Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CEORealizing
Artificial Super Intelligence (ASI)
for the Evolution of Humanity
Maximizing
shareholder value by
evolution and multiplication
I review our most important performancecontinuously refining our business model
to offer something unique. Multiplicationrefers to leveraging our sales capability toeffectively market and distribute this uniquevalue.

indicator, Net Asset Value (NAV), every day

Throughout our 43-year history since its

without fail. NAV represents shareholder

foundation in 1981, SBG has experiencedvalue, calculated as the equity value

cycles of evolution and multiplication. Ourof holdings minus net interest-bearing

journey can be divided into six distinct

debt. Our primary objective at SBG is tostages. The first stage involved our original

maximize NAV. How do we achieve this?

business of distributing packaged software

We focus on two key strategies: evolution

for PCs and founding Yahoo Japanand multiplication. Evolution involves

Corporation in 1996, in anticipation ofthe forthcoming age of computers. In thesecond stage, we transitioned from the ageof computers to the age of mobile internet,
launching the Yahoo! BB broadband service
in 2001 and acquiring Vodafone K.K. in2006 to enter the mobile market. In 2008,
we became the sole carrier in Japan tooffer the iPhone, significantly expanding
our number of subscribed customers.
The third stage marked our entry into theU.S. telecommunications market with theSoftBank Group Report 202412

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFOGrowth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CEOacquisition of Sprint in 2013. After theFigure 2: Results of investment in Arm

Figure 1: Shareholder value (NAV)

merger, the company became T-Mobile andEquity¥34tn

has become the world’s largest telecom
company by market capitalization*1 and weBorrowings(Pro forma; as of June 20, 2024)

are proud to be a major shareholder. The(At the end of March 2023)¥24.6tn

Alibaba. Partnering with its founder JackMa, we brought internet services that wereArm

already widespread in the U.S. and Japan to10 X(Equity IRR 34%)

¥14 tnfourth stage involved our collaboration withMOIC

55%

China, fostering a new round of evolution
and multiplication. The fifth stage took
shape with SoftBank Vision Funds, launchedin 2017, which anticipated the significant¥23.6tnrise of artificial intelligence (AI).
We are now in the sixth stage, powered,Alibaba

above all, by Arm, which was acquired in

NAV doubled from ¥14 trillion at the endof March 2023 to ¥28 trillion at the endof March 2024, reaching ¥34 trillion (proforma) on June 20, 2024 (see Figure 1).

SBG acquired Arm in September 2016for ¥3.3 trillion, giving Arm shareholdersa premium of around 40%,*2 which wascriticized at the time for being excessive.
However, Arm’s performance has generated
returns of ¥24.6 trillion to date for SBG
shareholders, representing a multiple on
invested capital (MOIC) of 10x (see Figure2). The achievement came after a challenging
period. In connection with the acquisition,
SoftBank Group Report 2024

25%

T-Mobile /Deutsche Telekom

2016. With Arm’s share price surging since
its public listing in September 2023 ourSVF1 / SVF2 /LatAm Funds

Yahoo Japan*SoftBankOther1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 (FY)

9%

5%6%

¥3.3tn¥2.3tnInvestment

Return(2016)(As of June 20, 2024)

Figure 1: Notes
1. NAV data for each quarter-end and as of June 20, 2024. The NAV data are the Company’s estimates based on the information available to it, and the accuracy or completeness of the information is notguaranteed as the figures are not audited. NAV trends are not a guarantee of future figures and are not indicative of the price of SBG’s common shares or any securities held by the Company and should notform the basis of investment decisions. The figures are based on data before considering taxes unless otherwise stated.
2. Share price: closing price as of June 20, 2024
3. Shareholder value (NAV) for each investment is allocated based on the proportionate share of holding equity value for each time period.
*Yahoo Japan Corporation (currently LY Corporation) became a subsidiary of SoftBank in June 2019.
Figure 2: Notes
1. Converted to Japanese yen using the exchange rate on each transaction date or valuation date
2. Equity: Return net of borrowings
3. Multiple of invested capital (MOIC): Calculated based on the investment and return on equity value (before tax)
4. Equity IRR: Calculated based on the investment and return on equity value from initial investment to June 20, 2024 (before tax)
5. Investment: Excludes related expenses and does not reflect the impact of intra-group transactions between SBG and SVF.
6. Return (¥24.6tn) = Amount realized from the offering of Arm shares, net of related costs + Equity value of holdings as of June 20, 2024 (calculated by multiplying the number of shares held by SBG by theclosing share price) + Shares of Treasure Data and Acetone Limited (an intermediate holding company that owns approximately 48% of the equity interest in Arm China) received by SBG and SVF1 from Arm
as dividends in kind + Non-refundable advance payment received from NVIDIA as part of the sale consideration when the sale agreement for Arm shares was signed with NVIDIA in September 2020
7. Borrowings: Amount of funds raised in JPY in September 2016 for the acquisition

13

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CEO

we announced plans to double the number

evolution that holds particular importanceas great as any human genius. Moreover,that is trained on data and does not rely onof engineers at Arm. This significant increase

for the future of humanity. Back in theas long as AGI operates within the norms

hardware, high-resolution maps, or manuallyin personnel initially led to a sharp decline

autumn of 2022, I experienced a crisis ofand boundaries of humans, it will bring noprogrammed rules. This technology, capablein profits and raised concerns among

confidence, and I was filled with self-doubt.

dramatic changes in our way of life or inof adapting to unfamiliar situations andmany stakeholders, as revenue did not

However, today, I am more energized thansociety’s rules and systems.

environments, could be scaled to different

immediately increase. However, the increased

ever because I realized our ultimate mission:

investment in engineers enabled significant

the evolution of humanity. What greater

culmination of a network of AGI models

expansions from smartphones into new end

cause could there be? This mission will bestimulating each other to rapidly accelerate

for ASI. Arm is at the forefront of high-markets, including PCs, cloud computing,accomplished through the realization of

their evolution. While expert opinions may

performance cloud servers and network

automobiles, and the Internet of Things

artificial super intelligence (ASI) —AI that

vary, my view is that ASI will be ten thousandedges for smartphones, cars, and robots.

(IoT). Ultimately, these strategic investments

is ten thousand times more intelligent

times more intelligent than humans andShipments of Arm-based chips continuesolidified Arm’s position as a cornerstone inthan human wisdom. Ever since, I haverealized in about ten years. The realization of

to grow, with approximately 287 billion

the AI industry.

been grappling daily with the challenge of

ASI, which will far surpass human wisdom,

shipped to date.*3 With its outstanding

realizing ASI. It feels like solving an intricate

will mark a turning point in human history.

design prowess, Arm has created processor

set of simultaneous equations.

All conventional wisdom will be overturned.

technology that combines high compute

What a journey it has been, and how thetime has flown. The process of evolution

ASI is completely different. ASI will be thevehicle types and new locations.
Arm provides the foundational technology

and multiplication involves a succession of

It has been 200,000 years since theIn the 200,000-year history of our species,

performance with low power consumption.

challenges. While we have made missteps

birth of humans. Unlike other species,

the next ten years will be a critical juncture.

Arm’s proven expertise leaves no doubt thatalong the way, we have persevered and

we invented tools and technologies that

increased our shareholder value todrove progress. Until now, the evolution¥34 trillion.

of humanity has been driven by our own*1 As of March 31, 2024
*2 The acquisition price of 1,700 pence per Arm sharerepresents a premium of approximately 43.0% to the closing
price of 1,189 pence per Arm share on the last business day
prior to the announcement of recommended acquisition ofArm (July 15, 2016), and approximately 41.1% to theall-time high closing price of 1,205 pence per Arm share on
March 16, 2015, etc.

hands. Every now and then, geniuses suchthey will lead the creation of ASI in bothArm provides the foundational
technology for ASI

cloud and edge environments.
At one point, we agreed to sell Arm toNVIDIA. While the deal did not ultimately go

as Leonardo da Vinci and Albert Einstein

ASI transcends the digital world. One day,ahead due to regulatory issues, had it done

emerged, sparking new ways of thinking andASI-powered smart robots will perform

so, we would now be a major shareholder

driving the evolution of humanity. Currently,

all kinds of physical tasks on our behalf,of NVIDIA, which recently became theleading tech companies are working toincluding manufacturing, transportation,world’s most valuable company by market

develop artificial general intelligence (AGI)

construction, and housework. In anticipation

capitalization.*4 Nevertheless, if given the— a form of AI with generalized intelligenceof the coming age of ASI, we are investing

opportunity today to buy either Arm orthat enables it to autonomously perform ain various robotics projects. In 2024, weNVIDIA, I would choose Arm in a heartbeat

wide range of learning and problem-solving

invested in Wayve, a UK-based company— such is my faith in Arm’s future potential.

tasks. In less than ten years, AGI will beworking on autonomous driving technology

While evolution and multiplication are vital

realized and drive the accelerated evolution— robot driving, we might say. Their goal

*3 As of December 31, 2023
*4 As of June 18, 2024

for business growth, it is the concept ofof humanity. However, AGI will only be

is to build an autonomous driving system

Our mission: Evolution ofhumanity

SoftBank Group Report 202414

Table of ContentsWho We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CEO

Driving innovation in chips,
data centers, androbotics with partners

interest-bearing debt divided by the equity

traffic accidents to a ten-thousandth ofvalue of holdings)*5 below 25% during

today’s level. ASI could save us from thenormal market conditions.

anguish and despair of the earthquake and*5 See page 21 for details of LTV.

pandemics that have afflicted our species forAs great as Arm is, no single companycan realize ASI on its own. In recent years,
in addition to NVIDIA, which is rapidly
growing as a chipmaker for generative AI,hyperscalers (large-scale cloud providers)such as Amazon Web Services, Alibaba,

200,000 years.

Our core business remains
unchanged:
Information Revolution—
Happiness for everyone

Some people say that SBG changes itscore business too often, but in reality, ourcore business has remained unchanged allthese years. Everything we do is inspiredby our corporate philosophy, Information

Microsoft, and Google have been developing

Once ASI is realized, we will see dramatic

Revolution—Happiness for everyone. AllArm-based chips one after another. Similarly,changes in our lifestyles, and in socialthat has changed is the means to achieve

SBG plans to collaborate with various

rules and systems. This may raise some

this end. As technology evolves, so too

companies to realize the AI chips necessary

fundamental questions—what does it mean

must our methods. ASI is the latest meansfor ASI. ASI will also require AI data centers

to work? What does it mean to be human?

by which we fulfill our mission to drive theand AI robotics. Increasing power generation

What does it mean to be happy? Just as theevolution of humanity forward. I want towill also be essential. I say this because

ancient Greek philosophers did, we should

thank our shareholders for their faith in ourpower shortages could prove to be thebe asking probing questions. We should bevision, and I ask for your continued trust andbiggest bottleneck given the likelihood thatquestioning for what purpose we seek tosupport in the years ahead.

the advancement of AI will lead to surges increate ASI.

power demand among data centers.
Critically, while all of the SoftBank Group

Last year, I lost my father to cancer.
Grief-stricken, I wept day in and day out. Onwill be working as one to achieve this

top of that, my mother suffered a stroke.

goal, we will not be acting alone. In both

I do not want anyone to suffer from suchtechnological and financial aspects, we will

diseases. It could be difficult to provide aseek to collaborate with partners who sharesolution to these conditions with AGI asour aspirations. We will take a dynamic

it simply substitutes human intelligence.

approach, accepting that the journey will not

However, ASI, with ten thousand times

be entirely smooth. We will never skimp on

the human wisdom, could surely find ways

risk management. We remain committed toto prevent such sorrows. Why settle forour benchmark for financial health, whichsimply deploying autonomous driving on

is to keep Loan to Value (LTV: adjusted net

behalf of human drivers? ASI could reduce

SoftBank Group Report 2024

June 21, 2024
Representative Director,Corporate Officer, Chairman & CEOMasayoshi Son

15