
81,171,313$325,222,777

27
26

18

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

084

b. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
Fiscal year ended
March 31, 2018

(Millions of yen)
Fiscal year ended
March 31, 2019

(Thousands of
U.S. dollars)
Fiscal year ended
March 31, 2019

¥ 9,158,765(5,527,577)
3,631,188(2,552,664)–(77,704)
1,000,820
302,981
1,303,801(516,132)
404,584(34,518)(630,190)(68)(160,382)
17,535
384,630
853,182¥ 1,237,812¥ 9,602,236(5,747,671)
3,854,565(2,786,674)
176,261(146,862)
1,097,290
1,256,641
2,353,931(633,769)
316,794
11,145
158,230
38,443(586,152)
32,6801,691,302(236,684)¥ 1,454,618$ 86,514,425(51,785,485)
34,728,940(25,107,434)
1,588,080(1,323,200)
9,886,386
11,322,110
21,208,496(5,710,145)
2,854,257
100,414
1,425,624
346,365(5,281,124)
294,441
15,238,328(2,132,481)$ 13,105,847¥ 1,038,977
198,835¥ 1,237,812¥ 1,411,199
43,419¥ 1,454,618$ 12,714,650
391,197$ 13,105,847

Notes

Fiscal year ended
March 31, 2018

(Yen)
Fiscal year ended
March 31, 2019

(U.S. dollars)
Fiscal year ended
March 31, 201946
46

¥933.54908.38¥1,268�15
1,256�53$11�43
11�32

Notes

Net sales � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Cost of sales � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Gross profit � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Selling, general and administrative expenses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Gain relating to loss of control over subsidiaries � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other operating loss � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Operating income (excluding income from SoftBank Vision Fund and Delta Fund)� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Operating income from SoftBank Vision Fund and Delta Fund � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Operating income � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Finance cost � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Income on equity method investments � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Foreign exchange gain (loss) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Derivative gain (loss) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Gain (loss) from financial instruments at FVTPL � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Change in third-party interests in SoftBank Vision Fund and Delta Fund � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other non-operating income � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Income before income tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Income taxes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Net income � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Net income attributable to
Owners of the parent � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Non-controlling interests � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Earnings per share
Basic earnings per share � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Diluted earnings per share � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

37
38
38
39
40
7
41
20
42
43
7
44
22

18

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

085

Consolidated Statement of Comprehensive Income
Fiscal year ended
March 31, 2018

(Millions of yen)
Fiscal year ended
March 31, 2019

(Thousands of
U.S. dollars)
Fiscal year ended
March 31, 2019¥1,237,812¥1,454,618$13,105,847

28, 4529, 45

8,795
–
8,795

(1,204)(3,664)(4,868)(10,848)(33,012)(43,860)

29, 4529, 4529, 4533, 4520, 4529,640–(9,682)
42,92020,04782,92591,720¥1,329,532

–
1,145
8,766
27,22815,40652,54547,677¥1,502,295–
10,31678,980245,319
138,806
473,421429,561$13,535,408¥1,153,128
176,404¥1,329,532¥1,440,235
62,060¥1,502,295$12,976,259
559,149$13,535,408

Notes

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity financial assets at FVTOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt financial assets at FVTOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flow hedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange differences on translating foreign operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share of other comprehensive income of associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total items that may be reclassified subsequently to profit or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other comprehensive income, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income attributable to
Owners of the parent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

086

Corporate Informationc. Consolidated Statement of Changes in Equity(Millions of yen)

For the fiscal year ended March 31, 2018

As of April 1, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Comprehensive income
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transactions with owners and other transactions
Issuance of other equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution to owners of other equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer of accumulated other comprehensive income to retained earnings . . . . . . . . . . . . . .
Purchase and disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes from business combination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in interests in subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in associates’ interests in their subsidiaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in interests in associates’ capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based payment transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total transactions with owners and other transactions . . . . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notes

34
35
34
34
8

Retainedearnings

Treasury stock–¥2,958,355¥(67,727)¥211,246

–
–
–

–
–
–

1,038,977–
1,038,977

–
–
–

–
–
–
–
–
–
(31,293)(5,133)40,820
6,668–
11,062¥256,768

496,876
–
–
–
–
–
–
–
–
–
–
496,876¥496,876–(47,933)(15,852)
7,438
(726)
–
–
–
–
–
–
(57,073)¥3,940,259

–
–
–
–
1,269
–
–
–
–
–
–
1,269
¥(66,458)

Common stock

Capital surplus¥238,772¥245,706

–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
¥238,772

Other equity
instruments

Equity attributable to owners of the parent
Accumulated othercomprehensive income
Total

¥

Non-controllinginterests

Total equity¥3,586,352¥ 883,378¥4,469,730–
114,151
114,151

1,038,977
114,151
1,153,128

198,835(22,431)
176,404

1,237,812
91,7201,329,532–––(7,438)
–
–
–
–
–
–
–
(7,438)¥317,959

496,876(47,933)(15,852)–543–(31,293)(5,133)40,8206,668–
444,696¥5,184,176–(30,889)–––
52,673(4,410)––12,131(441)
29,064¥1,088,846

496,876(78,822)(15,852)–543
52,673(35,703)(5,133)40,82018,799(441)
473,760¥6,273,022(Millions of yen)

For the fiscal year ended March 31, 2019

As of April 1, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of retrospective adjustments due to adoption of new standards* . . . . . . . . . . . . .
As of April 1, 2018 (after adjustments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Comprehensive income
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transactions with owners and other transactions
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution to owners of other equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer of accumulated other comprehensive income to retained earnings . . . . . . . . . . . . . .
Purchase and disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes from business combination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in interests in subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in associates’ interests in their subsidiaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in interests in associates’ capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based payment transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total transactions with owners and other transactions . . . . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notes

35
34
34

Equity attributable to owners of the parent
Accumulated othercomprehensive income
Total

Common stock

Capital surplus

Other equity
instruments

Retainedearnings

Treasury stock

Non-controllinginterests¥238,772–
238,772¥ 256,768–
256,768¥496,876–
496,876¥3,940,259
300,615
4,240,874¥ (66,458)–(66,458)¥317,959(57,828)
260,131

Total equity¥5,184,176
242,787
5,426,963¥1,088,846
21,3001,110,146¥6,273,022
264,087
6,537,109

–
–
–

–
–
–

–
–
–

1,411,199–
1,411,199––––
29,03629,036

1,411,199
29,036
1,440,235

43,41918,64162,0601,454,618
47,677
1,502,295

–
–
–
–
–
–
–
–
–
–
–
¥238,772

–
–
–
739
–
1,164,459
41,579(1,832)
6,049–
1,210,994¥1,467,762

–
–
–
–
–
–
–
–
–
–
–
¥496,876(47,951)(31,736)(1,101)
–
–
–
–
–
–
–
(80,788)¥5,571,285–––(377,024)
–
–
–
–
–
–
(377,024)¥(443,482)

–
–
1,101
–
–
–
–
–
–
–
1,101
¥290,268(47,951)(31,736)–(376,285)–
1,164,459
41,579(1,832)
6,049–
754,283¥7,621,481(30,907)
–
–
–
6,115
236,191
–
–
2,414
1,704
215,517¥1,387,723(78,858)(31,736)–(376,285)
6,115
1,400,650
41,579(1,832)8,463
1,704
969,800¥9,009,204

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

087

Corporate Information(Thousands of U.S. dollars)

For the fiscal year ended March 31, 2019

Notes

As of April 1, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Common stock

Capital surplus

Other equity
instruments

Retainedearnings

Treasury stock$ 2,151,293$ 2,313,433$4,476,764$35,501,027$ (598,775)

Equity attributable to owners of the parent
Accumulated othercomprehensive income
Total$2,864,754$46,708,496

Non-controllinginterests

Total equity$ 9,810,307$56,518,803

Effect of retrospective adjustments due to adoption of new standards* . . . . . . . . . . . . .

–

–

–

2,708,487–(521,020)

2,187,467

191,9092,379,376

As of April 1, 2018 (after adjustments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,151,293

2,313,433

4,476,764

38,209,514(598,775)

2,343,734

48,895,963

10,002,216

58,898,179
13,105,847

Comprehensive income
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–

–

–

12,714,650––

12,714,650

391,197

Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–

–

–

–

–

261,609261,609

167,952

429,561

Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–

–

–

12,714,650–

261,609

12,976,259

559,149

13,535,408

Transactions with owners and other transactions
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

35

–

–

–

(432,029)––(432,029)(278,467)(710,496)

Distribution to owners of other equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34

–

–

–

(285,936)––(285,936)–(285,936)–––(9,920)

–

9,920

–

–

–

34

–

6,659

–

–

(3,396,918)–(3,390,259)–(3,390,259)

Transfer of accumulated other comprehensive income to retained earnings . . . . . . . . . . . . . .
Purchase and disposal of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes from business combination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–

–

–

–

–

–

–

55,09555,095

Changes in interests in subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–10,491,567

–

–

–

–

10,491,567

2,128,039

12,619,606

Changes in associates’ interests in their subsidiaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–374,619

–

–

–

–

374,619–374,619

Changes in interests in associates’ capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–(16,506)

–

–

–

–

(16,506)–(16,506)

Share-based payment transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–54,500––––54,50021,75076,250

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–

–

–

–

–

–

–

15,353

15,353

Total transactions with owners and other transactions . . . . . . . . . . . . . . . . . . . . . . . . . . .

–10,910,839–(727,885)(3,396,918)

9,920

6,795,956

1,941,770

8,737,726

As of March 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2,151,293$13,224,272$4,476,764$50,196,279$(3,995,693)$2,615,263$68,668,178$12,503,135$81,171,313

Note:* In accordance with the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers,” cumulative effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings and accumulated other comprehensive income. The
details are described in “Note 4. Changes in Accounting Policies.”

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

088

d. Consolidated Statement of Cash Flows

Notes

Cash flows from operating activities
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain relating to loss of control over subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on investments at SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income on equity method investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss (gain) from financial instruments at FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in third-party interests in SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange loss (gain) and other non-operating (income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in trade and other receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7, 47

47
47

Fiscal year ended
March 31, 2018

(Millions of yen)
Fiscal year ended
March 31, 2019

(Thousands of
U.S. dollars)
Fiscal year ended
March 31, 2019

¥ 1,237,812
1,585,873–(352,095)
516,132(404,584)
630,19068
160,382
16,983(853,182)(170,067)(521,000)
173,038(30,375)
1,989,175
31,987(541,011)(487,428)
95,9001,088,623¥ 1,454,618
1,694,187(176,261)(1,302,838)
633,769(316,794)(158,230)(38,443)
586,152(43,825)
236,684(189,651)(470,686)
108,223
44,6602,061,565
49,966(608,146)(434,360)
102,839
1,171,864$ 13,105,847
15,264,321(1,588,080)(11,738,337)
5,710,145(2,854,257)(1,425,624)(346,365)
5,281,124(394,855)
2,132,481(1,708,722)(4,240,796)
975,070
402,379
18,574,331
450,185(5,479,286)(3,913,506)
926,561
10,558,285

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Notes

Cash flows from investing activities
Purchase of property, plant and equipment, and intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for acquisition of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales/redemption of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of investments by SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds (payments) from (for) acquisition of control over subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from loss of control over subsidiaries, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for acquisition of marketable securities for short-term trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales/redemption of marketable securities for short-term trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments for loan receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collection of loan receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments into time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from withdrawal of time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayment of interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions into SoftBank Vision Fund and Delta Fund from third-party investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution/repayment from SoftBank Vision Fund and Delta Fund to third-party investors . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from the partial sales of shares of subsidiaries to non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of shares of subsidiaries from non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of other equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution to owners of other equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at the beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47

8

23
23, 47
23
7
7, 47
47
34
34

18

Financial Section

Corporate Information

089

Fiscal year ended
March 31, 2018

(Millions of yen)
Fiscal year ended
March 31, 2019

(Thousands of
U.S. dollars)
Fiscal year ended
March 31, 2019

(1,064,835)(1,735,694)
53,786(2,263,260)–
61,965–(208,244)
399,963(138,765)
93,440(297,483)
467,708
146,597(4,484,822)(1,364,954)(822,628)
292,582(1,576,790)
428,865(65,134)
91,016(298,620)
344,031(302,531)
47,895(454,544)
752,808
19,988(2,908,016)(12,297,991)(7,411,731)
2,636,111(14,206,595)
3,863,997(586,846)
820,038(2,690,513)
3,099,658(2,725,750)
431,525(4,095,360)
6,782,665
180,089(26,200,703)(40,829)8,547,346(6,003,188)
1,967,191(187,061)–(52,393)496,876(15,852)(41)(47,918)(30,285)(7,425)
4,626,421(78,674)
1,151,548
2,183,102¥ 3,334,650(65,411)6,189,112(7,128,379)
2,133,682(486,388)
2,350,262(229,818)–(31,736)(384,102)(47,918)(30,901)(66,112)2,202,291
57,729523,868
3,334,650¥ 3,858,518(589,341)
55,762,789(64,225,417)
19,224,092(4,382,269)
21,175,439(2,070,619)–(285,936)(3,460,690)(431,733)(278,412)(595,656)
19,842,247
520,128
4,719,957
30,044,598$ 34,764,555

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

090

Notes to Consolidated Financial Statements
1. Reporting entity
SoftBank Group Corp. is a corporation domiciled in Japan. The registered address of SoftBank Group Corp.’shead office is disclosed on our website (https://group.softbank/en/). These consolidated financial statements
are composed of SoftBank Group Corp. and its subsidiaries (the “Company”). The Company engages invarious businesses in the information industry, with its core business lying in the SoftBank segment, the Sprint
segment, the Yahoo Japan segment, the Arm segment, the SoftBank Vision Fund and Delta Fund segment,
and the Brightstar segment. The details are described in “(1) Description of reportable segments” under“Note 6. Segment information.”

2. Basis of preparation of consolidated financial statements(1) Compliance with IFRSs
The consolidated financial statements of the Company have been prepared in accordance with International
Financial Reporting Standards (“IFRSs”).

(2) Basis of measurement
These consolidated financial statements have been prepared on the historical cost basis, except for certain
items, such as financial instruments, that are measured at fair value as described in “Note 3. Significant
accounting policies.”(3) Presentation currency and unit of currency
These consolidated financial statements have been presented in Japanese yen, which is the currency of the
primary economic environment of SoftBank Group Corp. (“functional currency”), and yen amounts arerounded to the nearest million.
The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenienceof readers outside of Japan and have been made at a rate of ¥110.99 to $1, the approximate rate ofexchange at March 31, 2019. Such translations should not be construed as representations that the Japanese
yen amounts could be converted into U.S. dollars at that or any other rate.

(4) Changes in presentation(Consolidated statement of financial position)a. Amounts presented under “Derivative financial liabilities” were previously included in “Other financial
liabilities” as current liabilities as of March 31, 2018 are separately presented as of March 31, 2019
since the amount increased and became significant. In order to reflect the change, ¥96,241 million,
which was previously included in “Other financial liabilities” as current liabilities in the consolidated
statement of financial position as of March 31, 2018 was reclassified as “Derivative financial liabilities.”(Consolidated statement of income)a. Amounts presented under “Other operating loss” for the fiscal year ended March 31, 2019 include“Gain from remeasurement relating to business combination” which was separately presented for the
fiscal year ended March 31, 2018 since the amount decreased and became not significant. In order toreflect the change, ¥372 million, which was previously separately presented as “Gain from remeasurement relating to business combination” in the consolidated statement of income for the fiscal year
ended March 31, 2018, is now included in “Other operating loss.”b. Amounts presented under “Other non-operating income” for the fiscal year ended March 31, 2019
include “Gain on sales of shares of associates” which was separately presented for the fiscal year
ended March 31, 2018 since the amount decreased and became not significant. In order to reflect thechange, ¥1,804 million, which was previously separately presented as “Gain on sales of shares ofassociates” in the consolidated statement of income for the fiscal year ended March 31, 2018, is now
included in “Other non-operating income.”(Consolidated statement of cash flows)a. Amounts presented under “Other” for the fiscal year ended March 31, 2019 include “Gain fromremeasurement relating to business combination” which was separately presented in cash flows fromoperating activities for the fiscal year ended March 31, 2018 since the amount decreased and became
not significant. In order to reflect the change, ¥(372) million, which was previously separately presented as “Gain from remeasurement relating to business combination” in cash flows from operating
activities in the consolidated statement of cash flows for the fiscal year ended March 31, 2018, is now
included in “Other” in cash flows from operating activities.
b. Amounts presented under “Foreign exchange loss (gain) and other non-operating (income)” for the
fiscal year ended March 31, 2019 include “Gain on sales of shares of associates” which was separately
presented in cash flows from operating activities for the fiscal year ended March 31, 2018 since theamount decreased and became not significant. In order to reflect the change, ¥(1,804) million, which
was previously separately presented as “Gain on sales of shares of associates” in cash flows fromoperating activities in the consolidated statement of cash flows for the fiscal year ended March 31,
2018, is now included in “Foreign exchange loss (gain) and other non-operating (income)” in cash
flows from operating activities.
c. Amounts presented under “Payments for loan receivables” were previously included in “Other” in cash
flows from investing activities for the fiscal year ended March 31, 2018 are separately presented for the
fiscal year ended March 31, 2019 since the amount increased and became significant. In order to reflect
the change, ¥(138,765) million, which was previously included in “Other” in cash flows from investing
activities for the fiscal year ended March 31, 2018 was reclassified as “Payments for loan receivables.”SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

d. Amounts presented under “Collection of loan receivables” were previously included in “Other” in cash
flows from investing activities for the fiscal year ended March 31, 2018 are separately presented for the
fiscal year ended March 31, 2019 since the amount increased and became significant. In order to reflect
the change, ¥93,440 million, which was previously included in “Other” in cash flows from investing
activities for the fiscal year ended March 31, 2018 was reclassified as “Collection of loan receivables.”Management Organization

Financial Section

Corporate Information

091

e. Amounts presented under “Purchase of shares of subsidiaries from non-controlling interests” werepreviously included in “Other” in cash flows from financing activities for the fiscal year ended March
31, 2018 are separately presented for the fiscal year ended March 31, 2019 since the amountincreased and became significant. In order to reflect the change, ¥(52,393) million, which waspreviously included in “Other” in cash flows from financing activities for the fiscal year ended March
31, 2018 was reclassified as “Purchase of shares of subsidiaries from non-controlling interests.”(5) New standards and interpretations not yet adopted by the Company
New standards and interpretations which are newly established or amended before the approval date of the consolidated financial statements, not yet adopted by the Company, and which may have potential impacts are as
follows.
Standard / interpretation

IFRS 16

LeasesMandatory adoption

To be adopted by the Company

Outline of the new / revised standards

January 1, 2019

From the fiscal year ending
March 31, 2020

IFRS 16 replaces the previous IAS 17 and IFRIC 4. Main revisions are:• to apply a control model to the identification of leases and distinguishing between leases andservice contracts; and• to eliminate lease classification and recognize assets and liabilities for all leases by the lessee.

a. IFRS 16 “Leases”
The Company will adopt IFRS 16, “Leases,” from beginning of the fiscal year ending March 31, 2020.
In accordance with the transitional provisions of IFRS 16, the Company will apply this standard
retrospectively to leases as of the date of initial application (April 1, 2019) and recognize thecumulative effect of applying the standard as an adjustment to the opening retained earnings at thedate of initial application. Accordingly, comparative information for the fiscal year ended March 31,
2019, except for the following leases related to intangible assets, will not be restated.
The Company will not apply IFRS 16 for leases related to intangible assets and, in accordance with
IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors,” comparative information ofleases related to intangible assets for the fiscal year ended March 31, 2019 will be restated.
The main impact on the Company’s results of operations and financial positions due to theadoption of IFRS 16 is as follows:
Existing lease classification of finance leases and operating leases by the lessee will be eliminatedand the Company will recognize rights to use assets over the relevant lease terms as the rights-of-use
asset and lease payment obligations as lease liabilities in the consolidated statement of financial
position. Additionally, interest costs arising from lease liabilities and depreciation arising from therights-of-use asset will be recognized in the consolidated statement of income.
Contracts previously classified as operating leases will be recognized in the consolidated
statement of financial position, and as a result, principal, lease payments excluding interest costs will
be presented under cash flows from financing activities, instead of under cash flows from operating
activities. In addition, the rights-of use assets related to the contracts previously classified as operatingleases will be depreciated and the cost will be included in depreciation and amortization under cash
flows from operating activities.

As of the date of initial application (April 1, 2019), asset and liability are expected to increase by
the minimum amount of approximately ¥1.2 trillion ($10,811,785 thousand), respectively. In addition,
the impact on the opening balance of retained earnings is expected to be immaterial.

(6) Definition of company names and abbreviations used in annual report 2019 including this note
“Co. Ltd.,” “Corporation,” etc., are omitted from the names of companies and organizations in principle.
Company names or abbreviations, except as otherwise stated or interpreted differently in the context, areas follows:
Company names / Abbreviations

Definition

SoftBank Group Corp. or SBG
The Company
The Group

SoftBank Group Corp. (stand-alone basis)
SoftBank Group Corp. and its subsidiaries
SoftBank Group Corp. and its subsidiaries and associates* Each of the following abbreviations indicates the respective company and its subsidiaries, if any.

SprintArm
SoftBank Vision Fund, Vision Fundor SVF
Delta Fund
SBIA
Brightstar
Fortress
T-Mobile
AlibabaSupercell
GungHoSprint Corporation
Arm Limited
SoftBank Vision Fund L.P. and its alternative investment vehicles
SB Delta Fund (Jersey) L.P.
SB Investment Advisers (UK) Limited
Brightstar Global Group Inc.
Fortress Investment Group LLC
T-Mobile US, Inc.
Alibaba Group Holding Limited
Supercell Oy
GungHo Online Entertainment, Inc.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

3. Significant accounting policies
Accounting policies the Company has adopted have been applied consistently to all periods presented inthese consolidated financial statements. The Company has adopted IFRS 9 and IFRS 15 during the thee-month
period ended June 30, 2018. The Company has elected not to restate comparative information in accordancewith the transition requirements of IFRS 9 and IFRS 15. Therefore, the comparative information complies withthe previous accounting policies.
Please refer to “(21) Significant accounting policies for the SoftBank Vision Fund and Delta Fund
segment” for details of SoftBank Vision Fund and Delta Fund.

(1) Basis of consolidationa. Subsidiaries
A subsidiary is an entity that is controlled by SoftBank Group Corp.
The Company controls an entity when the Company is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power overthe entity. Please refer to “a. Consolidation of the SoftBank Vision Fund and Delta Fund business by
the Company” under “(21) Significant accounting policies for the SoftBank Vision Fund and Delta
Fund segment” for details of SoftBank Vision Fund and Delta Fund.
The subsidiaries’ financial statements are consolidated from the date when control is acquired(“acquisition date”) until the date when the control is lost.
When necessary, adjustments are made to the financial statements of subsidiaries to bring theiraccounting policies in line with those used by the Company.
Non-controlling interests consist of those interests at the acquisition date and any adjustments for
subsequent changes in those interests.
Total comprehensive income of subsidiaries is generally attributed to the owners of the parent andto the non-controlling interests, even if this results in the non-controlling interests having a deficit
balance.
All intragroup balances and transactions and unrealized gain or loss arising from intragrouptransactions are eliminated on consolidation.
Changes in the Company’s ownership interests in subsidiaries that do not result in the Company
losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of
the Company’s interests and the non-controlling interests are adjusted to reflect the changes in theirinterests in the subsidiaries.
Any difference between the amount by which the non-controlling interests are adjusted and thefair value of the consideration paid or received is recognized directly in equity and attributed to ownersof the parent.

Management Organization

Financial Section

Corporate Information

092

When SoftBank Group Corp. loses control of a subsidiary, a gain or loss is calculated as thedifference between:• the aggregate of the fair value of the consideration received and the fair value of any retainedinterest; and• the net carrying amount of the assets (including goodwill), liabilities, and non-controlling interestsof the subsidiary when control is lost.
Any amounts previously recognized in accumulated other comprehensive income in relation to theformer subsidiaries are reclassified to profit or loss.
b. Associates and joint ventures
An associate is an entity over which SoftBank Group Corp. has significant influence in the financial andoperating policy decisions, but does not have control or joint control.
A joint venture is an investment which parties including SoftBank Group Corp. have joint control
based on the contractual arrangement that requires unanimous consent related to significant decisionsof the business activities and have rights to the net assets of the arrangement.
Investments in associates and joint ventures are accounted for using the equity method or
accounted for using FVTPL.
(a) Investments accounted for using the equity method
Investments in associates and joint ventures are accounted for using the equity method and are initiallyrecognized at cost. The investment is adjusted thereafter to recognize the Company’s interest in the
profit or loss and other comprehensive income from the date of acquisition to the date of loss ofsignificant influence.
When the losses of an associate and a joint venture exceed the Company’s interest in the associate
and the joint venture, long-term interests that, in substance, form a part of the net investment in thecompany are decreased to zero, and no additional loss is recognized except when the Company incurs
legal or constructive obligations to or makes payments on behalf of the associate and the joint
venture.
Unrealized gains or losses on intercompany transactions with associates and joint ventures areadded to or deducted from the carrying amount of the investments only to the extent of theCompany’s interests in the associates and the joint ventures.
Any excess in the cost of acquisition of an associate and a joint venture over the Company’s
interest of the net fair value of the identifiable assets and liabilities recognized at the date of acquisition is recognized as goodwill and included within the carrying amount of the investments in associates
and joint ventures.
Because goodwill is not separately recognized, it is not tested for impairment separately. Instead,the entire carrying amount of the investments in associates and joint ventures, including goodwill, istested for impairment as a single asset whenever objective evidence indicates that the investment may
be impaired.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

The Company applies the equity method to the financial statements of Alibaba, an associate of theCompany, on a three-month time lag, as it is impractical to conform the reporting period of Alibaba
due to the contract with Alibaba. Adjustments are made for significant transactions or events that
occurred during the intervening period and which were publicly announced by Alibaba.
(b) Investments accounted for using FVTPL
Among the investments in associates, investments directly made by SoftBank Vision Fund and Delta
Fund, investments made by SoftBank Group Corp. or its subsidiaries based on the premise oftransferring to SoftBank Vision Fund and Delta Fund, and preferred stock investments whose feature issubstantively different from common stock, are not accounted for using the equity method. These
investments are classified as financial assets measured at fair value through profit or loss (“financial
assets at FVTPL”). For the Company’s accounting policy for the financial assets at FVTPL, please refer to“(4) Financial instruments.” Also, please refer to “b. Portfolio company investments made by SoftBank
Vision Fund and Delta Fund – (b) Investments in associates and joint ventures” under “(21) Significant
accounting policies for the SoftBank Vision Fund and Delta Fund segment” for details of SoftBank
Vision Fund and Delta Fund.

(2) Business combinations
Business combinations are accounted for using the acquisition method at the acquisition date.
The consideration transferred in a business combination is measured as the sum of the assets transferredby the Company, liabilities assumed by the Company from the former owners of the acquiree, and the fairvalue at the acquisition date of the equity interests issued by the Company. Acquisition-related costs arerecognized in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at theirfair value, except that:• deferred tax assets or liabilities and assets or liabilities related to employee benefits are recognized andmeasured in accordance with IAS 12 “Income Taxes” and IAS 19 “Employee Benefits,” respectively;• liabilities or equity instruments related to share-based payment arrangements of the acquiree orshare-based payment arrangements of the Company entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with IFRS 2 “Share-based Payment” at theacquisition date; and• assets or disposal groups that are classified as held-for-sale are measured in accordance with IFRS 5“Non-current Assets Held-for-Sale and Discontinued Operations.”
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree
over the fair value of the identifiable net assets acquired at the acquisition date is recorded as goodwill. If theconsideration transferred and the amount of any non-controlling interest in the acquiree is less than the fairvalue of the identifiable net assets of the acquired subsidiary, the difference is recognized immediately in
profit or loss.

Management Organization

Financial Section

Corporate Information

093

On an acquisition-by-acquisition basis, the Company chooses a measurement basis of non-controllinginterests at either fair value or by the proportionate share of the non-controlling interests in the recognizedamounts of the acquiree’s identifiable net assets. When a business combination is achieved in stages, theCompany’s previously held interest in the acquiree is remeasured at fair value at the acquisition date and theresulting gain or loss, if any, is recognized in profit or loss.
Amounts arising from changes in the value of interests in the acquiree prior to the acquisition date thathave previously been recognized in other comprehensive income are recognized using the same accounting
treatment as the Company disposes the interests.
If the initial accounting for a business combination is incomplete by the end of the fiscal year, theCompany reports in its consolidated financial statements provisional amounts for the items for which theaccounting is incomplete. The Company retrospectively adjusts the provisional amounts recognized at theacquisition date as an adjustment during the measurement period when new information about facts andcircumstances that existed as of the acquisition date and, if known, would have affected the recognizedamounts for the business combination. The measurement period shall not exceed one year from theacquisition date.
Goodwill arising in business combinations that occurred before the date of transition to IFRSs is carriedover at the carrying amount under the previous accounting principles (Japanese Generally Accepted
Accounting Principles, “JGAAP”) as of the date of transition to IFRSs, and recorded by that amount after an
impairment test.

(3) Foreign currency translationa. Transactions denominated in foreign currencies
The financial statements of each group company are prepared in their functional currency. Transactions
in currencies other than the entity’s functional currency (foreign currencies) are translated at the rates
of exchange prevailing at the dates of the transactions.
Monetary items denominated in foreign currencies are translated into the functional currency at
the rates prevailing at the end of the fiscal year. Non-monetary items carried at fair value that are
denominated in foreign currencies are translated into the functional currency at the rates prevailing at
the date when the fair value was measured.
Exchange differences arising from translation are recognized in profit or loss, except for exchange
differences arising from non-monetary financial assets measured through other comprehensive income
and cash flow hedges are recognized in other comprehensive income.
b. Foreign operations
For the purposes of presenting consolidated financial statements, the assets and liabilities of theCompany’s foreign operations (including goodwill arising from acquisitions and the adjustments of fairvalue) are translated into Japanese yen using exchange rates prevailing at the end of the fiscal year.
Income, expenses and cash flows are translated into Japanese yen by using the average exchange

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rates for each quarter. When the translated amounts do not approximate the amounts translated by
the exchange rates at the dates of the transactions, the exchange rates at the transaction dates areused for the translation.
The exchange rates used in the translation are described in “Note 33. Foreign currency exchange
rates.”
Exchange differences arising from translating the financial statements of foreign operations arerecognized in other comprehensive income and cumulative differences are included in accumulated
other comprehensive income.
These cumulative differences are reclassified from equity to profit or loss when the Company loses
control or significant influence over the foreign operation.

(4) Financial instruments
The Company has adopted IFRS 9 from the three-month period ended June 30, 2018. The Company has
elected not to restate comparative information in accordance with the transition requirements of IFRS 9.
Therefore, the comparative information complies with IAS 39. Accounting policies applied for the fiscal year
ended March 31, 2019 are as follows:a. Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to thecontractual provisions of the instrument.
Financial assets and financial liabilities are measured at fair value at the time of initial recognition.
Transaction costs that are directly attributable to the acquisition of financial assets and issuance offinancial liabilities other than financial assets measured at fair value through profit or loss (“financial
assets at FVTPL”) and financial liabilities at fair value through profit or loss (“financial liabilities at FVTPL”)
are added to the fair value of the financial assets or deducted from the fair value of financial liabilities at
the time of initial recognition. Transaction costs that are directly attributable to the acquisition or issuanceof the financial assets at FVTPL or financial liabilities at FVTPL are recognized in profit or loss.
b. Non-derivative financial assets
Non-derivative financial assets are classified as “financial assets at amortized cost,” “debt financial
assets at fair value through other comprehensive income (“debt financial assets at FVTOCI”),” “equity
financial assets at fair value through other comprehensive income (“equity financial assets at
FVTOCI”),” and “financial assets at FVTPL.” The classification depends on the nature and purpose of
the financial assets and is determined upon initial recognition.
All purchases and sales of financial assets made in a regular way are recognized and derecognizedon a trade date basis. Purchases and sales made in a regular way refer to acquiring or disposing
financial assets under a contract that requires the delivery of assets within a timeframe established byregulation or convention in the marketplace.

Management Organization

Financial Section

Corporate Information

094(a) Financial assets measured at amortized cost
Financial assets are classified as “financial assets at amortized cost” if both of the following conditions
are met:• the financial assets are held within a business model for which the objective is to hold financial
assets to collect contractual cash flows; and• the contractual terms of the financial assets give rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, financial assets at amortized cost are measured at amortized costusing the effective interest method, less any impairment. Interest income based on the effective
interest rate is recognized in profit or loss.
(b) Debt financial assets at FVTOCI
Financial assets are classified as “debt financial assets at FVTOCI” if both of the following conditions
are met:• the financial assets are held within a business model for which the objective is achieved by bothcollecting contractual cash flows and selling financial assets; and• the contractual terms of the financial assets give rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, debt financial assets at FVTOCI are measured at fair value, andgains or losses arising from changes in fair value are recognized in other comprehensive income. Any
cumulative amounts recognized in other comprehensive income are reclassified to profit or loss uponderecognition. Foreign exchange gains and losses arising on monetary financial assets classified as debt
financial assets at FVTOCI and interest income calculated using the effective interest method relating to
debt financial assets at FVTOCI are recognized in profit or loss.
(c) Equity financial assets at FVTOCI
At initial recognition, the Company has made an irrevocable election for equity financial assets thatwould otherwise be measured at fair value through profit or loss to present subsequent changes in fairvalue in other comprehensive income and classifies such investments as “equity financial assets at
FVTOCI.” Subsequent to initial recognition, equity financial assets at FVTOCI are measured at fair value,and gains or losses arising from changes in fair value are recognized in other comprehensive income.
When financial assets are derecognized or there is a significant or prolonged decline in fair value
below the cost, cumulative gains and losses recognized in other comprehensive income are directlytransferred to retained earnings. Dividends received on equity financial assets at FVTOCI are recognizedin profit or loss.

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Financial assets are classified as “financial assets at FVTPL,” if they are classified as neither “financial
assets at amortized cost,” “debt financial assets at FVTOCI,” nor “equity financial assets at FVTOCI.”
Please refer to “(21) Significant accounting policies for the SoftBank Vision Fund and Delta Fund
segment” for the details of “Investments from SoftBank Vision Fund and Delta Fund accounted forusing FVTPL” in the consolidated statement of financial position. Neither financial assets are designated as measured at fair value through profit or loss to eliminate or significantly reduce an accounting
mismatch.
Subsequent to initial recognition, financial assets at FVTPL are measured at fair value and gains orlosses arising from changes in fair value, dividend income and interest income are recognized in profit
or loss.
(e) Impairment of financial assets
A loss allowance is recognized for expected credit losses on financial assets at amortized cost, debt
financial assets at FVTOCI, and contract assets under IFRS 15 “Revenue from Contracts with
Customers.” At each fiscal period-end, the Company assesses whether the credit risk on financial
assets has increased significantly since initial recognition. If the credit risk on financial assets has notincreased significantly since initial recognition, the Company measures the loss allowance for financial
assets at an amount equal to the 12-month expected credit losses. If the credit risk on financial assets
has increased significantly since initial recognition or for credit impaired financial assets, the Company
measures the allowance account for the financial assets at an amount equal to the lifetime expectedcredit losses. However, the Company always measures the loss allowance at an amount equal to thelifetime expected credit losses for trade receivables and contract assets.
Expected credit losses are estimated in a way that reflects the following:• an unbiased and probability-weighted amount that is determined by evaluating a range ofpossible outcomes;• the time value of money; and• reasonable and supportable information that is available without undue cost or effort at thereporting date about past events, current conditions, and forecasts of future economic conditions.
Provision of the loss allowance relating to the measurement is recognized in profit or loss. Reversalof the loss allowance is also recognized in profit or loss when events that reduce the loss allowanceoccur in subsequent periods.
The carrying amount of financial assets is directly reduced against the loss allowance when the
Company has no reasonable expectations of recovering financial assets in their entirety, or a portion
thereof.
(f) Derecognition of financial assets
The Company derecognizes a financial asset when, and only when the contractual rights to the cash
flows from the financial asset expire or when it transfers the financial asset and substantially all therisks and rewards of ownership of the financial asset.

Management Organization

Financial Section

Corporate Information095

c. Non-derivative financial liabilities
Non-derivative financial liabilities are classified into “financial liabilities at FVTPL” or “financial liabilities
measured at amortized cost,” and the classification is determined at initial recognition.
Non-derivative financial liabilities are classified into “financial liabilities at FVTPL” when the entire
hybrid contract, including more than one embedded derivative, is designated and accounted for as afinancial liability at FVTPL. Subsequent to initial recognition, liabilities at FVTPL are measured at fairvalue and gains or losses arising from changes in fair value and interest costs are recognized in profit or
loss.
Financial liabilities measured at amortized cost are measured using the effective interest method,
subsequent to initial recognition.
The Company derecognizes financial liabilities when the Company’s obligations are met, or debt isdischarged or cancelled or expires.
d. Derivatives and hedge accounting(a) Derivatives
The Company is engaged in derivative transactions, including foreign currency forward contracts,
currency swaps, and collar transactions in order to manage its exposure to foreign exchange rate,interest rate, and share price risks.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into
and are subsequently measured at their fair values at the end of fiscal year. Changes in the fair value ofderivatives are recognized in profit or loss immediately unless the derivative is designated and effective
as a hedging instrument. Derivative financial assets not designated as hedging instruments areclassified into “financial assets at FVTPL,” and derivative financial liabilities not designated as hedging
instruments are classified into “financial liabilities at FVTPL.”(b) Hedge accounting
The Company designates certain derivative transactions as hedging instruments and accounts for themas cash flow hedges.
At the inception of the hedge, the Company formally designates and documents the hedge
relationship qualifying for hedge accounting, along with its risk management objectives and its
strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoingbasis, the Company evaluates whether the hedging instrument is highly effective in offsetting changes
in fair values or cash flows of the relevant hedged item during the underlying period. Specifically, ahedge is determined to be effective when all of the following criteria are met:(i) there is an economic relationship between the hedged item and the hedging instrument;(ii) the effect of credit risk does not dominate the value changes that result from that economic
relationship; and(iii) the hedge ratio of the hedging relationship is the same as that resulting from the quantity of thehedged item the Company actually hedges and the quantity of the hedging instrument the Company
actually uses to hedge the quantity of the hedged item.

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If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge
ratio but the risk management objective remains the same, the Company adjusts the hedge ratio sothat the hedging relationship becomes effective again.
The effective portion of changes in the fair value of derivatives that are designated and qualifying
as cash flow hedges is recognized in other comprehensive income and accumulated in equity.
Accumulated other comprehensive income is transferred to profit or loss through a line item relating to
the hedged item in the consolidated statement of income in the periods when the cash flows from thehedged item affect profit or loss. Any ineffective portion of changes in fair value of derivatives isrecognized immediately in profit or loss.
When the hedged forecasted transaction subsequently results in the recognition of non-financial
assets or non-financial liabilities, the Company transfers the accumulated other comprehensive income
previously recognized in other comprehensive income and includes them in the measurement of initialcost of the non-financial assets or non-financial liabilities (basis adjustment).
The Company discontinues hedge accounting prospectively only when the hedging relationshipceases to meet the qualifying criteria, such as instances when the hedging instrument expires or issold, terminated, or exercised.
When hedge accounting is discontinued, any related income included in accumulated othercomprehensive income remains in equity and is reclassified to profit or loss when the forecasted
transaction is ultimately recognized in profit or loss. When a forecasted transaction is no longer
expected to occur, any related income included in accumulated other comprehensive income isreclassified immediately to profit or loss.
(c) Embedded derivatives
Derivatives embedded in non-derivative financial assets host contracts (“embedded derivatives”) arenot separated from the host contracts and accounted for as hybrid contracts in its entirety.
When the economic characteristics and risks of the derivatives embedded in non-derivative
financial liabilities host contracts (“embedded derivatives”) are not closely related to the economic
characteristics and risks of the host contracts and the whole financial instruments, including theembedded derivatives, are not classified as financial liabilities at FVTPL, the embedded derivatives are
separated from the host contracts and accounted for separately as derivatives. If it is required toseparate embedded derivatives from their host contracts, but the Company is unable to measure theembedded derivatives separately either at acquisition or at the end of a subsequent fiscal period, theCompany designates and accounts for the entire hybrid contract as financial liabilities at FVTPL.
e. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are offset, and the net amounts are presented in the consolidated statement of financial position when, and only when, the Company currently has a legally
enforceable right to set off the recognized amounts, and intends either to settle on a net basis or to
realize the assets and settle the liabilities simultaneously.

Management Organization

Financial Section

Corporate Information

096(5) Cash and cash equivalents
Cash and cash equivalents consist of cash, demand deposits and short-term investments with maturities ofthree months or less that are readily convertible to cash and subject to insignificant risk of change in value.

(6) Inventories
Inventories are stated at the lower of cost or net realizable value. Inventories mainly consist of mobile
handsets and accessories. Their costs comprise all costs of purchase and other costs incurred in bringing theinventories to their present location and condition. The costs are mainly calculated by the moving-averagemethod.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs
necessary to make the sale.

(7) Property, plant and equipment
Property, plant and equipment are measured on a historical cost basis, less accumulated depreciation andaccumulated impairment losses. Historical cost includes costs directly attributable to the acquisition of theasset and the initial estimated costs related to disassembly, retirement and site restoration.
Property, plant and equipment are depreciated mainly using the straight-line method over the estimateduseful lives of each component. The depreciable amount is calculated as the cost of an asset, less its residual
value. Land and construction in progress are not depreciated.
The estimated useful lives of major components of property, plant and equipment are as follows:
Buildings and structures
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 – 50 years
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 – 15 years
Telecommunications equipment
Wireless equipment, switching equipment and other network equipment . . . . 5 – 30 years
Towers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 – 42 years
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 – 40 years
Furniture, fixtures and equipment
Leased mobile devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 – 3 years
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 – 10 years
The depreciation methods, useful lives, and residual values of assets are reviewed at the end of each fiscal
year, and any changes are applied prospectively as a change in accounting estimate.
Assets held under finance leases are depreciated over their estimated useful lives when there is certainty
that ownership will be obtained by the end of the lease term. However, when there is no certainty thatownership will be obtained by the end of the lease term, assets are depreciated over the shorter of the leaseterm or their estimated useful lives.

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Growth Strategy(8) Goodwill
Please refer to “(2) Business combinations” for the measurement of goodwill at initial recognition. Goodwill ismeasured at cost less accumulated impairment losses.
Goodwill is not amortized, and is tested for impairment when there is an indication of impairment incash-generating units or groups of cash-generating units to which goodwill has been allocated, and annually,
regardless of any indication of impairment. Impairment is described in “(11) Impairment of property, plant andequipment, intangible assets and goodwill.”
The Company’s policy for goodwill arising from the acquisition of an associate is described in “(1) Basis of
consolidation.”(9) Intangible assets
Intangible assets are measured at historical cost, less accumulated amortization and accumulated impairment
losses.
Intangible assets acquired separately are measured at cost upon initial recognition. Intangible assets
acquired in a business combination are recognized separately from goodwill upon initial recognition and aremeasured at fair value at the acquisition date. Any internally-generated research and development expenditure is recognized as an expense in the period in which it is incurred, except for expenditures on development
activities eligible for capitalization (internally-generated intangible assets). The amount initially recognized forinternally-generated intangible assets is the sum of the expenditures incurred from the date when theintangible asset first meets all of the capitalization criteria to the date the development is completed.
There are intangible assets with finite useful lives and intangible assets with indefinite useful lives.
The intangible assets with finite useful lives are amortized over the estimated useful lives. Amortization of
the customer relationships is mainly calculated by the sum-of-the-digits method and intangible assets withfinite useful lives other than customer relationships are amortized by the straight-line method.
The estimated useful lives of major categories of intangible assets with finite useful lives are as follows:
Software
Software related to wireless equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 – 10 years
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 – 5 years
Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 – 20 years
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 – 24 years
Spectrum migration costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 years
Management contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 – 10 years
Favorable lease contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 – 23 years
Trademarks (with finite useful lives) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 – 34 years
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 – 20 years
Amortization methods, useful lives and residual values of assets are reviewed at the end of each fiscal
year, and any changes are applied prospectively as a change in accounting estimate.

Management Organization

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097

Spectrum migration costs are the amounts that the Company incurred in connection with the migration ofexisting users to the other frequency spectrum based on the termination campaign. Useful lives are estimatedbased on the actual utilization of the frequency spectrum in the past.
Favorable lease contracts are recognized as intangible assets based on the estimated fair value of thefavorable portion of future cash flows if, at the time of business combinations, the terms of operating lease
contracts in which the acquiree is the lessee are favorable compared to market terms.
Intangible assets with indefinite useful lives are as follows:• Licenses using specific frequency spectrum granted by the U.S. Federal Communications Commission(“FCC licenses”)• Trademarks (with indefinite useful lives)
As long as the Company acts within the requirements of the regulatory authorities, the renewal andextension of FCC licenses are reasonably certain at minimal cost. Therefore, it has been determined that FCC
licenses have indefinite useful lives.
The Company determined that “Sprint,” “Boost Mobile” and other trademarks have indefinite useful lives
as they can be legally utilized continuously as long as the business continues and management’s current plans
are to offer services under these trademarks for the foreseeable future.
The intangible assets with indefinite useful lives and the intangible assets that are not yet available for use
are not amortized. The impairment of these assets is described in “(11) Impairment of property, plant andequipment, intangible assets and goodwill.”(10) Leases
The assessment of whether an arrangement is a lease or contains a lease is made on a basis of all the facts
and circumstances at the inception of the arrangement.
Leases are classified as finance leases whenever all the risks and rewards of ownership of assets aresubstantially transferred to the lessee. All other leases are classified as operating leases. It is determined that
all the risks and rewards of ownership of assets are transferred to the lessee when the lease terms account formost of the economic useful lives of the assets, or the present values of the total minimum lease payments
are almost equal to the fair values of the assets. The lease terms are the total of the non-cancelable period
and the period which is deemed to be reasonably certain that the renewal option will be exercised at the
inception of the leases.
a. Finance leases(The Company as lessee)
At inception, the Company initially recognizes finance leases as assets and the lease obligation at theamount equal to the fair value of the leased property or, if lower, at the present value of the minimum
lease payments.
Subsequent to initial recognition, the accounting policy for assets held under finance leases is
consistent with that of assets that are owned. Lease payments are apportioned between finance costand reduction of the lease obligation so as to achieve a constant rate of interest on the remainingbalance of the liability.

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b. Operating leases(The Company as lessee)
Gross operating lease payments are recognized as expenses on a straight-line basis over the relevant
lease terms.
(The Company as lessor)
Gross operating lease incomes are recognized as revenues on a straight-line basis over the relevant
lease terms.

(11) Impairment of property, plant and equipment, intangible assets and goodwill
a. Impairment of property, plant and equipment and intangible assets
At the end of the fiscal year, the Company determines whether there is any indication that property,
plant and equipment and intangible assets may be impaired.
If any such indication exists, the recoverable amount of the asset is estimated. When it is notpossible to estimate the recoverable amount of an individual asset, the Company estimates therecoverable amount of the cash-generating unit to which the asset belongs. A cash-generating unit is
the smallest identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or groups of assets.
Intangible assets with indefinite useful lives and intangible assets that are not yet available for use
are tested for impairment annually regardless of whether there is any indication of impairment.
The recoverable amount is the higher of fair value less costs to sell, or value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects the time value of money and the risks specific to the asset.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its
carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable
amount, and an impairment loss is recognized in profit or loss.
At the end of the fiscal year, the Company evaluates whether there is any indication that an
impairment loss recognized in prior years has decreased or extinguished. If such indication of a reversalof an impairment loss exists, the recoverable amount of the asset or cash-generating unit is estimated.
If the recoverable amount of an asset or cash-generating unit is estimated to be higher than its
carrying amount, a reversal of an impairment loss is recognized, to the extent that the increased
carrying amount does not exceed the lower of the recoverable amount or the carrying amount (lessdepreciation and amortization) that would have been recognized, had no impairment loss beenrecognized.
b. Impairment of goodwill
At the end of the fiscal year and at the end of each quarter, the Company determines whether there is
any indication that goodwill may be impaired.
Goodwill is allocated to each of the cash-generating units or groups of cash-generating units thatare expected to benefit from the synergies arising from the business combination, and it is tested forManagement Organization

Financial Section

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098

impairment annually, regardless of any indication of impairment, and when there is an indication thatthe cash-generating unit or groups of cash-generating units may be impaired. If, at the time of theimpairment test, the recoverable amount of the cash-generating unit or groups of cash-generating
units is less than its carrying amount, the impairment loss is allocated first to reduce the carrying
amount of any goodwill allocated to the cash-generating unit or groups of cash-generating units andthen to the other assets pro rata based on the carrying amount of each asset in the unit or groups ofcash-generating units.
Any impairment loss for goodwill is recognized directly in profit or loss and is not reversed insubsequent periods.

(12) Retirement benefits
Defined contribution plans are post-employment benefit plans under which an employer pays fixed contributions into a separate fund and will have no legal or constructive obligations to pay further contributions.
Defined benefit plans are post-employment benefit plans other than defined contribution plans.
The Company primarily adopts defined contribution pension plans.
SoftBank Corp. has frozen its defined benefit lump-sum plans since March 2006 and 2007. Liabilities forthe frozen defined benefit lump-sum plans are recognized as defined benefit liabilities until they are paid in
the form of a lump sum at the time of future retirement of employees.
Sprint has frozen its defined benefit pension plans since December 2005. Liabilities for the defined benefit
pension plans are recognized as defined benefit liabilities until they are paid as pensions after the time ofretirement of employees.
a. Defined contribution plans
Contributions paid for defined contribution plans are recognized as expenses in the period in which
the employees render the related service. Contributions payable are recognized as liabilities.
b. Defined benefit plans
The liability recognized in respect of the defined benefit plans (the defined benefit liability) is the present
value of the defined benefit obligation less the fair value of plan assets at the end of the fiscal year.
The defined benefit obligation is determined by independent actuaries using the projected unit
credit method, and its present value is determined by applying a discount rate based on the yield curveof high-quality corporate bonds over the approximate period of the benefit payments.
Defined benefit cost includes service cost, net interest on the net defined benefit liability (asset),
and remeasurements of the net defined benefit liability (asset). Service cost and net interest arerecognized in net profit or loss. Net interest is determined using the discount rate described above.
The liabilities for the frozen defined benefit plans are calculated on the basis of retirement benefits
vested at the time the plans were frozen. Therefore, service cost is not incurred for those defined
benefit plans.

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The Company’s remeasurements, which comprise actuarial gains and losses and the return on plan
assets (excluding amounts included in net interest), are recognized in other comprehensive income andreclassified to retained earnings immediately from accumulated other comprehensive income.

(13) Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of apast event, it is probable that the Company will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
Provisions are measured using the estimated future cash flows, discounted using a pre-tax rate reflecting
the time value of money and the specific risks of the liability, after taking into account the risks and uncertainties surrounding the obligation at the end of the fiscal year.
The Company recognizes mainly asset retirement obligations, restructuring provisions, and provisions forloss on interest repayment as provisions.
Restructuring provisions are recognized when the Company has a detailed formal plan for the restructuring and has raised a valid expectation to those who will be affected that the Company will carry out the
restructuring by starting implementation of the plan or announcing the main features of the plan.
Restructuring provisions are mainly related to network shutdown and backhaul access contracts. The
details of the restructuring provision are described in “Note 27. Provisions.”
Provision for loss on interest repayment is recorded based on an amount representing future expectedclaims in order to prepare for future claims by debtors and other, for repayment of interest paid in excess of
the rate permitted under the Interest Rate Restriction Act.

(14) Treasury stock
When the Company acquires its own equity share capital (“treasury stock”), the consideration paid, including
any directly attributable incremental costs (net of income taxes), is deducted from equity. No gain or loss isrecognized on the purchase, sale, or cancellation of the treasury stock. The difference between the carrying
amount and the consideration on sale is recognized as capital surplus.

(15) Assets or disposal groups classified as held for sale
Assets or disposal groups, whose recoveries are expected principally through sale transactions rather thancontinuing use, are classified as held for sale when it is highly probable that the sale will be completed within
one year, are available for immediate sale in their present condition, and management commits to a plan to sell.
The Company, when committed to a sale plan involving loss of control of a subsidiary, classifies assets andliabilities of the subsidiary as held for sale when the above criteria are met, regardless of whether theCompany will retain a non-controlling interest in its former subsidiary after the sale.
Assets classified as held for sale are measured at the lower of the carrying amounts and fair values lesscosts to sell and depreciation of property, plant and equipment and amortization of intangible assets are notconducted after the classification.

Management Organization

Financial Section

Corporate Information

099(16) Share-based payments
The Company grants stock options and restricted stock unit awards as equity-settled share-based compensation and phantom stock awards as cash-settled share-based compensation.
Equity-settled share-based compensation is measured at fair value on the grant date. The fair value ofstock options is calculated using models such as the Black-Scholes model, and the fair value of restricted stock
units is calculated using the share price on the date of grant.
The fair value determined on the grant date is expensed over the vesting period, based on the estimatedstock options or restricted stock units that will eventually vest, with a corresponding increase in equity.
The Company regularly reviews the assumptions made and revises estimates of the number of stock
options or restricted stock units that are expected to vest, when necessary.
Cash-settled share-based compensation is accounted for as liabilities and is measured initially at the fairvalue of the award. The fair value of the liabilities is remeasured on each closing date and the settlement date,and changes in fair values are recognized in profit or loss.

(17) Revenue
The Company has adopted IFRS 15 from the three-month period ended June 30, 2018. The Company has
elected not to restate comparative information in accordance with the transition requirements of IFRS 15.
Therefore, the comparative information complies with IAS 11 and IAS 18. Accounting policies applied for the
fiscal year ended March 31, 2019 are as follows.
Also, the Company has changed the reporting segment from the three-month period ended June 30,
2018. Please refer to “Note 6. Segment information” for details.
The Company’s accounting policy for revenue recognition is as follows:
SoftBank segment and Sprint segment
In the SoftBank segment and Sprint segment, the Company mainly provides mobile telecommunications
services, sales of mobile handsets, and fixed-line telecommunications services. In the SoftBank segment,
the Company also provides broadband services and distribution services.
a. Mobile telecommunications services and sales of mobile handsets
The Company provides mobile telecommunications services, which consist of voice communications,data transmission and related optional services to subscribers, and sells mobile handsets to customers.
In mobile telecommunications services, revenues are mainly generated from basic monthly charges
and telecom services and other fees. Also, revenues from the sale of mobile handsets are generated
from the sale of mobile handsets and accessories to subscribers or dealers.
The business flow of the above transactions consists of “Indirect sales,” where the Company sells
mobile handsets to dealers and enters into telecommunications service contracts with subscribers
through dealers, and “Direct sales,” where the Company sells mobile handsets to subscribers andenters into telecommunications service contracts directly with subscribers.
Mobile telecommunications services are invoiced to subscribers on a monthly basis, and the invoice
is due within a short timeframe. The sale of mobile handsets in “Indirect sales” are invoiced when themobile handsets are sold to dealers, and most of the invoices are due within a short timeframe.

SoftBank Group Corp.
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Essential Information

Growth Strategy

Revenues from the sale of mobile handsets in “Direct sales” are invoiced either in a lump-sum, where
payments are made in full upon sale, or in installments, where the installments are invoiced on amonthly basis over the installment period and the invoice is due within a short timeframe. The
Company has determined that these transaction prices do not include a significant financing component arising from the timing of payments, and therefore, no adjustments are made.
The Company has obligations for returns and refunds for mobile telecommunications services andsales of mobile handsets over a certain period of time after contract inception. The estimated amountof obligations for returns and refunds is determined by the type of product and service based on pastexperiences and is deducted from the transaction prices.
In the SoftBank segment, the Company provides extended warranty for mobile handsets as an
optional service and such service is considered as a separate performance obligation in the contract
under which such service is provided.
Revenues from the sale of mobile handsets that are subject to lease contracts are recognized overthe lease term under operating leases at inception under finance leases.
Under prepaid contracts, prepaid amounts from the customer are recognized as contract liabilities andreversed based on the ratio of usage to the total expected usage amount, then recognized as revenue.
(a) Indirect sales
Revenues from the sale of mobile handsets are recognized when mobile handsets are delivered todealers, which is when dealers are deemed to have obtained control of the mobile handsets. In the
SoftBank segment, commissions paid to dealers related to the sales of mobile handsets are estimatedbased on experience and deducted from revenues.
Revenues from mobile telecommunications services are recognized when services are provided tosubscribers. Discounts on the communication charges are deducted from mobile telecommunications
service revenues.
Activation fees and upgrade fees are initially recognized as contract liabilities and reclassed toreverse as the Company provides mobile telecommunications services.
(b) Direct sales
As the sales of mobile handsets and mobile telecommunications services, including fees, are considered
to be one transaction, the total transaction price is allocated to mobile handsets and mobile telecommunications services based on the relative stand-alone selling price. Discounts for both the sale ofmobile handsets and mobile telecommunications charges are deducted from the total transaction price.
As a result of the price allocation above, if the revenue recognized on the sales of mobile handsets
exceeds the consideration received from subscribers, the difference will be recognized as contract
assets, and transferred to trade receivables when the right to invoice is established as mobile telecommunications services are provided. If the consideration received from subscribers exceeds the revenue
recognized on the sales of mobile handset, the difference will be recognized as contract liabilities. Suchcontract liabilities will be reclassified to reverse as the Company provides mobile telecommunications
services and recognized as revenue.

Management Organization

Financial Section

Corporate Information

100

Stand-alone selling prices for the mobile handsets and mobile telecommunications services are
based on observable selling prices when the Company sells the mobile handsets and mobile telecommunications service separately to customers at the start of the contract.
The amount allocated to the sale of mobile handsets is recognized when mobile handsets aredelivered to subscribers which is when the subscribers obtain control of mobile handsets.
The amount allocated to mobile telecommunications services is recognized when the service isprovided to the subscriber.
Contract assets are included in “Other current assets” or “Other non-current assets,” and contract
liabilities are included in “Other current liabilities” or “Other non-current liabilities” in the consolidated
statement of financial position.
b. Fixed-line Telecommunications service
In the fixed-line Telecommunications service, revenues are generated mainly from voice communications and digital data transmission services (“revenues from fixed-line telecommunications service”).
Revenues from fixed-line telecommunications services are recognized as revenues when services areprovided to subscribers, based upon fixed monthly charges plus the usage of the network.
The Company’s accounting policy for revenue recognition of broadband services and distribution
services in the SoftBank segment is as follows:c. Broadband services
For broadband services, revenues are mainly generated from basic monthly charges, telecom services(“revenues from broadband services”) primarily related to internet connection, and other fees.
Revenues from broadband services are recognized as revenues when services are provided tosubscribers, based upon fixed monthly charges plus the usage of the network.
d. Distribution services
For distribution services, revenues are generated mainly from the sales of PC software, peripherals, andmobile handset accessories in Japan. Revenues from distribution services are recognized when thecustomer is deemed to have acquired control over the goods, which is the point in time at which thegoods are delivered to the customer.
For transactions conducted by the Company on behalf of third parties, revenue is presented on a
net basis by excluding payment to third parties from the total consideration received from customers.
Yahoo Japan segment
In the Yahoo Japan segment, revenues are generated mainly from sponsored search advertising, display
advertising, product sales, e-commerce related commission fees and revenue from membership.
Sponsored search advertising revenue is recognized when a visitor to the website clicks theadvertisement.

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy

Display advertising comprises premium advertising, Yahoo! Display Ad Network (“YDN”) and otherservices.
Revenue from premium advertising is recognized over a period in which related advertisement isdisplayed.
Revenue from YDN is recognized when a visitor to the website clicks the advertisement on the
webpage with the related content.
Revenue from product sales is recognized when the customer obtains control of the product, whichis the point in time at which the customer has obtained the ability to direct the use of, and obtain
substantially all of the remaining benefits from, the product.
Revenue from e-commerce related commission fees is mainly generated from Yahoo! Auctions.
Yahoo! Auctions provides online auction services to individual and corporate customers. When
products are sold, system usage fees for successful bids from sellers are recognized as revenue at thetime of closing.
Revenue from membership fees is generated from the sale of “Yahoo! Premium,” which provides
various benefits to individual customers and is recognized over the membership period.
Arm segment
In the Arm segment, revenue is mainly generated from licenses to Arm’s technology and royalties
arising from the subsequent sale of licensees’ chips that contain Arm’s technology.
The license revenue related to right to use intellectual property is recognized when the customer
obtains control of the license, which is the point in time at which the customer has obtained the ability
to direct the use of, and obtain substantially all of the remaining benefits from the license.
Royalty revenues are generated from the sale of the licensees’ chips that contain Arm technology
and are recognized at the time of licensee chip sales. The Company estimates the royalty revenue thatwill be generated from the licensee chip sales in the current quarter. These are then trued-up in thesubsequent quarter following the receipt of the licensees’ royalty report.
Brightstar segment
In the Brightstar segment, revenues are generated mainly from distribution of mobile handsets totelecommunications service providers and retailers overseas.
Revenue in the Brightstar segment is recognized when the customer obtains control of a product,
which is the point in time at which the customer has obtained the ability to direct the use of, andobtain substantially all of the remaining benefits from, the product.
For transactions conducted by the Company on behalf of third parties, revenue is presented on a
net basis by excluding payment to third parties from the total consideration received from customers.

Management Organization

Financial Section

Corporate Information

101(18) Costs to obtain contracts
The Company recognizes the costs that would not have been incurred if the telecommunications service
contract had not been obtained and that are expected to be recovered, as assets from the costs to obtain
contracts. The Company capitalizes mainly the sales commissions that the Company pays to dealers for
obtaining and maintaining mobile telecommunications service contracts with subscribers.
The costs to obtain contracts are amortized on a straight-line basis over the period during which goods orservices related to such costs are expected to be provided. At each fiscal year-end and quarterly period-end,
the Company assesses the capitalized costs to obtain contracts for impairment.
Using a practical expedient in accordance with IFRS 15, the Company accounts for the costs to obtain
contracts as expenses when incurred if the amortization period of the costs to obtain contracts is one year or less.

(19) Income tax
Income tax expense is composed of current and deferred taxes, and recognized in profit or loss, except fortaxes related to business combinations and items that are recognized in other comprehensive income or
directly in equity.
Current tax is measured at the amount expected to be paid to or recovered from the taxation authorities,
using the tax rates and tax laws that have been enacted or substantively enacted by the end of the fiscal year.
Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available
against which deductible temporary differences, net operating loss carryforwards and tax credit carryforwards
can be utilized. The recoverability of deferred tax assets is reassessed at the end of the fiscal year.
Deferred tax assets are not recognized for temporary differences from initial recognition of assets and liabilities
that do not arise from business combinations and that do not impact accounting profit or taxable income.
Deferred tax assets are recognized for deductible temporary differences associated with investments in
subsidiaries and associates when it is probable that the temporary difference will reverse in the foreseeable
future and when there will be sufficient taxable profits against which the temporary differences can be utilized.
Deferred tax liabilities are basically recognized for taxable temporary differences, except for:• temporary differences arising from the initial recognition of assets and liabilities, and related transactions
other than business combinations, that affect neither the accounting profit nor the taxable profit;• taxable temporary differences arising from the initial recognition of goodwill; and• taxable temporary differences associated with investments in subsidiaries and associates, where theCompany is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to theperiod when the asset is realized or the liability is settled, based on tax laws that have been enacted or
substantively enacted by the end of the fiscal year.
Deferred tax assets and liabilities are offset if the Company has a legally enforceable right to set off
current tax assets against current tax liabilities, and income taxes are levied by the same taxation
authority on the same taxable entity.

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy(20) Earnings per share
Basic earnings per share is calculated by dividing net income attributable to owners of the parent by theweighted-average number of ordinary shares (after adjusting for treasury stocks) outstanding for the period.
Diluted earnings per share assumes full conversion of the issued potential stocks having a dilutive effect,with an adjustment for net income attributable to owners of the parent and the weighted-average number ofordinary shares (after adjusting for treasury stocks) outstanding for the period.

(21) Significant accounting policies for the SoftBank Vision Fund and Delta Fund segment
For Softbank Vision Fund and Delta Fund, the Company applies the same accounting policies as follows.
a. Consolidation of the SoftBank Vision Fund and Delta Fund segment by the Company
SoftBank Vision Fund and Delta Fund are Limited Partnerships established by their respective General
Partner which are wholly-owned subsidiaries of the Company, and by their form of organization,
qualify as structured entities. SoftBank Vision Fund and Delta Fund are consolidated by the Company
for the following reasons.
The various entities comprising SoftBank Vision Fund and Delta Fund make investment decisions
through their respective Investment Committee, which were established as committees of SBIA. SBIA isan advisory company and is a wholly-owned subsidiary of the Company. As such, the Company has
power as defined under IFRS 10 “Consolidated Financial Statements” over SoftBank Vision Fund andDelta Fund. Furthermore, SBIA receives performance fees and the Company receives distributions
attributable to Limited Partners based on the investment performance as returns from the Funds. The
Company has the ability to affect those returns through its power over the Funds, and therefore, theCompany is deemed to have control as stipulated in IFRS 10 over each Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be
paid from SoftBank Vision Fund and Delta Fund are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that theCompany is deemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, their resultsof operations, assets and liabilities are included in the Company’s consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in SoftBank
Vision Fund are eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies overwhich the Company has significant influence under IAS 28 “Investments in Associates and Joint
Ventures” are associates of the Company, and the portfolio companies that are joint ventures of
SoftBank Vision Fund when, as defined under IFRS 11, “Joint Arrangements,” SoftBank Vision Fundhas joint control with other investors under contractual arrangements and the investors have rights tothe net assets of the arrangement.

Management Organization

Financial Section

Corporate Information

102

The investments in associates and joint ventures of the Company made by SoftBank Vision Fundare accounted for as financial assets at FVTPL in accordance with Paragraph 18 of IAS 28, andpresented as “Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” inthe consolidated statement of financial position. The payments for these investments are presented as“Payments for acquisition of investments by SoftBank Vision Fund and Delta Fund” under cash flows
from investing activities in the consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates and joint ventures of the Company made by SoftBank
Vision Fund and Delta Fund are accounted for as financial assets at FVTPL. The presentation of theseinvestments in the consolidated statement of financial position and the consolidated statement of cash
flows are the same as the above “(b) Investments in associates and joint ventures.”c. Presentation of the results from the SoftBank Vision Fund and Delta Fund business
Income and loss arising from the SoftBank Vision Fund and Delta Fund business are separated fromoperating income and loss arising from other businesses, recognized as a component of operating
income, and presented as “Operating income from SoftBank Vision Fund and Delta Fund” in the
consolidated statement of income. Gain and loss arising from “b. Portfolio company investments madeby SoftBank Vision Fund and Delta Fund” (realized gain and loss on sales of investments, unrealized
gain and loss on valuation of investments, interest and dividend income from investments, except forgain and loss on investments in subsidiaries) and operating expenses such as incorporation expenses ofentities that comprise SoftBank Vision Fund and Delta Fund, investment research expenses arising from
SBIA, and administrative expenses arising from each entity, are included in “Operating income from
SoftBank Vision Fund and Delta Fund.”d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries under the premise of offering suchinvestments to SoftBank Vision Fund and Delta Fund that were made in accordance with theinvestment eligibility criteria of SoftBank Vision Fund at the time of acquisition (“Bridge Investments”)
are accounted for as financial assets at FVTPL. The Company makes the decision to transfer suchinvestments after the Company obtains consent from the investment committee and other bodies (andcertain limited partners, if applicable) at SoftBank Vision Fund and approvals from relevant regulatory
authorities. The Company changes the presentation of Bridge Investments in its consolidated financial
statements in the annual period in which the Company made the decision to transfer such investments(hereafter phrased as “the transfer was agreed”) as further described below.
(a) Investments made in the fiscal year ended March 31, 2019
If the transfer was agreed to in the fiscal year ended March 31, 2019, the Company presents items
relevant to those investments as if SoftBank Vision Fund and Delta Fund had made those investmentsfrom the date when the Company initially made the investments. Those items would be presented as“Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the consolidated

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

statement of financial position, “Operating income from SoftBank Vision Fund and Delta Fund” in the
consolidated statement of income, and “Payments for acquisition of investments by SoftBank Vision Fundand Delta Fund” under cash flows from investing activities in the consolidated statement of cash flows.
On the other hand, if the investments had not yet been agreed to as of March 31, 2019, theCompany would present items relevant to those investments as “Investment securities” in the
consolidated statement of financial position, “Gain from financial instruments at FVTPL” in the
consolidated statement of income, and “Payments for acquisition of investments” under cash flows
from investing activities in the consolidated statement of cash flows.
(b) Investments made on or prior to March 31, 2018
i. Investments for which the transfer is agreed in the fiscal year ended March 31, 2019
If the transfer was agreed in the fiscal year ended March 31, 2019, the Company presents the carrying
amounts of those investments as if the investments had been agreed to be transferred at April 1,
2018. Those investments would be presented as “Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL” in the consolidated statement of financial position as of March 31,
2019 and with the respective gain and loss on those investments as “Operating income from SoftBank
Vision Fund and Delta Fund” in the consolidated statement of income for the fiscal year ended March
31, 2019. For the periods prior to April 1, 2018, the following presentation would be applied. The
carrying amounts of those investments are presented as “Investment securities” in the consolidated
statement of financial position as of March 31, 2018, gain and loss on investments as “Gain fromfinancial instruments at FVTPL” in the consolidated statement of income for the fiscal year ended
March 31, 2018, and payments for acquisition of investments as “Payments for acquisition of
investments” under cash flows from investing activities in the consolidated statement of cash flows forthe fiscal year ended March 31, 2018.
ii. Investments for which the transfer is agreed on or prior to March 31, 2018
If the transfer was agreed on or prior to March 31, 2018, the Company presents the carrying amountsof those investments as if the investments had been agreed to be transferred at April 1, 2017. Thoseinvestments would be presented as “Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL” in the consolidated statement of financial position as of March 31, 2018
and the respective gain and loss on those investments as “Operating income from SoftBank Vision
Fund and Delta Fund” in the consolidated statement of income for the fiscal year ended March 31,
2018, and payments for acquisition of investments as “Payments for acquisition of investments by
SoftBank Vision Fund and Delta Fund” under cash flows from investing activities in the consolidated
statement of cash flows for the fiscal year ended March 31, 2018.
e. Investments that are not Bridge Investments and for which the transfer is agreed
For investments that are not Bridge Investments, when the transfer is agreed, the Company continues
to apply the same accounting treatment followed in the periods prior to the agreement. They areaccounted for as financial assets at FVTPL for the fiscal year ended March 31, 2019.

Management Organization

Financial Section

Corporate Information

103

If the transfer was agreed in the fiscal year ended March 31, 2019, the Company presents the
carrying amounts of those investments as of March 31, 2019 as if the investments had been made by
SoftBank Vision Fund on the date the transfer was agreed. Those investments would be presented as“Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the consolidated statement of financial position as of March 31, 2019, the difference between the carrying
amount and the transferred amount and the respective gain and loss on those investments arisingfrom the difference between the transferred amount and fair value as of March 31, 2019 as “Gain andloss from financial instruments at FVTPL” and “Operating income from SoftBank Vision Fund and Delta
Fund” in the consolidated statement of income for the fiscal year ended March 31, 2019, respectively,
and payments for acquisition of such investments as “Payments for acquisition of investments” undercash flows from investing activities in the consolidated statement of cash flows for the fiscal year
ended March 31, 2019.
f. Contribution from Limited Partners to SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund issue capital calls from their respective limited partners(“Capital Call”).
(a) Contribution from Limited Partners other than the Company
The interests attributable to limited partners of SoftBank Vision Fund and Delta Fund other than the
Company (“Third-Party Investors”) are classified as financial liabilities, “Third-party interests in SoftBank
Vision Fund and Delta Fund” in the consolidated statement of financial position, due to the predetermined finite life (in principle, until November 20, 2029 for SoftBank Vision Fund and until September 27,
2029 for Delta Fund) and contractual payment provision to each of the limited partners at the end of thefinite life within SoftBank Vision Fund and Delta Fund’s limited partnership agreements. The liabilities areclassified as “financial liabilities measured at amortized cost” upon initial recognition. The carrying amounts
attributable to Third-Party Investors represent the amounts that would be distributed in accordance withthe limited partnership agreement in a theoretical liquidation scenario at the end of each year.
“Third-party interests in SoftBank Vision Fund and Delta Fund” fluctuate due to the results of
SoftBank Vision Fund and Delta Fund in addition to contributions from Third-Party Investors insatisfaction of Capital Calls, and distributions and repayments of investments to Third-Party Investors.
The fluctuations due to the results of SoftBank Vision Fund and Delta Fund are presented as “Change inthird-party interests in SoftBank Vision Fund and Delta Fund” in the consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included in“Contributions into SoftBank Vision Fund and Delta Fund from third-party investors” under cash flows
from financing activities in the consolidated statement of cash flows. The distributions and repayments
of investments to Third-Party Investors are included in “Distribution/repayment from SoftBank Vision
Fund and Delta Fund to third-party investors” under cash flows from financing activities in the
consolidated statement of cash flows.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9, “Financial Instruments,”
and therefore such amount is not recorded in the consolidated statement of financial position.

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy(b) Contribution from the Company
Contribution from the Company to SoftBank Vision Fund and Delta Fund as a limited partner iseliminated in consolidation.

4. Changes in Accounting Policies

Management Organization

Financial Section

104

Corporate Information

The financial impacts of applying “IFRS 9 Financial Instruments” and “IFRS 15 Revenue from Contracts
with Customers” on the consolidated statement of financial position as of April 1, 2018 and consolidated
financial statements for the fiscal year ended March 31, 2019 are as follows:(Consolidated Statement of Financial Position)
As of April 1, 2018

The following standard was adopted from the three-month period ended June 30, 2018.
Standard/interpretation

IFRS 9IFRS 15

Financial Instruments IFRS 9 replaces the previous IAS 39. Main revisions are:• to revise classification into measurement categories of financial
instruments (amortized cost and fair value) and measurement;• to revise the treatment of changes in fair value of financial
liabilities measured at fair value;• to revise the eligibility requirement of hedged items and hedging
instruments, and requirements related to the effectiveness of thehedge; and• to revise the measurement approach for impairment by introducing
an impairment model based on the expected credit loss.
Revenue fromContracts with
Customers(Millions of yen)

Outline of the new/revised standards

IFRS 15 replaces the previous IAS 11 and IAS 18. Main revisions are:• to require revenue recognition by the following five steps:
a. identify the contract with the customer
b. identify the performance obligations in the contractc. determine the transaction priced. allocate the transaction price to each performance obligation in
the contract
e. recognize revenue when (or as) a performance obligation issatisfied• to revise the treatment for contract costs, license and guarantee of
products; and• to increase the disclosure related to revenue recognition.

There are no significant impacts on the consolidated financial statements due to the adoption of the othernew standards or interpretations.
In accordance with the transitional provisions of IFRS 9, the Company applied this standard retrospectively
to financial instruments held as of the date of initial application (April 1, 2018) and recognized the cumulative
effect of applying the standard as an adjustment to the opening retained earnings and accumulated othercomprehensive income at the date of initial application. Accordingly, comparative information for the fiscal
year ended March 31, 2018 is not restated.
In accordance with the transitional provisions of IFRS 15, the Company applied this standard retrospectively to contracts that are not completed as of the date of initial application (April 1, 2018) and recognized
the cumulative effect of applying the standard as an adjustment to the opening retained earnings at the dateof initial application. Accordingly, comparative information for the fiscal year ended March 31, 2018 has notbeen restated.

Before adoption

ASSETS
Trade and other receivables . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . .
Other current assets1 . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . .
Costs to obtain contracts2 . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . .
Other non-current assets1 . . . . . . . . . . .
LIABILITIES AND EQUITY
Trade and other payables1 . . . . . . . . . . .
Other current liabilities1 . . . . . . . . . . . . .
Deferred tax liabilities . . . . . . . . . . . . . .
Other non-current liabilities1 . . . . . . . . .
Retained earnings1,2,5 . . . . . . . . . . . . . . .
Accumulated othercomprehensive income5 . . . . . . . . . . . .
Non-controlling interests . . . . . . . . . . . .

¥2,314,353
362,041
344,374
6,784,550–
647,514221,232IFRS 9adjustment
amountIFRS 15
adjustment
amount

¥

¥

75
–
(177)
–
–
31
–

After adoption

6,580(2,539)12,416(13,271)304,778(54,466)(21,999)¥2,321,008
359,502356,613
6,771,279
304,778
593,079
199,233

1,816,010
658,961
1,085,626
303,915
3,940,259––––
52,537(62,238)
46,90041,387(58,029)
248,078

1,753,772
705,861
1,127,013
245,886
4,240,874

317,959
1,088,846(52,531)(22)(5,297)
21,322

260,131
1,110,146

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy(Consolidated Statement of Financial Position)
As of March 31, 2019

Management Organization

Financial Section

As of March 31, 2019
(Millions of yen)
IFRS 9adjustment
amount

Before adoption

ASSETS
Trade and other receivables . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . .
Other current assets1 . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . .
Costs to obtain contracts2 . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . .
Other non-current assets1 . . . . . . . . . . .
LIABILITIES AND EQUITY
Trade and other payables1 . . . . . . . . . . .
Other current liabilities1 . . . . . . . . . . . . .
Deferred tax liabilities . . . . . . . . . . . . . .
Other non-current liabilities1 . . . . . . . . .
Retained earnings1,2,5 . . . . . . . . . . . . . .
Accumulated othercomprehensive income5 . . . . . . . . . . . .
Non-controlling interests . . . . . . . . . . . .

105

Corporate Information¥2,324,372
367,512712,328
6,915,549–
656,928
207,746¥IFRS 15
adjustment
amount(Thousands of U.S. dollars)

After adoption

55
–
1
–
–
31
–

¥ 15,550(2,252)54,227(23,354)384,076(70,016)
8,213¥2,339,977
365,260
766,556
6,892,195
384,076
586,943
215,959

1,999,412
1,099,240
1,324,240
323,317
5,045,863––––
175,084(89,804)
59,11566,832(64,737)
350,338

1,909,608
1,158,355
1,391,072
258,580
5,571,285

465,228
1,342,375(174,951)(13)(9)
45,361

290,268
1,387,723

IFRS 9adjustment
amountIFRS 15
adjustment
amountAfter adoption

496
–
9
–
–
279
–

$ 140,102(20,290)
488,576(210,416)
3,460,456(630,831)
73,999$21,082,773
3,290,927
6,906,533
62,097,441
3,460,456
5,288,251
1,945,753

18,014,344
9,903,955
11,931,165
2,913,028
45,462,321––––
1,577,475(809,118)
532,616
602,145(583,269)
3,156,483

17,205,226
10,436,571
12,533,310
2,329,759
50,196,279

4,191,621
12,094,558(1,576,277)
(117)

(81)
408,6942,615,263
12,503,135

Before adoption

ASSETS
Trade and other receivables . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . .
Other current assets1 . . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . .
Costs to obtain contracts2 . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . .
Other non-current assets1 . . . . . . . . . . .
LIABILITIES AND EQUITY
Trade and other payables1 . . . . . . . . . . .
Other current liabilities1 . . . . . . . . . . . . .
Deferred tax liabilities . . . . . . . . . . . . . .
Other non-current liabilities1 . . . . . . . . .
Retained earnings1,2,5 . . . . . . . . . . . . . . .
Accumulated othercomprehensive income5 . . . . . . . . . . . .
Non-controlling interests . . . . . . . . . . . .

$20,942,175
3,311,217
6,417,948
62,307,857–
5,918,803
1,871,754$

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy(Consolidated Statements of Income)Fiscal year ended March 31, 2019

Management Organization

Financial Section

106

Corporate Information(Consolidated Statements of Comprehensive Income)Fiscal year ended March 31, 2019
(Millions of yen)
IFRS 9adjustment
amountIFRS 15
adjustment
amountAfter adoption

¥

–
–
–

¥ 59,310(14,467)
44,843¥ 9,602,236(5,747,671)
3,854,565(2,910,922)

4,334

119,914(2,786,674)

Before adoption

Net sales1 . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of sales . . . . . . . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general andadministrative expenses2 . . . . . . . . . . . . .
Operating income from SoftBank Vision Fundand Delta Fund5 . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . .
Income on equity method investments . . .
Gain from financial instruments at FVTPL5 . .
Other non-operating income3,5 . . . . . . . . .
Income taxes. . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . .

¥ 9,542,926(5,733,204)
3,809,722

1,121,114
2,049,338
365,768
23,03442,450(220,867)¥ 1,209,192

135,527
139,861(48,974)
15,409(9,770)23,411¥120,063–
164,732–––(39,228)¥125,363

1,256,641
2,353,931
316,794
38,44332,680(236,684)¥ 1,454,618

Basic earnings per share (Yen) . . . . . . . . . .
Diluted earnings per share (Yen) . . . . . . . .

¥1,061.72
1,050.46¥112.41112.21¥94.0293.86¥1,268.15
1,256.53

Before adoption

IFRS 9adjustment
amountIFRS 15
adjustment
amountAfter adoption–––$ 534,373(130,345)
404,028$ 86,514,425(51,785,485)
34,728,940(26,226,885)

39,0481,080,403(25,107,434)(Millions of yen)

Net income . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income, net of tax
Items that will not be reclassified to
profit or loss
Equity financial assets at FVTOCI3. . . .
Items that may be reclassified
subsequently to profit or loss
Available-for-sale financial assets3,4,5 . .
Debt financial assets at FVTOCI4. . . . .
Exchange differences on translating
foreign operations . . . . . . . . . . . . . .
Share of other comprehensive incomeof associates accounted for using theequity method5 . . . . . . . . . . . . . . . .

$ 85,980,052(51,655,140)
34,324,912$

10,101,036
18,464,168
3,295,504
207,532
382,467(1,989,972)$ 10,894,603

1,221,074
1,260,122(441,247)
138,833(88,026)
210,928$1,081,746–
1,484,206–––(353,437)$1,129,498

11,322,110
21,208,496
2,854,257
346,365
294,441(2,132,481)$ 13,105,847

Basic earnings per share (Dollar) . . . . . . . .
Diluted earnings per share (Dollar) . . . . . .

$9.57
9.46

$1.01
1.01

$0.85
0.85

$11.43
11.32

IFRS 15
adjustment
amountAfter adoption¥ 1,209,192¥ 120,063¥125,363¥ 1,454,618–(3,664)–(3,664)

154,311–(154,311)
1,145

–
–

–
1,145

27,5501(323)

27,228(19,123)

34,529–15,406

Before adoption

IFRS 9adjustment
amountIFRS 15
adjustment
amountAfter adoption$10,894,603$1,081,746$1,129,498$13,105,847–(33,012)–(33,012)1,390,314–(1,390,314)
10,316–––
10,316248,2219(2,911)

245,319(172,295)

311,101–

138,806(Thousands of U.S. dollars)(Thousands of U.S. dollars)

Net sales1 . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of sales . . . . . . . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative
expenses2 . . . . . . . . . . . . . . . . . . . . . . . .
Operating income from SoftBank Vision Fundand Delta Fund5 . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . .
Income on equity method investments . . .
Gain from financial instruments at FVTPL5 . .
Other non-operating income3,5 . . . . . . . . .
Income taxes. . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . .

Before adoption

IFRS 9adjustment
amount

Net income . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income, net of tax
Items that will not be reclassified to
profit or loss
Equity financial assets at FVTOCI3. . . .
Items that may be reclassified
subsequently to profit or loss
Available-for-sale financial assets3,4,5 . .
Debt financial assets at FVTOCI4. . . . .
Exchange differences on translating
foreign operations . . . . . . . . . . . . . .
Share of other comprehensive incomeof associates accounted for using theequity method5 . . . . . . . . . . . . . . . .

Notes:
1. Mobile telecommunications services and sales of mobile handsets
There are various changes related to the allocation of transaction prices to revenues from the mobile telecommunications services and revenues
from the sale of mobile handsets as well as timing of revenue recognition. The main changes result from changes in the accounting treatment for
wireless subsidy contracts and changes in the period during which revenue from activation fees and upgrade fees are deferred. The Company
previously deferred direct costs related to activation over the same period as the revenue from activation fees and upgrade fees. As a result of
adopting IFRS 15, the Company recognizes direct costs related to activation as expenses when incurred, except for costs incurred related toobtaining contracts.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

107

In addition, interest incurred on an installment contract entered into between the Company and a subscriber is not a significant financing
component under IFRS 15. Therefore, the Company does not adjust for the financing component of installment receivables at contract inception.

3. Financial assets previously classified as available for sale are classified as equity financial assets at FVTOCI by making an irrevocable election thatwould otherwise be measured at fair value through profit or loss to present subsequent changes in fair value in other comprehensive income.

2. Capitalization of costs to obtain contracts
The Company’s existing approach is to recognize sales commissions to dealers related to mobile telecommunications service contracts as
expenses when incurred. As a result of adopting IFRS 15, the Company capitalizes the sales commissions that would not have been incurred if
the mobile telecommunications service contract had not been obtained and that are expected to be recovered, as the costs to obtain contracts.
The costs to obtain contracts are amortized on a straight-line basis over the period during which services related to such costs are expected to
be provided.

4. Financial assets previously classified as available for sale are classified as debt financial assets at FVTOCI taking into account the business modeland cash flow characteristics.
5. Financial assets previously classified as available for sale other than financial assets described in the above Notes 3 and Notes 4 are classified as
financial assets at FVTPL.

Major effects on the carrying amount from the change in classification of financial assets due to the adoption of IFRS 9 as of April 1, 2018 are as follows. There are no changes in classification and carrying amounts offinancial liabilities.
As of April 1, 2018
(Millions of yen)Previous standard (IAS 39)

Change in classification
Available-for-sale tofinancial assets at
FVTPL

Classification of financial assets

Carrying amountFinancial assets at FVTPL . . . . . . . . . . . . . . . . . . . . . .
Derivatives designated as hedging instruments . . . . .

¥4,749,563
4,358¥ 501,941–

Available-for- sale . . . . . . . . . . . . . . . . . . . . . . . . . . .

860,147

Held-to-maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans and receivables . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

116,172
3,267,848¥8,998,088¥

New standard (IFRS 9)
Available-for-sale tofinancial assets at
amortized cost

Classification of financial assets

Carrying amountFinancial assets at FVTPL . . . . . . . . . . . . . . . . . . . . . .

¥5,255,159

Derivatives designated as hedging instruments . . . . .
Debt financial assets at FVTOCI . . . . . . . . . . . . . . . . .
Equity financial assets at FVTOCI . . . . . . . . . . . . . . . .

4,358
249,427
108,679(3,655)

Financial assets at amortized cost . . . . . . . . . . . . . . .

3,380,465–

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥8,998,088––¥ 3,655–(501,941)

(100)

–

–

100

–

¥

Loans and receivables
to financial assets at
FVTPL

¥

–

¥

Measurement categories under IAS 39 and IFRS 9 for the Company’s major financial assets as of April 1, 2018 are as follows. There are no changes in measurement categories and carrying amounts of financial liabilities.
As of April 1, 2018
(Millions of yen)Previous standard (IAS 39)

New standard (IFRS 9)

Major financial assets

Measurement category

Carrying amountMeasurement category

Carrying amount

Equity securities
Investments from SoftBank Vision Fund and Delta Fund

FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,817,160

Available-for-sale . . . . . . . . . . . . . . . . . . .

525,951

FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,802,152

Bonds

Available-for-sale . . . . . . . . . . . . . . . . . . .

240,921

Trade and other receivables

Amortized cost . . . . . . . . . . . . . . . . . . . . .

2,314,353

FVTPL6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FVTOCI7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FVTPL6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortized cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FVTOCI8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortized cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥2,817,160
102,368
423,583
1,802,152100
224,090
16,731
2,314,428

Other equity securities

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

6. Financial assets previously designated as financial assets at FVTPL are classified as financial assets at FVTPL in accordance with the criteria
regarding the classification under IFRS 9.
7. Financial assets previously classified as available for sale are classified as equity financial assets at FVTOCI by making an irrevocable election thatwould otherwise be measured at fair value through profit or loss to present subsequent changes in fair value in other comprehensive income.
8. Financial assets previously classified as available for sale are classified as debt financial assets at FVTOCI since they are held within a businessmodel whose objective is achieved by both collecting contractual cash flows and selling financial assets.

5. Significant judgments and estimates
In preparing consolidated financial statements under IFRSs, management makes judgments, estimates, andassumptions that affect the application of accounting policies and carrying amounts of assets, liabilities,
revenue, and expenses. These estimates and underlying assumptions are based on management’s best
judgments, through their evaluation of various factors that were considered reasonable as of the period-end,
based on historical experience and by collecting available information. By the nature of its estimates orassumptions, however, actual results in the future may differ from those projected estimates or assumptions.
Estimates and underlying assumptions are continuously reviewed. Revisions to accounting estimates arerecognized in the period in which the estimate is revised as well as in the future periods. Significant judgments, estimates and assumptions that affect the amounts recognized in the Company’s consolidated
financial statements are as follows:• significant judgments of whether an entity is controlled by the Company in determining the scope of
consolidation ((1) and (21) in “Note 3. Significant accounting policies” and “Note 18. Major
subsidiaries”);• significant judgments for the determination of the scope and accounting treatment of associates ((1)
and (21) in “Note 3. Significant accounting policies”);• estimates for impairment of investments accounted for using the equity method ((1) in “Note 3.
Significant accounting policies” and “Note 44. Other non-operating income”);• estimates of fair value of assets acquired and the liabilities assumed in a business combination ((2) in“Note 3. Significant accounting policies” and “Note 8. Business combinations”);• fair value measurement of financial assets at FVTPL, debt financial assets at FVTOCI, and equity financial
assets at FVTOCI ((4) and (21) in “Note 3. Significant accounting policies,” “Note 7. SoftBank Vision
Fund and Delta Fund business,” (1) and (2) in “Note 30. Fair value of financial instruments,” “Note 43.
Gain (loss) from financial instruments at FVTPL”);• estimates for write-downs of inventories ((6) in “Note 3. Significant accounting policies,” and “Note 40.
Other operating loss”);• judgments and estimates for accounting treatment of contracts including leases ((10) in “Note 3.
Significant accounting policies”);• estimates for impairment of property, plant and equipment, intangible assets and goodwill ((11) in“Note 3. Significant accounting policies,” “Note 16. Goodwill and intangible assets” and “Note 40.
Other operating loss”);

Management Organization

Financial Section

Corporate Information108• measurement of defined benefit obligation ((12) in “Note 3. Significant accounting policies” and (2) in“Note 28. Retirement benefits”);• judgments and estimates for recognition and measurement on provisions ((13) in “Note 3. Significant
accounting policies” and “Note 27. Provisions”);• estimates for salability of assets regarding reclassification from non-current assets to assets classified asheld for sale ((15) in “Note 3. Significant accounting policies” and “Note 14. Assets classified as held forsale”);• judgments and estimates for revenue recognition and measurement ((17) in “Note 3. Significant
accounting policies” and “Note 37. Net sales”);• estimates for amortization period of costs to obtain contracts ((18) in “Note 3. Significant accounting
policies”);• assessment of recoverability of deferred tax assets ((19) in “Note 3. Significant accounting policies” and(2) and (4) in “Note 22. Income taxes”);• estimates for measurement of contribution from Third-party interests to SoftBank Vision Fund and Delta
Fund ((21) in “Note 3. Significant accounting policies” and (2) in “Note 7. SoftBank Vision Fund andDelta Fund business”);• recognition of liabilities and expenses related to contingencies (“Note 40. Other operating loss” and (b)(3) b. in “Note 49. Contingency”); and• estimates for residual value and useful life of property, plant and equipment and intangible assets ((7)
and (9) in “Note 3. Significant accounting policies”).
As a result of reviewing the efficiency of communications equipment in SoftBank Corp., it became
highly probable that certain communications equipment will be disposed and removed, and therefore,
the useful lives were revised. Due to this change, “Cost of sales” in the consolidated statement ofincome for the fiscal year ended March 31, 2018 increased by ¥22,712 million.

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

109

6. Segment information(2) Net sales and income of reportable segments(1) Description of reportable segments

Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are
determined under the same general business conditions as applied for external customers.
The Company also discloses EBITDA (i.e., segment income and loss after addition of depreciation andamortization excluding amortization relating to costs to obtain contracts) and adjusted EBITDA (i.e., EBITDA
after addition or deduction of gain relating to loss of control over subsidiaries, adjustments relating toinvestments in SoftBank Vision Fund and Delta Fund (unrealized gain and loss on valuation of investments andeffect of foreign exchange translation), and other adjustments (gains are deducted)) by each reportablesegment. “Other adjustments” are special items, such as acquisition-related costs and impairment loss mainly
included in other operating income and loss.
Adjusted EBITDA in the SoftBank Vision Fund and Delta Fund segment is defined as the total amount ofdifference between the realized amount by sales of investments and acquisition costs (“realized gain and loss
from sales of investments”) and interest and dividend income from investments with deduction of operating
expenses, excluding depreciation and amortization.
Income and loss, which is not attributable to operating income and loss, such as financial cost and income
and loss on equity method investments, is not managed by each reportable segment and therefore theseincome and losses are excluded from segment performance.

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 inorder to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2018, the Company had six reportable segments, the Domestic
Telecommunications segment, the Sprint segment, the Yahoo Japan segment, the Distribution segment, theArm segment, and the SoftBank Vision Fund and Delta Fund segment. However, from the three-month period
ended June 30, 2018, in accordance with changes in the Company’s organization based on its uniqueorganizational strategy, Cluster of No.1 Strategy, the Company has revised its segment classifications to thefollowing six reportable segments: the SoftBank segment, the Sprint segment, the Yahoo Japan segment, theArm segment, the SoftBank Vision Fund and Delta Fund segment, and the Brightstar segment.
The SoftBank segment provides, mainly through SoftBank Corp., mobile communications services, sale ofmobile devices, fixed-line telecommunication services such as broadband services in Japan, and through
SoftBank Commerce & Service Corp. (currently SB C&S Corp.), sale of mobile device accessories, PC software,and peripherals in Japan.
The Sprint segment provides, through Sprint, mobile communications services, sale and lease of mobile
devices, sale of mobile device accessories, and fixed-line telecommunications services in the U.S.
The Yahoo Japan segment provides, mainly through Yahoo Japan Corporation, an Internet-based
advertising business, an e-commerce business, and membership services.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, and the sale of software tools.
The SoftBank Vision Fund and Delta Fund segment conducts investment activities in a wide range oftechnology sectors. The segment income of the SoftBank Vision Fund and Delta Fund segment consists ofgain and loss arising from investments, including subsidiaries, held by SoftBank Vision Fund and Delta Fund orinvestments in which transfer is agreed to (gain and loss on investments at SoftBank Vision Fund and Delta
Fund), and operating expenses incurred by SoftBank Vision Fund, Delta Fund, and SBIA.
The Brightstar segment provides, through Brightstar, distribution of mobile devices overseas.
Information on business segments which are not included in the reportable segments is classified in“Other.” “Other” includes mainly Fortress and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions and the corporate general expenses
unallocated to each reportable segment. Expenses arising mainly from SoftBank Group Corp. and SB GroupUS, Inc., which manage and supervise investment activities in the Internet, communication, and media fields
overseas, are included in corporate general expenses.
Segment information for the fiscal year ended March 31, 2018 is presented based on the reportablesegments after the aforementioned change.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Financial Section

Management Organization

110

Corporate Information

For the fiscal year ended March 31, 2018
(Millions of yen)
Reportable segments

Net sales
Customers� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Intersegment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Segment income � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Reconciliation of segment income to adjusted EBITDA
Segment income � � � � � � � � � � � � � � � � � � � � � � � � � � �
Depreciation and amortization � � � � � � � � � � � � � � � �
EBITDA � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Adjustments relating to investments in SoftBank Vision
Fund and Delta Fund
Unrealized gain (loss) on valuation of investments � �Other adjustments � � � � � � � � � � � � � � � � � � � � � � � � � � �
Adjusted EBITDA � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

SoftBank

SprintYahoo Japan

Arm¥3,564,842
43,996¥3,608,838¥3,403,820
198,141¥3,601,961¥851,756
24,342¥876,098¥202,338
6¥202,344

684,717279,283

176,286

684,717505,230
1,189,947

279,283
953,820
1,233,103–
9,710¥1,199,657–(5,762)¥1,227,341

SoftBank Vision Fundand Delta Fund

Brightstar

Total

Other

–
–
–

¥1,047,937
27,083¥1,075,020¥9,070,693
293,568¥9,364,261¥ 88,072
9,554¥ 97,626(31,380)

302,981(44,634)

1,367,253

176,286
43,722220,008(31,380)
62,32430,944

302,9811
302,982(44,634)
5,613(39,021)–(10,064)¥209,944––¥ 30,944(345,975)
20,502¥ (22,491)–
50,497
11,476¥¥¥

Reconciliations¥

Consolidated–(303,122)¥(303,122)¥9,158,765–¥9,158,765(21,835)(41,617)

1,303,801

1,367,253
1,570,710
2,937,963(21,835)
13,655(8,180)(41,617)
1,508(40,109)

1,303,801
1,585,873
2,889,674(345,975)
64,883¥2,656,871–(5,042)¥(13,222)–
1,577¥ (38,532)(345,975)
61,418¥2,605,117

For the fiscal year ended March 31, 2019
(Millions of yen)
Reportable segments

Net sales
Customers� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Intersegment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Segment income � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Reconciliation of segment income to adjusted EBITDA
Segment income � � � � � � � � � � � � � � � � � � � � � � � � � � �
Depreciation and amortization � � � � � � � � � � � � � � � �
EBITDA � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Gain relating to loss of control over subsidiaries � � � � �
Adjustments relating to investments in SoftBank Vision
Fund and Delta Fund
Unrealized gain (loss) on valuation of investments in
SoftBank Vision Fund and Delta Fund � � � � � � � � � � � �
Effect of foreign exchange translation � � � � � � � � � � � � �Other adjustments* � � � � � � � � � � � � � � � � � � � � � � � � � �
Adjusted EBITDA � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

SoftBank

SprintYahoo Japan

Arm¥3,703,014
44,731¥3,747,745¥3,533,834
193,010¥3,726,844¥923,539
23,898¥947,437¥ 202,616
83¥ 202,699

725,140

280,295

134,910725,140
487,246
1,212,386–

280,295
1,040,958
1,321,253–––
81¥1,212,467––
91,921¥1,413,174

SoftBank Vision Fundand Delta Fund

Brightstar

Total

Other

–
–
–

¥1,057,567
25,102¥1,082,669¥ 9,420,570
286,824¥ 9,707,394¥181,666
12,076¥193,742

133,966

1,256,641(23,396)2,507,556

134,91055,760190,670–

133,966
66,730200,696(176,261)

1,256,641
89
1,256,730–(23,396)
5,929(17,467)
–

–
–
2,918
¥193,588–––¥ 24,435(1,013,228)
11,443
172,154¥ 427,099–––(17,467)¥¥¥

Reconciliations¥

Consolidated–(298,900)¥(298,900)¥ 9,602,236–¥ 9,602,236(90,053)(63,572)

2,353,931

2,507,556
1,656,712
4,164,268(176,261)(90,053)
36,776(53,277)–(63,572)
699(62,873)–

2,353,931
1,694,187
4,048,118(176,261)(1,013,228)
11,443
267,074¥ 3,253,296––
16,315¥ (36,962)–––¥ (62,873)(1,013,228)
11,443283,389¥ 3,153,461

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

111

Corporate Information(Thousands of U�S� dollars)
Reportable segments

Net sales
Customers� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Intersegment � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Segment income � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Reconciliation of segment income to adjusted EBITDA
Segment income � � � � � � � � � � � � � � � � � � � � � � � � � � �
Depreciation and amortization � � � � � � � � � � � � � � � �
EBITDA � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Gain relating to loss of control over subsidiaries � � � � �
Adjustments relating to investments in SoftBank Vision
Fund and Delta Fund
Unrealized gain (loss) on valuation of investments in
SoftBank Vision Fund and Delta Fund � � � � � � � � � � � �
Effect of foreign exchange translation � � � � � � � � � � � � �Other adjustments* � � � � � � � � � � � � � � � � � � � � � � � � � �
Adjusted EBITDA � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

SoftBank

SprintYahoo Japan

Arm$33,363,492
403,018$33,766,510$31,839,211
1,738,985$33,578,196$8,320,921
215,316$8,536,237$ 1,825,534
748$ 1,826,282

6,533,381

2,525,408

1,215,515

6,533,381
4,389,999
10,923,380–

2,525,408
9,378,845
11,904,253
–

–
–
730
$10,924,110––
828,191$12,732,444

SoftBank Vision
Fund and
Delta Fund

Brightstar

Total

Other

–
–
–

$9,528,489
226,165$9,754,654$84,877,647
2,584,232$87,461,879$1,636,778
108,803$1,745,581

1,207,010

11,322,110(210,794)

22,592,630

1,215,515
502,388
1,717,903–

1,207,010
601,225
1,808,235(1,588,080)

11,322,110
802
11,322,912–(210,794)
53,419(157,375)–––
26,291$1,744,194–––
220,155(9,129,002)
103,099
1,551,077$ 3,848,086–––$(157,375)$$$

Reconciliations$

Consolidated–(2,693,035)$(2,693,035)$86,514,425–$86,514,425(811,362)(572,772)

21,208,496

22,592,630
14,926,678
37,519,308(1,588,080)(811,362)
331,345(480,017)–(572,772)
6,298(566,474)–

21,208,496
15,264,321
36,472,817(1,588,080)(9,129,002)
103,099
2,406,289$29,311,614––
146,996$ (333,021)–––$ (566,474)(9,129,002)
103,0992,553,285$28,412,119

Note:* “Other adjustments” in the Softbank Vision Fund and Delta Fund segment mainly consists of derivative gain and loss of ¥168,471 million ($1,517,894 thousand) (¥(8,902) million for the fiscal year ended March 31, 2018 and ¥177,373 million ($1,598,099 thousand) for the fiscal year ended March
31, 2019) in relation to collar transactions utilizing NVIDIA Corporation (“NVIDIA”) shares� The details are described in “b� Income and loss arising from the SoftBank Vision Fund and Delta Fund business Notes 1” in “(1) Income and loss arising from the SoftBank Vision Fund and Delta Fund businessincluded in the consolidated statement of income” under “Note 7� SoftBank Vision Fund and Delta Fund business�”(3) Geographical informationb� Non-current assets (excluding financial assets and deferred tax assets)a� Net sales to external customers

Japan � � � � � � � � � � � � � � � � � � � � � � � � � � � �
U�S� � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥4,445,648
4,042,923
670,194¥9,158,765¥4,658,924
4,210,267
733,045¥9,602,236$41,976,070
37,933,751
6,604,604$86,514,425

Sales are categorized based on the location of external customers�

Japan � � � � � � � � � � � � � � � � � � � � � � � � � � � �
U�S� � � � � � � � � � � � � � � � � � � � � � � � � � � � � �U�K� � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥ 3,981,969
7,578,443
3,539,810
64,960¥15,165,182¥ 4,151,534
8,220,717
3,406,626
105,524¥15,884,401$ 37,404,577
74,067,186
30,693,089
950,754$143,115,606

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

7. SoftBank Vision Fund and Delta Fund business(1) Income and loss arising from the SoftBank Vision Fund and Delta Fund business included in
the consolidated statement of incomea� Overview
Income and loss arising from the SoftBank Vision Fund and Delta Fund business in the consolidated
statement of income consist of income and loss arising from all entities, which are various entities
comprising SoftBank Vision Fund and Delta Fund, each General Partner, and SBIA as a manager of eachfund� Income and loss arising from SoftBank Vision Fund and Delta Fund attributable to Third-Party
Investors are accounted for as a component of non-operating income or loss, and presented as“Change in third-party interests in SoftBank Vision Fund and Delta Fund�” As a result, income before
income tax from the SoftBank Vision Fund and Delta Fund business includes income and loss attributable to the Company as a limited partner, management fees and performance fees to SBIA�Management Organization

Financial Section

Corporate Information

112b� Income and loss arising from the SoftBank Vision Fund and Delta Fund business
The following table shows income and loss arising from the SoftBank Vision Fund and Delta Fund business�
(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019–¥ 296,531$ 2,671,691

345,975

1,378,553

12,420,515–(365,325)(3,291,513)

6,120–
352,095(49,114)

4,522(11,443)
1,302,838(46,197)

40,742(103,098)
11,738,337(416,227)

302,981(7,801)(33)(8,902)

1,256,641(33,141)
68
177,373

11,322,110(298,594)
613
1,598,099(160,382)(248)¥ 125,615(586,152)(232)¥ 814,557(5,281,124)(2,090)$ 7,339,014

As ofMarch 31, 2018

Gain and loss on investments at SoftBank
Vision Fund and Delta Fund
Realized gain and loss on sales ofinvestments1 � � � � � � � � � � � � � � � � � � � �
Unrealized gain and loss on valuation of
investments2
Change in valuation for the
fiscal year� � � � � � � � � � � � � � � � � � � � �
Reclassified to realized gain and loss
recorded in the past fiscal year3 � � � �Interest and dividend income frominvestments � � � � � � � � � � � � � � � � � � � � �
Effect of foreign exchange translation4 �
Operating expenses � � � � � � � � � � � � � � � � �Operating income from SoftBank Vision
Fund and Delta Fund � � � � � � � � � � � � � �
Finance cost (interest expenses)5 � � � � � � � �
Foreign exchange gain and loss� � � � � � � � �
Derivative gain and loss6 � � � � � � � � � � � � � �Change in third-party interests in
SoftBank Vision Fund and Delta Fund � � �Other non-operating income and loss � � � �Income before income tax � � � � � � � � � � �¥

Notes:
1� SoftBank Vision Fund sold the shares in Flipkart Private Limited in August 2018 and the gain realized on the sale is ¥146,682 million($1,321,579 thousand)�
In January 2019, SoftBank Vision Fund executed an unwind of the collar transactions that had been entered into in November 2017
and thereafter, and utilized the NVIDIA shares for the repayment of borrowings� The gain of the NVIDIA shares used for the repayment
was treated as realized gain� In addition, NVIDIA shares not utilizing the collar transactions were all sold in January 2019� The total
amount of unrealized gain and loss is recorded as “Operating income from SoftBank Vision Fund and Delta Fund” in the fiscal year
ended March 31, 2018 and the amount of changes in fair value of NVIDIA shares in the fiscal year ended March 31, 2019 is recorded
as “Realized gain and loss on sales of an investment�” The gains and losses arising from the collar transactions are recorded as“Derivative gain and loss�”2� For investments transferred or agreed to be transferred from the Company to Softbank Vision Fund, gain and loss on thoseinvestments arising from difference between transferred amount and fair value as of each accounting period end (“gain and loss fromthe difference”) are presented as “Operating income from SoftBank Vision Fund and Delta Fund�” In the three-month period ended
March 31, 2019, certain investments were transferred or agreed to be transferred� In the nine-month period ended December 31,
2018, the gain and loss from the difference relating to those investments were presented as “Gain from financial instruments at
FVTPL” of ¥65,843 million ($593,234 thousand)� In the consolidated statement of income for the fiscal year ended March 31, 2019,
the gain and loss from the difference are presented as “Operating income from SoftBank Vision Fund and Delta Fund�”

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

3� This represents the unrealized gains and losses on valuation of NVIDIA shares recorded as “Operating income from SoftBank Vision
Fund and Delta Fund” in the fiscal year ended March 31, 2018, which are reclassified to realized gain on sales of investments due tothe disposal of the shares�
4� Unrealized gains and losses on investments are translated using the average exchange rate for the quarter in which the gains andlosses were recognized, while realized gains and losses on disposal of investments are translated using the average exchange rate forthe quarter in which the shares were disposed of� Foreign currency translation effects arise from the different foreign currency
exchange rates used for unrealized gains and losses and realized gains and losses�
5� The amount before elimination of inter-company transactions is ¥(33,643) million ($(303,117) thousand) for the fiscal year ended
March 31, 2019 (for the fiscal year ended March 31, 2018: ¥(7,895) million)�
6� Derivative gain arising from collar transactions whose underlying is NVIDIA shares�

Management Organization

Financial Sectionb� Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank Vision Fundand Delta Fund”) are as follows:(Millions of yen)(For reference purposes only)
Links with theconsolidated financial statements(2) Third-party interests in SoftBank Vision Fund and Delta Funda� Terms and conditions of contribution from/ distribution to Limited Partners
Contributions by the Limited Partners are classified as “Equity” and “Preferred Equity” depending on
the terms and conditions of distribution� Preferred Equity is prioritized over Equity with regard to
distribution and return of contribution�
Performance-based distributions attributed to Limited Partners, consisting of the Company and
Third Party Investors, are calculated using the net proceeds from the investment performance of
SoftBank Vision Fund and Delta fund� Those performance-based distributions and Performance fees
attributed to SBIA will be allocated using the method specified in the Limited Partnership Agreement�
The amount of performance-based distribution attributed to Limited Partners will be allocated to each
Limited Partner based on the proportion of their respective Equity contribution� The amount of
performance-based distribution is paid to each Limited Partner after Softbank Vision Fund and Delta
Fund receives cash through dividend, or disposition or monetization of investments�
Fixed distributions are defined as distributions of Preferred Equity holders which are calculated
equal to a 7% rate per annum based on their contribution� The fixed distributions are made every lastbusiness day of the months June and December�
In the following table, Third-party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-party Investors contributing Preferred Equity are defined as“Investors entitled to fixed distribution�”113

Corporate Information

Consolidated
statementof income(Negative
figures represent expenses)

Consolidated
statement ofcash flows(Negative
figures represent payments)–(586,152)

2,133,682––(267,400)(218,988)–(218,988)

58,840¥4,136,965––

Third-party interests(Total of current liabilities andnon-current liabilities)(Breakdown)

As of April 1, 2018 � � � � � � � � � � � � � � � � � �Contributions from third-party investors � �Changes in third-party interests� � � � � � � � �
Attributable to investors entitled to
fixed distribution � � � � � � � � � � � � � � � � �
Attributable to investors entitled toperformance-based distribution � � � � � �
Distribution to third-party investors � � � � � �
Fixed distributions � � � � � � � � � � � � � � � � �
Performance-based distributions1 � � � � �
Repayment to third-party investors � � � � � �
Exchange differences on translating
third-party interests2 � � � � � � � � � � � � � � � �
As of March 31, 20193 � � � � � � � � � � � � � � �¥1,844,679
2,133,682
586,152
102,712483,440(267,400)(91,694)(175,706)

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Management Organization(Thousands of U�S� dollars)(3) Management fees and performance fees to SBIA

(For reference purposes only)
Links with theconsolidated financial statements

Third-party interests(Total of current liabilities andnon-current liabilities)(Breakdown)

As of April 1, 2018 � � � � � � � � � � � � � � � � � �Contributions from third-party investors � �Changes in third-party interests� � � � � � � � �
Attributable to investors entitled to
fixed distribution � � � � � � � � � � � � � � � � �
Attributable to investors entitled toperformance-based distribution � � � � � �
Distribution to third-party investors � � � � � �
Fixed distributions � � � � � � � � � � � � � � � � �
Performance-based distributions1 � � � � �
Repayment to third-party investors � � � � � �
Exchange differences on translating
third-party interests2 � � � � � � � � � � � � � � � �
As of March 31, 20193 � � � � � � � � � � � � � � �$16,620,227
19,224,092
5,281,124

Consolidated
statementof income(Negative
figures represent expenses)

Consolidated
statement ofcash flows(Negative
figures represent payments)–(5,281,124)

19,224,092–

925,417
4,355,707(2,409,226)

Financial Section

Growth Strategy–(2,409,226)(1,973,043)–(1,973,043)

530,138$37,273,312––(826,146)(1,583,080)

Notes:
1� SBIA has a right to receive performance fees based on investment performance of SoftBank Vision Fund and Delta Fund� However, performancefees from monetization of investments are not paid to SBIA during the investment period of Softbank Vision Fund (in principle, until November
20, 2022), instead equivalent amounts to the performance fees attributable to SBIA are temporarily paid to the Limited Partners during theperiod, under the Limited Partnership Agreement� After the investment period, the equivalent amount is distributed to SBIA as a performancefee, which is given priority over performance-based distribution to Limited Partners from monetization of investments in post-investment
periods� The equivalent amounts to the performance fees attributable to SBIA, which were temporarily paid to the Limited Partners, is ¥(47,979)
million ($(432,282) thousand) for the fiscal year ended March 31, 2019�2� Exchange differences were included in “Exchange differences on translating foreign operations” in the consolidated statement of comprehensive income�3� Of third-party interests as of March 31, 2019, the amount attributable to investors entitled to fixed distribution is ¥2,268,138 million($20,435,517 thousand) and of this amount, the amount of unpaid fixed distributions is ¥29,677 million ($267,384 thousand)�

c� Uncalled committed capital from Third-Party Investors
Uncalled committed capital from Third-Party Investors as of March 31, 2019 is $30�7 billion�Corporate Information

114

Terms and conditions of management fees and performance fees to SBIA, included in income before income
tax from the SoftBank Vision Fund and Delta Fund business, are as follows�a� Management fees to SBIAManagement fees to SBIA are, in accordance with Limited Partnership Agreements, calculated bymultiplying 1% per annum by Equity contributions and paid to SBIA by each fund quarterly� A
clawback provision is attached to the management fees received, which is triggered under certain
conditions based on future investment performance�
b� Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is
calculated using the allocation method as specified in the Limited Partnership Agreement� SBIA will
receive the performance fees when Softbank Vision Fund and Delta Fund receive cash throughdisposition, dividend and monetization of an investment�
With regard to the performance fee receipt, the performance fees to SBIA from disposition andmonetization of investments are not paid to SBIA during the investment period of Softbank Vision
Fund (in principle, up to November 20, 2022), instead equivalent amount as the performance fees
attributable to SBIA is temporarily paid to the Limited Partners during the period, under the Limited
Partnership Agreement� After the investment period, the equivalent amount is paid to SBIA as aperformance fee deducting from the performance-based distributions to the Limited Partners inmonetization of investment in post-investment period� In addition, the performance fees received,
which is triggered under certain conditions based on future investment performance, are subject to aclawback provision�

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

8. Business combinations
For the fiscal year ended March 31, 2018

Management Organization

Financial Section

115

Corporate Informationd� Acquisition date
December 27, 2017e� Consideration transferred and the component(1) Fortressa� Overview of combination
The Company and Fortress entered into a definitive merger agreement under which the Company
acquired Fortress for $3�3 billion in cash in February 2017� The acquisition was completed on
December 27, 2017 upon satisfaction of all necessary conditions defined in the terms of the merger
agreement including approval of the transaction by Fortress shareholders on July 12, 2017 and receipt
of all necessary regulatory approvals� Each outstanding Fortress share was converted into the right toreceive $8�08 per share in cash, with merger proceeds to be distributed in accordance with payment
procedures outlined in Fortress’s Definitive Proxy dated June 7, 2017 and the merger agreement
incorporated therein� Actual payment amounted to $3�1 billion as a result of adjusting for the impact
of distributions and other factors after the date of the merger agreement�As a result of the transaction, the Company acquired all equity interests of Fortress and Fortressbecame a wholly-owned subsidiary of the Company�b� Purpose of acquisition
The Company expects that the leadership, broad-based expertise and the world-class investment
platform of Fortress will foster the Company’s expansion of its group capabilities and acceleration of
our SoftBank 2�0 transformation strategy of bold, disciplined investment and world class execution todrive sustainable long-term growth�c� Summary of Fortress(a) Name

Fortress Investment Group LLC(b) Address

1345 Avenue of the Americas, New York, NY(c) Name and title ofrepresentative

Peter L� Briger, Jr�, Principal and Co-Chief Executive Officer
Wesley R� Edens, Co-Founder, Principal and Co-Chief Executive Officer
Randal A� Nardone, Co-Founder and Principal(d) Nature of business

Alternative investment management business(e) Date of incorporation

1998(f) Consolidated net sales $1,163,806 thousand(for the fiscal year ended December 31, 2016 under US GAAP)(Millions of yen)
Acquisition date
(December 27, 2017)

Payment by cash � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Payment not included in consideration transferred* � � � � � � � � � � � � � � � � � � � � � � �
Total consideration transferred � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �A¥353,966(58,128)¥295,838

Acquisition-related costs of ¥6,123 million arising from the business combination are recognized in“Other operating loss�”Note:* Payment not included in consideration transferred is the payment for a transaction, separate from the business combination, that
remunerates employees and former owners of Fortress� For the payment, continuing employment is a condition� The Company
recognized “Other current assets” amounting to ¥16,954 million and “Other non-current assets” amounting to ¥41,174 million inaccordance with the employment period defined in the condition�

f� Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition date1(Millions of yen)
Acquisition date
(December 27, 2017)

Cash and cash equivalents � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Trade and other receivables � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other current assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Investments accounted for using the equity method � � � � � � � � � � � � � � � � � �Intangible assets2 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Non-current assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥ 45,572
46,691
6,472
104,087
176,690
30,621
410,133

Current liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Non-current liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Net assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � B
Non-controlling interests3 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � C
Goodwill4 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � A–(B–C)

62,39751,324
113,721296,412
14,849¥ 14,275

The above amount is translated at the exchange rate (USD = JPY113�41) as of the acquisition date�SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Notes:
1� Adjustment of the provisional amount
Consideration transferred is allocated to acquired assets and assumed liabilities based on the fair value on the acquisition date� Allocation of theconsideration was completed during the three-month period ended December 31, 2018� Adjustment from the provisional amount is immaterial,
and there is no change in the amount of goodwill�2� Intangible assets
The components of intangible assets are as follows: the estimated useful lives are 3 years for software, from 1�5 to 10 years for management
contracts, and 10 years for trademarks� The management contracts reflect excess earnings in the future expected from the agreements which
Fortress entered into regarding the management of assets under their funds�

(Millions of yen)
Acquisition date
(December 27, 2017)

Software � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Management contracts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Trademarks � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

¥

1,762
128,323
5,103
41,502¥176,690

3� Non-controlling interests
Non-controlling interests are from subsidiaries of Fortress, and they are measured based on the proportionate interests after the acquisition in
the identifiable net assets of the acquiree at the acquisition date�4� Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy between the Company and the acquiree�g� Payment for acquisition of control over subsidiaries(Millions of yen)
Fiscal year ended
March 31, 2018

Payment for the acquisition by cash � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Cash and cash equivalents held by the acquiree at the time of acquisitionof control � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Payment for the acquisition of control over the subsidiary by cash � � � � � � � � � � � � �¥(295,838)
45,572¥(250,266)h� Sales and net loss of the acquiree
The amounts of the acquiree’s sales and net loss before elimination of inter-company transactions after
the acquisition date, which are recorded in the consolidated statement of income for the fiscal year
ended March 31, 2018, are ¥20,525 million and ¥15,201 million, respectively� In addition, amortization expenses related to intangible assets recognized on the acquisition date are included in the
aforementioned net loss�

Management Organization

Financial Section

Corporate Information

116i� Collateral
Based on a term loan agreement of $1�4 billion which was entered into to finance this acquisition, theequity interests of Fortress and four wholly-owned subsidiaries within this acquisition structure arepledged as collateral�

(2) The Japan Net Bank, Limiteda� Overview of combination
The Board of Directors meeting of Yahoo Japan Corporation held on August 1, 2017 resolved tomodify the shareholders agreement with Sumitomo Mitsui Banking Corporation regarding The JapanNet Bank, Limited� This resulted in Yahoo Japan Corporation entering into a modified agreement with
Sumitomo Mitsui Banking Corporation� Along with such modification, the Company consolidated The
Japan Net Bank, Limited by appointing the majority of The Japan Net Bank, Limited’s directors, througha resolution in an Extraordinary Meeting of the Shareholders of The Japan Net Bank, Limited held on
February 1, 2018�
In the Yahoo Japan segment, since its commencement of new strategies in the Commerce Businessin October 2013, transaction volume has rapidly increased by means of various measures, such as
waiving store tenant fees, point rewards measures, and the commencement of the Credit Cardbusiness� It is necessary to further strengthen its financial and payment business in order to revitalize
the Commerce Business going forward� The ecosystem of its services in the Yahoo Japan segment isreinforced through the consolidation of The Japan Net Bank, Limited�
In addition, Yahoo Japan Corporation leads the management of The Japan Net Bank, Limited
through the consolidation and utilizes the customer base and multi-big data that Yahoo Group has
fostered thus far to provide high value-added financial services for The Japan Net Bank, Limited
customers�
The voting rights ratio in The Japan Net Bank, Limited held by the Company remains the same as
before at 41�2% and the Company did not hold a majority of the voting rights� However, theCompany made The Japan Net Bank, Limited its consolidated subsidiary by appointing the majority of
The Japan Net Bank, Limited’s directors through a resolution in an Extraordinary Meeting of the
Shareholders’ of The Japan Net Bank, Limited held on February 1, 2018�b� Summary of acquiree
Name
The Japan Net Bank, Limited
Nature of businessBanking businessc� Acquisition dateFebruary 1, 2018

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategyd� Consideration transferred and the component

Management Organization

Financial Section

117

Corporate Informationf� Proceeds from acquisition of control over subsidiaries(Millions of yen)

(Millions of yen)

Acquisition date(February 1, 2018)

Fiscal year ended
March 31, 2018

Fair value of equity interest in The Japan Net Bank, Limited already held at the timeof the acquisition � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total consideration transferred � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥26,224¥26,224

As a result of the revaluation of equity interests already held at the time of the acquisition ofcontrol by the Company in The Japan Net Bank, Limited at fair value on the acquisition date, theCompany recognized a gain on the acquisition of ¥372 million for the fiscal year ended March 31,2018� This gain is included in “Gain from remeasurement relating to business combination” in the
consolidated statement of income�

Cash and cash equivalents held by the acquiree at the time of acquisitionof control � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Proceeds in cash from the acquisitionof control over the subsidiary � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥337,224¥337,224g� Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income after the acquisition date are immaterial�(3) Consolidated net sales and consolidated net income assuming that the businesscombinations were completed at the beginning of the fiscal yeare� Fair value of assets and liabilities, and non-controlling interests on the acquisition date(Millions of yen)
Acquisition date(February 1, 2018)

Cash and cash equivalents � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other current assets1 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Investment securities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other non-current assets1 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥337,224
133,782
244,044
103,746
818,796

Deposits for banking business (current) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other current liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Non-current liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Net assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � A
Non-controlling interests2 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � B
Net amount � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � A–B

711,317
17,27826,277754,872
63,92437,700¥ 26,224

Notes:
1� The amounts are mainly loans�2� Non-controlling interests
Non-controlling interests are measured based on the proportionate interests in the fair value of the identifiable net assets of the acquiree�

For the fiscal year ended March 31, 2018
The following is pro forma information (unaudited) of the consolidated performance of the Company for the
fiscal year ended March 31, 2018, assuming that the business combinations of Fortress and The Japan Net
Bank, Limited were completed and control was acquired as of April 1, 2017�
(Millions of yen)
Fiscal year ended
March 31, 2018

Sales (pro forma)� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Net income (pro forma)� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥9,277,296¥1,253,082

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

9. Cash and cash equivalents

118

Corporate Information

The components of other financial assets are as follows:(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥2,343,116¥2,387,533$21,511,244

493,108
268,345
230,081¥3,334,650

802,797
532,509
135,679¥3,858,518

7,233,057
4,797,811
1,222,443$34,764,555

Notes:
1� A subsidiary operating a banking business is obliged to deposit certain amounts, which is determined by a fixed ratio against the deposits it
receives from its customers (“the legal reserve requirement”), in the Bank of Japan in accordance with the Act on Reserve Requirement System
in Japan� As of March 31, 2019, cash and cash equivalents include ¥237,018 million ($2,135,490 thousand) (as of March 31, 2018: ¥284,234
million) of deposits at the Bank of Japan, which is more than the legal reserve requirement�
2� Cash and demand deposits as of March 31, 2019 includes money in trust of ¥15,956 million ($143,761 thousand) to set up for the purchase oftreasury stocks by SoftBank Group Corp� (as of March 31, 2018: none)�

The amount of cash and cash equivalents pledged as collateral for interest-bearing debt or other is
described in “(5) Assets pledged as collateral” under “Note 23� Interest-bearing debt�”10. Trade and other receivables
The components of trade and other receivables are as follows:

Trade receivables � � � � � � � � � � � � � � � � � � � � � � � � �Installment receivables1 � � � � � � � � � � � � � � � � � � � �
Deposits for banking business2 � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Allowance for doubtful accounts � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Financial Section

11. Other financial assets

The components of cash and cash equivalents are as follows:

Cash and demand deposits1,2 � � � � � � � � � � � � � � �Time deposits(maturities of less than three months) � � � � � � � �
MMF� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Management Organization(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥1,562,657
520,619
107,483
180,997(57,403)¥2,314,353¥1,702,466
435,059
53,772
209,811(61,131)¥2,339,977$15,338,913
3,919,804
484,476
1,890,359(550,779)$21,082,773

Notes:
1� Installment receivables represent receivables arising from the Company’s advance payments to dealers on behalf of its customers who chose topurchase mobile handsets by installments in indirect sales� The amounts are charged to customers together with telecommunication service fees
over the periods of installment payments�
The period of installment payments for the receivables above is mainly within 24 – 48 months� As such, the amounts due within a year after
the period end date are included in “Trade and other receivables,” and those after one year are included in “Other financial assets (non-current)�”2� The amount is related to The Japan Net Bank, Limited�

As ofMarch 31, 2018

Current
Marketable securities � � � � � � � � � � � � � � � � � � � �Time deposits(maturities of more than three months) � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Non-current
Installment receivables1 � � � � � � � � � � � � � � � � � � �
Loan receivables2 � � � � � � � � � � � � � � � � � � � � � � �Advance payments3 � � � � � � � � � � � � � � � � � � � � �
Deposits for banking business4 � � � � � � � � � � � � �Lease and guarantee deposits � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Allowance for doubtful accounts � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019

¥137,323¥

84,153$758,203289,926
92,195¥519,444

614
118,709¥ 203,476

5,532
1,069,547$ 1,833,282

293,679
46,684–
106,880
45,943
215,651(32,445)¥676,392

414,593
211,280
166,485
147,977
53,332
231,106(38,917)¥1,185,856

3,735,409
1,903,595
1,500,000
1,333,246
480,5122,082,223(350,635)$10,684,350

Notes:
1� Installment receivables are described in “Note 10� Trade and other receivables�”2� Amount includes ¥108,992 million ($981,998 thousand) of convertible promissory note issued by WeWork Companies Inc� (“WeWork”) as ofMarch 31, 2019�3� Advance payments as of March 31, 2019 are related to the purchase of WeWork shares�
4� The amount is related to The Japan Net Bank, Limited�

12. Inventories
The components of inventories are as follows:

Merchandise and finished products � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥333,339
28,702¥362,041¥346,378
18,882¥365,260$3,120,804
170,123$3,290,927

The amount of inventories pledged as collateral for interest-bearing debt or other is described in “(5)Assets pledged as collateral” under “Note 23� Interest-bearing debt�”SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy(Millions of yen)(Thousands ofU�S� dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥39,821¥33,906$305,487

The amount of write-downs of inventories recorded as “Other operating loss” is included in the
consolidated statement of income for the fiscal year ended March 31, 2018� The details are described in“Notes 1�” under “Note 40� Other operating loss�”

13. Other current assets and other non-current assets
The components of other current assets and other non-current assets are as follows:

Current
Tax receivable1 � � � � � � � � � � � � � � � � � � � � � � � � �Prepaid expense � � � � � � � � � � � � � � � � � � � � � � �Contract assets2 � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Non-current
Long-term prepaid expense � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Financial Section

Corporate Information

119

14. Assets classified as held for saleWrite-downs of inventories recognized as an expense during the fiscal year are as follows:

Write-downs of inventories � � � � � � � � � � � � � � � �Management Organization(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥145,009
168,051–
31,314¥344,374¥498,026
123,929
113,209
31,392¥766,556$4,487,125
1,116,578
1,019,993
282,837$6,906,533

207,845
13,387¥221,232

174,811
41,148¥215,959

1,575,016
370,737$1,945,753

Notes:
1� Tax receivable as of March 31, 2019 includes withholding income tax of ¥422,648 million ($3,807,983 thousand) related to dividends within thegroup companies� The withholding income tax will be refunded in July 2019�2� Contract assets are recognized as assets in accordance with the adoption of IFRS 15, “Revenue from Contracts with Customers�”On June 10, 2016, the Company entered into a variable prepaid forward contract to sell Alibaba shares withMandatory Exchangeable Trust, and received proceeds of ¥578,436 million ($5�4 billion) as advances on thesale� The Company has the option to settle the variable prepaid forward contract by either delivering cash, a
combination of cash and Alibaba shares, or Alibaba shares�
It is probable that the Company settles the variable prepaid forward contract with Alibaba shares, andtherefore, Alibaba shares of ¥224,201 million ($2,020,011 thousand) related to the settlement werereclassified from “Investments accounted for using the equity method” to “Assets classified as held for sale”
in the consolidated statement of financial position as of March 31, 2019� The number of Alibaba shares soldthrough the variable prepaid forward contract is determined by the share price trend during the Observation
Period, and the number of Alibaba shares classified as “Assets classified as held for sale” is calculated by theshare price of Alibaba shares as of March 31, 2019� The assets classified as held for sale are measured by the
carrying amount as the fair value after deducting expenses arising from the sale (expected sale price) is greaterthan the carrying amount�The variable prepaid forward contract was subsequently settled with Alibaba shares on June 3, 2019� The
details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract” under“Note 23� Interest-bearing debt�”SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

120

Corporate Information

15.Property, plant and equipment
Changes in property, plant and equipment at historical cost, are as follows:(Millions of yen)
Historical cost

Buildings andstructures

Telecommunications
equipment

Furniture, fixtures,and equipment

Land

Construction inprogress

As of April 1, 2017 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Purchases � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Business combinations� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Transfer of accounts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2018 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Purchases � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Business combinations� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Transfer of accounts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥452,759
7,517
389(20,337)
9,593(10,384)(2,004)
437,533
26,773
2,749(12,771)
19,0097,966(7,244)¥474,015¥5,397,410
9,565
4,616
(224,347)
316,719(115,178)
7,639
5,396,424
14,748–(214,222)
500,669
92,323
7,189¥5,797,131¥1,202,815
311,9892,213(622,494)
612,535(60,989)(1,063)
1,445,006
296,325344(632,811)
609,299
50,837(1,860)¥1,767,140

Other

Total

¥ 99,913
393–(11,058)
90(1,030)–88,308
–
114
(992)
55
825
2
¥ 88,312¥ 305,304
461,677641(44,955)(415,525)(10,596)(1,665)294,881
700,902100(48,940)(563,406)
9,587(5,586)¥ 387,538¥ 49,747
36,081
2,648(19,011)
38,276(3,129)(994)
103,618
44,1502,491(4,144)
8,002
(409)
(586)
¥153,122¥7,507,948
827,222
10,507(942,202)
561,688(201,306)
1,913
7,765,770
1,082,898
5,798(913,880)
573,628
161,129(8,085)¥8,667,258

Historical cost

Buildings andstructures

Telecommunications
equipment

Furniture, fixtures,and equipment

Land

Construction inprogress

As of March 31, 2018 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Purchases � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Business combinations� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Transfer of accounts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �$3,942,094
241,220
24,768(115,064)
171,267
71,772(65,267)$4,270,790$48,620,813
132,877–(1,930,102)
4,510,937
831,81464,772$52,231,111

Other

Total

$13,019,245
2,669,835
3,100(5,701,514)
5,489,675
458,032(16,758)$15,921,615$795,639–
1,027(8,938)
496
7,433
18
$795,675$ 2,656,825
6,315,001
901(440,940)(5,076,187)
86,377(50,329)$ 3,491,648$ 933,579
397,784
22,443(37,337)
72,097(3,685)(5,280)$1,379,601$69,968,195
9,756,717
52,239(8,233,895)
5,168,285
1,451,743(72,844)$78,090,440(Thousands of U�S� dollars)

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

121

Corporate Information

Changes in the accumulated depreciation and impairment losses of property, plant and equipment are as follows:(Millions of yen)
Accumulated depreciation and impairment losses

Buildings andstructures

Telecommunications
equipment

Furniture, fixtures,and equipment

Land

Construction inprogress

As of April 1, 2017 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Depreciation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Impairment loss � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Transfer of accounts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2018 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Depreciation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Impairment loss � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Transfer of accounts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥(189,698)(30,738)
–
8,083
(102)
4,680
2,137
(205,638)(30,740)
–
8,854
(7)
(3,778)9,080¥(222,229)¥(2,743,314)(562,340)–
193,727
198
62,986(2,583)(3,051,326)(565,809)–
162,76027(52,406)
3,011¥(3,503,743)¥(575,085)(495,815)(441)
419,050
4,274
23,647(245)(624,615)(577,338)–
386,9623,390(19,832)
1,474¥(829,959)

Other

Total

¥(8)
–
–
–
–
–
–
(8)
–
–
–
–
–
–
¥(8)

¥(3,127)
–
–
8
1,999
–
–
(1,120)
–
–
26
964
–
–
¥ (130)¥(19,462)(11,693)
(211)
4,140
(905)
1,352
563
(26,216)(14,995)–
3,779(2,116)256(1,193)¥(40,485)¥(3,530,694)(1,100,586)(652)
625,008
5,464
92,665(128)(3,908,923)(1,188,882)–
562,3812,258(75,760)
12,372¥(4,596,554)

Accumulated depreciation and impairment losses

Buildings andstructures

Telecommunications
equipment

Furniture, fixtures,and equipment

Land

Construction inprogress$(1,852,762)(276,962)–
79,773(63)(34,039)
81,810$(2,002,243)$(27,491,900)(5,097,838)–
1,466,439
243(472,169)
27,129$(31,568,096)

Other

Total

$(5,627,669)(5,201,712)–
3,486,458
30,544(178,683)
13,280$(7,477,782)

$(72)
–
–
–
–
–
–
$(72)

$(10,091)
–
–
234
8,686
–
–
$ (1,171)$(236,201)(135,102)–
34,048(19,066)
2,307(10,749)$(364,763)$(35,218,695)(10,711,614)–
5,066,952
20,344(682,584)
111,470$(41,414,127)(Thousands of U�S� dollars)

As of March 31, 2018 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Depreciation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Impairment loss � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Transfer of accounts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �SoftBank Group Corp.
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122

Corporate Information

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

Buildings andstructures

Telecommunications
equipment

Furniture, fixtures,and equipment

Land

Construction inprogress

As of March 31, 2018 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥231,895¥251,786¥2,345,098¥2,293,388¥820,391¥937,181

Other

Total

¥88,300¥88,304¥293,761¥387,408¥77,402¥112,637¥3,856,847¥4,070,704

Carrying amounts

Buildings andstructures

Telecommunications
equipment

Furniture, fixtures,and equipment

Land

Construction inprogress

As of March 31, 2019 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �$2,268,547$20,663,015

Other

Total

$8,443,833$795,603$3,490,477$1,014,838$36,676,313(Thousands of U�S� dollars)

The amount of “Transfer of accounts” in “Furniture, fixtures, and equipment” for the fiscal year ended March 31, 2018 and the fiscal year ended March 31, 2019 is mainly due to the transfer of leased devices from
“Inventories” under current assets�
Impairment loss is included in “Other operating loss” in the consolidated statement of income� The details are described in “Note 40� Other operating loss�”The carrying amounts of finance lease assets included in property, plant and equipment are as follows:

As ofMarch 31, 2018

Buildings and structures � � � � � � � � � � � � � � � � � � �
Telecommunications equipment � � � � � � � � � � � � �
Furniture, fixtures, and equipment � � � � � � � � � � �Construction in progress � � � � � � � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥20,822
1,125,724
42,105–
17,725¥1,206,376(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019¥33,616
1,002,889
43,537
3
15,446¥1,095,491$ 302,874
9,035,850
392,26127
139,165$9,870,177

Finance lease obligations of the Company are pledged through the lessor’s retaining the property right of lease assets�
The amount of property, plant and equipment pledged as collateral for interest-bearing debt or other is described in “(5) Assets pledged as collateral” under “Note 23� Interest-bearing debt�”Assets with limited property rights due to installment purchases are described in “(6) Assets with limited property rights” under “Note 23� Interest-bearing debt�”SoftBank Group Corp.
ANNUAL REPORT 2019

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123

Corporate Information

16. Goodwill and intangible assets
Changes in goodwill and intangible assets at historical cost are as follows:(Millions of yen)
Intangible assets with indefinite useful lives
Historical cost

As of April 1, 2017 � � � � � � � � � � � � � � � �
Purchases � � � � � � � � � � � � � � � � � � � � �Internal development � � � � � � � � � � � �Business combinations � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � �Transfer of accounts � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2018 � � � � � � � � � � � � � �
Purchases � � � � � � � � � � � � � � � � � � � � �Internal development � � � � � � � � � � � �Business combinations � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � �Transfer of accounts � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � �Goodwill

FCC licenses

Trademarks¥4,221,598 ¥4,100,651–
11,788––27,848
16,629––––144,133(221,558)(12,337)
53,087
4,381,242
3,960,597–
17,942––75,342–––––(54,842)
177,0881,494(501)¥4,403,236 ¥4,155,126¥714,257–––––(35,994)(5)
678,258––
197––
29,0485¥707,508

Other

Intangible assets with finite useful lives
Software¥– ¥1,648,242
3
34,024–
6,574
52,1507,860(39,632)(169,529)
5
233,794(300)(22,781)–(37)
12,226
1,738,147–
35,368
–
4,052
–
439
–
(144,908)–
205,747537
17,891–177¥ 12,763 ¥1,856,913

Customer
relationships

Spectrum
migration costs¥545,195 ¥1,129,621
–
–
–
–
2,815
2,769
–
(40,320)––
34,281(30,722)5,431(7)
587,722
1,061,341
–
–
–
–
9,822
7,415
–
–
–
–
(15,253)
27,642–(985)¥582,291 ¥1,095,413¥117,233––––
28,845––
146,078––––
43,402––¥189,480

Technologies

Management
contracts¥–––
128,323––(8,113)–
120,210
–
–
–
–
–
5,375
–
¥125,585

Favorable lease
contracts

Trademarks¥163,485–––(17,750)(539)(7,837)–
137,359–––(5,290)–6,059–¥138,128¥64,828
17
–
5,137
(21)
3
(3,042)
6
66,928
7
–
240
(34)
14
2,518
(50)
¥69,623

Other

Total

¥209,573 ¥8,693,085
220,486
266,318
26,35832,9325,357
221,040(2,140)(269,392)(257,276)
4,832(4,385)(300,451)(1,378)57,097
196,595
8,705,461
231,478
284,795
60,10064,152547
18,660(14,570)(164,802)(264,757)(15,594)2,220
253,125490(864)¥212,103 ¥9,144,933(Thousands of U�S� dollars)

Intangible assets with indefinite useful lives
Historical cost

Goodwill

FCC licenses

Trademarks

As of March 31, 2018 � � � � � � � � � � � � � � $39,474,205 $35,684,269 $6,110,983
Purchases � � � � � � � � � � � � � � � � � � � � �–161,654–
Internal development � � � � � � � � � � � �–––Business combinations � � � � � � � � � � � �678,818–
1,775
Disposals � � � � � � � � � � � � � � � � � � � � � �–––Transfer of accounts � � � � � � � � � � � � �–––
Exchange differences � � � � � � � � � � � � �(494,117) 1,595,531
261,717
Other � � � � � � � � � � � � � � � � � � � � � � � �13,461(4,514)45
As of March 31, 2019 � � � � � � � � � � � � � � $39,672,367 $37,436,940 $6,374,520

Intangible assets with finite useful lives
Spectrum
migration costs

Management
contracts

Favorable lease
contracts

Trademarks$110,154 $ 15,660,393 $5,295,270 $9,562,492 $1,316,136–
318,658––––
36,508
–
–
–
–
3,955
88,49466,808–– (1,305,595)––––
1,853,744––
391,045
4,838
161,195(137,427)
249,050––
1,595–(8,875)–$114,992 $ 16,730,453 $5,246,337 $9,869,475 $1,707,181$1,083,071
–
–
–
–
–
48,427–$1,131,498$1,237,580–––(47,662)–
54,591–$1,244,509$603,009 $1,771,286 $78,434,643
63
2,085,575
2,565,950–
541,490
577,998
2,162
4,928
168,122(306)(131,273) (1,484,836)
126 (2,385,413)(140,498)
22,68720,0022,280,611
(450)
4,415
(7,784)$627,291 $1,911,010 $82,394,206

Other

SoftwareTechnologies

Customer
relationships

Other

Total

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

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Financial Section

124

Corporate Information

Changes in the accumulated amortization and impairment losses of goodwill and intangible assets are as follows:(Millions of yen)
Intangible assets with indefinite useful lives
Accumulated amortization and impairment losses

Goodwill

FCC licenses

Trademarks

As of April 1, 2017 � � � � � � � � � � � � � � � �
Amortization � � � � � � � � � � � � � � � � � � �
Impairment loss � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2018 � � � � � � � � � � � � � �
Amortization � � � � � � � � � � � � � � � � � � �
Impairment loss � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � �¥(46,134)–(43,128)
–
4,487
6,086
(78,689)–––(3,080)–¥(81,769)

¥–
–
–
–
–
–
–
–
–
–
–
–
¥–

¥(11,226)–(2,501)–
347–(13,380)
–
–
–
(267)
–
¥(13,647)

Intangible assets with finite useful lives
SoftwareTechnologies

Customer
relationships

Spectrum
migration costs¥– ¥ (925,308)–(242,904)–(510)–
157,312–
12,251–
913–(998,246)–(248,999)–––
136,247–(9,676)–3,640¥– ¥(1,117,034)¥ (22,301)(42,098)––(1,720)–(66,119)(42,175)––
1,884(3,997)¥(110,407)¥(680,815)(116,815)(3,706)40,32031,956
163(728,897)(90,814)––(25,418)(1,256)¥(846,385)¥(13,419)(6,793)––––(20,212)(9,746)––––¥(29,958)

Other

Management
contracts¥–(4,997)––120–(4,877)(25,759)
–
–
(226)
–
¥(30,862)

Favorable lease
contracts

Trademarks¥(58,731)––
17,7492,803(9,902)(48,081)––5,290(2,154)(11,865)¥(56,810)¥ (7,296)(2,693)–21392
5(9,571)(3,085)
–
29
(320)
50
¥(12,897)

Other

Total

¥(27,350) ¥(1,746,446)(5,321)(421,621)–(6,717)448
215,850(140)
46,009835(7,986)(31,528) (1,920,911)(4,790)(425,368)––
272
141,838
109(36,068)
1,199(12,229)¥(34,738) ¥(2,252,738)(Thousands of U�S� dollars)

Intangible assets with indefinite useful lives
Accumulated amortization and impairment losses

Goodwill

FCC licenses

Trademarks

As of March 31, 2018 � � � � � � � � � � � � � �
Amortization � � � � � � � � � � � � � � � � � � �
Impairment loss � � � � � � � � � � � � � � � � �
Disposals � � � � � � � � � � � � � � � � � � � � � �
Exchange differences � � � � � � � � � � � � �Other � � � � � � � � � � � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � �$(708,974)–––(27,750)–$(736,724)

$–
–
–
–
–
–
$–

$(120,551)–––(2,406)–$(122,957)

Other

Intangible assets with finite useful lives
Software$– $ (8,994,018)–(2,243,436)–––
1,227,561–(87,179)–
32,796$– $(10,064,276)

Customer
relationships

Spectrum
migration costs

Management
contracts

Favorable lease
contracts

Trademarks$(595,721) $(6,567,231)(379,989)(818,218)––––
16,975(229,012)(36,012)(11,316)$(994,747) $(7,625,777)$(182,106)(87,810)––––$(269,916)$ (43,941)(232,084)––(2,036)–$(278,061)$(433,201)––
47,662(19,407)(106,902)$(511,848)$ (86,233)(27,795)–
261(2,883)450$(116,200)

Technologies

Other

Total

$(284,062) $(17,307,064)(43,157) (3,832,489)
–
–
2,451
1,277,935
982(324,966)
10,803(110,181)$(312,983) $(20,296,765)

SoftBank Group Corp.
ANNUAL REPORT 2019

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125

Corporate Information

The carrying amounts of goodwill and intangible assets are as follows:(Millions of yen)
Intangible assets with indefinite useful lives
Carrying amounts

As of March 31, 2018 � � � � � � � � � � � � � �
As of March 31, 2019 � � � � � � � � � � � � � �Intangible assets with finite useful lives

Goodwill

FCC licenses

Trademarks

Other

SoftwareTechnologies

Customer
relationships

Spectrum
migration costs

Management
contracts

Favorable lease
contracts

Trademarks

Other

Total

¥4,302,553¥4,321,467¥3,960,597¥4,155,126¥664,878¥693,861¥12,226¥12,763¥739,901¥739,879¥521,603¥471,884¥332,444¥249,028¥125,866¥159,522¥115,333¥94,723¥89,278¥81,318¥57,357¥56,726¥165,067¥177,365¥6,784,550¥6,892,195(Thousands of U�S� dollars)
Intangible assets with indefinite useful lives
Carrying amounts

As of March 31, 2019 � � � � � � � � � � � � � �Intangible assets with finite useful lives

Goodwill

FCC licenses

Trademarks

Other

SoftwareTechnologies

Customer
relationships

Spectrum
migration costs

Management
contracts

Favorable lease
contracts

Trademarks

Other

Total

$38,935,643$37,436,940$6,251,563$114,992$6,666,177$4,251,590$2,243,698$1,437,265$853,437$732,661$511,091$1,598,027$62,097,441“FCC licenses” are licenses to use a specific frequency spectrum granted by the U�S� Federal Communications
Commission (“FCC”)� As long as the Company acts within the requirements of regulatory authorities, therenewal and extension of FCC licenses are reasonably certain at minimal cost� Therefore, it is determined that
FCC licenses have indefinite useful lives�
The Company determined that the “Sprint” and “Boost Mobile” trademarks have indefinite useful lives as
they can be legally utilized continuously as long as the business continues and management’s current plans are
to offer services under these trademarks for the foreseeable future�Technologies reflect excessive earning capacity in the future expected from technologies of the acquireethat had been already developed, or was already well-advanced in development, at the time of the businesscombinations�Customer relationships reflect excessive earning capacity in the future expected from the existing customersof the acquiree at the time of the business combinations�
Spectrum migration costs are the amounts that the Company incurred in connection with the migration ofexisting users from the frequency spectrum, which SoftBank Corp� acquired, to the other frequency spectrumin accordance with the termination promotion measures prescribed in the Radio Act�Management contracts reflect excess earnings in the future expected from the agreements which Fortressentered into regarding the management of assets under their funds�
Favorable lease contracts are recognized as intangible assets based on the estimated fair value of thefavorable portion of future cash flows if, at the time of business combinations, the terms of operating lease
contracts in which the acquiree is the lessee are favorable compared to market terms at acquisition date�
Reversal of favorable lease contracts is recognized as operating lease payments�
Amortization is included in “Cost of sales,” “Selling, general and administrative expenses,” and “Operating
income from SoftBank Vision Fund and Delta Fund” in the consolidated statement of income�Impairment losses are included in “Other operating loss” in the consolidated statement of income� The
details are described in “Note 40� Other operating loss�”The amount of “Other” included in “FCC licenses” for the fiscal year ended March 31, 2018 and the fiscal
year ended March 31, 2019 is recognized due to exchange of certain spectrum with other carriers� The details
are described in “Note 40� Other operating loss�”
Increase due to “Business combinations” is as follows:
For the fiscal year ended March 31, 2018
As a result of consolidating Fortress as a subsidiary in December 2017, the Company recognized goodwill of¥14,275 million, software of ¥1,762 million, management contracts of approximately ¥128,323 million, andtrademarks of ¥5,103 million� The details are described in “(2) Fortress” under “Note 8� Businesscombinations�”SoftBank Group Corp.
ANNUAL REPORT 2019

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Growth Strategy

The carrying amount of internally-generated intangible assets included in the intangible assets is as follows:

Software � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥61,667¥84,347$759,951

The carrying amounts of finance leased assets included in the intangible assets are as follows:

Software � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥313,955¥324,232$2,921,272

Finance lease obligations of the Company are pledged through the lessor’s retaining the property right oflease assets�
The intangible assets with limited property rights due to installment purchase are described in “(6) Assets
with limited property rights” under “Note 23� Interest-bearing debt�”Research and development costs included in “Cost of sales” and “Selling, general and administrative
expenses” are as follows:

Research and development costs� � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥136,861¥166,969$1,504,361

Goodwill acquired as a part of business combinations is allocated to cash-generating units or cashgenerating unit groups that are expected to benefit from the synergies arising from the combination�
Amounts of goodwill and intangible assets with indefinite useful lives allocated to cash-generating units
or cash-generating unit groups are as follows:

Management Organization

Financial Section

Corporate Information

126

Goodwill(Millions of yen)(Thousands ofU�S� dollars)

Cash-generating unit orCash-generating unit groups

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

SoftBank1 � � � � � � � �
Sprint � � � � � � � � � � �Yahoo2 � � � � � � � � � �Marketing solution � �Shopping � � � � � � � �Ikyu � � � � � � � � � � � �
Settlement finance �
Other � � � � � � � � � � �
Subtotal � � � � � � �Brightstar � � � � � � � �Arm � � � � � � � � � � � �Other � � � � � � � � � � �¥ 909,463
313,942
16,5199,821
56,84772,04420,891
1,524
177,646
16,6092,860,738
24,155¥ 920,479
329,389
16,51923,10858,136
72,04420,891
1,524
192,222
18,831
2,833,051
27,495$ 8,293,351
2,967,736
148,833
208,199523,795
649,104
188,224
13,731
1,731,886
169,664
25,525,282
247,724

Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥4,302,553¥4,321,467$38,935,643

Reportable segments

SoftBank
SprintYahoo Japan

Brightstar
Arm–

Notes:
1� SoftBank comprises SoftBank Corp� and Wireless City Planning Inc�2� Goodwill is allocated to “Yahoo” because the benefits are expected to be realized from Yahoo Japan as a whole, not from individual cashgenerating units in Yahoo Japan�

Intangible assets with indefinite useful lives(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

Reportable segments

Cash-generating unit

SprintYahoo Japan

Sprint � � � � � � � � � � �
Shopping � � � � � � � �Ikyu � � � � � � � � � � � �
Subtotal � � � � � � �Brightstar US andCanada region � � �Brightstar Asia andOceania region � � �
Subtotal � � � � � � �Other � � � � � � � � � � �¥4,591,131
20,13010,12030,250¥4,813,851
20,13010,12030,250$43,371,934
181,368
91,179272,547

2,868

3,191

28,7501,225
4,093
12,227

1,695
4,886
12,763

15,27244,022
114,992

Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �¥4,637,701¥4,861,750$43,803,495

Brightstar–

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

The recoverable amount of each cash-generating unit or cash-generating unit group is measured as follows:
For the fiscal year ended March 31, 2018
Value in use: SoftBank, Marketing solution, Shopping, Settlement finance, and Ikyu
Fair value less disposal cost: Sprint, Yahoo, Arm, Brightstar, Brightstar US and Canada region, Brightstar Asiaand Oceania region, and Brightstar Europe and Africa region
For the fiscal year ended March 31, 2019
Value in use: Marketing solution, Shopping, Settlement finance, and Ikyu
Fair value less disposal cost: SoftBank, Sprint, Yahoo, Arm, Brightstar, Brightstar US and Canada region, andBrightstar Asia and Oceania region
Value in use is assessed by discounting to the present value the estimated cash flows over the next five years
based on the financial budget approved by the management, which reflects past experience and external
information, using the pre-tax discount rate of 9�1%-12�0% of the cash-generating unit or cash-generating unitgroup (for the fiscal year ended March 31, 2018: 7%-12�3%)� The cash flows from after five years are assumed
to increase on the basis of the growth rate of 0�7% (for the fiscal year ended March 31, 2018: 0%-0�6%)�
For SoftBank and Yahoo, the fair value less disposal cost is measured mainly based on active market prices�
For Sprint, it is measured using the income approach and the market approach� Under the income approach,fair value is measured by discounting cash flows which are estimated based on business plans for the next 10
years while taking into account future cash flows that market participants would expect to receive in accordancewith their assumptions, discounted to the present value using a post-tax discount rate of 7�6%� The cash flows
from after 10 years are assumed on the basis of a 1�5% growth rate� Under the market approach, EV/Net sales
and EV/EBITDA of similar companies which are comparable to the respective companies and similar acquisition
cases are used� Fair value is classified into level 3 as its fair value is measured using unobservable inputs�
For Arm, it is measured by discounting the cash flows which are estimated based on the business plans forthe next 10 years while taking into account the future cash flows that market participants would expect toreceive in accordance with their assumptions discounted to the present value using a post-tax discount rate of
10�6% (for the fiscal year ended March 31, 2018: 10%)� The cash flows from after 10 years are assumed on thebasis of the growth rate of 19�2% on the 11th year, 9�9% on the 12th year, 3�9% on the 13th year, and 2�3%
on the 14th year (for the fiscal year ended March 31, 2018: 20% on the 11th year, 10% on the 12th year, and
4% on the 13th year)� The cash flows from the 15th year onward are assumed to increase on the basis of thegrowth rate of 2% (for the fiscal year ended March 31, 2018: 2% from the 14th year onward)� Fair value isclassified into level 3 as its fair value is measured using unobservable inputs�
In Brightstar (cash-generating unit group), Brightstar US and Canada region, and Brightstar Asia and Oceania
region, fair value less disposal cost is used as the recoverable amount and measured using the income approachand the market approach� Under the income approach, fair value is measured by discounting cash flows which
are estimated based on business plans for the next 10 years while taking into account future cash flows thatmarket participants would expect to receive in accordance with their assumptions, discounted to the present value
using a post-tax discount rate of 10-13%� The cash flows from after 10 years are assumed on the basis of a 2�5%

Management Organization

Financial Section

Corporate Information

127

growth rate� Under the market approach, EV/EBITDA of similar companies which are comparable to the respective
companies is used� Fair value is classified into level 3 as its fair value is measured using unobservable inputs�
The goodwill of Brightstar is allocated to the entire Brightstar entity, which is made up of four cashgenerating units (Brightstar’s US & Canada, Latin America, Asia & Oceania, and Europe & Africa units)� Intangible
assets with indefinite useful lives other than goodwill are allocated to three cash-generating units (Brightstar’s US& Canada, Asia & Oceania, and Europe & Africa)�
The business plan of Brightstar was revised during the fiscal year ended March 31, 2018, and indicators of
impairment were identified at all of the cash-generating units and the cash-generating unit groups� This
included impairment indicators where intangible assets with indefinite useful lives were allocated as well as
the entire Brightstar entity where goodwill is allocated� Therefore, the impairment test was conducted onthese cash-generating units and the entire Brightstar entity� As a result of the impairment test, an impairment
loss was recognized because the recoverable amounts of Brightstar (the entire entity) and Brightstar’s Europe& Africa cash-generating unit were less than the carrying amounts� Impairment losses on goodwill, intangible
assets, and property, plant and equipment were ¥43,128 million, ¥6,717 million, and ¥652 million, respectively� Fair value less disposal cost is used as the recoverable amount and measured using the income
approach and the market approach� Under the income approach, fair value is measured by discounting cash
flows which are estimated in accordance with the aforementioned assumptions and discounted to the present
value using a post-tax discount rate of 10�5-11%�
Other than the above, as a result of an annual impairment test of goodwill and intangible assets with indefinite
useful lives for cash-generating units or cash-generating unit groups, no impairment loss was recognized�
The share price of Sprint as of March 31, 2019 is $5�65 and it is below the carrying amount per share priceon a consolidated basis� The fair value is measured by not only the quoted market price of the share, but also
other considerations such as a future business plan, stock market, and an industry trend� The determination offair value requires considerable judgment and is highly sensitive to changes in underlying assumptions�Continued, sustained declines in Sprint’s operating results, future forecasted cash flows, growth rates and otherassumptions, as well as significant, sustained declines in the Sprint share price and related market capitalization
could impact the underlying key assumptions and our estimated fair values, potentially leading to a futurematerial impairment of goodwill or intangible assets with indefinite useful lives�
For Arm, assumptions used for the fair value measurement of the impairment test on goodwill andintangible assets with indefinite useful lives include management’s significant judgments and estimates� Changes
in precondition in business plans, such as a decline of the overall IoT market growth, an increase in competitive
companies’ market share and a decrease in Arm’s market share, and an increase in risk of M&A achievement,
could impact the estimated fair value, potentially leading to a future material impairment of goodwill or
intangible assets with indefinite useful lives�
The Company determined that for cash-generating units or cash-generating unit groups to which the
goodwill and intangible assets with indefinite useful lives are allocated, the recoverable amount is unlikely to fall
below the carrying amount, even if major assumptions used in the impairment test change to a reasonably
foreseeable extent�SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

128

17. Leases(2) Operating leases(1) Finance leases(As lessee)
The Company leases towers, land and buildings for the placement of telecommunications equipment,
frequency spectrum, and telecommunication lines under operating leases� Certain operating lease contracts
have automatic renewal options and escalation clauses�
In addition to the non-cancelable period, an automatic renewal option is included in the lease term to theextent that, at the inception of the lease, it is reasonably certain that the option will be exercised� For
operating leases with escalation clauses or a portion of which is free of charge, the total lease payment
amount is amortized over the lease term by the straight line method�(As lessee)
The Company has leased assets, including wireless equipment, switching equipment, power supply systems andtransmission facilities�
The components of finance lease obligations are as follows:

The total minimum lease payments
Within 1 year � � � � � � � � � � � � � � � � � � � � � � � � �
1 to 5 years � � � � � � � � � � � � � � � � � � � � � � � � � � �Over 5 years � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Deduction -future financial expense � � � � � � � � � �
Present value of finance lease obligations � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥ 472,969
776,703
7,455
1,257,127(35,253)¥1,221,874¥ 452,800
750,881
19,334
1,223,015(36,366)¥1,186,649$ 4,079,647
6,765,303
174,196
11,019,146(327,651)$10,691,495

The components of the present value of finance lease obligations are as follows:

Within 1 year � � � � � � � � � � � � � � � � � � � � � � � � � � �
1 to 5 years� � � � � � � � � � � � � � � � � � � � � � � � � � � � �Over 5 years � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥ 455,670
759,014
7,190¥1,221,874¥ 437,397
734,012
15,240¥1,186,649$ 3,940,868
6,613,317
137,310$10,691,495

The outstanding balance by year of maturity of financial lease obligations is described in “(2) Financial risk
management c� Liquidity risk” under “Note 29� Financial instruments�”Certain lease contracts have financial covenants� Major contents are described in “(3) Financial covenants”
under “Note 23� Interest-bearing debt�”The components of the future minimum lease payments receivable under non-cancelable subleases are as
follows:

Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥35,665¥33,660$303,271

Cell site leases
Cell site leases in the U�S� are generally provided by the cell phone tower operators who provide tower andground space to place Sprint-owned antennae, radio, and related equipment� The contract terms generally
provide for an initial non-cancelable term of 5 to 12 years with up to five renewal options for five years each�At the establishment of the cell sites leases, it is assumed that at least one renewal option is exercised forcontracts less than 10 years�
Cell site leases in Japan contain only land or buildings for the placement of cell sites� Most of the contract
terms are 10 years or 20 years� At the establishment of the cell site leases, it is reasonably certain that they
will be used until the contract term expires�
Spectrum leases (U�S�)U�S� leased spectrum agreements have renewal options� For those contracts, it is reasonably certain that, at
the inception of the transaction, all the renewal options will be used and terms including renewal terms are
up to 30 years�

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

The components of the future minimum lease payments related to non-cancelable operating leases are
as follows:

Within 1 year � � � � � � � � � � � � � � � � � � � � � � � � � � �
1 to 5 years� � � � � � � � � � � � � � � � � � � � � � � � � � � � �Over 5 years � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥ 380,185
1,175,368
1,138,070¥2,693,623¥ 410,534
1,137,573
1,115,918¥2,664,025$ 3,698,838
10,249,329
10,054,221$24,002,388

The Company passed a resolution to relocate its head office at the Board of Directors meeting held inJanuary 2019, and entered into a building lease contract with a 20-year contract period from September
2020, effective January 23, 2019�
In the contract, non-cancelable period is determined during the contract period and an option to cancel
the contract after the non-cancelable period is granted� Planned total payment amount (including area
maintenance fees) during the contract period is ¥200,955 million ($1,810,569 thousand)�
Operating lease payments recognized as expenses for the fiscal year ended March 31, 2019 totaled¥469,159 million ($4,227,038 thousand) (for the fiscal year ended March 31, 2018: ¥493,471 million)�

Management Organization

Financial Section

Corporate Information

129(As lessor)
Sprint provides a device leasing program to its qualifying subscribers in the U�S� and SoftBank Corp� provides
device rental service to corporate customers in Japan� The Company classifies substantially all transactions as
operating leases for the device leasing program and device rental service� At the end of the lease term of thedevice leasing program at Sprint, the subscriber has the option to turn in their device, continue leasing theirdevice, or purchase their device� Since device leases are provided on the condition that subscribers maintaintelecommunication services with the Company, the amount of revenue from these transactions is separated
into the amount of payments to be received for device leases and other elements based on the fair value of
telecommunication service and lease�The components of the future minimum lease payments receivable under non-cancelable operating leases
are as follows:

Within 1 year � � � � � � � � � � � � � � � � � � � � � � � � � � �
1 to 5 years� � � � � � � � � � � � � � � � � � � � � � � � � � � � �Over 5 years � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �(Millions of yen)(Thousands ofU�S� dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥401,960
76,5642,381¥480,905¥409,615
74,503
2,163¥486,281$3,690,558
671,259
19,488$4,381,305

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

130

Corporate Information

18. Major subsidiaries(1) Organizational structure
The Company’s major subsidiaries are as follows:
Company Name

SoftBank Corp.
SB C&S Corp.
Wireless City Planning Inc.1
SB Payment Service Corp.
SoftBank Technology Corp.
ITmedia Inc.
Sprint Corporation
Sprint Communications, Inc.
Yahoo Japan Corporation2
ValueCommerce Co., Ltd.
The Japan Net Bank, Limited3
ASKUL Corporation4
eBOOK Initiative Japan Co., Ltd.5
Arm Limited
Arm PIPD Holdings One, LLC
Arm PIPD Holdings Two, LLC
SB Investment Advisers (UK) Limited
SoftBank Vision Fund L.P.6
SoftBank Vision Fund (AIV M1) L.P.6
SoftBank Vision Fund (AIV M2) L.P.6
SoftBank Vision Fund (AIV M3) L.P.6
SoftBank Vision Fund (AIV S1) L.P.6
SB Delta Fund (Jersey) L.P.6
Brightstar Global Group Inc.
Brightstar Corp.
SoftBank Group Japan Corporation
SoftBank Group Capital Limited
SB Group US, Inc.
Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.
SB Energy Corp.
PayPay Corporation
SoftBank Robotics Group Corp.
Skywalk Finance GK
Vector Inc.
SoftBank Ventures Asia Korea Corp.
SoftBank Korea Corp.
SOFTBANK Holdings Inc.
SOFTBANK America Inc.
SB Pan Pacific Corporation
SB INVESTMENT HOLDINGS (UK) LIMITEDSTARFISH I PTE. LTD.
Starburst I, Inc.
West Raptor Holdings, LLC
Hayate Corporation

Reportable segments

Location

SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SprintSprintYahoo Japan
Yahoo Japan
Yahoo Japan
Yahoo Japan
Yahoo Japan
Arm
Arm
Arm
SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund
SoftBank Vision Fund and Delta Fund
Brightstar
Brightstar
Company-wide
Company-wide
Company-wide
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other

Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
U.S.
U.S.
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
U.K.
U.S.
U.S.
U.K.
Bailiwick of Jersey
U.S.
U.S.
U.S.
U.S.
Bailiwick of Jersey
U.S.
U.S.
Tokyo
U.K.
U.S.
U.S.
Fukuoka
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
South Korea
South Korea
U.S.
U.S.
Micronesia
U.K.
Singapore
U.S.
U.S.
Micronesia

Ownership percentage of voting rights (%)
As of March 31, 2018
As of March 31, 2019

99.99
100
32.2
100
54.3
57.7
84.7
100
43.0
52.1
41.2
45.2
44.1
100
100
100
100
–
–
–
–
–
–
87.1
100
100
100
100
100
100
100
–
69.7
100
52.1
100
100
100
100
100
100
100
100
100
100

66.5
100
32.2
100
54.1
53.6
84.4
100
48.2
52.0
46.6
45.1
43.6
100
100
100
100
–
–
–
–
–
–
89.5
100
100
100
100
100
100
100
100
69.7
100
52.1
100
100
100
100
100
100
100
100
100
100

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Notes:
1. The Company does not own the majority of Wireless City Planning Inc.’s voting rights. However, the Company determined that it has control
over Wireless City Planning Inc. and included it in the scope of consolidation, considering the fact that SoftBank Group Corp.’s directors,
SoftBank Corp.’s directors and corporate officers constitute the majority of members of Wireless City Planning Inc.’s Board of Directors and that
Wireless City Planning Inc.’s business activities significantly depend on the Company.
2. The Company does not own the majority of Yahoo Japan Corporation’s voting rights. However, the Company determined that it has control
over Yahoo Japan Corporation and included it in the scope of consolidation, considering the fact that the Company holds 48.2% of the voting
rights of Yahoo Japan Corporation and SoftBank Group Corp.’s directors and SoftBank Corp.’s directors constitute the majority of the membersof Yahoo Japan Corporation’s Board of Directors.
3. The Company does not own the majority of The Japan Net Bank, Limited’s voting rights. However, the Company determined that it has control
over The Japan Net Bank, Limited and included it in the scope of consolidation, considering the fact that the Company holds 46.6% of thevoting rights of The Japan Net Bank, Limited and Yahoo Japan Corporation’s directors and its employees constitute the majority of the membersof The Japan Net Bank, Limited’s Board of Directors.
4. The Company does not own the majority of ASKUL Corporation’s voting rights. However, the Company determined that it has control over
ASKUL Corporation and included it in the scope of consolidation, considering the fact that the Company holds 45.1% of the voting rights of
ASKUL Corporation, the dispersion of voting rights in ASKUL Corporation and the voting patterns exercised in ASKUL Corporation’s pastshareholders meetings.
5. The Company does not own the majority of eBOOK Initiative Japan Co., Ltd.’s voting rights. However, the Company determined that it hascontrol over eBOOK Initiative Japan Co., Ltd. and included it in the scope of consolidation, considering the fact that the Company holds 43.6%of the voting rights of eBOOK Initiative Japan Co., Ltd., and Yahoo Japan Corporation’s directors and its employees constitute the majority ofthe members of eBOOK Initiative Japan Co., Ltd.’s Board of Directors.
6. Limited partnerships are deemed as structured entities and the voting rights are not described. The details are described in “(1) Consolidated
structured entities” under “Note 21. Structured entities.”(2) Summarized consolidated financial information and other information on subsidiaries withsignificant non-controlling interests
a. SoftBank Corp. (SoftBank Corp. and its group companies)(a) General information

Ownership ratio of the non-controlling interests (%) . . . . . . . .

Accumulated amount attributable tothe non-controlling interests ofsubsidiary group . . . . . . . . . . . . . . . . . . .

Net income allocated to the non-controllinginterests of subsidiary group . . . . . . . . . . .

As ofMarch 31, 2018

As ofMarch 31, 2019

0.01

33.51

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥17,953¥375,168$3,380,196(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥578

¥13,925$125,462

Management Organization

Financial Section

131

Corporate Information(b) Summarized consolidated financial information

Current assets . . . . . . . . . . . . . . . . . . . . . .
Non-current assets . . . . . . . . . . . . . . . . . .
Current liabilities . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . .
Net assets . . . . . . . . . . . . . . . . . . . . . . . . .

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥1,569,080
4,459,879
3,397,474
1,022,833
1,608,652¥1,756,322
4,742,159
2,046,275
2,464,315
1,987,891$15,824,146
42,726,002
18,436,571
22,203,036
17,910,541(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥3,582,635
401,405
407,202¥3,746,305
425,572
365,266$33,753,536
3,834,327
3,290,981

No dividends were paid to non-controlling interests by SoftBank Corp. for the fiscal year ended
March 31, 2019 (for the fiscal year ended March 31, 2018: ¥136 million).

Net cash provided by operating activities . .
Net cash used in investing activities . . . . . .
Net cash (used in) provided byfinancing activities. . . . . . . . . . . . . . . . . .
Increase in cash and cash equivalents . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥ 726,598(621,391)¥ 826,582(614,738)$ 7,447,356(5,538,679)(55,073)¥ 50,134

25,084¥ 236,928

226,002$ 2,134,679

As ofMarch 31, 2018

As ofMarch 31, 2019

15.3

15.6

b. Sprint (Sprint Corporation and its group companies)(a) General information

Ownership ratio of the non-controlling interests (%) . . . . . . . .

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

As ofMarch 31, 2018

Accumulated amount attributable to thenon-controlling interests ofsubsidiary group . . . . . . . . . . . . . . . . . . .

Growth Strategy(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019

¥430,518$3,878,890(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥131,145¥525$4,730¥377,179

Net income allocated to the non-controllinginterests of subsidiary group . . . . . . . . . . .

Management Organization

Financial Section

Net cash provided by operating activities . .
Net cash used in investing activities . . . . . .
Net cash used in financing activities . . . . .
Effect of exchange rate changes oncash and cash equivalents . . . . . . . . . . . .
Increase in cash and cash equivalents(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥ 656,207(234,203)(11,775)¥ 593,203(525,934)(18,689)$ 5,344,653(4,738,571)(168,385)(29,946)¥ 380,283

25,094¥ 73,674

226,093$ 663,790

As ofMarch 31, 2018

As ofMarch 31, 2019c. Yahoo (Yahoo Japan Corporation and its group companies)(a) General information(b) Summarized consolidated financial information

Current assets . . . . . . . . . . . . . . . . . . . . . .
Non-current assets . . . . . . . . . . . . . . . . . .
Current liabilities . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . .
Net assets . . . . . . . . . . . . . . . . . . . . . . . . .

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥1,514,184
7,392,667
1,187,790
5,158,417
2,560,644¥1,430,756
7,999,031
1,382,646
5,174,812
2,872,329$12,890,855
72,069,835
12,457,393
46,624,128
25,879,169(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥3,601,961
829,338
827,083¥3,726,844
8,933
6,740

$33,578,196
80,48560,726132

Corporate Information

Ownership ratio of the non-controlling interests (%) . . . . . . . .

57.1

51.8

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥669,940¥564,222$5,083,539(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥75,951¥46,964$423,137(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥1,492,508
1,038,884
1,170,310
224,436
1,136,646¥1,224,363
1,221,286
1,277,527
241,551926,571$11,031,291
11,003,568
11,510,289
2,176,331
8,348,239

Accumulated amount attributable to thenon-controlling interests ofsubsidiary group . . . . . . . . . . . . . . . . . . .

Net income allocated to the non-controllinginterests of subsidiary group . . . . . . . . . . .
(b) Summarized consolidated financial information

No dividends were paid to non-controlling interests by Sprint for the fiscal year ended March 31,2018 and the fiscal year ended March 31, 2019.
Current assets . . . . . . . . . . . . . . . . . . . . . .
Non-current assets . . . . . . . . . . . . . . . . . .
Current liabilities . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . .
Net assets . . . . . . . . . . . . . . . . . . . . . . . . .

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . .

Essential Information

Growth Strategy(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥897,185
134,412
136,045¥954,714
77,82883,554$8,601,802
701,216
752,807

Dividends paid to the non-controlling interests by Yahoo Japan Corporation for the fiscal year
ended March 31, 2019 is ¥28,795 million ($259,438 thousand) (for the fiscal year ended March 31,
2018: ¥28,771 million).

Net cash provided byoperating activities . . . . . . . . . . . . . . . . .
Net cash provided by (used in)investing activities . . . . . . . . . . . . . . . . . .
Net cash provided by (used in)financing activities. . . . . . . . . . . . . . . . . .
Effect of exchange rate changes oncash and cash equivalents . . . . . . . . . . . .
Increase (decrease) in cash andcash equivalents . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥ 78,203¥ 151,369$ 1,363,808

229,810(213,605)(1,924,543)

21,290(263,303)(2,372,313)

(562)

515

4,640

¥328,741¥(325,024)$(2,928,408)

19. Investment securities
Of the investment securities held by the Company, investment securities transferred or agreed to betransferred from the Company to Softbank Vision Fund were reclassified from “Investment securities” to“Investments from SoftBank Vision Fund and Delta Fund accounted for using FVTPL” in the consolidated
statement of financial position in the fiscal year ended March 31, 2019. The carrying amount of theinvestment securities is ¥1,832,387 million as of March 31, 2018.

20. Investments accounted for using the equity method(1) Summarized consolidated financial information and other of the significant associates
Alibaba Group Holding Limiteda. General information
Alibaba (registered in Cayman) operates online marketplaces “Taobao Marketplace,” “Tmall,”“Alibaba.com” and other through its group company.

Management Organization

Financial Section

Corporate Information

133

b. Summarized consolidated financial information
IFRSs summarized consolidated financial information for Alibaba is as follows.
The Company applies the equity method to the consolidated financial statements of Alibaba on athree-month time lag, as it is impracticable to conform the reporting period of Alibaba to that of theCompany due to the contract with Alibaba. Also, this note discloses the summarized consolidated
financial information of Alibaba on a three-month time lag. Adjustments are made for significant
transactions or events which occurred during the intervening period and which were publicly
announced by Alibaba.

Current assets . . . . . . . . . . . . . . . . . . . . . .
Non-current assets . . . . . . . . . . . . . . . . . .
Current liabilities . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . .
Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total equity attributable toowners of the parent . . . . . . . . . . . . . .
Non-controlling interests . . . . . . . . . . . .

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income, net of tax . .
Total comprehensive income . . . . . . . . . . .

Net income attributable to ownersof the parent. . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income attributableto owners of the parent, net of tax . . . . .
Total comprehensive income attributableto owners of the parent . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥4,691,662
7,761,069
2,336,584
2,612,685¥ 4,415,376
10,590,078
3,470,290
2,523,846$39,781,746
95,414,704
31,266,691
22,739,400

6,431,715
1,071,747

7,855,322
1,155,996

70,775,043
10,415,316(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥3,863,866
1,381,218
7,905¥1,389,123¥5,735,529
1,036,961
52,670¥1,089,631$51,676,088
9,342,833
474,547$9,817,380(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥1,432,005¥1,161,072$10,461,051

13,62543,394

390,972¥1,445,630¥1,204,466$10,852,023

There was no dividend received from Alibaba for the fiscal years ended March 31, 2018 and 2019.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

The reconciliation between total equity attributable to owners of the parent based on the summarized
consolidated financial information above and the carrying amount of the interests in Alibaba is as follows:

Total equity attributable to owners of
the parent . . . . . . . . . . . . . . . . . . . . . . . .
Interest ratio (%). . . . . . . . . . . . . . . . . . . .
Interests of the Company . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated amortization of goodwill on
the IFRSs transition date1 . . . . . . . . . . . . .
Warrants . . . . . . . . . . . . . . . . . . . . . . . . . .
Other2 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Carrying amount of the interests
in Alibaba . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥6,431,715
29.36
1,888,352¥7,855,322
26.26
2,062,807$70,775,043
26.26
18,585,521

141,340

161,277

1,453,077(7,001)(103,345)(34,296)(6,095)(125,695)(29,801)(54,915)(1,132,489)(268,502)¥1,885,050¥2,062,493$18,582,692

Notes:
1. Goodwill recorded by Alibaba from business combinations before the IFRSs transition date was amortized over the periods in which
economic benefits were reasonably expected to be realized, when the Company applied the equity method to the investment in
Alibaba under previous accounting principles (JGAAP). The adjustment amount above reflects the accumulated amortization of
goodwill at the date of transition to IFRSs.
2. Other relates to adjustments mainly related to organization restructurings such as the transfer of Taobao shares in 2005 and thepurchase of treasury stocks by Alibaba from Yahoo! Inc. in the U.S. in 2012.

c. Fair value of investment in Alibaba
The fair value of the investment in Alibaba based on market price is ¥13,643,692 million ($122,927,219
thousand) as of March 31, 2019 (as of March 31, 2018: ¥14,565,941 million).

(2) Aggregated information on investment in insignificant associates and joint ventures
The aggregated information of insignificant investments accounted for using the equity method, other than
(1) above (total amount of the Company’s interests), is as follows:

Carrying amount of the interests
Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joint ventures . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥440,342
3,225¥443,567¥575,436
3,116¥578,552$5,184,575
28,075$5,212,650

Net income (loss)
Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joint ventures . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income, net of tax
Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joint ventures . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income
Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joint ventures . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Corporate Information

134(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(20,005)(182)¥(20,187)¥(20,385)(1,505)¥(21,890)$(183,665)(13,560)$(197,225)

16,12176¥ 16,197

2,640
(12)
¥ 2,628

23,786(108)$ 23,678(3,884)(106)¥ (3,990)(17,745)(1,517)¥(19,262)(159,879)(13,668)$(173,547)(3) Assets with restrictions on use
The carrying amount of investments accounted for using the equity method with restrictions on use (sale,transfer, disposal or dividend distributions, and other) based on the guarantee contracts within the group forfund procurements is as follows:

Investments accounted for using theequity method . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥55,351¥53,437$481,458

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

21. Structured entities

Management Organization

Financial Section

Corporate Information

135

The scale of the structured entities which are not consolidated, the carrying amount of the investment in
the entities by the Company, and the potential maximum loss exposure of the Company are as follows:(1) Consolidated structured entities
The Company owns investment funds which are structured entities consolidated by the Company. These
funds are structured as venture funds in the form of partnerships and limited partnerships for investment, anddesigned so that the voting rights or similar rights are not determinant in evaluating control. The Company
evaluated that it controls the operation of those structured entities.
Please refer to “a. Consolidation of the SoftBank Vision Fund and Delta Fund segment by the Company”
in “(21) Significant accounting policies for the SoftBank Vision Fund and Delta Fund segment” under “Note3. Significant accounting policies” for evaluation of control over the following entities that comprise the
SoftBank Vision Fund and Delta Fund business.
Company Name

Location

SoftBank Vision Fund L.P.
SoftBank Vision Fund (AIV M1) L.P.
SoftBank Vision Fund (AIV M2) L.P.
SoftBank Vision Fund (AIV M3) L.P.
SoftBank Vision Fund (AIV S1) L.P.
SB Delta Fund (Jersey) L.P.

Bailiwick of Jersey
U.S.
U.S.
U.S.
U.S.
Bailiwick of Jersey

The Company is engaged in investment commitment contracts with certain consolidated structured entities.
The Company has not provided, nor intends to provide, any significant financial support or other significant
support to the consolidated structured entities without contractual obligation.

(2) Unconsolidated structured entities
The Company owns investment funds, which are structured entities that are not consolidated by the Company.
These funds are structured as venture funds in the form of partnerships, limited partnerships for investment andinvestment trusts, and designed so that the voting rights or similar rights are not determinant in evaluating
control. Third parties control the operation of these structured entities. The funds are financed by the subscription by its partners.

Total assets of the unconsolidated
structured entities (aggregate amount) . . . . . . .
The maximum loss exposure of the Company
The carrying amount of the investment
recognized by the Company . . . . . . . . . . . . .
Commitment contracts related toadditional investment . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥1,082,817¥1,566,213$14,111,298

107,293

161,643

1,456,374

52,730¥ 160,023

82,291¥ 243,934

741,428$ 2,197,802

The investment recognized by the Company is included in “Investments accounted for using the equity
method” or “Investment securities” in the consolidated statement of financial position. There is no liability torecognize related to unconsolidated structured entities.
The potential maximum loss exposure incurred from the involvement with the structured entities is limited
to the total of the carrying amount of the Company’s investment and commitment regarding additional
investment.
The Company’s maximum loss exposure represents the potential maximum loss amount, and does notindicate any estimated loss amount by being involved with structured entities.
The Company has not provided, nor intends to provide, any financial support or other significant support
to the unconsolidated structured entities above without contractual obligation.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

136

22. Income taxes(2) Reconciliation of the statutory effective tax rate and actual tax rate(1) Tax expenses

The reconciliation of the statutory effective tax rate and actual tax rate is as follows. The actual tax rate
represents the ratio of income tax expenses to income before income tax.

The components of income tax expenses are as follows:

Fiscal year ended
March 31, 2018

Current tax expenses . . . . . . . . . . . . . . . . . . . .
Deferred tax expenses . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ (267,034)
1,120,216¥ 853,182(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(9,103)(227,581)¥(236,684)$(82,016)(2,050,464)$(2,132,480)

Current tax expenses include tax loss forward previously unrecognized, tax credit and the benefit arisingfrom certain temporary differences in the previous years. The reduction of current tax expense for the year
ended March 31, 2019 was ¥494,161 million ($4,452,302 thousand) (for the fiscal year ended March 31,
2018: ¥5,634 million).
The reduction of current tax expense for the fiscal year ended March 31, 2019 is mainly due to thedisposal of a portion of SoftBank Corp. shares (ownership percentage 33.50%) held by SoftBank Group
Japan Corporation, a wholly-owned subsidiary of the Company, along with the listing of SoftBank Corp.
shares. The details are described in “Notes 2.” under “(2) Reconciliation of the statutory effective tax rate
and actual tax rate.”
The amount of deferred tax expenses arising from write-off of deferred tax assets or reversal of thewrite-off of deferred tax assets recorded in the previous years is included. As a result, the reduction ofdeferred tax expenses for the fiscal year ended March 31, 2019 was ¥6,196 million ($55,825 thousand) (forthe fiscal year ended March 31, 2018: ¥285,346 million). The reduction for the fiscal year ended March 31,2018 is mainly due to the enactment of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) in December
2017 in the U.S. The details are described in “Notes 3. b. Abolition of time limit on use of future loss
carryforwards” under “(2) Reconciliation of the statutory effective tax rate and actual tax rate.”(Unit :%)

Statutory effective tax rate1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect from evaluating recoverability of deferred tax assets2 . . . . . .
Effect from profit or loss that does not
impact taxable gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution from SoftBank Vison Fund and Delta Fund . . . . . . . . .
Aggregation of income earned by controlled foreign companies . .
Temporary difference associated with investment in subsidiaries . .
Income and loss on equity method investments . . . . . . . . . . . . . . .
Effect from the enactment of the Tax Act in the U.S.3 . . . . . . . . . .
Impairment loss on goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 201931.7
(32.8)

31.5(17.6)

(3.5)
4.5
7.3
0.1
(23.5)(211.4)3.9
1.9(221.8)

(8.0)
6.0
2.7
(2.7)
2.0
–
–
(0.1)
14.0

Notes:
1. The Company is subject to income taxes, residence taxes and deductible enterprise taxes. The statutory effective tax rate for the fiscal year
ended March 31, 2019 based on these taxes is 31.5% (for the fiscal year ended March 31, 2018: 31.7%), except for foreign subsidiaries thatare subject to income taxes at their respective locations.
2. On December 19, 2018, SoftBank Corp. shares were listed on the Tokyo Stock Exchange First Section. Along with the listing, a portion of
SoftBank Corp. shares (ownership percentage 33.50%) held by SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company,
was disposed and ¥2,349,832 million ($21,171,565 thousand) of proceeds was received. As a result, the ownership percentage in SoftBank
Corp. by the Company has changed from 99.99% to 66.49%. As SoftBank Corp. remains a subsidiary, ¥750,804 million ($6,764,609 thousand), the equivalent amount of income taxes for gain on sales of SoftBank Corp. shares on a consolidation basis, is deducted from capitalsurplus as “Changes in interests in subsidiaries.”
In regard to the transaction, a loss carryforward whose deferred tax asset was not recognized, was used and income taxes decreased by¥345,228 million ($3,110,442 thousand). Accordingly, a deductible temporary difference, associated with an investment in SoftBank Corp.
whose deferred tax asset was not recognized, was reversed and income taxes decreased by ¥60,349 million ($543,734 thousand).
3. Due to the enactment of the Tax Act in December 2017 in the U. S., a deferred tax liability of ¥776,945 million (translated at the exchange rate
as of March 31, 2018) mainly at Sprint was reversed. Additionally, income taxes in the consolidated statement of income decreased by¥815,059 million and other comprehensive income increased by ¥8,244 million. The details are as follows.
a. Reduction in the federal corporate tax rate
The federal corporate tax rate was reduced from 35% to 21% effective January 1, 2018. Due to the reduction, ¥550,093 million of a part ofdeferred tax liabilities related to the FCC license and others, which was calculated based on the tax rate as of the acquisition date of Sprint in2013, was reversed. Additionally, income taxes decreased by ¥584,026 million.
b. Abolition of time limit on use of future loss carryforwards
Net operating losses generated in tax years beginning on or after January 1, 2018 may be carried forward indefinitely. For Sprint, its tax year
starts from April; therefore, net operating losses generated on or after April 1, 2018 may be carried forward indefinitely.
At Sprint, for certain deductible temporary differences where deferred tax assets could not be previously realized, it was likely to be recoverable because the taxable temporary differences from assets with indefinite lives, such as the FCC licenses, may be a source of future taxable
income. As a result of this change, ¥226,852 million of deferred tax assets were recognized (offset by deferred tax liabilities). Additionally,
income taxes decreased by ¥231,033 million and other comprehensive income increased by ¥8,244 million.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Business
combination

Exchangedifferences

¥

–
142
44

¥(10,194)(6,922)(698)

137

Corporate Information(3) Movement of deferred tax assets and deferred tax liabilities
The movement of deferred tax assets and deferred tax liabilities is as follows:
For the fiscal year ended March 31, 2018
(Millions of yen)

Deferred tax assets
Property, plant and equipment1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other liabilities1 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net operating loss carryforwards and tax credit carryforwards2 . . . . . . . . .
Temporary difference associated with investment in subsidiaries,
associates and joint ventures3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities
FCC licenses1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademarks1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Temporary difference associated with investment in subsidiaries,
associates and joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment securities4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As ofMarch 31, 2017

Recognized in
profit or loss

Recognized in othercomprehensive income¥

125,028
153,850
19,611¥ 140,018
52,2282,966¥

230,096
70,426
599,011150,292
141,505
487,009

–
(11)
8,486

6,837
3,016
10,039(514)(2,571)(20,899)

–
4,594
4,977

386,711
216,959
1,088,623(1,452,451)(132,827)(287,635)(91,158)

469,035
57,873
95,448
7,984

–
–
–
–

–
–
–
(958)

49,815189
9,141(5,758)––––(933,601)(74,765)(183,046)(89,890)(10,405)(34,300)(126,621)(2,135,397)¥(1,536,386)(24,564)(8,552)35,983
633,207¥1,120,216

103(36,404)(4,081)(40,382)¥(31,896)–(123)(31,664)5(32,745)¥(22,706)

37
167
1,066
54,657¥ 33,758(223)(1,816)(4,036)(6,075)¥(1,098)(35,052)(81,028)(129,353)(1,526,735)¥ (438,112)

–
8,497
–

Other

¥

201
109
73

As of
March 31, 2018¥

255,053
207,904
21,996

Notes:
1. The increase in deferred tax assets from “Property, plant and equipment” and “Accrued expenses and other liabilities” and the decrease in deferred tax liabilities from “FCC licenses” and “Trademarks” are due to the effect from the enactment of the Tax Act in the U. S. at Sprint. The details aredescribed in “Notes 3.” under “(2) Reconciliation of the statutory effective tax rate and actual tax rate.”
2. The Company recognizes deferred tax assets related to the entities that recorded a loss in either the fiscal year ended March 31, 2017 or 2018, in the amount of ¥13,344 million for the fiscal year ended March 31, 2018. Deferred tax assets are recognized to the extent that it is probable that taxable
income will be available against which deductible temporary differences, net operating loss carryforwards and tax credit carryforwards can be utilized.
3. The increase in deferred tax assets from “Temporary difference associated with investment in subsidiaries, associates and joint ventures” is due to the recognition of deferred tax assets on temporary differences on investment which arose from changes in the carrying amount on a tax basis, due to thesales of Alibaba shares to a subsidiary of the Company. The amount of deferred tax assets recognized as of March 31, 2018 is ¥377,232 million.
4. The increase from “Investment securities” is mainly due to the increase in valuation gain on available for sale financial assets.
5. The increase from “Business combination” is mainly due to the consolidation of Fortress. The details are described in “(1) Fortress” under “Note 8. Business combinations.”

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Financial Section

Management Organization

138

Corporate Information

For the fiscal year ended March 31, 2019
(Millions of yen)

Deferred tax assets
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . .
Net operating loss carryforwards and tax credit carryforwards1 . .
Temporary difference associated with investment in subsidiaries,
associates and joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities
FCC licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Temporary difference associated with investment in subsidiaries,
associates and joint ventures2 . . . . . . . . . . . . . . . . . . . . . . . . . .
Contract assets and costs to obtain contracts . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As ofMarch 31, 2018

Recognized in
profit or loss

Recognized in othercomprehensive income¥

255,053
207,904
21,996¥(140,167)(18,508)
212,975¥

386,711
216,959
1,088,623(12,334)
4,473
46,439(933,601)(74,765)(183,046)(89,890)(35,052)–(81,028)(129,353)(1,526,735)¥ (438,112)

–
893
–

Business
combination¥

Exchangedifferences

2
64
547

¥ 13,182
5,186
(421)

(14)
2,223
3,102

(4,096)940(2,543)(11,808)
24,381
1,421(14,795)––––(254,683)(27,589)
26,036(16,983)(274,020)¥(227,581)

(993)
–
2,724
(262)
1,469
¥4,571

Effect of retrospective adjustments
due to adoption of
new standards

¥

Other

As of
March 31, 2019–(20,310)–¥ (4,404)
3,186
(692)

¥

123,666
178,415
234,405125(1,913)
16,159(2,507)
15,239(7,578)

3,917
4,237
6,244

371,802242,158
1,150,446––––(41,613)(632)(7,712)
2,720

–
–
–
–

–
–
(948)
–

(987,022)(51,016)(190,285)(101,965)–––(3,046)(3,046)¥(5,589)(26)(1,568)(1,954)(3,289)(54,074)¥(37,915)–(91,774)–3,530(88,244)¥(95,822)(14,458)
–
727
4,754
(9,925)¥ (3,681)(305,212)(120,931)(53,495)(144,649)(1,954,575)¥ (804,129)

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Financial Section

Management Organization

139

Corporate Information(Thousands of U.S. dollars)

Deferred tax assets
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . .
Net operating loss carryforwards and tax credit carryforwards1 . .
Temporary difference associated with investment in subsidiaries,
associates and joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities
FCC licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Temporary difference associated with investment in subsidiaries,
associates and joint ventures2 . . . . . . . . . . . . . . . . . . . . . . . . . .
Contract assets and costs to obtain contracts . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As ofMarch 31, 2018

Recognized in
profit or loss

Recognized in othercomprehensive income$ 2,297,982
1,873,178
198,180$(1,262,880)(166,754)
1,918,867$

3,484,196
1,954,762
9,808,298(111,127)
40,301
418,407(8,411,578)(673,619)(1,649,212)(809,893)(315,812)–(730,048)(1,165,447)(13,755,609)$ (3,947,311)

–
8,045
–

Business
combination$

Exchangedifferences

Effect of retrospective adjustments
due to adoption of
new standards

$

Other

As of
March 31, 2019–
(182,989)–$ (39,679)
28,705(6,235)$ 1,114,208
1,607,487
2,111,947

18
577
4,928

$ 118,767
46,725(3,793)(126)
20,02927,948(36,904)
8,469(22,912)1,126(17,235)
145,590(22,588)
137,301(68,276)

35,292
38,17456,257

3,349,869
2,181,801
10,365,312(106,388)
219,668
12,803(133,300)

–
–
–
–

–
–
–
–

(374,925)(5,694)(69,484)
24,507

–
–
–
–

–
–
(8,541)–(8,892,891)(459,645)(1,714,434)(918,686)(2,294,648)(248,572)
234,580(153,014)(2,468,871)$(2,050,464)(8,947)–
24,543(2,360)13,236$41,184–––(27,444)(27,444)$(50,356)(234)(14,128)(17,605)(29,634)(487,197)$(341,607)–(826,867)–
31,804(795,063)$(863,339)(130,264)–
6,550
42,833(89,422)$ (33,165)(2,749,905)(1,089,567)(481,980)(1,303,262)(17,610,370)$ (7,245,058)

Notes:
1. The Company recognizes deferred tax assets related to the entities that recorded a loss in either the fiscal year ended March 31, 2018 or 2019, in the amount of ¥27,769 million ($250,194 thousand) for the fiscal year ended March 31, 2019. Deferred tax assets are recognized to the extent that it isprobable that taxable income will be available against which deductible temporary differences, net operating loss carryforwards and tax credit carryforwards can be utilized.
2. The increases in deferred tax liabilities from “Temporary difference associated with investment in subsidiaries, associates and joint ventures” as of March 31, 2019 are mainly due to ¥ 119,306 million ($1,074,926 thousand) of the recognition of deferred tax liabilities on temporary differences onreserved profit of SoftBank Vision Fund and Delta Fund and ¥125,579 million ($1,131,444 thousand) of the recognition of deferred tax liabilities on temporary differences on investment in Alibaba shares.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Deferred tax assets and liabilities in the consolidated statement of financial position are as follows:

Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . .
Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥¥

$ 5,288,251(12,533,309)$ (7,245,058)

647,514(1,085,626)¥ (438,112)

586,943(1,391,072)¥ (804,129)(4) Deductible temporary differences, net operating loss carryforwards and tax credit
carryforwards, unaccompanied by the recognition of deferred tax assets
Deductible temporary differences, net operating loss carryforwards, and tax credit carryforwards unaccompanied by the recognition of deferred tax assets are as follows. The amounts below are on a tax basis.

Deductible temporary differences . . . . . . . . . . . .
Net operating loss carryforwards . . . . . . . . . . . . .
Tax credit carryforwards . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥ 262,975
1,349,432
33,536¥1,645,943¥ 216,639
1,323,524
31,513¥1,571,676$ 1,951,879
11,924,714
283,926$14,160,519

Management Organization

Financial Section

140

Corporate Information

Expiration of net operating loss carryforwards and tax credit carryforwards unaccompanied by recognitionof deferred tax assets is as follows. There is no deductible temporary difference with an expiry date.

Net operating loss carryforwards (tax basis)

1st year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2nd year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3rd year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4th year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5th year and thereafter and no expiry date . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax credit carryforwards (tax basis)

1st year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2nd year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3rd year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4th year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5th year and thereafter and no expiry date . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As ofMarch 31, 2018¥

15,405
19,31916,396
7,519
1,290,793¥1,349,432(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019¥

20,616
14,861
11,8798,955
1,267,213¥1,323,524$

185,746
133,895
107,028
80,683
11,417,362$11,924,714(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥ 1,278
2,306
2,461
1,523
25,968¥33,536¥ 2,419
2,571
1,591
830
24,102¥31,513$ 21,795
23,164
14,335
7,478
217,154$283,926

In addition to the above, total future deductible temporary differences (before multiplying by the tax rate)unaccompanied by the recognition of deferred tax assets related to the investment in subsidiaries, associates
and joint ventures as of March 31, 2019 are ¥1,128,590 million ($10,168,394 thousand) (as of March 31,
2018: ¥657,491 million).

(5) Future taxable temporary differences unaccompanied by the recognition of deferred tax
liabilities related to the investment in subsidiaries
Total future taxable temporary differences (before multiplying by the tax rate) unaccompanied by therecognition of deferred tax liabilities related to the investment in subsidiaries as of March 31, 2019 are¥1,841,053 million ($16,587,557 thousand) (as of March 31, 2018: ¥1,651,164 million).

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

141

Corporate Information

23. Interest-bearing debt
(1) Components of interest-bearing debt
The components of interest-bearing debt are as follows:
As of March 31, 2018

Current
Short-term borrowings3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of long-term borrowings3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of corporate bonds5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of financial liabilities relating to the sale of shares by variable prepaid
forward contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of installment payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current
Long-term borrowings3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate bonds5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial liabilities relating to the sale of shares by variable prepaid forward contract4 . . . . .
Installment payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥957,573
100,000
1,093,705
590,277455,670(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2019

As of March 31, 2019¥

499,179
42,000718,019
1,042,253
437,397$

4. The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward contract.”

Maturity2

4,497,513
378,4126,469,222
9,390,513
3,940,869

1.21
0.07
1.34
3.08
1.59

–
–
–
–
–

–
20,180¥ 3,217,405

730,601
11,511¥ 3,480,960

6,582,584
103,712$ 31,362,825

1.59
2.14

–
–

5,121,591
7,234,049
766,204
688,332
14,607¥13,824,783

4,910,794
6,538,785
749,252–
5,315¥12,204,146

44,245,373
58,913,280
6,750,626–
47,888$109,957,167

2.91
4.63
1.59
–
4.12

Jun. 2020 – Nov. 2044
Jun. 2020 – Sep. 2043
Apr. 2020 – Jan. 2040–
Apr. 2020 – Jul. 2027

Notes:
1. Average interest rate represents the weighted-average interest rate to the balance as of March 31, 2019.
2. Maturity represents the maturity of the outstanding balance as of March 31, 2019.
3. The amounts of SoftBank Vision Fund and Delta Fund interest-bearing debt included in the above components of interest-bearing debt are as follows:

Current
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current
Long-term borrowings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SoftBank Vision Fund and Delta Fund interest-bearing debt
(before elimination of inter-company transactions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eliminated amount of inter-company transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SoftBank Vision Fund and Delta Fund interest-bearing debt
(after elimination of inter-company transactions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Average interest rate (%)1

(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2018

As of March 31, 2019

As of March 31, 2019

¥ 87,259
313,143¥400,402¥ 900,406–¥ 900,406$ 8,112,497–$ 8,112,497

108,749¥108,749

12,764¥ 12,764$

509,151(10,744)913,170(876,599)

8,227,498(7,898,000)¥498,407¥ 36,571$

115,001
115,001

329,498

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

5. A summary of the issuance condition of bonds is as follows:
Company name / Name of bond

Balance of issue
amount6

Date of issuance

SoftBank Group Corp.
43rd Unsecured Straight Bond . . . . . . . . . . . . . . . . . . . . . . . Jun. 20, 2013¥

As of March 31, 2018
(Millions of yen)7–

As of March 31, 2019
(Millions of yen)7¥–

As of March 31, 2019
(Thousands of U.S. dollars)7$

Interest rate (%)

Date of maturity

–

1.74

Jun. 20, 2018

450,040
2,702,361(2,702,361)
3,600,081(3,600,081)
898,251
3,311,479
179,710269,322
3,571,835
449,058
3,654,104
359,023–
736,850
296,865
1,195,549
680,016444,950
1,812,965
494,405–
318,903
1,110,632
1,221,867
765,321433,129
233,508
1,302,613
765,159
3,577,602
4,022,957

1.69
1.45

Nov. 27, 2020
May 30, 2019

1.26

Sep. 12, 2019

1.36
2.13
1.94
2.48
2.03
2.03
1.57
1.57
4.50
5.38
5.50
4.75
6.00
6.13
5.13
6.25
4.63
4.00
4.00
3.13
4.75
4.50
5.25
5.00
4.00
2.50
2.50

Jun. 18, 2020
Dec. 9, 2022
Apr. 20, 2023
Apr. 20, 2026
Mar. 15, 2024
Mar. 8, 2024
Jun. 14, 2024
Jun. 12, 2024
Apr. 15, 2020
Jul. 30, 2022
Apr. 20, 2023
Sep. 19, 2024
Jul. 30, 2025
Apr. 20, 2025
Sep. 19, 2027
Apr. 15, 2028
Apr. 15, 2020
Jul. 30, 2022
Apr. 20, 2023
Sep. 19, 2025
Jul. 30, 2025
Apr. 20, 2025
Jul. 30, 2027
Apr. 15, 2028
Sep. 19, 2029
Dec. 17, 2021
Feb. 9, 2022

44th Unsecured Straight Bond. . . . . . . . . . . . . . . . . . . . . . . Nov. 29, 2013
45th Unsecured Straight Bond. . . . . . . . . . . . . . . . . . . . . . . May 30, 2014

¥ 50,000 million¥300,000 million¥ 399,831(399,831)
49,915299,160

46th Unsecured Straight Bond. . . . . . . . . . . . . . . . . . . . . . . Sep. 12, 2014

¥400,000 million

398,54847th Unsecured Straight Bond. . . . . . . . . . . . . . . . . . . . . . .
48th Unsecured Straight Bond. . . . . . . . . . . . . . . . . . . . . . .
49th Unsecured Straight Bond. . . . . . . . . . . . . . . . . . . . . . .
50th Unsecured Straight Bond. . . . . . . . . . . . . . . . . . . . . . .
51st Unsecured Straight Bond . . . . . . . . . . . . . . . . . . . . . . .
52nd Unsecured Straight Bond . . . . . . . . . . . . . . . . . . . . . .
53rd Unsecured Straight Bond . . . . . . . . . . . . . . . . . . . . . . .
54th Unsecured Straight Bond. . . . . . . . . . . . . . . . . . . . . . .
USD-denominated Senior Notes due 20208 . . . . . . . . . . . . .
USD-denominated Senior Notes due 20229,10 . . . . . . . . . . .
USD-denominated Senior Notes due 2023. . . . . . . . . . . . . .
USD-denominated Senior Notes due 202410 . . . . . . . . . . . .
USD-denominated Senior Notes due 20259,10 . . . . . . . . . . .
USD-denominated Senior Notes due April 2025 . . . . . . . . .
USD-denominated Senior Notes due 202710 . . . . . . . . . . . .
USD-denominated Senior Notes due 20289 . . . . . . . . . . . . .
Euro-denominated Senior Notes due 20208 . . . . . . . . . . . . .
Euro-denominated Senior Notes due 20229 . . . . . . . . . . . . .
Euro-denominated Senior Notes due 2023 . . . . . . . . . . . . .
Euro-denominated Senior Notes due 202510 . . . . . . . . . . . .
Euro-denominated Senior Notes due 20259 . . . . . . . . . . . . .
Euro-denominated Senior Notes due April 202510 . . . . . . . .
Euro-denominated Senior Notes due 20279 . . . . . . . . . . . . .
Euro-denominated Senior Notes due 20289 . . . . . . . . . . . . .
Euro-denominated Senior Notes due 202910 . . . . . . . . . . . .
1st Unsecured Subordinated Corporate Bond . . . . . . . . . . .
2nd Unsecured Subordinated Corporate Bond . . . . . . . . . . .
1st Unsecured Subordinated Bonds with interest deferrable
clause and early redeemable option(with a subordination provision)11,12 . . . . . . . . . . . . . . . . . .
2nd Unsecured Subordinated Bonds with interest deferrable
clause and early redeemable option(with a subordination provision)11,13 . . . . . . . . . . . . . . . . . .
3rd Unsecured Subordinated Bonds with interest deferrable
clause and early redeemable option(with a subordination provision)11,14 . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Jun. 18, 2015
Dec. 10, 2015
Apr. 20, 2016
Apr. 20, 2016
Mar. 16, 2017
Mar. 8, 2017
Jun. 20, 2018
Jun. 12, 2018
Apr. 23, 2013
Jul. 28, 2015
Apr. 20, 2018
Sep. 19, 2017
Jul. 28, 2015
Apr. 20, 2018
Sep. 19, 2017
Apr. 3, 2018
Apr. 23, 2013
Jul. 28, 2015
Apr. 20, 2018
Sep. 19, 2017
Jul. 28, 2015
Apr. 20, 2018
Jul. 28, 2015
Apr. 3, 2018
Sep. 19, 2017
Dec. 19, 2014
Feb. 9, 2015

¥100,000 million¥370,000 million¥ 20,000 million¥ 30,000 million¥400,000 million¥ 50,000 million¥410,000 million¥ 40,000 million–$
819 million$
300 million$ 1,350 million$
712 million$
450 million$ 2,000 million$
500 million–€
287 million€ 1,000 million€ 1,500 million€
689 million€
450 million€
211 million€ 1,174 million€
750 million¥400,000 million¥450,000 million

99,438366,870
19,932
29,877395,71349,809––262,743
86,069–141,684
74,678–209,863
52,516
81,13536,994–
193,399
88,857–
27,117
151,51396,637395,983445,276

49,950299,935(299,935)
399,573(399,573)
99,697367,541
19,94629,892396,438
49,841
405,569
39,848–81,78332,949132,694
75,47549,385201,22154,874–35,395
123,269
135,615
84,94348,07325,917
144,577
84,925397,078446,508

Sep. 16, 2016

¥ 55,600 million

55,101

55,122496,639

3.00

Sep. 13, 2041

Sep. 16, 2016

¥ 15,400 million

15,257

15,262

137,508

3.50

Sep. 16, 2043

Sep. 30, 2016

¥400,000 million

392,786
4,916,701(399,831)

393,094
4,776,389(699,508)

3,541,706
43,034,408(6,302,442)

3.00

Sep. 30, 2041

142

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Company name / Name of bondEssential Information

Growth Strategy

Management Organization

Balance of issue
amount6

Date of issuance

Financial Section

Corporate Information

As of March 31, 2018
(Millions of yen)7

As of March 31, 2019
(Millions of yen)7

As of March 31, 2019
(Thousands of U.S. dollars)7

Interest rate (%)

Date of maturity

143

Sprint Corporation
7.25% Senior notes due 2021. . . . . . . . . . . . . . . . . . . . . . . Sep. 11, 2013$

2,250 million

237,409

248,095

2,235,291

7.25

Sep. 15, 2021

7.875% Senior notes due 2023. . . . . . . . . . . . . . . . . . . . . . Sep. 11, 2013$

4,250 million

447,645467,008

4,207,658

7.88

Sep. 15, 2023

7.125% Senior notes due 2024. . . . . . . . . . . . . . . . . . . . . . Dec. 12, 2013$

2,500 million

263,145

274,486

2,473,070

7.13

Jun. 15, 2024

7.625% Senior notes due 2025. . . . . . . . . . . . . . . . . . . . . . Feb. 24, 2015$

1,500 million

157,842

164,619

1,483,188

7.63

Feb. 15, 2025

7.625% Senior notes due 2026. . . . . . . . . . . . . . . . . . . . . . Feb. 22, 2018$

1,500 million

156,825

163,560

1,473,646

7.63

Mar. 1, 2026

1,262,866

1,317,768

11,872,853

300 million

31,79933,265(33,265)

299,712(299,712)

4.75

Dec. 17, 2019–

190,396(190,396)

–

–

9.00

Nov. 15, 2018

7.00

Mar. 1, 2020

Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sprint Communications, Inc.15
Export Development
Canada Facility (Tranche 3)16,17 . . . . . . . . . . . . . . . . . . . . . . . Dec. 17, 2014$

9% Guaranteed notes due 201818. . . . . . . . . . . . . . . . . . . . Nov. 9, 2011
7% Guaranteed notes due 2020 . . . . . . . . . . . . . . . . . . . . . Mar. 1, 2012$

1,000 million

109,027

112,422(112,422)

1,012,902(1,012,902)

7% Senior notes due 2020 . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 14, 2012$

1,500 million

161,858

167,809

1,511,929

7.00

Aug. 15, 2020

11.5% Senior notes due 2021. . . . . . . . . . . . . . . . . . . . . . . Nov. 9, 2011$

1,000 million

124,292

124,865

1,125,011

11.50

Nov. 15, 2021–

23,549––9.25

Apr. 15, 2022

2,280 million

240,247

250,672

2,258,510

6.00

Nov. 15, 2022

881,168(190,396)

689,033(145,687)

6,208,064(1,312,614)

9.25% Secured debentures due 202219 . . . . . . . . . . . . . . . . Apr. 15, 1992
6% Senior notes due 2022 . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 14, 2012$

Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sprint Capital Corporation15
6.9% Senior notes due 2019. . . . . . . . . . . . . . . . . . . . . . . . May 6, 1999$

1,729 million

185,047

192,058(192,058)

1,730,408(1,730,408)

6.90

May 1, 20196.875% Senior notes due 2028. . . . . . . . . . . . . . . . . . . . . . Nov. 16, 1998$

2,475 million

247,649

249,158

2,244,869

6.88

Nov. 15, 2028

8.75% Senior notes due 2032. . . . . . . . . . . . . . . . . . . . . . . Mar. 14, 2002$

2,000 million

225,845

226,632

2,041,914

8.75

Mar. 15, 2032

658,541

667,848(192,058)

6,017,191(1,730,408)

105,050(50)

130,000(5,000)1,171,277(45,049)

Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

105,050(50)

130,000(5,000)1,171,277(45,049)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥7,824,326(590,277)¥ 7,581,038(1,042,253)$68,303,793(9,390,513)

Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other companies
Straight Bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 30, 2015 – Dec. 6, 2018

¥130,000 million

0.04– 0.50Oct. 31, 2018 – Dec 6, 2028

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Notes:
6. Balance of issue amount is as of March 31, 2019.
7. Figures in parentheses as of March 31, 2018 and March 31, 2019 represent the current portion.
8. The date of maturity is April 15, 2020, however, the entire amount was redeemed early on May 21, 2018.
9. On March 7, 2018, SoftBank Group Corp. announced an exchange offer with respect to newly issued notes (the “Exchange Notes”) or aconsent solicitation for an amendment of terms and conditions, to the bondholders of foreign-currency-denominated senior notes issued in2015 (the “Existing Notes”). Issuance of the Exchange Notes to the bondholders who tendered for exchange the Existing Notes to the
Exchange Notes was completed on April 3, 2018, however, under requirements of IFRSs, the extinguishment of the Existing Notes and theexchange to the Exchange Notes, was considered to be satisfied on March 22, 2018, the exchange decision date. As a result, SoftBank Group
Corp. derecognized the Existing Notes and recognized the Exchange Notes.
10. On January 28, 2019, SoftBank Group Corp. conducted the purchase of a portion of the senior notes. The carrying amounts of these notes,
equivalent to these face amounts, were reduced since the extinguishment of these notes as financial liabilities are considered to be satisfied
under requirements of IFRSs.
11. The interest rate stated above is at the time of issuance. The bond has a step-up coupon provision and its interest rate may increase in the future.
12. The bond has an early redeemable option at the Company’s discretion from September 16, 2021 and each interest date on or after September
16, 2021.
13. The bond has an early redeemable option at the Company’s discretion from September 16, 2023 and each interest date on or after September
16, 2023.
14. The bond has an early redeemable option at the Company’s discretion from September 30, 2021 and each interest date on or after September
30, 2021.
15. Sprint Communications, Inc. and Sprint Capital Corporation are Sprint Corporation’s subsidiaries.
16. The interest rates are floating interest rates, and the above interest rates represent the rates as of March 31, 2019.
17. Collateral is pledged against these bonds. The details are described in “(5) Assets pledged as collateral.”
18. The balance of issue amount as of March 31, 2017 is $3,000 million. The date of maturity is November 15, 2018, however, a total amount of$1,247 million was redeemed early on May 23, 2017 and February 23, 2018.
19. On December 31, 2018, Sprint defeased the $200 million of note which included the deposit of U.S.Treasury securities with the trustee toprovide for the future interest and principal payments on the note. The defeasance resulted in derecognition of related financial assets andfinancial liabilities.

Management Organization

Financial Section

144

The Company accounts for the variable prepaid forward contract by bifurcating it into the main contractand embedded derivatives. The Company received ¥578,436 million and initially recognized ¥674,023 million
as financial liabilities relating to the sale of shares through the variable prepaid forward contract and ¥95,587
million as derivative assets. Subsequent to initial recognition, financial liabilities relating to the sale of sharesthrough the variable prepaid forward contract are measured at amortized cost and embedded derivatives aremeasured at fair value; ¥730,601 million ($6,582,584 thousand) is recognized as the current portion offinancial liabilities relating to the sale of shares through the variable prepaid forward contract in interestbearing debt (current liabilities) (¥688,332 million recognized as financial liabilities relating to the sale ofshares through the variable prepaid forward contract in interest-bearing debt (non-current liabilities) as ofMarch 31, 2018) and ¥749,846 million ($6,755,978 thousand) is recognized as derivative financial liabilities(current liabilities) in the consolidated statement of financial position as of March 31, 2019 (¥714,126 million
recognized as derivative financial liabilities (non-current liabilities) as of March 31, 2018); ¥2,876 million($25,912 thousand) is recognized as a derivative gain in the consolidated statement of income for the fiscal
year ended March 31, 2019 (¥604,156 million of derivative loss for the fiscal year ended March 31, 2018).
Alibaba shares held by WRH LLC are pledged as collateral. The carrying amount of Alibaba shares pledged
as collateral by the Company is as follows.

(2) Transaction for sale of Alibaba shares by variable prepaid forward contract
On June 10, 2016, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company,
entered into a variable prepaid forward contract to sell Alibaba shares with a newly formed trust, Mandatory
Exchangeable Trust (the “Trust”), and received proceeds of ¥578,436 million ($5.4 billion) as advances
received on the sale.
The Trust, on the other hand, utilized Alibaba shares scheduled to be transferred from WRH LLC at thetime of settlement under the contract and issued $6.6 billion of Mandatory Exchangeable Trust Securities(“Trust Securities”) which are mandatorily exchangeable into American Depositary Shares (“ADSs”) of
Alibaba. The proceeds from the sale received by WRH LLC from the Trust was $5.4 billion, which is after
certain amounts from the $6.6 billion total of Trust Securities were deducted in order to purchase U.S.
Treasury securities, which would fund distributions on the Trust Securities, and to cover expenses for theissuance of the Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conductedconcurrently with the exchange of Trust Securities. At the exchange date, which is expected to be June 3,
2019, Trust Securities are exchanged for a certain number of ADSs, determined by reference to the trading
price of the ADSs at that time, and the number of Alibaba shares sold by the variable prepaid forward
contract is determined by this number of ADSs. A cap and a floor are set for the number of shares settled,
and the variable prepaid forward contract is classified as a hybrid financial instrument with embedded
derivatives of a collar transaction.

Corporate Information(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019–

¥224,201$2,020,011

217,182

39,256353,689

Fiscal year ended
March 31, 2018

Assets classified as held for sale* . . . . . . . . . . . .
Investments accounted for using theequity method . . . . . . . . . . . . . . . . . . . . . . . . .

¥

Note:
* The Company reclassified Alibaba shares subject to the settlement from “Investments accounted for using the equity method” to “Assets
classified as held for sale” in the consolidated statement of financial position as of March 31, 2019. The details are described in “Note 14. Assets
classified as held for sale.”

The variable prepaid forward contract was settled by 73, 240,200 shares of Alibaba (equivalent to 2.8
percent of voting right of Alibaba as of March 31, 2019) on June 3, 2019. The details of the impact on thefinancial results are described in “(3) Settlement of the transaction for sale of Alibaba shares by variable
prepaid forward contract” under “Note 52. Subsequent events.”

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Outline of the transaction

wholly-owned subsidiaryWest Raptor Holdings, LLC
Approximately $5.4 billion for advances
received for the sale of Alibaba sharesby variable prepaid forward contract

Alibaba shares pledged
as collateral by variable
prepaid forward contract

subsidiary
third party to
SoftBank

Mandatory Exchangeable Trust$6.6 billion for the total
issuance amount ofTrust Securities

Offering of Mandatory
Exchangeable Trust Securities(“Trust Securities”)

Investors(3) Financial covenantsa. Financial covenants on interest-bearing debts of SoftBank Group Corp.
SoftBank Group Corp.’s interest-bearing debt includes financial covenants and the major financial
covenants are as follows:(a) The amount of SoftBank Group Corp.’s net assets at the end of the fiscal year must not fall below
75% of SoftBank Group Corp.’s net assets at the end of the previous year.
(b) The consolidated statement of financial position of the Company at the end of the fiscal year must
not show a net capital deficiency. The statement of financial position of SoftBank Corp. at the endof the fiscal year must not show a net capital deficiency.
(c) In the Company’s consolidated statement of income, operating income (loss) or net income (loss)
attributable to the owner of the parent company must not result in losses for two consecutive years.
(d) Adjusted net interest-bearing debts1 or leverage ratios2 designated in the loan agreement must notexceed certain respective amounts or numbers at the end of each annual reporting period and at
the end of the second quarter.
Notes:
1. Adjusted net interest-bearing debts:
Amounts deducting cash and cash equivalents from interest-bearing debts in the consolidated statement of financial position.
Certain adjustments are made such as excluding certain listed subsidiaries such as Sprint from the subject.
2. Leverage ratio:
Adjusted net interest-bearing debt / adjusted EBITDA3
3. Adjusted EBITDA:
Certain adjustments are made to EBITDA such as excluding listed subsidiaries such as Sprint.

Management Organization

Financial Section

Corporate Information

145

b. Financial covenants on interest-bearing debts of SoftBank Corp.
Major covenants on the interest-bearing debt issued by SoftBank Corp. are as follows:(a) The amount of SoftBank Corp.’s equity in the consolidated statement of financial position at theend of the fiscal year and at the end of the second quarter must not fall below 75% of SoftBank
Corp.’s equity at the end of the previous year and the second quarter.
(b) The amount of SoftBank Corp.’s net assets in the non-consolidated balance sheet at the end of the
fiscal year and at the end of the second quarter must not fall below 75% of SoftBank Corp.’s net
assets at the same dates during the previous year and the second quarter.
(c) In the SoftBank Corp.’s consolidated statement of income, operating income (loss) or net income(loss) must not result in losses for two consecutive years.
(d) In the SoftBank Corp.’s non-consolidated statement of income, operating income (loss) or net
income (loss) must not result in losses for two consecutive years.
(e) Net leverage ratios1 of SoftBank Corp. must not exceed certain numbers at the end of the fiscal
year and at the end of the second quarter.
Notes:
1. Net leverage ratio:
Net debt2 / adjusted EBITDA3
2. Net debt:
The amount of interest-bearing debt shown in SoftBank Corp.’s consolidated statement of financial position after deducting cash
and cash equivalents adjusted for certain items. Interest-bearing debt is adjusted for certain items such as an exclusion ofinterest-bearing debt resulting from financing transactions using an asset securitization scheme.
3. Adjusted EBITDA:
EBITDA adjusted for certain items as specified in the loan agreement with financial institutions.

c. Financial covenants on interest-bearing debts of Sprint
Major covenants on the interest-bearing debt issued by Sprint are as follows:(a) Holders of a portion ($23.9 billion) of interest-bearing debts of Sprint are provided with the right torequire Sprint to repurchase the interest-bearing debts if there is a change of control and if there is a
decline, to a certain extent, in ratings of the applicable interest-bearing debts by the Rating Services.
(b) It is required that as of the last day of each quarter, Sprint’s ratio of total indebtedness1 to adjusted
EBITDA2 should not exceed a certain threshold level. Exceeding the ratio could result in thematurities being accelerated. The limit for the ratio was 3.75 as of March 31, 2019.
Notes:
1. Total indebtedness:
The sum of Sprint’s outstanding debt (excluding trade payables) and guarantee of indebtedness, with certain adjustments definedin contracts with lenders.
2. Adjusted EBITDA:
Trailing four quarters EBITDA including adjustments defined in contract with lenders.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy(4) Borrowings related to equity securities lending contract

Management Organization

Financial Section

Liabilities related to these assets pledged as collateral are as follows:

The Company entered into a securities lending contract regarding stocks of certain subsidiaries. As of March
31, 2019, the amount of the cash received is recognized as short-term borrowings of ¥199,200 million($1,794,756 thousand) (as of March 31, 2018: ¥399,200 million) and included in interest-bearing debt.

(5) Assets pledged as collateral
Assets pledged as collateral for liabilities are as follows:

As ofMarch 31, 2018

Cash and cash equivalents . . . . . . . . . . . . . . . . .
Trade and other receivables . . . . . . . . . . . . . . . . .
Other financial assets (current) . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . .
Assets classified as held for sale1 . . . . . . . . . . . . .
Property, plant and equipment . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . .
Investments accounted for using the equity
method1,2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments from SoftBank Vision Fund and Delta
Fund accounted for using FVTPL3 . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

5,698
13,013
5,323
4,447
–
–
603,477
5,409

146

Corporate Information(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019

¥

7,461
14,202
12,280–1,640
224,201
638,388
8,147$

67,222
127,957
110,641–
14,7772,020,011
5,751,761
73,403

580,566

559,656

5,042,400

718,803
10,004¥1,946,740–
10,352¥1,476,327–
93,270$13,301,442

As ofMarch 31, 2018

Interest-bearing debt
Short-term borrowings3 . . . . . . . . . . . . . . . . . .
Current portion of long-term borrowings3 . . . .
Current portion of financial liabilities relating
to sale of shares by variable prepaid forward
contract1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Installment payables (current) . . . . . . . . . . . . .
Long-term borrowings2, 3 . . . . . . . . . . . . . . . . .
Financial liabilities relating to sale of shares by
variable prepaid forward contract1 . . . . . . . . .
Installment payables (non-current) . . . . . . . . . .
Derivative financial liabilities (non-current) . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥83,952438,979(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019

¥

4,472
140,077$

40,292
1,262,069–
555
1,126,104

730,601
623
811,865

6,582,584
5,613
7,314,758

688,332
2,197–¥2,340,119

–
1,672
278
¥1,689,588–
15,064
2,505$15,222,885

Notes:
1. ¥263,457 million ($2,373,700 thousand) (as of March 31, 2018: ¥217,182 million) of Alibaba shares (carrying amount on a consolidated basis)is pledged as collateral for ¥730,601 million ($6,582,584 thousand) (as of March 31, 2018: ¥688,332 million) of financial liability for variable
prepaid forward contract as of March 31, 2019. The details are described in “(2) Transaction for sale of Alibaba shares by variable prepaid
forward contract.”
2. ¥520,400 million ($4,688,711 thousand) (as of March 31, 2018: ¥363,384 million) of Alibaba shares (carrying amount on a consolidated basis) heldby a wholly-owned subsidiary of the Company, is pledged as collateral for ¥557,152 million ($5,019,840 thousand) (as of March 31, 2018: ¥842,313
million) of long-term borrowings of the subsidiary as of March 31, 2019. The borrowings include an early settlement clause and an early settlement
may be elected by the creditors under certain circumstances such as a significant decrease in the fair value of pledged Alibaba shares. The borrowings
are non-recourse debts, and therefore, SoftBank Group Corp. will not be responsible for the borrowings. The creditors would be able to dispose theasset pledged as collateral upon a circumstance where the early settlement was demanded and the subsidiary did not repay the borrowings,
accordingly.
3. Investments from SoftBank Vision Fund and Delta Fund aggregating ¥718,803 million accounted for using FVTPL are pledged as collateral for¥498,407 million of interest-bearing debt of SoftBank Vision Fund and Delta Fund, which is entire amount of interest-bearing debt of SoftBank
Vision Fund and Delta Fund as of March 31, 2018. The details are described in “Notes 3” under “(1) Components of interest-bearing debt.”

SoftBank Group Corp.
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Other than the above, the following assets are pledged as collateral.
a. Sprint
As of March 31, 2019, approximately $71.0 billion (as of March 31, 2018: approximately $67.0 billion)(before consolidation adjustments) in the assets of Sprint is pledged as collateral for approximately$11.5 billion (as of March 31, 2018: approximately $10.4 billion) borrowing and corporate bonds.
b. Brightstar
As of March 31, 2019, $1.8 billion (as of March 31, 2018: $2.0 billion) (before consolidation adjustments) of the assets of Brightstar were pledged as collateral on the $0.5 billion (as of March 31, 2018:$0.4 billion) borrowing.
c. Fortress
As of March 31, 2019, based on a term loan agreement of $1.2 billion (as of March 31, 2018: $1.4
billion) which was entered into to finance the acquisition of Fortress; the equity interests of Fortressand four wholly-owned subsidiaries within the acquisition structure are pledged as collateral.
d. Other
As of March 31, 2019, ¥61,595 million ($554,960 thousand) (as of March 31, 2018: ¥62,961 million) ofinvestment securities is pledged as collateral for financing and exchange settlement by a subsidiary
operating banking business. Also, other financial assets (non-current) include ¥77,655 million ($699,658
thousand) (as of March 31, 2018: ¥40,259 million) of margin deposits with central counterparties.

(6) Assets with limited property rights

Management Organization

Financial Section

Corporate Information

147

Liabilities related to the assets with limited property rights above are as follows:

Interest-bearing debt
Current portion of installment payables . . . . . .
Installment payables . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥15,857
8,060¥23,917¥7,601686¥8,287$68,483
6,181$74,664

Other than the above, the lessor retains the property rights of leased assets in finance lease obligations.
The details are described in “Note 15. Property, plant and equipment,” “Note 16. Goodwill and intangible
assets” and “Note 17. Leases.”(7) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the consolidated statement of cash
flows are as follows:

Net decrease of short-term borrowings . . . . . . . .
Net increase (decrease) of commercial paper . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(60,829)
20,000¥(40,829)¥ (7,411)(58,000)¥(65,411)$ (66,771)(522,570)$(589,341)

Assets with limited property rights due to the installment purchase are as follows:

Property, plant and equipment . . . . . . . . . . . . . .
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥62,260
19,737¥81,997¥15,861
4,666¥20,527$142,905
42,040$184,945(8) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the consolidated statement of cash flows are
as follows:

Proceeds from borrowings . . . . . . . . . . . . . . . . .
Proceeds from issuance of corporate bonds. . . . .
Proceeds from sale-leaseback of newly
acquired equipment . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥7,176,036
899,079¥4,959,821
747,744$44,687,098
6,737,039

472,231¥8,547,346

481,547¥6,189,112

4,338,652$55,762,789

SoftBank Group Corp.
ANNUAL REPORT 2019

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Management Organization

Financial Section

Corporate Information(9) Components of repayment of interest-bearing debt

26. Other current liabilities and other non-current liabilities

The components of “Repayment of interest-bearing debt” in the consolidated statement of cash flows are
as follows:

The components of other current liabilities and other non-current liabilities are as follows:

Repayment of long-term borrowings. . . . . . . . .
Redemption of corporate bonds . . . . . . . . . . . .
Payment of lease obligations . . . . . . . . . . . . . . .
Payment of installment payables . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(4,988,513)(474,975)(502,520)(37,180)¥(6,003,188)¥(5,526,771)(1,061,732)(521,205)(18,671)¥(7,128,379)$(49,795,216)(9,566,015)(4,695,964)(168,222)$(64,225,417)

24. Deposits for banking business
The components of deposits for a banking business are as follows:

Ordinary deposits . . . . . . . . . . . . . . . . . . . . . . . .
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥573,749
110,342¥684,091¥643,249
102,694¥745,943$5,795,558
925,255$6,720,813(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥1,624,367
191,643¥1,816,010¥1,697,556
212,052¥1,909,608$15,294,675
1,910,551$17,205,226

The amounts are related to The Japan Net Bank, Limited.

25. Trade and other payables
The components of trade and other payables are as follows:

Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019

¥

6,738
–
225,036
173,624
119,525
74,21659,822¥658,961¥ 428,796
252,81235,339201,979
112,090
69,97757,362¥1,158,355$ 3,863,375
2,277,791
318,398
1,819,795
1,009,911
630,480
516,821$10,436,571

96,45752,051
155,407¥303,915

26,51538,235
193,830¥ 258,580

238,895
344,490
1,746,374$ 2,329,759

As ofMarch 31, 2018

Current
Withholding income tax1 . . . . . . . . . . . . . . . . .
Contract liabilities2 . . . . . . . . . . . . . . . . . . . . .
Deferred revenue. . . . . . . . . . . . . . . . . . . . . . .
Short-term accrued employee benefits . . . . . .
Consumption tax payable and other . . . . . . . .
Accrued interest expense . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current
Deferred revenue. . . . . . . . . . . . . . . . . . . . . . .
Unfavorable lease contracts3 . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

148

Notes:
1. Withholding income tax as of March 31, 2019 includes the amount of ¥422,648 million ($3,807,983 thousand) which is related to dividends
within the group companies. The Company paid the withholding income tax in April, 2019.
2. Contract liabilities are recognized as liabilities as a result of applying IFRS 15, “Revenue from contracts with customers.”
3. Unfavorable lease contracts were recognized as liabilities based on the estimated fair value of the unfavorable portion of future cash flows if, at
the time of the business combination of Sprint, the terms of operating lease contracts in which the acquiree is the lessee are unfavorable
compared to market terms. Reversal of unfavorable lease contracts is recorded as a deduction of operating lease expense.

SoftBank Group Corp.
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Financial Section

Corporate Information

149

27. Provisions
The changes in the provisions are as follows:(Millions of yen)
Asset retirement
obligations

Restructuringprovisions

Provision for loss oninterest repayment

Other

Total

As of April 1, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition of provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest due to passage of time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reversal of provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in estimate1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥120,596
10,344
5,096(4,123)–
10,8172,928
32¥145,690¥ 40,818
4,971
1,940
(6,738)(12,791)
(246)
1,816
–
¥ 29,770¥14,055––(2,037)(1)–––¥12,017¥ 22,379
5,823
329(12,023)(3,304)82354
46¥ 13,686¥197,848
21,1387,365(24,921)(16,096)
10,6535,098
78¥201,163

Current liabilities
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 12,811
132,879¥145,690¥ 17,722
12,048¥ 29,770¥ 2,054
9,963¥12,017¥ 11,098
2,588¥ 13,686¥43,685
157,478¥201,163

Asset retirement
obligations

Restructuringprovisions

Provision for loss oninterest repayment

Other

Total

1,086,548
93,19845,914(37,147)–
97,45926,381288
1,312,641$ 367,763
44,78817,479(60,709)(115,245)(2,216)
16,362–$ 268,222$126,633––(18,353)(9)–––$108,271$ 201,631
52,464
2,964(108,325)(29,768)
739
3,189
415
$ 123,309$1,782,575
190,450
66,357(224,534)(145,022)
95,98245,932703$1,812,443

115,425
1,197,216
1,312,641$ 159,672
108,550$ 268,222$ 18,506
89,765$108,271$ 99,991
23,318$ 123,309$ 393,594
1,418,849$1,812,443(Thousands of U.S. dollars)

As of April 1, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition of provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest due to passage of time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reversal of provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in estimate1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current liabilities
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

$
$
$

Notes:
1. SoftBank Corp. assessed the demand of communication traffic, efficient operation of communication equipment, and equipment replacement, etc. in its evaluation of provisions. As a result, it believes that it has become highly probable that certain communications equipment will be disposed of, and
SoftBank Corp. recognized asset retirement obligations of ¥13,463 million ($121,299 thousand).

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

Asset retirement obligations

28. Retirement benefits

Asset retirement obligations are recognized by the reasonably estimated amount required for the removal ofequipment, such as part of base stations, certain offices (including the head office), data centers and network
centers. The estimate is based on the assumption at present and is subject to changes depending on revised
future assumptions.

The Company primarily has defined contribution pension plans for its employees.

(1) Defined contribution plans
Retirement benefit cost of defined contribution plans is as follows:(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥13,888¥16,132$145,346

Restructuring provision
The restructuring provision consists mainly of a network shutdown provision and backhaul2 access provision.
(Network shutdown provision)
The network shutdown provision resulted from Sprint recognizing lease exit costs mainly related to the
shutdown of the Nextel and Clearwire platform. The majority of the remaining network shutdown provision is
expected to be utilized within 4 years. The amount and timing of these costs are estimated based uponcurrent network plans which are subject to modification.
(Backhaul access provision)
The backhaul access provision reflects exit costs related to payments that will continue to be made under
Sprint’s backhaul access contracts for which it will no longer be receiving any economic benefit. The majorityof the backhaul access provision relates to Sprint’s network modernization activities and is expected to be
utilized by December 31, 2020. The amount and timing of these costs are estimated based upon current
network plans which are subject to modifications.
Notes:
2. Backhaul is an intermediary network that connects the cell towers to the local switching center.

Provision for loss on interest repayment
Provision for loss on interest repayment is recorded based on an amount representing future expected claims
in order to prepare for future claims by debtors and others, for repayment of interest paid in excess of the rate
permitted under the Interest Rate Restriction Act. The amount of claims for the interest repayment mightfluctuate from changes in market environment and other factors.

150

Retirement benefit cost of defined
contribution plans . . . . . . . . . . . . . . . . . . . . . . .

(2) Defined benefit plans(Japan)SoftBank Corp. has frozen its defined benefit lump-sum plans since March 2006 and 2007. All of theemployees who worked at SoftBank Corp. at the time when the defined benefit lump-sum plans were frozen
are still maintained within the frozen defined benefit lump-sum plans.
SoftBank Corp. is responsible for providing the defined benefit lump-sum plans to recipients directly.
Obligations for the frozen defined benefit lump-sum plans are recognized as defined benefit liabilities until
the benefits are paid to employees in the form of a lump sum payment at the time of retirement.
(U.S.)
Sprint has a defined benefit pension plan for certain employees. Sprint has frozen its defined benefit pension
plan since December 2005. Obligations for the frozen defined benefit pension plan are recognized as defined
benefit liabilities until the benefits are paid to employees at the time of retirement.

SoftBank Group Corp.
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Management Organization

a. Changes in the present value of defined benefit obligations and the fair value of plan assets
Changes in the present value of defined benefit obligations and the fair value of plan assets are as
follows:(Millions of yen)

Changes in the present value of
defined benefit obligations:
As of April 1, 2017 . . . . . . . . . . . . . . . .
Business combination . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . .
Remeasurements:
Actuarial losses arising from changes
in demographic assumptions . . . .
Actuarial losses arising from changes
in financial assumptions . . . . . . . .
Experience adjustments . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . .
Exchange differences . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2018 . . . . . . . . . . . . . .

Japan

U.S.

Total

¥15,133¥ 93,039¥ 108,172

15,133254745
46244,404–
1
10,157

259,537254
746
10,203–(2,031)(2,031)

100
(7)
(925)
–
6
15,352

6,897
1,192(9,601)(13,283)(272)
237,464

6,997
1,185
(10,526)(13,283)(266)
252,816

Changes in the fair value of plan assets:
As of April 1, 2017 . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . .
Remeasurements:
Return on plan assets . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . .
Exchange differences . . . . . . . . . . . . .
As of March 31, 2018 . . . . . . . . . . . . . .

––(151,365)(6,359)(151,365)(6,359)–––––(6,446)
8,389(5,023)8,474(152,330)(6,446)
8,389(5,023)8,474(152,330)

Defined benefit liabilities, net
As of March 31, 2018 . . . . . . . . . . . . . .

¥15,352¥ 85,134¥ 100,486

151

Corporate Information

For the fiscal year ended March 31, 2019
(Millions of yen)

Defined benefit liabilities, net
As of April 1, 2018 . . . . . . . . . . . . . . . .

For the fiscal year ended March 31, 2018

Defined benefit liabilities, net
As of April 1, 2017 . . . . . . . . . . . . . . . .

Financial Section

Changes in the present value of
defined benefit obligations:. . . . . . . . . . .
As of April 1, 2018 . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . .
Remeasurements:
Actuarial losses arising from changes
in demographic assumptions . . . .
Actuarial losses arising from changes
in financial assumptions . . . . . . . .
Experience adjustments . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . .
Exchange differences . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . .
Changes in the fair value of plan assets:
As of April 1, 2018 . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . .
Remeasurements:
Return on plan assets . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . .
Exchange differences . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . .
Defined benefit liabilities, net
As of March 31, 2019 . . . . . . . . . . . . . .

Japan

U.S.

Total

¥15,352¥ 85,134¥ 100,486

15,352758
35

237,464–
9,938

252,816
758
9,973

–

(1,628)(1,628)–(1)(1,105)–(238)
14,80121
1,406(10,032)
10,571(320)
247,420

21
1,405(11,137)
10,571(558)
262,221––(152,330)(6,499)(152,330)(6,499)

–
–
–
–
–

2,296
8,847
(8,426)(6,758)(162,870)

2,296
8,847
(8,426)(6,758)(162,870)¥14,801¥ 84,550¥ 99,351

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy

Management Organization(Thousands of U.S. dollars)

Defined benefit liabilities, net
As of April 1, 2018 . . . . . . . . . . . . . . . .
Changes in the present value of
defined benefit obligations:
As of April 1, 2018 . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . .
Remeasurements:
Actuarial losses arising from changes
in demographic assumptions . . . .
Actuarial losses arising from changes
in financial assumptions . . . . . . . .
Experience adjustments . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . .
Exchange differences . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . .
Changes in the fair value of plan assets:
As of April 1, 2018 . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . .
Remeasurements:
Return on plan assets . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . .
Exchange differences . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . .

Japan

U.S.

$138,319$ 767,042

Total

$

905,361

Financial Section

152

Corporate Informationb. Fair value of plan assets
Fair value of plan assets is as follows:
As of March 31, 2018
(U.S.)(Millions of yen)

138,3196,829
315

2,139,508–
89,5402,277,827
6,829
89,855–(14,668)(14,668)–(9)(9,956)–(2,144)
133,354

189
12,668(90,387)
95,243(2,882)
2,229,211

189
12,659(100,343)
95,243(5,026)2,362,565––(1,372,466)(58,555)(1,372,466)(58,555)

–
–
–
–
–

20,68779,710(75,917)(60,889)(1,467,430)

20,68779,710(75,917)(60,889)(1,467,430)

U.S. equities . . . . . . . . . . . . . . . . . . . . . . .
International equities (other than U.S.) . . .
Fixed-income investments . . . . . . . . . . . . .
Real estate investments . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

Plan assets withquoted prices in
active markets

Plan assets without
quoted prices in
active markets

Total¥23,797
11,545––
1,772¥37,114¥ 26,08820
65,361
14,8598,888¥115,216¥ 49,885
11,56565,361
14,85910,660¥152,330

Plan assets withquoted prices in
active markets

Plan assets without
quoted prices in
active markets

Total¥26,067
11,207––
4,857¥42,131¥ 16,479
13,41570,145
15,322
5,378¥120,739¥ 42,546
24,622
70,145
15,322
10,235¥162,870

Plan assets withquoted prices in
active markets

Plan assets without
quoted prices in
active markets

Total$234,859
100,973––
43,761$379,593$ 148,473
120,867
631,994
138,048
48,455$1,087,837$ 383,332
221,840
631,994
138,048
92,216$1,467,430

As of March 31, 2019
(U.S.)(Millions of yen)

U.S. equities . . . . . . . . . . . . . . . . . . . . . . .
International equities (other than U.S.) . . .
Fixed-income investments . . . . . . . . . . . . .
Real estate investments . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Thousands of U.S. dollars)

Defined benefit liabilities, net
As of March 31, 2019 . . . . . . . . . . . . . .

$133,354$ 761,781$

895,135
U.S. equities . . . . . . . . . . . . . . . . . . . . . . .
International equities (other than U.S.) . . .
Fixed-income investments . . . . . . . . . . . . .
Real estate investments . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Financial Section

Management Organization

The targeted investment allocation ratio is set based on an asset allocation policy for the investment portfolio of the pension plan to achieve a long-term nominal rate of return, net of fees, which
exceeds the plan’s long-term expected rate of return on investments for funding purposes.
The plan’s long-term expected rate of return on investments for funding purposes is 7.25% as ofMarch 31, 2019 (7.50% as of March 31, 2018). The current targeted investment allocation ratio isdisclosed below. Actual allocations are allowed to deviate from target allocation percentages within arange for each asset class as defined in the investment policy.

Corporate Information

As of March 31, 2018
Effect on defined benefit obligations
Changesin rateDiscount rate . . . 0.5%
increase
0.5%
decreaseJapan

Decrease of¥490 million
Increase of¥522 million

U.S.

Decrease of¥15,830 million
Increase of¥17,636 million

Total

Decrease of¥16,320 million
Increase of¥18,158 million

As of March 31, 2019

Targeted investment allocation ratio (%)

U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International equities (other than U.S.) . . . . . . . . . . . . . . . . . .
Fixed-income investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As ofMarch 31, 2018

As ofMarch 31, 2019

38
16
37
9

38
16
37
9

Effect on defined benefit obligations
Changesin rateDiscount rate . . . 0.5%
increase
0.5%
decreaseJapan

Decrease of¥432 million
Increase of¥459 millionc. Actuarial assumptions

U.S.

Decrease of¥16,205 million
Increase of¥18,202 million

Total

Decrease of¥16,637 million
Increase of¥18,661 million

Effect on defined benefit obligations

The significant actuarial assumptions used to determine the present value of defined benefit obligations are as follows:
As of March 31, 2019

As of March 31, 2018

Discount rate (%) . . . . . .

153

Japan

U.S.

Japan

U.S.

0.2

4.1

0.2

4.1

d. Sensitivity analysis
Sensitivity is analyzed at the end of the period based on the movement of reasonably estimableassumptions. The sensitivity analysis assumes that actuarial assumptions other than those subject tothe analysis are constant, but in reality, the movement of other actuarial assumptions may change.
The effect of the movements in significant actuarial assumptions used to determine the defined
benefit obligations is as follows:

Changesin rate

Japan

U.S.

Total

Discount rate . . . 0.5%
increase
0.5%
decrease

Decrease of$3,892 thousand
Increase of$4,136 thousand

Decrease of$146,004 thousand
Increase of$163,996 thousand

Decrease of$149,896 thousand
Increase of$168,132 thousande. Effects on future cash flows(a) Funding policy for the plan and expected contributions to the plan for the next fiscal year
(U.S.)The policy is to contribute the necessary amount to the plan in order to meet the minimum funding
requirement, based on related regulations. The amount to be contributed to the plan for the year
ending March 31, 2020 is expected to be ¥7,841 million ($70,646 thousand).
(b) Maturity analysis of the defined benefit obligation(Japan)As of March 31, 2019, the weighted-average duration of the defined benefit obligation is 8.0 years.
(U.S.)
As of March 31, 2019, the weighted-average duration of the defined benefit obligation is 14.5 years.

SoftBank Group Corp.
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29. Financial instruments(1) Capital management
Our policy is to realize and maintain optimum capital composition to maintain mid- and long-term sustainablegrowth and maximize our corporate value.
Major indicators used for our capital management are as follows:• Equity capital• Equity capital ratio
Note:
Equity capital is the amount of “Equity attributable to owners of the parent.” Equity capital ratio represents “Equity attributable to owners of
the parent” divided by “Total liabilities and equity.”

Management Organization

Financial Section

Corporate Information

To manage this risk, the Company continuously monitors exchange rates and manages exchange
rate exposures. The Company also uses foreign currency forward contracts, foreign currency swap
contracts, and interest rate currency swap contracts to hedge the risk.
i. Foreign exchange sensitivity analysis
Exposure to foreign exchange risk on financial instruments related to U.S. dollars and Indian
Rupees, our major foreign currencies, for subsidiaries whose functional currency is Japanese yen is
as follows:
U.S. Dollar (Functional currency: Japanese yen)
(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥(341,860)¥198,110$1,784,936

227,303

6,906

62,222(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥136,000¥128,219$1,155,230

Equity capital and the equity capital ratio are as follows:

Equity capital . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity capital ratio (%) . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥5,184,176
16.6¥7,621,481
21.1$68,668,177

The Company is not subject to regulatory capital requirements imposed by outside institutions other than
general capital requirements under the Companies Act of Japan and other laws. Also, for details regarding
our financial covenants related to interest-bearing debt, please see “(3) Financial covenants” in “Note 23.
Interest-bearing debt”.

Net exposure affecting income
before income tax[in asset (liability) position]. . . . . . . . .
Net exposure affecting othercomprehensive income[in asset position] . . . . . . . . . . . . . . .

Indian Rupee (Functional currency: Japanese yen)

(2) Financial risk management
As we operate in a wide range of markets, the Company faces a variety of financial risks (foreign exchangerisk, price risk, interest rate risk, credit risk, and liquidity risk) in its operations. The Company manages its risks
based on established policies to prevent and reduce these financial risks.
Derivative transactions entered into by the Company are conducted and controlled based on the Company’s
internal rules and procedures for derivative transactions and are limited to the extent of actual demands.
a. Market risk(a) Foreign exchange risk
The Company is engaged in international businesses through investments, financial contributions
and the establishment of joint ventures. The Company undertakes transactions denominated inforeign currencies with foreign parties and, through lending to and borrowings from foreignsubsidiaries. Consequently, there is foreign exchange risk that arises from changes in currency rates
mainly in the U.S. dollar, Indian Rupee, and British pound.

154

Net exposure affecting income
before income tax[in asset position] . . . . . . . . . . . . . . .

Other than the tables presented above, major exposure to foreign exchange risk on subsidiaries
whose functional currency is not Japanese yen is as follows:
U.S. Dollar (Functional currency: British pound)

Net exposure affecting income
before income tax[in asset position] . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥58,785¥56,634$510,262

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Management Organization

Net exposure affecting income before income tax comprises the foreign exchange risk
exposures from monetary financial instruments denominated in a foreign currency (including thoseused in internal transactions) whose exchange differences are recognized in profit or loss and theforeign exchange risk exposures from derivatives related to forecast transactions.
Net exposure affecting other comprehensive income comprises the foreign exchange risk
exposures from available for sale financial assets whose exchange differences are recognized inother comprehensive income and foreign exchange risk exposures from derivatives (cash flow
hedge) related to forecasted transactions.
The table below presents the effect of a 1% appreciation of the Japanese yen on income
before income tax and other comprehensive income (before tax effect) regarding the financial
instruments with the above foreign exchange risk exposure, assuming that all other factors areconstant. The analysis does not include the effect of translating assets and liabilities of foreign
operations into the presentation currency, which is detailed in “(3) Foreign exchange sensitivity
analysis for exchange difference on translating foreign operations” under “Note 33. Foreign
currency exchange rates.”(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥ 3,419¥(1,981)$(17,848)(2,273)

(69)

(622)

155

Corporate Information

Indian Rupee

Decrease in income before
income tax . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(1,360)¥(1,282)$(11,551)

The table below presents the effect of a 1% appreciation of the British pound against the U.S.
Dollar on income before income tax:
U.S. Dollar

Decrease in income before
income tax . . . . . . . . . . . . . . . . . . . .

U.S. Dollar

Increase (decrease) in income
before income tax . . . . . . . . . . . . . . .
Decrease in other comprehensive
income before tax effect . . . . . . . . . .

Financial Section(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(588)¥(566)$(5,100)

ii. Foreign currency exchange contracts
Foreign currency exchange contracts, foreign currency swap contracts, and interest rate currency
swap contracts are entered into, to reduce exposure to foreign exchange risk on the amount to be
paid or received in certain transactions denominated in foreign currencies.
The details of foreign currency exchange contracts are as follows. Interest rate currency swap
contracts are described in “(c) Interest rate risk.”

Foreign currency exchange contracts to which hedge accounting is applied(Millions of yen)
As of March 31, 2018
Contract
amounts (ofwhich: maturing in morethan one year)

Currency swap contracts . . . . . . . . . . .

¥665,804(665,804)

Fair value¥(65,060)

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Receipt in Euro / payment in yen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥ 646,210(646,210)
734,603(734,603)¥ 1,380,813(1,380,813)(Millions of yen)(Thousands of U.S. dollars)
As of March 31, 2019

AssetsCarrying
amount(fair value)
Liabilities¥6,597¥ (42,769)¥ 10,478–(69,441)(51,031)¥6,597¥(112,210)¥(40,553)

The carrying amounts of the derivative financial assets designated as hedging instruments
are recorded as either “Other financial assets” or “Derivative financial liabilities” in the consolidated statement of financial position. The outstanding balance of those maturing in more than
one year are classified as non-current assets or non-current-liabilities.
The above foreign currency exchange contracts are designated as cash flow hedges. At the
inception of the hedging relationship, the hedge ratio of the hedging relationship is determinedbased on the quantity of the hedged items and the quantity of the hedging instruments,
basically at a ratio of one to one.
For the purpose of hedge effectiveness assessment, the Company conducts qualitative
assessments the significant conditions of hedged items and hedging instruments are met or
closely matched, or the changes in values of the hedged items and hedging instruments offset
each other against the same risk. The Company confirms whether there is an economic relationship between the hedged items and hedging instruments through such assessments.
The ineffective portion of the hedge are not material. The change in values of hedged items
used to recognize the ineffective portion as a basis are similar to the changes in fair value ofhedging instruments.

156

Corporate Information

As of March 31, 2019
Changes in thefair value ofhedging instruments used
for recognitionof ineffective
portion ofhedging
instrument

Contract
amounts (ofwhich: maturing in morethan one year)

Currency swap contracts
Receipt in U.S. dollars / payment in yen . . . . . . . . . . . . . . . . . . . . . . . . .

Financial Section

Management Organization

Contract
amounts (ofwhich: maturing in morethan one year)

Average rate

¥113.34
per $1¥132.61per €1$ 5,822,237$ (5,822,237)
6,618,641(6,618,641)$ 12,440,878$(12,440,878)

AssetsCarrying
amount(fair value)
Liabilities

Changes in thefair value ofhedging instruments used
for recognitionof ineffective
portion ofhedging
instrument$59,438$ (385,341)$ 94,405–(625,651)(459,780)$59,438$(1,010,992)$(365,375)

Changes in the accumulated other comprehensive income after tax related to the derivatives
designated as hedging instruments are as follows:(Millions of yen)(Thousands of
U.S. dollars)

As of April 1, 2018 . . . . . . . . . . . . . . .

¥(59,744)$(538,283)

Amount incurred . . . . . . . . . . . . . . .
Reclassification adjustments1 . . . . . .
As of March 31, 20192 . . . . . . . . . . . .

473
15,519¥(43,752)

4,262
139,823$(394,198)

Fiscal year ended March 31, 2019

Notes:
1. Reclassification adjustments are the amounts of accumulated other comprehensive income transferred to profit or loss relating to
the hedged item when the hedged item affects profit or loss, and are recorded as “Derivative gain and loss” in the consolidated
statement of income. For the year ended March 31, 2019, the amount of ¥(4,888) million ($(44,040) thousand) transferred fromcash flow hedge to profit or loss is included in reclassification adjustments. The transfer arises from discontinued hedging
relationships when a forecasted transaction is no longer expected to occur, although hedge accounting has been applied.
2. For the year ended March 31, 2019, accumulated other comprehensive income after tax includes ¥15,315 million ($137,985
thousand) related to discontinued hedging accounting.

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157

Corporate Information

Foreign currency exchange contracts to which hedge accounting is not applied(Millions of yen)Contract amounts(of which: maturing in
more than one year)

Foreign currency
forward contracts . . . . .
Currency
swap contracts . . . . . . .
Foreign exchange margintransactions* . . . . . . . . .
Total . . . . . . . . . . . . . . . .

¥ 919,297(25,886)
562,913(552,990)
737,846(–)¥2,220,056(578,876)

Fair value¥(Thousands of U.S. dollars)

As of March 31, 2019

As of March 31, 2018
Contract amounts(of which: maturing in
more than one year)(4,324)(74,089)
19,492¥ (58,921)¥ 317,802(1,301)
126,200(115,050)
587,224(–)¥1,031,226(116,351)

AssetsCarrying amount(fair value)
Liabilities¥ 5,273¥ (1,462)

3(9,941)

17,054(2,014)¥22,330¥(13,417)

As of March 31, 2019
Contract amounts(of which: maturing in
more than one year)$ 2,863,339(11,722)
1,137,039(1,036,580)
5,290,783(–)$ 9,291,161(1,048,302)

Assets$ 47,509

Carrying amount(fair value)
Liabilities$(13,172)27(89,567)

153,653(18,146)$201,189$ (120,885)

Note:* Foreign exchange margin transactions are operated by the subsidiary, YJFX, Inc.’s foreign exchange margin transactions business.

(b) Price risk
As part of the business strategy, the Company holds securities traded in active markets, including
listed stock, and is exposed to market price fluctuation risk.
The Company manages this risk by continuously monitoring the financial condition of security
issuers and stock market fluctuations.
i. Price sensitivity analysis
The table below presents the effect of a 10% decrease in market price regarding the securities andrelated derivative instruments traded in active markets on income before income tax and othercomprehensive income before tax effect, assuming that all other factors are constant.

Decrease in income before
income tax . . . . . . . . . . . . . . . . . . . .
Decrease in other comprehensive
income before tax effect . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(68,722)¥(61,231)$(551,680)¥(13,233)¥ (3,399)$ (30,624)

Also, the Company entered into a variable prepaid forward contract which is settled by Alibaba
shares held by the Company. The contract includes a collar transaction that a cap and floor are set for
the number of shares settled. The collar transaction is classified as a derivative instrument and its fairvalue is affected by the price of Alibaba shares. Derivative gain and loss, which occurred depending on
fluctuation of the price of Alibaba shares, are recognized through profit or loss.
Fair value of the collar transaction is composed of intrinsic value and time value. The effect of a
10% increase in the price of Alibaba shares on income before income tax due to fluctuation of intrinsic
value is a loss of $1,300,000 thousand, assuming that all other factors are constant. In case of
consideration of time value, the impact of the loss is decreased.
Further, a derivative gain and loss resulting from this collar transaction is fixed to a loss of $900,000
thousand during a three-year period from the initial recognition date of the derivative instruments, inJune 2016, until the settlement date of the Alibaba shares.
The Company used Alibaba shares for the settlement of the above variable prepaid forward
contract in June, 2019. The details are described in “(2) Transaction for sale of Alibaba shares by
variable prepaid forward contract” under “Note 23. Interest-bearing debt.”

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158

Corporate Information

ii. Option contracts
The details of option contracts are as follows:

Option contracts to which hedge accounting is not applied(Millions of yen)Contract amounts(of which: maturing in
more than one year)

Collar transaction . . . . . .
Forward contracts . . . . . .
Put option . . . . . . . . . . . .
Stock acquisition rights . .
Total . . . . . . . . . . . . . .

¥1,113,481(791,108)
372,447(–)
53,120(–)
53,001(53,001)¥1,592,049(844,109)Fair value¥(717,047)(46,932)(382)
13,824¥(750,537)(Thousands of U.S. dollars)

As of March 31, 2019

As of March 31, 2018
Contract amounts(of which: maturing in
more than one year)¥ 732,534(–)
379,984(–)–
319,261(208,271)¥1,431,779(208,271)(c) Interest rate risk
The Company raises funds through issuing interest-bearing debt. Certain interest-bearing debt isissued with floating interest rates, and is exposed to interest rate risk.
Interest-bearing debt with floating interest rates has the risk of increased interest expenses due
to rising interest rates. In order to prevent and reduce interest rate fluctuation risk, the Company
maintains an appropriate mixture of fixed and floating interest rate debt. For certain borrowings
and bonds with floating interest rates, the Company also utilizes derivative transactions, such as
interest rate swaps, in order to hedge interest rate fluctuation risk, converting floating interests into
fixed interests. For floating interest rate debt, the Company continuously monitors interest rate
fluctuations.

Assets¥Carrying amount(fair value)
Liabilities–¥(749,846)–(14,390)

–

–

4,038

–

¥4,038¥(764,236)

As of March 31, 2019
Contract amounts(of which: maturing in
more than one year)$ 6,600,000(–)
3,423,588(–)–(–)
2,876,484(1,876,484)$12,900,072(1,876,484)

AssetsCarrying amount(fair value)
Liabilities–$(6,755,978)–(129,651)––

36,382–$36,382$(6,885,629)$

i. Interest rate sensitivity analysis
The table below presents the effect of a 1% increase in interest rates regarding the floating interest
rate debt on income before income tax in the consolidated statement of income, assuming that allother factors are constant. The analysis does not include floating interest rate debt whose interests
are fixed by interest rate swaps and other derivative transactions.

Decrease in income before
income tax . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(48,991)¥(46,421)$(418,245)

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159

Corporate Information

ii. Interest rate contracts
The details of interest rate contracts are as follows:

Interest rate contracts to which hedge accounting is applied(Millions of yen)Contract amounts(of which: maturing in
more than one year)

Interest rate swap . .

¥212,980(212,980)

Fair value¥4,355(Thousands of U.S. dollars)

As of March 31, 2019

As of March 31, 2018

Contract amounts(of which: maturing in
more than one year)¥722,480(722,480)

AssetsCarrying amount(fair value)
Liabilities¥1,419Changes in the fairvalue of hedging
instruments used
for recognitionof non-effective
portion of hedging
instrument¥(6,824)¥(9,760)

The carrying amounts of the derivative financial assets designated as hedging instruments arerecorded as either “Other financial assets” or “Derivative financial liabilities” in the consolidated
statement of financial position. The outstanding balance of which maturing in more than one year
are classified as non-current assets or non-current liabilities.
The above interest rate contracts are designated as cash flow hedges. At the inception of thehedging relationship, the hedge ratio of the hedging relationship is determined based on the quantityof the hedged items and the quantity of the hedging instruments, basically in the ratio of one to one.
For the purpose of hedge effectiveness assessment, the Company conducts the qualitative
assessment whether the significant conditions of hedged items and hedging instruments are met or
closely matched, or whether the changes in values of the hedged items and hedging instruments
are in the relationship to offset each other against the same risk. The Company confirms if there isan economic relationship between the hedged items and hedging instruments through them.
Any ineffective portion of the hedge have no significance in amounts. The change in values of

As of March 31, 2019

AssetsCarrying amount(fair value)
Liabilities

Changes in the fairvalue of hedging
instruments used
for recognitionof non-effective
portion of hedging
instrument$12,785$(61,483)$(87,936)

Contract amounts(of which: maturing in
more than one year)$6,509,415(6,509,415)

Average rate

1.97%

hedged items used to recognize the ineffective portion as a basis are similar to the changes in fairvalue of hedging instruments.
(Millions of yen)(Thousands of
U.S. dollars)Interest rate swap

Interest rate swap

As of April 1, 2018 . . . . . . . . . . . . . . .

¥ 4,458$ 40,166

Amount incurred . . . . . . . . . . . . . . .
Reclassification adjustments* . . . . .
As of March 31, 2019 . . . . . . . . . . . . .

(7,035)538¥ 2,039(63,384)
4,847$ 18,371

Note:* Reclassification adjustments represent amounts of accumulated other comprehensive income transferred to profit or loss when thehedged item affects profit or loss, and are recorded as “Derivative gain and loss” in the consolidated statement of income. For theyear ended March 31, 2019, there were no transactions for which hedge accounting was discontinued because the hedgedtransactions had not been expected to occur.

Interest rate contracts to which hedge accounting is not applied(Millions of yen)Contract amounts(of which: maturing in
more than one year)

Interest rate cap . . . . . . .
Interest rate swap. . . . . .
Interest ratecurrency swap . . . . . . .
Total . . . . . . . . . . . . . . . .

¥ 194,100(161,697)
111,200(109,170)

Fair value

¥ 732
656

–

–

¥ 305,300(270,867)¥1,388(Thousands of U.S. dollars)

As of March 31, 2019

As of March 31, 2018
Contract amounts(of which: maturing in
more than one year)¥ 332,970(–)
131,111(129,151)
29,564(29,007)¥ 493,645(158,158)

Assets¥Carrying amount(fair value)
Liabilities

6

¥

–

–

(1,011)

151

(561)

¥157

¥(1,572)

As of March 31, 2019
Contract amounts(of which: maturing in
more than one year)$ 3,000,000(–)
1,181,287(1,163,627)
266,366(261,348)$ 4,447.653(1,424,975)

Assets$55

Carrying amount(fair value)
Liabilities

$

–

–

(9,109)1,360(5,055)$ 1,415$(14,164)

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organizationb. Credit risk
In the course of the Company’s business, trade and other receivables, and other financial assets(including deposits, equity securities, bonds, and derivatives) are exposed to the credit risk of its
counterparties.
In order to prevent and reduce the risk, the Company does not expose itself to significant
concentrations of credit risk for such receivables and financial assets. To manage its credit risk, theCompany performs controls around the due date and balance for each customer in accordance with its
internal customer credit management rules and regularly monitors major customers’ credit status.
Derivative transactions executed and maintained by the Company are conducted and controlled
based on the Company’s internal rules and procedures for derivative transactions, and those transactions engaged in are limited to those with financial institutions with high credit ratings in order toreduce the risk.
The carrying amount of financial instruments, net of impairment, is presented in the consolidated
statement of financial position, and the amount of lending commitments and guaranteed obligations,represent the Company’s maximum exposure to credit risk on financial assets. The values of collateral
held and other credit enhancements are not included.
For trade receivables, contract assets, and lending commitments, the Company measures the
lifetime expected credit risk. For receivables other than trade receivables, contract assets, and lending
commitments, the Company measures future expected credit losses in consideration of the assessmentof significant increase of credit risk. The Company determines whether a significant increase of credit
risk has been achieved or not based on the movement of occurrence of default. In the determination
process, past due information, deterioration of operating results, and external credit ratings are

Financial Section

160

Corporate Informationconsidered. For receivables other than trade receivables and contract assets, the Company measuresthe expected credit losses at the amount of the 12-month expected credit losses. However, when there
is a significant increase of credit risk after initial recognition, the expected credit losses are measured at
the amount of lifetime expected credit losses.
The Company groups financial assets with no individual significance based on the characteristics ofcredit risk and the type of transactions. The Company then assesses the existence of objective evidenceof impairment for each group considering the past default rate.
The Company measures expected credit losses individually for each receivable as financial assetsthat have been impaired when the events of default as detailed below have occurred, resulting inestimated negative future cash flows of the financial assets.
• Significant financial difficulty of the issuer or borrower• Breach of contract, such as a default or delinquency in interest or principal payments• High possibility of bankruptcy or entering financial reorganization
For credit-impaired financial assets, when it is probable that the Company will not collect the entire
amount of or a part of the financial assets, the impairment losses are directly deducted from thecarrying amount.
Details of lending commitments and guaranteed obligations are described in “(1) Lending
commitments” and “(2) Credit guarantees” under “Note 49. Contingency.”
There were no financial or non-financial assets acquired as a result of foreclosure of collateral orenforcement of other credit enhancements during the years ended March 31, 2018 and 2019.

(a) Financial assets not impaired individuallyi. Trade receivables
As of March 31, 2018
The table below presents an aging analysis of financial assets not impaired individually. The amounts in the analysis are presented at the carrying amount before netting the allowance for doubtful accounts.
(Millions of yen)
Past due

Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year¥1,401,059¥100,521¥23,328¥14,190¥12,043¥11,516

Of the trade receivables, the carrying amounts of individually impaired trade receivables and allowance for doubtful accounts are ¥8,184 million and ¥(8,132) million respectively.

Total¥1,562,657¥ (59,093)¥1,503,564

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

161

Corporate Information

As of March 31, 2019
The table below represents the carrying amounts related to an aging analysis of trade receivables and allowance for doubtful accounts(Millions of yen)
Past due

Trade receivables* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year¥1,472,660(27,054)¥115,705(3,996))¥27,267(6,882)¥17,837(4,568)¥12,112(4,947)¥11,267(6,532)

Total¥1,656,848(53,979)¥1,602,869(Thousands of U.S. dollars)
Past due

Trade receivables* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year$13,268,403(243,752)$1,042,481(36,003)$245,671(62,006)$160,708(41,157)$109,127(44,572)$101,513(58,851)

Total$14,927,903$ (486,341)$14,441,562

Note:* Exposure to credit risk on contractual assets is included in trade receivables. Since trade receivables attributable to the credit card business include interest income, the Company measures expected credit losses for those receivables by using the same method for the receivables otherthan trade receivables.
Exposure to credit risk on trade receivables attributable to the credit card business is included in the receivables other than trade receivables.

ii. Financial assets other than trade receivables
As of March 31, 2018
(Millions of yen)
Past due

Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year¥ 805,250
656,139¥1,461,389¥2,707
1,975¥4,682¥ 338
2,346¥2,684¥ 309
4,207¥4,516¥ 277
8,106¥8,383¥ 218
8,717¥8,935

Total¥ 809,099
681,490¥1,490,589(30,755)¥1,459,834

Of the amount of financial assets other than trade receivables, the carrying amount and the allowance for doubtful accounts of the financial assets other than trade receivables impaired individually were ¥30,125
million and ¥ (30,050) million respectively.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

162

Corporate Information

As of March 31, 2019
(Millions of yen)(Thousands of U.S. dollars)

Carrying amounts
12 month expected credit losses

Lifetime expected credit losses
Other than creditimpaired financial assets

Other receivables . . . . . . . .
Investment securities . . . . . .
Other financial assets . . . . .
Total . . . . . . . . . . . . . . . .

Carrying amounts
12 month expected credit losses

Credit-impaired
financial assets

Lifetime expected credit losses
Other than creditimpaired financial assets

Credit-impaired
financial assets

Before due

Past due

Past due

Past due

Total

Before due

Past due

Past due

Past due

Total¥ 850,533
327,069
1,035,740¥2,213,342¥16,675–
7,801¥24,476¥2,433–
1,824¥4,257¥ 7,732–
36,594¥44,326¥ 877,373
327,069
1,081,959¥2,286,401$ 7,663,150
2,946,833
9,331,832$19,941,815$150,238–
70,286$220,524$21,921–
16,434$38,355$ 69,664–
329,705$399,369$ 7,904,973
2,946,833
9,748,257$20,600,063

Investment securities are mostly debt financial assets at FVTOCI.
(Thousands of U.S. dollars)(b) Allowance for doubtful accounts
The table below presents changes in the allowance for doubtful accounts. The allowance for
doubtful accounts is mainly for trade receivables from customers and loans.

Allowance for doubtful accounts
Lifetime expected credit losses
Other than creditimpaired financial assets

Balance at the beginning of the period . .
Effect of retrospective adjustments due
to adoption of new standards . . . . . . . .
Balance at the beginning of the period(after adjustments) . . . . . . . . . . . . . . . .
Provisions . . . . . . . . . . . . . . . . . . . . . . . .
Utilized . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at the end of the period . . . . .

(Millions of yen)
Fiscal year ended
March 31, 2018

Balance at the beginning of
the period . . . . . . . . . . . . . . . . . . . . .
Provisions . . . . . . . . . . . . . . . . . . . . . .
Utilized . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at the end of the period . . . . .

¥ 95,351
52,015(58,189)671¥ 89,848

Credit-impaired
financial assets

Total$ 339,130$ 143,779$ 482,909

342

–

342

339,472
382,097(315,154)(64,654)$ 341,761

143,779
65,051(98,667)
34,417$ 144,580

483,251
447,148(413,821)(30,237)$ 486,341

Note:
Allowance for doubtful accounts related to contract assets are included in trade receivables.

i. Trade receivables
The table below presents changes in the allowance for doubtful accounts for trade receivables*.
(Millions of yen)
Allowance for doubtful accounts
Lifetime expected credit losses
Other than creditimpaired financial assets

Balance at the beginning of the period . .
Effect of retrospective adjustments due
to adoption of new standards . . . . . . . .
Balance at the beginning of the period(after adjustments) . . . . . . . . . . . . . . . .
Provisions . . . . . . . . . . . . . . . . . . . . . . . .
Utilized . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at the end of the period . . . . .

Credit-impaired
financial assets

Total¥ 37,640¥ 15,958¥ 53,598

38

–

38

37,67842,409(34,979)(7,176)¥ 37,932

15,9587,220(10,951)
3,820¥ 16,047

53,636
49,629(45,930)(3,356)¥ 53,979

Trade receivables arising in the credit card business includes interest income. The Company
measures expected credit losses for receivables arising in the credit card business by using the same
method for the receivables other than trade receivables. As a result, the allowance for doubtful
accounts are included in the financial assets other than trade receivables.
For the year ended March 31, 2019, there were no changes in gross carrying amounts that
affected the allowance for doubtful accounts. Of the financial assets that were impaired directly during
the year, there were no assets for which the Company continued collection activity.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

ii. Financial assets other than trade receivables
The table below presents changes in the allowance for doubtful accounts for financial assets otherthan trade receivables. The allowance for doubtful accounts is mainly for loans.
(Millions of yen)
Allowance for doubtful accounts
Lifetime expected credit losses
12 month
expected
credit losses

Balance at the beginningof the period . . . . . . . . .
Provisions . . . . . . . . . . . .
Utilized . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . .
Balance at the endof the period . . . . . . . . .

Other thancredit-impaired
financial assets

Credit-impaired
financial assets¥1,330717(4)
11¥31,889
16,093(9,029)1¥36,250
19,085(9,832)566¥5,061¥2,054¥38,954¥46,069(Thousands of U.S. dollars)
Allowance for doubtful accounts
Lifetime expected credit losses

Balance at the beginningof the period . . . . . . . . .
Provisions . . . . . . . . . . . .
Utilized . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . .
Balance at the endof the period . . . . . . . . .

Other thancredit-impaired
financial assets

Credit-impaired
financial assets

Corporate Information

163

c. Liquidity risk
In order to prevent and reduce liquidity risk, the Company maintains access to diversified fundraisingsources including both indirect financing, such as bank loans and leases, and direct financing, such as
the issuance of bonds and commercial paper and securitization, taking market conditions and its
current/non-current debt ratios into consideration. As for fund management, the Company invests its
funds in short-term deposits and a money management fund.
The Company also continuously monitors its forecasted and actual cash flows and liquid funds.

Total¥3,031
2,275
(799)
554

12 month
expected
credit losses

Financial Section

Total$27,309
20,497(7,199)4,991$11,983
6,460
(36)
99

$287,314
144,995(81,350)10$326,606
171,952(88,585)
5,100$45,598$18,506$350,969$415,073

Provisions for and reversal of doubtful accounts are recorded in “Selling, general and administrative
expenses” and “Other non-operating income (loss)” in the consolidated statement of income. For theyear ended March 31, 2019, there were no changes in gross carrying amounts that affected theallowance for doubtful accounts. Of the financial assets that were impaired directly during the year,
there were no assets for which the Company continued collection activity.

(a) Commitment lines of credit and other credit facilities
The Company has entered into commitment lines of credit and other credit facilities with various
financial institutions to reduce liquidity risk. The Company’s credit facilities are as follows:

Credit facilities . . . . . . . . . . . . . . . . . .
Drawn . . . . . . . . . . . . . . . . . . . . . . . .
Undrawn . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥2,247,842
1,798,537¥ 449,305¥3,404,119
1,828,968¥1,575,151$30,670,502
16,478,674$14,191,828

Note:
Certain commitments above contain financial covenants. The details are described in “(3) Financial covenants” in “Note 23.
Interest-bearing debt” for details.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Financial Section

Management Organization

164

Corporate Information(b) Analysis of financial liabilities by maturities
The table below presents the analysis of financial liabilities (including derivatives) by maturities. The receivables and payables arising from derivative transactions are shown on a net basis:
As of March 31, 2018
(Millions of yen)
Carrying amountNon-derivative financial liabilities
Interest-bearing debt
Short-term borrowings . . . . . . . . . . . . . . . . . . . . .
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings (including current portion)1 .
Corporate bonds (including current portion) . . . . . .
Lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial liability for variable
prepaid forward contract . . . . . . . . . . . . . . . . . . .
Installment payables . . . . . . . . . . . . . . . . . . . . . . .
Deposits for banking business2 . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fundand Delta Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade and other payables. . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities
Derivative financial liabilities6
Foreign currency exchange contracts7 . . . . . . . . . .
Option contracts . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥¥957,573

Aggregation ofredemption schedule

1 year to 2 years

100,000
1,094,668
586,334
455,670–
814,854
1,026,844
334,518–
1,390,677
664,941
232,173–453,364
1,210,280
139,654–524,521782,833
52,669–2,020,353
3,581,170
7,190

688,332
34,787708,311

701,184
35,408708,547–
20,185684,103

701,184
10,463
6,327

–
2,427
5,446

–
2,001
3,254

–
332
3,332

–
–
6,085

1,844,679
1,816,010
39,7991,844,6793
1,816,010
39,79940,7134
1,748,963
812–
43,230
10,240

–
4,858
6,620

–
2,702
2,360

–
2,030
2,775

1,803,9665
14,227
16,992

21,450,987

21,577,038

5,690,146

2,947,660

2,307,142

1,813,615

1,368,492

7,449,983

151,140
761,441265

151,140774,262265(1,182)47,314–(11,928)
726,948–(11,065)–3(10,015)––

28,514––

156,816–
262

46,132¥ 715,020

28,514¥ 157,078¥–(11,062)¥¥–(10,015)¥¥–More than 5 years¥ 958,698¥¥

4 years to 5 years

958,698

925,667–

3 years to 4 years

100,000
6,298,437
7,852,402
1,221,874¥¥

2 years to 3 years

100,000
6,215,296
7,824,326
1,221,874

912,846¥

Within 1 year¥–

Notes:
1. Regarding USD-denominated Senior Notes due 2020 and EUR-denominated Senior Notes due 2020 which were issued on April 23, 2013, the original due date was April 15, 2020; however, the outstanding amount of ¥345,581 million ($3,113,623 thousand) was redeemed on May 21, 2018.
2. Deposits for the banking business payable on demand are included in “Within 1 year.”
3. The amount represents the amounts that would have been distributed to Third-party Investors in accordance with the limited partnership agreement if SoftBank Vision Fund and Delta Fund had been liquidated as of March 31, 2018.
4. The amount represents the contractual distributions or repayments to be made within a year that have been announced from SoftBank Vision Fund and Delta Fund to Third-party Investors as of March 31, 2018.
5. When disposal of investments becomes relatively certain, the portion of third-party interests in SoftBank Vision Fund and Delta Fund which is available for distributions and repayments will be broken down by corresponding maturity dates.
6. Only if the contractual maturities are essential for an understanding of the timing of the cash flow, derivative financial liabilities are included in the above chart and disclosed.
7. Aggregation of redemption schedule and the breakdown by maturity are presented on a discounted cash flow basis for currency swap contracts included in the foreign currency exchange contracts.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

165

Corporate Information

As of March 31, 2019

(Millions of yen)
Carrying amountNon-derivative financial liabilities
Interest-bearing debt
Short-term borrowings . . . . . . . . . . . . . . . . . . . . .
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings (including current portion) . .
Corporate bonds (including current portion)1 . . . . .
Lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial liability for variable prepaid
forward contract . . . . . . . . . . . . . . . . . . . . . . . . .
Installment payables . . . . . . . . . . . . . . . . . . . . . . .
Deposits for banking business2 . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fundand Delta Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade and other payables. . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities
Derivative financial liabilities6
Foreign currency exchange contracts7 . . . . . . . . . .
Option contracts . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

¥

¥

499,179
42,0005,628,813
7,581,038
1,186,649

Aggregation ofredemption schedule

1 year to 2 years

732,534
11,734745,953

–
2,723
6,038

–
2,238
5,951

–
404
3,160

–
46
2,773

–
28
4,349

4,136,965
1,909,608
45,85922,545,586

4,136,9653
1,909,608
45,85922,674,683

29,6774
1,871,807
10,7896,142,598

–
9,002
9,090
2,245,075

–
3,589
3,862
2,040,808

–
2,107
3,791
1,447,503

–
127
2,202
2,277,000

4,107,2885
22,976
16,125
8,521,699

2,582
–
868
3,450

¥ 138,396–
674¥ 139,070¥(8,523)764,979
1,799¥ 758,255¥¥(11,331)–
1,242(10,089)¥¥––
577,663
1,225,718
221,787(10,513)–
1,732(8,781)

¥

¥

¥

–
–
534,694
766,176
137,171

15,016–
1,501
16,517

¥

¥

¥

–
–
1,090,046
1,129,565
52,241More than 5 years

732,534
17,173
768,224¥¥

4 years to 5 years

730,601
16,826
768,048

125,627
764,979
7,816
898,422––
1,568,924
326,485
322,813

3 years to 4 years¥ 499,979
42,000719,494
1,041,234
437,397¥¥

2 years to 3 years

499,979
42,0005,694,286
7,641,406
1,186,649

125,627
764,2368,396
898,259¥

Within 1 year¥––
1,203,465
3,152,228
15,240SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

166

Corporate Information(Thousands of U.S. dollars)
Carrying amountNon-derivative financial liabilities
Interest-bearing debt
Short-term borrowings . . . . . . . . . . . . . . . . . . . . .
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term borrowings (including current portion) . .
Corporate bonds (including current portion)1 . . . . .
Lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial liability for variable prepaid
forward contract . . . . . . . . . . . . . . . . . . . . . . . . .
Installment payables . . . . . . . . . . . . . . . . . . . . . . .
Deposits for banking business2 . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fundand Delta Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade and other payables. . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities6
Derivative financial liabilities
Foreign currency exchange contracts7 . . . . . . . . . .
Option contracts . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$4,497,513
378,41250,714,595
68,303,793
10,691,495

Aggregation ofredemption schedule

1 year to 2 years

2 years to 3 years

3 years to 4 years

4 years to 5 years

$

$

$

$

$ 4,504,721
378,412
6,482,512
9,381,332
3,940,869

6,582,584
151,600
6,919,975

6,600,000
154,726
6,921,561

6,600,000
105,7216,720,903–
24,53454,401–
20,16553,617–3,640
28,471–
414
24,985–
252
39,18437,273,313
17,205,226
413,181203,131,687

37,273,3133
17,205,226
413,181204,294,829

267,3844
16,864,645
97,20755,343,706–
81,10681,89920,227,723–
32,336
34,796
18,387,314–
18,985
34,156
13,041,743–
1,144
19,84020,515,362

37,005,9295
207,010145,283
76,778,981

1,131,877
6,885,629
75,646
8,093,152

1,131,877
6,892,324
70,421
8,094,622(76,790)
6,892,324
16,208$ 6,831,742(102,090)–
11,190(90,900)(94,720)–
15,605(79,115)

135,291–
13,524
148,815

23,263–
7,821
31,084

1,246,923–
6,073$ 1,252,996

$

$

–
–
14,135,724
2,941,572
2,908,487$––
5,204,640
11,043,499
1,998,261$––
4,817,497
6,903,108
1,235,886$––
9,821,119
10,177,178
470,682

More than 5 years

4,504,721
378,41251,304,496
68,847,698
10,691,495$$

Within 1 year$––
10,843,004
28,401,009
137,310Notes:
1. Regarding USD-denominated Senior Notes due 2020 and EUR-denominated Senior Notes due 2020 which were issued on April 23, 2013, the original due date was April 15, 2020; however, the outstanding amount of ¥345,581 million ($3,113,623 thousand) was redeemed on May 21, 2018.
2. Deposits for the banking business payable on demand are included in “Within 1 year.”
3. The amount represents the amounts that would have been distributed to Third-party Investors in accordance with the limited partnership agreement if SoftBank Vision Fund and Delta Fund had been liquidated as of March 31, 2019.
4. The amount represents the contractual distributions or repayments to be made within a year that have been announced from SoftBank Vision Fund and Delta Fund to Third-party Investors as of March 31, 2019.
5. When disposal of investments becomes relatively certain, the portion of third-party interests in SoftBank Vision Fund and Delta Fund which is available for distributions and repayments will be broken down by corresponding maturity dates.
6. Only if the contractual maturities are essential for an understanding of the timing of the cash flow, derivative financial liabilities are included in the above chart and disclosed.
7. Aggregation of redemption schedule and the breakdown by maturity are presented on a discounted cash flow basis for currency swap contracts included in the foreign currency exchange contracts.

In addition to the amounts presented above, the Company has lending commitments and guaranteed obligations, which are detailed in “(1) Lending commitments” and “(2) Credit guarantees” in “Note 49. Contingency.”
Average interest rates of the interest-bearing debts are described in “(1) Component of interest-bearing debt” in “Note 23. Interest-bearing debt.”

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

167(3) Categories of financial instruments
Components of financial instruments (excluding cash and cash equivalents) by category are as follows:
As of March 31, 2018
(Millions of yen)
Financial assets at
FVTPL*

Financial assets
Current assets
Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current assets
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial liabilities
Current liabilities
Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits for banking business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . . .
Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities
Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments from SoftBank Vision Fund and Delta Fund accounted for using
FVTPL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note:* The amount of financial assets designated as financial assets at FVTPL is ¥4,659,787 million.

¥

Derivatives designatedas hedges–
61,538¥––Available-for-salefinancial assets¥–
44,442

Held-to-maturity
investments¥

Loans and receivables

Total

–
91,456¥2,314,353
322,008¥2,314,353
519,444––
631,487¥3,267,848

2,827,784
2,660,115
676,392¥8,998,088

2,827,784
1,820,157
40,084¥4,749,563

–
–
4,358
¥4,358–815,295
410¥860,147–
24,66353¥116,172

Financial liabilities
at FVTPL

Derivatives designatedas hedges

Financial liabilities
at amortized cost

Total

¥

–
–
–
–
–
–

¥ 3,217,405
684,091
40,713
1,816,010–
1,646¥ 3,217,405
684,091
40,713
1,816,010
96,241
1,646––

13,824,783

13,824,783–
800,339–¥896,580–
65,063–¥65,063

1,803,966–
62,372¥21,450,986

1,803,966
865,40262,372¥22,412,629

¥

–
–
–
–
96,241–

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

168

As of March 31, 2019
(Millions of yen)
Financial assets
at FVTPL*

Financial assets
Current assets
Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current assets
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial liabilities
Current liabilities
Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits for banking business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . . .
Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities
Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . . .
Derivative financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥Derivatives designatedas hedges–
39,044¥––

Available-for-salefinancial assets¥–
45,914

Held-to-maturity
investments¥

Loans and receivables

Total

–
1,300

¥2,339,977
117,218¥ 2,339,977
203,476–
24,201
881,556¥3,362,952

7,115,629
924,614
1,185,856¥11,769,552

7,115,629
495,901
295,873¥7,946,447

–
–
8,016
¥8,016–302,938–¥348,852–
101,574
411¥103,285

Financial liabilities
at FVTPL

Derivatives designatedas hedges

Financial liabilities atamortized costTotal

¥ 3,480,960
745,943
29,677
1,909,608
767,714
10,84912,204,146
4,107,288
130,545
57,115¥23,443,845

¥

–
–

¥

–
–

–
767,714––––¥ 3,480,960
745,943
29,677
1,909,608–
10,849––11,511–¥779,225––
119,034–¥119,034

12,204,146
4,107,288–
57,115¥22,545,586

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

169

Corporate Information(Thousands of U.S. dollars)
Financial assets
at FVTPL*

Financial assets
Current assets
Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current assets
Investments from SoftBank Vision Fund and Delta Fund
accounted for using FVTPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial liabilities
Current liabilities
Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits for banking business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . .
Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities
Interest-bearing debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third-party interests in SoftBank Vision Fund and Delta Fund . . . . . . . . . . . . . .
Derivative financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$Derivatives designatedas hedges–
351,779$––

Available-for-salefinancial assets$–
413,677

Held-to-maturity
investments$

Loans and receivables

Total

–
11,713$21,082,773
1,056,113$ 21,082,773
1,833,282–
218,046
7,942,661$30,299,593

64,110,541
8,330,606
10,684,350$106,041,552

64,110,541
4,467,979
2,665,763$71,596,062––
72,223$72,223–
2,729,417–$3,143,094–
915,164
3,703$930,580

Financial liabilities
at FVTPL

Derivatives designatedas hedges

Financial liabilities
at amortized cost

Total

$

–
–
–
–
6,916,965
–

$

–
–
–
–
–
–

$ 31,362,825
6,720,813
267,384
17,205,226–
97,748$ 31,362,825
6,720,813
267,384
17,205,226
6,916,965
97,748––103,713–$7,020,678––
1,072,474–$1,072,474

109,957,167
37,005,928–
514,596$203,131,687

109,957,167
37,005,928
1,176,187
514,596$211,224,839

The Company generally classifies financial instruments as “financial assets at FVTPL.” Certain equity instruments are used as business investments to generate business synergies. As a result, for such investments, theCompany has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income, not in profit or loss, and classified them as “equity financial assets at FVTOCI.”SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Major components and fair values of the equity financial assets at FVTOCI are as follows.
As of March 31, 2019
(Millions of yen)
Names

GungHo Online Entertainment, Inc. . . . . . . . . . . . . . . . . . . . . . . . . .
RPA Holdings, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guidewire Software Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GameWith, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
istyle Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Thousands of
U.S. dollars)

Fair value

Fair value¥ 10,011
4,308
2,600
2,173
1,695
82,498¥103,285$ 90,197
38,814
23,426
19,57815,272
743,292$930,579

The Company sells (or derecognize) equity financial assets at FVTOCI when those assets no longer matchthe Company’s investment strategies. The table below presents fair value on the date of sale and accumulated
gains or losses related to the sales of equity financial assets at FVTOCI that were sold during the year.
For the year ended March 31, 2019

Fair value on the date of sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated gains related to the sales . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)¥19,031
3,005$171,466
27,075

When financial assets are derecognized or there is a significant or prolonged decline in fair value below
the cost, cumulative gains and losses recognized in other comprehensive income are directly transferred toretained earnings. For the year ended in March 31, 2019, ¥275 million ($2,478 thousand) was transferredfrom other comprehensive income to retained earnings.

Management Organization

Financial Section

Corporate Information

170

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

30. Fair value of financial instruments

Financial Section

171

Corporate Information

As of March 31, 2019(1) Categorization by level within the fair value hierarchy(Millions of yen)

Financial instruments that are measured at fair value on a recurring basis after initial recognition are classified
into three levels of the fair value hierarchy based on the observability and significance of inputs used for themeasurement.
The fair value hierarchy is defined as follows in descending order of level:
Level 1: Fair value is measured using quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: Fair value is measured using inputs other than Level 1 that are observable, either directly or indirectly.
Level 3: Fair value is measured using unobservable inputs.
If the fair value measurement uses different levels of inputs, the fair value is categorized based on thelowest level of input that is significant to the entire fair value measurement.
Transfers between levels of the fair value hierarchy are recognized as if they have occurred at the
beginning of each quarter.
There were no transfers between Level 1 and Level 2 during the fiscal years ended March 31, 2018 and 2019.
The table below presents financial instruments measured at fair value on a recurring basis by level within
the fair value hierarchy.
As of March 31, 2018

Level 1

Level 2

Level 3

Total––
288,015¥6,779,697
321,310133,144¥7,087,548
421,994
423,862

–
–
–
6,882
418,120

28,927
3,836
1,576
10,538332,892–202–
421,235
7,655,588

28,927
4,038
1,576
438,655
8,406,600––––

125,627
764,236
8,396¥ 898,259––––

125,627
764,236
8,396¥ 898,259

Level 1

Level 2

Level 3

Total––
2,594,964$61,083,854
2,894,945
1,199,604$63,857,536
3,802,090
3,818,922–––
62,006
3,767,187

260,627
34,562
14,19994,9452,999,297

–
1,820
–
3,795,252
68,975,475

260,627
36,382
14,1993,952,203
75,741,959

–
–
–
–

1,131,877
6,885,629
75,646$8,093,152

–
–
–
–

1,131,877
6,885,629
75,646$ 8,093,152

Financial assets
Equity securities
Investments from SoftBank
Vision Fund and Delta Fund . . . . . . .
Other equity securities . . . . . . . . . . . .
Bonds . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial assets
Foreign currency exchange contracts . .
Option contracts . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . .
Financial liabilities
Derivative financial liabilities
Foreign currency exchange contracts . .
Option contracts . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . .

¥307,851
100,684
2,703

¥

¥

¥

(Millions of yen)
Level 1

Financial assets
Equity securities
Investments from SoftBank
Vision Fund and Delta Fund . . . . . . .
Other equity securities . . . . . . . . . . . .
Bonds . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial assets
Foreign currency exchange contracts . .
Option contracts . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . .
Financial liabilities
Derivative financial liabilities
Foreign currency exchange contracts . .
Option contracts . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . .

¥718,803
121,969
6,705

Level 2

¥2,098,357
2,206,134
3,942¥2,817,160
2,328,103
240,921–––
10,359857,836

27,15954,227
6,008
19,731
337,399–
5,474–
104,926
4,418,833

27,15959,701
6,008
135,016
5,614,068––––

151,140
810,238265¥961,643––––

151,140
810,238265¥ 961,643¥(Thousands of U.S. dollars)

Total

–
–
230,274¥¥

Level 3Financial assets
Equity securities
Investments from SoftBank
Vision Fund and Delta Fund . . . . . . .
Other equity securities . . . . . . . . . . . .
Bonds . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial assets
Foreign currency exchange contracts . .
Option contracts . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . .
Financial liabilities
Derivative financial liabilities
Foreign currency exchange contracts . .
Option contracts . . . . . . . . . . . . . . . .
Interest rate contracts . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . .

$2,773,682
907,145
24,354$$$

SoftBank Group Corp.
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Essential Information

Growth Strategy

The major valuation techniques for financial instruments measured at fair value on a recurring basis are
as follows:a. Equity securities, bonds, and loans
Equity securities and bonds are measured using quoted prices in active markets for identical assets or
liabilities if such prices are available, and are classified as Level 1.
If such prices are unavailable, and if prices of recent arm’s-length transactions or equity financing
are available, they are measured using recent transaction prices adjusting for performance of themarket and company performance.
In the absence of a recent transaction, market approach, cost approach, or income approach isapplied for the enterprise valuation. The market approach is used to the extent comparable guidelines
for public companies are available. The market approach is a valuation method using figures from thefinancial statements of the subject companies and valuation multiple of comparable companies, suchas Enterprise Value (EV)/Revenue and EV/EBITDA. The cost approach is a valuation method using net
assets on balance sheet of subject companies for calculation of stock value. The income approach isused when reliable cash flow projections are available. Under this approach, the present value iscalculated by discounting estimated future cash flows at the discount rate and the future cash flows
are estimated by taking into consideration several assumptions, including the revenue growth rate.
The enterprise value which is calculated by the above method is allocated to shareholder’s value ofeach class of shares depending on the capital structures of the investments. For the allocation, an
option pricing model, which values each individual security in the capital structure based on its uniquerights and preferences, and a waterfall approach, which allocates value based on the seniority of eachsecurity in the event of a liquidation are mainly used.
The financial instruments are classified as Level 2 if all significant inputs, such as quoted prices anddiscount rates used for the measurement are observable, and they are classified as Level 3 when they
are measured using significant unobservable inputs.
b. Derivative financial assets and derivative financial liabilities
The fair value of derivative financial instruments is measured using valuation techniques including a
discounted cash flows model, or using quoted prices in inactive markets. Derivative financial instruments are classified as Level 2 if all significant inputs, such as foreign currency exchange rates anddiscount rates used for the measurement, are observable; and they are classified as Level 3 when they
are measured using significant unobservable inputs.

Management Organization

Financial Section

172

Corporate Information(2) Fair value measurements of financial instruments that are categorized as Level 3
a. Valuation techniques and inputs
The following table shows information about the valuation techniques used and the significant
unobservable inputs used in the Level 3 fair value measurements.
As of March 31, 2018
Valuation techniques

Equity securities
Price of recent investment

Unobservable inputs

Discount for lack of marketability
Control premium

Ranges of unobservable inputs

10.0%–35.0%
5.0%–10.0%

As of March 31, 2019
For Level 3 fair value measurements as of March 31, 2019, the price of recent investments is mainly
adopted considering the rights and preferential rights of shares. The following table shows information
about the other valuation techniques used and the significant unobservable inputs used in the fairvalue measurement.
Valuation techniques

Equity securities
Market comparable companies

Unobservable inputs

Discount for lack of marketability
Revenue multiple

Ranges of unobservable inputs

15.0%
X0.8

SoftBank Group Corp.
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Growth Strategy

As of March 31, 2019
For Level 3 fair value measurements of investments from SoftBank Vision Fund and Delta Fund, theCompany mainly uses price of recent investment method and discounted cash flow method.
The following table shows the fair value of the investments from SoftBank Vision Fund and Delta
Fund measured by each valuation techniques. When the combination of multiple valuation techniques isapplied, aggregated amounts of fair value are presented for each combination of valuation techniques.

Valuation techniques

Equity securities
Recent transactions
Recent transactions / Discounted cash flow
Recent transactions / Discounted cash flow / Other*
Discounted cash flow
Discounted cash flow / Market comparable companies
Total(Millions of yen)(Thousands of
U.S. dollars)

Fair value

Fair value¥3,514,046
1,644,479
1,263,422
260,634
97,116¥6,779,697$31,660,924
14,816,461
11,383,206
2,348,265
874,998$61,083,854

Note:* IPO scenario was considered.

Valuation techniques

Unobservable inputs

Discounted cash flow

Cost of capital
EBITDA ratio*
Revenue multiple*
Permanent growth rate
Revenue multiple

Market comparable companies

Ranges of unobservable inputs

11.0%–50.0%
X3.7–X22.0
X2.0–X15.0
1.8%–3.1%
X1.5

Note:
* EBITDA ratio of market comparable companies or revenue multiple are used for recurring measurement of fair value.

For Level 3 fair value measurements of investments made by other than SoftBank Vision Fund andDelta Fund, the price of recent investments is mainly adopted considering the rights and preferential
rights of shares. The following table shows information about the other valuation techniques used andthe significant unobservable inputs used in the fair value measurement.
Valuation techniques

Equity securities
Market comparable companies
Discounted cash flow
Receivables and loans
Discounted cash flow

Unobservable inputs

Revenue multiple
Cost of capital
Permanent growth rate
Cost of debt

Ranges of unobservable inputs

X1.8–X5.0
16.0%
4.4%
2.4%

Management Organization

Financial Section

Corporate Information

173

b. Sensitivity Analysis
Of the above unobservable inputs, revenue multiples, EBITDA ratio, and growth rate have a positive
correlation with the fair value of equity securities, whereas the cost of capital and the cost of debt
have a negative correlation with the fair value of equity securities.
c. Valuation processes(a) Valuation processes at SoftBank Vision Fund and Delta FundThe valuations are prepared by the valuation team of SBIA in accordance with the SBIA Global
Valuation Policy and International Private Equity and Venture Capital Valuation Guidelines on aquarterly basis, using the most appropriate valuation techniques and inputs that reflect the nature,
characteristics and risks of the financial instruments subject to fair value. The valuation team of SBIA
may engage external specialists with a high level of knowledge and experience as needed, in
determining the fair value of certain complex financial instruments. The valuations are then reviewed
by the Valuation and Financial Risk Committee (“VFRC”), established as a committee of SBIA, which
reports the result of their review to SBIA’s Board of Directors on a quarterly basis. The VFRC reviews thereasonableness of significant inputs and assumptions as well as the valuation results. In addition, theVFRC considers the appropriateness of the choice of valuation methodology.
(b) Valuation processes at entities other than SoftBank Vision Fund and Delta Fund
Fair value is measured by the Company’s personnel in the finance, treasury and accounting departments based on internal guidelines on a quarterly basis, using the most appropriate valuation
techniques and inputs that reflect the nature, characteristics and risks of the financial instruments
subject to fair value. For the fair value measurements of the financial instruments that require both
high level of knowledge and experiences, and that has a significance in amount, the Company may
engage external specialists. Thereafter, management responsible for the valuation processes approves
the results of fair value measurements by the Company’s personnel and the valuation by the external
specialists performed at the end of each quarter after reviewing the analysis of fair value changes andother content.

SoftBank Group Corp.
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Management Organizationd. Roll forward of financial instruments categorized as Level 3
Roll forward of financial instruments categorized as Level 3 is as follows:(Millions of yen)

(Millions of yen)
Financial assets

Equity securities

Bonds

Derivative
financial assets

As of April 1, 2017 . . . . . . . . . . . . .
Gains or losses
Net income . . . . . . . . . . . . . . . . .
Other comprehensive income . . .
Purchases . . . . . . . . . . . . . . . . . . . .
Sales . . . . . . . . . . . . . . . . . . . . . . . .
Transfers to Level 1 due to listing . .
Other . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2018 . . . . . . . . . . .
Gains or losses recognized in net
income on financial instruments
held at March 31, 2018 . . . . . . . .

¥ 668,334¥1,132¥6,208¥ 22,284(20,339)(120,141)
3,797,739(11,115)(3,684)(6,303)¥4,304,491

–
(6)
3,611
(604)
–
(191)
¥3,942

(429)
(305)
–
–
–
–
¥5,474

11
1,626
53,836(3,461)–
30,630¥104,926¥¥¥ (429)

¥

–

Other

59

(Millions of yen)
Financial liabilities

As of April 1, 2017 . . . . . . . . . . . . .
Gains or losses
Net income . . . . . . . . . . . . . . . . .
Other comprehensive income . . .
Payments and redemptions . . . . . . .
As of March 31, 2018 . . . . . . . . . . .
Gains or losses recognized in net
income on financial instruments
held at March 31, 2018 . . . . . . . .

Derivative
financial assets

Other

3,942

¥ 5,474¥104,926

1,330,230
159,956
1,814,047(467,300)–(6,703)
1,665
21,742(940)
186,579

115
(54)
–
–
–

5,864
2,552
295,579(11,432)–(123,455)–––

135,477(94,529)
42,090¥7,101,007––(73,141)¥133,144––(5,333)¥ 202––
23,746¥421,235¥1,228,466¥ (7,490)¥¥

Financial assets

Equity securities

As of April 1, 2018 . . . . . . . . . . . . .
Gains or losses
Net income . . . . . . . . . . . . . . . . .
Other comprehensive income . . .
Purchases . . . . . . . . . . . . . . . . . . . .
Sales . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . .
Transfer relating to applying the useof the equity method . . . . . . . . . .
Transfer relating to discontinuing
the use of the equity method . . . .
Transfers to Level 1 due to listing . .
Other . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . .
Gains or losses recognized in net
income on financial instruments
held at March 31, 2019 . . . . . . . .

¥4,304,491

Bonds and loans¥

Interest-bearingdebt¥ 43,164(4,582)(5,642)(32,940)
¥
–

¥

174

Corporate Information

For the fiscal year ended March 31, 2019

For the fiscal year ended March 31, 2018(23,980)

Financial Section–

Gains and losses recognized in profits or losses are included in “Operating income from SoftBank
Vision Fund and Delta Fund,” “Derivative gain (loss),” and “Gain (loss) from financial instruments at
FVTPL” in the consolidated statement of income. Gains or losses recognized in other comprehensive
income, net of tax, are included in “Available for sale financial assets” and “Exchange differences ontranslating foreign operations” in the consolidated statement of comprehensive income.

115

6,638

(Thousands of U.S. dollars)
Derivative
financial assets

Other

35,517$ 49,320$ 945,364

11,985,134
1,441,175
16,344,238(4,210,289)–(60,393)
15,001
195,892(8,469)1,681,043

1,036
(487)
–
–
–

52,83422,993
2,663,114(103,000)–(1,112,307)

–

–

–

1,220,623(851,689)
379,222$63,978,799––(658,987)$1,199,604––(48,049)$ 1,820––
213,947$3,795,252$11,068,258$ (67,484)$ 1,036$

Financial assets

Equity securities

As of April 1, 2018 . . . . . . . . . . . . .
Gains or losses
Net income . . . . . . . . . . . . . . . . .
Other comprehensive income . . .
Purchases . . . . . . . . . . . . . . . . . . . .
Sales . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . .
Transfer relating to applying the useof the equity method . . . . . . . . . .
Transfer relating to discontinuing
the use of the equity method . . . .
Transfers to Level 1 due to listing . .
Other . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . .
Gains or losses recognized in net
income on financial instruments
held at March 31, 2019 . . . . . . . .

$38,782,692

Bonds and loans$

59,807

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Management Organization

Gains or losses recognized in net income are included in “Operating income from SoftBank Vision
Fund and Delta Fund,” “Derivative gain (loss),” and “Gain (loss) from financial instruments at FVTPL”
in the consolidated statement of income. Gains or losses recognized in other comprehensive income,net of tax, are included in “Equity financial assets at FVTOCI,” “Debt financial assets at FVTOCI” and“Exchange differences on translating foreign operations” in the consolidated statement of comprehensive income.

(3) Carrying amounts and fair values of financial instruments
The table below presents carrying amounts and fair values of financial instruments.

Financial Section

175

Corporate Information(Thousands of U.S. dollars)
Fair value

Interest bearing debt
(Non-current)Long-term borrowings. .
Corporate bonds . . . . . .
Lease obligations . . . . . .
Installment payables . . .
Total . . . . . . . . . . . . .

Carrying amount

Level 1

Level 2

Level 3Total

$ 44,245,373
58,913,280
6,750,626
47,888$109,957,167$11,037,102
21,907,974––$32,945,076$28,266,078
39,055,762
1,478–$67,323,318$ 5,289,017–
6,827,201
49,671$12,165,889$ 44,592,197
60,963,736
6,828,679
49,671$112,434,283

As of March 31, 2018
(Millions of yen)
Fair value

Interest bearing debt
(Non-current)Long-term borrowings. .
Corporate bonds . . . . . .
Lease obligations . . . . . .
Installment payables . . .
Total . . . . . . . . . . . . .

Carrying amount

Level 1

Level 2

Level 3

Total

¥ 5,121,591
7,234,049
766,204
14,607¥13,136,451¥1,085,883
2,612,392––¥3,698,275¥3,662,081
4,718,521
15–¥8,380,617¥ 469,058
31,799777,652
14,751¥1,293,260¥ 5,217,022
7,362,712
777,667
14,751¥13,372,152

As of March 31, 2019
(Millions of yen)
Fair value
Carrying amountInterest bearing debt
(Non-current)Long-term borrowings. .
Corporate bonds . . . . . .
Lease obligations . . . . . .
Installment payables . . .
Total . . . . . . . . . . . . .

¥ 4,910,794
6,538,785
749,252
5,315¥12,204,146

Level 1

¥1,225,008
2,431,566––¥3,656,574

Level 2

¥3,137,252
4,334,799
164–¥7,472,215

Level 3

¥ 587,028–
757,751
5,513¥1,350,292

Financial instruments whose carrying amounts are reasonably similar to fair values are not included in thetable above. Financial instruments that are measured at fair value on a recurring basis are also excluded
because their fair values are the same as their carrying amounts.
The major valuation techniques for fair value measurements of the above financial liabilities are as follows:a. Long-term borrowings
Fair values of the non-current portion of long-term borrowings are measured using quoted prices in
active markets if such prices are available, and the measurement is categorized as Level 1. Where suchprices in active markets are not available, fair values of the non-current portion of long-term borrowings are measured based on the discounted cash flow method using observable inputs such as market
interest rates, and the measurement is categorized as Level 2. Fair values of the non-current portion of
long-term borrowings are measured based on the discounted cash flow method using an interest rate
including the credit spread that would be used for a borrowing with the same terms and maturity.
Those borrowings are categorized as Level 3.

Total¥4,949,288
6,766,365757,915
5,513¥12,479,081

b. Corporate bonds
Fair values of the non-current portion of corporate bonds are mainly categorized as Level 1 or Level 2.
When the fair value is measured using quoted prices in active markets for identical bonds, it iscategorized as Level 1. When the fair value is measured using quoted prices that are observable inmarkets that are not active for identical bonds, it is categorized as Level 2.
c. Lease obligations
Fair values of the non-current portion of lease obligations are mainly measured based on the
discounted cash flow method using an interest rate considering the period until payment and credit
risk, and are categorized as Level 3. Also, the fair value amount of the non-current portion of leaseobligations which are categorized as Level 2 is insignificant.

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Growth Strategy

d. Installment payables
Fair values of the non-current portion of installment payables are measured based on the discounted
cash flow method using an interest rate adjusted for the remaining repayment period and credit risks,
and the measurement are categorized as Level 3.

31. Transfers of financial assets
The Company enters into securitization transactions involving trade and installment receivables.
The major securitization transactions involve the securitization of receivables related to wireless service
charges due from subscribers, future lease receivables occurring from lease transactions of devices tocustomers, and installment receivables recognized from the mobile handset sales business.
For each transaction, the Company transferred receivables to financial institutions and acquired cash and asubordinate interest in the transferred receivables for financing purposes. The receivables sold are not derecognized because in each transaction, the Company retains a subordinate interest and, therefore, substantiallyretains all the risks and rewards of ownership of the transferred assets. Cash received from transferring thereceivables are included in “Interest-bearing debt” under current liabilities and non-current liabilities.
The following table presents the carrying amount of financial assets and related liabilities that aretransferred but do not meet the derecognition criteria, as well as the fair value where related liabilities haverecourse only to the transferred assets:

Carrying amount of transferred assets . . . . . . . . .
Carrying amount of related liabilities . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥ 993,246(876,062)¥1,070,696(949,374)$ 9,646,779(8,553,690)¥ 993,246(875,490)¥ 117,756¥1,070,696(948,688)¥ 122,008$ 9,646,779(8,547,509)$ 1,099,270(Fair value of financial assets and financial liabilities
where related liabilities have recourse only to thetransferred assets)
Fair value of transferred assets . . . . . . . . . . . . . .
Fair value of related liabilities . . . . . . . . . . . . . . .
Net position . . . . . . . . . . . . . . . . . . . . . . . . . .

The difference between transferred assets and related liabilities is the subordinate interest which theCompany retains on securitization.

Management Organization

Financial Section

Corporate Information

176

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177

32. Offsetting financial assets and liabilities
The following table presents the amount of financial assets and liabilities offset in the consolidated statement of financial position, as well as the amount of financial assets and liabilities that are under enforceable master netting
agreements or similar contracts, but are not offset as they do not meet certain or all criteria of offsetting.
Rights to offset based on the enforceable master netting agreements or similar contracts are enforceable only in certain events such as bankruptcy or obligation default of the counterparty.
As of March 31, 2018
(Millions of yen)

Financial assets

Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gross amount offinancial assets

Gross amount offinancial liabilities
offset against
financial assets

Net amount of financial
assets presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount¥139,094
57,032¥196,126¥(87,629)(194)¥(87,823)¥ 51,465
56,838¥108,303¥(33,583)(43,365)¥(76,948)¥17,882
13,473¥31,355

Gross amount offinancial liabilities

Gross amount offinancial assets
offset against
financial liabilities

Net amount of financial
liabilities presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount¥254,163
151,024
64,487¥469,674¥(87,629)
(14)
(180)
¥(87,823)¥166,534
151,01064,307¥381,851¥(33,442)(11,285)(32,221)¥(76,948)¥133,092
139,725
32,086¥304,903

Gross amount offinancial assets

Gross amount offinancial liabilities
offset against
financial assets

Net amount of financial
assets presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount¥169,649
8,338¥177,987¥(91,150)(462)¥(91,612)¥78,499
7,876¥86,375¥(33,156)(7,227)¥(40,383)¥45,343649¥45,992

Gross amount offinancial liabilities

Gross amount offinancial assets
offset against
financial liabilities

Net amount of financial
liabilities presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount¥297,005
137,000
294¥434,299¥(91,150)(462)–¥(91,612)¥205,855
136,538
294¥342,687¥(32,986)(7,272)(125)¥(40,383)¥172,869
129,266
169¥302,304(Millions of yen)

Financial liabilities

Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As of March 31, 2019
(Millions of yen)

Financial assets

Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)

Financial liabilities

Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Management Organization

Financial Section

178

Corporate Information(Thousands of U.S. dollars)

Financial assets

Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gross amount offinancial assets

Gross amount offinancial liabilities
offset against
financial assets

Net amount of financial
assets presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount$1,528,507
75,124$1,603,631$(821,244)(4,163)$(825,407)$707,263
70,961$778,224$(298,730)(65,114)$(363,844)$408,533
5,847$414,380

Gross amount offinancial liabilities

Gross amount offinancial assets
offset against
financial liabilities

Net amount of financial
liabilities presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount$2,675,962
1,234,345
2,649$3,912,956$(821,245)(4,162)–$(825,407)$1,854,717
1,230,183
2,649$3,087,549$(297,198)(65,520)(1,126)$(363,844)$1,557,519
1,164,663
1,523$2,723,705(Thousands of U.S. dollars)

Financial liabilities

Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33. Foreign currency exchange rates

For the fiscal year ended March 31, 2019

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

U.S. dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British pound . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As ofMarch 31, 2018

As ofMarch 31, 2019¥106.24¥148.84¥110.99¥144.98(2) Average rate for the quarter
For the fiscal year ended March 31, 2018
(Yen)

U.S. dollars . . . . . . . . . . . . .
British pound . . . . . . . . . . .

Three-month
period ended
June 30, 2017

Three-month
period ended
September 30, 2017

Three-month
period ended
December 31, 2017

Three-month
period ended
March 31, 2018¥111.61¥142.92¥111.38¥146.20¥112.74¥150.77¥108.85¥151.01(Yen)

U.S. dollars . . . . . . . . . . . . .
British pound . . . . . . . . . . .

Three-month
period ended
June 30, 2018

Three-month
period ended
September 30, 2018

Three-month
period ended
December 31, 2018

Three-month
period ended
March 31, 2019¥108.71¥147.54¥111.55¥145.84¥112.83¥144.48¥110.46¥143.99(3) Foreign exchange sensitivity analysis for exchange differences on translating foreign operations
The table below presents the effect of a 1% appreciation of the Japanese yen against the U.S. dollar, British
pound and Chinese yuan, which are the main foreign currencies of the Company, regarding the translation ofassets, liabilities, and interests in net assets of foreign operations into the presentation currency, assuming that
all other factors are constant.
Impact of exchange differences on translating foreign operations (decrease in equity)

U.S. dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
British pound . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chinese yuan . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(29,152)(36,114)(18,850)¥(38,583)(36,275)(20,625)$(347,626)(326,831)(185,828)

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy(1) Common stocka. Shares authorized
The number of shares authorized to be issued is as follows:(Thousands of shares)
March 31, 2018

March 31, 2019

3,600,000

3,600,000

b. Shares issued
Changes in the number of shares issued are as follows:(Thousands of shares)

Balance at the beginning of the year . . . . . . . . . . . . . . . . . . . .
Increase during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at the end of the year . . . . . . . . . . . . . . . . . . . . . . . .

Financial Section

Corporate Information

179

Associated with this transaction, ¥1,221,363 million ($11,004,262 thousand), the amount equivalent
to the gain on the disposal of interests in subsidiaries, was recorded in “Changes in interests in subsidiaries” under capital surplus.

34. Equity

Ordinary shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Management Organization

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

1,100,660––
1,100,660

1,100,660––
1,100,660

Notes:
1. Shares issued by the Company is common stock with no par value.
2. Shares issued have been fully paid.

(3) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years Resettable
Notes and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the“Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditionalright to avoid delivering cash or another financial asset except for distribution of residual assets on liquidation.
Payments of interest were completed on the interest payment dates, July 19, 2018 and January 22, 2019, and“Retained earnings” decreased by ¥16,087 million ($144,941 thousand) and ¥15,649 million ($140,995 thousand)(for the fiscal year ended March 31, 2018: decreased by ¥15,852 million on January 19, 2018), respectively, as“Distribution to owners of other equity instruments” in the consolidated statement of changes in equity.
In addition, accrued interest, which is not recognized as a distribution to owners of other equity
instruments because the payment has not yet been determined, is ¥6,333 million ($57,059 thousand) as ofMarch 31, 2019 (¥6,062 million as of March 31, 2018).

(4) Retained earnings(2) Capital surplus
Capital surplus of the Company includes additional paid-in capital, which is legal capital surplus. Under theCompanies Act of Japan (the “Companies Act”), at least 50% of the proceeds upon issuance of equity
instruments shall be credited to common stock. The remainder of the proceeds shall be credited to additional
paid-in capital. The Companies Act permits, upon approval at the general meeting of shareholders, thetransfer of amounts from additional paid-in capital to common stock.
For the fiscal year ended March 31, 2019a. In August, 2018, SoftBank Corp. acquired Yahoo Japan Corporation shares mainly from Altaba Inc. for¥221.0 billion (ownership percentage 10.78%). In addition, Yahoo Japan Corporation acquired its own
shares from SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company, for ¥220.0
billion (ownership percentage 10.73%). As a result of the transaction, the ownership percentage in Yahoo
Japan Corporation by the Company changed from 42.95% to 48.17%. Along with the transaction, ¥56,632
million ($510,244 thousand) was deducted from capital surplus as “Changes in interests in subsidiaries.”b. On December 19, 2018, a portion of SoftBank Corp. shares (ownership percentage 33.50%) held by
SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company, was disposed of. As aresult, the ownership percentage in SoftBank Corp. by the Company has changed from 99.99% to66.49%.

Retained earnings of the Company include the reserve legally required as legal retained earnings. The
Companies Act provides that 10% of the dividend of retained earnings shall be appropriated as legal capitalsurplus or as legal retained earnings until their aggregate amount equals 25% of common stock. The legal
retained earnings may be used to eliminate or reduce a deficit or be transferred to retained earnings upon
approval at the general meeting of shareholders.

(5) Treasury stock
The Companies Act provides for companies to purchase treasury stock and dispose of such treasury stock byresolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amountavailable for distribution to the shareholders which is determined by a specific formula.
Changes in treasury stock are as follows:(Thousands of shares)

Balance at the beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . .
Increase during the year* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 201911,3784(220)
11,162

11,162
36,713(1,048)46,827Note:* The number of shares of treasury stock acquired based on the resolution passed at the Board of Directors’ meeting for the fiscal year ended
March 31, 2019 was 36,709 thousand and total acquisition cost was ¥384,068 million ($3,460,384 thousand).

SoftBank Group Corp.
ANNUAL REPORT 2019

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Growth Strategy

Management Organization

Financial Section

Corporate Information

180(6) Accumulated other comprehensive income
The changes in the accumulated other comprehensive income are as follows:(Millions of yen)
Remeasurements ofdefined benefit plan

As of April 1, 2017 . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income(attributable to owners of the parent) . . . .
Transfer to retained earnings . . . . . . . . . . . .
As of March 31, 2018 . . . . . . . . . . . . . . . . . . .
Effect of retrospective adjustments due toadoption of new standards* . . . . . . . . . . .
As of April 1, 2018 (after adjustments) . . . . . .
Other comprehensive income(attributable to owners of the parent) . . . .
Transfer to retained earnings . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . . . . . . .

¥Available-for-sale financial
assets–¥ 11,983

7,438(7,438)¥–Cash flow hedges

Exchange differenceson translating foreign
operations¥–¥(44,877)¥244,140¥211,246¥–––(10,409)–¥(55,286)

65,405–¥309,545

114,151(7,438)¥317,959

11,127¥11,12741¥ 41–¥(55,286)(5,296)¥304,249(57,828)¥260,131(4,191)(275)¥ 6,661

226
–
¥267

9,495
–
¥(45,791)

24,882–¥329,131

29,036
1,101¥290,268

Total

Equity financial assets at
FVTOCI¥–

51,717–¥ 63,700

¥

–
–
–

–
–

(63,700)¥–(1,376)
1,376
¥
–

–
–
–

¥

¥

Debt financial assets at
FVTOCI

Total(Thousands of U.S. dollars)Remeasurements ofdefined benefit plan

As of March 31, 2018 . . . . . . . . . . . . . . . . . . .
Effect of retrospective adjustments due toadoption of new standards* . . . . . . . . . . .
As of April 1, 2018 (after adjustments) . . . . . .
Other comprehensive income(attributable to owners of the parent) . . . .
Transfer to retained earnings . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . . . . . . .

Available-for-sale financial
assetsCash flow hedges

Exchange differenceson translating foreign
operations–$(498,117)$2,788,945$2,864,754

100,252$100,252

370
$ 370

–
$(498,117)(47,716)$2,741,229(521,020)$2,343,734(37,760)(2,478)$ 60,014

2,036–$2,40685,548224,183–$2,965,412

261,609
9,920$2,615,263

Equity financial assets at
FVTOCI$–$ 573,926

$

$

–
–

(573,926)$–(12,398)
12,398
$
–

–
–
–

$

–

Debt financial assets at
FVTOCI$$(412,569)

The above amount is presented net of the tax effect. The amount of income taxes on each item in other comprehensive income is described in “Note 45. Other comprehensive income.”
Note:* In accordance with the adoption of IFRS 9, “Financial Instruments,” and IFRS 15, “Revenue from Contracts with Customers,” cumulative effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings and accumulated other comprehensive income. The
details are described in “Note 4. Changes in Accounting Policies.”

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Management Organization

Financial Section

181

Corporate Information

35. Dividends
In accordance with the Companies Act, SoftBank Group Corp. has prescribed in its articles of incorporation that semiannual interim dividends may be paid once a year upon resolution by the Board of Directors.
Dividends paid are as follows:
For the fiscal year ended March 31, 2018
Resolution

Dividends per share

Total dividends(Yen)(Millions of yen)¥22
22

¥23,964
23,969Class of shares

Shareholders’ meeting held on June 21, 2017. . . . . . . . . . . . . . . . . Common stock
Board of directors’ meeting held on October 27, 2017 . . . . . . . . . . Common stock

Record date

Effective date

March 31, 2017
September 30, 2017

June 22, 2017
December 11, 2017

For the fiscal year ended March 31, 2019
Dividends per share
Resolution

Class of shares

Shareholders’ meeting held on June 20, 2018. . . . . . . . . . . . . . . . . Common stock
Board of directors’ meeting held on October 31, 2018 . . . . . . . . . . Common stock

Total dividends

(Yen)

(USD)

(Millions of yen)(Thousands of U.S. dollars)

¥22
22

$0.20
0.20

¥23,969
23,982$215,956
216,074

Record date

Effective date

March 31, 2018
September 30, 2018

June 21, 2018
December 10, 2018

Dividends which will become effective during the fiscal year ending March 31, 2020 are as follows:
Dividends per share
Resolution

Class of shares

Shareholders’ meeting held on June 19, 2019. . . . . . . . . . . . . . . . . Common stock

Total dividends

(Yen)

(USD)

(Millions of yen)(Thousands of U.S. dollars)

¥22

$0.20

¥23,184$208,884

Record date

Effective date

March 31, 2019

June 20, 2019

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36. Share-based payment transactions

Expense arising from share-based payment(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥27,844
4,979¥32,823¥27,593
5,798¥33,391$248,608
52,239$300,847(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥10,53676¥12,246
91$110,334
820

Liability arising from share-based payment

Liability arising from share-based payment . . . . .
Liability vested in the above . . . . . . . . . . . . . . . .

Financial Section

182

Corporate Information(1) Stock option plan

The Company grants stock options, restricted stock units and phantom stock as share-based payment awards.
Share-based payment awards are granted to the Company’s directors, employees and other service providers,
based on the terms resolved at the Company’s shareholders’ meeting or Board of Directors’ meeting.
Share-based payment awards are accounted for as equity-settled share-based payments and cash-settled
share-based payments. Expense and liability amounts recognized from share-based payment awards are as
follows:

Equity-settled . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash-settled . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Management Organization

a. Details of the stock option plan
The Company grants stock options as equity-settled share-based payments and cash-settled sharebased payments. The details of the Company’s stock option plan for the years ended March 31, 2018and 2019 are as follows:(a) SoftBank Group Corp.
SoftBank Group Corp. grants stock options to its directors and employees. Shares granted by theexercise of stock options are those issued by SoftBank Group Corp.
Year issued / Name

Grant dateDue date for exercise

2010 – 6th Stock Acquisition Rights1. . . . . . .
2016 July Stock Acquisition Rights2 . . . . . . . .
2017 February Stock Acquisition Rights2 . . . .
2017 July Stock Acquisition Rights2 . . . . . . . .
2018 August Stock Acquisition Rights3 . . . . .

August 27, 2010
July 28, 2016
February 27, 2017
July 28, 2017
August 31, 2018

June 30, 2017
July 31, 2022
February 28, 2023
July 31, 2023
August 31, 2025

Notes:
1.Vesting condition
A person entitled to the vested stock acquisition rights (“entitled person”) is able to exercise these rights only when all of thefollowing conditions are satisfied:i. total free cash flows in the consolidated statement of cash flows for the years ended in March 2010, 2011 and 2012 in the
Annual Securities Report filed by SoftBank Group Corp. based on the Financial Instruments and Exchange Act exceed ¥1.0 trillion;
ii. net interest-bearing debt in the consolidated balance sheet for the year ended in March 2012 in the Annual Securities Report
filed by SoftBank Group Corp. based on the Financial Instruments and Exchange Act is less than ¥0.97 trillion; and,iii. total operating income in the consolidated statement of income for the years ended in March 2011 and 2012 in the Annual
Securities Report filed by SoftBank Group Corp. based on the Financial Instruments and Exchange Act exceeds ¥1.1 trillion.
The amount of the stock acquisition rights exercisable by an entitled person is limited as prescribed in “a” through “d” below.
Fractional points, if any, of the exercisable stock acquisition rights are rounded down.
a. from July 1, 2012 through June 30, 2013: 25% of the allocated amount of stock acquisition rights
b. from July 1, 2013 through June 30, 2014: 50% of the allocated amount of stock acquisition rights along with the stockacquisition rights exercised in the period “a” abovec. from July 1, 2014 through June 30, 2015: 75% of the allocated amount of stock acquisition rights along with the stockacquisition rights exercised in the period “a” and “b” aboved. from July 1, 2015 through June 30, 2017: 100% of the allocated amount of stock acquisition rights along with the stockacquisition rights exercised in the period “a” through “c” above
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.
2.Vesting condition
Stock options vest when the service period requirements are met, and the vesting period is 2 years.
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.
3.Vesting condition
Stock options vest when the service period requirements are met, and the vesting period is 3 years.
If the Number of exercisable stock acquisition rights
The amount of the stock acquisition rights exercisable by an entitled person is limited as prescribed in “a” through “d” below
when the number of shares granted by the stock acquisition rights initially allotted is over 400. Fractional points, if any, of theexercisable stock acquisition rights are rounded down.
a. from September 1, 2021 through August 31, 2022: 25% of the allocated amount of stock acquisition rights
b. from September 1, 2022 through August 31, 2023: 50% of the allocated amount of stock acquisition rights along with thestock acquisition rights exercised in the period “a” abovec. from September 1, 2023 through August 31, 2024: 75% of the allocated amount of stock acquisition rights along with thestock acquisition rights exercised in the period “a” and “b” above

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d. from September 1, 2024 through August 31, 2025: 100% of the allocated amount of stock acquisition rights along with thestock acquisition rights exercised in the period “a” through “c” above
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.

(b) Sprint
Sprint grants stock options to its directors, employees and other service providers. Shares grantedby the exercise of stock options are those issued by Sprint Corporation.
Year issued / Name

Grant date2007 Omnibus Incentive Plan . . . . . . . From March 26, 2008
through May 31, 2015
2015 Omnibus Incentive Plan . . . . . . . From August 25, 2015
through January 30, 2018

Due date for exercise

From March 26, 2018
through May 31, 2025
From August 25, 2025
through January 30, 2028

Note:
Vesting condition
Generally, stock options vest when service period requirements are met. The vesting period is generally 3 years and vests each period
equally.

(c) SoftBank Corp.
SoftBank Corp. grants stock options to its directors and employees. Shares granted by the exerciseof stock options are those issued by SoftBank Corp.
Year issued / Name

Grant dateDue date for exercise

2018 March Stock Acquisition Rights*

March 30, 2018

March 31, 2025

Note:
* Vesting condition
In case the common stock of SoftBank Corp. are newly listed on the financial instruments market established by the financial
instruments exchange by March 31, 2020, an entitled person is able to exercise these rights.
Also, the number of these rights which an entitled person is able to exercise is as follows:i. where the total number of shares granted by the stock acquisition rights initially allotted is from 3,000 to less than 12,000 shares,
the number of the stock acquisition rights which an entitled person is able to exercise is limited to the following number during
the following period.
a. up to 30% of the total allotted rights is exercisable from April 1, 2020 to March 31, 2021.
b. up to 60% of the total allotted rights including the rights exercised during the period of (a) is exercisable from April 1, 2021 toMarch 31, 2022.
c. up to 100% of the total allotted rights including the rights exercised during the period of (a) and (b) is exercisable from April 1,
2022 to March 31, 2025.
ii. where the total number of shares granted by the stock acquisition rights initially allotted is 12,000 or more shares, the number ofthe stock acquisition rights which an entitled person is able to exercise is limited to the following number during the following
period.
a. up to 20% of the total allotted rights is exercisable from April 1, 2020 to March 31, 2021.
b. up to 40% of the total allotted rights including the rights exercised during the period of (a) is exercisable from April 1, 2021 toMarch 31, 2022.
c. up to 60% of the total allotted rights including the rights exercised during the period of (a) and (b) is exercisable from April 1,
2022 to March 31, 2023.
d. up to 80% of the total allotted rights including the rights exercised during the period of (a), (b), and (c) is exercisable from
April 1, 2023 to March 31, 2024.
e. up to 100% of the total allotted rights including the rights exercised during the period of (a), (b), (c), and (d) is exercisablefrom April 1, 2024 to March 31, 2025.
When an eligible person (director, employee or executive officer) retires, the unexercised acquisition rights are forfeited. However,this shall not apply in the case of a good cause, such as resignation due to expiration of the term or mandatory retirement.

Management Organization

Financial Section

Corporate Information

183(d) Yahoo Japan Corporation
Yahoo Japan Corporation grants stock options to its directors and employees. Shares granted by
the exercise of stock options are those issued by Yahoo Japan Corporation.
Year issued / Name

Grant dateDue date for exercise

2007 1

From May 8, 2007 throughFebruary 13, 2008
From May 9, 2008 throughFebruary 10, 2009
From May 12, 2009 throughFebruary 10, 2010
From May 11, 2010 throughFebruary 8, 2011
From June 3, 2011 throughFebruary 17, 2012

From April 24, 2017 throughJanuary 30, 2018
From April 25, 2018 throughJanuary 27, 2019
From April 28, 2019 throughJanuary 27, 2020
From April 27, 2020 throughJanuary 25,2021
From May 20, 2021 throughFebruary 3, 2022

May 16, 2012
March 1, 2013

May 2, 2022
February 28, 2023

May 17, 2013
November 19, 2013

May 16, 2023
November 18, 2023

May 26, 2014

May 25, 2024

2008 1
2009 1
2010 1
2011 1
2012
1st 1
2nd 2
2013
1st 3
2nd 4
2014
1st 4

Notes:
1. Vesting condition
Rights are mainly starting to vest in stages after 2 years from the grant date. One-half of the total grant vests after 2 years fromthe grant date, and one fourth grant vests per year for the subsequent 2 years. Vesting requires continuous service from the grant
date to the vesting date. When an eligible person retires, vested acquisition rights are forfeited.
2. Vesting condition
Rights vest according to the amount of operating income achieved as specified in either (i) or (ii) below in the period from thefiscal year ended in March 2014 through the fiscal year ending in March 2019.
i. If the operating income exceeds ¥250 billion
Period of achievement: By fiscal year March 2016
Exercisable ratio: 20%
Period of achievement: By fiscal year March 2017
Exercisable ratio: 14%
Period of achievement: By fiscal year March 2018
Exercisable ratio: 8%
Period of achievement: By fiscal year March 2019
Exercisable ratio: 2%
ii. If the operating income exceeds ¥330 billion
Period of achievement: By fiscal year March 2016 Exercisable ratio: 80%
Period of achievement: By fiscal year March 2017 Exercisable ratio: 56%
Period of achievement: By fiscal year March 2018 Exercisable ratio: 32%
Period of achievement: By fiscal year March 2019 Exercisable ratio: 8%
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.

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3. Vesting condition
Rights vest according to the amount of operating income achieved as specified in either (i) or (ii) below in the period from thefiscal year ended in March 2014 through the fiscal year ending in March 2019.
i. If the operating income exceeds ¥250 billion Exercisable ratio: 20%
ii. If the operating income exceeds ¥330 billion Exercisable ratio: 80%
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.
4. Vesting condition
Rights vest once the operating income for the fiscal year exceeds ¥330 billion in either of the period from the fiscal year ended in
March 2015 through the fiscal year ending in March 2019. Vesting requires continuous service from the grant date to the vestingdate. When an eligible person retires, vested acquisition rights are forfeited.

b. Fair value of stock options granted during the period
Weighted-average fair value and fair value measurement at the measurement date of the stock options
granted during the period are as follows:(a) SoftBank Group Corp.
The weighted-average fair value at the measurement date of the stock options granted during theperiod is ¥10,103 ($91.03) (for the fiscal year ended March 31, 2018: ¥2,281).
Fair value is measured as follows:Year issued / Name
Valuation method used

Fiscal year ended March 31, 2018

Fiscal year ended March 31, 20192017 July stockacquisition rights

2018 August stockacquisition rights

Black-Scholes model(Yen)Black-Scholes model
(Yen)
(USD)

Key inputs and assumptions:
Weighted-average stock price. . .
Weighted-average exercise price. . .
Volatility of stock price* . . . . . .
Estimated residual period . . . . .

¥9,168¥9,58235.40%
4 years

Estimated dividend . . . . . . . . . .

¥44/per share

Risk-free interest rate. . . . . . . . .

(0.07)%¥10,300$92.80¥1$0.01
33.89 – 36.54%
3 – 6 years¥44/$0.40/
per shareper share(0.09) – (0.03)%

Note:* Volatility of the stock price is calculated based on the performance of the stock price for the most recent period depending on the
period to maturity.

Management Organization

Financial Section

Corporate Information

184(b) Sprint
For the fiscal year ended March 31, 2018
The weighted-average fair value at the measurement date of the stock options granted during
the period is $3.98.
Fair value is measured as follows:
Fiscal year ended March 31, 2018Year issued / Name
Valuation method used
Key inputs and assumptions:
Weighted-average stock price . . . .
Weighted-average exercise price. . . .
Volatility of stock price* . . . . . . . .
Estimated residual period . . . . . . .
Estimated dividend . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . .

2015 Omnibus Incentive Plan

Black-Scholes model
(USD)
$7.96
$7.96
50.85%
6 years
–
2.02%

Note:
* Volatility of the stock price is calculated based on the performance of the stock price for the most recent period depending on the
period to maturity.

(c) SoftBank Corp.
For the fiscal year ended March 31, 2018
The weighted-average fair value at the measurement date of the stock options granted during
the period is ¥79.
Fair value is measured as follows:
Fiscal year ended March 31, 2018Year issued / Name
Valuation method used
Key inputs and assumptions:
Weighted-average stock price . . .
Weighted-average exercise price . .
Volatility of stock price* . . . . . .
Estimated residual period . . . . .
Estimated dividend . . . . . . . . . .
Risk-free interest rate. . . . . . . . .

2018 August stock acquisition rights

Black-Scholes model
(Yen)
¥623
¥623
24.32%
5 years¥22/ per share(0.10)%

Notes:
1. Volatility of the stock price is calculated based on the performance of the stock price of comparable peer companies for the mostrecent period depending on the period to maturity.
2. Estimated dividend is calculated based on average value of most recent estimated dividend rate of comparable peer companies.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Corporate Information

Fiscal year ended March 31, 2018

Fiscal year ended March 31, 2019

Number ofshares

Weightedaverage
exercise price(Yen)

Number ofshares

Weightedaverage
exercise price
(Yen)
(USD)

Beginning balance –Unexercised . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . .
Exercised. . . . . . . . . . . . . . . .
Matured . . . . . . . . . . . . . . . .
Ending balance –Unexercised . . . . . . . . . . . . .

4,586,400
5,002,000(169,000)(220,100)(7,300)¥6,040
9,582
7,212
2,625
2,625

9,192,000
719,700(82,700)(1,048,400)–¥8,031
1
7,146
6,159
–

$72.36
0.01
64.38
55.49
–

9,192,000

8,031

8,780,600

7,604

68.51

Ending balance –Exercisable . . . . . . . . . . . . .

–¥3,184,000¥6,241$56.23Fiscal year ended March 31, 2018

Fiscal year ended March 31, 2019

Number ofshares

Weightedaverage
exercise price(USD)

Number ofshares

Weightedaverage
exercise price(USD)

Beginning balance –Unexercised . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . .
Exercised. . . . . . . . . . . . . . . .
Matured . . . . . . . . . . . . . . . .
Ending balance –Unexercised . . . . . . . . . . . .

37,179,286
3,438,907(2,370,908)(8,236,014)(708,182)

$4.57
7.96
4.92
3.90
5.92

29,303,089–(1,347,641)(5,584,169)(367,820)

$5.09
–
5.23
3.87
7.14

29,303,089

5.09

22,003,459

5.36

Ending balance –Exercisable . . . . . . . . . . . . .

18,206,235$5.14

18,009,705$5.35

Number of shares

Weighted-average
exercise price (USD)

Weighted-averageremaining contract
period (year)

1,175,758
5,630,173
6,171,562
3,195,287
535,168
5,295,511
22,003,459

$2.06
3.45
4.73
5.59
6.20
8.64
$5.36

3.16
6.15
5.91
5.64
7.51
6.47
5.96

The unexercised options as of March 31, 2019 are as follows:

The unexercised options as of March 31, 2019 are as follows:
Range ofexercise price
(Yen)

¥

Range ofexercise price(USD)1$ 0.01
6,159
55.49
8,891
80.11
9,582
86.33
Total . . . . . . . . . . . . . . . . . .

Number ofshares702,100
3,089,000
95,0004,894,500
8,780,600

Weightedaverage
exercise price
(Yen)

¥

1
6,159
8,891
9,582
¥7,604185(b) Sprintc. Changes in stock options during the period and the condition of stock options at the period end
Such changes during the period and at the period end are as follows:(a) SoftBank Group Corp.

–

Financial Section

Weightedaverage
exercise price(USD)

Weightedaverage remaining
contract period(year)$ 0.01
55.49
80.11
86.33
$68.51

6.4
3.3
3.9
4.3
4.1

Range of exercise price (USD)$0.00 – $3.00 . . . . . . . . . . . . . . . . .
3.01 – 4.00 . . . . . . . . . . . . . . . . .
4.01 – 5.00 . . . . . . . . . . . . . . . . .
5.01 – 6.00 . . . . . . . . . . . . . . . . .
6.01 – 7.00 . . . . . . . . . . . . . . . . .
7.01 – 10.00 . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . .

SoftBank Group Corp.
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Management Organization

186

Corporate Information

The unexercised options as of March 31, 2019 are as follows:(c) SoftBank Corp.
Fiscal year ended March 31, 2018

Fiscal year ended March 31, 2019

Weightedaverage
exercise price(Yen)

Weightedaverage
exercise price
(Yen)
(USD)

Number ofsharesBeginning balance –Unexercised . . . . . . . . . . . .
–Granted . . . . . . . . . . . . . . . . 120,002,300
Forfeited . . . . . . . . . . . . . . . .
–Exercised. . . . . . . . . . . . . . . .
–Ending balance –Unexercised . . . . . . . . . . . . 120,002,300
Ending balance –Exercisable . . . . . . . . . . . . .
–Number ofshares

¥ –
623
–
–

120,002,300

623
¥

–

(2,226,200)
–

¥623
–
623
–

$5.61
–
5.61
–

117,776,100

623

5.61

¥

$

–

–

–

Of the ending balance exercisable, the weighted-average exercise price as of March 31, 2019was ¥623 ($5.61) and the weighted average remaining contract period was 6 years.

Range ofexercise price(Yen)

Range ofexercise price(USD)¥201 – ¥300 $1.81 – $2.70
301 – 400
2.71 – 3.60
401 – 500
3.61 – 4.50
501 – 600
4.51 – 5.41
Total . . . . . . . . . . . . . . . . . .

Fiscal year ended March 31, 2019

Number ofshares

Weightedaverage
exercise price(Yen)

Number ofshares

Weightedaverage
exercise price
(Yen)
(USD)

Beginning balance –Unexercised . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . .
Exercised. . . . . . . . . . . . . . . .
Matured . . . . . . . . . . . . . . . .
Ending balance –Unexercised . . . . . . . . . . . .

61,255,300–(4,500,400)(483,700)(284,100)

¥429
–
430
341
438

55,987,100–(8,171,800)(86,100)(483,000)

¥430
–
420
306
424

$3.87
–
3.78
2.76
3.82

55,987,100

430

47,246,200

431

3.88

Ending balance –Exercisable . . . . . . . . . . . . .

1,997,100¥334

1,393,200

¥305

$2.75

Weightedaverage
exercise price(USD)

Weighted-averageremaining
contract period(year)

580,600
18,802,600
9,023,000
18,840,000
47,246,200

¥272
324
493
514
¥431

$2.45
2.92
4.44
4.63
$3.88

2.3
3.8
4.4
4.6
4.2

d. Stock options exercised during the period
Weighted-average stock prices at the date exercised, for those stock options that were exercised
during the period are as follows:(a) SoftBank Group Corp
Fiscal year ended March 31, 2019

Fiscal year ended March 31, 2018(d) Yahoo Japan Corporation
Fiscal year ended March 31, 2018

Number ofshares

Weightedaverage
exercise price(Yen)

Year issued / Name

2010 – 6th Stock
Acquisition Rights

Numberof shares
exercised220,100

Weightedaveragestock priceat exercise(Yen)

Year issued / Name

2016 – July Stock¥8,711 Acquisition Rights

Numberof shares
exercised

1,048,400

Weightedaverage stock priceat exercise
(Yen)
(USD)

¥9,562$86.15

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy(b) Sprint
Fiscal year ended March 31, 2018

Fiscal year ended March 31, 2019

Weightedaveragestock priceat exercise(USD)

Numberof shares
exercised

Weightedaveragestock priceat exercise(USD)

3,730,482$6.12

1,853,687$5.98

Numberof shares
exercisedYear issued / Name

2007 Omnibus
Incentive Plan
2015 Omnibus
Incentive Plan

6,291,429$7.20

1,944,585$7.21

Year issued / Name

2007 Omnibus
Incentive Plan
2015 Omnibus
Incentive Plan(c) Yahoo Japan Corporation
Fiscal year ended March 31, 2019

Fiscal year ended March 31, 2018Year issued / Name

Numberof shares
exercised

Weightedaveragestock priceat exercise
(Yen)

2007
2008
2009
2010
2011
2012

139,500
58,70050,50070,70094,80069,500

¥499
515
505
504
508
521

Year issued / Name

Numberof shares
exercised

Weightedaverage stock priceat exercise
(Yen)
(USD)

2008
2009
2010
2011
2012

17,70018,100
5,300
30,00015,000

¥444
429
481
364
387

$4.00
3.87
4.33
3.28
3.49

(2) Restricted stock unit plan
The Company adopts restricted stock unit (“RSU”) plans where the Company grants stocks, the transfer of whichis restricted for a certain period until vested, and is accounted for as equity-settled share-based payment.
The details of the Company’s RSU plans for the years ended March 31, 2018 and 2019 are as follows:a. Sprint
Sprint grants shares of Sprint Corporation as RSUs to its directors, employees and other service providers.
The fair value of the RSU is generally measured based on the closing price of the stock on the date of
grant.
An RSU generally has performance and service requirements or service requirements only, withvesting periods ranging from one to three years.

Management Organization

Financial Section

Corporate Information

187

During the fiscal year ended March 31, 2018, Sprint granted performance-based RSUs that will beearned upon the achievement of certain market conditions, which are based on the Sprint share price.
The fair value of these market-based RSUs is estimated at the date of grant using the Monte Carlovaluation methodology, which incorporates into the valuation the possibility that the market condition
may not be satisfied. Former market-based RSUs vested 50% over four years from the grant date and
50% over five years from the grant date, however the vesting schedule was modified during the fiscal
year ended March 31, 2018. The market-based RSUs will vest one-third over two years from the grantdate, one-third over three years from the grant date, and one-third over four years from the grant date.
The number of RSUs granted for the fiscal year ended March 31, 2019 was 17,016,199 units. The
weighted-average fair value of RSUs granted for the fiscal year ended March 31, 2019 was $5.35 per unit.
b. Galaxy Investment Holdings, Inc.
Galaxy Investment Holdings, Inc. grants shares of Sprint Corporation as RSUs with cash option to its
directors. For the RSUs settlement, Galaxy Investment Holdings, Inc. holds the option to settle cash in lieu
of Sprint Corporation, and the RSU system is accounted for as an equity-settled share-based compensation. The fair value of RSUs is measured at the grant date.
The RSUs will be entitled to 1/4 of the total number of grants over a 4 year period. It requires one tohave continued employment from the grant date through the vesting date.

(3) Phantom stock
The Company adopts phantom stock awards where the Company pays cash based on the stock price at thevesting date, and they are accounted for as cash-settled share-based payments.
The details of phantom stock for the fiscal years ended March 31, 2018 and 2019 are as follows:
SoftBank Group Corp., SB Group US, Inc., SoftBank Holdings, Inc., and SB Investment Advisers (UK)
Limited granted phantom stock, which is based on the shares of SoftBank Group Corp., to their directors,
employees, and other service providers. The plan requires one to have continued employment from the grant
date through the vesting date. The amount of settlement at the vesting date is determined based on theshare per unit. The details of vesting conditions are as follows:
The number of units and vesting conditions as of March 31, 2019
unit

740,691
1,553,026

Vesting condition

It vests fully when five years pass from the first date of the service period.
Vesting periods are mainly four or six years from the first date of service, or service
provided, and vests over those periods.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

37. Net sales(1) Breakdown of net sales
The components of net sales are as follows.
In accordance with the adoption of IFRS 15, “Revenue from Contracts with Customers,” cumulative
effects of retrospective adjustments are recognized as adjustments to the opening balance of retained
earnings at the date of initial application. Accordingly, comparative information for the fiscal year ended
March 31, 2018 has not been restated.

SoftBank segment
Telecommunications
Retail consumer
Telecom service revenue
Wireless telecom services . . . . . . . . . . . . . . . . . . . . . . . . . .
Broadband services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Products and other sales . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sprint segment
Telecom service revenue
Wireless . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wireline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Products and other sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yahoo Japan segment
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Personal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Arm segment
License revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Royalty revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

Brightstar segment
Products and other sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

188(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019371,580
685,987
1,057,567
181,666¥9,602,236

3,347,869
6,180,620
9,528,489
1,636,778$86,514,425

The above amount of net sales includes ¥697,319 million ($6,282,719 thousand) of revenue from other
withholdings, excluding those arising from IFRS 15 (mainly from lease transactions in the Sprint business.)(2) Contract balance¥1,591,009
361,076
690,759
615,452
377,051
67,667
3,703,014$14,334,706
3,253,230
6,223,615
5,545,112
3,397,162
609,667
33,363,492

2,299,721
113,230
109,110442,098
569,675
3,533,834

20,720,074
1,020,182
983,062
3,983,224
5,132,669
31,839,211

323,272
396,827
201,792
1,648
923,539

2,912,623
3,575,340
1,818,110
14,8488,320,921

60,823
122,725
19,068
202,616

548,004
1,105,730
171,800
1,825,534

The components of contract balances are as follows:

Receivables arising from contracts
with customers . . . . . . . . . . . . . . . . . . . . . . . . .
Contract assets . . . . . . . . . . . . . . . . . . . . . . . . . .
Contract liabilities . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofApril 1, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥1,312,989
72,484
253,101¥1,336,584
140,586
274,252$12,042,382
1,266,655
2,470,961

Contractual assets generally increase when the Company transfers goods or services to a customer(excluding claims for which the right to remuneration is unconditional) before the customer pays theconsideration or before the payment becomes due and decrease when the Company bills the customer.
Contractual liabilities generally increase when the Company receives consideration from a customer prior
to the transfer of goods or services to the customer and decrease when the Company meets its performanceobligations.
For the year ended March 31, 2019, impairment loss on receivables related to revenue from contracts withcustomers was ¥58,964 million ($531,255 thousand).
Of the amount of net sales recognized for the year ended March 31, 2019, ¥203,478 million ($1,833,300
thousand) was included in the beginning balance of contract liabilities as of that date.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

189

Corporate Information(3) Transaction price allocated to residual performance obligation in the contract

39. Gain relating to loss of control over subsidiaries

The total amounts of the transaction price allocated to residual performance obligation in the contract andthe period during which the transaction prices are expected to be recognized as revenue are as follow:

On June 26, 2018, Arm Limited, a British subsidiary of the Company, sold a 51% equity interest in its Chinese
subsidiary, Arm Technology (China) Co., Ltd. (“Arm China”), for $845 million to entities representing certain
institutional investors and certain of Arm’s ecosystem partners in order to form a joint venture for Arm’s
semiconductor technology IP business in China.
As a result of the transaction, Arm China is no longer considered a subsidiary of the Company and has
become an associate accounted for using the equity method. Gain relating to loss of control over subsidiaries
arising from the transaction is ¥176,261 million ($1,588,080 thousand).

Within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 to 2 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over 2 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2019

¥629,155
126,191
43,182¥798,528$5,668,574
1,136,958
389,062$7,194,594

The Company applies practical expedients and the above amount does not include the transaction prices
allocated to residual performance obligation of which the consideration received from customers is at an
amount that directly corresponds to the transaction values and service delivery contracts with an original
expected duration of one year or less.

38. Cost of sales and selling, general and administrative expenses
The components of cost of sales and selling, general and administrative expenses are as follows:

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . .
Employees and directors benefit cost . . . . . . . . .
Sales commissions and sales
promotion expenses . . . . . . . . . . . . . . . . . . . . .
Operating lease expenses . . . . . . . . . . . . . . . . . .
Telecommunications equipment usage fees . . . . .
Service outsourcing expenses . . . . . . . . . . . . . . .
Amortization of contract acquisition cost andcontract performance cost . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(2,507,904)(1,585,873)(686,909)¥(2,640,619)(1,694,187)(827,543)$(23,791,504)(15,264,321)(7,456,014)(1,012,653)(493,471)(437,421)(308,036)(692,489)(469,159)(423,015)(326,477)(6,239,202)(4,227,038)(3,811,289)(2,941,499)–(1,097,088)¥(8,129,355)(264,720)(1,242,333)¥(8,580,542)(2,385,080)(11,193,199)$(77,309,146)“Depreciation and amortization” includes disposal of “Property, plant and equipment” and “Intangible
assets” as well as amortization of long-term prepaid expenses which are recorded in “Other non-current
assets” in the consolidated statement of financial position.
The operating costs, which are included in “Operating income from SoftBank Vision Fund and Delta
Fund” in the consolidated statement of income, are included in the amounts above. Details are described in“Note 7. SoftBank Vision Fund and Delta Fund business.”

40. Other operating loss
The components of other operating income and loss are as follows:

Fiscal year ended
March 31, 2018

SoftBank segment
Write-down of inventories1 . . . . . . . . . . . . . . .
Gain on remeasurement ofspectrum migration costs. . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sprint segment
Loss on disposal of property,
plant and equipment2 . . . . . . . . . . . . . . . . . .
Legal reserves3 . . . . . . . . . . . . . . . . . . . . . . . . .
Reversal of favorable lease. . . . . . . . . . . . . . . .
Gain and loss on contract termination4 . . . . . .
Gain on spectrum license exchange5 . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yahoo Japan segment
Gain from remeasurement relating tobusiness combination . . . . . . . . . . . . . . . . . .
Insurance income6 . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brightstar segment
Impairment loss on goodwill7 . . . . . . . . . . . . .
Impairment loss on non-current assets7 . . . . . .
Company-wide
Expenses resulting from resignationof director . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥(13,754)(Millions of yen)(Thousands of
U.S. dollar)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥

–

$

–

4,044
–

–
(81)

–
(730)

(95,213)
40,159–(24,411)53,435(4,996)(126,169)(8,309)(3,810)10,800–(60)(1,136,760)(74,863)(34,327)
97,306
–
(541)

372
4,973
4,719

3,751
–
(6,669)33,796–(60,086)(43,128)(7,369)––––(1,577)––

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Fiscal year ended
March 31, 2018

Other
Loss on liquidation of a subsidiary8 . . . . . . . . .
Income and loss on equity method investments
at Fortress . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition-related costs9 . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Growth Strategy(Millions of yen)(Thousands of
U.S. dollar)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019–(14,842)(133,724)

14,953(6,123)(3,788)¥(77,704)(1,473)––¥(146,862)(13,271)––$(1,323,200)

Notes:
1. As a result of revising the business plan in the sports content distribution services, the net realizable value of inventories was less than its
carrying amount and, therefore, a write-down of inventories was recognized.
2. For the fiscal year ended March 31, 2018, ¥40,805 million of loss related to cell site construction costs that are no longer expected to be used
as a result of changes in Sprint’s network plans, and ¥55,108 million of loss resulting from the write-off of leased devices related to leasecancellations prior to the end of the scheduled customer lease terms where customers did not return the devices to Sprint were recognized.
For the fiscal year ended March 31, 2019, ¥54,744 million ($493,234 thousand) of loss related to cell site construction costs that are no longer
expected to be used as a result of changes in Sprint’s network plans, and ¥71,425 million ($643,526 thousand) of loss resulting from thewrite-off of leased devices related to lease cancellations prior to the end of the scheduled customer lease terms where customers did not
return the devices to Sprint were recognized.
3. Primarily, net benefits in litigation associated with legal settlements for patent infringement lawsuits for the fiscal year ended March 31, 2018.
4. For the fiscal year ended March 31, 2018, a loss primarily resulting from termination of network contracts was recognized.
5. Gain on spectrum license exchange recognized due to exchange of certain spectrum recorded as FCC license in intangible assets.with othercarriers (non-monetary transaction)
6. Insurance proceeds related to a fire incident that occurred at a logistics center of ASKUL Corporation (ASKUL Logi PARK Tokyo Metropolitan) in
February 2017.
7. The goodwill of Brightstar is allocated to the entire Brightstar entity, which is made up of four cash-generating units (Brightstar’s US & Canada,
Latin America, Asia & Oceania, and Europe & Africa units). Intangible assets with indefinite useful lives other than goodwill are allocated tothese cash-generating units (Brightstar’s US & Canada, Asia & Oceania, and Europe & Africa).
The business plan of Brightstar was revised during the fiscal year ended March 31, 2018, and indicators of impairment were identified at all of
the cash-generating units and the cash-generating unit groups. This included impairment indicators where intangible assets with indefinite
useful lives were allocated as well as the entire Brightstar entity where goodwill is allocated. Therefore, an impairment test was conducted onthese cash-generating units and the entire Brightstar entity. As a result of the impairment test, an impairment loss was recognized because therecoverable amounts of Brightstar (the entire entity) and Brightstar’s Europe & Africa cash-generating unit were less than the carrying
amounts. Impairment losses on goodwill, intangible assets, and property, plant and equipment were ¥43,128 million, ¥6,717 million, and¥652 million, respectively.
Fair value less disposal cost is used as the recoverable amount and measured using the income approach and the market approach. Under theincome approach, fair value is measured by discounting cash flows which are estimated based on business plans for the next 10 years while
taking into account future cash flows that market participants would expect to receive in accordance with their assumptions, discounted tothe present value using a post-tax discount rate of 10.5-11%. The cash flows from after 10 years are assumed on the basis of a 3% growthrate. Under the market approach, EV/EBITDA of similar companies which are comparable to Brightstar Global Group Inc. are used. Fair value isclassified into level 3 as its fair value is measured using unobservable inputs.
8. This is due to the realization of a foreign currency translation adjustment resulting from the liquidation of Kahon 2 Oy for the year ended
March 31, 2019.
9. Amounts represent expenses arising from the business combination of Fortress. Details of the business combination are described in “(1)Fortress” in “Note 8. Business combinations.”

Management Organization

Financial Section

Corporate Information

190

41. Finance cost
The components of finance cost are as follows:

Interest expense* . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019¥(516,132)¥(633,769)$(5,710,145)

Note:* Interest expense was mainly from financial liabilities measured at amortized cost.

42. Derivative gain (loss)
For the fiscal year ended March 31, 2018
A derivative loss of ¥604,156 million was recorded related to a collar transaction included in a variable prepaid
forward contract.
For the fiscal year ended March 31, 2019
Derivative gain of ¥2,876 million ($25,912 thousand) was recorded in relation to a collar transaction
embedded in a variable prepaid forward contract for Alibaba shares. The details of the variable prepaid
forward contract are described in “(2) Transaction for sale of Alibaba shares by variable prepaid forward
contract” under “Note 23. Interest-bearing debt.”
In addition, derivative gain of ¥177,373 million ($1,598,099 thousand) was recorded in SoftBank Vision
Fund. The details are described in “b. Income and loss arising from the SoftBank Vision Fund and Delta Fundbusiness” in “(1) Income and loss arising from the SoftBank Vision Fund and Delta Fund business included in
the consolidated statement of income” under “Note 7. SoftBank Vision Fund and Delta Fund business.”

43. Gain (loss) from financial instruments at FVTPL
For the fiscal year ended March 31, 2018
Gain and loss from financial instruments at FVTPL mainly consists of changes in fair value of preferred stock
investments, including embedded derivatives.
For the fiscal year ended March 31, 2019
Gain and loss from financial instruments at FVTPL mainly consists of dividend income, interest income, andchanges in fair value of financial assets.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

44. Other non-operating income
The components of other non-operating income and loss are as follows:

Dilution gain from changes in equity interest1 . . .
Interst income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain from remeasurement relating todiscontinuing the use of the equity method2 . . .
Impairment loss onequity method investments3 . . . . . . . . . . . . . . .
Loss on redemption of corporate bonds . . . . . . .
Loss on exchange of corporate bonds4 . . . . . . . .
Loss on sales of cryptcurrency5 . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥ 45,186
19,341¥ 44,068
32,404$ 397,045
291,954–

24,842

223,822(5,982)(7,293)(19,809)(18,890)
4,982¥ 17,535(55,292)(14,538)––
1,196¥ 32,680(498,171)(130,985)––
10,776$ 294,441

Notes:
1. Mainly, dilution gain arising from changes in Alibaba’s equity interest held by the Company due to the exercise of stock options and theallocation of new shares to a third party in Alibaba.
2. Gain from remeasurement relating to discontinuing the use of the equity method was recorded for ¥21,903 million related to PT Tokopedia in
Indonesia, previously accounted for by the equity method. In September 2018, a voting proxy deed was entered into between the Company
and a shareholder of PT Tokopedia. As a result, the number of voting rights in PT Tokopedia exercisable by the Company decreased and theCompany had no significant influence over PT Tokopedia. Consequently, PT Tokopedia was no longer qualified as an equity method associateand equity interests in PT Tokopedia, continuously held by the Company on the date the use of the equity method was discontinued, wasremeasured. All investments in PT Tokopedia were subsequently transferred from the Company to SoftBank Vision Fund in the three-month
period ended December 31, 2018.
As a result of the discontinuing the use of the equity method for PT Tokopedia, and subsequent to the transfer of PT Tokopedia shares to
SoftBank Vision Fund, ¥21,903 million ($197,342 thousand) arising from the difference between the carrying amount before discontinuing theuse of the equity method and the transferred amount was recorded as “Gain from remeasurement relating to discontinuing the use of theequity method,” and ¥67,306 million ($606,415 thousand) arising from the difference between the transferred amount and the fair value on
the date of discontinuing the use of the equity method was recorded as “Operating income from SoftBank Vision Fund and Delta Fund” in the
consolidated statement of income for the fiscal year ended March 31, 2019.
3. In regard to the investment in OneWeb Global Limited, its business results and recent business plan resulted less than at the initial investment by
the Company, and therefore, an impairment test was conducted, and ¥49,549 million ($446,428 thousand) of impairment loss was recognized
for the fiscal year ended March 31, 2019. Fair value less disposal cost measured using the income approach was used as the recoverable
amount of investment in OneWeb Global Limited.
Under the income approach, fair value is measured by discounting cash flows which are estimated based on business plans for the next 10 years
while taking into account future cash flows that market participants would expect to receive in accordance with their assumptions, discounted
to the present value using a post-tax discount rate of 21.0%.
The cash flows from after 10 years are assumed on the basis of the growth rate of 18.5% on the 11th year, then to decrease by about 1.3%
per year from 12th to 19th year, and the growth rate of 6.5% on the 20th year. Fair value is classified into level 3 as its fair value is measured
using unobservable inputs.
4. On March 7, 2018, SoftBank Group Corp. announced an exchange offer with respect to newly-issued notes (the “Exchange Notes”) or aconsent solicitation for an amendment of terms and conditions to the bondholders of foreign-currency-denominated senior notes issued in2015 (the “Existing Notes”). Issuance of the Exchange Notes to the bondholders who tendered for exchange of the Existing Notes to the
Exchange Notes was completed on April 3, 2018; however, under requirements of IFRSs, the extinguishment of the Existing Notes and theexchange to the Exchange Notes was considered to be satisfied on March 22, 2018, the exchange decision date. As a result, SoftBank Group
Corp. derecognized the Existing Notes and recognized the Exchange Notes. Also, the difference between the carrying amount of the Existing
Notes and face value of the Exchange Notes was recognized as a loss.
5. Loss arising from sales of all bitcoin held by Fortress. The amount of loss represents the difference between the sales price and the fair value of
bitcoin which was recognized in the consolidated statement of financial position at the acquisition date.

Management Organization

Financial Section

Corporate Information

191

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

192

45. Other comprehensive income
The table below presents the amount arising during the year, reclassification adjustments to profit or loss and the income tax effect of each item in other comprehensive income.
For the fiscal year ended March 31, 2018
(Millions of yen)Amount arisingduring the year

Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 of associates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥

295
295

Reclassification
adjustments¥––

73,620(49,062)
43,14819,81587,521¥87,816(6,752)42,512(177)
217
35,800¥35,800

Amount arisingduring the year

Reclassification
adjustments

Before tax effect

Income tax effect

After tax effect

295
295

¥ 8,500
8,500¥ 8,795
8,795

66,868(6,550)42,971
20,032
123,321¥123,616(37,228)(3,132)(51)
15(40,396)¥(31,896)

29,640(9,682)
42,92020,04782,925¥91,720¥

For the fiscal year ended March 31, 2019
(Millions of yen)

Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity financial assets at FVTOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Items that may be reclassified subsequently to profit or loss
Debt financial assets at FVTOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flow hedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange differences on translating foreign operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share of other comprehensive income of associates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Before tax effect

Income tax effect

After tax effect¥ (2,094)(5,934)(8,028)¥–––¥ (2,094)(5,934)(8,028)

¥ 890
2,270
3,160

¥ (1,204)(3,664)(4,868)

1,775(10,312)
11,491
15,536
18,490¥10,462(124)
16,29816,470–32,644¥32,644

1,651
5,986
27,961
15,536
51,134¥43,106

(506)
2,780
(733)
(130)
1,411
¥4,571

1,145
8,766
27,22815,40652,545¥47,677

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

193(Thousands of U.S. dollars)
Amount arisingduring the year

Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity financial assets at FVTOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Items that may be reclassified subsequently to profit or loss
Debt financial assets at FVTOCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flow hedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange differences on translating foreign operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share of other comprehensive income of associates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reclassification
adjustments

Before tax effect

Income tax effect

After tax effect$ (18,867)(53,464)(72,331)$–––$ (18,867)(53,464)(72,331)$ 8,019
20,45228,471$ (10,848)(33,012)(43,860)

15,992(92,909)103,532
139,977
166,592$ 94,261(1,117)
146,842
148,391–
294,116$294,116

14,87553,933251,923
139,977
460,708$388,377(4,559)25,047(6,604)(1,171)
12,713$41,184

10,31678,980245,319
138,806
473,421$429,561

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

Growth Strategy

Management Organization

46. Earnings per share

Financial Section

194

Corporate Information(2) Diluted earnings per share

Basic earnings per share and diluted earnings per share are as follows:(1) Basic earnings per share

Net income attributable to ordinary shareholdersof the parent
Net income attributable to ownersof the parent . . . . . . . . . . . . . . . . . . . . . . . . .
Net income not-attributable to ordinary
shareholders of the parent* . . . . . . . . . . . . . .
Net income used in the calculation of basic
earnings per share . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥1,038,977¥1,411,199$12,714,650(21,914)(32,007)(288,377)¥1,017,063¥1,379,192$12,426,273(Thousands of shares)

Weighted-average number of ordinary shares . . .

Basic earnings per share . . . . . . . . . . . . . . . . . . .

1,089,465¥933.54

1,087,561
(Yen)

(USD)

¥1,268.15$11.43

Diluted net income attributable to ordinary
shareholders of the parent
Continuing operations
Net income from continuing operations
used in the calculation of basic earnings
per share . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of dilutive securities issued bysubsidiaries and associates . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥1,017,063¥1,379,192$12,426,273(26,190)¥990,873(10,221)¥1,368,971(92,090)$12,334,183(Thousands of shares)

Weighted-average number of ordinary shares usedin the calculation of diluted earnings per share
Weighted-average number of ordinary shares . .
Adjustments:
Stock acquisition rights . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,089,465

1,087,561

1,343
1,090,808

1,923
1,089,484
(Yen)

(USD)

¥908.38¥1,256.53$11.32

Note:* Net income that is not attributable to ordinary shareholders of the parent represents net income attributable to owners of other equity instruments.

Diluted earnings per share . . . . . . . . . . . . . . . . .

SoftBank Group Corp.
ANNUAL REPORT 2019

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Growth Strategy

Management Organization

Financial Section

195

Corporate Information

47. Supplemental information to the consolidated statement of cash flows(6) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests(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 consolidated statement of financial position.

For the fiscal year ended March 31, 2019
¥2,349,832 million ($21,171,565 thousand) of proceeds received from sales of SoftBank Corp. shares is
included in “Proceeds from the partial sales of shares of subsidiaries to non-controlling interests.”(2) Presentation of cash flows regarding financing leases(7) Changes in liabilities arising from financing activities

For the purchase of telecommunication equipment through financing leases, the Company purchases, assembles,
installs and inspects the equipment due to the nature of the equipment. Thereafter the Company sells theequipment to lease companies under a sale-leaseback arrangement and recognizes it as a leased asset.
The cash outflows from the purchase of the equipment from vendors are included in “Purchase of property,
plant and equipment, and intangible assets” under cash flows from investing activities, and the cash inflows fromthe sale of the equipment to lease companies are included in “Proceeds from interest-bearing debt” under cash
flows from financing activities.

Changes in liabilitieis arising from financing activities are as follows:(3) Income taxes paid and income taxes refunded
For the fiscal year ended March 31, 2018
Payment of withholding income tax related to dividends within the group companies of ¥80,811 million is included
in “Income taxes paid,” and refund of the withholding income tax of ¥85,048 million is included in “Income taxes
refunded.”
For the fiscal year ended March 31, 2019
Refund of the withholding income tax of ¥87,094 million ($784,701 thousand) is included in “Income taxes refunded.”(4) Gain on investments at SoftBank Vision Fund and Delta Fund
Details of gain and loss on investments at SoftBank Vision Fund and Delta Fund are described in “(1) Income andloss arising from the SoftBank Vision Fund and Delta Fund business included in the consolidated statement ofincome” under “Note 7. SoftBank Vision Fund and Delta Fund business.”(5) Distribution/repayment from SoftBank Vision Fund and Delta Fund to third-party investors
For the fiscal year ended March 31, 2018
The distributions and repayments from SoftBank Vision Fund and Delta Fund to third-party investors are ¥20,918
million and ¥166,143 million respectively.
For the fiscal year ended March 31, 2019
The distributions and repayments from SoftBank Vision Fund and Delta Fund to third-party investors are ¥(267,400)
million ($(2,409,226) thousand) and ¥(218,988) million ($(1,973,043) thousand) respectively. The details aredescribed in “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “Note 7. SoftBank Vision
Fund and Delta Fund business.”

For the fiscal year ended March 31, 2018
(Millions of yen)

As of April 1, 2017 . . . . . . . . . . . . . . . . . . . . . . .
(a) Changes arising from financing cash flows . . .
Decrease in short-term interest-bearing
debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from interest-bearing debt . . . . . . . .
Repayment of interest-bearing debt . . . . . . . .
Contributions into SoftBank Vision Fund andDelta Fund from third-party investors . . . . . . .
Distribution/repayment from
SoftBank Vision Fund and Delta Fundto third-party investors . . . . . . . . . . . . . . . . .
Other (Proceeds from cancellation) . . . . . . . . .
(b) Changes arising from obtaining or losing
control of subsidiaries or other business . . . . .
(c) The effect of changes inforeign exchange rates . . . . . . . . . . . . . . . . . .
(d) Changes in fair values . . . . . . . . . . . . . . . . . .
(e) Changes in third-party interests in SoftBank
Vision Fund and Delta Fund . . . . . . . . . . . . . .
(f) Other changes . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2018 . . . . . . . . . . . . . . . . . . . . .

Third-party interests
in SoftBank Vision
Fund and Delta FundInterest-bearing
debt

Derivatives related
to corporate bond

¥14,858,370¥ 72,659(40,829)8,547,346(6,003,188)

–
–
–

–
–
–

–

–

1,967,191–––
14,591(187,061)–

19,351––(323,386)(2,497)–51,941(95,833)––(12,979)¥17,042,188––¥139,191

160,382–¥1,844,679¥–

SoftBank Group Corp.
ANNUAL REPORT 2019

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Management Organization

Financial Section

196

Corporate Information

For the fiscal year ended March 31, 2019
(Millions of yen)

As of April 1, 2018 . . . . . . . . . . . . . . . . . . . . . . .
(a) Changes arising from financing cash flows
Decrease in short-term
interest-bearing debt, net . . . . . . . . . . . . . . .
Proceeds from interest-bearing debt . . . . . . . .
Repayment of interest-bearing debt . . . . . . . .
Contributions into SoftBank Vision Fund andDelta Fund from third-party investors . . . . . . .
Distribution/repayment from
SoftBank Vision Fund and Delta Fundto third-party investors . . . . . . . . . . . . . . . . .
Other (Payments for cancellation) . . . . . . . . . .
(b) The effect of changes in foreignexchange rates. . . . . . . . . . . . . . . . . . . . . . . .
(c) Changes in fair values . . . . . . . . . . . . . . . . . .
(d) Changes in third-party interests in SoftBank
Vision Fund and Delta Fund . . . . . . . . . . . . . .
(e) Non-cash transactions* . . . . . . . . . . . . . . . . .
(f) Other changes . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . . . . . . . . .

Interest-bearing
debt

Derivatives related
to corporate bondThird-party interests
in SoftBank Vision
Fund and Delta Fund

¥17,042,188¥139,191¥1,844,679(65,411)6,189,112(7,128,379)

–
–
–

–
–
–

–

–

2,133,682–––(24,098)(486,388)–

277,581––377

58,840––(621,938)(8,047)¥15,685,106–––¥115,470

586,152––¥4,136,965(Thousands of U.S. dollars)

As of April 1, 2018 . . . . . . . . . . . . . . . . . . . . . . .
(a) Changes arising from financing cash flows
Decrease in short-term interest-bearing
debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from interest-bearing debt . . . . . . . .
Repayment of interest-bearing debt . . . . . . . .
Contributions into SoftBank Vision Fund andDelta Fund from third-party investors . . . . . . .
Distribution/repayment from
SoftBank Vision Fund and Delta Fundto third-party investors . . . . . . . . . . . . . . . . .
Other (Payments for cancellation) . . . . . . . . . .
(b) The effect of changes in foreignexchange rates. . . . . . . . . . . . . . . . . . . . . . . .
(c) Changes in fair values . . . . . . . . . . . . . . . . . .
(d) Changes in third-party interests in SoftBank
Vision Fund and Delta Fund . . . . . . . . . . . . . .
(e) Non-cash transactions* . . . . . . . . . . . . . . . . .
(f) Other changes . . . . . . . . . . . . . . . . . . . . . . . .
As of March 31, 2019 . . . . . . . . . . . . . . . . . . . . .

Interest-bearing
debt

Derivatives related
to corporate bondThird-party interests
in SoftBank Vision
Fund and Delta Fund

$153,547,058$1,254,086$16,620,227(589,350)
55,762,789(64,225,408)

–
–
–

–
–
–

–

–

19,224,092–––(217,119)(4,382,269)–

2,500,955––(3,397)530,139––(5,603,550)(72,501)$141,319,993–––$1,040,364

5,281,124––$37,273,313

Note:* Non-cash transactions are incurred by utilizing the NVIDIA shares for the repayment of borrowings. The details are described in “(8) Significant
non-cash transactions.”(8) Significant non-cash transactions
Significant non-cash transactions and financing activities are as follows:

Transfer of leased devices from inventories toproperty, plant and equipment . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥543,498¥547,491$4,932,796

Other than above, the Japan Net Bank, Limited has become a subsidiary of the Company for the fiscal year
ended March 31, 2018 by appointing the majority of The Japan Net Bank, Limited’s directors from Yahoo Japan
Corporation, which is a subsidiary of the Company, and the transaction related to this business combination isclassified as a non-cash transaction because the business combination is conducted without any cash outlay.
The details are described in “(2) The Japan Net Bank, Limited” under “Note 8. Business combinations.”

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Also, in January 2019, SoftBank Vision Fund executed an early unwind of the collar transactions andelected to deliver the NVIDIA shares for the repayment of current portion of long-term borrowings. Thistransaction includes a non-cash transaction since long-term borrowings was settled with the NVIDIA
shares and the remaining portion involved cash settlement. In the consolidated statements of cash flows
for the fiscal year ended March 31, 2019, ¥2,634 million ($23,732 thousand) was recorded as “Other”
in cash flows from financing activities, which is the net amount of the proceeds from disposal of sharesof ¥466,270 million ($4,201,009 thousand), the proceeds from collar options settlement amount of¥171,449 million ($1,544,725 thousand), loan repayment amount of ¥(621,938) million ($(5,603,550)
thousand), and interest paid amount of ¥(13,147) million ($(118,452) thousand).

Management Organization

Financial Section

Masayoshi Son(Son Asset Management
LLC and 4 other companies)

Chairman & CEO
of SoftBank
Group Corp. andrelated entities ofwhich he holds
more than onehalf of the voting
rightsMistletoe Venture Partners,
Inc. (“Mistletoe”)3

48. Related party transactions(1) Related party transactions and balances
Related party transactions of the Company were as follows:

Related entity ofwhich a closefamily memberof Chairman &CEO of SoftBank
Group Corp.
holds more than
one-half of thevoting rights

Dividend paid from
SoftBank Group Corp.
Advance payment for
temporary expense
Payment for equipment
usage2
Guarantee deposits
refundedReceipt of capital
contribution from
Mistletoe to a
subsidiary4

For the fiscal year ended March 31, 2018

Masayoshi Son(Son AssetManagement LLC and4 other companies)

Nature of relationship

11,487

–

296

24

42

–

–

174

75

75

(Thousands of U.S. dollars)(Millions of yen)

Name of the company orindividual197

Corporate Information

Nature of transaction

Chairman & CEO of
Dividend paid from
SoftBank Group Corp.
SoftBank Group Corp.
and related entities ofAdvance payment for
which he holds more than temporary expense
one-half of the voting
Payment for equipment
rightsusage*
Guarantee deposits
refundedAmount oftransaction

Balance atperiod-end¥11,487¥

Name of the company or individual

Nature of relationship

WeWork1

Associate

–

236

23

46

–

1

174

Masayoshi Son(Son Asset Management
LLC and 4 other companies)

Note:* Equipment usage fees are determined based on the ratio of usage.

For the fiscal year ended March 31, 2019
(Millions of yen)
Name of the company or individual

Nature of relationship

Nature of transaction

WeWork1

Associate

Lending of loans by
convertible notes
Advance payment forinvestment

Amount oftransaction

Balance atperiod-end¥111,550¥108,992

165,690

166,485

Mistletoe VenturePartners, Inc.4

Nature of transaction

Lending of loans by
convertible notes
Advance payment forinvestment
Chairman & CEO
Dividend paid fromof SoftBank
SoftBank Group Corp.
Group Corp. and Advance payment for
related entities of temporary expense
which he holds
Payment for equipment
more than oneusage3
half of the voting
Guarantee deposits
rightsrefundedRelated entity ofReceipt of capitalwhich a close
contribution fromfamily member
the Company to itsof Chairman &subsidiary5
CEO of SoftBank
Group Corp.
holds more than
one-half of thevoting rights

Amount oftransaction

Balance atperiod-end$1,000,0002$1,000,0002

1,500,0002

1,500,0002

103,496

–

2,667

216

378

–

–

1,568

676

676

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Notes:
1. The Company and WeWork, an associate of the Company that develops office sharing services, entered into an agreement for the Company toacquire issued and to-be-issued share capital of WeWork in the fiscal year ended March 31, 2019. The total acquisition price is $6.0 billion. Of
this amount, the Company invested $2.5 billion by March 31, 2019 and made a payment of $2.0 billion in April, 2019. Transaction price wasdetermined based on negotiation with reference to the corporate valuation by a third-party valuation agency.
The impact of this agreement on the operating results as of March 31, 2020, has not been determined at present.
2. The amounts represent the original contract amounts recorded in U. S. Dollars, and are not the translations of Japanese yen amounts into U.S.
dollar amounts.
3. Equipment usage fees are determined based on the ratio of usage.
4. Taizo Son, relative of Chairman & CEO Masayoshi Son, holds over half of the voting rights of this company.
5. This represents the received amount of contribution to DEEPCORE TOKYO 1, and the terms and conditions of the transaction are determined assame as other limited liability union members.

In addition, the Company loaned a total of ¥22,220 million ($200,198 thousand), which was designatedfor use for the purchase of SoftBank Group Corp. shares in August 2018 to certain executives of theCompany as a part of the incentive plan. The transactions between the Company and the related parties
regarding this transaction were as follows.
(Millions of yen)
Name of the company orindividual

Nature of relationship

Nature of transaction

Marcelo Claure

Director

Lending of loans
receivable(net of receipt)6, 8, 9, 10Interest receipt6, 8, 9, 10
Lending of loans
receivable(net of receipt)7, 8, 10Interest receipt7, 8, 10
Borrowing of loans
payable7
Interest payment7
Lending of loans
receivable(net of receipt)7, 8, 10Interest receipt7, 8, 10

Katsunori Sago

Ken Miyauchi

Director

Director

Amount oftransaction

Balance atperiod-end¥11,109213¥11,109
213

5,554
52

5,554
52

3,000
27

3,000
27

5,555
52

5,555
52

Management Organization

Financial Section

198

Corporate Information(Thousands of U.S. dollars)Name of the company orindividual

Nature of relationship

Nature of transaction

Marcelo Claure

Director

Lending of loans
receivable(net of receipt)6, 8, 9, 10Interest receipt6, 8, 9, 10
Lending of loans
receivable(net of receipt)7, 8, 10Interest receipt7, 8, 10
Borrowing of loans
payable7
Interest payment7
Lending of loans
receivable(net of receipt)7, 8, 10Interest receipt7, 8, 10

Katsunori Sago

Ken Miyauchi

Director

Director

Amount oftransaction

Balance atperiod-end$100,090
1,919$100,090
1,919

50,041469

50,041
469

27,029243

27,029243

50,050469

50,050469

6. The interest rate for the loan is 2.94% of the fixed rate, which was rationally determined in reference to market interest rates and actualinterest rates of SoftBank Group Corp. for other borrowings with periods similar to the period of the loans. The maturity date for the loans is
May 31, 2028, and the borrower is required to make a single payment at maturity. However, SoftBank Group Corp. and the borrower may
agree to extend the term of the loan for an additional five-year period to May 31, 2033, and the borrower may prepay all or any portion of theloan at any time voluntarily. Additionally, the borrower may deposit with SoftBank Group Corp. any amount of cash equal to or less than thethen- outstanding principal amount of the loan, and SoftBank Group Corp. will account for the deposit as loan payables on the balance sheet.
The interest rate for the deposit is the same as the rate for the loan.
7. The interest rates for the loans are the 1.45% of fixed rate, which was rationally determined in reference to market interest rates and actualinterest rates of SoftBank Group Corp. for other borrowings with periods similar to the period of the loans. The maturity date for the loans is
May 31, 2023, and the borrowers are required to make a single payment at maturity. However, SoftBank Group Corp. and the borrowers may
agree to extend the term of the loan for two additional five-year periods to May 31, 2033, and the borrowers may prepay all or any portion of
the loans at any time voluntarily. Additionally, the borrowers may deposit with SoftBank Group Corp. any amount of cash equal to or less than
the then- outstanding principal amount of the loans, and SoftBank Group Corp. will account for the deposit as loan payables on the balance
sheet. The interest rates for the deposits are the same as the rates for the loans.
8. The following assets of the borrower were pledged as collateral in the transactions.
• Shares of SoftBank Group Corp. purchased with the funds of loans, and all proceeds of the shares.
Also, when default occurs, SoftBank Group Corp. is entitled to receive future cash compensation for the borrowers payable by SoftBank Group
Corp. and subsidiaries, as repayment of the loan (such rights to receive the asset, “Additional Rights”).
9. When the fair value of the collateral assets is less than 70% of the then-outstanding principal amount before the maturity date, SoftBank
Group Corp. may require the borrowers to create and procure a pledged and security interest over additional property.
10. Total shortfall calculated by deducting the amount received through fully exercised rights in respect to collateral and Additional Rights, from allamounts that become due and payable by the borrowers is guaranteed by Masayoshi Son, who is Chairman & CEO of SoftBank Group Corp.

Other than the preceding, the Company loaned ¥5,555 million ($50,050 thousand) to a non-Director
executive of the Company. The executive is not a related party who needs to be disclosed herein according to
IAS 24.
The amount of the transactions between the Company and the executive recognized for the fiscal year
ended March 31, 2019 and the outstanding balance were as follows.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

Management Organization

Financial Section

Corporate Information

For the fiscal year ended March 31, 2019
(Millions of yen)
Nature of transaction

Lending of loans receivable(net of receipt) 7, 8, 10. . . . . . .
Interest receipt 7, 8, 10 . . . . . . .

(Thousands of U.S. dollars)

Amount oftransaction

Balance atperiod-end

Amount oftransaction

Balance atperiod-end¥5,55452¥5,55452$50,041469$50,041469(2) Remuneration for executives
Remuneration for executives is as follows:

Short-term benefits . . . . . . . . . . . . . . . . . . . . . . .
Share-based payments . . . . . . . . . . . . . . . . . . . .
Retirement benefits. . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥2,411
3,755
16¥6,182¥5,4553,979
34¥9,468$49,149
35,850306$85,305

Note:
Remuneration for major executives represents remuneration for the directors of SoftBank Group Corp. (including external directors).

49. Contingency(1) Lending commitments
The components of lending commitments are as follows.
The lending commitments that the Company is engaged in are mainly shopping and cashing credit limits
provided to the credit card members in the Yahoo Japan segment, and the shopping limits in the cardbusiness have been included in the lending commitments since the three-month period ended June 30, 2018.
The amount of lending commitments which included the shopping limits in the card business as of March
31, 2018 was ¥3,254,111 million. Of that amount, funded and unfunded amounts were ¥252,624 millionand ¥3,001,487 million, respectively.

Lending commitments . . . . . . . . . . . . . . . . . . . .
Funded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unfunded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

199(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019

¥525,018
91,650¥433,368¥4,184,284
327,376¥3,856,908$37,699,649
2,949,599$34,750,050

Due to the nature of the credit limits, that they are the maximum amounts which the credit card members areallowed to spend any time within the range but are not necessarily fully spent, and that the Company canarbitrarily increase or decrease the limits, the amounts included in outstanding unfunded balance are notexpected to be funded in full amounts. Also, maturities of unfunded lending commitments are within 1 year
because they are payable on demand.
Expected credit loss that could arise resulting from the execution of the above loan commitments aredescribed in “b. Credit risk” in “(2) Financial risk management” under “Note 29. Financial instruments.”(2) Credit guarantees
Guarantees that the Company provides when loans are taken from affiliate financial institutions to individuals
regarding the credit guarantee business are as follows:

Total amount of financial guarantee contract . . .
Guarantee balance . . . . . . . . . . . . . . . . . . . . . . .

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2018

As ofMarch 31, 2019

As ofMarch 31, 2019¥17,278
10,039¥15,030
7,810$135,418
70,367

Also, maturities of guarantee balance for credit guarantee are within 1 year because they are payable on
demand.
Expected credit loss that could occur resulting from the performance of the above guarantee contract is
not recorded since the significance of the amount is not expected.

(3) Litigation
SoftBank Group Corp. and certain of its subsidiaries are party to a number of currently-pending legal andadministrative proceedings. As it is difficult to reasonably estimate the final results of such matters, reserves
have not been recorded. Based on the information currently available, we do not expect that the results ofthese proceedings will have a material adverse effect on our financial position or results of operations.

SoftBank Group Corp.
ANNUAL REPORT 2019

Towards the AI Era

Essential Information

Growth Strategy

a. Litigation in which SoftBank Corp. is involved as a Party(a) On April 30, 2015, SoftBank Corp. filed a lawsuit with the Tokyo District Court against Japan Post
Information Technology Co., Ltd. (herein after referred to as “JPiT”), claiming for payment of remuneration, for additional services provided in connection with the installation of telecommunication lines,that were ordered by JPiT in relation to a project to migrate the communication network connecting
approximately 27,000 sites (postal offices, etc.) existing countrywide to a new network, the 5th PNET.
Pursuant to a contract dated February 7, 2013, SoftBank Corp. was requested by JPiT to carry out,
among other services, installation services for telecommunication lines for Japan Post Group’s businesssites existing countrywide. SoftBank Corp. performed such services, and upon JPiT’s request, SoftBank
Corp. also performed services that exceeded the scope of services stipulated in the contract.
Although SoftBank Corp. negotiated with JPiT over an extended period regarding the remuneration, (approximately ¥14.9 billion), for these additional services, SoftBank Corp. and JPiT were unable
to arrive at a settlement. Accordingly, SoftBank Corp. duly filed the lawsuit, claiming for payment of
remuneration, for such additional services.
(b) On April 30, 2015, JPiT filed a lawsuit against SoftBank Corp. and Nomura Research Institute, Ltd.
(herein after referred to as “NRI”) as co-defendants.
In such lawsuit, JPiT alleges that SoftBank Corp. and NRI delayed performance, of the orderedservices related to the project for migration to the 5th PNET mentioned in (a) above, and alleges thatsuch delay caused damages to JPiT (¥16.15 billion). JPiT made joint and several claims against both
SoftBank Corp. and NRI for such alleged damages.
SoftBank Corp. intends to fully contest JPiT’s claims in this lawsuit.
The order to consolidate lawsuit (b) above with lawsuit (a) above was made on July 29, 2015.
As a result of further assessments of the remuneration with respect to additional services provided inrelation to lawsuit (a) above, SoftBank Corp. modified the amount of the claim from approximately¥14.9 billion to approximately ¥20.4 billion on November 13, 2015. SoftBank Corp. further modified
the amount of claim from approximately ¥20.4 billion to approximately ¥22.3 billion on October 12,
2016 and from approximately ¥22.3 billion to approximately ¥24.0 billion on September 7, 2017, due
to the change of a purchase price of telecommunication line provided to JPiT.
b. Legal and administrative proceedings to which Sprint and its subsidiaries are party(a) On April 22, 2019, a complaint was filed in federal court in New York against Sprint and two of
Sprint’s executive officers in their capacities as such. The lawsuit, entitled Meneses, et al. v. Sprint
Corporation, et al., and purportedly brought on behalf of a class of Sprint shareholders, alleges that,between January 2019 and April 2019, the defendants violated federal securities laws and rules byfailing to properly disclose that certain postpaid net subscriber additions were driven by free lines andincluded less valuable tablet and other non-phone devices, as well as prepaid to postpaid migrations.
The plaintiff seeks damages and reasonable costs and attorneys’ fees. Sprint believes the lawsuit is
without merit.

Management Organization

Financial Section

Corporate Information

200(b) On April 19, 2012, the New York Attorney General filed a complaint alleging that Sprint
Communications had fraudulently failed to collect and pay more than $100 million in New York sales
taxes on receipts from its sale of wireless telephone services since July 2005. The complaint also sought
recovery of triple damages under the State False Claims Act, as well as penalties and interest. Sprint
Communications moved to dismiss the complaint on June 14, 2012. On July 1, 2013, the court
entered an order denying the motion to dismiss in large part, although it did dismiss certain counts orparts of certain counts. Sprint Communications appealed that order and the intermediate appellate
court affirmed the order of the trial court. On October 20, 2015, the Court of Appeals of New Yorkaffirmed the decision of the appellate court that the tax statute required us to collect and remit the
disputed taxes. Our petition for certiorari to the U.S. Supreme Court on grounds of federal preemption
was denied. We previously paid the principal amount of tax at issue, under protest, while the suit was
pending. On December 21, 2018, Sprint Communications and the State of New York settled thedispute, as well as an unrelated tax matter. As a result, Sprint recognized an additional $50 million of
litigation expense during the year ended March 31, 2019. Eight related stockholder derivative suits
have been filed against Sprint Communications and certain of its current and former officers anddirectors. Each suit alleges generally that the individual defendants breached their fiduciary duties toSprint Communications and its stockholders by allegedly permitting, and failing to disclose, the actions
alleged in the suit filed by the New York Attorney General. One suit, filed by the Louisiana Municipal
Police Employees Retirement System, was dismissed by a federal court. Two suits were filed in state
court in Johnson County, Kansas, and one of those suits was dismissed as premature and five suits are
pending in federal court in Kansas. The remaining Kansas suits have been stayed pending resolution of
the Attorney General’s suit.
(c) Sprint is currently involved in numerous court actions alleging that Sprint is infringing various
patents. Most of these cases effectively seek only monetary damages. A small number of these cases
are brought by companies that sell products and seek injunctive relief as well. These cases haveprogressed to various degrees and a small number may go to trial if they are not otherwise resolved.
Adverse resolution of these cases could require us to pay significant damages, cease certain activities,
or cease selling the relevant products and services. In many circumstances, we would be indemnified
for monetary losses that we incur with respect to the actions of our suppliers or service providers.
(d) Various other suits, inquiries, proceedings, and claims, either asserted or unasserted, including
purported class actions typical for a large business enterprise and intellectual property matters, arepossible or pending against Sprint or Sprint’s subsidiaries. If Sprint’s interpretation of certain laws or
regulations, including those related to various federal or state matters, such as sales, use or property
taxes, or other charges, were found to be mistaken, it could result in payments by Sprint. During thethree-month period ended September 30, 2018, we settled a state tax matter for which we had
previously accrued $114 million, with no material impact on our financial position or results ofoperations upon final settlement.

SoftBank Group Corp.
ANNUAL REPORT 2019

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Essential Information

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c. Legal and administrative proceedings to which Brightstar Corp. and its subsidiaries are party
Brightstar Corp. and its subsidiaries are party to various legal and administrative proceedings globallyand particularly in Latin American countries, including disputes relating to tax, labor, contract, andother matters currently pending. These mainly consist of administrative proceedings and lawsuits
between tax authorities in Brazil and the subsidiary of Brightstar Corp. involving failure by such entity
to pay a portion of taxes owed due to, e.g., differences in understanding between such entity and thetax authorities, for which such authorities have claimed an aggregate of approximately $170 million.

Management Organization

Financial Section

201

Corporate Information(1) Purpose of Merger
The Company assumes that the transaction will benefit the Company’s shareholders by giving the Company
an equity interest in a stronger and more competitive combined company that itself will benefit fromsignificant expected synergies.
The Company assumes that the combined company (“New T-Mobile”) will be a force for positive change
in the U.S. wireless, video, and broadband industries, and will have lower costs, greater economies of scale,and the resources to provide U.S. consumers and businesses with lower prices, better quality, unmatchedvalue, and greater competition.

50. Purchase commitments(2) Transaction Details

The Company had commitments to purchase services and goods of ¥3,044,846 million ($27,433,517
thousand) as of March 31, 2019 (¥1,859,973 million as of March 31, 2018).
Purchase commitments are mainly outstanding contracts related to purchases of telecommunications
equipment, connection with other telecommunications operators, investments, and purchases of mobile
handsets.
The amount of this commitment includes $3.5 billion of outstanding commitments to WeWork, of which$2.0 billion was invested in April 2019. The details of the transactions with WeWork are described in “(1)Related party transactions and balances” under “Note 48. Related party transactions.”

The transaction is structured as an all-stock transaction involving two consecutive and related mergers.

51. Additional information

a. Mergers
SoftBank GroupCorp.

T-Mobile Public=

Sprint Public

Starburst I, Inc. &Galaxy Investment
Holdings, Inc.

=

T-Mobile US, Inc.

1

Sprint’s merger with T-Mobile US, Inc.
On April 29, 2018 (EST), Sprint and T-Mobile have entered into a definitive agreement to merge in an all-stocktransaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share (or the equivalent of
9.75 Sprint shares for each T-Mobile share).
The transaction is subject to Sprint and T-Mobile shareholders approval, regulatory approvals and othercustomary closing conditions.
Upon completion of the transaction, the combined company is expected to become an equity method
associate of the Company, and Sprint will no longer be a subsidiary of the Company.
Sprint and T-Mobile completed the Hart-Scott-Rodino filing with the DOJ on May 24, 2018. On June 18,
2018, the parties filed the merger applications with the FCC the merger applications, and on July 18, 2018,
the FCC accepted the applications for filing. The Merger Transactions received clearance from the Committee
on Foreign Investment in the United States on December 17, 2018.

Deutsche Telekom
AG

Huron Merger Sub LLC(“T-Mobile Merger Co.”)

Sprint Corporation

2

Superior Merger Sub Corp.
(“T-Mobile Merger Sub”)

Beneficial ownership represented by: =Following receipt of Sprint and T-Mobile shareholders and regulatory approvals and the satisfaction or
waiver of the other closing conditions to the transaction, each of Starburst I, Inc. and Galaxy
Investment Holdings, Inc. will merge with and into Huron Merger Sub LLC, a U.S. subsidiary owned
directly by T-Mobile (“T-Mobile Merger Co.”), with T-Mobile Merger Co. as the surviving company (the“HoldCo Mergers”).
Immediately following the HoldCo Mergers, Superior Merger Sub Corp. (“T-Mobile Merger Sub”),
a U.S. subsidiary owned directly by T-Mobile Merger Co., will merge with and into Sprint, with Sprint as
the surviving company (such merger together with the HoldCo Mergers, the “Merger Transactions”).

SoftBank Group Corp.
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As a result of the Merger Transactions:• Sprint will become an indirect wholly-owned subsidiary of New T-Mobile;• The Company will beneficially own approximately 27.4% of the fully-diluted common stock of New
T-Mobile;• Each option to purchase Sprint common shares (other than under Sprint’s employee stock purchaseplan) will be converted into an option to purchase common stock of New T-Mobile.

Management Organization

Financial Section

Deutsche
Telekom AG

41.7%

SoftBank
Group Corp.

27.4%
=

FormerSprint Public

5.6%

Former
T-Mobile Public

25.3%

=

T-Mobile US, Inc.
(“New T-Mobile”)
Huron Merger Sub LLC(“T-Mobile Merger Co.”)(3) About New T-Mobile(a) Name(b) Headquarters(d) Nature of business(e) Major shareholders and theirapproximate holdings*

Post-closing, Deutsche Telekom AG (“Deutsche Telekom”) and the Company are expected to holdapproximately 41.7% and 27.4% of diluted economic ownership of the combined company, respectively, with the remaining approximately 30.9% held by the public.
The Board will consist of 14 directors: 9 nominated by Deutsche Telekom and 4 nominated by theCompany.
Subject to certain exceptions, (i) New T-Mobile shares beneficially owned by the Company and its
controlled affiliates will be subject to a proxy granted to Deutsche Telekom (pursuant to which theCompany will exercise the voting rights in respect of the shares of T-Mobile held directly or indirectly by
the Company as directed by Deutsche Telekom), in order to enable Deutsche Telekom to consolidate
New T-Mobile into Deutsche Telekom’s consolidated financial statements following the consummationof the Merger Transactions, certain transfer restrictions, and a right of first refusal in favor of Deutsche
Telekom; and (ii) New T-Mobile shares beneficially owned by Deutsche Telekom and its controlled
affiliates will be subject to a right of first refusal in favor of the Company and certain transfer restrictions. Furthermore, the Company and Deutsche Telekom (in each case, including certain of their

T-Mobile US, Inc.
Bellevue, Washington
Overland Park, Kansas (second headquarters)
Chief Executive Officer
John Legere
Telecommunications
Deutsche Telekom 41.7%
The Company 27.4%

Note:* This is an estimate based on fully diluted shares inclusive of the exercise of the Company’s existing warrants to acquire shares of Sprint.
Figures represent shares beneficially owned.

(4) Number of Shares Held by the Company Before and After the Merger Transactions1(a) Number of shares of Sprint held before
the Merger Transactions(as of April 25, 2018)(b) Number of shares of New T-Mobile
held after the Merger Transactions2

Sprint Corporation
Beneficial ownership represented by: =202

respective affiliates) will be subject to certain non-compete restrictions until such time as theirrespective ownership in New T-Mobile has been reduced below an agreed threshold.

(c) Name and title of representative

b. Post-transaction

Corporate Information

3,445,374,483 shares(number of voting rights: 3,445,374,483)(voting ratio: 83.0%)
353,357,607 shares(number of voting rights: 353,357,607)3(voting ratio: 27.4%)

Notes:
1. Figures represent shares beneficially owned and include warrants.
2. This is an estimate based on fully diluted shares assuming cash exercise of the Company’s existing warrants to acquire shares of Sprint.
3. The Company’s voting rights will be subject to proxy arrangements granted in favor of Deutsche Telekom.

52. Subsequent events(1) Share split
The Company passed a resolution to conduct a share split and make a partial amendment of the articles ofincorporation at the Board of Directors meeting held on May 9, 2019.
a. Purpose of the share split
The Company will conduct the share split to reduce the investment unit of its ordinary shares andfurther facilitate an environment where investors can find it easier to make investments.

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b. Method of the share spilt(a) Number of shares to be increased upon the share split
The aggregate number of issued ordinary shares of the Company as of June 27, 2019 multiplied by one.
Number of shares increased by the share split:
Number of issued and outstanding shares before the share split:
Number of issued and outstanding shares after the share split:

1,100,660,365 shares
1,100,660,365 shares
2,201,320,730 shares(b) Method of the split
With the record date of June 27, 2019, ordinary shares of the Company held by shareholders listed orrecorded in the shareholder registry by the end of the date will be split at a ratio of two-for-one.
(c) Record dateJune 27, 2019

Financial Section

Corporate Information

203

a. Reason of the retirement of treasury stock
To increase shareholder profit by decreasing the number of issued and outstanding sharesb. Method of the retirement of treasury stock
To reduce the balance of retained earnings
c. Class of the shares retired
Ordinary shares of SoftBank Group Corp.
d. Number of shares retired
55,753,200 shares(The ratio of the shares retired to the issued and outstanding shares before the retirement: 5.07%)
e. Retirement dateJune 10, 2019(d) Effective dateJune 28, 2019

f. Number of issued and outstanding shares after the retirement
1,044,907,165 sharesc. Partial amendment of the articles of incorporation regarding the share split
Regarding the share split, in accordance with the Article 184, Paragraph 2 of the Companies Act ofJapan, the amendment of the articles of incorporation is made to increase the aggregate number ofauthorized shares of the Company from 3,600,000,000 shares to 7,200,000,000 shares effective June
28, 2019.
d. Impacts on the earnings per share information
Earnings per share information assuming that the share split was conducted at the beginning of the
fiscal year ended March 31, 2018 is as follows.

Equity per share attributable to owners of
the parent . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basic earnings per share . . . . . . . . . . . . . . . . . . .
Diluted earnings per share . . . . . . . . . . . . . . . . .

Management Organization(Yen)(U.S. dollars)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2019

¥2,151.13
466.77454.19¥3,380.33
634.08628.27$30.46
5.71
5.66(2) Retirement of treasury stocks
SoftBank Group Corp. passed a resolution to retire treasury stocks under the provisions of Article 178 of theCompanies Act at the Board of Directors’ meeting held on May 30, 2019, and conducted the retirement as follows:(3) Settlement of the variable prepaid forward contract using Alibaba shares
The Company conducted the settlement of the variable prepaid forward contract using Alibaba shares onJune 3, 2019.
As a result of the transaction, ¥224,201 million ($2,020,011 thousand) recognized as “Assets classified asheld for sale” ¥730,601 million ($6,582,584 thousand) recognized as the current portion of financial liabilities
relating to the sale of shares through the variable prepaid forward contract in interest-bearing debt (current
liabilities), and ¥749,846 million ($6,755,978 thousand) recognized as derivative financial liabilities (current
liabilities) in the consolidated statement of financial position as of March 31, 2019 were all extinguished.
The Company will record approximately ¥1.2 trillion ($10,811,785 thousand), consisting of derivative gain
and gain on sales of shares of associates, in the condensed interim consolidated financial statements for thethree-month period ended June 30, 2019.
In addition, Alibaba is continuously qualified as an associate of the Company. Details are described in “(2)Transaction for sale of Alibaba shares by variable prepaid forward contract” under “Note 23. Interest-bearing debt.”

53. Approval of consolidated financial statements
The consolidated financial statements have been approved by the Company’s CEO, Masayoshi Son, as of June
19, 2019.

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Independent Auditor’s Report
SoftBank Group Corp. and its Consolidated Subsidiaries

Deloitte Touche Tohmatsu LLC
Marunouchi Nijubashi Building
3-2-3 Marunouchi
Chiyoda-ku, Tokyo 100-8360
Japan
Tel: +81 (3) 6213 1000
Fax: +81 (3) 6213 1005
www.deloitte.com/jp/en

To the Board of Directors of SoftBank Group Corp.:

We have audited the accompanying consolidated statement of financial position of SoftBank Group
Corp. and its subsidiaries (the “Company”) as of March 31, 2019, and the related consolidated
statements of income, comprehensive income, changes in equity, and cash flows for the year thenended, and notes to consolidated financial statements, all expressed in Japanese yen.

OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of SoftBank Group Corp. and its subsidiaries as of March
31, 2019, and the consolidated results of their operations and their cash flows for the year thenended in accordance with International Financial Reporting Standards.

Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with International Financial Reporting Standards, and for such internal
control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.

Emphasis of Matter
As discussed in Note 52 (3) to the consolidated financial statements, the Company conducted thesettlement of the variable prepaid forward contract using Alibaba shares on June 3, 2019.
Our opinion is not modified in respect of this matter.

Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audit. We conducted our audit in accordance with auditing standards generally accepted in Japan.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from material misstatement.

Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and,in our opinion, such translation has been made in accordance with the basis stated in Note 2 (3) tothe consolidated financial statements. Such U.S. dollar amounts are presented solely for theconvenience of readers outside Japan.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the consolidated financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of theconsolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.

June 19, 2019

Member of
Deloitte Touche Tohmatsu Limited

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Major Subsidiaries and Associates
As of March 31, 2019

Subsidiaries
Capital(Millions of yen)

Voting rights(%)

204,309

66.5

Provision of mobile communications services; sale of mobile devices; provision of broadband; other fixed-line communications services in Japan

500

100

Manufacture, distribution, and sale of ICT-related products and ICT-related services

Wireless City Planning Inc.

18,89932.2

Planning and provision of mobile broadband services

SB Payment Service Corp. *3

6,075

100

Settlement services; card services and related services

Company nameMain businesses

SoftBank Segment
SoftBank Corp. *1
SB C&S Corp. *2

SoftBank Technology Corp. * *

995

54.1

Solutions and services for online businesses

1,709

53.6

Operation of comprehensive IT information site ITmedia, etc.

$40,810K

84.4

Holding company$1,180,954K

100

Provision of mobile communications services in the U.S.; sale and lease of mobile devices and sale of accessories in the U.S.; provision of
fixed-line telecommunications services in the U.S.

Yahoo Japan Corporation *8* 9

8,939

48.2

Internet advertising; e-commerce business; membership services

ValueCommerce Co., Ltd.

1,728

52.0

Affiliate advertising marketing service; StoreMatch online advertising distribution service

The Japan Net Bank, Limited

37,25046.6

Banking

ASKUL Corporation

21,18945.2

Mail-order sale of stationery and services

872

43.5

E-book distribution

4

5

ITmedia Inc.
Sprint Segment
Sprint Corporation *6* 7
Sprint Communications, Inc. *6* 7
Yahoo Japan Segment

eBOOK Initiative Japan Co., Ltd.
Arm Segment
Arm Limited

GBP1,025K

100

Design of microprocessor intellectual property and related technology; sale of software tools and provision of software services

Arm PIPD Holdings One, LLC *10* 11

GBP500,166K

100

Holding company

Arm PIPD Holdings Two, LLC * *GBP343,203K

100

Holding company

$390K

100

Management of SoftBank Vision Fund and Delta Fund

Brightstar Global Group Inc.

$3K

89.5

Holding company

Brightstar Corp.

$0K

100

Distribution of mobile devices outside Japan

10

11

SoftBank Vision Fund and Delta Fund Segment
SB Investment Advisers (UK) Limited
Brightstar Segment

Company-wide (in common)
SoftBank Group Japan Corporation *12
SoftBank Group Capital Limited
SB Group US, Inc.

24

100

Holding company$5,508K

100

Holding company

$0K

100

Holding company

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Major Subsidiaries and Associates
As of March 31, 2019

Capital(Millions of yen)

Voting rights
(%)

-

100

Alternative investment management business

100

100

Ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports
facilities; distribution of video, voice, and data content via media

SB Energy Corp.

3,154

100

Generation of electricity from renewable energy sources; supply and sale of electricity

PayPay Corporation

23,000100

Smartphone payment business

SoftBank Robotics Group Corp.

11,60069.7

Holding company

0100

Holding company

1,018

52.1

Operation, sale, and marketing of online games; software downloads; advertising

KRW18,000M

100

Holding company

KRW2,200M

100

Holding company

SOFTBANK Holdings Inc.

$7K

100

Holding company

SOFTBANK America Inc.

$0K

100

Holding company

48,248100

Holding company

Company nameMain businesses

Others
Fortress Investment Group LLC *11* 13
Fukuoka SoftBank HAWKS Corp.

Skywalk Finance GK *11* 14
Vector Inc. *4
SoftBank Ventures Asia Corp. *15

SoftBank Korea Corp.

SB Pan Pacific Corporation
SB INVESTMENT HOLDINGS (UK) LIMITED

$0K

100

Holding company

STARFISH I PTE LTD.

101,298

100

Holding company

Starburst I, Inc. *6*7

$216K

100

Holding company$1,251,768K

100

Holding company

77,842

100

Holding company

West Raptor Holdings, LLC *10*11* 17
Hayate Corporation
*1
*2
*3
*4
*5
*6

SoftBank Corp. (“SB”) was listed on the First Section of the Tokyo Stock Exchange on December 19, 2018. SoftBank Group Japan Corporation (“SBGJ”) sold a portion of its holdings of SB.
On January 1, 2019, SoftBank Commerce & Service Corp. changed its name to SB C&S Corp.
On January 1, 2019, SoftBank Payment Service Corp. changed its name to SB Payment Service Corp.
On April 1, 2018, all shares of SoftBank Technology Corp., Vector Inc., Scigineer Inc., Geniee, Inc., and another seven companies held by SoftBank Group International GK (“SBGI”) were transferred to SB.
At the general shareholders meeting of SoftBank Technology Corp. held on June 17, 2019, it was approved to change its company name to SB Technology Corp. on October 1, 2019.
On April 6, 2018, all shares of Starburst I, Inc. (“Starburst”) and Galaxy Investment Holdings, Inc. (“Galaxy”) held by SBGI were transferred to SBG. On April 26, 2018, all shares of Starburst and Galaxy held by SBG were transferred to SoftBank Group Capital Limited (“SBGC”). Starburst and Galaxy hold the shares of Sprint,
which holds all shares of Sprint Communications, Inc.
*7 On April 29, 2018, Sprint and T-Mobile entered into a definitive agreement to merge in an all-stock transaction (the “Transaction”). Upon completion of the Transaction, the combined company is expected to become an equity method associate of the Company, and Sprint will no longer be a subsidiary of the Company.
Starburst and Galaxy will merge with Huron Merger Sub LLC, a U.S. subsidiary owned directly by T-Mobile, with Huron Merger Sub LLC being a surviving company and Starburst and Galaxy being dissolved. The Transaction is subject to Sprint and T-Mobile stockholder approvals, regulatory approvals, and other customary
closing conditions. The Transaction is expected to receive federal regulatory approval in the first half of 2019.
*8	At the general shareholders meeting of Yahoo Japan Corporation (“Yahoo Japan”) held on June 18, 2019, the proposals of company split and change of its trade name to Z Holdings Corporation were approved.
The company split is subject to approvals as may be required by supervisory authorities. The change of trade name is subject to the effectuation of the compay split. The company split and change of trade name will be effective as of October 1, 2019 (tentative).
*9 On August 9, 2018, a tender offer by Yahoo Japan for its own shares was completed and SBGJ sold a portion of shares in Yahoo Japan. On August 9, 2018, SB acquired Yahoo Japan shares by way of tender offer implemented by SB. On June 5, 2019, a tender offer by Yahoo Japan for its own shares was completed and SBGJ
sold a portion of shares in Yahoo Japan. On June 27, 2019, SB additionally acquired new shares issued by Yahoo Japan through a third-party allotment, with the intention of making Yahoo Japan its consolidated subsidiary.
*10 Capital represents the amount of capital contribution.
*11 The voting rights represent the Company’s entire contributions as percentage of capital.
*12 On June 15, 2018, SBGI transitioned from a limited liability company to a stock company and changed its name to SoftBank Group Japan Corporation.
*13 Fortress Investment Group LLC has not prepared stand-alone financial statements, thus a capital amount is not listed.
*14 Skywalk Finance GK made borrowings using Alibaba shares it held as collateral.
*15 On December 21, 2018, SoftBank Ventures Korea Corp. changed its name to SoftBank Ventures Asia Corp.
*16 On September 21, 2018, all shares of Renren Inc. held by SB Pan Pacific Corporation were transferred to SBGC.
*17 On June 3, 2019, West Raptor Holdings, LLC sold a portion of its holding of Alibaba.

SoftBank Group Corp.
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Major Subsidiaries and Associates
As of March 31, 2019

Associates
Company name

Capital(Millions of yen)

Voting rights(%)

Main businesses

SoftBank Segment
Scigineer Inc. *4

800

32.1

Provision of Internet marketing support services using the personalized engine deqwas for e-commerce business operators and retailers

Geniee, Inc. *4

1,539

31.5

Advertising technology business

$46K

36.4

Holding company$267,184K

25.8

Holding company$1,042K

42.8

Investor company of a company operating Renren.com SNS website in China

CNY1,000K

28.9

Investor company of companies operating e-commerce business; cloud computing; digital media and entertainment

$359K

45.0

Mobile advertising services

Capital accepted

Investment ratio(%)

SoftBank Vision Fund L.P.*18

$48B

33.6

Investment activities by SoftBank Vision FundSB Delta Fund (Jersey) L.P.

$5B

73.7

Investment activities by Delta Fund

OthersFoxconn Ventures Pte. Ltd.
HIKE GLOBAL PTE. LTD.
Renren Inc. *16
Alibaba Group Holding Limited *14* 17
InMobi Pte. Ltd.

Main Overseas Fund Data
Fund Name

Main businesses

SoftBank Vision Fund and Delta Fund Segment*18 The capital accepted of SoftBank Vision Fund L.P. includes the capital accepted of alternative investment vehicles.
Investment ratio of SoftBank Vision Fund L.P. includes incentive scheme related to SoftBank Vision Fund.

208

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Corporate Information

Financial Section

Corporate Data
As of March 31, 2019

Corporate name

SoftBank Group Corp.

Organizational structure
As of May 1, 2019

Founded

September 3, 1981

Corporate

1-9-1 Higashi-shimbashi, Minato-ku,

headquarters

Tokyo 105-7303

Telephone number+81-3-6889-2000

Representatives

Masayoshi Son, Chairman & CEO

Share capital¥238.8 billion

Number of subsidiaries

1,302

Number of associates

423

Number of joint ventures

26

Number of employees

192 (consolidated basis: 76,866)

Main business

Pure holding company

Independent auditor

Deloitte Touche Tohmatsu LLC

General Meeting of Shareholders

CEO Office
CEO Project Office

Board of Directors
Global Business Unit
Real Asset Investment Department

Chairman & CEO
Masayoshi Son

Investment Strategy UnitCSO OfficeVice Chairman
Ronald D. Fisher

CFO Office

Executive Vice President & COO
Marcelo Claure
Executive Vice President & CSO
Katsunori Sago

Finance Planning Department
Finance Unit

Capital Market Department
Investor Relations Department

Executive Vice President
Rajeev Misra

Group Management Department

General Administration Department
Audit & Supervisory Board

Administration Unit
Information System Department

Audit & Supervisory
Board Members

Accounting Department
Accounting Unit
Tax Management Office

Audit & Supervisory Board Office

Legal Unit

Legal Department

Human Resources Unit

Human Resources Department

Corporate Communications Unit

Corporate Communications OfficeInternal Audit OfficeSoftBank Group Corp.
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Corporate Information

Financial Section

Stock Information
As of March 31, 2019

Shareholder registrar

Mitsubishi UFJ Trust and Banking Corporation

Major shareholders

Stock exchange

TSE First Section

Name of shareholders

registration
Stock code

9984

Number of shares*
Shares authorized

3,600,000,000

Shares issued

1,100,660,365(including 46,826,924 of treasury stock)

Number of shareholders 174,956

(%)

3.1
4.8

2.7
4.2

1.9
5.2

1.3
5.2

1.3
5.1

17.4

20.6

22.4

22.8

23.3

Percentage of total
shares issued (%)

Masayoshi Son

231,205

21.94

The Master Trust Bank of Japan, Ltd. (Trust Account)

103,300

9.80

Japan Trustee Services Bank, Ltd. (Trust Account)

63,7406.05

JP MORGAN CHASE BANK 380055

28,538

2.71

Japan Trustee Services Bank, Ltd. (Trust Account 5)

16,096

1.53

JP MORGAN CHASE BANK 380763

14,533

1.38

SSBTC CLIENT OMNIBUS ACCOUNT

14,394

1.37

CITIBANK, N.A. -NY, AS DEPOSITARY BANK FOR DEPOSITARY SHARE HOLDERS

13,795

1.31

JP MORGAN CHASE BANK 385151

13,233

1.25

STATE STREET BANK WEST CLIENT – TREATY 505234

12,3681.17

Top 10 shareholders

511,202

48.51

Notes: 1. Percentage of total shares issued is calculated by deducting treasury stock (46,826,924 shares).
2. Of the above numbers of shares held, those held by The Master Trust Bank of Japan, Ltd. and Japan Trustee Services Bank, Ltd. are all related to trust operations.
3. As for principal shareholders, the number of shares held effectively by Masayoshi Son, verified by SoftBank Group Corp., is presented as has been hitherto on a combined basis (by means ofname-based aggregation), while those held by other principal shareholders are presented precisely as reported in the register of shareholders.

Shareholding structure
100

Number of shares held
(thousands)

Stock price and trading volume

75(Yen)(Yen)

30.5

33.7

31.7

31.2

32.9

50

25

0

44.2

’14

38.8

’15

38.8

’16

39.5

’17

Foreign institutions and individuals
Domestic individuals and others
Domestic other companies
Financial instrument firms

37.4

’18

(FYE)

Domestic financial institutions

12,00030,00011,00027,50010,00025,0009,000

22,5008,000

20,0007,000

17,5006,000

15,0005,000

12,5004,000

10,0003,000* Effective as of June 28, 2019, SoftBank Group Corp. has split its ordinary shares at a ratio of two-for-one.
Subsequent to the share split, the number of authorized shares described in the Articles of Incorporation
was amended on the same day. SoftBank Group Corp. has also repurchased its own shares amounting to¥600.0 billion (55,753,200 shares) from February to May 2019 and retired all of the repurchased shares onJune 10, 2019.
These brought the number of authorized shares and the number of issued and outstanding shares as follows.
The number of authorized shares: 7,200,000,000
The number of issued and outstanding shares: 2,089,814,330

7,500(Million shares)
2,000

50

1,000

20

0

’09

’10

’11

’12

Stock price (left)
Nikkei 225 (right)
Trading volume (right)
Note: Stock prices and trading volumes are averages for each month.

’13

’14

’15

’16

’17

’18

’19 (CY)01-9-1 Higashi-shimbashi, Minato-ku, Tokyo 105-7303
Tel: +81-3-6889-2000

https://group.softbank/en/

Published on July 31, 2019
Copyright © 2019 SoftBank Group Corp. All Rights Reserved.