2021
ANNUAL REPORT

Disclaimers
This Annual Report provides relevant information about SoftBank Group Corp. (“SBG”) and its subsidiaries (together with SBG, the “Company”) and its affiliates (together with the Company, the “Group”) and does not constituteor 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 future business, future position and results of operations, including estimates, forecasts,
targets and plans for the Group. Without limitation, forward-looking 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 ofthe 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 andinvolve known and unknown risks, uncertainties and other factors, including but not limited to, the success of the Group’s business model; the Group’s ability to procure funding and the effect of its funding arrangements; key
person risks relating to the management team of SBG; risks relating to and affecting the Group’s investment activities; risks relating to SB Fund (defined as below), its investments, investors and investees; risks relating to SoftBank
Corp. and the success of its business; risks relating to law, regulation and regulatory regimes; risks relating to intellectual property; litigation; 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 on these andother factors which may affect the Group’s results, performance, achievements or financial position, see “Risk Factors” on SBG’s website at https://group.softbank/en/ir/investors/management_policy/risk_factor. None of the Groupnor its management gives any assurances that the expectations expressed in these forward-looking statements will turn out to be correct, and actual results, performance, achievements or financial position could materially differ
from expectations. Persons viewing this Annual Report should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements contained in thisAnnual Report or any other forward-looking statements the Company may make. Past performance is not an indicator of future results, and the results of the Group in this Annual Report may not be indicative of, and are not an
estimate, forecast or projection of, the Group’s future results.
The Company does not guarantee the accuracy or completeness of information in this Annual Report regarding companies (including, but not limited to, those in which SB Funds have invested) other than the Group which has
been quoted from public and other sources.
Regarding Trademarks
Names of companies, products and services that appear in this Annual Report are trademarks or registered trademarks of their respective companies. “Co., Ltd.,” “Ltd.,” “Corporation” and “Inc.” have been omitted from company
names except in certain circumstances.
Important Notice – Trading of SBG Common Stock, Disclaimer Regarding Unsponsored American Depository Receipts
SBG encourages anyone interested in buying or selling its common stock to do so on the Tokyo Stock Exchange, which is where its common stock is listed and primarily trades. SBG’s disclosures are not intended to facilitate trades
in, and should not be relied on for decisions to trade, unsponsored American Depository Receipts (“ADRs”). SBG has not and does not participate in, support, encourage or otherwise consent to the creation of any unsponsored
ADR programs or the issuance or trading of any ADRs issued thereunder in respect of its common stock. SBG does not represent to any ADR holder, bank or depositary institution, nor should any such person or entity form thebelief, that (i) SBG has any reporting obligations within the meaning of the U.S. Securities Exchange Act of 1934 (“Exchange Act”) or (ii) SBG’s website will contain on an ongoing basis all information necessary for SBG to maintainan exemption from registering its common stock under the Exchange Act pursuant to Rule 12g3-2(b) thereunder. To the maximum extent permitted by applicable law, SBG and the Group disclaim any responsibility or liability to
ADR holders, banks, depositary institutions, or any other entities or individuals in connection with any unsponsored ADRs representing its common stock.
The above disclaimers apply with equal force to the securities of any of the Group which are or may in the future be the subject of unsponsored ADR programs, such as SoftBank Corp. or Z Holdings Corporation.
Notice Regarding Fund Information Contained in This Annual Report
This Annual Report is furnished to you for informational purposes and is not, and may not be relied on in any manner as, legal, tax, investment, accounting or other advice or as an offer to sell or a solicitation of an offer to buy
limited partnership or comparable limited liability equity interests in any fund managed by a subsidiary of SBG, including SB Investment Advisers (UK) Ltd.(“SBIA”), SBLA Advisers Corp. (“SBLA”) and any of their respective affiliates(collectively, the “SB Fund Managers” and each an “SB Fund Manager”) (such funds together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle or alternative investment vehicle collectively, the“SB Funds” and each an “SB Fund.” For the avoidance of doubt, the SB Funds include, among other funds, SoftBank Vision Fund L.P. (together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle
or alternative investment vehicle, the “Vision Fund I” or “SVF1”), and SoftBank Vision Fund II-2 L.P. (together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle or alternative investment vehicle,
the “Vision Fund II” or “SVF2”), which are managed by SBIA and its affiliates, SoftBank Latin America Fund L.P. (together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle or alternative
investment vehicle, the “SoftBank Latin America Fund” or “LatAm Fund”), which is managed by SBLA and its affiliates. None of the SB Funds (including the Vision Fund I , Vision Fund II and SoftBank Latin America Fund), the SB
Fund Managers (including SBIA and SBLA), any successor or future fund managed by a SB Fund Manager, SBG or their respective affiliates makes any representation or warranty, express or implied, as to the accuracy or completenessof the information contained herein and nothing contained herein should be relied upon as a promise or representation as to past or future performance of the SB Funds or any other entity referenced in this presentation, or future
performance of any successor or the future fund managed by a SB Fund Manager. Information relating to the performance of the SB Funds or any other entity referenced in this Annual Report has been included for backgroundpurposes only and should not be considered an indication of the future performance of the relevant SB Fund, any other entity referenced in this Annual Report or any future fund managed by an SB Fund Manager. References toany specific investments of an SB Fund, to the extent included therein, are presented to illustrate the relevant SB Fund Manager’s investment process and operating philosophy only and should not be construed as a recommendationof any particular investment or security. The investment performance of individual investments of an SB Fund may vary, and the performance of the selected transactions is not necessarily indicative of the performance of all of theapplicable prior investments. The specific investments identified and described in this Annual Report do not represent all of the investments made by the relevant SB Fund Manager, and no assumption should be made thatinvestments identified and discussed therein were or will be profitable.
The performance of an SB Fund in this Annual Report is based on unrealized valuations of portfolio investments. Valuations of unrealized investments are based on assumptions and factors (including, for example, as of the dateof the valuation, average multiples of comparable companies, and other considerations) that the relevant SB Fund Manager believes are reasonable under the circumstances relating to each particular investment. However, there
can be no assurance that unrealized investments will be realized at the valuations indicated in this Annual Report or used to calculate the returns contained therein, and transaction costs connected with such realizations remain
unknown and, therefore, are not factored into such calculations. Estimates of unrealized value are subject to numerous variables that change over time. The actual realized returns on the relevant SB Fund’s unrealized investments
will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ fromthe assumptions and circumstances on which the relevant SB Fund Manager’s valuations are based.
Past performance is not necessarily indicative of future results. The performance of an SB Fund or any future fund managed by an SB Fund Manager may be materially lower than the performance information presented in thisAnnual Report. There can be no assurance that each SB Fund or any future fund managed by the relevant SB Fund Manager will achieve
comparable results as those presented therein.
The actual realized return on unrealized investments by an SB Fund may differ materially from the performance information indicated in thisAnnual Report. No assumption should be made that investments identified and discussed in this Annual Report were or will be profitable, orthat investments made in the future will be comparable in quality or performance to the investments described therein.
Third-party logos and vendor information included in this Annual Report are provided for illustrative purposes only. Inclusion of such logos
does not imply affiliation with or endorsement by such firms or businesses. There is no guarantee that an SB Fund Manager, an SB Fund’s
portfolio companies, any future portfolio companies of a future fund managed by an SB Fund Manager or SBG will work with any of the firms
or businesses whose logos are included in this Annual Report in the future. SBIA and SBLA manage separate and independent operations andprocesses from each other and those of SBG and any SB Funds managed by SBIA or SBLA are solely managed by SBIA or SBLA respectively.
Adoption of IFRSs
The Company has prepared the consolidated financial statements in accordance 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.
Definition of Terms“Fiscal 2020” refers to the fiscal year ended March 31, 2021, and other fiscal years are referred to in a corresponding manner in this Annual
Report. “FYE” denotes the fiscal year-end. For example, “FYE2020” denotes March 31, 2021, the last day of fiscal 2020.
Notice Regarding PFIC Status
It is possible that SBG and certain subsidiaries of SBG may be a “passive foreign investment company” (“PFIC”) under the U.S. Internal Revenue
Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its income. For the fiscal year ended
March 31, 2021 we believe that SBG and certain subsidiaries of SBG were PFICs. We recommend that U.S. holders of SBG’s shares consult theirtax advisors with respect to the U.S. federal income tax consequences to them if SBG and its subsidiaries are classified as PFICs. SBG is not
responsible for any tax treatments or consequences thereof with respect to U.S. holders of SBG’s shares.
Company Names
Company names and abbreviations used in this Annual Report, unless otherwise stated or interpreted differently in the context, are as follows.
Company names and abbreviations

Definition

SoftBank Group Corp. or SBG▶

SoftBank Group Corp. (stand-alone basis)

The Company▶

SoftBank Group Corp. and its subsidiaries

The Group▶

SoftBank Group Corp. and its subsidiaries and associates

SoftBank Vision Fund 1 or SVF1▶

SoftBank Vision Fund L.P. and its alternative investment vehicles

SoftBank Vision Fund 2 or SVF2▶

SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles

SoftBank Vision Funds▶

A collective term for SoftBank Vision Fund 1 and 2

SBIA

▶

SB Investment Advisers (UK) Limited

SoftBank Latin America Fund▶

SoftBank Latin America Fund L.P.

SB Northstar▶

SB Northstar LP

SoftBank▶

SoftBank Corp.

Brightstar▶

Brightstar Global Group Inc.

Fortress▶

Fortress Investment Group LLC

Sprint▶

Sprint Corporation

Alibaba▶

Alibaba Group Holding Limited

Arm▶

Arm Limited

T-Mobile▶

T-Mobile US, Inc.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Table of Contents
004 Message from Our CEO
002 Who We Are
008 NAV (Net Asset Value)
010 Our Transformation

012 Growth Assets
012
016
018
022
024

The SBG Investment Portfolio
SoftBank Vision Funds: Investment Strategy
SoftBank Vision Funds: In Focus
SoftBank Vision Funds: Portfolio Companies
Arm: Business Strategy

026 Management: The Foundation Supporting Our Growth
026
030
032
036
040
042
052
054
056
057
058
065

Message from Our CFO
Sustainability: Our Approach
Sustainability: Environment
Sustainability: Society
Sustainability: Our Response to COVID-19
Sustainability: Governance
Message from Ms. Yuko Kawamoto
Compliance
Risk Management
Message from Our CRO		
Risk Factors
Annotations

066 Financial Section
067 Graphs: Key Consolidated Financial Data
068 Eleven-Year Key Consolidated Financial Data
070 Management’s Discussion and Analysis of Results ofOperations and Financial Position
114 Consolidated Financial Statements
125 Notes to Consolidated Financial Statements
265 Independent Auditor’s Report

268 Corporate Information
268 Major Subsidiaries and Associates
271 Stock Information
272 Corporate Data

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

001

Information Revolution—Happiness for everyone
We are guided by a corporate philosophy of “Information Revolution—
Happiness for everyone.” We aim to maximize our corporate value
while being a corporate group that provides essential technologies andservices needed most by people around the world.

Continue to evolve to capture growth opportunities
We view the Information Revolution as a major growth opportunity,
where information technology (IT) transforms societies and lifestyles. By
firmly seizing this important moment, we wish to contribute to people’s

Information Revolution— Happiness for everyone

happiness over the long term. To make this happen, it is imperative that
we identify changes in social needs faster than anyone else and continue
to evolve by optimizing the Group’s structure to maximize benefits fromthe technologies and business models that will be the driving forces in
the future.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

002

Bolster investment for the age of AI
Today, the incorporation of artificial intelligence (AI) into a varietyof business models is reshaping the way value is created, and manyindustries are starting to be fundamentally redefined. In this situation, tocapture the huge opportunities of market expansion and the creation of
new industries driven by using AI, we are expanding investments under
the Cluster of No.1 Strategy, a unique strategy for orchestrating theorganization. Our investments are made in companies that are expected
to help promote the Information Revolution based on the investment

Aiming to Grow for
300 Years

theme of AI and are largely made through SoftBank Vision Fund 1 and
SoftBank Vision Fund 2, as well as either directly by SBG, a holding
company, or through its subsidiaries.

Cluster of No.1 Strategy to achieve long-term growth
The Cluster of No.1 Strategy aims for a diverse group of companies
with outstanding technologies or business models in their respective
fields. It encourages these companies to continue to evolve and growtogether by creating synergies based on capital ties and shared vision
while making decisions independently. As a strategic investment
holding company, SBG influences the decision-making of the group ofcompanies formed under the Cluster of No.1 Strategy. However, we
will not require majority equity interest ownership or the integrationof brands, as we value the independence of each company. In thisway, by diversifying the Group’s portfolio with many different typesof companies, we will change and expand business lines flexibly andcontinue to grow for as long as 300 years.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

003

Message from Our CEO

Creating the Future with AI
Entrepreneurs as a “Vision Capitalist”
for the Information Revolution
SoftBank Group =A capital provider driving the Information Revolution
Over the past three or four years, I have often been asked “What is SoftBank
Group?” I have also heard comments like, “I like Masayoshi Son as anentrepreneur, but not so much as an investor.” While I am not simply an investor
in the traditional sense, I had been providing the short explanation that SBG isan investment company. At the same time, I felt frustrated about how best to
explain what the company really is. I would therefore like to take this opportunity
to define SBG once again: Put simply, SBG is a capital provider driving theInformation Revolution.
The Industrial Revolution, which began in the U.K. in the latter half of the
18th century, gained further momentum in other countries in the 19th century
driven by the development of the steam engine. Providing the impetus for thisrevolution were inventors such as James Watt. In addition to inventors, capitalists
including the Rothschilds, who took risks and provided capital to inventors,
played an indispensable role. For example, while it was Mr. Watt who significantly
increased the efficiency of the steam engine, it was the Rothschilds who took therisk and provided the huge amounts of capital that helped spur the popularityof railroads in Europe. In this manner, inventors and capitalists together drove
the Industrial Revolution, which triggered ongoing global GDP growth. Now,
about 200 years later, in the 21st century, the Information Revolution is about
to bloom. In similar fashion to the role played by inventors during the Industrial
Revolution, entrepreneurs such as Jeff Bezos of Amazon, Steve Jobs of Apple
and Bill Gates of Microsoft have been instrumental in leading the Information

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

004Message from Our CEO

Revolution. And just as in the Industrial Revolution, the Information Revolution is

we did not have enough capital at that time as a capital provider. Throughsteadily advancing as capital providers invest more and more into entrepreneurs.

investments in companies like Yahoo! Inc., Yahoo Japan, Alibaba, SoftBank

SBG is especially keen to focus on AI, which is the most advanced component

Mobile, Sprint, and Supercell, we achieved an internal rate of return (IRR) ofof the Information Revolution. We are proud to say that SBG is likely the largest

43% over the 27 years from 1994 to 2021. As far as SoftBank Vision Funds areprovider of capital to entrepreneurs in the field of AI. AI is redefining every

concerned, results fell short of expectations until the first half of 2020. Critics

industry, including autonomous driving, healthcare, finance, education, andcommented that my insight was not as good as before or that I had become

retail. As of June 18, 2021, we have made 264 investments (including 44 that

too greedy. Owing to the subsequent V-shaped recovery, however, the net

have been approved by the respective investment committees but have not yet

equity IRR of SoftBank Vision Fund 1 and SoftBank Vision Fund 2 came in atbeen completed)* through SoftBank Vision Fund 1 and 2 as well as SoftBank

43%*3 by the end of March 2021, which is in line with the result of SBG’s other

Latin America Fund. Many of these portfolio companies are not yet profitable,

investments and a level that we can be proud of. That said, there have been

but as a capital provider, we are taking risk and making investments.

certain investments that make me feel embarrassed just recalling their names.

1

Just as human power was replaced by machines in the Industrial Revolution, I
suspect machines will be replaced by AI in the Information Revolution. And, just as

Accordingly, there are many lessons that we have learned, which we haveapplied to the next investment decisions and results have followed.

the Rothschilds played a pivotal role in the Industrial Revolution, I would hope that
SBG, as a capital provider, will become a key player in the Information Revolution.
This is what being a capital provider for the Information Revolution means.

NAV

Main Driver:¥26

SoftBank Vision Funds

SoftBank Vision Funds have been driving
NAV growth recently
As a capital provider, SBG’s most important indicator is Net Asset Value (NAV),

Main Driver:which is the equity value of holdings less the net debt.*2 Many operating

Alibabatrillion (As of March 31, 2021)

companies focus on net income, but for us this is not the most important
indicator. While fluctuations occur on a daily basis, SBG’s NAV came in at ¥26
trillion as of March 31, 2021. Looking back over the past 20 years or so, Yahoo!
Inc. and Yahoo Japan led SBG’s NAV growth from the late 1990s to the mid-Main Driver:

SoftBank Mobile

2000s, SoftBank Mobile (currently SoftBank) then became the main driver from2006, followed by Alibaba from 2014 when the company went public. Most

Main Driver:recently, SoftBank Vision Funds, which I have been focusing on the most, areYahootaking the lead in driving NAV forward. In this manner, the driving force has
switched as the Information Revolution has evolved.
While SBG has made a lot of investments since the cradle of the Internet,

SoftBank Group Corp. ANNUAL REPORT 2021

2000

2005

2010

2015

2020

(FY)

Note: The graph is color-coded by the major assets that have driven the NAV increase in each period for illustrative purposes.

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

005

Message from Our CEO

The goal of a capital provider is to create the future
The most important goal for investors is to make money, but for capital

Bringing the “Information Revolution—Happiness foreveryone” to fruition as a Vision Capitalist

providers, it is to create the future. While similar in nature, there are significant

In the Industrial Revolution, inventors and capital providers shared a vision todifferences. The Rothschilds, as a capital provider, laid the foundation for ourcreate the future. In the Information Revolution, especially the Information

lives in the Industrial Revolution, and the future (from then) up to the present.

Revolution driven by AI, SBG will share a vision with AI entrepreneurs and aspire

Likewise, SBG, as a capital provider for the Information Revolution, has made it

to shape the future together. For example, if autonomous driving using AI

our mission to help shape the future.

becomes widespread, we could see a world without traffic accidents; if medical

Naturally, the focus of investors and capital providers is completely different.

science evolves dramatically through AI analysis, a world free of fatal diseases

Looking at global market capitalization by industry from 1994 to 2021, thewill be possible; and if online education using AI becomes widely available, allreal estate sector grew five times, retail eight times, finance 12 times, andchildren can have equal access to education. In our daily lives, the way we spend

manufacturing 13 times. Investors pay close attention to the daily movements ofmoney, work, and enjoy our leisure time is changing dramatically. AI is about toindicators that affect the stock prices of these industries, such as interest rates,

bring us a whole new lifestyle.

exchange rates, and employment statistics, as well as the monetary policies ofRecently, I am sometimes asked if SBG is a venture capitalist (VC). In simple

the authorities, and make decisions based on these indicators. However, forterms, SBG may be a huge VC. From my perspective, however, I am notcapital providers who are looking to shape the future over a 10- to 30-year span,

comfortable with this definition. I believe that SBG is a VC—“Vision Capitalist”

these indicators are not necessarily important. As a capital provider, all I see isthat will shape the future of the Information Revolution over the course of

how technology is going to create a paradigm shift. In the formative years ofseveral decades. Our corporate philosophy of “Information Revolution—

the Internet, most Internet companies did not generate profits. Nevertheless,Happiness for everyone” has not changed since our first day of business 40 years

SBG took the risk and invested tens of billions of yen. At the time, investing

ago, no matter how many times our business has changed. As a capital provider

in companies that were not making a profit was beyond the understanding offor the Information Revolution and a Vision Capitalist, we will continue our efforts

ordinary people, and even in the U.S., I was criticized as “the last bubble man

to make this philosophy a reality.

from Japan.” However, buoyed by the advance of the Information Revolution,
the Internet industry grew at a CAGR of 34%, or 2,000 times, from 1994 to
2021 (the same period that I mentioned earlier). My point here is that the greater
the risk capital providers take to shape the future, the greater the expected
return, and this is how they have been able to achieve a great return. Yet, theInformation Revolution has only just begun. I am confident that AI will continue

Masayoshi Son
Representative Director,
Corporate Officer,
Chairman & CEO

to expand the market capitalization of the Internet industry.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

006

Message from Our CEO

What are your thoughts on share buybacks?
I believe that our announcements of a share buyback program totaling ¥2.5 trillion in
March 2020 and the fact that we completed it by May 2021 have been well received bymany shareholders and investors. Share buybacks as a means to provide returns to shareholders
is an important theme that I always keep in mind. It is also an important agenda item and an
ongoing topic of discussion among the management team. However, weighing when andto what scale a buyback should be conducted are equally important. It is vital that we adopt
a balanced approach, taking into consideration a variety of factors including our financial
condition and available investment opportunities at the time. With this in mind, I cannot say
exactly when we will conduct share buybacks in the future.
I myself am the largest shareholder of SBG and believe that the stock price is important. At

the same time, NAV is the most important indicator for SBG as a capital provider. So it is vitalthat the management team, including myself, work very hard to reduce the gap (discount)between the NAV per share and SBG’s stock price. I also recognize that it is our responsibility to
do our best so that shareholders understand and appreciate our efforts.
However, if we look back, the amount of share buybacks conducted since 2011 totaled ¥3.8
trillion, including the ¥2.5 trillion conducted since March 2020. Together with dividends, we
believe that the total shareholder return is quite high. I hope that our shareholders will take alonger view. It is sad that people are only interested in share buybacks and are mainly concernedwith whether we will conduct another such initiative or how much the next buyback program
will be.

What are your thoughts on succession planning?
When I was 19 years old and still in college, I made a 50-year plan for my life. Put
simply, my plans were to make a name for myself in my 20s, build up funds in my
30s, take on bold challenges in my 40s, complete my businesses in my 50s, and hand themover to the next generation in my 60s. I have been saying since I was 19 that the most difficultand most important of these five stages will be the final stage of handing over to the next
generation. The mission of a founder is to establish a foundation that will ensure the company
survives and prospers for a long time. With this in mind, I will work steadfastly to ensure asmooth succession of the business so that SBG can continue to grow for 300 years.
With advances in medical science and a full tank of motivation, I have started to commentthat I may still be CEO after the age of 69 as a protective measure (I am 63 years of age as ofJune 30, 2021). Alternatively, I may hand over the position of CEO to a successor and remain
deeply involved as Chairman. In any case, passing the baton successfully is the most important
theme and I believe that I must identify a successor candidate during my 60s who will graduallytake over the management of the company.

*1 The sum of SVF1 (92 total portfolio companies), including JVs / affiliates among portfolio companies and SVF1 and 11 fully exited companies as of May 31, 2021; SVF2 (72 portfolio companies) as of May 31, 2021, 13 portfolio companies of SVF2 invested between June 1, 2021 andJune 18, 2021, 44 companies post-investment committee approval but pre-investment closing of SVF2 as of June 18, 2021; and SoftBank Latin American Fund (43 total portfolio companies) as of May 31, 2021. Of this total and regarding pre-investment closing projects, there can be
no assurances that any plans described herein will be realized, and all such plans are subject to uncertainties and risks. There can be no assurance that pre-investment closing projects will ultimately be acquired by SVF2 or any future fund managed by SBIA.
*2 See page 65 for the assumptions used to calculate the equity value of holdings and net debt.
*3 Net Equity IRR (SBG LP + Manager’s Performance Fee). Net Equity IRR of SVF1 and SVF2, 43%, represents the aggregate combined performance since inception for SBG’s investments in SoftBank Vision Funds.
Net Equity IRR means the internal rate of return of Class A Equity Interests after taking into account management fees, performance fees (carried interest), preferred equity coupon, operational expenses, organizational expenses and other expenses borne by the Limited Partners. It is computed
using the Limited Partners’ Class A Equity cash outflows (capital contributions) and inflows (distributions), net of investment-related financing, as well as the Net Asset Value attributable to Class A Equity Interests as of March 31, 2021. Net Equity IRR (SBG LP + Manager’s Performance Fee)reflects the Net Equity IRR specific to SBG’s Class A Equity Interests, modified to reflect the additional impact of performance fee payments and related accruals from the perspective of the Manager. With regard to SVF1, the Manager’s performance fee related to exits prior to the end of theinvestment period has been paid in full to the Manager and is subject to clawback provisions. As of March 31, 2021, SVF2’s committed capital comprises Class A Equity Interests, only, with SBG as the sole Limited Partner. SoftBank Vision Funds have a limited operating history and accordingly,
performance information may not be representative and actual realized return on these unrealized investments may differ materially from the performance information indicated herein. SoftBank Vision Funds’ performance is based in part on valuations of certain investments that werecollectively acquired recently by the funds from SBG; accordingly, the performance information herein, which is based in part on valuations of unrealized investments, is not indicative of future results. SBG is under no obligation to collectively offer similar assets to SVF1 or SVF2 in the future.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

007

NAV (Net Asset Value)

NAV: Key Performance Indicator
As of March 31, 2021

¥29.8 trillion

We set NAV (Net Asset Value) as a
key performance indicator. NAV is
calculated by deducting net debt
from the equity value of holdingsin the investment portfolio of SBG,

OthersInvestments inlisted stocks

company. We believe NAV is the most
SBG, which manages its investment

Net debt¥3.7trillion¥2.7 trillion

a strategic investment holding
appropriate indicator for evaluating¥1.4 trillion¥1.7 trillion

SVF2¥1.5 trillion¥1.3 trillion

SVF1¥6.2 trillion

portfolio comprising Group companies
and investees.

¥26.1¥2.3 trillion

trillion¥12.7 trillion

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

NAV（Net Asset Value）

Equityvalue ofholdings

Net debt

Note: The equity value of holdings and net debt each exclude amounts to be settled atmaturity or borrowings that are part of asset-backed finance. The calculation of net
debt excludes interest-bearing debt and cash and cash equivalents, etc., attributableto entities within the Company, including listed subsidiaries such as SoftBank and Z
Holdings, and entities managed on a self-financing basis, such as SVF1, SVF2, Arm,
PayPay, and Fortress, along with SB Northstar, an asset management subsidiary
responsible for investments in listed stocks and other instruments.
See page 65 for the assumptions used to calculate the equity value of holdings
and net debt.

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

008

NAV

NAV (Net Asset Value)¥26.1

Boosting NAV Growth by Investing in the Information Revolution

trillion

As of March 31, 2021

2019
Launched SVF2

We have consistently focused our investments on growth opportunities brought about by the Information Revolution
and have sought to grow NAV by supporting the growth of portfolio companies and increasing the equity value of

2018
SoftBank listed on the First Sectionof the Tokyo Stock Exchange

holdings by fully leveraging our expertise in the technology field. We will continue investing in the paradigm shiftthat will be led by market expansion and the creation of new industries using AI, with the aim of achieving further
growth in NAV.

2017
Launched SVF1
2016
Acquired the major U.K.-based
semiconductor technology designer Arm
2014
Alibaba listed on the New
York Stock Exchange

2001
Launched the ADSL
service Yahoo! BB

PC Software

2013
Acquired U.S.-based Sprint

2004
Acquired JAPANTELECOM

1981
Founded as a distributor of
packaged software for PCs

Strategic investment
holding company

2006
Acquired Vodafone K.K.

Internet and broadband

Mobile broadband

Data and AI(FY)

Note: NAV data for each quarter-end. See page 8 for details of the NAV of ¥26.1 trillion (as of March 31, 2021). The NAV data are Company estimates based on the information available to it, and the accuracy or completeness of the information is not guaranteed 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 not form the basis of investment decisions. The figures are based on data before considering taxes unlessotherwise stated.

SoftBank Group Corp. ANNUAL REPORT 2021

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Growth Assets

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009

Our Transformation

Our Vision Is Consistent. Our Investment Areas Continue to Evolve
From 1981 SOFTBANK Japan was established in September 1981 with the aim of becoming a“software bank” that would play a role in the infrastructure of the information society. At the timeof establishment, we engaged mainly in the distribution of packaged software. Since then, we haveachieved growth by quickly and definitively capturing trends in the development of information
technology through our investment business. While engaging in “time machine management” tobring businesses born in the U.S. to Japan, we set up SoftBank Holdings in the U.S. in 1994 to gather
information on Internet-related companies and undertake strategic investments. Through one of
SoftBank Holding’s investments, we invested in Yahoo! Inc., a newly established company in the U.S.
From 1996 From 1996, which we positioned as the “First Year of the Internet,” we started toaccelerate our strategic investments in Internet-related businesses around the world. In addition toundertaking a succession of transactions including the acquisition of Ziff-Davis Publishing, a major
computer-related publishing company in the U.S., and investment in E*TRADE Group, a major online
securities trading service provider, we rolled out some of the world’s most advanced Internet businessmodels in Japan through subsidiaries one after another, including the establishment of Yahoo Japan(currently Z Holdings) through a joint venture with Yahoo! Inc. In 1999, we transitioned to a pureFounding of the company andrise of the PC

holding company, creating the prototype for the current Group that unites subsidiaries and associates
as an investment portfolio. Around this time, we also invested in Alibaba (then Alibaba.com), which
continues to demonstrate remarkable growth as a leader in China’s explosive e-commerce market.
In anticipation of the evolution of the Internet business model, we strengthened our investment in
the telecommunications business in Japan after entering the new millennium. In 2001, we launched
the broadband service Yahoo! BB and strengthened investments in enterprise business centered on
the fixed-line telecom business through the acquisition of JAPAN TELECOM in 2004. In addition,
we enhanced our corporate reputation and brand recognition in Japan by acquiring a professional
baseball team (currently the Fukuoka SoftBank HAWKS) in 2005.
From 2006 In 2006, we acquired Japan arm of Vodafone (currently SoftBank) and shifted ourinvestment focus to mobile communications. Leveraging our expertise of the Internet business, we
rapidly expanded our customer base by introducing innovative price plans, enhancing our network,and expanding the lineup of handsets, including the launch of iPhone 3G as the first provider in Japan
in 2008. As a result of this series of initiatives, SoftBank has grown from a company with a stock
value of approximately ¥1.75 trillion at the time of acquisition to one with a market capitalization

Driving Internet andbroadband diffusion in Japan

Expanding investment
focused on mobility©SoftBank HAWKSSoftBank Group Corp. ANNUAL REPORT 2021

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010

Note: iPhone is a trademark of Apple Inc., registered in the United States and other countries. TM and ©2021 Apple Inc. All rights reserved.

Our Transformationof approximately ¥6.96 trillion (as of June 30, 2021). Meanwhile, following the Great East Japan
Earthquake, we established SB Energy in October 2011 and began investing in solar, wind andother natural energy power generation businesses. In 2013, fully leveraging the experience andknow-how cultivated in Japan, we acquired Sprint and expanded our investment in the U.S.
telecommunications market.
From 2015 With the name change to the current SoftBank Group Corp. in July 2015, ourposition as a strategic investment holding company became increasingly clear. Anticipating theage in which AI will be used to an even greater extent, in September 2016 we acquired Arm, amajor semiconductor designer company based in the U.K. This acquisition helped further broaden
and deepen our technology expertise to drive the Information Revolution. In May 2017, SoftBank
Vision Fund 1 commenced operations. Since then, it has
been making large-scale investments in high-growthpotential companies that leverage AI. In December 2018,
SoftBank, a core subsidiary in the telecom businessfield, went public, giving shape to the current Groupstructure, with SBG acting as a holding company that engages in global investment activities.
With SoftBank Vision Fund 2 launched in October 2019, our investment activities developed withfurther geographical and strategic diversification.
From 2020 As we entered the year 2020, we started to see a flow of the “harvest” of ourinvestments we made over the past few years. In April 2020, SBG completed the long-pending
merger between Sprint and T-Mobile, and in June, we sold about two-thirds of the T-Mobile sharesacquired through the merger. In September 2020, SBG agreed to sell all of its shares in Arm to
NVIDIA. While the world has seen the explosive spread of COVID-19, which has had a major
impact on the global economy, the pandemic also accelerated the adoption of digital services
across all industries. As a result, our portfolio companies that have benefited from this digitalization,
particularly those of SVF1 and 2, have been going public
one after another since the second half of 2020. We
will continue to strengthen our investment in innovative
companies that are pioneering the future using AI andlook forward to evolving and growing together.

Further driving theInformation Revolution as a
strategic investment holding
company

SoftBank Group Corp. ANNUAL REPORT 2021

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011

The SBG Investment Portfolio

Classification of Assets Included in NAV
As of March 31, 2021

Reportable segments

Total consolidated carrying

Difference

Total (A)*1

amount of assets held (B)*1(A) – (B)

¥16.9 trillion¥7.0 trillion¥9.9 trillion¥7.5 trillion¥7.5 trillion–¥2.3 trillion¥2.3 trillion¥1.4 trillion¥0.9 trillion¥2.7 trillion*2¥2.7 trillion¥2.5 trillion*¥0.2 trillion¥0.4 trillion¥0.4 trillion

–

Total

Total

¥29.8 trillion¥18.8 trillion

Equity value of holdings
Subsidiaries

SoftBank

Arm

Investments accounted for using FVTPL¥1.5 trillion

Investment Businessof Holding
Companies

SVF1 and Other
SBIA-Managed
Funds

Equity method associates

Investments in listed stocks¥12.7 trillion¥1.7 trillion
SBG’s other portfolio companies¥1.0 trillion

SVF1¥6.2 trillion

SVF2¥1.3 trillion

SoftBank Latin America
Fund portfolio companies

Other¥0.4 trillion
Note: See page 65 for the assumptions used to calculate the equity value of holdings.
*1 The total value of assets held and total consolidated carrying amount of assets held are solely for the assets listed in the table.
*2 SBG and SVF1 hold 75.01% and 24.99% of Arm shares, respectively. Arm’s equity value of ¥2.7 trillion is attributed to SBG’s holdings and the value of the remaining SVF1’s
holdings is included in SVF1. Arm’s consolidated carrying amount of ¥2.5 trillion is attributed to SBG’s holdings.

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Management: The Foundation Supporting Our Growth

Financial Section¥11.0 trillion
Corporate Information

012

The SBG Investment Portfolio

SVF1 and SVF2

Equity value ofholdings:(As of March 31, 2021)

Equity value ofholdings:¥7.5 trillion(As of March 31, 2021)¥2.3 trillion(TSE: 9434)

SVF1, which began operations in 2017, aims to maximize returns from a medium- to

SoftBank’s predecessor is primarily the Japanese unit of Vodafone, which was acquired inlong-term perspective, with investments in high-growth-potential companies that are

2006. SoftBank currently serves as the Company’s principal operating company in Japan andleveraging data and AI, particularly in companies colloquially known as “unicorns.” Thelisted its shares in December 2018. SoftBank aims to further grow its core telecommunications

fund has invested in 92 companies (including exited investments) as of March 31, 2021 atbusiness under its Beyond Carrier strategy, as well as expand its non-telecommunications

a cumulative investment cost of $85.7 billion, achieving a cumulative investment gain of

business through the growth of Z Holdings, which became a subsidiary in June 2019, and$55.0 billion.

the creation of new businesses. As of March 31, 2021, the cumulative number of

SVF2 was launched in October 2019, with the aim of facilitating the continued

smartphone subscribers was 25.93 million, and the cumulative total of fiber-optic service

acceleration of the AI revolution through investment in market-leading, tech-enabledcontracts was 6.92 million. In the non-telecommunications domain, the business integration

growth companies. SBG is the sole limited partner investing in SVF2, with a committedof Z Holdings and communication app provider LINE was completed in March 2021.

capital of $40.0 billion as of June 23, 2021. The fund has invested a total of $6.7 billion

The Company sold part of the shares in SoftBank held by thein 44 companies as of March 31, 2021, achieving a cumulative

Company’s wholly owned subsidiary for a total of ¥1.5 trillion

investment gain of $4.5 billion.

in May and September 2020. SoftBank’s strategic

SBIA, the Company’s wholly owned subsidiary, acts asimportance remains unchanged, so the Company intends tothe manager of SVF1 and SVF2, and is entitled to receive

continue to hold its post-sale shares held (ownershipmanagement fees and performance fees from both

percentage: 40.9% as of March 31, 2021) over thefunds.

medium to long term. The annual dividend paid to thesaid subsidiary was ¥254.6 billion in fiscal 2019 and¥217.6 billion in fiscal 2020. This represents animportant and stable source of cash.

Rajeev Misra
Corporate Officer, Executive Vice President,
SoftBank Group Corp.
CEO, SoftBank Investment Advisers

Junichi Miyakawa
President & CEO, SoftBank Corp.

See pages 16-23 for details.

SoftBank Group Corp. ANNUAL REPORT 2021

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See the SoftBank IR website for details.

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

013

The SBG Investment Portfolio

Equity value ofholdings:(As of March 31, 2021)

Equity value ofholdings:¥2.7trillion(As of March 31, 2021)¥12.7trillion(NYSE: BABA, HKSE: 9988)

Established in 1990, Arm’s operations primarily consist of licensing of semiconductor

Founded in 1999, Alibaba’s mission is to “make it easy to do business anywhere.” Its

intellectual property (IP), including the design of energy-efficient microprocessors andbusinesses consist mainly of core commerce, which operates the CtoC marketplace

related technologies. Since the Company’s acquisition in September 2016, Arm has

Taobao and the BtoC marketplace Tmall, along with cloud computing and digital media

aimed to develop new technologies to maintain or increase its share in its existingand entertainment.

markets and acquire share in new markets, while increasing its technical capabilities in

In September 2019, founder Jack Yun Ma resigned as chairman, and the company

important investment areas such as mobile computing, infrastructure, automobiles, andis advancing its growth strategy under the direction of his successor, CEO Daniel

IoT. In March 2021, Arm introduced the Armv9 architecture which will be the underlying

Yong Zhang. As of March 31, 2021, annual active consumers for the Alibaba

technology for many future product families. This architecture has the potential to

Ecosystem reached over one billion, including 811 million consumers on its China

provide higher performance as well as enhanced security, privacy, and confidentiality.

retail marketplaces. GMV transacted in the Alibaba Ecosystem was CNY 8.1 trillion($1.2 trillion) for the fiscal year ended March 2021, which mainly included China retail

In September 2020, a wholly owned subsidiary of the Company

marketplaces GMV of CNY 7.5 trillion ($1.1 trillion).

and SVF1 entered into a share purchase agreement with

The Company initially invested in Alibaba in 2000. As

U.S. semiconductor manufacturer NVIDIA, whereby theCompany will sell all of the shares in Arm held by theof March 31, 2021, the Company owns 5,390 million

subsidiary and SVF1 to NVIDIA for up to $40 billion. This

shares of Alibaba common stock (voting rights 24.8%).

is expected to take approximately 18 months to close
following the execution of the purchase agreement.

Daniel Yong Zhang

Simon Segars

Chairman and CEO,
Alibaba Group Holding Limited

CEO, Arm Limited

See pages 24 and 25 for details.

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

014

The SBG Investment Portfolio

Equity value ofholdings:(As of March 31, 2021)¥1.5 trillion(NASDAQ: TMUS)

Investments
in listed
stocksEquity value ofholdings:(As of March 31, 2021)¥1.7trillion

OthersEquity value ofholdings:(As of March 31, 2021)¥1.4 trillion

On April 1, 2020, the merger of Sprint, which had

The Company has been investing in highly liquid listed“Others” includes SBG’s other portfolio companies

been a subsidiary of the Company, and T-Mobile US,

stocks from the first quarter of fiscal 2020 to diversify

such as online finance provider Social Finance, andInc. in an all-stock transaction was completed. As

assets and manage surplus funds, focusing mainly on

flexible office space operator WeWork,* online

consideration for the merger, the Company received

the information and technology field. From the second

insurance company Lemonade, as well as investees of

305 million shares (24.7% of shares outstanding) ofquarter, asset management subsidiary SB Northstar

SoftBank Latin America Fund.

the new combined company T-Mobile US (“T-Mobile”)

has been acquiring and selling listed stocks and otherand the right to acquire 49 million T-Mobile shares

instruments and engaging in derivative and credit

that engages in investment activities throughout Latinfor no additional consideration if T-Mobile’s sharetransactions related to listed stocks. As of March 31,

America, including Argentina, Brazil, Chile, Colombia,

price exceeds the predetermined amount over a

2021, its portfolio included Amazon, Facebook, TSMC,

and Mexico. As of March 31, 2021, the fund held 37

certain period of time. Since the merger, T-Mobile has

PayPal, and Microsoft.

investments, including Brazilian online bank Banco

SoftBank Latin America Fund is a technology fund

The interest in SB Northstar is indirectly held 67% by

Inter, online used car sales platform operator KAVAK

network in the U.S. to increase mobile service contracts

SBG and 33% by Masayoshi Son, SBG’s Representative

HOLDINGS and home delivery app service provider

to 103 million (as of March 31, 2021), surpassing AT&T

Director, Corporate Officer, Chairman & CEO. If, at theRappi. The fund had invested a cumulative total of

to become No. 2 in the industry.

leveraged the largest, fastest, and most reliable 5G

end of the fund life (12 years + 2-year extension), SB$2,605 million, with a fair value of $4,013 million, as

The Company sold approximately two-thirds of its

Northstar has any unfunded repayment obligationsof the same date.

T-Mobile shares held for $20.1 billion in June-August

to SBG, Masayoshi Son will pay his pro rata share of2020. T-Mobile’s parent company Deutsche Telekom

any such unfunded obligations based on his relative

AG holds call options for the majority of T-Mobile

ownership percentage of SB Northstar.

* The value of WeWork shares held by SVF1 is included in SVF1.

shares continued to be held by the Company.

See T-Mobile’s IR website for details.

SoftBank Group Corp. ANNUAL REPORT 2021

See pages 85 and 86 for details.

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Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

015

SoftBank Vision Funds: Investment Strategy

Realizing Our Vision
Fiscal 2020 was a transformational year for SoftBank Vision Funds and the world.
The pandemic affected each of us in ways none of us could have predicted.

can support our portfolio companies throughout their life cycle.
For example, our operating group is a collection of experienced operators who

We have had to be even more agile as individuals and as an organization

help our portfolio companies enter new markets, navigate growth, and leverageand pull together to navigate uncharted territory. I truly believe that we have

the SoftBank Group ecosystem. They play a critical role in ensuring our portfolio

emerged stronger, and I am humbled by the resilience our team has shown in thecompanies can benefit from working with each other, as well as SoftBank Group

face of such once-in-a-lifetime adversity. We have worked tirelessly for our firm,companies and investments.
We also have more than 100 colleagues dedicated to control functions,

our LPs, and our portfolio companies.
SoftBank Group has completed its transition to an investment company, withincluding compliance, investment risk, operational risk, internal audit, valuations,

SoftBank Vision Funds as the centerpiece for private investing. Since inception,and legal. Every quarter, our valuations team analyzes and values each and every

SoftBank Vision Fund 1 has had 14 companies go public and as of March 31,

one of our portfolio companies.
Our capital markets group now manages more than $50 billion of public

2021, generated cumulative gross investment gains of $55.0 billion*1 anddistributed $22.3 billion to LPs.* Recent highlights include the IPOs of Auto1,

stock. They help ensure we take a disciplined and balanced approach to

Coupang, DoorDash, Opendoor and Relay Therapeutics, as well as the sale ofmonetizing our assets. As more portfolio companies list publicly, our public

OSIsoft. We believe the announced SPAC mergers of Grab and WeWork, andholdings should continue to grow.

2

the pending acquisition of Arm by NVIDIA, will create additional opportunities to
unlock value when those transactions close.
SoftBank Vision Fund 2* is also off to a strong start. As of March 31, 2021,
3*1 SBG consolidated basis*2 Distributions include realized proceeds
and preferred equity coupon distributedor paid to limited partners from fundinception to March 31, 2021. They
are net of return of recallable utilized
contributions that were simultaneously
retained and reinvested and do
not include the return of recallable
unutilized contributions.
*3 The information included herein is
made for informational purposes onlyand does not constitute an offer tosell or a solicitation of an offer to buy
limited partnership interests in any
fund, including SoftBank Vision Fund
2 (SVF2). SVF2 has yet to have an
external close, and any potential third
party investors shall receive additional
information related to any SVF2
investments prior to closing.
*4 Number of investments includes
investments in portfolio companies
made by SVF2 and joint ventures withexisting portfolio companies fromfund inception to March 31, 2021. It
does not include hedges related to theinvestments.

A sustainable and equitable future
We are steadfast in our belief that investing in the technology of

we invested $6.7 billion*1 in 44 companies,*4 and we have a robust pipeline of

the future can unlock even greater returns for the economies

investments globally. The public listings of Beike, Seer, and Qualtrics have alreadyand societies of tomorrow.
From our investments to our social impact initiatives, we

driven up the fund more than $4.0 billion* since inception.
1

I expect that fiscal 2021 will be an exciting year. We now have many arrows

strive to have a positive impact on the world. From thein our investing quiver and the flexibility to partner across the life cycle ofstart, we have aligned our work with the UN’s Sustainable

companies from early stage through to IPO. Our unparalleled ecosystem will only

Development Goals (SDGs), which provide a mission-led

continue to grow and become even more attractive to founders drawn by its

framework we know our founders, employees

potential to accelerate their company’s growth.

and LPs value. In fiscal 2020, many of our

Built to last
In just four years, we have built a platform that will enable us to invest in AI
companies for decades to come. SoftBank Investment Advisers is now comprised

Rajeev Misraof more than 300 employees across 10 global offices, and we continue to grow.

Corporate Officer, Executive Vice President,
SoftBank Group Corp.
CEO, SoftBank Investment Advisers

In addition to our strong investment team, we have built an organization that

SoftBank Group Corp. ANNUAL REPORT 2021

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SoftBank Vision Funds: Investment Strategy

portfolio companies globally were in the vanguard of the response to COVID-19

Revolution. Earlier technologies revolutionized a few industries, like advertising andthrough contributions such as developing medical treatments, supporting our

e-commerce. We believe AI will transform every industry in the world. COVID-19

frontline workers and supplying basic needs.

and the pandemic that followed validated Masa’s vision, and accelerated it.

We continue to take concrete action to foster a more equitable tech and VC

Looking ahead, it is clear that the pandemic will permanently reshape ourecosystem that better reflects the societies we serve. Now in its second year, oureconomy in ways that we are just beginning to understand. It is our view that

Emerge program champions diversity by connecting underrepresented founders

most of the acceleration we have seen will be permanent. Once new habitswith the capital, tools and networks needed to help scale their businesses.

are developed, they tend to stick, especially when they make your life easier.

Applications recently opened for our second Emerge cohort, this time in Europe.

We believe this will disproportionately benefit our portfolio companies because

Drawing on SoftBank Group’s unique convening power, we are pleased tothey are driving innovation forward in many of the industries that are benefiting

expand this year’s program to bring together a coalition of leading European VCs

from this surge in demand, including e-commerce, entertainment, healthcare,and seed-stage investors to partner in this critical endeavor.

education, fintech, food delivery and logistics.

A vision accelerated

ability to invest and monetize wisely through this transition, and help ourLike Masa, I have always believed artificial intelligence will have a greater impact

portfolio companies navigate it, will determine the ultimate success of bothon the economy than the PC, the Internet or the mobile stages of the Information

SoftBank Vision Funds.

*5 Funding rounds, public listingsand strategic exits include
investments in SoftBank Vision
Fund 1 and SoftBank Vision
Fund 2.

This interim period is a time of tremendous opportunity and risk, and ourValidation of our vision

2020

2021+

COVID-19

Accelerating
Technological Shifts

Continuing
to Invest+25
investments

Unlocking Value throughPublic Listings and M&A+2
investments

FUNDINGROUNDS*5+5
investments

BEIKE

STRATEGICEXITS*5

PUBLICLISTINGS*5

Note: The information herein is provided solely for illustrative purposes, reflecting the current beliefs of SBIA as of the date hereof, is based on a variety of assumptions and estimates that are subject to various risks. Any forecasts, targets or estimates presented herein are subject to a number of important risks, qualifications, limitations, and exceptions
that could materially and adversely affect the illustrative scenarios or results presented herein. Accordingly, actual results may differ materially. For the avoidance of doubt, it should not be understood as the ”track record“ or projected performance of SoftBank Vision Fund 1, SoftBank Vision Fund 2 or any other fund or investment vehicle
managed by SBIA. There can be no assurances that any plans described herein will be realized on the terms expressed herein or at all, and all such plans are subject to uncertainties and risks, as well as investor consents and regulatory approvals, as applicable. Selected investments presented herein are solely for illustrative purposes and do
not purport to be a complete list of SoftBank Vision Fund 1 investments and SoftBank Vision Fund 2 investments. References to investments included herein should not be construed as a recommendation of any particular investment or security. It should not be assumed that investments made in the future will be comparable in quality or
performance to the investments described herein. See pages 22 and 23 for a more complete list of investments of SoftBank Vision Fund 1 and SoftBank Vision Fund 2. Exit or IPO information is presented solely for illustrative purposes, has been selected in order to provide examples of current and former SoftBank Vision Fund 1 and SoftBank
Vision Fund 2 investments that have been publicly listed and do not purport to be a complete list thereof. Individual investors’ results may vary. References to specific investments should not be construed as a recommendation of any particular investment or security.

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017

SoftBank Vision Funds: In Focus

See SoftBank Vision Funds’ website for further details.

Investment results

In the last four years, SoftBank Vision Fund 1 has made 92 investments*4 andAs of March 31, 2021, SoftBank Vision Funds have invested in 136 companies

created significant value for its LPs. Dozens of the portfolio companies haveacross nine sectors. Their cumulative investment gains of $59.5 billion*1 have

proven to be bold disruptors in large markets. Significant value is unlocked when

been achieved on an acquisition cost base of $92.4 billion,* representing a 1.6x

our portfolio companies list publicly. Backed by these records, we, SoftBank

multiple on invested capital. This brings the total fair value*2 of both funds toInvestment Advisers believe investors will continue to be receptive to our strong,$151.9 billion.

market-leading private companies as they step into the public markets. Already,1

SoftBank Vision Fund 1 has distributed $22.3 billion to its LPs.
Many entrepreneurs are now leveraging data and AI in new ways to redefine

Performance snapshot

major industries, and we are ramping up our pace of investments to meet the

As of March 31, 2021

SVF1
(U.S. dollars)

opportunity. The capital commitment in SoftBank Vision Fund 2 was recently

SVF2

140.7 bn

expanded to $30 billion through an additional $20 billion commitment from

(U.S. dollars)

SBG.*5 Through SoftBank Vision Fund 2 we have already partnered with 44

Exited*3

companies as investees. We are excited about the potential of each individual

18.0

Currently held
and listed*1 SBG consolidated basis*2 Includes sale price of exitedinvestments*3 Value of exited investments for
SoftBank Vision Fund 1 (SVF1)
includes associated derivative
costs and gain / loss.
*4 Number of investments
includes investments in
portfolio companies made by
SVF1 and joint ventures withexisting portfolio companies
from fund inception to
March 31, 2021. It does notinclude hedges related to theinvestments.
*5 As of May 11, 2021. The
committed capital of SBG has
been increased to $40 billion
as of June 23, 2021.

investment. Taken together, we believe our portfolio companies represent acompelling, well diversified portfolio.

Currently heldand private

85.7 bn

We also launched three SPACs during fiscal 2020. SVF Investment Corp., SVF
Investment Corp. 2 and SVF Investment Corp. 3 raised $604 million, $230 million

54.0

and $320 million, respectively. These three investment vehicles give us flexibility

10.8

to partner with fast-growing, IPO-ready technology companies of different sizes.

13.0

We believe we have several competitive advantages, including our:• Global team of investing and operating professionals, and their ability tosource compelling opportunities.
• Clear focus on companies leveraging data and AI.

66.7

61.9

6.7 bn5.1
Investment
cost

Cumulative
investment return(Fair value + Sale price)

Investment
cost

11.2 bn
1.6

6.2
5.0

• Unparalleled ecosystem of SoftBank Group companies.
• Deep local networks, and the operational expertise entrepreneurs need tobuild industry-leading businesses.

Cumulative
investment return(Fair value)

Notes:
1. For a certain investment that was once decided to be transferred from SBG to SoftBank Vision Fund 1 but
canceled afterwards, its unrealized gain / loss incurred for the period leading up to the decision to cancel thetransfer are not included.
2. Before deducting third-party interests, tax, and expenses

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SoftBank Vision Funds: In Focus

Disciplined and balanced approach to monetizations• Financial: If a public stock price has increased beyond our bull caseTo maximize value, we have developed a balanced and disciplined approach to

expectations, we would consider accelerating our monetization plans.

monetizing assets. As a portfolio company matures and experiences a liquidity• Diversification: If we have a large position in a stock, we may reduce someevent – such as an IPO or sale – we are positioned to begin monetizing ourof our position to diversify our public holdings even if we are bullish on thecompany.

holdings.

• Opportunistic situations: If we receive, for example, an inbound offer from

In our decision to monetize or continue holding a specific company, we

strategic buyers to acquire one of our portfolio companies.

consider a number of factors including:• Strategic: A changing competitive landscape or shifting geopolitical risks
might lead us to accelerate or postpone monetizing.

Disciplined monetization and distributions

Exit Strategy

Growth & Expansion

Public Listing
IPO, DPO (direct listing),
or SPAC

M&A

PORTFOLIOCOMPANIES

CapitalRaising

Geographic
Expansion

Strategic
Ecosystem
Synergies

Opportunistic

FinancialMarket Share

Monetization
Factors

SOFTBANKVISION FUNDS

PHASE 3

PHASE 1PHASE 2

Investing

Value Creation

Monetization

Note: The information provided herein is for illustrative purposes only and reflects the beliefs of SoftBank Investment Advisers as of the date of this report. There can be no assurance that the operations and / or processes of SoftBank
Investment Advisers, SoftBank Vision Fund 1 and SoftBank Vision Fund 2 described in this report will continue throughout the life of SoftBank Vision Fund 1, SoftBank Vision Fund 2 or any successor fund managed by SoftBank
Investment Advisers, and such processes and operations may change.

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Financial Section

Corporate Information

019

SoftBank Vision Funds: In Focus

Increasing distributions to LPs

flowing through to equity holders. We have returned $14.0 billion in preferred

We balance our desire to be long-term, patient investors with our goal to makeequity capital to date, including $9.5 billion in fiscal 2020, which has reduced

regular distributions to LPs. In fiscal 2020, distributions were driven by our public

our outstanding preferred equity capital to $21.2 billion. This means our 7%

positions and the sale of OSIsoft.

annual coupon payment has also declined meaningfully.
Once we have paid the coupon and returned contributions from preferred

The SoftBank Vision Fund 1 distribution waterfall outlines how proceeds areequity investors, we then start to distribute to our equity investors. In exchange

allocated among our LPs.
Each cascade is a pool. Once each pool is filled, distributions cascade down

for being placed at this later stage of the waterfall, equity investors receive all theto the next pool. This cascading waterfall is designed to provide each LP withresidual gains, excluding the performance fee to SoftBank Investment Advisers.

appropriate risk-adjusted returns.

Our equity investors, including SBG, have received $1.5 billion of capital returnand an additional $2.1 billion distribution of gains.

First, we pay any accrued preferred equity coupon to the LPs, which is 7%

Simultaneously to the distribution of gains to our equity investors,

annually on the outstanding preferred equity capital. Of the total $22.3 billion inproceeds distributed to LPs as of March 31, 2021, $4.7 billion has been used toperformance fees are paid to SoftBank Investment Advisers as the investment

pay the coupon to SoftBank Vision Fund 1’s preferred equity investors.

manager of SoftBank Vision Fund 1.
Over the next eight to 10 years of SoftBank Vision Fund 1, we believe

We then return contributions to the LPs, with preferred equity investors taking
priority over the equity investors. The effect of these distributions is to reduce

there will be many other opportunities to monetize our companies and makethe outstanding preferred equity capital, which in turn decreases SoftBank Vision

distributions as more of them publicly list or get acquired.

Fund 1’s coupon payment, and going forward, increases the portion of returns

Distributions have significantly reduced ongoing coupon payments
Inception to March 31, 2021

(A)

(B)

Fund Commitment

Drawn Capital*

Return of Capital*

Outstanding Capital*8

Equity$40.0 bn
$58.6 bn

$35.2 bn
$51.8 bn$14.0 bn
$1.5 bn$21.2 bn
$50.3 bn

Total

$98.6 bn$87.0 bn

$15.5 bn

$71.5 bn

Preferred Equity(C)6(B) - (C)7

*6 Drawn capital includes fund commitment drawn down through capital calls and return of recallable utilized contributions that were retained and reinvested, less return of recallable unutilized contributions. Drawn capital excludes any
drawdowns or returns of recallable contributions which fall due post March 31, 2021.
*7 Return of capital includes return of non-recallable contributions and return of recallable utilized contributions from financing distributions.
*8 Outstanding capital includes drawn capital less return of capital (as defined above).
Note: The information herein is presented solely for SoftBank Vision Fund 1. These highlights are provided solely for illustrative purposes and individual investors’ results may vary. Past performance is not necessarily indicative of future results.

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Financial Section

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020

SoftBank Vision Funds: In Focus

Economy of SoftBank Vision Funds
SVF1
Contributions by the limited partners are classified as “equity (performancebased distribution)” and “preferred equity (fixed distribution)” depending on theterms and conditions of distribution. Preferred equity is prioritized over equity
with regard to distribution and return of contribution. SBG participates in SVF1

Distribution waterfall

is entitled to receive management fees and performance fees,*9 each of which

As of March 31, 2021

Payment of preferred
equity coupons$4.7 bn

Return of preferred
equity contributions

1$14.0 bn

Preferred equity investors

is measured by reference to the investment activities of SVF1, in accordance

Return of equity
contributions

2

with the limited partnership agreement. Management fees are calculated by$1.5 bn

Equity investors

multiplying 1% per annum to equity contributions used to fund investments.

3

Performance fees are calculated using the specified allocation method when
SVF1 receives cash through disposition, dividend, and monetization of an

Payment of preferred
return on equity

4

Payment of
performance fees

Payment ofremaining gain

SBIA

Equity investors

Return of contributions and hurdle return

Committed capital5

As of March 31, 2021

$40.0 bn

Preferred equity (fixed distribution)$58.6 bn

Sharing gains above hurdle• A fixed rate of 7% on outstanding preferred equity
contributions is distributed in proportion to the investment
principal, regardless of the investment performance• Prioritized over equity upon distribution

SVF2

Equity (performance-based distribution)• Distribution to limited partners is fully dependent on
investment performance• Has lower priority during distribution, compared to preferred
equity interest$40.0 bn

SBG has committed to equity interests

SBG is the sole limited partner investing in
SVF2. Its total committed capital, which was$20.0 billion as of March 31, 2021, has been

$28.1 bn*10(48% of equity)$2.1 bn

Equity investors

investment.

$98.6 bn

$22.3 bn

Preferred equity investors

as a limited partner and contributes to equity.
SBIA, SBG’s wholly owned and independent subsidiary that manages SVF1,

Net proceeds distributed since inception$20.0 bnincreased to $40.0 billion as of June 23, 2021.

*9 Management fees andperformance fees received
are subject to clawback
provisions, which are
triggered under certain
conditions based oninvestment performance.
*10 Excludes committed capitalfor an incentive scheme
related to SVF1.

Notes:
1. Fixed distribution is subject to the terms and conditions of SVF1 Limited Partnership Agreement; there can be no assurance that the fixed distribution percentage will reflect actual results for any limited partner.
2. The information on this page is for illustrative purposes only. Any waterfall mechanics or capital distributions are subject in all cases to SVF1 fund documents.

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021

SoftBank Vision Funds: Portfolio Companies
As of March 31, 2021; excludes exited investments

SoftBank Vision Fund 1
Cumulative acquisition cost of investments: $74.9 billion*
Total fair value of investments: $120.7 billion*
Total of 81 investments

Listed securities

FintechCreditas Financial Solutions, Ltd.
Etechaces Marketing and Consulting Private Limited(PolicyBazaar)

HealthKonnect Medical and Health Technology
Management Company Limited(Ping An Medical and Healthcare)
Relay Therapeutics, Inc.

ConsumerGreensill Capital Pty Ltd.

Roivant Sciences Ltd.

Brainbees Solutions Private Limited (FirstCry)

Kabbage, Inc.

Vir Biotechnology, Inc.

Bytedance Ltd.

OakNorth Holdings Limited

Coupang, Inc.

One97 Communications Limited (PayTM)

Logistics

Esquared Capital Limited (Klook)

OneConnect Financial Technology Co., Ltd.

Delhivery Private Limited

Fanatics Holdings, Inc.

Pollen, Inc. (C2FO)DoorDash, Inc.

GetYourGuide AG

VNLife Corporation Joint Stock Company

Flexport, Inc.

Grofers International Pte. Ltd.

Zhongan Online P&C Insurance Co., Ltd.

Full Truck Alliance Co. Ltd.

Oravel Stays Private Limited (OYO)ZA Tech Global Limited (Zhongan’s affiliate)

FTA International Co., Limited(Full Truck Alliance’s affiliate)

OYO Technology & Hospitality (China) Pte. Ltd.

Frontier Tech

Truck Champion Limited (Full Truck Alliance’s affiliate)

Plenty United Inc.

Arm Limited

GoBrands, Inc. (goPuff)

PT Tokopedia

Brain Corporation

Local Services Holding Limited (Alibaba Local Services)

CloudMinds Inc.

Loggi Technology International

EdtechEnergy Vault, Inc.

Nauto, Inc.

Zuoyebang Education Limited

Fungible Inc.

Nuro, Inc.

Improbable Worlds Limited

Rappi Inc.

Enterprise

Light Labs, Inc.

Reef Global Inc.

Automation Anywhere, Inc.

Zymergen, Inc.

Zume, Inc.

Cambridge Mobile Telematics Inc.

1 other investment

OYO Hotels Japan

Proptech

Cohesity, Inc.
Cohesity APJ Pte. Ltd.

Health Tech

CLUTTER INC.

Globality, Inc.

CollectiveHealth, Inc.

Compass, Inc.

GPCY Holding (Gympass)

Good Doctor Technology Limited

Katerra Inc.

MapBox Inc.

Guardant Health, Inc.

Opendoor Technologies Inc.

Guardant Health AMEA, Inc.

View Inc.

*SBG consolidated basis
Note: SoftBank Vision Funds investments presented herein are solely for illustrative purposes. References to individual investments should not be construed as a recommendation of any specific investment or security.
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022

SoftBank Vision Funds: Portfolio Companies
As of March 31, 2021; excludes exited investments

WeWork Inc.

Transportation

GM Cruise Holdings LLC

WeWork Greater China Holding Company B.V.

ANI Technologies Private Limited (Ola)GRAB HOLDINGS INC.

WeWork Japan GK

Aurora Innovation Inc.

Guazi.com Inc.

Ziroom Inc.

Auto1 Group GmbH

Uber Technologies, Inc.

Fair Financial Corp.

Xiaoju Kuaizhi Inc. (DiDi)

Getaround, Inc.

SoftBank Vision Fund 2
Cumulative acquisition cost of investments: $6.7 billion*
Total fair value of investments: $11.2 billion*
Total of 44 investments

Consumer

Listed securities

JOB AND TALENT HOLDING LIMITED

GoForward, Inc.

MindTickle Inc.

Karius, Inc.

Redis Labs Ltd.

Pear Therapeutics, Inc.

SendBird, Inc.

QuantumPharm Inc. (XtalPi)

Standard Cognition, Corp.

ScriptDash Inc. (Alto Pharmacy)
Seer, Inc.

Baron App, Inc. (Cameo)
Chengxin Technology Inc. (DiDi Grocery)

FintechTessera Therapeutics, Inc.

Keep Inc.

eToro Group Ltd.

Vividion Therapeutics, Inc.

Lenskart Solutions Private Limited

Klarna Holding AB

Manticore Games, Inc.

1 other investment

Logistics

Memphis Meats, Inc.

Berkshire Grey, Inc.

OrderMark, Inc.

Frontier Tech

Flock Freight, Inc.

Tempo Interactive Inc.

Guangzhou Xaircraft Technology Co., Ltd.

Full Truck Alliance Co. Ltd.

Whoop, Inc.

Patsnap Limited

Shipbob, Inc.

Qualtrics International Inc.

EdtechProptech1 other investment

Zhangmen Education Inc.

KE Holdings Inc. (Beike)

Happy_seed (Cayman) Limited (VIPThink)

Health Tech

Sorting Hat Technologies Pvt. Ltd (Unacademy)

Biofourmis Holdings Pte. Ltd.

Transportation

EDDA Healthcare and Technology Holding Limited

Tier Mobility GmbHEnterprise

ElevateBio LLC

Voyager Group Inc. (DiDi AV JV)

Behavox Ltd.

Encoded Therapeutics, Inc.

*SBG consolidated basis
Note: SoftBank Vision Funds investments presented herein are solely for illustrative purposes. References to individual investments should not be construed as a recommendation of any specific investment or security.
SoftBank Group Corp. ANNUAL REPORT 2021

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Financial Section

Corporate Information

023

Arm: Business Strategy

Reaping the Returns from Investing for the Long Term
Leading the world in semiconductor technology• Increase royalty revenue per chip by increasing value where it can provide

Arm is a global leader in the development of semiconductor technology andmore technology (graphics processors and machine learning processors) oris central to the pervasive computing that is shaping today’s connected world.

more valuable technology (one that increases performance and security);

Arm’s processor technology is the world’s most widely licensed and deployedsemiconductor design of its kind and is used in virtually all smartphones, themajority of tablets and digital TVs, and a significant proportion of all chips withembedded processors. 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 market leadership in emerging technology areas including
autonomous vehicles, IoT, and augmented reality headsets;• Introduce new business models to change competitive landscape, forexample, by directly licensing its technology to OEMs and cloud companies.

Reaping the returns on investment
After years of accelerated investment, in fiscal 2020, Arm started to see

Arm’s business modelincreasing revenue growth as its new products have started to come to

Arm licenses processor designs to semiconductor companies that incorporate

market. This is despite the COVID-19 pandemic, and the majority of its

the technology into their computer chips. Licensees pay an up-front fee tocustomers working from home for the entire fiscal year.

gain access to our technology, and a royalty on every chip that uses one of ourArm’s technology royalty revenue grew 16.7% year-on-year due to:technology designs. Typically, the royalty is based on the selling price of the chip.

1. The ramp of 5G smartphones sales has been much greater thanEach Arm design is suitable for a wide range of end applications and can be

4G. As smartphone chip sales normally account for over 50%

reused in a variety of chip families to address multiple markets. Each new chipof Arm’s royalty revenue, this ramp has been a big benefit forfamily generates a new stream of royalties. An Arm design may be used in manyArm.
2. The rapid global rollout of 5G networks by operators has

different chips and may ship for more than 25 years.

driven Arm’s royalty revenue as many basestations andInvesting for the long term

wireless network equipment are based on Arm processors.

In our fast-paced world, new applications, device categories and markets are

3. The beginnings of the ramp of Arm-based server chip.

continually emerging, many of which require advanced semiconductors to

All the number of chips is currently low, it is big

provide their capabilities. In contrast, it can take many years to develop theincrease on the prior year and is expected totechnology that is used in these new devices. Arm is investing today for products

continue to ramp over the next few years.

that consumers and enterprises will start using in 5-10 years’ time. Since being
acquired by SBG in 2016, Arm has significantly increased investment in R&D toensure that it can develop technology suitable for all these new opportunities.
Arm has been investing to develop new processor technology to:
Simon Segars• Maintain its market position in areas where it is already strong, such as

CEO, Arm Limited

smartphones, consumer electronics, and embedded computing;

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024

Arm: Business Strategy

Sparking the world’s potential

Arm’s technology non-royalty revenue (technology licensing revenue andsoftware and services revenue) declined 1.7% year-on-year due to weakness

Arm is hiring brilliant engineers from all over the world and is bringing themearly in the year due to uncertainty regarding the impact of the pandemic, which

together to create the new technology that will spark the world’s potential.

was offset later in the year by:

In fiscal 2020, Arm increased its R&D headcount by 11.0% year-on-year, as

1. Recently introduced products such as the Neoverse range of processors forit continues to develop more advanced technology and to further expand its

the data center, and Ethos machine learning processors that are taking AI

product portfolio. Arm is confident that consumers will continue to want smarter

everywhere.

devices for themselves and their families; enterprises will want to offer more

2. New customers including an increase in the number of start-ups building
their first products around Arm technology.

sophisticated products and services using AI algorithms to better match theirofferings to their customers. Arm wants its technology to provide the spark that

During the year, Arm signed over 160 license deals, which is much higher thanenables consumer and enterprises to fulfill their ambitions.

its historical run rate. In addition, multiple high-value deals did not contributemuch revenue to fiscal 2020 and will yield the majority of revenue in future

Arm-based chip shipments*1

periods.
It takes our customers time to develop complex system-on-chips, and solicenses signed today are not expected to yield royalty revenue for another 2-3
years. However, if the chips are commercially successful, they can bring additional
royalty revenue streams that may last for years, and even decades, to come. Mostof Arm’s royalty revenue growth in fiscal 2020, is therefore due to licenses signed

Cumulative licenses*2(Billions)
30.0

25.0

2,500

1,931

billion25.0

licenses

2,000

20.0
1,500
15.0

in 2017 or earlier.

1,000

Since 2020, it was widely reported that some OEMs where struggling to

10.0

source the semiconductor chips needed for their products. For example, some
automotive companies had to pause production due to lack of chips. Part ofthis problem was caused by the very strong demand for 5G smartphones andnetworking equipment. Some chip manufacturers prioritized chips for thesemarkets, resulting in shortages elsewhere. As Arm has a very high share of chips
going into smartphones and wireless connectivity equipment, Arm benefitted

500

5.0

0

1990

2000

2010

2020 (CY)*1 Based on royalty reports received by Arm from its customers during eachyear. Adjusted to include any catch-up chip shipments if initial royalty
reports did not include all Arm-based chip shipments.

0

1990

2000

2010

2020 (FY)*2 Adjusted to remove licenses that are no longer expected to yield futureroyalty revenue.

from the higher chip sales in these areas.
Entry into agreement for sale of all shares in Arm with NVIDIA
In September 2020, the Company entered into a share purchase agreement with NVIDIA, whereby the Company will sell all of theshares in Arm in a transaction valued up to $40 billion. See pages 78 and 79 for details.

SoftBank Group Corp. ANNUAL REPORT 2021

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025

Message from Our CFO

Demonstrating Our Ability to Deliver and Validating Our Strategy
The pandemic has highlighted our strength of beinga strategic investment holding company

Results of the ¥4.5 trillion program

The world underwent significant changes in fiscal 2020 due to the COVID-19
pandemic. The stock market has been highly volatile due to a variety of factors
including the initial spread of the novel coronavirus and its negative effects,

Financial
improvements¥1 trillion in total
repayment ofbonds and bankloans

∙ Lower corporatebond yields

Returns toshareholders¥2 trillion ofshare
repurchases*2∙ Rise in share price

Growthinvestments

Investments
through SVF2

∙ Furtherdiversification of theasset portfolio∙ Decline in LTV(FYE2019: 17.9%
FYE2020: 12.4%)

Original plan

the economic stimulus measures by governments around the world, and theprospect of the resumption of economic activity. Under these circumstances,¥4.5
trillion

we posted consolidated net income*1 of ¥4,988 billion, a record high for any*1 Net income attributable toowners of the parent*2 Amount of share repurchasetotaled ¥2.5 trillion, including¥500 billion authorized prior
to the ¥4.5 trillion program
and repurchased between
March 16, 2020, and June 15,
2020.

∙ Reduced NAV
discount

company in Japan, driven by the investment businesses particularly SoftBank
Vision Funds. In addition, the equity value of our holdings grew to ¥29.8 trillion(as of March 31, 2021) despite the large-scale asset monetization. I believe thatthe efforts of each Group company contributed to this result amid the adverse

Excess¥1.1
trillionconditions imposed by the pandemic. While we are pleased with the strong
performance of the investment businesses, we also acknowledge the importanceMarch 31, 2020) consisted of highly liquid, high-quality listed stocks.

of ensuring that we sustain this trend going forward.

We always seek to allocate capital in a well-balanced manner to the

Carried out our commitment by completing the¥4.5 trillion program

three purposes: new investments, shareholder returns, and financial

In March of last year, just before the start of fiscal 2020, SBG’s stock price fell byholding company. While we focused on shareholder returns and financial

more than half amid deteriorating market conditions caused by the COVID-19

improvements in this program, we managed to monetize ¥1.1 trillion

chaos, although there was no significant change in our fundamentals. This inin excess of the initially planned ¥4.5 trillion and were able

turn caused considerable concern among our shareholders and many otherto allocate the proceeds to new investments and cash

stakeholders. In response to this situation, in the same month, we announced

reserves for future investments, which also contributed

a program to sell or monetize up to ¥4.5 trillion of our assets and to use theto our consolidated net income.*1

improvements to enhance corporate value as a strategic investment

proceeds to repurchase up to ¥2 trillion of the common stock and apply the

Our share repurchases during the period fromrest for financial improvement (the “¥4.5 trillion program”). Since April 2020,
we swiftly executed carefully planned programs while minimizing the impact
on the market. By the end of September 2020, we completed the monetization
based on the program, with the proceeds totaling ¥5.6 trillion. The success waspartly due to the better-than-expected turnaround in market conditions, but also
largely because nearly 80% of our equity value of holdings (¥26.3 trillion as of

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Yoshimitsu Goto
Board Director, Corporate Officer,
Senior Vice President,
CFO, CISO & CSusO
Head of Finance Unit
Head of Administration Unit
SoftBank Group Corp.

Message from Our CEO

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Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

026

Message from Our CFO

March 2020 to May 2021 totaled ¥2.5 trillion,*2 including ¥500 billion announced

stock price and credit spread were also greatly affected. I feel that we managed

prior to the ¥4.5 trillion program. I believe this share repurchase on a scale

to satisfy and reassure our investors through the completion of this program, andunparalleled in the world at a time when our stock price was declining directly

more importantly, I am proud that we have demonstrated our ability to executesignaled our thoughts on the level of our stock price at the time to the market

our business and our commitment to carry out our strategy as articulated.

*3 See page 65 for theassumptions used in thecalculation of net debt andequity value of holdings.

and was reflected in the performance of the stock price thereafter. Moreover, we
repurchased a total of ¥392.5 billion of corporate bonds in Japan and overseas andrepaid ¥610 billion in bank loans to provide returns to our creditors.

SoftBank Vision Funds’ breakthrough diversified ourportfolio

As a financial indicator of a strategic investment holding company, we place

The equity value of our holdings came in at ¥29.8 trillion as of March 31, 2021, up

the highest importance on loan-to-value (LTV), which is calculated as net debt

¥3.5 trillion from the previous fiscal year-end, more than offsetting the decrease individed by the equity value of holdings.*3 Our finance policy is to maintain LTV

value through the large-scale asset monetization. On top of this, we made progress

below 25% under normal circumstances. As a result of completing the ¥4.5

in diversifying our asset holdings. The value of Alibaba, in which we invested moretrillion program, our LTV ratio was 12.4% and our cash position was ¥2.9 trillion

than 20 years ago, has represented a large portion of the value of our equity

as of March 31, 2021, far exceeding the ¥1.6 trillion in bond redemptions overholdings. Investors have often pointed out that this proportion is too high. In fiscal

the next two years, providing us with further sufficient financial buffer.

2020, due to the strong growth in the value of SoftBank Vision Funds’ equity

I am pleased that we were able to return more to our stakeholders than expectedholdings, the relative proportion of Alibaba showed a year-over-year decline fromand achieve positive financial results amid volatile global markets, during which our

49% to 43% as of March 31, 2021, leading to the diversification of our portfolio.

Equity value of holdings grew despite the large scale monetization

Further diversifying portfolio; Alibaba’s proportion declined as the valueof SoftBank Vision Funds increased

Excluding asset-backed finance¥29.8 trillion＋¥3.5¥26.3 trillion

trillion¥12.7 trillion

Increase inequity value,
etc.*4+ ¥8.0 trillion¥2.3 trillion

New andfollow-on
investments*5+ ¥1.6 trillion

Impact ofasset
monetization*6- ¥6.1 trillion¥13.0 trillion¥6.2 trillion¥3.9 trillion¥2.7 trillion¥0.2 trillion¥3.2 trillion¥2.7 trillion¥0.7 trillion
March 31, 2020

SVF1&2

Breakdown of¥3.5 trillion increase¥1.3 trillion

12%

3%

6%
8%

15%

43%

49%

9%
Investments inlisted stocks

1%
10%

OthersMarch 31, 2020

Table of Contents

5%

5%

10%

¥1.5 trillion¥2.7 trillion
Investments in listed stocks¥1.7 trillion
Others¥1.4 trillion
March 31, 2021

SoftBank Group Corp. ANNUAL REPORT 2021

Excluding asset backed finance

Message from Our CEO

Who We Are

4%21%*4 Increase in equity value, etc.:
Total change in the equity
value from March 31, 2020,
to March 31, 2021, less theamount of new and follow-on
investments and monetization*5 New and follow-on
investments: Total amountof new and follow-on
investments made by SBG and
its subsidiaries in FY2020*6 Impact of asset monetization:
Includes impact ofmonetization of ¥5.6 trillion
and an increase in other assetbacked finance (amendments
to some of the contracts andothers).

March 31, 2021

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

027

Message from Our CFO

We hope the asset mix will further improve and move closer to an optimal shape
as we continue to work on increasing the value of SoftBank Vision Funds.

Financial strategy for FY2021

Establish optimal financial strategy as an investment company

The value of SoftBank Vision Funds has increased because many of theirportfolio companies benefitted from the accelerated adoption of digital
services in the wake of the pandemic. Another factor is the investment style of
SoftBank Vision Funds. As they focus on investment in “unicorn” companies,
the probability of success tends to be higher than start-ups due to the shortertime horizon until publicly listing, although the timing of public listing and its
expected market value are unclear at the time of the investment. Having said
that, to maximize investment performance, it is essential to have a system inplace for investment decision-making, post-investment monitoring, and risk
management, as well as a strong organization to support these activities and the

Financial management to enablereproduction at investment
business on an expanded scale

Firmly keeping
financial policy
Manage LT V below 25% in normal
times (upper threshold of 35% evenin times of emergency)
Maintain funds covering bondredemptions for at least the next 2 years
Secure recurring distribution anddividend income from SoftBank
Vision Funds and other subsidiaries

Establish a cycle of investment andrecovery
Procure funds to capture attractive
investment opportunities

ability to raise funds. We have experienced some difficulties in the past including
significant drops in the valuation of some of our portfolio companies. Learningfrom these experiences, we are now working to create a mechanism that will

synchronizing it with business management will minimize the loss of investment

enable us to generate recurring profits in our investment business.

opportunities and ultimately maximize our corporate value. As we establish
this cycle, I expect the recovered funds from the various mature investment

Replicating the growth of the investment businesses onan expanded scale while maintaining financial discipline

businesses to start contributing more than the funds supplied by the holding

We have set our financial strategy for fiscal 2021 as “firmly keeping financial

financing, we would still choose to add a moderate level of leverage to further

policy” and “financial management to enable reproduction at investment business

reduce the loss of investment opportunities.

company. However, even if we can manage our investment funds without debt

on an expanded scale.” Our financial policy remains unchanged. In other words,

In fiscal 2021, we expect to communicate with various markets, as we will

we continue to adhere to the three key policies, as the cornerstone of our defense,

have major bond redemptions coming up and need to raise strategic funds toof keeping LTV below 25% under normal circumstances, maintaining funds that

expand and reproduce our investments at a greater scale. I would like to use thiscover at least two years of bond redemptions, and securing recurring distribution

as an opportunity to meet many investors and communicate our strengths andand dividend income from SoftBank Vision Funds and other subsidiaries.

strategies to increase our corporate value and hope to broaden the investor base
who will support us.

With regard to the new policy of “financial management to enablereproduction at investment business on an expanded scale,” we will establish acycle of investment and recovery and raise funds to capture attractive investment

Strengthening ESG perspectives throughout the Group

opportunities. We believe that having a system in place that enables the timely

In fiscal 2020, to further strengthen ESG initiatives, we built an internal

execution of a variety of financing methods using appropriate leverage while

foundation and enhanced information disclosure. In June 2020, I was

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028

Message from Our CFO

appointed as Chief Sustainability Officer (CSusO), and we newly established thewe have reaffirmed that maintaining and preserving the global environment is

Sustainability Committee. Since then, we have gained a better understanding of

the foundation of the Group’s sustainability and growth, and in May 2021, we

the environmental, social, and governance initiatives that had been undertaken

established the Environmental Policy as a Group policy. We will continue to monitor

separately by each Group company, and begun establishing Group-wide policies

the progress of each Group company’s initiatives, promote information disclosure,and targets. In May 2021, to incorporate ESG perspectives into our investment

and reduce environmental burdens throughout the Group.
We are now at the stage of implementation to realize our ESG-related goals

process, we revised the Portfolio Company Governance and Investment
Guidelines Policy. We made it clear that both opportunities and risks arising fromand policies. In addition to further enhancing nonfinancial information disclosure,environmental and social factors should be evaluated within the investment andwe will strive to strengthen our ESG initiatives throughout the Group so that wemonitoring process. Both the stock and bond markets evaluate us from various

can report our progress to investors as appropriate.

angles including ESG perspectives. In the same way, we believe that proactively
encouraging our portfolio companies to take ESG initiatives will lead to an

Sustainability integration into investments

increase in the value of our assets over the medium to long term.

Initiatives made to dateIn particular, we have made significant progress in corporate governance. We
newly established the Nominating & Compensation Committee and improved
the gender diversity of the Board of Directors by appointing a female director.
Also, in November 2020, we made a big step forward in strengthening thesupervisory function of the Board of Directors by separating the management
decision-making functions from the business execution functions, which also

Under the corporate philosophy of “Information Revolution—Happiness for everyone,” we have
implemented environmentally and socially friendly investments and businesses.
ESG assessment has also been conducted in the investment process of SoftBank Vision Funds.
Sectorsubsequent efforts to improve the effectiveness of governance.

GM Cruise (SVF1)
DiDi (SVF1)

For reducing traffic accidents

Health Tech

Guardant Health (SVF1)
Vir Biotechnology (SVF1)
Seer (SVF2)
Karius (SVF2)

For accelerating the development of new
drugs, improving people’s well-being
through the prevention of diseases

EdtechZuoyebang Education (SVF1)
Zhangmen Education (SVF2)
VIPThink (SVF2)

For providing an educational
environment to more people at a lower
cost

We have been actively involved in contributing to the sustainable development
and resilience of local communities. In fiscal 2020, in response to the COVID-19
pandemic we were among the first to procure and provide protective gear andContribution

Transportation

increased the ratio of External Board Directors to 44%. As of June 2021, External
Board Directors now account for a majority of the Board as a result of our

Portfolio companies

antibody test kits to medical institutions and other places in need. In July 2020,
we established a nonprofit PCR test center to support the prevention of the
spread of the virus. In the future, we will continue to place importance on ourability to swiftly provide goods and services that are truly needed by society.

FY2021and setting targets for reducing greenhouse gas emissions. Against this backdrop,

Integrating the Company’s ESG approaches into the investment process
Revised “Portfolio Company Governance and Investment Guidelines Policy” (May 2021).
Evaluate opportunities and risks arising not only from a governance perspective but also fromenvironment and social perspectives, and use the results for investment decisions and postinvestment monitoring.

SoftBank Group Corp. ANNUAL REPORT 2021

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On the environmental front, our major subsidiaries have already taken proactive
measures to fight climate change, such as expanding renewable energy businesses

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Financial Section

Corporate Information029

Sustainability: Our Approach

Sustainability Vision“Help Shape the Next 300 Years for Our Future Generations and the Planet”“Information Revolution—Happiness for everyone.” Our corporate philosophy embodies our determination to make people happier, even to future generations 300 years from now.
To enable people live in harmony with the planet, we will live up to our responsibility as a leader in the Information Revolution to realize a sustainable society.

Sustainability principles
SBG sets SoftBank Group Sustainability Principles as a guideline for the Group to
appropriately advance sustainability activities. Based on the principles, we haveidentified material issues (“Strategic Material Issues”) reflecting the business

Step 1

Step 2

Step 3

Identification of issues

Materiality analysis

Identification of Material Issues

Identify social issues

Analyze the importance of social issues
to stakeholders and the Group

Identify the Strategic Material Issues
that the Group should address inthe society

characteristics and social demands of each Group company. We have also
autonomously.
Six activity themes – our direction
1. Drive sustainable growth and innovation in society by uniting wisdom andknowledge
2. Take responsibility by responding to emerging issues that come with technologicaladvancement
3. Ensure the growth of the future generations and our business by creating higher
quality employment for all
4. Leverage breakthrough technologies to resolve environmental issues, including
energy problems
5. Demonstrate highly transparent governance and integrity to win further trust of
our stakeholders
6. Maximize our potential as a group by joining forces with people around the world
to make a positive impact on society

Identifying material issues (“Strategic Material Issues”)
SBG classified issues to be addressed from two perspectives: the importanceto stakeholders and to the Group. Among these issues, we identified eight key
issues as Strategic Material Issues that should be addressed with priority. As forthe importance to the Group, issues in the major business sectors in which theGroup is engaged are analyzed to determine the order of priority.

Refer to external guidelines and theopinions of experts to identify social
issues in the social and businessenvironments surrounding the Group’s
main business sectors.

Identify Strategic Material Issues theGroup must address with a particularpriority.

Analyze importance from two
perspectives: “importance tostakeholders” and “importance to theGroup.”

Strategic Material Issues(Top priority)

Strategic Material Issues

See the respective pages for theeach Strategic Material Issues

Eight Strategic Material Issues to be prioritized
Climate strategy
Human capital
Corporate governance development
Anti-corruption
Innovation management
Privacy and data security

Labor
standards

Social supply chain
Corporate citizenship
Human rights

Importance to stakeholders

defined six activity themes for the Group to promote its sustainability initiatives

Market opportunity
Sustainable finance
Access tocommunication

Pollution and resources

Climate strategy
Pages 32-35
Human capital development
Page 37
Corporate governance
Pages 42-51
Anti-corruption
Page 55
Privacy and data security
Page 51

Risk management

Environmental supply chain
Health and safety(Top priority)

Importance to the Group
Note: Colors indicate the six activity themes.

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Sustainability: Our Approach

Sustainability governance structure

Sustainability in investment activities

In promoting sustainability, SBG has appointed Yoshimitsu Goto, Board Director,

SBG believes that promoting the sustainability of the portfolio companies will

Corporate Officer, Senior Vice President and Chief Financial Officer (CFO), as

lead to greater returns from investment activities. Based on this belief, we

its Chief Sustainability Officer (CSusO). Our aim is to achieve more competitive

revised our “Portfolio Company Governance and Investment Guidelines Policy”

management by examining risks and opportunities from both financial andin May 2021 to clarify that not only governance, but also environmental andnon-financial perspectives. We also established the Sustainability Committee,social factors should be integrated into the selection of investments and thewhich is chaired by the CSusO and composed primarily of Corporate Officers

post-investment monitoring process. Similarly, we continue to examine ways ofas its members, to collaborate with related departments and major subsidiaries

establishing best practices at the Company to ensure greater returns without

depending on the agenda. The Committee regularly discusses important ESG

sacrificing the speed of investment decision-making.

(Environmental, Social, and Governance) issues surrounding the Group and its
promotion policies, by taking into account the requests from our stakeholders.

Major external ESG evaluations*1

The content of the discussions are reported to the Board of Directors.
During fiscal 2020, the Committee met in October 2020 and March 2021.
Discussions covered future action policies regarding an active response to climatechange; responsibility for human rights; responsibility for corporate transactions,

The Group’s major sustainability-related evaluations are as follows.
Selection for ESG indices
Indices

including the supply chain and portfolio companies; the incorporation of ESG
into the investment process; and other important issues for the Group.

Company names

FTSE4Good Index Series

SBG
SoftBank
Z Holdings

FTSE Blossom Japan Index

SBG
SoftBank
Z Holdings

Sustainability governance structure
Board of Directors of SBG
Instruct / supervise

ReportSustainability Committee
Chairperson: Chief Sustainability Officer (CSusO)

Instruct /supervise

Secretariat
Sustainability Promotion Group
Related departments

Cooperate

MSCI Japan
Empowering Women Index(WIN)
MSCI JapanESG Select Leaders Index*2

SBG
Z Holdings*3

SoftBank
Z Holdings

Respond /reportExternal evaluations

Major subsidiaries

SBG and SoftBank received an A- score in climate change from CDP, which
evaluates corporate initiatives for the environment.

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Financial Section*1 As of June 30, 2021
*2 THE INCLUSION OF SoftBank Group
Corp. and Z Holdings Corporation IN
ANY MSCI INDEX, AND THE USE OF
MSCI LOGOS, TRADEMARKS, SERVICEMARKS OR INDEX NAMES HEREIN, DO
NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION OF
SoftBank Group Corp. and Z Holdings
Corporation BY MSCI OR ANY OF ITS
AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVEPROPERTY OF MSCI. MSCI AND THE
MSCI INDEX NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF
MSCI OR ITS AFFILIATES.
*3 THE INCLUSION OF SoftBank Corp.
and Z Holdings Corporation IN ANYMSCI INDEX, AND THE USE OF MSCILOGOS, TRADEMARKS, SERVICEMARKS OR INDEX NAMES HEREIN, DO
NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION
OF SoftBank Corp. and Z Holdings
Corporation BY MSCI OR ANY OF ITS
AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVEPROPERTY OF MSCI. MSCI AND THE
MSCI INDEX NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF
MSCI OR ITS AFFILIATES.

Corporate Information

031

Sustainability: Environment

Global Environment Conservation Initiatives Looking to the Next 300 Years
We are actively addressing climate change and enhancing energy efficiency in order to maintain and preserve the global environment.

Environmental Policy formulation

Reducing greenhouse gas emissions

SBG formulated the Group’s “Environmental Policy” in May 2021, under the

Each Group company has set a goal to reduce greenhouse gas emissions from its

recognition that maintaining and preserving the global environment serves asbusiness activities and is working to achieve it.

the foundation for the Group’s sustainability and growth. In accordance withthis policy, the Group engages in business activities in consideration of the global
environment.
Key points in our Environmental Policy (summary)Comply with laws and regulations concerning environmental conservation
Recognize the impacts and the associated risks and opportunities of climate change,
and work to mitigate and adapt to climate change
Strive to reduce environmental burdens by reducing greenhouse gas emissions,
reducing energy and resource use, and establishing a procurement network thattakes the natural environment into consideration*1 Fiscal 2020
*2 Electricity from virtually 100%
renewable energy sources
using non-fossil certificateswith renewable energy
designation

Major subsidiaries’ greenhouse gas reduction goals (excerpt)
SoftBank

Carbon-Neutral 2030 Declaration

Z Holdings

Announcement of the medium- and long-term environmental
goals for the entire Z Holdings group during fiscal 2021

Yahoo Japan

100% conversion to renewable energy for the electricity usedduring fiscal 2023

Arm

Commitment to achieve Net-Zero Carbon by 2030

See the “Environmental
Initiatives” of the “Sustainability”
section on our website for the fulltext of our Environmental Policy.

See the “ESG Data / External
Evaluation” of the“Sustainability” section on our
website for environment-related
data.

Carbon-Neutral 2030 Declaration SoftBank
In May 2021, SoftBank announced its “Carbon-Neutral 2030 Declaration” as

Strive to prevent or reduce negative impacts on the environment and biodiversity

its commitment to reducing its greenhouse gas emissions to virtually zero by

Strive to disclose information on the environment and promote active
communication with stakeholders

2030.
SoftBank purchases electricity from SB Power, a subsidiary operating theelectricity retail business, and has converted 30%*1 of the electricity used at

Responding to climate change

its mobile phone base stations to electricity from virtually renewable energy

The Group recognizes that addressing climate change is a global and urgent

sources.*2 This ratio is planned to reach at least 50% insocial issue and strives to reduce greenhouse gas emissions associated with ourfiscal 2021 and 70% in fiscal 2022. SoftBank is also working

business activities. We are also actively engaged in addressing climate change

to convert the source of electricity for other facilities andthroughout society in cooperation with our major subsidiaries and related

equipment to renewable energy. Moreover, SoftBank isorganizations.

contemplating direct procurement of electricity generated by
SB Energy, an SBG subsidiary operating a renewable energy
business. Along with transitioning to renewable energy,
SoftBank aims to achieve carbon neutrality by 2030 byapplying AI, IoT, and other cutting-edge technologies to savepower consumption in its facilities and equipment.

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Management: The Foundation Supporting Our Growth

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Sustainability: Environment

For early transition to 100% renewable energy

Z Holdings

Yahoo Japan

Investment activity initiatives

Z Holdings plans to announce the medium- and long-term environmental

Climate change investor framework membership andgoals for the entire group during fiscal 2021.

investment case study SBIA

Yahoo Japan, a major subsidiary of Z Holdings, declared the “FY2023

SBIA, which manages SVF1 and SVF2, joined the Climate

100% Renewable Energy Challenge” in January 2021. While many companies

Change Framework One Planet*4 as founding members

aim to transition to 100% renewable energy for the electricity used in theirof the Private Equity working group in November 2020.

business activities over 20 to 30 years, Yahoo Japan is undertaking thisThrough its membership in this initiative, SBIA is looking

challenge in the short period of approximately three years.

to support efforts to advance the understanding of climate
related risks and opportunities within investment portfolios.

Arm commits to achieve Net-Zero Carbon by 2030 Arm

SBIA has made a number of investments which are

Arm has declared its commitment to achieving net-zero carbon emissions*3

having a positive impact on climate change. These include

in its operations by 2030. Arm is seeking to achieve absolute reductions

Tier Mobility (SVF2), a fully carbon-neutral sharing mobility

wherever possible in direct and indirect greenhouse gas emissions to achieve

service, Energy Vault (SVF1), a creator of long-duration

this goal before we consider investments in offsetting initiatives.

renewable energy storage solutions, and GM Cruise (SVF1), a developer ofElectricity scooter mobility service provided by Tier Mobility

zero-emission electric self-driving cars.

As part of this, Arm is strategically promoting the use of renewableelectricity, and has committed to the use of 100% renewable electricity
across the Arm estate by 2023. As of March 31, 2021, over 70% of electricity

Promoting decarbonization through collaboration

consumption from the Arm global estate was from renewable energy,

Participation in Japan Climate Initiative SBG SB Energy

including the headquarters office in Cambridge, U.K.

SBG and SB Energy have participated in the Japan
Climate Initiative (JCI)*5 since its foundation in 2018.

*3 To reduce absolute greenhousegas emissions including carbon
dioxide in line with a 1.5°C
temperature pathway, andbalance any residual emissions
with carbon sequestration
offsets.

*4 See the official website fordetails of the Climate Change
Framework One Planet.

Both companies exchange opinions with companies,
local governments, and nongovernmentalorganizations that actively take measures to fight climate change, and apply
the JCI’s activities in the Group’s overall efforts to decarbonize. In addition, byendorsing JCI’s announcements (declarations, public comments, and opinionads), we stress the urgency of climate action to society.
Endorsed JCI announcements
Arm headquarters office in Cambridge, U.K.

SoftBank Group Corp. ANNUAL REPORT 2021

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October 2018

Japan Climate Action Summit Declaration

May 2019

A statement of “Japan needs an ambitious long-term strategy to show
Japan’s decarbonization leadership to the world”

January 2021

Renewable energy target of 40–50% by 2030

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section*5 The JCI was formed tostrengthen the communicationand exchange of informationand opinions by companies,
local authorities, and NGOs
that are actively fighting
climate change. Together
with CDP Japan and WWF
Japan, the Renewable
Energy Institute, founded by
Masayoshi Son, serves as thesecretariat. See the official
website for details.

Corporate Information

033

Sustainability: Environment

Product development-based initiatives

Collaboration with renewable energy-related initiatives SBG
In 2011, SBG, together with local governments, established Renewable

Next-generation lithium-ion battery development

Energy Council*6 and Government-Designated Cities Renewable Energy

Since 2018, SoftBank has worked with multiple

Council.*7 Led by 34 prefectures throughout Japan and the local governments

research institutes including NIMS,*8 universities,of 20 cities, these two alliances share information to promote the wider use

manufacturers, and other companies in an effort toof renewable energies and make policy recommendations to the Japanese

research and develop battery material technologies

government. As their secretariat, SBG is involved in the administration of bothand to exchange information on such. Having

alliances as a neutral party.

advanced the development of a large capacity yet

SoftBank*6 Renewable Energy Council
works together with local
governments from 34
prefectures and corporations
throughout Japan. See theofficial website for details(available only in Japanese).

lightweight lithium-ion battery with a high specificInitiatives for enhanced energy efficiency

energy density, in March 2021, together with

The efficient and sustainable use of energy and resources is critical for

U.S.-based Enpower Greentech, we successfully

environmental conservation. The Group engages in reducing the use of energy

produced a prototype battery with a specific energy

and resources in its business activities and developing and providing products

density of 450 Wh/kg, approximately twice that of existing models.

Lithium-ion battery (prototype)jointly developed by SoftBank
and Enpower Greentech

In addition, SoftBank established the SoftBank Next-generation Battery

and services that contribute to improved energy efficiency.

*7 Government-Designated Cities
Renewable Energy Council
works together with local
governments from 20 cities
and corporations throughout
Japan. See the official website
for details (available only inJapanese).
*8 National Institute for Materials
Science

Lab in June 2021. This lab evaluates and verifies a variety of next-generation

Business activity initiatives
Energy-saving measures at new head office building

batteries from around the world with the aim to become a platform for
SBGadvancing the development of next-generation batteries by promoting

othersAlong with SoftBank and other Group companies, SBG relocated its

research and development and early commercialization going forward.

headquarters to the Tokyo Portcity Takeshiba Office Tower in 2020-2021. As
a cutting-edge smart building, the new office building employs LED lighting

Initiatives to enhance employee awarenessthat uses motion

The Group has clearly stated the following environmental considerations insensors to automaticallythe SoftBank Group Code of Conduct and works to ensure that all the Groupadjust brightness,

employees are fully aware of them through training and other measures toautomaticallypromote a greater understanding.

operated blinds, andStrive to provide innovative solutions that have a positive impact on theenvironment and society.

other energy-saving

Lead globally and act locally to reduce and improve our impact on theenvironment.

technologies.

Conduct our business activities with consideration for the global
environment and the effective utilization of limited natural resources.
New Head Office Building: Tokyo Portcity Takeshiba Office Tower

The Group also encourages employees to consider the environment as part ofregular business and requires them to control and reduce greenhouse gas emissions
and to consider environmental protection when handling industrial waste.

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Sustainability: Environment

SB Energy

See the website of SB Energy for details.

Toward a decarbonized society through widespread use of renewable energy

SB Energy, which promotes renewable energy businesses in Japan and overseas, aims to decarbonize the Group and society by further expanding the use ofrenewable energy.

Promoting widespread use of renewable energy throughthree businesses of Watts, Bits, and Mobility

Bits: Stable power supply utilizing AI and IoT
Stabilizing the supply-demand balance is a particularly critical challenge forEngaged in the renewable energy-based power

renewable energy, where the amount of power supply is easily affected bygeneration business (Watts) since its establishment

weather. SB Energy is working to ensure a stable supply of electricity derived fromin 2011, SB Energy has expanded its scale to boast

renewable energy sources by adjusting the power supply-demand balance throughone of the largest power generation capacities in

the integration of AI, IoT, and other technologies with its energy business.

* As of March 31, 2021

Japan today. More recently, SB Energy has been
generation to power use, based on renewable

Mobility: Enabling power usage at any time and placethrough storage systems

energy. This move includes expansion of its business domains to include an energy

In order to effectively use renewable energy, which experiences supply fluctuations

platform building business (Bits) that combines AI, IoT, and renewable energy,

due to weather, temporal and geographical constraints must be overcome; in otherand a services business (Mobility) that combines power storage systems andwords, power must be available regardless of time or location. The use of energy

renewable energy. Going forward, SB Energy will utilize its advantages afforded

storage technologies that enable power to be carried and stored is effective for thisby developing, owning, and operating renewable energy power plants as the

purpose. Superior storage systems are also essential for electric vehicles (EV), for

upstream side with the aim of creating new businesses that take a bird’s-eye viewwhich widespread use is expected in the future. SB Energy promotes more effectiveof midstream and downstream power application.

use of renewable energy-sourced power through the development of businessworking to provide total solutions, from powermodels that utilize energy storage systems.

Watts: Renewable energy generation and supply inJapan and abroadEver since the domestic launch of its first solar power plant operations in 2012,
SB Energy has continued to drive the renewable energy-based power generation

Renewable energy projects of SB Energy in Japan*
Solar power plant
Wind power plantbusiness in Japan and abroad. Today, SB Energy operates 48 power plants* inPower generation
capacity(48 power plants)

Japan with a total generation capacity of 671MW,* equivalent to the annual
power consumption of approximately 216,000 standard households in Japan.
Outside Japan, SB Energy has secured 326,000ha* of land in Mongolia andAnnual power
consumption ofobtained approximately 50MW* of generation capacity. In addition to conventional

216,000

large-scale power plants, SB Energy has also expanded into new businesses that

Total:

671MW*

standard households

directly supply power from small-scale power plants to businesses.

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Sustainability: Society

Our Social Efforts as a Leader in the Information Revolution
As a leader in the Information Revolution, we will fulfill our responsibilities to society by contributing to the resolution of social issues that have emerged asa result of the development of information technology and the advance of globalization. We will also contribute to the creation of an environment where
all people are respected and can take on challenges in their own way.

Promoting diversity and inclusion
Creating a workplace that embraces diversity

parallel with developing its internal systems, SoftBank is working toward theSBGcreation of a more comfortable working environment for everyone.

SBG believes the driving force for the growth of the entire Group is each
employee being able to fully express his or her individuality and abilities. By

Promoting flexible work styles

advancing the hiring and promotion to management positions of individuals

SBG respects the fundamental rights of its employees while striving to ensure

regardless of their gender or nationality, we are creating a workplace rich inequal opportunities as well as occupational safety and good health. With thediversity where female employees and employees of different nationalities cangoal of achieving our vision of “becoming a corporate group needed most by

play an active role.

people around the world,” we are working to create an environment in which
all Group employees can maximize their capabilities.

Ratio offemale employees

Ratio offemale managers

42.3%

23.9%

Average years ofservice

8.8 years
Women 8.9 years

Men*1
Ratio of foreign
employees

6.2%Work-style reform

SBG

SBG respects the work-life balance of its employees and has establishedvarious systems to ensure the balance. We also take various measures toreduce long working hours, including the use of technologies.

Creating employment and workplace where people with disabilities
can play an active role

SBG•

Company-wide introduction of Work from Home•

Company-wide introduction of the super flextime system*2

or after they join the Company and aims to create a positive working•

environment for everyone so that each employee, regardless of disability, can•Promoting the understanding of foreign employees and sexual•

minorities such as LGBTQ SoftBank*1 Ratios and years are as ofMarch 31, 2021.
*2 Flextime system with no core
work hours*3 RPA stands for robotic process
automation, a technologythat automates businessprocesses and tasks carriedout on computers previously
performed by humans.
*4 A private-public initiative
aimed at revitalizing
consumption and changing
lifestyles by moving the end of
the workday forward on thelast Friday of each month.

Examples of measures to promote work-style reform

SBG makes no distinction between potential employees in the hiring process

work to the best of his or her capabilities.

See the “ESG Data / External
Evaluation“ of the “Sustainability”
section on our website for data
related to human resources anddiversity.

Attendance management linked to the office entry-exit management system using
facial recognition
Periodic delivery of attendance alert e-mails using an RPA*3 system (understandingof the attendance registration status, long-working-hour alerts based on apredictive simulation of working hours, and encouragement of taking annual leave)
Promotion of “Premium Friday”*4

SoftBank conducts educational activities through training sessions and internal
events, including the Diversity Week program, to promote understanding
among employees who work together. By continuing these activities in

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Sustainability: Society

Creating a workplace environment where employees canwork in good health

SBG expects each of its employees to be a professional and strive to excel in

SBG is working to identify and reduce occupational health and safety risks in

his or her field. In our hiring and career development activities, we are looking

order to maintain a workplace environment where all employees can work infor people who share our vision unwavering since our founding, who thrive on

good physical and mental health.

change, and who can continually improve themselves.

Identifying and addressing labor risks

Human resources strategy

Hiring professionals

SBG

SBG

To prevent the occurrence of occupational accidents and ensure compliance

SBG hires professionals based on the “Three Core Competencies” – Smart,with established labor practices, SBG conducts labor risk assessments, which

Professionalism, and Relation. Our basic policy is to hire the best person forinclude regular employee stress checks, monitoring and forecasting of longthe position regardless of age, gender, nationality, and other factors and weworking hours, and checks for harassment as part of employee satisfaction

are committed to a more diverse workforce.

surveys. As part of its effort to optimize working hours for employees, we also
simulate monthly and annual working hours for individual employees by using“Three core competencies” we seek in our employees:

an attendance tracking system, take action in response to employees expected

High level of expertise in relevant field

to work long hours, and continuously report working hours to management.

Professionalism

Safety measures in the event of an emergency, including a pandemic

SBG

SBG has systems in place to ensure the safety of employees wheneverRelation

an emergency strikes, including natural disasters such as an earthquake

Communication skills required toengage in business with leading
companies in the world

or a typhoon and pandemics. With the government declaring a stateof emergency in response to the spread of COVID-19 in April 2020, we

Smart
Capacity to think logically and tackle
unprecedented challenges using
numbers and reasoning

required all employees in principle to work from home. Further showing ourcommitment to creating an environment in which employees can work with

Self-driven career development

peace of mind, we introduced measures designed to prevent the spread of

SBG has established a system for self-driven career development so

the virus in August 2020, including periodicthat each employee can enhance his or her “three core competencies”

saliva PCR tests and a temperature-sensing

aforementioned. We provide internal education and training services,entry system. With an eye toward ongoing

including English conversation courses, and also allocate education budgets

changes in how our employees work, we

to each department so that employees can independently select and attend

are promoting the development of an office

external training programs of their choice. We have also established a dual-

automation system allowing work at any
time or place, the use of cloud computing

Facial-recognition entry-exit systemwith a temperature-sensing function

SBG

employment system, under which employees may engage in a second job
to promote personal growth through diverse experiences, and support

See page 51 for details on
information security.

employees in the realization of their career goals.

for systems and information, and enhanced
security measures.
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Sustainability: Society

Respect for human rights

Human Rights Policy

Under the corporate philosophy of “Information Revolution—Happiness

SBG has established its Human Rights Policy that acts as the minimum standard

for everyone,” SBG aims to properly develop and improve the power of thewith which all officers and employees of the Group must comply. The policy

Information Revolution toward happiness for humanity.

mainly calls for respecting the human rights of all stakeholders, treating them

Accordingly, we recognize the importance of respecting human rights for all

See our website for the full text of
our Human Rights Policy.

with dignity and respect, always complying with laws and regulations, and acting

people in every aspect of our corporate activities. With this in mind, we havewith the utmost respect for international human rights principles. The policy alsoestablished our Human Rights Policy, which stipulates basic matters pertaining tostrictly forbids discrimination, harassment, forced labor, and child labor.

human rights. We periodically update this policy to conform to changing social
priorities.

Key points in our Human Rights Policy (summary)

Human rights promotion structure
Initiatives related to the protection and promotion of human rights require crossdepartmental collaboration. SBG has accordingly established a system in which
specialized teams in various fields, including human resources, compliance, risk

We support the international standards regarding human rights such as theInternational Bill of Human Rights, while promoting group-wide measures to respecthuman rights.
We will comply with human rights laws and regulations and respect international
human rights principles to the fullest extent possible.

management, and sustainability, work together to take appropriate actions.

We will not engage in any acts of discrimination, directly or indirectly, on the basisof characteristics that define an individual’s identity.

The Group companies have also established a system to stimulate internal

We will not engage in harassment of any kind.

communication regarding human rights, so that human rights risks specific to

We will not engage in any human rights violations or illegal activities, including
forced labor, child labor, slave labor, or human trafficking.

each business domain can be identified and appropriately responded to.

We will strive to maintain a safe, sanitary, and healthy working environment.
We will respect fundamental labor rights.

Improving awareness of human rights
In order to disseminate our Human Rights Policy to executives and employees

We will strive to pay competitive, above-living-wage monetary compensation andbenefits.

and raise awareness of human rights, SBG conducts ongoing education andWe will identify human rights risks and work to reduce them.

enlightenment through training and other programs. We also hold periodic
roundtable discussions between the human resources department and employeeswith the goal of creating a better human resources system and a stronger

SBG will continue to raise awareness of human rights and work to ensure respect

corporate organization. In addition, we require our external stakeholders,for human rights throughout the Group.

including investees and business partners, to act in compliance with all laws andregulations related to human rights.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

038

Sustainability: Society

Contributing to local communities and society

Supporting founders

Using Pepper to support next-generation education SBG

Accelerator to support underrepresented founders

SBG launched the “Pepper Social Contribution Program” using the humanoid

Emerge accelerator program

robot Pepper in order to help resolve social

SBIA launched Emerge, an accelerator to support and invest in underrepresented

issues and support programming education forfounders with the aim of creating a more equitable Tech and VC ecosystem.

elementary and junior high school students.

In addition to workshops, mentoring, and other interactive sessions with the

Support for next-generation educational activities

Group’s executives, Emerge helps connect businesses with investors throughusing Pepper is not limited to Japan, but is also

showcase events.

being implemented in countries around the world,
including the U.S., Canada, and China.

Elementary and junior high school
students participating in the program*5 Our second Emerge cohort
was launched in Europe inJune 2021.
*6 African-American, Latinx, andNative-American founders.
*7 As of June 30, 2021

First Emerge cohort (from March to May 2020)*5
Program highlights

Founder demographic

Leveraging the Group’s strengths to support disaster relief and

Mentors: 40

Female: 9reconstruction efforts The Group

Accelerator curriculum (hours): 80

Black: 7

As a corporate group based in Japan, which is prone to earthquakes andInvestors attended the showcase: 150 +Latinx: 2

other natural disasters, the Group is actively and continuously providing
Investment fund to support underrepresented founders in the U.S.

support to affected areas.

SB Opportunity FundThe year 2021 marks the 10th anniversary of the Great East Japan
Earthquake, and we remain engaged in a wide range of activities to support

The Group aims to address systemic racism and create a more diverse andthe people in the areas impacted by that disaster. The Group will continue toinclusive society. As part of our efforts to achieve this aim, we establishedprovide assistance to the affected areas.

the $100 million SB Opportunity Fund to invest in businesses led by

Major reconstruction support activities following the Great East Japan
Earthquake

underrepresented founders*6 in the U.S. Through this fund, we have invested
in 54 companies.*7 The fund intends to reinvest a major portion of profits into
new investments in companies led by founders of color.

Recovery activities immediately after the disaster
Lending mobile phones and satellite phones to people in the affected areas
free of charge

Website for the joint projectof Yahoo! Japan and LINE
“The Power to Overcome:
10 Years After the Great
East Japan Earthquake”(available only in Japanese)

Supporting the resolution of local issues by setting up support stations in theaffected areas
Using online services to raise funds and gather/disseminate information
Support for fostering the next generation and creating businesses for the
future of the affected areas

SoftBank Group Corp. ANNUAL REPORT 2021

SoftBank special website
for reconstruction support
from the Great East Japan
Earthquake(available only in Japanese)

Table of Contents

Founders of fund portfolio companies (partial)

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

See the official website for detailsof the “SB Opportunity Fund.”Financial Section

Corporate Information

039

Sustainability: Our Response to COVID-19

Addressing the Changing Situation of the Pandemic
In response to COVID-19, SBG is offering a range of support and initiatives in line with changing situations. These include the provision of supplies to
medical personnel and the establishment of a PCR testing center. In addition, each Group company is leveraging its business characteristics and particularstrengths to address social issues arising from the pandemic.

From April 2020 to March 2021

From July 2020 to present

Supplying personal protective equipment

Establishing and operating PCR testing facilities

SBG

SBG

With the goal of eliminating the shortage of personal protective equipment (PPE)SBG established Coronavirus Inspection Center*2 in July 2020 to provide safe,brought on by the spread of COVID-19, SBG quickly procured PPE leveraging our

high-quality saliva PCR tests to local governments and private companies

network, and provided to the national government, local governments, medical

affordably at actual cost price. SBG also began offering saliva PCR testing services

institutions, and private companies for no profit.

to individuals in February 2021 using HELPO, a healthcare app provided by a
SoftBank group company, HEALTHCARE TECHNOLOGIES, allowing individuals to

Supplies provided (cumulative through to March 31, 2021)
Masks: approx. 350 million units• Face shields: approx. 410,000 units• Gowns: approx. 10 million units•

Protective clothing: approx. 1 million units• Nitrile rubber gloves: approx. 2 million units• Goggles: approx. 85,000 units•

easily apply for the test online.

Approx.

at the testing facility in Chiba Prefecture. With this new capacity, we aim to
infection routes and to the development of vaccines by pharmaceutical companies.

1.7 million
PCR tests to date(as of June 30, 2021)

Providing antibody testing kits

SBG

From June 2021 to present

We have provided approximately 330,000* testing kits free of charge to1

medical institutions so that the state of the infection in Japan could be quickly

Establishing large-scale vaccination sites

assessed. By supplying these kits, we

SBG established a large-scale vaccination site at WeWork Nogizaka and began

contributed to the understanding

the vaccination of healthcareof the infection status particularly

workers, Group employees, shop staff

of healthcare workers. Moreover,and call center staff in June 2021.

the disclosure of results served

By expanding the number ofto understand the infection

vaccination sites including SBG’ssituation in Japan and the study ofTakeshiba Headquarters andSBG

FUKUOKA PayPay Dome, plans are incountermeasures to the pandemic.

place to vaccinate approx. 250,000

Distributing antibody testing kits

people, including local residents.

SoftBank Group Corp. ANNUAL REPORT 2021

*2 The company name waschanged to SB Coronavirus
Inspection Center in January
2021. See its official website
for details (available only inJapanese).

In June 2021, we also started offering genome analysis of COVID-19 variants
contribute to Japan's central government and local governments in understanding

From May 2020 to present*1 Cumulative through June 30,
2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Vaccination site at WeWork Nogizaka

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

040

Sustainability: Our Response to COVID-19

Ensuring fast delivery of accurate and reliable information
Yahoo Japan Agoop

Initiatives in collaboration with SVF1 portfolio
companies SVF1

Given the uncertainty and unpredictable nature of the situation surrounding

Working together, SoftBank Vision Funds companies aim to amplify one

the pandemic, accurate and reliable information plays an important role inanother’s strengths and accomplish more than they could on their own. In 2020,

maintaining social infrastructure. Yahoo Japan and Agoop are aggregating

many companies in the SoftBank Vision Funds ecosystem mobilized in responseand disseminating information that demonstrates the power of information

to the social COVID-19 pandemic issue*7. Below are three examples of where

technology. Such initiatives actively contribute to the rational choice of action

SVF1 portfolio companies have joined forces to create even greater impact.

and countermeasures to prevent the spread of the virus.

*3 As of April 30, 2021
*4 Provided only in Japan*5 From April 3, 2020, to August
31, 2020*6 From March 9, 2020, to June30, 2020*7 See “Response to COVID-19”
on our website for more details
of initiatives by SVF1 portfolio
companies.

In the U.S., REEF Technology and Uberare partnering to deliver needed goods toconsumers. REEF converted parking lots into
fulfillment centers and launched its online“Stock-Up Mart” on UberEats’ technology
platform. UberEats manages last-mile deliveryof goods to consumers.

Information services and functions being provided(excerpt)*3
Yahoo Japan*4∙ Yahoo! News: Release of a summary on new COVID-19 cases∙ Yahoo! MAP: Provision of a live map showing particularly
crowded areas and COVID-19 vaccination map∙ Yahoo! JAPAN app: Added function allowing the user to receive
up-to-date information from local governments

Grab, Tokopedia, and OVO jointly contributed
IDR1 billion to Indonesia’s Taskforce forAccelerating Handling of COVID-19. The funds
were used to purchase staple foods, whichwere distributed by Grab’s motorcycle taxis.

Agoop∙ An analysis of changes in the flow of people amid the spread of
COVID-19 is available for free on a special website.

Map data © Mapbox © OpenStreetMap © Zenrin Co., Ltd. © Yahoo Japan

Yahoo! MAP: Live map
showing particularly
crowded areas.

Deferment of fee payment and support for online
learning SoftBank

In the U.S., Flexport and Clutter are working
together to move PPE to the frontlines.
Flexport is handling shipping and Clutter isproviding storage facilities and delivering thisprotective gear to healthcare workers.

In addition to enforcing infection prevention measures at stores and otherlocations, SoftBank is extending the payment deadlines for customers finding it
difficult to pay their communications bills due to the pandemic. Furthermore, inorder to support the learning environment of students forced to take online classes
due to COVID-19, the company offered free of charge up to 50GB of additional
data for customers age 25 or younger.*5 It also provided at no charge the “Smart
Coach” online lesson service to schools that were temporarily shuttered.*6

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

041

Sustainability: GovernanceSee “Corporate Governance” on our website for the latest information.

Ensuring Effective Governance Is Vital to Realize Our Vision
Based on SBG’s Corporate Governance Report filed with the Tokyo Stock Exchange on June 25, 2021.

Basic views
The Company is guided by a fundamental concept of “free, fair, and innovative” and a corporate

regulations; the SoftBank Group Charter to share the Group’s fundamental concept andphilosophy of “Information Revolution—Happiness for everyone.” The Company aims to be a

corporate philosophy, the Group Company Management Regulations of the SoftBank Group toprovider of essential technologies and services to people around the world while maximizing

set out the management policy and management framework for the Group companies, and theits corporate value. SBG recognizes that it is vital to maintain effective corporate governance

SoftBank Group Code of Conduct to be complied by the Company and its Board Directors andto realize this vision. We continue to strengthen governance by formulating the charter andemployees.

SBG’s path to strengthening governance
1994

Registered as an OTC stock with the Japan Securities Dealers Association(1998 Listed on the First Section of the Tokyo Stock Exchange)

1995

Appointed the first foreign national Board Director

1999

Invited a Board Director from outside the company (equivalent to a current
External Board Director) transitioned to a pure holding company

2002

External Board Directors system introduced in the Commercial Code (currently
the Companies Act)
Started livestreaming of earnings results briefings

2003

Started livestreaming of the General Meeting of Shareholders

2006

Companies Act enacted

2012

Introduced a Corporate Officer system

2015

Japan’s Corporate Governance Code entered into force

2019

Established the Group Risk and Compliance Committee

2020

Formulated the Portfolio Company Governance and Investment Guidelines
Policy; increased the number of External Board Directors from two to four;
appointed the first female Board Director; established the Nominating &Compensation Committee and the Sustainability Committee; appointed a
CSusO and CRO*1; revised the Board of Directors structure (separation of the
management decision-making function from the business execution function)

2021

Corporate governance system

SoftBank Group Corp. ANNUAL REPORT 2021

External Board Director /External Audit & Supervisory Board member

General Meeting of Shareholders
Nominating & Compensation Committee
Ratio of External Board Directors

2/3Elect / dismiss
members of Audit &Supervisory Board

Elect / dismiss Board Directors

Elect /
dismiss
Independent
AuditorRecommend

Separating themanagement
decision-making
from the businessexecution

ReportBoard of Directors
Ratio of External Board Directors*2

Audit

5/9

ReportReportElectmembers /delegate
partialauthority

Investment
CommitteeElectchairperson /delegate
partialauthority

ReportReportElect
chairperson /supervise

Brand
Committee

Added environmental and social items to the above policy; achieved a 55.6%
external ratio of Board Directors and a 100% external ratio of Audit &Supervisory Board members*1 Chief Risk Officer

Internal Board Director

Elect
chairperson /superviseGroup Risk andCompliance
Committee

Sustainability
Committee

Call / reporton execution
situation

Audit & Supervisory
Board

Supervise /elect /
dismiss

4/4

Cooperate

Brief
ReportIndependent
AuditorCooperate

Ratio of External Audit &Supervisory Board members*3

Representative
Director,
Corporate Officer,
Chairman & CEO
Report

Brief

Brief /
cooperate

Audit & Supervisory
Board OfficeInternal Audit
OfficeCorporate Officers*2 Of the five External Board Directors, four are designated as Independent Officers.
*3 Of the four External Audit & Supervisory Board members, three are designated as Independent Officers.

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

042

Sustainability: GovernanceApproach and policies on Group management

Board of Directors

SBG is working to increase NAV (Net Asset Value) while building a corporate group that

SBG’s Board of Directors is composed of members with a wealth of knowledge and experienceengages in a wide range of businesses in the information and technology sectors through direct

in business management and a global perspective, and is not limited by nationality, ethnicity,

investment (including investments made through subsidiaries), including that in Group companies

gender, or age. The maximum number of Board Directors is set at 11*5 under the Articles ofsuch as SoftBank, Arm, and Alibaba, and investments in investment funds such as SVF1 andIncorporation. As of June 23, 2021, the Board of Directors consisted of nine members (five of

SVF2. In this process, each portfolio company will seek self-sustained growth, while SBG, as awhom are External Board Directors) and includes two foreign nationals and one woman.

strategic investment holding company, will support each portfolio company in its increase ofAgenda items for discussion at Board meetings are set forth in the Board of Directors

corporate value by promoting collaboration among the portfolio companies by leveraging theRegulations. The Board discusses statutory matters, as well as critical matters related to businessGroup network.

management, such as investments, loans, and borrowings that exceed a certain amount.

Furthermore, SBG will confirm, or make reasonable efforts to ensure, that each portfolio

In addition, Special Directors are put in place for the purpose of prompt decision-making incompany operates under standards of environmental, social, and corporate governance that are

accordance with Paragraph 1, Article 373 of the Companies Act, and matters related to disposal

substantially equivalent to the standards set forth in the Portfolio Company Governance andand acceptance of important assets and borrowing in a significant amount are resolved by theInvestment Guidelines Policy.

Board of Special Directors meeting.
*5 The maximum number of Board Directors was changed from 15 to 11 as resolved at the 41st Annual General Meeting of Shareholders
on June 23, 2021.

Portfolio Company Governance and Investment Guidelines Policy
In January 2020, SBG formulated its Portfolio Company Governance and Investment Guidelines Policy
to clarify the standards related to the corporate governance of portfolio companies that should beconsidered when SBG and its subsidiaries*4 consider an investment. This policy covers a wide range ofimportant corporate governance issues such as a portfolio company’s board composition, founder andmanagement rights, rights of shareholders (including matters on super-voting shares), and mitigation ofpotential conflicts of interest. The policy sets forth general principles and allows for each investing entity
to exercise discretion with certain limitations. Each investing entity is required to monitor the corporate
governance of each portfolio company and regularly report the results to SBG. Annual assessments ofcompliance with this policy were reported to SBG’s Board of Directors in January 2021. Moreover, in
May 2021 SBG revised this policy to go beyond corporate governance to include environmental andsocial items with respect to a series of processes from investment screening through post-investment
monitoring to annual assessment.
*4 Includes SVF1 and investment subsidiaries managed by subsidiaries of SBG.

SoftBank Group Corp. ANNUAL REPORT 2021

Summary of results of the Board of Directors evaluation
From November 2020 to April 2021, SBG evaluated the overall effectiveness of the Board of
Directors in the following manner.
Subjects

All Board Directors (Executive Board Directors and External Board Directors) and Audit & Supervisory
Board members

Evaluation
methodAn independent organization was employed to conduct questionnaires and interviews withsubjects including the composition and operation of the Board and its support systems

Evaluation
results

Confirmed the overall efficacy of the Board

Comments
from theevaluators

Table of Contents

Message from Our CEO

Who We Are

Important matters to be fulfilled by the Board of Directors: Discuss management strategy andplanning; establish and supervise internal control systems; supervise conflicts of interest; andmanage and supervise Group companies and portfolio companies
Matters to be further strengthened by the Board of Directors:∙ Enhanced reports for the entire Group status (such as risk status) and means of supervising
conflicts of interest∙ Improvement of Board of Directors’ meeting materials (including enrichment of informationnecessary for considering and discussing the agenda)∙ Necessity of ensuring the effectiveness of oversight related to the nomination and remunerationof Board Directors and senior management within the Nominating & Compensation Committee

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

043

Sustainability: Governance

Board Directors

Skill matrix of Board Directors and Audit & Supervisory Board members
SBG believes it is important for Board Directors and Audit & Supervisory Board members

Representative Director,
Corporate Officer,
Chairman & CEO

who participate in the Board of Directors to have a wide range of viewpoints andMasayoshi Son

experience, as well as a high level of expertise, to ensure the Board maintains diversity
and engages in active discussions and decision-making. As of June 23, 2021, the skill

Number of shares held in SBG:

matrix (skill set desired by SBG) of the Board Directors and Audit & Supervisory Board

460,161 thousand shares

members was as follows.

Board Director,
Corporate Officer,
Senior Vice President,
CFO, CISO & CSusO

Areas of expertise particularly expected by SBG (up to three areas)
Name

Board
Director

Corporate Banking /management
M&A

Academic
Finance /Law /Technology
background
Accounting GovernanceDiversity

Yoshimitsu Goto

Masayoshi Son
Yoshimitsu Goto

Number of shares held in SBG:

1,078 thousand shares

Ken Miyauchi

Board Director

Kentaro Kawabe

Ken Miyauchi

Masami Iijima
Yutaka Matsuo
Lip-Bu Tan

Number of shares held in SBG:

2,532 thousand shares

Keiko Erikawa

Board Director

Kenneth A. Siegel

Kentaro Kawabe

Maurice Atsushi Toyama
Audit &
Supervisory
Board
Yuji Nakata
memberSoichiro Uno

Sep 1981
Jan 1996
Oct 2005
Apr 2006
Jun 2015
Sep 2016
Jun 2017
Mar 2018
Nov 2020

Founded SOFTBANK Corp. Japan (currently SoftBank Group Corp.), Chairman & CEO
President & CEO, Yahoo Japan Corporation (currently Z Holdings Corporation)
Director, Alibaba.com Corporation (currently Alibaba Group Holding Limited)
Chairman of the Board, President & CEO, Vodafone K.K. (currently SoftBank Corp.)
Director, Yahoo Japan Corporation (currently Z Holdings Corporation)
Chairman and Executive Director, ARM Holdings plc
Chairman & CEO, SoftBank Group Corp.
Chairman and Director, Arm Limited (to present)
Representative Director, Corporate Officer, Chairman & CEO,SoftBank Group Corp. (to present)
Apr 2021 Board Director, Founder, SoftBank Corp. (to present)

Apr 1987
Jun 2000
Oct 2000
Apr 2006
Jul 2012
Oct 2013
Jun 2014
Jun 2015
Jun 2017
Apr 2018
Jun 2020
Nov 2020

Feb 1977
Oct 1984
Feb 1988
Apr 2006
Jun 2007Jun 2012
Jun 2013
Apr 2015
Apr 2018
Jun 2018
Apr 2021
Dec 1996
Sep 1999
Aug 2000
May 2009
Apr 2012

Sep 2018
Oct 2019

Message from Our CEO

Joined Japan Management Association
Joined SOFTBANK Corp. Japan (currently SoftBank Group Corp.)
Board Director, SOFTBANK Corp. Japan (currently SoftBank Group Corp.)
Executive Vice President, Director & COO, Vodafone K.K. (currently SoftBank Corp.)
Representative Director & COO, SoftBank Mobile Corp. (currently SoftBank Corp.)
Director, Yahoo Japan Corporation (currently Z Holdings Corporation)
Representative Board Director, Senior Executive Vice President, SoftBank Corp.
(currently SoftBank Group Corp.)
President & CEO, SoftBank Mobile Corp. (currently SoftBank Corp.)
Board Director, SoftBank Group Corp. (to present)
President & CEO, SoftBank Corp.
Chairman, SoftBank Corp. (to present)
Director, Dennotai Corporation
CEO, Dennotai Corporation
Joined Yahoo Japan Corporation (currently Z Holdings Corporation)
Representative Director, GyaO Corporation (currently GYAO Corporation)
Corporate Officer, Chief Operating Officer, President of Media Business Group,
Yahoo Japan Corporation (currently Z Holdings Corporation)
President and Representative Director, President Corporate Officer, CEO, Yahoo Japan
Corporation (currently Z Holdings Corporation)
Board Director, SoftBank Corp. (to present)
President and Representative Director, President Corporate Officer, CEO, Yahoo Japan
Corporation (to present)
Executive Director, ZOZO, Inc. (to present)
President and Representative Director, Co-CEO, Z Holdings Corporation (to present)
Board Director, SoftBank Group Corp. (to present)

0.2 thousand shares

Jan 2020
Mar 2021
Jun 2021

Who We Are

Management: The Foundation Supporting Our Growth

Number of shares held in SBG:

Table of Contents

Joined The Yasuda Trust and Banking Co., Ltd. (currently Mizuho Trust & Banking Co., Ltd.)
Joined SoftBank Corp. (currently SoftBank Group Corp.)
Head of Finance Department, SoftBank Corp. (currently SoftBank Group Corp.)
Director, Vodafone K.K. (currently SoftBank Corp.)
Corporate Officer, Senior Vice President, SoftBank Corp. (currently SoftBank Group Corp.)
President & CEO and acting owner, Fukuoka SoftBank HAWKS Corp. (to present)
Board Director, SoftBank Corp. (currently SoftBank Group Corp.)
Corporate Officer, Senior Vice President, SoftBank Corp. (currently SoftBank Group Corp.)
Corporate Officer, Senior Vice President, SoftBank Group Corp.
Corporate Officer, Senior Vice President & CFO & CISO, SoftBank Group Corp.
Board Director, Senior Vice President, CFO, CISO & CSusO, SoftBank Group Corp.
Board Director, Corporate Officer, Senior Vice President, CFO, CISO & CSusO,
SoftBank Group Corp. (to present)*CISO: Chief Information Security Officer *CSusO: Chief Sustainability Officer

Jun 2018

Keiichi Otsuka

SoftBank Group Corp. ANNUAL REPORT 2021

As of June 23, 2021 (Numbers of shares held are as of March 31, 2021)

Growth Assets

Financial Section

Corporate Information

044

Sustainability: GovernanceIndependence standards and qualifications for External Board Directors

External Board Directors

SBG elects Independent External Board Directors in accordance with the independence criteria set

Independentby the Tokyo Stock Exchange. The Board elects Independent External Board Director candidates

External Board Director,
Independent Officer

who can contribute to increasing corporate value through their qualifications, ability, and deep
knowledge in their fields of expertise. SBG also elects candidates for their ability to actively

Masami Iijima

participate in constructive discussions and frankly express their opinions. SBG ensures adequate
independence of each of the External Board Directors, who bring a wealth of knowledge
Number of shares held in SBG:

and experience to the Board related to business management and other matters. Each ofthem actively participates in discussions at the Board meetings, and SBG makes management

Independentjudgments and decisions based on these discussions.

External Board Director,
Independent Officer

Yutaka Matsuo

Major activities or reasons for appointment of External Board Directors
Major activities or reasons for appointment

Attendance rate andattendance of Board of
Directors meetings for
FY2020

Activities

Makes remarks to support business judgments and decision-making based on his
extensive knowledge and broad experience in corporate management and governance,
acquired through his career in the management of a trading conglomerate with global
business development. Also, as Chairperson of the Nominating & Compensation
Committee, leads objective discussions from an independent standpoint and plays animportant role in consulting with the Board of Directors.

100%
14 of 14 meetings

Activities

Makes remarks to support business judgments and decision-making based on his
extensive knowledge and broad experience of AI and other technologies as a leading
expert in the field, acquired through his engagement in AI research over many years.
Also, as a member of the Nominating & Compensation Committee, expresses objective
opinions from an independent standpoint and plays an important role in consultingwith the Board of Directors.

100%
14 of 14 meetings

Activities

Makes remarks to support business judgments and decision-making based on his
extensive knowledge and broad experience in investment and corporate management,
acquired through his career in the management of an international venture capitalcompany specializing in the technology field.

100%
8 of 8 meetings

Reasons forappointment

Since founding KOEI Co., Ltd. (currently KOEI TECMO GAMES CO., LTD.), Ms. Erikawa
has played a vital role in developing and strengthening the business foundation of theGroup as a corporate manager and a finance manager, and therefore has extensive
knowledge and experience related to corporate management and technology. SBG
expects that she will use her wealth of knowledge and experience to supervise SBG
and offer advice and has therefore appointed her as an External Board Director for thefurther growth of the Group.

—

Reasons forappointment

After joining Morrison & Foerster LLP in August 1986, Mr. Siegel became Partner ofthe firm in January 1994 and thereafter Managing Partner of Morrison & Foerster
Tokyo Office (Morrison & Foerster Gaikokuho Jimu Bengoshi Jimusho) in August 1996.
Having engaged in corporate acquisitions, joint venture deals, and strategic alliances,
he has extensive knowledge and experience as a lawyer. Although he does not havemanagement experience, SBG expects that he will use his wealth of knowledge andexperience to supervise SBG and offer advice and has therefore appointed him as anExternal Board Director for the further growth of the Group.

—

Name

Masami Iijima

Yutaka Matsuo

Lip-Bu Tan

Keiko Erikawa

Kenneth A. Siegel*

1 thousand shares

As of June 23, 2021 (Numbers of shares held are as of March 31, 2021)

Apr 1974 Joined MITSUI & CO., LTD.
Apr 2006 Managing Officer, Chief Operating Officer of Iron & Steel Raw Materials and Non-Ferrous
Metals Business Unit, MITSUI & CO., LTD.
Apr 2007 Managing Officer, Chief Operating Officer of Mineral & Metal Resources Business Unit,
MITSUI & CO., LTD.
Apr 2008 Executive Managing Officer, MITSUI & CO., LTD.
Jun 2008 Representative Director, Executive Managing Officer, MITSUI & CO., LTD.
Oct 2008 Representative Director, Senior Executive Managing Officer, MITSUI & CO., LTD.
Apr 2009 Representative Director, President and Chief Executive Officer, MITSUI & CO., LTD.
Apr 2015 Representative Director, Chairman of the Board of Directors, MITSUI & CO., LTD.
Jun 2016 Director, Ricoh Company, Ltd. (to present)
Jun 2018 Board Director, SoftBank Group Corp. (to present)
Jun 2019 Director, Isetan Mitsukoshi Holdings Ltd. (to present)
Jun 2019 Counsellor, Bank of Japan (to present)
Apr 2021 Director, MITSUI & CO., LTD.
Jun 2021 Counselor, MITSUI & CO., LTD. (to present)
Apr 2002
Aug 2005
Oct 2007
Apr 2019
Jun 2019

Researcher, National Institute of Advanced Industrial Science and Technology
Visiting Scholar, Stanford University
Associate Professor, Graduate School of Engineering, the University of Tokyo
Professor, Graduate School of Engineering, the University of Tokyo (to present)
Board Director, SoftBank Group Corp. (to present)

Dec 1987
Oct 2008
Nov 2015
Apr 2019
Jun 2020

Founder and Chairman, Walden International, Inc. (to present)CEO, Cadence Design Systems, Inc. (to present)
Director of the Board, Hewlett Packard Enterprise
Director of the Board, Schneider Electric Corporation (to present)
Board Director, SoftBank Group Corp. (to present)

Number of shares held in SBG:

Independent
External Board Director,
Independent Officer

Lip-Bu Tan
Number of shares held in SBG:

Independent
External Board Director,
Independent Officer

Keiko Erikawa
Number of shares held in SBG:

94 thousand shares
External Board Director* Reasons for non-designation as an Independent Officer: Mr. Siegel concurrently holds positions with Morrison & Foerster Gaikokuho Jimu Bengoshi
Jimusho and Morrison & Foerster LLP. SBG did not designate him as an Independent Officer as the amount of compensation to be paid to these firms
in the future is yet to be determined, regardless of whether there are any transactions between SBG and those firms.

Kenneth A. Siegel

Jul 1978Apr 1994
Jun 2001
May 2007Jun 2013
Jun 2013
Jun 2014

Founded KOEI Co., Ltd. (currently KOEI TECMO GAMES CO., LTD.), Senior Executive Director
Director, foundation for the Fusion Of Science and Technology (to present)
Chairman and CEO, KOEI Corporation (currently KOEI TECMO AMERICA Corporation)
Head Director, Association of Media in Digital (to present)
Chairman, Representative Director, KOEI TECMO GAMES CO., LTD.
Chairman, Representative Director, KOEI TECMO HOLDINGS CO., LTD. (to present)
Board Director, TECMO KOEI EUROPE LIMITED (currently KOEI TECMO EUROPE LIMITED)(to present)
Apr 2015 Chairman Emeritus (Director), KOEI TECMO GAMES CO., LTD. (to present)
Jun 2021 Board Director, SoftBank Group Corp. (to present)

Aug 1986 Joined Morrison & Foerster LLP
Jan 1994 Partner, Morrison & Foerster LLP
Aug 1996 Managing Partner, Morrison & Foerster Tokyo Office (Morrison & Foerster
Gaikokuho Jimu Bengoshi Jimusho) (to present)
Jan 2009 Member of Executive Committee, Morrison & Foerster LLP
Jan 2009 Board Director, Member of Executive Committee, Morrison & Foerster LLP (to present)
Jun 2021 Board Director, SoftBank Group Corp. (to present)

Number of shares held in SBG:

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

045

Sustainability: GovernanceCorporate Officer system
SBG adopted a Corporate Officer system in July 2012 to further strengthen its business execution

Organizational chart

functions. In November 2020, SBG appointed new Corporate Officers along with its restructuring

As of July 1, 2021of the Board of Directors. This move served to clarify the individuals responsible for business

General Meeting of Shareholders

CEO Office

execution by separating the management decision-making function from the business execution

CEO Project Office

Board of Directors

function. As of July 1, 2021, SBG’s Corporate Officers were as follows.

Capital Management Department
Representative Director,
Corporate Officer, Chairman & CEO
Masayoshi Son

Corporate Officers

Audit & Supervisory Board

Global Business Unit

Finance Planning Department
Finance Unit

Corporate Officer, Executive
Vice President & COO
Head of Global Business Unit

Masayoshi Son

Marcelo Claure

Capital Market Department
Investor Relations Department

Audit & Supervisory Board members
Representative Director,
Corporate Officer,
Chairman & CEO

CFO OfficeGroup Management Department

Audit & Supervisory Board Office

Investment Planning Department
Principal Investment Department
Human Resources Department

Corporate Officer,
Executive Vice President

Board Director, Corporate Officer,
Senior Vice President,
CFO, CISO & CSusO
Head of Finance Unit
Head of Administration Unit

Rajeev Misra

Yoshimitsu Goto

Administration Unit

General Administration Department
Information System Department
Corporate Communications Office

Accounting Unit

Accounting Department
Tax Management OfficeCompliance Department

Corporate Officer,
Senior Vice President
Head of Accounting Unit

Kazuko Kimiwada

Corporate Officer,
CLO & GCO
Head of Legal Unit

Legal Unit

*CLO: Chief Legal Officer*GCO: Group Compliance Officer

CLO Office
Legal Projects Department
Corporate Legal Department

Tim Mackey

Risk Management OfficeInternal Audit Office

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Financial Section

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046

Sustainability: Governance

Audit & Supervisory Board members and the Audit & Supervisory Board

Audit & Supervisory Board members

Audit & Supervisory Board members attend Board of Directors meetings, allowing them to

Independent

monitor and verify decision-making by the Board and fulfillment of the Board’s obligation tosupervise the execution of duties by each Board Director. Moreover, to audit the execution ofduties by the Board Directors of SBG, Audit & Supervisory Board members receive regular reports
from and conduct interviews as necessary with Board Directors, employees, auditors of major

Full-time External Audit &Supervisory Board member,
Independent Officer

Certified Public Accountant,State of California, U.S.

Supervisory Board members (two full-time members and two part-time members) and is chaired

Number of shares held in SBG:

since June 2015. The Audit & Supervisory Board meets once a month, in principle. At thesemeetings attended only by full-time members are reported to part-time members. In addition,

Full-time External Audit &Supervisory Board member,
Independent Officer

the Audit & Supervisory Board explains details of the audit plan for each fiscal year, interim audit

Yuji Nakata

status, and audit results to the Board of Directors. Furthermore, the Audit & Supervisory Board
determines the appropriateness of reappointing the Independent Auditor each fiscal year.

Number of shares held in SBG:

Major activities or reasons for appointment of External Audit & Supervisory Board members

External Audit & Supervisory
Board member

Maurice Atsushi
ToyamaMajor activities or reasons for appointment

Soichiro Uno
LawyerBoard ofDirectors
meetings

Audit &
Supervisory
Board meetings100%
14 of 14
meetings

100%
13 of 13
meetings

Number of shares held in SBG:

External Audit & Supervisory
Board member,
Independent Officer

Activities

Makes remarks based on his extensive knowledge and experience as a
Certified Public Accountant, State of California, U.S.

Yuji Nakata

Reasons forappointment

Has extensive knowledge and experience related to corporate management
and risk management, having served as Representative Executive Officer anda risk management manager at financial institutions. SBG appointed him asExternal Audit & Supervisory Board member with the expectation that he willconduct audits from a fair, objective, and independent standpoint based on
his knowledge and experience.

——

Soichiro Uno*

Activities

Makes remarks based on his extensive knowledge and experience as a lawyer.

100%
14 of 14
meetings

100%
13 of 13
meetings

Reasons forappointment

Has extensive knowledge and experience as a Certified Public Accountant.
Although Mr. Otsuka does not have management experience other than as
an external officer, SBG appointed him as External Audit & Supervisory Board
member with the expectation that he will conduct audits from a professional
standpoint based on his knowledge and experience, and from a more
independent standpoint.

——

Keiichi Otsuka

Joined Nomura Securities Co., Ltd.
Executive Managing Director, Nomura Securities Co., Ltd.
COO, Nomura Asia Holding N.V.
Executive Managing Director, Nomura Holdings, Inc.
Senior Managing Director, Nomura Securities Co., Ltd.
Executive Managing Director, Nomura Holdings, Inc.
Representative Executive Officer and Deputy President, Nomura Securities Co., Ltd.
Executive Managing Director and Chief Risk Officer, Nomura Holdings, Inc.
Senior Adviser, Nomura Institute of Capital Markets Research
Full-time Audit & Supervisory Board member, SoftBank Group Corp. (to present)-

Attendance rate and attendance
for FY2020
Name

Apr 1983
Apr 2007
Apr 2007
Apr 2008
Nov 2008
Apr 2016
Apr 2017
May 2019
Apr 2020
Jun 2021

Independent

meetings, the audit policy and plan are formulated and details of various internal and external

Joined San Francisco office of Price Waterhouse (currently PricewaterhouseCoopers)
Certified Public Accountant, State of California, U.S.
Partner, PricewaterhouseCoopers Aarata
Full-time Audit & Supervisory Board member, SoftBank Corp.
(currently SoftBank Group Corp.; to present)

Maurice Atsushi
Toyamasubsidiaries, and other personnel. The Audit & Supervisory Board consists of four External Audit &by Maurice Atsushi Toyama, who has served as a full-time Audit & Supervisory Board member

As of June 23, 2021 (Numbers of shares held are as of March 31, 2021)

Sep 1977
Aug 1981
Jun 2006
Jun 2015

Apr 1988 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)
Jun 2004 Audit & Supervisory Board member, SoftBank Corp.
(currently SoftBank Group Corp.; to present)
Jun 2018 Director (Audit & Supervisory Committee Member), Dream Incubator Inc. (to present)
Jun 2019 Director (Audit & Supervisory Committee Member), Terumo Corporation (to present)

Independent

Keiichi Otsuka
Certified Public Accountant

Nov 1978Aug 1982
Jul 1998
Sep 2006
Jun 2016
Jul 2016
Jan 2017
Jun 2021

Joined Price Waterhouse Accounting Office
Registered as a Certified Public Accountant
Representative Partner, Aoyama Audit Corporation
Representative Partner, Aarata Audit Corporation(currently Pricewaterhouse Coopers Aarata LLC)
Audit & Supervisory Board Member, TBK Co., Ltd. (to present)
Representative of Otsuka CPA Office (to present)
Director, Shizuoka Bank (Europe) S.A. (to present)
Audit & Supervisory Board member, SoftBank Group Corp. (to present)

Number of shares held in SBG:-

* Reasons for non-designation as an Independent Officer: Mr. Uno concurrently holds a partner post at Nagashima Ohno & Tsunematsu. SBG did notdesignate him as an Independent Officer as the amount of compensation to be paid to the firm in the future is yet to be determined, regardless ofwhether there are any transactions between SBG and the firm.

SoftBank Group Corp. ANNUAL REPORT 2021

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Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

047

Sustainability: GovernanceIndependent Auditor
Status of audit by the Independent Auditor

Compensation for audits and other duties (fiscal 2020)

SBG concluded an independent audit agreement with Deloitte Touche Tohmatsu LLC based onCompensation for auditing Certified Public Accountants and other assistants

the Financial Instruments and Exchange Act. The names of the Certified Public Accountants who

Compensation for audit certification(Millions of yen)executed audit duties in fiscal 2020, the consecutive auditing period, the number of assistantsfor the audit duties, the policy for selection of the audit corporation, and evaluation of the audit
corporation by the Audit & Supervisory Board for the fiscal year are as follows.
Names of Certified Public Accountants who executed audit duties
Designated Limited Liability Partner and Engagement Partners: Masayuki Nakagawa, Naofumi Yamazumi,
Ryo Sakai, and Yusuke Masuda

SBG

Compensation for non-audit duties(Millions of yen)

770

16

Consolidated subsidiaries

1,728

333

Total

2,498

349

Note:
The non-audit duties for SBG mainly consist of the preparation of comfort letters when issuing corporate bonds. The non-audit duties forconsolidated subsidiaries of SBG mainly consist of the preparation of comfort letters when issuing corporate bonds.

Compensation to the same network as SBG’s auditing Certified Public Accountants andother assistants (Deloitte Touche Tohmatsu Limited) (excluding “Compensation for auditing

Consecutive auditing period
15 years

Certified Public Accountants and other assistants”)
Compensation for audit certification(Millions of yen)

Composition of the assistants who supported the audit duties
Certified Public Accountants: 23, Others: 32

Compensation for non-audit duties(Millions of yen)−76

Policy for selection of the audit corporation and evaluation of the audit corporation by

Consolidated subsidiaries

3,472

824

the Audit & Supervisory Board

Total

3,472

900

The Audit & Supervisory Board sets criteria for appropriately selecting an Independent Auditor andappropriately evaluating the Independent Auditor in the Audit & Supervisory Board Members Audit
Regulations. In accordance with such criteria, the Audit & Supervisory Board takes into account the system
to ensure the proper execution of duties by the Independent Auditor, the independency required by the
Independent Auditor, and its expertise, including the possession of worldwide network resources, anddetermines whether the reappointment of the Independent Auditor is appropriate each fiscal year. The
Audit & Supervisory Board has determined that reappointment was appropriate for fiscal 2020. If the Audit& Supervisory Board determines that reappointment is inappropriate, it considers other candidates for
Independent Auditor in accordance with such criteria, upon consideration of factors such as audits at othercompanies.
The Audit & Supervisory Board has resolved, as its decision-making policy of dismissal of or not
reappointing the Independent Auditor, that the Independent Auditor can be dismissed by the Audit &Supervisory Board with unanimity of Audit & Supervisory Board members when the Independent Auditor
corresponds to any of Paragraph 1, Article 340 of the Companies Act, and that, other than those cases
above, the Audit & Supervisory Board shall submit a proposal on dismissal of or not reappointing theIndependent Auditor to the Annual General Meeting of Shareholders when it is acknowledged that theexecution of appropriate audit is difficult due to the occurrence of an event that impairs the qualification or
independency of the Independent Auditor.

Note:
The non-audit duties for SBG mainly consist of advisory services for taxation and other matters. The non-audit duties for the consolidated
subsidiaries of SBG mainly consist of advisory services in connection with new businesses.

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SBG

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Message from Our CEO

Other material compensation for audit certification duties
Not applicable.

Reason(s) why the Audit & Supervisory Board gave its consent to the compensation of
the Independent Auditor, etc.
The Audit & Supervisory Board, based on the Practical Guidelines for Cooperation with Accounting Auditors
published by the Japan Audit & Supervisory Board Members Association, reviewed and examined the plandetails of the audit conducted by the Independent Auditor, the performance status of accounting audit
duties, and the basis for calculating compensation estimates, and from the results, has given the consent
prescribed in Paragraph 1, Article 399 of the Companies Act for the compensation paid to the Independent
Auditor.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

048

Sustainability: Governance

Cooperation between the Audit & Supervisory Board members, theIndependent Auditor, and the Internal Audit Office
The Audit & Supervisory Board members receive regular briefings from the Independent Auditor(Deloitte Touche Tohmatsu LLC) on the audit plan, quarterly reviews, audit results, and other matters.
The two parties also cooperate as necessary by exchanging information and opinions, among othermeasures. Furthermore, the Audit & Supervisory Board members receive briefings from the Internal
Audit Office, which is responsible for SBG’s internal audits, about the audit plan and the resultsGroup Risk and Compliance Committee (GRCC)The GRCC serves the purpose of supervising the risk management and compliance program of the Group,and holding ongoing discussions over their important issues, promotion policies, and related issues. The GRCC
is composed of three members including the chairperson (Corporate Officer, Chief Legal Officer, and Group
Compliance Officer Tim Mackey), who has been appointed by the Board of Directors, and two members (Board
Director, Corporate Officer, Senior Vice President, CFO, CISO & CSusO Yoshimitsu Goto, and Corporate Officer,
Senior Vice President Kazuko Kimiwada). The GRCC deliberates on matters related to the risk management andcompliance activities of SBG and its Group companies as set forth in the GRCC Management Regulations. The
committee’s agenda items and discussion results are reported to the Board on a regular basis (at least once peryear) based on the Board of Directors Regulations.

of internal audits performed on each department of SBG and its major subsidiaries. The two parties

Sustainability Committee

also cooperate as necessary by exchanging information and opinions, among other measures.

The Sustainability Committee serves the purpose of holding ongoing discussions over important issues andpromotion policies related to the sustainability of SBG and its Group companies. The committee comprises
four members, including the chairperson (Board Director, Corporate Officer, Senior Vice President, CFO, CISO
& CSusO Yoshimitsu Goto), who has been appointed by the Board of Directors, and three members (Corporate
Officer, Senior Vice President Kazuko Kimiwada; Corporate Officer, Chief Legal Officer and Group Compliance
Officer Tim Mackey; and the head of the General Administration Department Tatsuya Iida). The Sustainability
Committee deliberates on matters regarding sustainability as set forth in the Sustainability Committee Operation
Regulations. The committee’s agenda items and discussion results are reported to the Board as appropriate.

The Independent Auditor receives explanations from the Internal Audit Office on the audit planand, when necessary, on the results of internal audits and other matters.

Committees that make decisions on matters delegated by the Boardof Directors
Investment Committee
The Investment Committee comprises four Board Directors or Corporate Officers elected by the Board of
Directors (Masayoshi Son, Yoshimitsu Goto, Marcelo Claure, and Rajeev Misra). The Investment Committee makes
decisions on matters set forth in the Regulations of the Investment Committee including investments, loans, andborrowings under a certain amount. Decisions are only approved by majority agreement. If a majority agreement
is not reached, the matter is brought to the Board. All decisions of the committee are reported to the Board.

Brand Committee

Policy on determining compensation amounts and calculation
methods
Overview of the executive compensation system
The executive compensation policy of SBG is decided by a resolution of the Board of Directors,
accounting for the societal and relative status of each officer, as well as the degree of their

The Brand Committee comprises five members including the chairperson (Board Director, Corporate Officer, Senior Vice
President, CFO, CISO & CSusO Yoshimitsu Goto), who has been selected by the Board of Directors, and four members(Corporate Officer, Senior Vice President Kazuko Kimiwada; the head of the Corporate Legal Department Natsuko
Oga; the head of the Corporate Communications Office Takeaki Nukii; and the head of the General Administration
Department Tatsuya Iida), who have been appointed by the chairperson. The committee makes decisions on mattersset forth in the Regulations of the Brand Committee, including the licensing of the SoftBank brand. Decisions are only
approved by unanimous agreement. All decisions made by the committee are reported to the Board.

respective contributions to SBG, while referring to compensation survey results conducted byprofessional organizations, so that the system provides reasonably competitive compensation andcan attract global talent that share the same aspirations. The individual amount of compensation
is determined pursuant to the procedure described in “Organization and procedures for deciding
executive compensation” on the next page. For Board Directors whose main duties are as

Voluntary committees

officers of subsidiaries and Group companies, the compensation is determined by respecting

Nominating & Compensation Committee

the compensation policy of each company, based on the Cluster of No. 1 Strategy, and such

Based on the Nominating & Compensation Committee Regulations, the Nominating & Compensation
Committee deliberates on standards for election and dismissal, proposals of candidates, individualcompensation, and policies concerning evaluation and compensation for Board Directors, and reports the resultsof such deliberation to the Board of Directors. The Nominating & Compensation Committee members areelected by the Board from among Board Directors, and a majority of the committee members are Independent
External Board Directors. The committee currently comprises three Board Directors (Independent External Board
Director Masami Iijima as the committee chairperson; Independent External Board Director Yutaka Matsuo; andRepresentative Director, Corporate Officer, Chairman & CEO Masayoshi Son).

compensation is paid by subsidiaries and Group companies. The compensation for External Board

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Directors and Audit & Supervisory Board members consists exclusively of fixed compensation
because they are independent of business execution.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

049

Sustainability: Governance

Organization and procedures for deciding executive compensation
Executive compensation is paid within the range of the aggregate amount of compensation& Compensation Committee shall review the proposed compensation from multiple viewpoints

approved by the resolution of the General Meeting of Shareholders, subject to confirmation that

including consistency with the SBG compensation policy and report back to the Board of Directors on

it is in line with the aforementioned SBG compensation policy and is found to be both rational

its deliberation details. Moreover, to ensure independence, compensation of each Audit & Supervisory

and reasonable. The aggregate amount of compensation for Board Directors was capped at ¥5

Board member for fiscal 2020 was decided by consultation among the Audit & Supervisory Board

billion in monetary compensation and ¥5 billion in share-based compensation,*1 while that formembers, after the conclusion of the Annual General Meeting of Shareholders in June 2020.

Audit & Supervisory Board members was capped at ¥160 million.**1 Resolved at the 38th Annual General Meeting of Shareholders on June 20, 2018. SBG was served by 12 Board Directors (including
three External Directors) at the time of the resolution.
*2 Resolved at the 41st Annual General Meeting of Shareholders on June 23, 2021. Resolved to cap compensation at ¥160 million. SBG wasserved by four Audit & Supervisory Board members (all four being External Audit & Supervisory Board members) at the time of the resolution.

2Compensation of Board Directors for fiscal 2020 has been decided by Masayoshi Son,
Representative Director, Corporate Officer, Chairman & CEO, within the range of authority entrusted
to him by the resolution of the Board of Directors. However, following the establishment of theNominating & Compensation Committee, compensation hereafter shall be decided subject toTotal amount of compensation by title (fiscal 2020)*5

consultation with this committee for ensuring further rationality and reasonableness. The Nominating
Number ofpeopleTitle

Details

Overview

Fixed compensation

Basic
compensation

Annual amount is set on an individual basis and paid in fixed monthly cash installments.
Amount of compensation is decided on an individual basis, taking into consideration
whether officers are full-time or part-time, as well as their positions and the duties they
are in charge of.

Board Directors (excluding External Board Directors)
External Board Directors
Audit & Supervisory Board Members (excluding
External Audit & Supervisory Board members)
External Audit & Supervisory Board members
Total

Total
amount ofcompensation(Millions of
yen)

5
4
1

24

–

–

24

3
13

52
571

–
418

–
1

52
990

Components of executive compensation
Component

Subtotals for each type of compensation(Millions of yen)
Performancebased
Otherscompensation(Bonus)
418
1
–
–

Fixed
compensation(Basiccompensation)
373
122

792
122

Total consolidated compensation paid to respective Board Directors whose total
consolidated compensation is ¥100 million or more (fiscal 2020)*5
Aggregate
Compensationfor Board
Directors*3

Cashbonuses
Performancebased compensation*4

Incentive for short-term performance

Cash bonuses are paid every fiscal year as compensation for the execution of duties while
in office.

Incentive to improve corporate value over the medium to long term
Sharebased
payment

Stock options using stock acquisition rights are provided with the aim to encourage
executives to make continuous management effort, while sharing mutual interest withshareholders through increases in share prices.
The content of stock acquisition rights includes normal stock options (with the exercise
price calculated based on the market price at the time of allotment) and share-based
stock options (with an exercise price of ¥1). The exercisable period will be set within arange of 10 years from the day following their allotment date.

*3 Excludes compensation for External Board Directors*4 The amount of cash bonuses and the number of stock acquisition rights allotted as stock compensation are decided based on multiple
performance indicators for adequately rewarding the results achieved through business activities. Specifically, it is decided on an
individual basis and shall take into consideration individual performance based on each officer’s ability and achievements, as well ascompany performance including consolidated financial results, the stock price, and NAV (Net Asset Value).
SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

Subtotals for each type of consolidated compensation(Millions of yen)
Share-based payment
Basic
Bonus
Others(of whichcompensation
undetermined amount)
39
2
–
–

Name

Amount ofconsolidated
compensation(Millions of yen)

Title

Masayoshi Son

100

Board
Director

SBG

–

–

(–)

–

Ronald D. Fisher

917

SB Investment Advisers (US)
Inc.

424

425

–

68

Yoshimitsu Goto

480

SBG

63

416

–

1

SoftBank Corp.

120

228

(–)

–

Arm Limited

143

1,024

700 (700)15SB Group US Inc.
SBG
SB Investment Advisers (UK)
Limited

807
249

–
–

–
–

987
1

807

–

–

124

Ken Miyauchi

635

Simon Segars

1,882

Marcelo Claure
Katsunori Sago

1,795
250

Board
Director
Board
Director
Board
Director
Board
Director––

Rajeev Misra

931−

Company name

SoftBank Corp.

59

287

*5 See “Annotations” on page 65 for details.
Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

050

Sustainability: Governance

Information Security

Policy for constructive dialogue with shareholders

SBG constructs a mechanism that manages information security risks

To promote constructive dialogue with shareholders and othercontinuously and efficiently to secure adequacy of the entire Group’s operations.

investors, SBG assigns IR duties to a Board Director, Corporate Officer,

Constructing an Information Security Governance Structure

Senior Vice President and has established the Investor Relations

Primary Activities
Number of meetings withinstitutional investors/analysts
668 (fiscal 2020)
Constructive dialogue withshareholders(Major discussion topics)∙ Investment strategies and capital
policies∙ ESG initiatives∙ Disclosure enhancements
IR events held with online
accessibility∙ Annual General Meeting of
Shareholders (livestream)∙ Earnings results briefings(livestream)∙ Investor briefings (on-demand
stream)Department as the responsible department, which conducts IR

Yoshimitsu Goto, Board Director of SBG, is appointed as Chief Information

activities in close coordination with related departments such as

Security Officer (CISO) to promote and strengthen the Group’s information

Accounting, Finance, Legal, and General Administration. SBG discloses

security.

this structure on its website and in its Corporate Governance Report.

Information Security Policy Compliance

The management and the Investor Relations Department respondSBG formulated and disclosed its Information Security Policy that sets forth
the information security principles to be complied with by the Company andits officers and employees (including temporary employees). SBG appropriately
protects and manages information that SBG retains in the course of its businessand requires all contractors, consultants, and other third parties engaged in work
for SBG to comply with this Policy.

to requests for dialogue from shareholders and other investors
within reason, paying careful attention to the handling of material
facts subject to insider trading regulations. In addition to individual
discussions, SBG holds earnings results briefings and investor briefings
to explain the status of its businesses to shareholders and otherinvestors. The Investor Relations Department compiles the opinions

Initiatives to Strengthen Information Securityof shareholders and other investors obtained in the dialogue and
See our IR website for the latest information.

periodically reports them to management.

“Zero Trust” Compliance
SBG advances security measures based on the concept of “Zero Trust,” or not
trusting anything by default. Conventionally, SBG had implemented perimeter-typesecurity measures that isolate internal and external networks from each other basedon the idea that internal networks are safe whereas the Internet and other external
networks are dangerous. With the emergence of internal network incursions bytargeted attacks and the increasing use of cloud-based services on external networks,
however, perimeter-type security measures have reached their limits in terms ofaddressing threats and changes in the environment. Therefore, SBG recently revised
its information security measures and shifted to “Zero Trust” type networks that only
permit connections when trust can be established. This transition will realize robust
information security and flexible work styles independent of location or network.

Message from Our Global Head of Investor Relations
As the Investor Relations Department, we put the greatest importance on
dialogue with our investors. Along with clearly presenting the Company’s
strategies and business performance, we listen closely to the thoughts
and opinions of our investors. Through such dialogue, we make sure to

Yotaro Agaricreate a virtuous cycle whereby we build a mutual understanding with

Global Head ofInvestor Relations

our investors and their expectations are reflected within management.
We are often told that our business model is complicated andInformation Security Training
SBG provides ongoing security training for the purpose of raising awareness andcapabilities related to information security among its officers, employees, andoutsourced workers.

changes rapidly. Our reply is that while we enhance our disclosure inline with these changes, our vision and corporate philosophy remain
consistent. We continue to deepen dialogue with our investors to achievesustainable growth for the Company.

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Who We Are

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

051

Message from Ms. Yuko Kawamoto

Governance Matters to Fully Integrate Masa’s Talents into Shareholders’ Value
Ms. Yuko Kawamoto resigned from the position of External Board Director of SBG on June 22, 2021, in accordance with the announcement of her appointment as Commissioner of the National Personnel
Authority and her assumption of office as President of the authority on June 23, 2021. Ms. Kawamoto contributed the following message in May 2021 prior to her resignation.

SBG: Quite different from what I had seen and heard from outside

are taken on the frontlines to accomplish tasks in an appropriate manner. Moreover, long before

In June 2020, I was invited to join SBG as an External Board Director after being approached by

the sudden rise in SDGs momentum across the world and in Japan, Masa consistently stateda U.S. lawyer whom I had often worked with. This was just around the time when the businessthat “we aim to be a company that grows for 300 years.” One could say that the world is now

performance of the company was in serious decline due to various factors including issues

catching up, but SBG has not communicated in that way. The company is determined to follow

at WeWork. As Japan’s second-largest company in terms of market capitalization and with

its own path unrestricted by so-called common wisdom and trends. Maybe it is a sense of being

entrepreneurship, I saw SBG as a company that employed leverage to lower the cost of capital

externally shy, or maybe it is because of the idea that “society will understand some day without

and promote business, which is rare in Japan. In contrast, the company was said to be facing

proactive explanation.” It is a pity, anyhow, that some of these wonderful realities are not well

various governance issues. Specializing
in governance and finance, I decided toknown to the public.
The Board is well diverse comprising members from varied backgrounds and nationalities,

accept the invitation after an interview withexcept for gender diversity with the ratio of female directors to total at 11%. SBG is a truly

Masa, confident that I could make good

global company where discussions are always conducted from a global perspective. I believe thatuse of my knowledge and experience.

the main role of External Board Directors is to bring awareness to the executive function. In my

Almost one year after assuming theexperience, External Board Directors have often been catalysts for change; in other words, they

position, I feel it is rare for the image of aalert a company to the path it should take and support the desired change and work to increase

company that one sees and hears aboutshareholders’ value. SBG, however, is making constant changes itself every day. I have therefore

from outside to be so different from its

focused on asking such questions as “Are the rules in place?” “Are there any deficiencies in theactual figure. Having lost none of the spirit

framework?” and “What steps have been taken to ensure internal coordination?” while puttingof a venture company in its formative

forward various proposals. I teach a postgraduate course on corporate governance, and I believe

years, SBG engenders excitement as athat I have been able to confirm what needs to be checked. Unlike traditional large companies,

dynamic, swift-acting company. Sometimes,

decision-making in SBG is quick. Once a matter is accepted, implementation is immediate, withtherefore, rules come after the decisions are

the results for all to see, and that is rewarding. When I mentioned the need for a chief risk officer

made, and some might say the company(CRO), I was impressed with the speed when one was appointed two months later. Although

has some weakness in that regard. In reality,

External Board Directors are not necessarily familiar with the details and background of individual

however, the employees are professionals ininvestments, we have always been briefed by Masa or the responsible teams. I, in turn, havetheir respective fields. Even if the required

endeavored to fulfill an oversight function by asking questions from an objective viewpoint until

infrastructure is not always in place, steps

fully satisfied.

Yuko Kawamoto
Former External Director of SoftBank Group Corp.

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Message from Ms. Yuko Kawamoto

The challenge is to ensure accountability in a way that fits
recognized frameworks

Hoping SBG will establish an optimal governance structure
I regret deeply that I must step down as an External Board Director of SBG after only one year

I have a different view to the image that is sometimes raised in public and by the media that

due to my appointment as a commissioner of the National Personnel Authority.* If I had an

Masa does not listen to people’s opinions, acts arbitrarily and is inconsistent. In reality, I believe

avatar, I would like to have continued. Masa is an extremely exciting individual who often lights

it is rare for a CEO to listen to others so attentively. At Board meetings, Masa always asks forup the spirit of those around him. In fact, it is his inspiration that gave me the courage to take on

opinions on each agenda item, so any member who does not think hard and have an opinion

a new challenge and accept a difficult role in service of the country.

is unable to stand his or her ground. I have been quite impressed by this attitude. Masa is also

SBG needs to formulate a form of governance that allows Masa to fully demonstrate his

willing to change both his mind and direction quickly in a positive way after he listens to different

talents, which can then be integrated into shareholders’ value. This does not imply restrictions

opinions of various people. There were times when the direction was changed due to opposition

or constraints but rather an oversight function that allows the organization to reach its fullfrom External Board Directors. There were also times when he decided to fundamentallypotential. This is the responsibility not only of executives but also each employee. It would be nicereconsider his future approach based on lessons learned. Ideas are put forward one after

if the “obligation to dissent,” or to disagree when necessary, was more widespread throughout

another and revised at a rapid pace. This sometimes creates a gap with the risk-averse Japanese

SBG. Amid the moves to strengthen the Corporate Governance Code and the demands ofconventional mindset and can be seen as problematic from the outside. Looking at the way SBG

investors, and in part because I remained vocal at Board meetings over this past year, I believe an

is developing its business, however, I have learned a lot about what it means to take risks andatmosphere has been fostered where discussions can be held more frankly including the External

push forward with business.

Board Directors and Audit & Supervisory Board members. Masa is charming and not to be feared.

One of the challenges is that although the direction, speed, ideas and energy are all considered

I would hope that each executive and employee will work with an awareness toward governancegreat, sometimes the rules and systems are not checked in time to make decisions. As I

that maximizes shareholders’ value and thereby develop an even better form of governance thatmentioned earlier, Masa listens sincerely to the opinions of the External Board Directors. There areis genuinely representative of SBG and its unique qualities. SBG’s biggest challenge for the future

times, however, when the process is simplified because of the extraordinary speed. Then there

is to design a succession plan. Apple and Microsoft have also been following this path, withmight be a lack of sufficient explanation. One possible way to improve that is to increase theAmazon recently making an announcement in that regard. Although another challenge to benumber of in-house personnel responsible for performing checks. It would also help to carefully

overcome, I am confident that SBG will succeed. I look forward to SBG’s continued growth as astudy global rules and standards, review examples from other companies and obtain second or

global company representing Japan.

third opinions from outside professionals. Public and media interest in SBG and Masa remains
extremely high. While it is often good to be in the public eye, it also increases the possibility of
misunderstandings.

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO* The National Personnel Authority is a neutral and specialized organization responsible for ensuring fairness in personnel
administration and protecting the interests of national public employees in accordance with the National Public Service
Act. Commissioners are appointed by the Cabinet of Japan with approval of the Diet. The appointment and dismissal ofCommissioners is attested by the Emperor. See the National Personnel Authority website for details.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

053

Compliance

Commitment to Complying with Laws and Acting with Integrity
Compliance is our business foundation

Group compliance structure

We believe that going beyond legal and regulatory compliance, a commitment

Board of Directors of SBG

to integrity must be the foundation of our business. We aim to create anorganization where every officer and employee demonstrates the highest degreeof ethical conduct in every action they take.

Appoint chairperson /oversee

ReportGroup Risk and Compliance Committee of
SBG (GRCC)

Organizational structure

Oversee

ReportReport

The Board of Directors of SBG has the authority to appoint a group complianceGroup Compliance Officer (GCO)

officer (GCO) as the chief officer responsible for compliance across the Company.

Report / consult

Report / assist

Oversee

In September 2020, Tim Mackey was appointed as the GCO. Similarly, eachGroup Compliance Officesubsidiary appoints a Chief Compliance Officer (CCO). The GCO and CCOs have

Direct / advise / guidethe responsibility to implement systems designed to ensure compliance withthe laws and regulations and to promote ethical conduct. The GCO and CCOs

Appoint

Report / consult

CCO forum (held periodically with GCO)

ReportChief Compliance Officer (CCO) of subsidiaries

periodically report material incidents and risks together with activities of theirethics and compliance programs to their respective board of directors.

Report / consult

SBG has periodically held global CCO forums, in which the GCO and CCOs

Employees of SBG

Employees of subsidiaries

participate, to mitigate risks, share best practices and strengthen the relationshipwith subsidiaries.
Structure of ethics and compliance program

Ethics and compliance program and oversight
The Group Risk and Compliance Committee (GRCC) consists of Board Directors

Oversight of program∙ Leadership∙ Governanceand Corporate Officers of SBG and provides oversight to the risk management
and ethics and compliance programs of the Company. The GRCC assesses
the key performance indicators that measure the effectiveness of the risk
management and ethics and compliance programs such as risk assessments, risk
mitigation, and incidents of noncompliance. The GRCC reports regularly to SBG’s
Board of Directors on the effectiveness of those programs.

Standards and controls∙ Code of Conduct∙ Group policies∙ Controls

Risk assessment∙ Company-wide assesment∙ Oversee risk mitigations

Monitoring, oversight, and review∙ Ethics and compliance helplines∙ Employee surveys∙ Internal audits

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

Who We Are

Growth Assets

Training and awareness∙ E-learning∙ Face-to-face training∙ Regular communications

Management: The Foundation Supporting Our Growth

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054

Compliance

Code of Conduct and Group Policies

Training and awareness

SBG has established the SoftBank Group Code of Conduct as the standard that

The Company conducts training and awareness-raising activities to ensure that

all the Company’s officers and employees should follow. Our Code of Conduct

officers and employees recognize risk areas and have the information they needsets out specific examples to guide the Company’s officers and employees to

to make the right choices.

Compliance Starts with YOU!

ethical conduct, including Q&As, definitions, and red flags regarding various areas

The Company provides training for officers and employees regarding high-such as anti-corruption, prohibition on discrimination, confidentiality, conflicts

risk areas such as insider trading and conflicts of interest. SBG has introduced aof interest, antitrust laws, money laundering, insider trading, workplace, andglobal training system and provides trainings about the Code of Conduct andwhistleblowing. In addition, in May 2021, SBG has established the “Supplier Codecertain high-risk areas to Group companies in Japan and abroad.

of Conduct” to clarify the ethical standard we would like our suppliers to follow.

As one example of the awareness-raising activities, SBG holds a Compliance

SBG implemented Group Policies that establish group-wide minimum

Awareness Month annually for officers and employees of SBG and those at its

requirements across key risk areas such as anti-corruption, competition law,major subsidiaries in Japan and overseas. SBG also periodically delivers animation

conflicts of interest, insider trading, economic sanctions, information security,

videos featuring familiar compliance issues to enable its officers and employees

privacy, human rights, brand management, corporate governance, and thelearn again about ethical behaviors.

environment.
SBG continues to review and revise our Code of Conduct and Group Policies as

Compliance awareness animation
video

Monitor, audit, and review
SBG has implemented global ethics and compliance helplines and receives

appropriate.

FY2020 compliance slogan

reports and consultations from the Company’s officers and employees, as wellSee our website for the full text of
the “Supplier Code of Conduct.”as third-parties such as business partners, regarding compliance violations that

Top page of the SoftBank Group Code of Conduct website

involve the Company or its officers and employees. Reports and consultations
can be made anonymously to the extent permitted by laws and regulations.
We received several hundred reports and requests for advice in fiscal 2020 fromSee the “SoftBank Group Codeof Conduct” on our website fordetails.

across the Company. The CCOs are responsible for setting up helplines for theirrespective companies. Significant substantiated cases must be escalated to the
GCO.
SBG conducts an annual employee survey to measure its ethical culture. In
fiscal 2020, SBG conducted a global employee survey not only for SBG but also
for its subsidiaries in Japan and overseas and used the results of the survey toimprove our ethics and compliance programs.

SoftBank Group Corp. ANNUAL REPORT 2021

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Growth Assets

Management: The Foundation Supporting Our Growth

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055

Risk Management

Developing a System to Reduce and Prevent Risks
Risk management system

We also have set up the Group Risk and Compliance Committee (GRCC) to oversee risk

In November 2020, we appointed the Chief Risk Officer (CRO) and established the Risk

management across the Group. The GRCC, which consists of key senior officers, engages toManagement Office to strengthen our risk management system. Supervised by the CRO, the Risk

enhance the Group-wide risk management system by discussing risk management objectives andManagement Office spearheads Group-wide risk management activities.

countermeasures for material risks. The Risk Management Office reports quarterly to the GRCCWith regard to the risk management of SBG, each department is responsible for the reduction
and prevention of risks arising from its operation based on the Risk Management Regulations.

and the Board of Directors on the status of Group-wide risk management to ensure that the risk
management activities are properly directed and overseen.

At the Group level, each Group company appoints risk managers and takes the initiativeautonomously to reduce and prevent risks in its business activities in accordance with the Group

Risk management initiatives

Company Management Regulations, which stipulate matters to be reported to SBG. These

The Risk Management Office engages to strengthen risk management activities by identifying

policies and regulations are reviewed periodically and approved by resolutions of SBG’s Board of

and responding to risks, with the aims of eliminating and/or reducing obstructive factors to the

Directors, among others. In addition, when an incident occurs that may have a material impact

sustainable growth of the entire Group.

on the Group’s execution of business activities or reputation, an immediate report to the Risk
Management Office is required in accordance with our policies and regulations. Depending

Identifying risks

on the situation, the Risk Management Office collaborates with SBG’s departments and GroupThe Risk Management Office is pursuing the following initiatives in order to gain a comprehensive

companies to ensure that appropriate measures are taken.

understanding of the various risks the Group is facing.
Prior confirmation of important agenda items

Group risk management system

The Risk Management Office reviews important agenda items and proposals to be resolved
by SBG’s Board of Directors and other decision-making bodies. By ensuring that risk-related

Board of Directors of SBG
Reportinformation is properly reflected in agenda items, the Risk Management Office provides the

Direct / oversee

information necessary for decision-making.
ReportDirect / oversee

Group Risk and Compliance Committeeof SBG (GRCC)
ReportGroup-level risk analysis
We recognize that maintaining a sound financial base is one of the management challenges

Direct / oversee

for the Group. Accordingly, the Risk Management Office conducts stress tests to analyze
Chief Risk Officer (CRO)
Risk Management Office
Report / cooperate

Manage / assist

Each department of SBG

SoftBank Group Corp. ANNUAL REPORT 2021

how a potentially significant future deterioration in economic and financial conditions might
adversely affect our key management indicators. For portfolio companies in which we make

Report / cooperateintensive investments, the Risk Management Office also strives to understand the material

Manage / assist

risk factors that these companies are facing.

Each Group company
risk managers

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Risk Management

Collection of risk-related information from each Group company and department

material risks at the Group level by analyzing and evaluating the impact and likelihood of the

The Risk Management Office regularly collects information on risks, including non-financial

risks. Material risks are reported to and discussed by the GRCC and the Board of Directors. Basedrisks, identified by Group companies and SBG’s departments, and receives incident reportson the results of those discussions, the Risk Management Office monitors the status to consider

when risks are materialized.

countermeasures to confirm the effectiveness of those countermeasures.

Responding to risks

We continue to aim to avoid or minimize losses in the Group and implement initiatives to enable

Based on information collected by the procedures above, the Risk Management Office identifies

us to identify and respond to risks in a timely manner.

Message from Our Chief Risk Officer (CRO)

Enhanced structure by the newly established Risk Management Office

we contribute to discussions aimed at enhancing our crisis preparedness. With respect to our

In November 2020, we established the Risk Management Office to manage Group-wide risk

strengthen our system for monitoring and analyzing the status of new investments as well as post

management, and I was appointed Chief Risk Officer to head the new office. This organizational

investments.

change reflects the importance of a risk management function that is independent of themain business of investing in unlisted companies via SVF1, SVF2, and other vehicles, we aim toWith respect to non-financial risks, we focus on identifying risks that may threaten thesustainable growth of the entire Group and the status of responses to such risks through regularbusiness execution as SBG evolves into an investment company.
SBG is exposed to significant investment risks through its equity investments in listed andcollaboration with SBG’s departments and major Group companies. We also engage with relevant

unlisted high-tech companies via SVF1 and SVF2, as well as SB Northstar and SoftBank Latin

parties to discuss various risks such as governance, conflict of interest, reputation, information

America Fund. At the same time, we maintain a flexible financial management approach,leaks, ESG-related matters including climate change and human rights to assess

including keeping LTV at a low level and maintaining funds covering bond redemptions for thethe importance of each risk and consider countermeasures from a Group-

next two years, providing a foundation that supports SBG’s business model. In particular, wewide perspective. These major financial and non-financial risks are reportedmonetized some of our assets as part of the ¥4.5 trillion program announced in March 2020.

to the Board of Directors and GRCC on a regular basis to contribute toThis highlights our management policy of placing top priority on swift decision-making inmanagement decisions.
With a wide range of investment targets and a rapidly changing

preparation for crises and securing a sound financial base.
The Risk Management Office works to strengthen risk management activities with the aims

business environment, it is essential for us to continually enhance ourof eliminating and minimizing the obstructive factors to the sustainable growth of the Group.

risk management framework as swift decisions are made daily. To ensure

Factors that could threaten the financial base of the Company, which actively invests in equities

sustainable growth of the Group over the long term, we will continue

and utilizes its assets to raise funds, include market crises, such as the global financial crisis

seeking and applying the best practice

triggered by the subprime mortgage crisis, and the sharp deterioration of the business of largethat suits the Company so we canportfolio companies. Accordingly, we conduct stress tests based on assumptions of past large-

identify risks at an early stage andscale market fluctuations and identify concentration risks for large investees. In these ways,

avoid or minimize losses.

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

Who We Are

Growth Assets

Kiyoshi Ichimura
CRO (Chief Risk Officer)
Head of Risk Management Office

Management: The Foundation Supporting Our Growth

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057

Risk Management: Risk Factors

Risk Factors
SoftBank Group Corp. is a strategic investment holding company that manages an investment portfolio
formed through investments, made either directly or through investment funds, in a large number ofcompanies. The investment portfolio encompasses SBG’s subsidiaries and associates (“Group companies”)
and investments not included in the former (collectively, “portfolio companies,” including Group companies).
These portfolio companies operate in a wide range of markets globally. Accordingly, a variety of risks
accompany the execution of SBG’s investment activities and the portfolio companies’ business activities. The
major risks that SBG believes could significantly affect investors’ investment decisions as of June 23, 2021 areoutlined below. However, these risks do not include all the risks that SBG and portfolio companies could faceand additional risks may arise in the future. Forward-looking statements were determined as of June 23, 2021,
unless otherwise stated.
(1) Business Model
Based on its unique organizational strategy, the Cluster of No.1 Strategy, SBG endeavors to enhance NAV*1
through its investment portfolio consisting of companies engaged in diverse businesses in the informationand technology sector. SBG’s portfolio includes investments made through direct investments (including
investments made through subsidiaries), such as in Group companies (for example, SoftBank Corp., Arm, andAlibaba), as well as those made through investment funds such as SoftBank Vision Fund 1 and SoftBank Vision
Fund 2.
As a result of investments in the information and technology sector, SBG’s investment portfolio is significantly
affected by market trends in this sector. It is also significantly exposed to the market environment surrounding
initial public offerings (IPOs), as investments are made primarily in late-stage unlisted companies in theinvestment businesses of SBG (including investments made through subsidiaries) and SVF. Furthermore,from the fiscal year ended March 31, 2021, investments in listed stocks and other instruments were initiatedthrough its asset management subsidiary SB Northstar, centered on large high-technology companies. The
investment value of those portfolio companies could decrease due to market volatilities or various otherfactors. As a result, the equity value of SBG’s holdings could decrease, and thereby lead to a decline in NAV
and deterioration in LTV.*2 In parallel, the recording of valuation losses on assets such as equity holdings could
cause SBG’s consolidated results of operations and financial position to deteriorate, thereby adversely affecting
SBG’s ability to make new investments and the success of its financial strategies.
SBG recognizes that building a diverse investment portfolio is a crucial management priority, however, as
Alibaba shares accounted for just over 40% of the equity value of SBG’s holdings as of March 31, 2021,
fluctuations in the investment value of Alibaba shares could significantly affect the equity value of SBG’s
holdings as well as its NAV and LTV.

SBG also raises funds through sources including loans from financial institutions and the issuance of bonds
to meet funding needs of its investment activities. If interest rates rise due to changes in monetary policies
or in financial markets, or SBG’s creditworthiness declines due to a decrease in the value of owned assets ora deterioration in its results of operations, which could lead to a downgrade in SBG’s credit ratings, SBG’sfinancing costs could increase, thereby adversely affecting SBG’s consolidated and non-consolidated results ofoperations. Further, an inability to raise funds at the planned timing, scale, or conditions could adversely affect
SBG’s investment activities and financial position.
SBG (including wholly owned subsidiaries that procure funds) may raise new funds, refinance, sell some of
its assets, or take other measures to secure resources to repay its debt. SBG strives to maintain a sufficient cash
position in a stable manner with financial discipline, by raising funds at times it deems appropriate based on
careful monitoring of market conditions. However, if faced with prolonged unfavorable funding conditions,
SBG may be forced to dispose of equity assets on unfavorable terms or to execute unplanned equity asset
disposals in order to secure resources for repayment, which could adversely affect the equity value of SBG’s
holdings, NAV, and consolidated and non-consolidated results of operations.
Various covenants may be attached to SBG’s debt, including loans from financial institutions and corporate
bonds. If the possibility of a breach of any of these covenants arises and SBG is unable to take steps to avoid
such breach, SBG may forfeit the benefit of the term with respect to such obligations and, accordingly, may berequested to make lump-sum repayments with respect to other obligations. As a result, SBG’s creditworthiness
may decline, and its financial position could be significantly adversely affected.
(3) Management TeamSBG is managed under the leadership of a management team centered on Masayoshi Son, who serves as
Representative Director, Corporate Officer, Chairman & CEO of SBG. The major portfolio companies andinvestment funds, in which SBG invests, are run autonomously by management teams led by their respective
CEOs and other leaders. For example, Junichi Miyakawa serves as President & CEO of SoftBank Corp. andSimon Segars serves as CEO of Arm. In addition, Rajeev Misra (Corporate Officer, Executive Vice President of
SBG) serves as CEO of SBIA, the manager of SVF.
SBG has adopted the management structure described above. However, if an unforeseen situation were to
befall key members of the management team, the decision-making process could be affected. To minimize
this impact, SBG strives to draw up and revise contingency plans, including action guidelines and proactive
measures. However, there is no assurance that these measures will be successful. Unforeseen situations withrespect to members of the SBG Group’s management, particularly Representative Director, Corporate Officer,
Chairman & CEO Masayoshi Son, could impede the overall activities of SBG.

(2) Fund Procurement
SBG aims to meet the funding requirements for new investments on an ongoing basis, through measures such as
selling equity assets, receiving dividends from portfolio companies, obtaining distributions from investment funds,
and raising funds through asset-backed financing. This also applies to SBG’s wholly owned subsidiaries that procure
funds for SBG. However, if SBG is unable to dispose of equity assets or procure funds when the funds are needed
for new investments, it could miss investment opportunities and its ability to continue to increase NAV may becompromised. For certain asset-backed financing using equity holdings, in the event that the value of its eligible
holdings declines due to a deterioration in the stock market or other factors, SBG may be required to post additional
cash collateral or incur prepayment obligations. In addition, SBG could find it difficult to raise new funds.

(4) Investment Activities Overall
SBG engages in investment activities such as corporate acquisitions, establishment of subsidiaries andjoint ventures, and investments in operating companies (including listed and unlisted companies), holding
companies (including companies that effectively control other companies through various contracts), andinvestment funds. Moreover, SBG invests in listed stocks and other instruments through its asset management
subsidiary SB Northstar. These investment activities are subject to risks such as those stated in subsections a.
through d. below, and if these risks materialize, the asset value of portfolio companies (i.e., the equity valueof SBG’s holdings) could decrease, resulting in a decrease in NAV and deterioration of LTV. In parallel, therecording of valuation losses on assets, such as the equity value of SBG’s holdings, could adversely affect its
consolidated results of operations and financial position.
Among the portfolio companies, there are risks associated with SVF and SoftBank Corp. that are considered
to be highly material because they could have a particularly large impact on consolidated operating results.

SoftBank Group Corp. ANNUAL REPORT 2021

Who We Are*1 NAV (Net Asset Value) = equity value of holdings – net debt. See page 65 for the assumptions used to calculate the equity value of holdings and net debt.
*2 LTV (Loan to Value) = net debt ÷ equity value of holdings. See page 65 for the assumptions used to calculate the equity value of holdings and net debt.

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Risk Management: Risk Factors

For information on those risks, please see “(5) SoftBank Vision Fund 1 and SoftBank Vision Fund 2” and “(6)SoftBank Corp. Group.”a. Political situations, monetary and fiscal policies, and trends in international conditions
SBG invests in entities that operate not only in Japan, but also in countries and regions overseas, such as the
U.S., China, India, Europe, and Latin America. Therefore, if economic situations or financial markets in suchcountries and regions deteriorate due to changes in political and social situations, monetary and fiscal policies,
international conditions such as trade disputes or conflicts, natural disasters due to factors such as climatechange, or public health crises such as the spread of infectious diseases, including COVID-19, the investment
activities of SBG and the business activities of portfolio companies may not develop as expected. For example,
SBG’s execution and realization of investments could be delayed, the terms and conditions of investment
realizations could deteriorate, or the businesses and results of operations of each portfolio company could be
adversely affected by a decrease in demand for, or a stagnation in the supply of, their services and products.
Further, with respect to investments in unlisted companies with low liquidity, if market conditions deteriorate
sharply or other similar issues arise, SBG may not be able to sell its interests in such companies at the timing,
scale, or conditions desired by SBG. As a result, the equity value of SBG’s holdings, NAV, LTV, consolidated andnon-consolidated results of operations may be adversely affected.
Notably, the COVID-19 outbreak, which started to spread from the beginning of 2020, has greatly affected
the global economic situation, and its impact continues to this day. In the fiscal year ended March 31, 2021,
governments around the world have been implementing fiscal stimulus and monetary easing measures, andexpectations that vaccination programs progress in some countries will encourage greater economy activity
have led to an overall market recovery in the second half of the fiscal year. The technology sector, where SBG
focuses its investment strategies, has been positively impacted by the accelerated adoption of digital services
to address the pandemic. However, there is no guarantee that the current positive impact will be sustained inlight of uncertainties associated with the pandemic. The effect on SBG could turn into a negative impact in the
future, or such negative impact could last longer than expected.
Apart from this, SBG’s foreign currency-denominated investments in overseas companies could incur
losses due to changes in foreign exchange rates. Further, in the preparation of SBG’s consolidated financial
statements, the local currency-based revenues, expenses, assets, and liabilities of Arm and other overseas
Group companies are converted into Japanese yen. Consequently, fluctuations in foreign exchange rates could
adversely affect SBG’s consolidated results of operations and financial position.
b. Investment regulations
The investment activities of SBG may require approvals and permissions from regulatory authorities of relevant
countries or may be subject to restrictions on involvement in portfolio companies. In addition, new or stricter
regulations on investment activities may be enacted in relevant countries. SBG addresses each of theseregulations by ensuring close cooperation between its legal department and concerned parties, including
external advisers. However, if the necessary approvals and permissions cannot be obtained or other restrictions
cannot be avoided, SBG may be unable to successfully implement its investment plans.
For example, with respect to certain U.S. investments, SBG has entered into national security agreementswith the companies that are considered covered investments (herein subsection b, the “covered companies”)
and the relevant regulatory authorities and agencies of the U.S. government. Pursuant to these national
security agreements, SBG and the covered companies have agreed to implement measures to safeguard U.S.
national security. Implementing these measures could result in increased costs or constraints on selection offacilities, contracts, personnel, suppliers, and business operations within the U.S.

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

c. Investment decisions
SBG makes direct investments (including investments through subsidiaries) without going throughinvestment funds (for example, SVF). In the investment decision-making process for these cases, SBG seeks toappropriately estimate the investment target’s equity value and to assess risks related to the target’s businesses,
finances, corporate governance, compliance, and internal controls, by conducting due diligence on the target’s
business, technology, business model, market size, business plan, competitive environment, financial condition,legal compliance, etc. For this purpose, SBG obtains the cooperation of, for example, outside financial,legal and tax advisers, in addition to the relevant internal departments. Moreover, an objective review of theadequacy of the due diligence findings is carried out by a dedicated review department. Based on the resultsof such reviews, investment decisions are made by the Board of Directors or the Investment Committee towhich authority is delegated by the Board of Directors.
Particularly, with respect to the risks associated with the corporate governance of portfolio companies, SBG
has set out its “Portfolio Company Governance and Investment Guidelines Policy” to clarify the standards
related to the corporate governance of portfolio companies that should be taken into account by SBG and
its subsidiaries (including, in principle, SVF and other investment subsidiaries managed by SBG’s subsidiaries)
when they consider an investment. This policy covers a wide range of important corporate governance issues,
addressing matters such as a portfolio company’s composition of directors, founder and management rights,
rights of shareholders (including matters on super-voting shares), and mitigation of potential conflicts ofinterest. The policy sets forth general principles and allows for each investing entity to exercise discretion withcertain limitations. Each investing entity is required to monitor the corporate governance of each portfolio
company and regularly report the results to SBG.
However, even with such a prudent investment decision-making process in place, there is still a possibilityof overestimating the corporate value, technology, business model, or market size of an investment target,or underestimating risk. Investment decisions could also be made while misjudging the integrity of founders
and managers who have crucial influence. Consequently, after making an investment, the asset value of theinvestment (i.e., the equity value of SBG’s holdings) could decrease, thereby leading to a decrease in NAV anddeterioration of LTV. In parallel, the recording of valuation losses on assets such as SBG’s equity holdings could
adversely affect its consolidated results of operations and financial position.
d. Decrease in the asset value of portfolio companies
Even after making investments, SBG has a system in place in which major risk factors of portfolio companies
are continuously monitored and reported to management, including financial and management information,
key performance indicators, differences between business plans at the time of the investment decision andactual progress, and the status of corporate governance. In addition, based on the findings of the monitoring,
SBG takes the necessary measures to improve the management of portfolio companies, such as providing
necessary advice, dispatching human resources at various levels (including officers and managers), andintroducing business partners.
However, portfolio companies may be unable to develop businesses as envisioned by SBG at the time of
the investment decision, due to factors including the obsolescence of portfolio companies’ technologies andbusiness models and intensified competitive environments, in addition to the macro external factors describedin “a. Political situations, monetary and fiscal policies, and trends in international conditions.” This may lead toa significant deterioration in business performance or a drastic revision of their business plans. There is also a
possibility that the portfolio companies may increase their capital, which could result in a significant dilution of
the per-share value of such portfolio companies’ shares. In such cases, the asset value of portfolio companies
may decrease, and SBG may record valuation losses on financial assets such as shares or impairment losses
on goodwill, property, plant and equipment, and intangible assets acquired through investment, and may

Who We Are

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Management: The Foundation Supporting Our Growth

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Risk Management: Risk Factors

not receive the expected returns, such as profit sharing, from portfolio companies or be able to recover theinvestment. Consequently, the equity value of SBG’s holdings and NAV could decrease, thereby leading to a
deterioration of LTV. In parallel, the recording of valuation losses on assets such as SBG’s equity holdings could
adversely affect its consolidated results of operations and financial position.
Moreover, on a non-consolidated basis, any decline in the value of assets that were acquired throughinvestment activities, including equity interests, could cause SBG to recognize a valuation loss, which could
adversely affect SBG’s results of operations and the distributable amount. Furthermore, a deterioration in the
results of operations of portfolio companies could result in an inability to receive dividends from portfolio
companies as expected, which could adversely affect cash flows.
In addition, SBG may provide loans, loan guarantees, additional investment or other forms of financial
support to portfolio companies as deemed necessary to improve their shareholder value, if they are unable
to develop businesses as envisioned at the time of the investment decision, are unable to create desiredsynergies with other portfolio companies, or need more funds than anticipated for business development. This
could increase SBG’s risk exposure to those companies. Nevertheless, SBG has a general policy of not making
investments solely for the purpose of providing relief to the portfolio companies of investment funds.
(5) SoftBank Vision Fund 1 and SoftBank Vision Fund 2
SoftBank Vision Fund L.P. (“SVF1”) and SoftBank Vision Fund II-2 L.P. (“SVF2” and, together with SVF1, “SVF”)
invest primarily in equity-related investments in the technology sector (including telecoms, internet and media).
SVF is managed by SBG’s wholly owned subsidiary in the U.K., SB Investment Advisers (UK) Limited, which isauthorized and regulated by the U.K.’s Financial Conduct Authority. SBG invests in SVF as a limited partner.
Also, SBIA is entitled to receive management fees and performance fees, each of which is measured byreference to the investment activities of SVF.
As of March 31, 2021, the total committed capital for SVF1 was $98.6 billion (including $33.1 billion from
SBG and its subsidiary),*3 cumulative contributions from limited partners were $85.4 billion (including $29.3
billion from SBG and its subsidiary), and remaining undrawn committed capital was $13.2 billion (including$3.8 billion from SBG and its subsidiary).
As of March 31, 2021, SBG was the sole limited partner in SVF2 and the total committed capital for SVF2
was $20.0 billion,*4 cumulative contributions from SBG were $6.8 billion, and remaining undrawn committed
capital was $13.2 billion.
SVF and SBIA are subject to particular material risks, including those stated in subsections a. through k.
below. SBIA has established a Risk Management Framework (“RMF”) to embed risk management in thebusiness and decision-making procedures across SBIA globally, but it may not be able to fully avoid theemergence of such risks. If any of these risks were to emerge, they could adversely affect the value of theinvestment portfolio of SVF, thereby deteriorating the financial results of SVF and SBIA. A decrease in thevalue of investments in SVF could also adversely affect the equity value of SBG’s holdings and thereby lead toa decline in NAV and deterioration in LTV. In parallel, the recording of such valuation losses on equity holdings
could adversely affect SBG’s consolidated results of operations and financial position.
In this section (5), the term “portfolio companies” refers to the investees of SVF.

The principles underlining SBIA’s RMF are:• “Tone from the top” (i.e., the Board is ultimately responsible for risk management and risk should be taken
into account in key business decisions)• The establishment of an effective risk culture across the organization which supports the business to meetinvestors’ expectations, the firm’s strategic objectives, and regulatory requirements• Identifying and mitigating risks in a forward-looking manner, allowing management to take proactive
action as required to safeguard assets of limited partners and SBIA’s reputation• Ensuring that material existing or emerging risks are actively identified, measured, mitigated, monitored
and reported• Meeting the risk management requirements of local and Group company regulators
a. Impact on the results of operations
All entities that comprise SVF are consolidated by SBG. Investments held by SVF are measured at fair value
at the end of every quarter. Changes in fair value are recognized as gain and loss on investments (except forgain and loss on investments in subsidiaries) in operating income from Gain (loss) on investments at SVF1,
SVF2, and others in the consolidated statements of income. With respect to unlisted companies, fair value ismeasured by combining multiple methods, such as the price of recent transactions, discounted cash flow, andmarket comparable companies. Fair value of listed companies is determined by the market price at which they
trade. A decline in the fair value of the investments—due to factors such as a deterioration in the results ofoperations of portfolio companies or a downturn in financial markets and economic conditions—could lead toa deterioration in the results of operations of SVF, which could have an adverse effect on SBG’s consolidated
results of operations and financial position. Further, on a non-consolidated basis, a deterioration in the resultsof operations of SVF could cause SBG to record a valuation loss on investment made as a limited partner,
which could have an adverse effect on its results of operations and distributable amount.
The portfolio companies in which SVF has invested that SBG is deemed to control under IFRS, are treated as
subsidiaries of SBG. The results of operations as well as assets and liabilities of said subsidiaries are reflected in
SBG’s consolidated financial statements. Therefore, a deterioration in the results of operations of said portfolio
companies that are subsidiaries could have an adverse effect on SBG’s consolidated results of operations andfinancial position. Gain and loss on investments in said subsidiaries that are recognized at SVF are eliminated inconsolidation.
To ensure the appropriateness of fair value measurements, SVF has a robust valuation process, which isoverseen by SBIA’s Valuation and Financial Risk Committee (“VFRC”). VFRC follows the SBIA Global Valuation
Policy when valuing SVF’s investments and valuations are prepared in line with IFRS 13 Fair Value Measurement
and the International Private Equity and Venture Capital Valuation Guidelines on a quarterly basis. In addition
to this, independent valuations of SVF1’s portfolio companies are conducted on a semi-annual basis byindependent third-party valuation firms who have been appointed and engaged by SVF1’s investor advisoryboard. SBIA is required to take into account (to the extent appropriate in accordance with SBIA’s regulatory
obligations) all valuations received from such independent third-party valuation firms.

RMF of SBIA
This framework covers all aspects of risk management (both operational and investment) and sets a framework
for identifying, assessing and mitigating risks.

b. Investment performance
Net proceeds from the investment performance of SVF are distributed to limited partners, who comprise SBG
and, for SVF1, third-party investors. They are also distributed to SBIA as performance fees. If SVF experiencesa deterioration in investment profitability and is unable to generate investment performance as planned,
SBG could be unable to receive performance-based distributions as a limited partner in accordance with
its expectations or could be unable to recover its capital contributions. SBIA may also be unable to receive
performance fees in accordance with expectations.

SoftBank Group Corp. ANNUAL REPORT 2021

Who We Are*3 Includes $2.5 billion earmarked for purposes of an incentive scheme related to SVF1.
*4 As of June 23, 2021, SBG’s committed capital to SVF2 has been increased to $40.0 billion.

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Further, SBIA receives performance fees on the realization of gains, including after the dispositionof investments, receipt of dividends from investments, and monetization of shares. The existence of aperformance fee may create an incentive for SBIA to make and cause SVF to make more speculative
investments than they would otherwise make in the absence of such performance-based fees. Performancefees received are subject to a clawback provision (a provision requiring the return of performance fees
received in the past), which is triggered under certain conditions based on future investment performance.
Therefore, if the investment performance of SVF1 does not exceed a certain level, SBIA may be unable toreceive performance fees in accordance with expectations. Also, if the investment performance at the time ofliquidation of SVF1 does not exceed a certain level, the amount of performance fees that have been received
by SBIA up until then could be reduced, or SBIA may not be able to receive performance fees.
c. Leverage
SVF may utilize borrowings to bridge capital calls and incur leverage on a portfolio basis. For the purpose ofthis disclosure, “leverage” refers to any method by which SVF’s exposure is increased and may take the formof direct borrowing, issuance of debt or mezzanine securities, trading on margin, use of derivative instruments
and other forms of direct and indirect borrowings. All of these uses or exposures to leverage will increase theexposure of SVF’s investments to adverse economic factors such as significantly rising interest rates, severe
economic downturns or deterioration in the condition of the corresponding market of the investment. In theevent an investment is unable to generate sufficient cash flow to meet principal and interest payments on its
indebtedness, the value of SVF’s equity in such investment could be significantly reduced or even eliminatedand, if such leverage has recourse to multiple investments, it may also reduce or eliminate the value of theseother investments. In the event SVF is unable to generate sufficient returns to meet its obligations underborrowings, SVF may have to realize investments prematurely, adversely impacting returns to investors. As ofthe end of March 2021, SVF1’s outstanding borrowing for the purpose of monetizing its investments was $4.0
billion.
SBIA closely monitors SVF1’s leverage levels and associated cash flows, both in compliance with limitations
set out in the SVF1 fund and facility documentation, and from an ongoing liability and pipeline investment
perspective. Such leverage levels and any potential cash flow issues are reported to senior management byboth the finance and investment risk teams for action. SVF has a strong liquidity position, with certain uncalled
limited partner capital reserved in order to meet loan interest payments and other SVF liabilities. SBIA always
aims to continue to maintain an adequate cash buffer for SVF.
d. Lack of opportunity to exit from investments
Due to the illiquid nature of many of the investments that SVF may acquire, SBIA is unable to predict withcomplete certainty what the exit strategy will ultimately be for any given position. Accordingly, there can be
no assurance that SVF will be able to realize such investments in a timely manner. Consequently, the timing of
cash distributions to investors is uncertain and unpredictable. Exit strategies that appear to be viable when an
investment is initiated may be precluded by the time the investment is ready to be realized due to economic,
legal, political or other factors. SVF may be prohibited by contract or other limitations from selling certain
securities for a period of time which may mean that SVF is unable to take advantage of favourable market
prices.
Approval of an exit strategy is a key part of the SBIA Investment Committee’s considerations and exit
strategies are regularly reviewed and updated by SBIA’s investment teams. Exit strategies are also stress tested
under various market conditions by the investment risk team to allow for forward planning. In setting up a
long-term fund structure, it was anticipated that multiple economic downturns could occur and that someinvestments may take longer to exit than others.

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e. Non-controlling investments and limited rights as shareholder
SVF may hold non-controlling interests in certain portfolio companies and, therefore, may have a limited ability
to protect its interests in such companies and to influence such companies’ management. In addition, SVF may
invest alongside financial, strategic or other third-party co-investors (including Group companies) through joint
ventures or other entities which may have larger or controlling ownership interests in such entities or portfolio
companies. In such cases, SVF will rely significantly on the existing management and board of directors of suchcompanies, which may include representatives of other financial investors with whom SVF is not affiliated andwhose interests may at times conflict with the interests of SVF.
f. Securing and retaining human resources
SBIA seeks to maximize the equity value of the investment funds that it manages, including SVF, by carefully
selecting investments and promoting growth after investment through the provision of a wide range of
support. For the success of these investment activities, it is essential to secure and retain capable personnel
who possess broad knowledge of technology and financial markets as well as specialized skills in managing
investment businesses. SBIA has broad investment and management capabilities, and aims to ensure staff
retention through various HR support programs; from training and development to moving staff acrossthe organization to ensure they fulfil their potential. SBIA and its Remuneration Committee have a totalcompensation philosophy linked to performance that is believed to be very competitive against the market.
However, the inability of SBIA to secure or retain an adequate number of such capable personnel (including
in light of increasing competition among alternative asset firms; financial institutions; private equity, growthequity and venture capital firms; investment managers and other industry participants for hiring and retaining
qualified investment professionals and other factors) could have an adverse effect on the maintenance or
expansion of the investment scale and future investment performance of the investment funds it manages.
g. Limited partners
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 could result in it being
unable to invest as planned. Whilst other limited partners are required to meet shortfall amounts, subject tocertain limitations, as the interests in SVF1 are concentrated amongst a few significant investors, including
SBG itself, the adverse impact of a limited partner’s failure to comply with a capital call may be greater than
it would be if the interests were held across a more diverse group of investors. In addition, certain thirdparty limited partners that provide large committed capital amounts to SVF1 have a veto over investments
above a certain threshold amount, and the exercise of a veto could result in SBIA being unable to conduct
investments as planned, including an investment that is a follow-on investment that SBIA considers necessary
or appropriate to enhance or protect SVF1’s interests in a pre-existing investment.
h. Regulation of new technologies or business models
SVF’s portfolio includes companies that are advancing the use of or are conducting research and development
in relation to new technologies such as AI and big data and companies that are rolling out new businessmodels that are different from existing business models. The business fields in which these types of newtechnologies and business models are offered (for example, autonomous vehicles and ride-sharing services)
may be subject to specific and strict regulations and licencing regimes in many countries and regions. With
the development of related laws, the introduction of, or changes in, regulations could have an adverse effectby creating financial burdens or restrictions on portfolio companies’ business development and their results ofoperations by, for example, requiring portfolio companies to change, suspend, or discontinue the deploymentof technologies, business models, or related research and development plans. Licenses and permits required

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to provide certain technology related services are subject to various conditions and there is no assurance that
SVF’s portfolio companies will be able to satisfy such conditions.
i. Concentration of investments in specific business fields
SVF holds investments in multiple companies in specific business fields, which in some cases leads to a highlevel of concentration of investments in said business fields. For example, SVF1 has invested in companies thatprovide ride-sharing services, including Uber Technologies, Inc., Xiaoju Kuaizhi Inc., and GRAB HOLDINGS INC.
In such business fields, a deterioration in the business environment, such as sluggish demand or intensified
market competition (including competition among portfolio companies), could result in a deterioration in the
results of operations, such as a decrease in the profitability of a portfolio company, an inability to develop abusiness in accordance with expectations at the time of SVF’s investment, or a deterioration in the market’svaluation of said business fields. Such developments could adversely affect the results of operations or the fairvalue of portfolio companies.
Concentration risk is measured and reported by the SBIA investment risk team to SBIA senior management
and considered by the members of SBIA’s Investment Committee and board. Diversification is implemented or
the risk is accepted through the investment process, including review by SBIA’s Investment Committee and, as
required, SVF1’s investor advisory board.

litigation risk due to the failure to identify and address risks of target company prior to business combination,or the risk of failure in finding a SPAC target thus no business combination will occur. Such risks may result ina decline in the sponsor’s reputation.
(6) SoftBank Corp. GroupSoftBank Corp. and its subsidiaries (Z Holdings Corporation, for example) (collectively herein (6), “SoftBank
Corp.”) mainly conduct telecommunications, internet advertising, and e-commerce businesses. There are risks
associated with SoftBank Corp. that are considered to be highly material, including those stated in subsections
a. through c. below. If the following risks materialize, SoftBank Corp.’s results of operations could deteriorate,
which could result in a decrease in asset value (i.e., the equity value of SBG’s holdings), and thereby lead to adecrease in NAV and deterioration of LTV. In parallel, the recording of impairment losses on goodwill, property,
plant and equipment, and intangible assets acquired through investment and the incorporation of SoftBank
Corp.’s performance could also adversely affect SBG’s consolidated results of operations and financial position.

k. SPACTo potentially pursue a wider range of investment opportunities, SBIA US may form a special purpose
acquisition company (“SPAC”) for the purpose of effecting a merger, share exchange, asset acquisition, sharepurchase, reorganization or similar business combination with one or more businesses that the company
has not yet identified at the time of the offering and it aims to complete such business combination within
two years from the closing of each offering. However, investment in a SPAC as sponsor entails risks, such asa. Leakage and inappropriate use of information
In its business operations, SoftBank Corp. handles customer information (including personal information) andother confidential information. This information could be leaked or lost, or may be used inappropriately inbreach of laws and regulations or policies, or involved in a similar incident, either intentionally or accidentallyby SoftBank Corp. (including officers and employees and people related to subcontractors) or through amalicious cyberattack, hacking, computer virus infection, or other form of unauthorized access by a third partyor other means. Such an occurrence could damage SoftBank Corp.’s competitiveness, and incur significant
costs to SoftBank Corp. for payment of damages and modification of security systems, in addition to having
an adverse impact on SoftBank Corp.’s credibility or corporate image and making it difficult to acquire andretain customers. These outcomes could adversely affect SoftBank Corp.’s business development, financial
position and results of operations.
On March 17, 2021, LINE Corporation, which was acquired in conjunction with a business integration in
the fiscal year ended March 31, 2021, announced, among other matters, that it had granted an affiliatedsubcontractor company in China viewing authority over certain personal information acquired from users.
Moreover, in connection with this incident, LINE Corporation received orders from the Personal Information
Protection Commission and the Ministry of Internal Affairs and Communications on March 19, and the
Financial Services Agency on March 22, to submit reports based on the applicable laws. Accordingly, LINE
Corporation has submitted reports on its intended responses to this incident. No evidence of unauthorizedaccess or an information leak has been confirmed in this incident. However, considering that there were somedeficiencies in terms of security control measures and explanations to users, SoftBank Corp. views this matteras an extremely serious incident and is implementing measures to deal with the incident accordingly. Looking
ahead, SoftBank Corp. will work to strengthen governance regarding the appropriate handling of personal
information. However, if such measures to strengthen governance do not function effectively, SoftBank
Corp. could be subject to administrative sanctions by the authorities, sustain damage to its credibility, suffer
a decline in demand for its services, and may need to formulate and implement additional measures and soforth. Consequently, these outcomes could adversely affect SoftBank Corp.’s business development, financial
position, and results of operations.
SoftBank Corp. strives to build a framework to protect and manage information assets appropriately,
including the appointment of a Chief Information Security Officer and education and training sessions
on information security for officers and employees. SoftBank Corp. maintains and controls this level of
information security through various measures. Specifically, SoftBank Corp. implements physical security
control measures such as restricting access to work areas that involve customer information and other

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j. Listed company holdings
SVF’s investment portfolio may contain securities and debt issued by listed companies. Such investments
may subject SVF to risks that differ in type or degree from those involved with investments in privately
held companies. Such risks include greater volatility in the valuation of such companies resulting from theavailability of quoted market prices, increased obligations to disclose information regarding such companies,
limitations on the ability of SVF to dispose of such securities and debt at certain times, increased likelihoodof shareholder litigation and insider trading allegations against such companies’ executives and board
members, including employees of SBIA, and increased costs associated with each of the aforementioned risks.
In addition, securities traded on a public exchange are subject to such exchange’s right to suspend or limit
trading in certain or all securities that it lists. Such a suspension could render it temporarily impossible for SVF’s
positions to be liquidated, and thereby expose SVF to losses.
The primary mechanism employed to mitigate the market risk posed by the listed securities held by SVF
following a liquidity event is to follow a deliberate plan for selling down the positions so as to minimize themarket impact of SBIA’s activity and maximize the value of the proceeds. In some cases, SBIA will also reduce
its exposure by entering into derivative contracts (for example, by selling a covered call option). SBIA also
examines whether to hedge the foreign-exchange risk should the securities be denominated in a currency
whose exchange rate relative to USD is volatile.
The operational and compliance risks that arise while managing SVF’s listed securities positions are managed
through an appropriate control framework involving SBIA’s middle office, compliance and operational riskfunctions, including the investment risk team. These controls include pre-trade approval processes, such as theapproval of trading counterparties, and post-trade reconciliations and monitoring.

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confidential information, and establishing room access management rules specific to those restricted areas.
SoftBank Corp. has introduced an AI-based predictive detection (behavior detection) system for internal
misconduct. Certain conditions, such as the use of business PCs and the intranet and the status of accessto internal servers by officers and employees, are monitored. SoftBank Corp. also conducts monitoring anddefensive measures against unauthorized access via cyberattacks from outside the company. Moreover,
SoftBank Corp. partitions and sets apart access rights and networks to be used for various types of
information, according to the information security level. Furthermore, SoftBank Corp. has establishedpolicies and rules on the management and strategic use of data from within and outside the company,
thereby strengthening the internal management system concerning matters such as the confidentiality oftelecommunications and the handling of personal information.
b. Steady provision of services(a) Capacity enhancement of telecommunications networks
To maintain and enhance the quality of its telecommunications services, SoftBank Corp. needs to, andsystematically continues to, increase the capacity of its telecommunications networks (by securing
required spectrum, for example) based on the forecast of future network traffic (communication volume).
However, if the actual traffic is significantly higher than expected, or if SoftBank Corp. fails to increase
network capacity in a timely manner, the quality and reliability of its services and corporate image may
deteriorate, which may adversely affect its ability to acquire and retain customers. Moreover, additional
capital investment may be required, which may adversely affect the business development, financial
position and results of operations of SoftBank Corp.
(b) Service disruptions or decline in quality due to system faults and other factors
If human error, equipment or system problems, cyberattacks by third parties, hacking orother unauthorized access occurs in the various services provided by SoftBank Corp., such as
telecommunications networks and systems for customers, there is a possibility that a serious problem
could occur, including an inability to provide services continuously or a decline in the quality of services.
SoftBank Corp. has taken measures such as building redundancy into systems, clearly defining restoration
procedures in preparation for incidents such as system faults, and creating appropriate capabilities
that facilitate rapid recovery from system faults and similar problems should they occur. Even withthese measures in place, if such disruptions or a decline in quality are not avoided and/or if significant
time is required to restore services, SoftBank Corp.’s credibility or corporate image could deteriorate,
making it difficult to acquire and retain customers. This could adversely affect SoftBank Corp.’s businessdevelopment, financial position and results of operations.
(c) Natural disasters, accidents and other unpredictable events
SoftBank Corp. constructs and maintains telecommunications networks, information systems, andother systems necessary for the provision of various services, including internet and telecommunications
services. In the past few years, there has been a heightened risk of sustaining damage from major natural
disasters, such as earthquakes and typhoons, owing to factors such as the increased likelihood of theoccurrence of a Nankai Trough earthquake or an earthquake directly under the Tokyo metropolitan
area and the progression of climate change. Natural disasters such as earthquakes, typhoons, floods,
tsunamis, tornadoes, heavy rainfall, snowfall, or volcanic activity; the amplification of those natural
disasters due to climate change in recent years; other unexpected disruptions such as fires or power
outages or shortages; and unpredictable events such as terrorist attacks or the spread of infectious
diseases could interfere with the normal operation of telecommunications networks, information

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systems, and other systems. This could hinder the provision of various services by SoftBank Corp. In
order to ensure that it can provide a stable telecommunications environment even in the aforementioned
circumstances, SoftBank Corp. has introduced measures to build redundancy into networks and mitigate
power outages at network centers and base stations. In addition, SoftBank Corp. has implemented
measures such as strategically placing network centers, data centers, and other key facilities throughout
Japan, as part of efforts to mitigate the impact of the aforementioned circumstances on the provisionof various services. Even with these measures in place, if the provision of various services is hindered,and these impacts become widespread and/or if significant time is required to restore services, SoftBank
Corp.’s credibility or corporate image could deteriorate, making it difficult to acquire and retain
customers. Moreover, significant costs may be incurred by SoftBank Corp. for recovery and repair oftelecommunications networks, information systems, and other systems. This could adversely affect
SoftBank Corp.’s business development, financial position and results of operations.
c. Dependence on management resources of other companies(a) Consignment of operations
SoftBank Corp. consigns certain sales activities, acquisition and retention of customers, network
construction and maintenance mainly for telecommunications services, and execution of other related
operations in whole or part to subcontractors. In addition, SoftBank Corp.’s information search services
make use of other companies’ search engines and paid search advertising placement systems. SoftBank
Corp. conducts credit investigations when it selects subcontractors and regularly monitors their resultsof operations and other conditions and audits their operations even after concluding contracts withthem. If these subcontractors (including officers and employees and related parties) are unable toexecute operations in line with SoftBank Corp.’s expectations, or if they engage in activities such as theunauthorized acquisition of information concerning SoftBank Corp. and its customers, or the use of suchinformation for purposes other than intended, SoftBank Corp.’s business development could be adversely
affected.
As these subcontractors are responsible for the sale of SoftBank Corp.’s services and products, damage
to the credibility or corporate image of these subcontractors would also have a negative impact on
SoftBank Corp.’s credibility or corporate image, which could hinder the acquisition and retentionof customers. As a result, SoftBank Corp.’s business development, financial position and results ofoperations could be adversely affected.
Furthermore, if these subcontractors should commit any acts in breach of laws and regulations,
SoftBank Corp. could be investigated and held accountable for non-fulfillment of its supervisory
responsibility by, for example, receiving a warning or administrative guidance from the relevant regulatory
authorities. SoftBank Corp.’s credibility or corporate image could deteriorate as a result, making it
difficult to acquire and retain customers. Consequently, SoftBank Corp.’s business development, financial
position, and results of operations could be adversely affected.
(b) Use of facilities, etc. of other companies
SoftBank Corp. makes use of certain telecommunications lines and facilities owned by other operators
when constructing the telecommunications networks required for providing telecommunications services.
While SoftBank Corp. uses the telecommunications lines and facilities of multiple operators, in principle,
SoftBank Corp.’s business development, financial position, and results of operations could be adversely
affected if it becomes difficult to continue to use the facilities of these operators, or if usage agreements
are revised on disadvantageous terms for SoftBank Corp., by, for example, increasing utilization orconnection fees for those facilities.

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Risk Management: Risk Factors(c) Use of Yahoo! brands
In the businesses of SoftBank Corp. and Yahoo Japan Corporation, SoftBank Corp. makes use of Yahoo!
brands belonging to a subsidiary of U.S. company Verizon Communications Inc. in certain service names,such as Yahoo! JAPAN, Y!mobile, and Yahoo! BB. If SoftBank Corp. becomes unable to use these brands
due to a drastic change in its relationship with the company or other reasons, SoftBank Corp.’s businessdevelopment, financial position, and results of operations could be adversely affected.
(d) Procurement of various equipment
SoftBank Corp. procures telecommunications equipment, network devices, and so forth (including but
not limited to radio equipment for mobile phone base stations, for example). As a general rule, SoftBank
Corp. has adopted a policy of procuring equipment from multiple suppliers to build its network. Evenso, SoftBank Corp. expects that it may remain highly dependent on specific companies for equipment.
SoftBank Corp. may be unable to switch suppliers or equipment in a timely manner without requiring
large cost outlays should problems occur with the procurement of equipment in a case where SoftBank
Corp. relies heavily on a specific supplier. Such problems could include supply interruptions, delivery
delays, order volume shortfalls, and defects. Suppliers may also cease to provide the maintenance andinspection services required for telecommunications equipment to maintain performance. Either ofthese situations could impede SoftBank Corp.’s provision of services, making it difficult to acquire andretain customers; cause SoftBank Corp. to incur additional costs for changing a supplier; or lead to a
decline in sales of telecommunications equipment. This could adversely affect SoftBank Corp.’s businessdevelopment, financial position and results of operations.
(7) Laws, Regulations, and Systems
SBG conducts investment activities pursuant to laws, regulations, and systems; administrative guidanceand sanctions by government agencies (including but not limited to deregistration, revocation of licenses
and fines); and so forth (“laws and regulations”) in each country. Moreover, portfolio companies conductbusiness activities in compliance with laws and regulations in various fields in each country. Specifically, theselaws and regulations cover an expansive range of areas. Among them are laws and regulations pertaining toinvestments and various laws and regulations pertaining to businesses such as telecommunications services,internet advertising, e-commerce, energy, AI, robotics, ride sharing, finance and settlement services, and othercorporate business activities (including but not limited to laws and regulations related to business permits,
import and export activities, protection of personal information and privacy, the environment, product liability,
fair competition, consumer protection, anti-bribery, labor affairs, intellectual property, prevention of money
laundering, taxation, and foreign exchange). SBG and its portfolio companies are affected by these laws andregulations both directly and indirectly.
Revisions to laws and regulations, the enforcement of new laws and regulations, or new interpretations
and applications of laws and regulations (including amendments thereof) could hinder SBG’s investment
activities or its portfolio companies’ business activities. For example, SBG may be unable to develop its
investment activities and portfolio companies may be unable to develop their business activities in accordancewith expectations, new investments or businesses may be restricted, or monetization of investments may
be delayed or become impossible. In addition, incurring a new or increased financial burden could adversely
affect SBG’s consolidated and non-consolidated results of operations. The legal department of SBG collects
information on new or revised laws and regulations, mainly related to investment activities, and receives advice
from outside advisers.
Furthermore, in countries and regions in which SBG or its portfolio companies conduct business activities,
tax laws and regulations may be newly introduced or amended, or their interpretation or enforcement may

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be revised. Views differing with that of tax authorities may give rise to additional tax burdens. In thesecases, SBG’s consolidated and non-consolidated results of operations or financial position could be adversely
affected.
Apart from this, SBG has been undertaking measures to strengthen its Group compliance structure forcomplying with laws and regulations and to facilitate an improvement in the knowledge and awarenessof officers and employees through training sessions and other means. In spite of such efforts, if SBG and
its portfolio companies (including officers and employees) conduct activities in breach of those laws andregulations, regardless of whether they were aware of the breach or not, SBG and its portfolio companies
may be subject to administrative sanctions or guidance by government agencies (including deregistration,
revocation of licenses and fines), or may face cancellation of business agreements by business partners. As aresult, the credibility and corporate image of SBG and its portfolio companies may be impaired, or its businessactivities may be hindered. In addition, SBG may incur a financial burden, which could adversely affect SBG’sresults of operations and the asset value of its portfolio companies.
(8) Intellectual Property
Infringement of SBG’s SoftBank brand by a third party could impair the corporate image or credibility of SBG
and subsidiaries that employ the SoftBank brand. Additionally, infringement of Arm’s intellectual property bya third party could have a negative impact on Arm’s business development and results of operations. On theother hand, if portfolio companies were to unintentionally infringe on intellectual property rights held by athird party, such portfolio companies may be prevented from using the intellectual property or subjected toclaims for compensatory damages, license fees, and so forth from the third party. In all cases, the equity valueof SBG’s holdings, NAV, LTV, and consolidated and non-consolidated results of operations could be adversely
affected.
(9) Litigation
SBG faces the possibility of lawsuits by third parties claiming compensatory damages for the alleged
infringement of rights or benefits. These third parties may comprise shareholders (including current and pastshareholders of portfolio companies), portfolio companies, customers, business partners, and employees(including current and past employees of portfolio companies). Such lawsuits could hinder SBG’s investment
activities or may impair SBG’s corporate image, as well as create a financial burden that could adversely affect
SBG’s consolidated and non-consolidated results of operations.
(10) Sustainability
SBG believes that it is crucial to take the lead and implement essential activities to address Environmental,
Social and Governance (“ESG”) factors. SBG emphasizes the integration of ESG and management. Therefore,
it has appointed the CFO as Chief Sustainability Officer (“CSusO”), the manager responsible for sustainability.
Also, SBG has set up a Sustainability Committee chaired by the CSusO. The Sustainability Committee regularly
discusses ESG priorities that should be addressed to mitigate and avoid ESG risks, while strengthening ESGrelated disclosure. In investment activities, SBG has adopted a Group policy of formulating management plansfor evaluation processes at each investing entity and carrying out comprehensive investment evaluations, inorder to analyze the opportunities and risks associated with the sustainability aspects of portfolio companies.
However, SBG’s ESG activities may diverge significantly from the expectations of stakeholders, and SBG may beunable to conduct investment activities that give due consideration to sustainability. In these cases, portfolio
companies may be unable to develop their businesses as expected. This could have the effect of reducing theasset value of those portfolio companies (i.e., the equity value of SBG’s holdings).

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

064

Annotations
Breakdown of equity value of holdings

Notes on “NAV (Net Asset Value)”■ The sum of (a) and (b) below

page 8Calculation of net debt
• Net debt = SBG net interest-bearing debt
• SBG net interest-bearing debt = SBG gross debt - SBG cash position, etc.
• SBG gross debt = Consolidated gross debt - gross debt of subsidiaries (non-recourse) - gross debt of
the asset management subsidiary• SBG gross debt: adjusted (m) to (t) below(m) JPY Hybrid Bonds issued in September 2016: 50% of outstanding amount, which is recorded as
debt in consolidated B/S, is treated as equity(n) USD Hybrid Notes issued in July 2017: 50% of outstanding amount, which is recorded as equity inconsolidated B/S, is treated as debt(o) JPY Hybrid Loan executed in November 2017: 50% of outstanding amount, which is recorded as
debt in consolidated B/S, is treated as equity(p) JPY Hybrid Notes issued in February 2021: 50% of outstanding amount, which is recorded as debt
in consolidated B/S, is treated as equity(q) Deducting the financial liabilities relating to prepaid forward contracts using Alibaba shares, such as
collar contracts(r) Deducting the amount equivalent to the outstanding margin loan backed by SoftBank shares.
(s) Deducting the loan amount that is accounted as the amount borrowed through non-recourse assetback financing out of the total borrowing amount through a margin loan using T-Mobile shares
pledged as collateral (see (h) in “Calculation of equity value of holdings”)(t) Deducting the amount equivalent to the outstanding margin loan backed by Alibaba shares
executed in March 2021
• SBG cash position, etc. = Consolidated cash position, etc. - cash position, etc. of subsidiaries (nonrecourse) - cash position, etc. of the asset management subsidiary• Cash position etc. of subsidiaries that managed on a self-financing basis: the sum of cash position, etc.
of SoftBank, SVF1, SVF2, Arm, etc.
• Consolidated gross debt: excludes cash position of banking business of The Japan Net Bank (currently
PayPay Bank)• Gross debt of subsidiaries that managed on a self-financing basis: the sum of gross interest-bearing
debt of SoftBank, SVF1, SVF2, Arm, etc.

(a) Listed shares: calculated by multiplying the number of shares held by SBG by the share price of each listed share(b) Unlisted shares: calculated based on the fair value of unlisted shares, etc. held by SBG■ Value equivalent to SBG’s portion of an asset management subsidiary’s NAV, etc. + (c) below(c) The amount equivalent to the outstanding margin loan backed by Alibaba shares executed by the asset management subsidiaryin October 2020
■ Calculated based on the acquisition cost of SBG, excluding the number of shares held by SVF1
■ The sum of (d) to (f), less (g) and (h) below(d) Value calculated by multiplying the number of T-Mobile shares held by SBG (including the number of shares subject to call
options (101,491,623 shares) received by Deutsche Telekom AG) by the share price of T-Mobile(e) Fair value of SBG’s right to acquire T-Mobile shares (48,751,557 shares) for no additional consideration under certain conditions(f) Fair value of the right of a subsidiary of SBG to receive T-Mobile shares under certain conditions, in connection with thetransaction in which T-Mobile sold T-Mobile shares to a trust that issued cash mandatory exchangeable trust securities(g) The amount of derivative financial liabilities relating to the call options received by Deutsche Telekom AG(h) The loan amount that is accounted as the amount borrowed through non-recourse asset-backed financing out of the totalborrowing amount through a margin loan using T-Mobile shares pledged as collateral. (Because SBG has, as an exception,
guaranteed a portion of the $4.38 billion margin loan, $2.36 billion, the amount after deducting the $2.02 billion cap on theguaranteed obligations, is considered as a borrowing amount under non-recourse asset-backed financing. As a precondition for
SBG to fulfill its guarantee obligations, the lenders are obligated to first recover the amount to the maximum extent possible
from Alibaba shares that have been pledged as collateral for the margin loan).
■ Value equivalent to SVF2’s holding value + performance fees accrued■ Value equivalent to SBG’s portion of SVF1’s holding value + performance fees accrued, etc.
■ Calculated by multiplying the number of SoftBank shares held by SBG by the share price of SoftBank, less (i) below(i) The amount equivalent to the outstanding margin loan backed by SoftBank shares■ Calculated by multiplying the number of Alibaba ADSs (equivalent of the number of Alibaba shares held by SBG) as of December
31, 2020, by the ADS price, less (j) to (l) below(j) The sum of the amount to be settled at maturity (calculated by using the share price of Alibaba) of the prepaid forward
contracts using Alibaba shares, such as collar contracts and call spread(k) The amount equivalent to the outstanding margin loan backed by Alibaba shares executed by the asset management subsidiaryin October 2020(l) The amount equivalent to the outstanding margin loan backed by Alibaba shares executed in March 2021

Notes on “Total amount of compensation by title (fiscal 2020)”
Notes on “Our Transformation”

page 10

10

2
5

7

6

1

4
3

9

1 Professional monthly magazines that introduce PCs and software

by manufacturer
2 Electronics show held in Osaka, Japan, in 1981
3 PC game softwares released by Hudson Soft, with which SBG

signed an exclusive wholesale agreement
4 SoftBank Japan’s first publication Pocket Computer Library
5 Corporate logo used until December 2004
6 Mascots Harry Hawk and Honey Hawk of the Fukuoka SoftBank
HAWKS
7 The logo for Yahoo! BB, a comprehensive broadband commercial
service using ADSLSoftBank Group Corp. ANNUAL REPORT 2021

11
8

page 50

1. Aside from the amounts listed, there was no compensation paid to External Officers as Board Directors and Audit & Supervisory Board members
from the subsidiaries of SBG for fiscal 2020.
2. “Board Directors (excluding External Board Directors)” includes two Board Directors who resigned from their positions on the Board of Directors of
SBG on June 25, 2020, and November 1, 2020, respectively, and one Board Director who resigned from the position on the Board of Directors of
SBG on November 9, 2020, and was appointed as a Corporate Officer on the same day. “Total amount of compensation” and “Subtotals for eachtype of compensation” excluded the amount of compensation as the Corporate Officer after resigning from the position on the Board of Directors.
3. Pursuant to the resolution of the 38th Annual General Meeting of Shareholders held on June 20, 2018, regarding the annual aggregatecompensation of Board Directors, monetary compensation shall not exceed ¥5 billion per year, while compensation in the form of stock acquisitionrights allotted as stock options separately from the aforementioned compensation shall not exceed ¥5 billion per year.
4. Pursuant to the resolution of the 41st Annual General Meeting of Shareholders held on June 23, 2021, regarding the annual aggregatecompensation of Audit & Supervisory Board members, monetary compensation shall not exceed ¥160 million per year.

Notes on “Total consolidated compensation paid to respective Board Directors whose
total consolidated compensation is ¥100 million or more (fiscal 2020)” page 50

12

8 Yahoo! JAPAN top page (then)
9 ADSL modems distributed free of charge to promote the spread ofbroadband services
10 Airborne base stations and mobile base station vehicles deployed near

the venue to alleviate communication congestion during an event
11 The first mobile handset to feature a Cycloid Style LCD capable ofreceiving terrestrial digital TV broadcasts
12 Acquired Vodafone K.K (Left: William Morrow, then Representativeof Vodafone K.K.; Right: Masahiro Inoue, then President and CEO
of Yahoo Japan (currently Z Holdings))

Table of Contents

Message from Our CEO

1. Company name and subtotals for each type of consolidated compensation are stated based on the compensation agreements between each Board
Director and the Group.
2. “Of which undetermined amount” in “Share-based payment” refers to an amount of cash-settled share-based compensation, which was calculated
based on the share price at the end of this fiscal year because the settlement date had not arrived. This amount will fluctuate subject to the shareprice in the period up to the settlement date.
3. ¥228 million out of the share-based payment to Ken Miyauchi from SoftBank represents the amount to be paid in the form of restricted stock on
July 20, 2021, and will be recorded in the consolidated statement of income for the following fiscal year.
4. Marcelo Claure, Katsunori Sago, and Rajeev Misra resigned from their positions on the Board of Directors of SBG on November 9, 2020. On thesame day, Marcelo Claure was appointed as the Corporate Officer, Executive Vice President & COO; Katsunori Sago was appointed as the
Corporate Officer, Executive Vice President & CSO; and Rajeev Misra was appointed as the Corporate Officer, Executive Vice President. “Amount ofconsolidated compensation” and “Subtotals for each type of consolidated compensation” excluded the amount of compensation as the Corporate
Officers after resigning from their positions on the Board of Directors.
Katsunori Sago resigned from the position of Corporate Officer, Executive Vice President & CSO on March 31, 2021.
5. Other compensation to Marcelo Claure represents mainly expenses related to relocations of his activity base that were paid from SB Group US Inc.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

065

Financial Section

067 Graphs: Key Consolidated Financial Data
068 Eleven-Year Key Consolidated Financial Data
070 Management’s Discussion and Analysis ofResults of Operations and Financial Position
114 Consolidated Financial Statements
125 Notes to Consolidated Financial Statements
265 Independent Auditor’s Report

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

066

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

Gain on investments (Figures prior to FY2018 are not presented.)

Income before income tax

Net income attributable to owners of the parent / Basic EPS■■ Net income attributable to owners of the parent (left)(Billions of yen)
9,000(Billions of yen)
6,000

7,529.0

5,670.5

6,000

4,500

4,000

3,000

3,000

2,000

0

1,500

1,682.7
0712.5-1,410.2-3,000

’20

’19

(FY)

FY2020

0

’16

50.0

’18

’20

’19

(FY)

FY20201,426.3

634.08466.77643.501,500

1,411.2

1,039.00-2,000-961.6

’16

’17

’18

FY2020Net income attributable toowners of the parent

Basic EPS

+ ¥ 8.9 trillion YoY+ ¥ 5.6 trillion YoY+ ¥ 5.9 trillion YoY¥ 2,619.61

Equity attributable to owners of the parent /Ratio of equity attributable to owners of the parent to total assets(Billions of yen)
60,00045,750.5
36,096.5

10,213.1

9,000

31,180.5
6,000

24,634.2

15,0003,586.4
14.6

3,000

5,184.2(Billions of yen)
3,000

2,500
2,000

22.3

5,913.6

Share repurchaseunder ¥4.5T program

20

21.1

16.6

（%）
40

30

7,621.5

37,257.3

Share repurchase

Ratio of equity attributable to owners of
the parent to total assets (right)(Billions of yen)
12,00045,000

’16

’17

’18

FYE2020

’19

’20

(FYE)

0

’16

10

’17

’18

2,000

1,000

15.9

500

600

500

120
0

-1,500’20’19

Income before income tax■■ Equity attributable to owners of
the parent (left)

30,0003,000

2,619.61

Gain on investments

Total assets

(Yen)
4,500

4,988.0-478.50

384.6

’17

Basic EPS (right)(Billions of yen)
6,000

0

’20

’19

(FYE)

0

Aug 2015

Feb - Aug 2016

Feb - May 2019

FYE2020

Mar 2020 May 2021

Total assets

Equity attributable toowners of the parent

Ratio of equity attributable toowners of the parent to total assets

Share repurchase from March 2020 to May 2021

+22.8 % YoY+72.7% YoY

22.3%¥ 2.5 trillion

Notes: 1. Sprint and Brightstar ceased to be a subsidiary of the Company in FY2020. Operating results of Sprint and Brightstar are excluded from FY2018 and FY2019.
2. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. Basic EPS has been retroactively adjusted to reflect the impact of the share split.
3. The Company adopted IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” in FY2018, and IFRS 16 “Leases” in FY2019. The information for each previous fiscal year is not restated.
4. See page 75 for details of the ¥4.5 trillion program.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

067

(FY)

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

JGAAP
(Millions of yen)

Net sales ����������������������������������������������������������������������������������������������������������������������������������������������������
Operating income*1 ������������������������������������������������������������������������������������������������������������������������������������
Income before income tax ��������������������������������������������������������������������������������������������������������������������������
Gain (loss) on investments*1 ��������������������������������������������������������������������������������������������������������������������
Net income attributable to owners of the parent ����������������������������������������������������������������������������������������
Total assets ������������������������������������������������������������������������������������������������������������������������������������������������
Total equity attributable to owners of the parent ����������������������������������������������������������������������������������������
Interest-bearing debt*2 ������������������������������������������������������������������������������������������������������������������������������
Net interest-bearing debt*3 ������������������������������������������������������������������������������������������������������������������������
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 fiscal year-end ����������������������������������������������������������������������������������������

FY2011FY2012FY2013

FY2014

3,004,640
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
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
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

6,666,651
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
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

4.2
34.8
13.3

6.6
40.3
19.1

6.0
29.7
22.3

4.4
29.5
11.6

3.5
28.0
13.5

87.64
84.29
286.072.50

142.89139.38426.3520.00

166.26164.04676.7820.00

218.48217.34812.1720.00

281.10279.381,196.74
20.00

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

1,188,456
756
105
70,336

1,189,197
769
120
66,154(Units)Major Indicators
ROA �����������������������������������������������������������������������������������������������������������������������������������������������
ROE �����������������������������������������������������������������������������������������������������������������������������������������������
Ratio of equity attributable to owners of the parent to total assets �������������������������������������������������

%%%(Units)

Per share data*4
Basic EPS ���������������������������������������������������������������������������������������������������������������������������������������
Diluted EPS �����������������������������������������������������������������������������������������������������������������������������������
Equity per share attributable to owners of the parent ���������������������������������������������������������������������
Dividend per share �������������������������������������������������������������������������������������������������������������������������

¥
¥
¥
¥

Others(Units)Number of shares outstanding �������������������������������������������������������������������������������������������������������
Number of subsidiaries �������������������������������������������������������������������������������������������������������������������
Number of associates ���������������������������������������������������������������������������������������������������������������������
Number of employees (consolidated basis) �������������������������������������������������������������������������������������

’000

SoftBank Group Corp. ANNUAL REPORT 2021

IFRS

FY2010

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

068

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

IFRS
(Millions of yen)

Net sales �������������������������������������������������������������������������������������������������������������������������
Operating income*1 ���������������������������������������������������������������������������������������������������������
Income before income tax �����������������������������������������������������������������������������������������������
Gain (loss) on investments*1 �����������������������������������������������������������������������������������������
Net income attributable to owners of the parent �������������������������������������������������������������
Total assets ���������������������������������������������������������������������������������������������������������������������
Total equity attributable to owners of the parent �������������������������������������������������������������
Interest-bearing debt*2 ���������������������������������������������������������������������������������������������������
Net interest-bearing debt*3 ���������������������������������������������������������������������������������������������
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 fiscal year-end �������������������������������������������������������������

FY2020FY2015FY2016FY2017FY2018FY20198,881,777
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
1,025,999
712,526−
1,426,308
24,634,212
3,586,352
14,858,370
11,923,065
1,500,728(4,213,597)
2,380,746(386,505)
2,183,102

9,158,765
1,303,801
384,630−
1,038,977
31,180,466
5,184,176
17,042,188
13,617,254
1,088,623(4,484,822)
4,626,421
1,151,548
3,334,650

6,093,548
2,073,636
1,682,673−
1,411,199
36,096,476
7,621,481
15,685,106
12,056,031
1,171,864(2,908,016)
2,202,291
523,868
3,858,518

5,238,938−
50,038(1,410,153)(961,576)
37,257,292
5,913,613
14,272,208
11,027,565
1,117,879(4,286,921)
2,920,863(489,503)
3,369,015

5,628,167−
5,670,456
7,529,006
4,987,962
45,750,453
10,213,093
19,547,976
14,016,812
557,250(1,468,599)
2,194,077
1,293,710
4,662,725

2.3
17.4
12.6

6.3
46.0
14.6

3.7
23.7
16.6

4.2
22.0
21.1

(2.6)
(14.2)
15.9

12.0
61.9
22.3

201.25194.16
1,139.42
20.50

643.50637.82
1,646.20
22.00

466.77454.192,151.13
22.00

634.08628.273,380.33
22.00(478.50)(485.33)
2,619.32
44.00

2,619.61
2,437.29
5,588.80
44.00

1,146,900
739
122
63,591

1,089,282763
130
68,402

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

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

2,067,996
1,475
455
80,9091,738,517
1,408
535
58,786(Units)Major Indicators
ROA ��������������������������������������������������������������������������������������������������������������������
ROE ��������������������������������������������������������������������������������������������������������������������
Ratio of equity attributable to owners of the parent to total assets ����������������������

%%%(Units)

Per share data*4
Basic EPS ������������������������������������������������������������������������������������������������������������
Diluted EPS ��������������������������������������������������������������������������������������������������������
Equity per share attributable to owners of the parent ������������������������������������������
Dividend per share ����������������������������������������������������������������������������������������������

¥
¥
¥
¥

Others(Units)Number of shares outstanding ����������������������������������������������������������������������������
Number of subsidiaries ����������������������������������������������������������������������������������������
Number of associates ������������������������������������������������������������������������������������������
Number of employees (consolidated basis) ����������������������������������������������������������

’000

Notes: 1. The Company adopted IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” in FY2018, and IFRS 16 “Leases” in FY2019. The information for each previous fiscal year is not restated.
			 Terminology differences between JGAAP and IFRSs are as follows. (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 FY2013 have been retrospectively adjusted in accordance with the adoption of IFRIC 21 “Levies.”
3. As of June 1, 2015, GungHo Online Entertainment, Inc. (“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 FY2014 were revised
retrospectively and presented under discontinued operations. Furthermore, as of August 16, 2016, GungHo no longer qualified as an equity method associate.
4. The Company sold all of its shares in Supercell Oy (“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 FY2015 was revised retrospectively and presented under discontinued operations.
*1 From FY2020 “operating income” is no longer presented and “gain (loss) on investments” is newly presented. Information in FY2019 is restated in the same manner. For details, see “Changes in presentation of consolidated statement of income.”*2 Includes lease liabilities from FY2019. Deposits for banking business of The Japan Net Bank, Limited (currently PayPay Bank Corporation) are not included in interest-bearing debt.
*3 Calculated by subtracting cash position (cash and cash equivalents + short-term investments recorded as current assets (both excluding those of The Japan Net Bank, Limited (currently PayPay Bank Corporation))) from the presented interest-bearing debt.
*4 Basic EPS and diluted EPS are calculated based on net income attributable to owners of the parent (net income).
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. Per share information has been retroactively adjusted to reflect the impact of the share split.

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Management’s Discussion and Analysis of Results of Operations and Financial Position
As of June 23, 2021

Results of Operations
1. Highlights of results

2. Continued strong performance of investment business

Gain on investments of ¥7,529.0 billion– Gain on investments at SVF1, SVF2, and others of ¥6,292.0 billion• SVF1 recorded realized gain on sales of investments (net) of ¥423.7 billion, resulting from thesales of investments in Guardant Health (partial), OSIsoft, Uber (partial), and others. In addition,
SVF1 recorded unrealized gain on valuation totaling ¥4,285.1 billion for listed portfolio companies (including gains of ¥2,597.8 billion for Coupang and ¥661.1 billion for DoorDash). Unrealized gain on valuation (net) for unlisted portfolio companies totaled ¥1,193.0 billion.
• SVF2 recorded unrealized gain on valuation (net) of ¥490.3 billion, mainly due to strong stock
performance of listed portfolio companies such as KE Holdings.
– Gain on investments at Investment Business of Holding Companies of ¥945.9 billion:
In connection with the merger of Sprint and T-Mobile US, Inc. and the subsequent partial sale of
T-Mobile shares, gain relating to sales of T-Mobile shares of ¥421.8 billion, unrealized gain on
valuation of investments of ¥219.6 billion related to T-Mobile shares continued to be held by theCompany, and derivative gain of ¥264.4 billion resulting from an increase in the fair value of acontingent consideration were recorded. Conversely, investment loss from investments in listed
stocks and other instruments of ¥232.9 billion was recorded.
Income before income tax of ¥5,670.5 billion (increased ¥5,620.4 billion yoy)
– Finance cost of ¥307.3 billion*– Derivative loss (excluding gain (loss) on investments) of ¥480.3 billion*– Change in third-party interests in SVF1 of ¥(2,246.4) billion*
Net income attributable to owners of the parent of ¥4,988.0 billion (increased ¥5,949.5
billion yoy)–	Net income from discontinued operations of ¥711.2 billion was recorded, primarily reflecting gain
relating to loss of control of Sprint.

SVF1: 	During the fourth quarter, AUTO1, Coupang, and View were listed, bringing the total numberof listings for the fiscal year to six. As of the fiscal year-end, 11 out of a total of 81 portfolio
companies were listed.
SVF2: 	During the fourth quarter, Qualtrics was listed. As of the fiscal year-end, three out of a totalof 44 portfolio companies were listed.
SPACs: 	During the fourth quarter, seven special purpose acquisition companies (SPACs) controlled bysubsidiaries were listed, including three controlled by SBIA US, bringing the total number oflisted SPACs at the fiscal year-end to nine. One of the SPACs completed a merger with anoperating company.

3. Completion of the ¥4.5 trillion programS ale or monetization of assets: The Company completed sale or monetization of assets totaling¥5.6 trillion over the six months from April to September 2020, through the partial sale or monetizationof shares of T-Mobile, Alibaba, and SoftBank Corp.
Share repurchase: The size of the share repurchase was set at a total of up to ¥2.0 trillion. Of this,the Company repurchased shares for a cumulative total of ¥1,742.2 billion by March 31, 2021. The
Company completed the repurchase by acquiring a cumulative total of ¥2.0 trillion by May 12, 2021.
Debt reduction: The Company reduced debt by a total of ¥1 trillion by the fiscal year-end throughrepurchasing domestic corporate bonds and foreign currency-denominated corporate bonds, as well
as repaying senior loans and borrowings made under the commitment line.
The rest of the proceeds has been invested in highly liquid listed stocks in readiness for future
investment opportunities.

4. Dividend per share for fiscal 2020 is ¥44
5. Business integration of Z Holdings Corporation and LINE Corporation
completed on March 1, 2021

* recorded as a cost for the fiscal year
Notes: Abbreviations for Management’s Discussion and Analysis of Results of Operations and Financial Position
The fiscal year / Fiscal 2020: Fiscal year ended March 31, 2021
The first quarter: Three-month period ended June 30, 2020
The second quarter: Three-month period ended September 30, 2020
The third quarter: Three-month period ended December 31, 2020
The fourth quarter: Three-month period ended March 31, 2021
The previous fiscal year / Fiscal 2019: Fiscal year ended March 31, 2020
The fiscal year-end: March 31, 2021
The previous fiscal year-end: March 31, 2020

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See page 75 for details of the ¥4.5 trillion program.

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070

Changes in presentation of consolidated statement of income
SBG is a strategic investment holding company managing a portfolio of investments

Major impact from the COVID-19 pandemic on markets andbusinesses of the company

in a wide range of companies, made either directly (including investments through

During the fiscal year, the global economic situation was greatly affected by thesubsidiaries) or through investment funds (such as SVF1). On April 1, 2020, Sprint

spread of the novel coronavirus (COVID-19) and the pandemic that followed,

ceased to be a subsidiary of the Company following the completion of the merger

which continues to this day. Governments around the world are implementing

between Sprint and T-Mobile US, Inc. Given that investment activities have taken

fiscal stimulus and monetary easing measures to counter the economic impacts

on greater importance in the Company’s overall consolidated financial results, theof the pandemic, and expectations that vaccination programs progress in someCompany has revised the presentation of the Consolidated Statement of Income

countries will encourage greater economic activity have led to a sharp overall

starting from the first quarter.

market recovery in the second half of the fiscal year, with new capital continuing

Specifically, “operating income” is no longer presented and “gain (loss)

to flow in. In particular, the technology sector, where the Company focuses its

on investments” is newly presented to show investment performance in theinvestment strategies, has been positively impacted by the accelerated adoption of

consolidated financial results.

digital services to address the pandemic. In the fiscal year, the S&P 500 Information

In line with no longer presenting “operating income” in the Consolidated

Technology Sector was up 73%. These factors resulted in the strong performance ofStatement of Income, the Company has revised segment income in each reportable

the Company’s investments, particularly at SVF1 and SVF2, leading to a consolidated

segment to “income before income tax.”

gain on investments of ¥7,529,006 million for the fiscal year. However, there is no
guarantee that the current positive impact will be sustained in light of uncertainties

Consolidated Statement of Income after the revision of the presentation

associated with the pandemic, and the direction and degree of impact may vary frominvestment to investment.

Net sales

In particular, SVF1 recorded unrealized gain on valuation (net) of ¥5,478,148

Gross profit

million for the fiscal year, mainly due to the new listings of investees and theGain (loss) on investments• Gain (loss) on investments at Investment Business of Holding Companies• Gain (loss) on investments at SVF1, SVF2, and others• Gain (loss) on other investments

well as increases in the fair values of unlisted portfolio companies where listings havebeen decided, that had new funding rounds, or have seen increased customer usageof services during the COVID-19 crisis. Businesses in sectors such as e-commerce,• Selling, general and administrative expenses• Finance cost
• Income (loss) on equity method investments• Derivative gain (loss) (excluding gain (loss) on investments)*,etc.

entertainment, healthcare, education, food delivery, and the future of work havebenefited from the accelerated adoption of digital services. Many SVF1 companies
in these sectors have successfully raised additional funding from new and existing
investors at higher valuations than in prior rounds. The Company believes these new

Income before income tax

funding rounds reflect the strong underlying growth of each company’s business.

Net income attributable to owners of the parent* Derivative gain (loss) not included in “gain (loss) on investments” is presented as “derivative gain (loss) (excluding
gain (loss) on investments)”

SoftBank Group Corp. ANNUAL REPORT 2021

subsequent rise in stock prices supported by favorable stock market conditions, as

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Conversely, companies in sectors such as travel and hospitality are recovering at a
slower pace.

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071

OVERALL RESULTS FOR FISCAL 2020

1. Net sales(Millions of yen)

Net sales increased ¥389,229 million (7.4%) year on year, to ¥5,628,167 million. Net sales

Fiscal 2019

Fiscal 2020

ChangeNet sales

5,238,938

5,628,167

389,229

7.4%

2. Gain on Investments

Gross profit

2,654,665

2,874,929

220,264

8.3%

Total gain on investments was ¥7,529,006 million.

Gain on investments at Investment Businessof Holding Companies

484,308

945,944461,636

95.3%

Gain (loss) on investments at SVF1, SVF2,
and others(1,844,867)

6,292,024

8,136,891−

the Company recorded gain relating to sales of T-Mobile shares of ¥421,755 million, unrealized(49,594)

291,038

340,632−

gain on valuation of ¥219,608 million related to T-Mobile shares continued to be held by the(1,410,153)

7,529,006

8,939,159−

Company, and derivative gain of ¥264,395 million associated with an increase in the fair value of(2,060,080)(2,271,497)(211,417)

10.3%

the Contingent Consideration. Meanwhile, investment loss of ¥232,856 million from investment

Finance cost

(293,897)(307,250)(13,353)

4.5%

in listed stocks and other instruments was also recorded. In the previous fiscal year, a gain ofIncome on equity method investments

624,015

616,432(7,583)(1.2%)¥1,218,527 million relating to settlement of prepaid forward contracts using Alibaba shares was

Derivative gain (loss)(excluding gain (loss) on investments)

15(480,251)(480,266)−

Change in third-party interests in SVF1

540,930(2,246,417)(2,787,347)−(5,457)(44,496)(39,039)−

50,0385,670,456

5,620,418−(792,655)(1,303,168)(510,513)

64.4%(742,617)

4,367,288

5,109,905−

Change %increased in the SoftBank and Arm segments.

Continuing operations

Gain on investments

Gain (loss) on other investments
Total gain on investments
Selling, general and administrative expenses 

Other loss
Income before income tax
Income taxes
Net income from continuing operations

Gain on investments at Investment Business of Holding Companies was ¥945,944 million. In
relation to the merger of Sprint and T-Mobile and subsequent partial sale of T-Mobile shares,

recorded. For details, see “Investment Business of Holding Companies Segment.”

Gain on investments(Billions of yen)

7,529.08,000

Discontinued operations

291.0

Net income from discontinued operations(58,143)

710,948

769,091−

Net income(800,760)

5,078,236

5,878,996

−

6,000

Net income attributable to owners of theparent(961,576)

4,987,962

5,949,538

−

4,000

Total comprehensive income(1,290,339)

5,578,244

6,868,583

−

2,000

Comprehensive income attributable toowners of the parent(1,425,587)

5,482,739

6,908,326−

0

6,292.0

945.9

484.3
-1,844.9 -1,410.2

Note:	For the fiscal year, continuing operations and discontinued operations have been presented separately. To reflect this change inpresentation, figures for the previous fiscal year have been restated and presented in the same manner.

-2,000

-49.6
’19

’20

■ Investment Business of Holding Companies■ SVF1, SVF2, and others ■ Other investments

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072

Net income attributable to Alibaba and the Company’s income on equity method

Gain on investments at SVF1, SVF2, and others was ¥6,292,024 million. Realized gain on
sales of investments (net) of ¥423,683 million was recorded as a result of the sale of all sharesinvestments related to Alibaba(including share exchanges with the shares of affiliated portfolio companies) or partial sale ofTwelve months ended December 31

shares by SVF1 in some of its portfolio companies. In addition, SVF1 recorded unrealized gain on
valuation (net) totaling ¥4,285,133 million for listed portfolio companies, particularly Coupang,
DoorDash, and Uber, reflecting strong stock price performance, and ¥1,193,015 million forunlisted portfolio companies, as a result of increases in the fair value of investments where listings
have been decided or that had new funding rounds. SVF2 recorded unrealized gain on valuation

Net income attributable to Alibaba (US GAAP)Net income attributable to Alibaba (IFRSs)

Income on equity method investments(Reference) Effective exchange rate CNY / JPYchanges other than gain (loss) on investments are as follows.
Finance cost increased ¥13,353 million (4.5%) year on year, to ¥307,250 million. Interest expenses

Million CNY

172,126

159,164

Million CNY

Million CNY

164,042

146,275

2020

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

Income before income tax increased ¥5,620,418 million year on year, to ¥5,670,456 million. Major

Million CNY

Fiscal year ended March 31

such as KE Holdings Inc. (“KE Holdings”). For details, see “SVF1 and Other SBIA-Managed Funds

3. Income before income tax

2020

Alibaba(net) of ¥490,255 million, mainly due to strong stock performance of listed portfolio companies
Segment.”

2019

Income on equity method investments

2021

25.32%

25.02%

Million CNY

Million CNY

42,51036,197¥15.56¥16.31Million JPY

Million JPY

660,141

572,516

increased ¥20,069 million in the Investment Business of Holding Companies segment and ¥4,167
million in the SoftBank segment. On the other hand, interest expenses decreased ¥13,128 million in

Derivative loss (excluding loss on investments) deteriorated ¥480,266 million year on year,to ¥480,251 million. This is mainly due to the derivative loss of ¥504,048 million which was

the SVF1 and Other SBIA-Managed Funds segment.

recorded in connection with prepaid forward contracts using Alibaba shares entered into in
Income on equity method investments decreased ¥7,583 million (1.2%) year on year, to ¥616,432
million. Of this, income on equity method investments related to Alibaba was ¥572,516 million,(1)

November 2019 and from April to August 2020 (including the impact of amendments to some of
the contracts made in October and November 2020).

a decrease of ¥87,626 million (13.3%) year on year. Despite continuing strong performance in
Alibaba’s core operations, the decrease reflects a boost of ¥286,473 million in the previous fiscal

4. Net income attributable to owners of the parent

year as a result of Alibaba acquiring newly issued shares (33% equity stake) of Ant Small and Micro

Net income attributable to owners of the parent increased ¥5,949,538 million year on year, toFinancial Services Group Co., Ltd. (currently Ant Group Co., Ltd., “Ant Financial”) using consideration¥4,987,962 million.

from the transfer of certain intellectual property rights and assets held by Alibaba to Ant Financial
Income taxes increased ¥510,513 million year on year, to ¥1,303,168 million. In addition toand its subsidiaries.
In addition, the Company’s income on equity method investments related to Alibaba was lowered bycurrent income taxes recorded at SoftBank Corp. and Yahoo Japan Corporation, current income¥74,270 million as Alibaba recorded an expense in the quarter ended March 2021 for the fine levied bytaxes associated with the sale of T-Mobile shares were recorded. Meanwhile, deferred tax

China’s State Administration for Market Regulation pursuant to China’s Anti-Monopoly Law, which theexpenses were recorded due to revisions of the prepaid forward contracts using Alibaba shares.

Company recorded for the fiscal year as a significant event in the staggered three-month period.

On the other hand, a credit of income taxes of ¥256,060 million (profit) was recorded mainly due

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to the use of loss carryforwards, to which deferred tax assets had not been recognized, against
taxable income generated from the partial sale of SoftBank Corp. shares held through SoftBank
Group Japan Corporation (“SBGJ”) (see “3. Partial sale of SoftBank Corp. shares” under“Program to sell or monetize ¥4.5 trillion of assets (¥4.5 trillion program)”).
Net income from discontinued operations increased ¥769,091 million year on year, to ¥710,948
million. The Company recorded a gain of ¥720,842 million relating to loss of control of Sprint inconnection with Sprint ceasing to be a subsidiary of the Company, following the completion of
the merger between Sprint and T-Mobile US, Inc.
In addition, on September 17, 2020 (U.S. time), the Company reached an agreement to sell
all of its shares in Brightstar (2) and completed the transaction on October 22, 2020 (U.S. time).
Brightstar’s net income or loss up until the completion of the transaction is included in the net
income from discontinued operations.
5. Comprehensive income
Comprehensive income increased ¥6,868,583 million year on year, to ¥5,578,244 million. Of this,comprehensive income attributable to owners of the parent increased ¥6,908,326 million year on
year, to ¥5,482,739 million.

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074

Program to sell or monetize ¥4.5 trillion of assets (¥4.5 trillion program)
On March 23, 2020, SBG announced a program to sell or monetize ¥4.5 trillion of assets

Asset sales or monetization for the six months from April to September 2020

held to fund share repurchases and improve the Company’s financial status through(Trillions of yen)initiatives such as debt reduction. The funds obtained from the sale and monetization

Amount of sale or monetization

were to be used to repurchase up to ¥2 trillion of the Company’s common stock, withthe balance to be used for debt redemptions, bond buybacks, and to increase cash
reserves (collectively, the “¥4.5 trillion program”). The Company completed the sale ormonetization of the target amount of ¥4.5 trillion of the assets as of the second quarter-

April to June July to September
2020
2020

1. Partial sale of T-Mobile shares and borrowings using
T-Mobile shares

1.9

Total

0.5

2.4

end. For the six months from April to September 2020, the amount of sale or monetization

2. Partial monetization of Alibaba shares through prepaid
forward contracts

1.5

0.2

1.7

of assets totaled ¥5.6 trillion. Regarding the share repurchases of up to ¥2 trillion, from

3. Partial sale of SoftBank Corp. shares

0.3

1.2

1.5

May to July 2020 the Company set the size of the repurchase of up to ¥2 trillion of its

Total

3.7

1.9

5.6

shares. The Company had repurchased a cumulative total of ¥2 trillion by May 12, 2021
and completed the share repurchase. With regard to debt reduction, the Company
reduced debt by a total of ¥1 trillion by the fiscal year-end through the repurchaseNote: T ransactions completed by June 30, 2020 were converted at ¥107.74 to the U.S. dollar, and transactions completed by September 30, 2020 were converted at ¥105.80 to the U.S. dollar.

1. Completion of the merger of Sprint and T-Mobile US, Inc. and partial sale ofof domestic corporate bonds and foreign currency-denominated corporate bonds, as

T-Mobile shares, etc.

well as by repaying senior loans and borrowings made under the commitment line. To

a. Completion of the merger of Sprint and T-Mobile US, Inc.

further improve the financial status, the rest of the proceeds has been invested in highly

On April 1, 2020, the merger of Sprint, which had been a U.S. subsidiary of the Company,

liquid listed stocks through the Company’s asset management subsidiary SB Northstar in

and T-Mobile US, Inc. in an all-stock transaction (the “Merger”) was completed. As consider-readiness for future investment opportunities. With these, the ¥4.5 trillion program has

ation for the Merger, the Company received 304,606,049 T-Mobile shares and the right tobeen completed.

acquire 48,751,557 T-Mobile shares for no additional consideration if certain conditions are

For details on the investments in listed stocks by SB Northstar, see “Investment Businessof Holding Companies Segment.”met (the “Contingent Consideration”). As of the same date, Sprint ceased to be a subsidiary of the Company, and the combined new company, T-Mobile, became an equity method
associate of the Company with 24.7% shareholding. For details, see “(1) Sprint” under “6.
Discontinued operations” in “Notes to Consolidated Financial Statements.”
b. Partial sale of T-Mobile shares
Subsequently, the Company, through its subsidiary, sold 173,564,426 shares on June 26, 2020((a) and (b) in table “Details of the Partial Sale” in the next page), 5,000,000 shares on July 16,
2020 ((c) in the table), and 19,750,000 shares on August 3, 2020 ((d) in the table) (the “Partial

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Sale”) of the Company’s 304,606,049 shares of common stock of T-Mobile. T-Mobile disposedof the shares purchased from the Company’s subsidiary through a public offering in the U.S., aprivate placement through a trust issuing cash mandatory exchangeable trust securities, a saleto T-Mobile Board Director Marcelo Claure (Corporate Officer, Executive Vice President & COO
of SBG), and a rights offering, with the proceeds transferred to the Company’s subsidiary.
As a result of the decrease in voting rights following the sale of shares on June 26, 2020,
the Company lost its significant influence over T-Mobile and, on the same date, T-Mobile wasremoved as an equity method associate of the Company.
Details of the Partial Sale
Transaction

Number of shares soldTotal sale value(shares)(Millions of U.S. dollars)(a) Public offering in the U.S. by T-Mobile

154,147,026

15,877(b) Private placement through a trust by T-Mobile

19,417,400

1,667(c) Sale by T-Mobile to T-Mobile Board Director Marcelo Claure

5,000,000

515(d) Rights offering by T-Mobile

19,750,000

2,034

Number of T-Mobile shares held by the Company before and after the Partial Sale(a) Number of shares held before the Partial Sale

304,606,049(b) Number of shares sold through the Partial Sale

198,314,426(c) Number of shares held after the Partial Sale ((a) – (b))

106,291,623(d) Number of shares subject to the Deutsche Telekom Call Options

101,491,623(e) Number of shares held after the Deutsche Telekom Call Options are
exercised ((c) – (d))

4,800,000(f) Number of shares that can be acquired through the Contingent Consideration

48,751,557(g) Number of shares held if the shares are acquired through the Contingent
Consideration ((e) + (f))

53,551,557

c. Borrowings using T-Mobile shares
On July 30, 2020, SBG’s wholly owned subsidiary borrowed $4.38 billion using its T-Mobile
shares pledged as collateral (margin loan). Because SBG has, as an exception, guaranteed
a portion of the margin loan, $2.3 billion is considered as the amount of assets monetizedunder the ¥4.5 trillion program after deducting the maximum amount of the guarantee
obligations ($2.08 billion at the time of the monetization). As a precondition for SBG to

In addition, Deutsche Telekom AG (“Deutsche Telekom”) received call options for
101,491,623 T-Mobile shares continued to be held by the Company after the Partial Sale (the“Deutsche Telekom Call Options”).(3)( i ) For a call option over 44,905,479 shares out of the 101,491,623 shares, the strikeprice is $103.00 per share. Deutsche Telekom can exercise this option at any timeafter the option grant date.
(ii) For a call option over 56,586,144 shares out of the 101,491,623 shares, the strikeprice is equal to the average of the daily volume-weighted average prices of theshares of T-Mobile common stock for each of the 20 trading days immediately prior
to the date of exercise. Deutsche Telekom can exercise this option after the exercise
of option ( i ) above or after October 2, 2020.

fulfill its guarantee obligations, the lenders are obligated to first recover the amount to the
maximum extent possible from Alibaba shares that have been pledged as collateral for themargin loan.
2. Partial monetization of Alibaba shares through prepaid forward contracts
From April to August 2020, SBG’s wholly owned subsidiaries, West Raptor Holdings 2, LLC,
Skybridge LLC, Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, and Tigress2020 Holdings Limited entered into several prepaid forward contracts using Alibaba shareswith financial institutions. The Company procured an aggregate amount of $15.4 billion.
Alibaba remains an equity method associate of the Company following these transactions.
Of the abovementioned prepaid forward contracts concluded from April to August
2020, in October and November 2020 the cap (upper limit) and floor (lower limit) for the

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price of shares to be settled were revised for the collar contract, and the forward contract

Share repurchases based on the ¥4.5 trillion program

was changed to a collar contract with a set cap and floor for the price of the shares to be

As of May 12, 2021

settled. At the same time, the cap and floor for the price of shares to be settled were also
revised for the prepaid forward contract using Alibaba shares (collar contract) concluded

Date of Board resolution

Total number of shares
repurchased

Total amount ofrepurchase

Repurchase period

May 15, 2020

81,940,400

JPY 500 billion

From June 17, 2020
to August 3, 2020

June 25, 2020

70,579,400

JPY 500 billion

From September 15, 2020
to December 11, 2020

early in April 2021 in view of the current level of Alibaba’s share price. For details of these,

July 30, 2020

106,661,500

JPY 1 trillion

see “25. Interest-bearing debt” in “Notes to Consolidated Financial Statements.”

From December 14, 2020
to May 12, 2021

Total

259,181,300

JPY 2 trillion

3. Partial sale of SoftBank Corp. shares(Reference: Status of share repurchase resolved before the ¥4.5 trillion program)in the previous fiscal year. These revisions were made in response to a rise in the price of
Alibaba shares at the time, with a view to capturing the upside potential during a phaseof further share price increases. Moreover, a portion of the collar contract was terminated

In May and September 2020, SBG sold a total of 1,268,061,400 shares of common stock of
its subsidiary SoftBank Corp. out of the 3,182,919,470 shares held through SoftBank Group

March 13, 2020

107,679,300

JPY 500 billion

From March 16, 2020
to June 15, 2020

Japan Corporation (“SBGJ”) and received a total of ¥1.5 trillion, broken down as follows.
Reduction of debt based on the ¥4.5 trillion programa. May 2020: 240,000,000 shares (shareholding ratio: 5.0%) sold for ¥310.2 billionb. S eptember 2020: 1,028,061,400 shares (shareholding ratio: 21.7%) sold for ¥1.2 trillion
SoftBank Corp. continues to be a subsidiary of the Company following these sales and its
strategic importance to the SoftBank Group remains unchanged. Considering its importance,
the Company and SBGJ have no intention of selling additional SoftBank Corp. shares and

SBG reduced debt by ¥1 trillion as follows by the fiscal year-end, completing the debt
reduction based on the ¥4.5 trillion program.
a. R epurchase of domestic unsecured corporate bonds with a total face value of ¥167.6
billion (July 2020)b. E arly repayment of senior loans with an aggregate face value of ¥300.0 billion (September
2020)

intend to continue to hold the remaining shares held for the medium to long term.
Since SoftBank Corp. continues to be a subsidiary of SBG following these sales, theamounts equivalent to the after-tax gain on the sales were recorded as “capital surplus” in
the Consolidated Statement of Financial Position. In addition, a credit of income taxes of¥256,060 million (profit) was recorded, mainly due to the SBGJ use of loss carryforwards

c. R epurchase of foreign currency-denominated corporate bonds with a total face value of$0.98 billion and €0.90 billion (¥224.9 billion in total) (March 2021)
d. R
 epayment of borrowings of ¥310.0 billion made under the commitment line (March
2021)

against the taxable income generated from these transactions, to which deferred tax assets
had not been recognized.

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077

Entry into agreement for sale of all shares in Arm
On September 13, 2020 (U.S. time), SoftBank Group Capital Limited (“SBGC”), a wholly(Billions of U.S. dollars)

Transaction value

owned subsidiary of the Company, and SVF1 entered into a Share Purchase Agreement (the
(1) C
 ash

“Purchase Agreement”) with NVIDIA Corporation (“NVIDIA”), a U.S.-based semiconductor

Time of receipt

12.0 (a)2.0manufacturer, whereby the Company will sell all of the shares in its wholly owned
subsidiary Arm held by SBGC and SVF1 to NVIDIA in a transaction valued up to $40 billion(approximately ¥4.2 trillion) (the “Transaction”). The Transaction is subject to regulatory
approvals (including those of the U.K., China, the European Union, and the U.S.) and otherclosing conditions. The Transaction is expected to take approximately 18 months to close

Consideration
for the(2) N VIDIA
Company
sharesfollowing the execution of the Purchase Agreement. In the fourth quarter, it was decided(3) E arn-out (cash
Up to 5.0
or NVIDIA(or 10.32 million
shares)shares)that the Internet-of-Things Services Group (ISG) businesses, which are outside the scopeof the Transaction, would be managed separately from Arm’s remaining business. Arm
expects the ISG businesses to be transferred from Arm by December 2021. Accordingly, thesegment classification of the Company was revised, and for the fiscal year, the operating
results of Arm are presented for the Arm segment excluding the contribution of the
ISG businesses, while those of the ISG businesses are now included in “Other” in thereportable segments. The operating results of these businesses for the previous fiscal year
have also been retrospectively presented.

(b) 10.0
21.5(44.37 million
shares)(4) N VIDIA share compensation
for Arm employees
Total

1.5

Received on September 2020($0.75 billion of which wasreceived by Arm as
consideration for a license
agreement)
Upon closing
Upon closing

Upon closing; subject tosatisfaction of specific financial
performance targets of Arm
Upon closing; to be received
by Arm employees

Up to 40.0

Notes:
1. The consideration described in (1) and (2) and, if any, (3) will be allocated to SBGC and SVF1 in accordance with their respective ownership ratios ofArm shares (75.01% to SBGC and 24.99% to SVF1). The proceeds received by SVF1 will be further allocated to SVF1’s limited partners, including theCompany, based on a designated waterfall.
2. Transaction value of (2) and (3) is calculated based on NVIDIA shares with a price of $484.6007 per share (the average of the daily closing prices of
NVIDIA common stock for the 30 consecutive trading days ended September 10, 2020, rounded up to four decimal points)

Upon the closing of the Transaction, Arm will cease to be a subsidiary of the Company
and will no longer be consolidated into the Company’s financial results; however, Arm(1) $12.0 billion in cash

will continue to be classified under continuing operations in the Company’s consolidated(a) $2.0 billion

financial statements until the closing of the Transaction is deemed highly probable.

Upon the execution of the Purchase Agreement on September 13, 2020, SBGC andUpon closing of the Transaction, SBGC and SVF1 expect to receive in the aggregate

Arm received cash totaling $2.0 billion. Of this amount, $1.25 billion was received as

approximately 6.7-8.1% of outstanding NVIDIA shares (excluding treasury shares),a deposit for part of the consideration in the Transaction (refundable to NVIDIA subject

depending on the final amount of the earn-out, if any (as discussed below). NVIDIA is notto certain conditions until the closing of the Transaction, after which such amount will

expected to become a subsidiary or an associate of the Company following the completion

become non-refundable) and $0.75 billion was received by Arm as consideration for aof the Transaction.

license agreement that Arm and NVIDIA entered into concurrently with the execution of
the Purchase Agreement.

A breakdown of the transaction value is presented in the next table.

(b) $10.0 billion
Upon the closing of the Transaction, SBGC and SVF1 will receive cash totaling $10.0 billion.

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(2) $21.5 billion in NVIDIA shares (44.37 million shares)

ISG businesses) during the fiscal year ending March 31, 2022 as set out in the PurchaseUpon the closing of the Transaction, SBGC and SVF1 will receive 44,366,423 shares of NVIDIA

Agreement. If Arm’s financial performance exceeds the agreed floors but does not meetcommon stock, which was determined based on a price of $484.6007 per share (the averagesuch targets, the earn-out will be prorated. If Arm’s financial performance does not meetof the daily closing prices of NVIDIA common stock for the 30 consecutive trading days ended

such floors, the earn-out will not be payable.

September 10, 2020, rounded up to four decimal points). Of the NVIDIA common stock to be

If SBGC and SVF1 elect to receive the earn-out in the form of NVIDIA shares, the fairreceived, 2,063,554 shares will be subject to escrow to satisfy certain indemnification obligations

value of those shares will be recorded as financial assets at FVTPL upon the closing of theof SBGC and SVF1 as set out in the Purchase Agreement.

Transaction, and thereafter changes in their fair value will be recognized as net income or

The shares received will be recorded at their fair value at the closing of the Transaction as

loss at the end of each quarter.

financial assets at FVTPL, and thereafter changes in their fair value will be recognized as net(4) NVIDIA stock awards representing $1.5 billion to be granted to Arm employees

income or loss at the end of each quarter.

Upon the closing of the Transaction, Arm employees will receive $1.5 billion in NVIDIA(3) Earn-out up to $5.0 billion (cash or 10.32 million NVIDIA shares)

stock awards from NVIDIA.

An earn-out of up to $5.0 billion in cash or up to 10,317,772 shares of NVIDIA common
stock (based on a price of $484.6007 per share, being the average of the daily closing

Since Arm is a subsidiary of the Company, unrealized valuation gain and loss associatedprices of NVIDIA common stock for the 30 consecutive trading days ended September 10,

with the change in valuation on SVF1’s holding of Arm shares, as well as dividends income

2020 (rounded up to four decimal points)) is payable to SBGC and SVF1 subject to thereceived from Arm, is included in segment income as “gain (loss) on investments at SVF1,

satisfaction of certain financial performance targets for each of revenue and EBITDA of Arm

SVF2, and others,” but is eliminated in consolidation and not included in “gain (loss) on(in each case subject to certain adjustments and excluding any amounts attributable to theinvestments at SVF1, SVF2, and others” in the Consolidated Statement of Income.

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Major impact of the merger between Sprint and T-Mobile US, Inc. and the partial sale of T-Mobile shares on the consolidated financial statements forfiscal 2020
Impact of the merger of Sprint and T-Mobile US, Inc.

Impact of the partial sale of T-Mobile shares

Impact on the Consolidated Statement of Income

Impact on the Consolidated Statement of Income	A gain relating to loss of control of Sprint of ¥720.8 billion was recorded as “net income
from discontinued operations.”

Gain (loss) on investments
	Gain relating to sales of T-Mobile shares of ¥421.8 billion was recorded as “gain (loss) on
investments at Investment Business of Holding Companies.” This consisted of a gain of

Impact on the Consolidated Statement of Financial Position¥280.3 billion on sales of shares of associates, a gain of ¥296.0 billion on the revaluation

Assetsof T-Mobile shares continued to be held by the Company, a derivative loss relating to the• The fair value of T-Mobile shares, which were received as consideration for the Merger,

Deutsche Telekom Call Options of ¥154.5 billion, a realized loss of ¥3.1 billion on the saleof ¥2.7 trillion was recorded as “investments accounted for using the equity method”

of T-Mobile shares, and a gain of ¥3.0 billion on the derecognition of derivative liabilities.

(as a result of the partial sale of T-Mobile shares mentioned below, the T-Mobile sharescontinued to be held by the Company were reclassified to “investment securities” at

Impact on the Consolidated Statement of Financial Position
Assetsfair value).
• The Contingent Consideration, which was received as consideration for the Merger,

	T-Mobile shares continued to be held by the Company were recorded as “investmentof ¥460.7 billion was recorded as “derivative financial assets.” An increase in the

securities” at fair value (fiscal year-end: ¥1,474.4 billion). T-Mobile shares continued tofair value of ¥264.4 billion was recognized as of the fiscal year-end, after the fairbe held by the Company are measured at fair value at each quarter-end, with changes

value of ¥196.3 billion was recorded at the time of the Merger (this increase wasrecorded as “gain (loss) on investments at Investment Business of Holding Companies”

recorded as derivative gain as “gain on investments at Investment Business of Holdingin the Consolidated Statement of Income. Unrealized gain on valuation of investments

Companies”).

of ¥219.6 billion related to T-Mobile shares was recorded for the period from June 26,
2020 to the fiscal year-end.
Liabilities
	The Deutsche Telekom Call Options were recorded as “derivative financial liabilities” atfair value (the fiscal year-end: ¥204.8 billion). The Deutsche Telekom Call Options aremeasured at fair value at each quarter-end, with changes recorded as derivative gain andloss under “gain (loss) on investments at Investment Business of Holding Companies” in
the Consolidated Statement of Income.
Impact on the Consolidated Statement of Cash Flows
Cash flows from investing activities
	Proceeds from the sale of T-Mobile shares of ¥2.1 trillion were recorded as “proceedsfrom sales/redemption of investments.”

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080

Summary of Segment Information
Net sales

Segment income (income before income tax)

(Billions of yen)(Billions of yen)

6,000

5,670.5

6,000

5,628.2
238.6

5,238.9

Segments

92.6

Investment Business of Holding Companies

847.9

Main businesses• Investment activities by SBG and its subsidiaries

209.8

Core companies• S oftBank Group Corp.
• S oftBank Group Capital Limited• S oftBank Group Japan Corporation• S B Northstar LP

205.8
5,000

4,500

197.1

SVF1 and Other SBIA-Managed Funds
4,000

3,000

3,000

1,500

4,026.8

44.1

913.7

2,000

50.0

760.9

0

-33.9
-24.0

Main businesses• Provision of mobile communications services, sale of mobile
devices, and provision of broadband and other fixed-line
communications services in Japan• Internet advertising and e-commerce businessCore companies• SoftBank Corp.
• Z Holdings Corporation

Arm-1,412.6

Main businesses•	Design of microprocessor intellectual property and related technology•	Sale of software tools and provision of related services-11.1-1,500-299.71,000Core companies• S B Investment Advisers (UK) Limited• S oftBank Vision Fund L.P.
• S oftBank Vision Fund II-2 L.P.

SoftBank

815.6

5,204.4
4,862.5

Main businesses• Investment activities by SVF1 and SVF2

Core companies• Arm Limited

Changes in reportable segments
0

-24.6

-26.4
’19

’20

(FY)

-3,000
’19

’20

(FY)

Investment Business of Holding Companies*1
SVF1 and Other SBIA-Managed Funds*1
SoftBank
Arm
Other*2
Reconciliations
Consolidated*1 Net sales are not recorded for this segment as it is not engaged in the sale of goods and services.
*2 Other includes the business results from PayPay Corporation, Fortress, SoftBank Latin America Fund, and Fukuoka SoftBank HAWKS Corp.

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New establishment of the Investment Business of Holding Companies segment
In light of the greater importance of investment activities to the Company’s overall consolidated financial results, theInvestment Business of Holding Companies segment was newly established in the first quarter. See “OVERVIEW”
under “Investment Business of Holding Companies Segment” for the overview of the segment.
Removal of Brightstar segment
Following the classification of Brightstar as discontinued operations, Brightstar has been removed from the Company’s
reportable segments since the second quarter.

Who We Are

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Financial Section

Corporate Information

081

Investment Business of Holding Companies Segment
1. Recorded gain relating to sales of T-Mobile shares of ¥421.8 billion, unrealized gain on valuation of ¥219.6 billion related to T-Mobile shares continued to be held by the Company,and derivative gain of ¥264.4 billion resulting from an increase in the fair value of the Contingent Consideration
2. Completed the ¥4.5 trillion program*1
3. Recorded investment loss of ¥232.9 billion from investment in listed stocks and other instruments (total investment gain and loss of SBG and SB Northstar)*1 For details of the sale and monetization of assets, share repurchases, and improvement of the Company’s financial status through initiatives such as debt reduction under the ¥4.5 trillion program, see “Program to sell or monetize ¥4.5 trillion of assets (¥4.5 trillion program).”OVERVIEW

management subsidiary SB Northstar has been acquiring and selling listed stocks and other

This segment is led by SBG, which conducts investment activities, either directly or throughinstruments and engaging in derivative and credit transactions related to listed stocks. The

subsidiaries, as a strategic investment holding company. The segment consists of SBG, SBGC,

scale of its investments in listed stocks and other instruments fluctuates depending upon

SBGJ, asset management subsidiary SB Northstar, and certain other subsidiaries engaged

SBG’s funding needs, cash on hand, and the status of the assets held by SBG.

in investment and financing activities. Gain and loss on investments at Investment Business

The interest in SB Northstar is indirectly held 67% by SBG and 33% by SBG’s Representativeof Holding Companies comprises gain and loss on investments held by SBG either directly

Director, Corporate Officer, Chairman & CEO Masayoshi Son. Masayoshi Son’s interest is deductedor through its subsidiaries, but does not include gain and loss on investments pertaining tofrom gain and loss on investments at SB Northstar as a non-controlling interest; therefore, 67%

subsidiaries’ shares, such as dividend income from subsidiaries or impairment loss relating toof the gain and loss on investments impacts net income attributable to owners of the parent.

subsidiaries’ shares.
The companies comprising this segment hold approximately 110 portfolio companies, including
Alibaba, T-Mobile, and WeWork Inc. (“WeWork”),*2 as well as investees of SB Northstar. They
are either equity method associates (such as Alibaba) or investments classified as financial assets

Segment income (income before income tax) /Gain on investments

at FVTPL. With regard to the financial results of portfolio companies classified as equity method(Billions of yen)associates, income and loss are recorded as “income (loss) on equity method investments” in

1,200

proportion to equity interest. Investments classified as financial assets at FVTPL are measured atfair value every quarter, and any change in fair value is recorded in the Consolidated Statement of

900

946.1

913.7
760.9

Income as “gain (loss) on investments.”*2 Gain and loss on investments in WeWork shares held by SVF1 is included in the SVF1 and Other SBIA-Managed Funds segment.

600

484.3

Investment in listed stocks and other instruments by the asset management subsidiaries
300

The Company has been investing in highly liquid listed stocks from the first quarter, to diversify
assets held by the Company and to manage surplus funds. This has been done while being firmly
committed to its stated financial policies on its loan-to-value (LTV) ratio and cash position.

0

These investments were made by SBG in the first quarter, but from the second quarter, asset

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’20

■ Segment income (income before income tax)

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Financial Section(FY)■ Gain on investments

Corporate Information

082

Furthermore, if, at the end of the fund life (12 years + 2-year extension), SB Northstar has any

A Gain on investments: ¥946,107 million

unfunded repayment obligations to SBG, Masayoshi Son will pay his pro rata share of any such

•	Gain relating to sales of T-Mobile shares of ¥421,755 million was recorded. This gain resulted

unfunded obligations based upon his relative ownership percentage of SB Northstar.

from (1) a gain of ¥280,341 million on sales of shares of associates in connection with the saleof 173,564,426 shares of the 304,606,049 T-Mobile shares held on June 26, 2020; (2) a gainof ¥296,013 million on the revaluation of T-Mobile shares continued to be held by the Company following the exclusion of T-Mobile from the Company’s equity method associates; (3) aderivative loss of ¥154,491 million relating to the call options received by Deutsche Telekom for

FINANCIAL RESULTS(Millions of yen)

101,491,623 T-Mobile shares held by the Company; and (4) a realized loss on sales of invest-

Change %ments of ¥3,122 million from the sales of 5,000,000 T-Mobile shares held by the Company on

Fiscal 2019

Fiscal 2020

484,308

946,107461,799

95.4% A

Gain relating to sales of T-Mobile shares

−

421,755

421,755−

Gain relating to settlement of prepaid
forward contracts using Alibaba shares

1,218,527−(1,218,527)−

Realized loss on sales of investments at
asset management subsidiaries−(20,537)(20,537)−

Gain on investments

Unrealized gain on valuation of
investments at asset management
subsidiaries

ChangeJuly 16, 2020 and a further 19,750,000 shares on August 3, 2020, as well as a derivative gain of¥3,014 million following the derecognition of derivative liabilities.
•	Realized loss on sales of investments at asset management subsidiaries of ¥20,537 million andunrealized gain on valuation of investments at asset management subsidiaries of ¥134,237
million were recorded. This was due to investments in listed stocks and other instruments by SB
Northstar.

−

134,237•	
Derivative loss on investments at asset management subsidiaries of ¥610,690 million was record134,237−

ed. This was due to recording losses mainly related to call options on listed stocks and short stock

Derivative loss on investments at asset
management subsidiaries−(610,690)(610,690)−

Realized gain on sales of investments

17,777

222,161

204,384−

Unrealized gain (loss) on valuation of
investments(690,669)

608,448

1,299,117−

gain of ¥222,009 million on investments SBG made in listed stocks. The latter was mainly due to

Derivative gain (loss) on investments(66,343)

185,769

252,112−the recording of valuation gain of ¥219,608 million on investment in T-Mobile shares recognized
during the period from June 26, 2020 to the fiscal year-end, as well as recording unrealized gain

Other

5,016

4,964

(52)

(1.0%)

Selling, general and administrative
expenses(75,099)(102,276)(27,177)

36.2%

Finance cost

(198,535)(218,604)(20,069)

10.1% B

Income on equity method investments

657,232

601,364(55,868)(8.5%) C

Derivative loss
(excluding gain (loss) on investments)
Other gain

(1,886)(477,536)(475,650)

47,72011,872(35,848)(75.1%)

Segment income (income before
income tax)

913,740

760,927(152,813)(16.7%)SoftBank Group Corp. ANNUAL REPORT 2021

− D

index futures contracts at SB Northstar.
•	Realized gain on sales of investments of ¥222,161 million and unrealized gain on valuation of
investments of ¥608,448 million were recorded. The former was mainly due to recording realizedon valuation of investments of ¥124,420 million for Social Finance, Inc., ¥72,994 million for Lemonade, Inc., and ¥49,462 million for Berkshire Grey, Inc.(4) to reflect an increase in their fair values.
Unrealized gain of ¥42,288 million on investments SBG made in listed stocks was also recorded.
•	
Derivative gain on investments of ¥185,769 million was recorded. This was mainly due to therecording of a gain of ¥264,395 million, representing a rise in the fair value of the right topurchase T-Mobile shares for no additional consideration if certain conditions are met, which
was received as consideration for the merger between Sprint and T-Mobile US, Inc.

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083

Derivative Gain (Loss) on Alibaba Prepaid Forward Contracts

B Finance cost: ¥218,604 million (increased ¥20,069 million year on year)•	Interest expenses at SBG(5) increased ¥12,406 million to ¥210,649 million. This was mainly due
to an increase in interest-bearing debt as a result of wholly owned subsidiaries conducting fundprocurement entering into several prepaid forward contracts using Alibaba shares from April to

Alibabashare priceAugust 2020 with financial institutions.
C Income on equity method investments: ¥601,364 million (decreased ¥55,868 million

Amendmentof contracts

Signing

year on year)•	
Income on equity method investments related to Alibaba was ¥572,516 million, a decrease

$2.7
bn

$1.7
bn

of ¥87,626 million (13.3%) year on year. Despite continuing strong performance in Alibaba’s-$0.18 bncore operations, the decrease reflects a boost of ¥286,473 million in the previous fiscal year
as a result of Alibaba acquiring newly issued shares (33% equity stake) of Ant Financial using

-$1.7
bn

consideration from the transfer of certain intellectual property rights and assets held by Alibaba
to Ant Financial and its subsidiaries.

-$0.3 bn

In addition, the Company’s income on equity method investments related to Alibaba was

-$5.5
bn

-$2.0
bn

lowered by ¥74,270 million as Alibaba recorded an expense in the quarter ended March 2021
for the fine levied by China’s State Administration for Market Regulation pursuant to China’s

Derivative
loss

-$0.9
bn

Deferredtax expenses

-$0.9
bn

Impacton net income

-$2.6
bn

-$0.08 bn

Day1 loss on
the amendment-$0.26 bn(Deferred tax expenses)

Anti-Monopoly Law, which the Company recorded for the fiscal year as a significant event in
the staggered three-month period.

-$3.8
bn

•	
Income on equity method investments of ¥24,736 million related to T-Mobile for the period
from April 1 to June 25, 2020 was recorded (such income was not recorded for the previous
fiscal year).
D Derivative loss (excluding gain (loss) on investments): ¥477,536 million(Billions of yen)•	
Derivative loss of ¥504,048 million was recorded in connection with the prepaid forward
contracts using Alibaba shares entered into in November 2019 and from April to August 2020
(including the impact of amendments to some of the contracts made in October and November 2020).

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FY20Q1FY20Q2FY20Q3

FY20Q4

Fiscal 2020

Derivative gain (loss)(excluding gain (loss) on
investments)(179.5)(586.9)280.9(18.5)(504.0)

Deferred tax expenses(34.1)

184.4(94.5)

(8.8)

47.0

DAY1 Loss (deferred
tax expenses) due torevisions of the prepaid
forward contracts−−(275.8)−(275.8)Impact on net income(213.6)(402.6)(89.3)(27.3)(732.8)Financial Section

Corporate Information

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth084

Investment in listed stocks and other instruments by the asset management subsidiaries
Main impact on the financial position and gain (loss) on investments(Millions of yen)

Consolidated Statement of Financial Position
Investor
SBG

Investment type
Actual stocks

Account

SB Northstar

15,535Investments from asset
management subsidiaries

755,250
1,427,286(8,713)

Borrowed securities*2

Long call options oflisted stocks

Derivative financial
assets in asset management
subsidiaries

176,627

Short call options oflisted stocks

Derivative financial
liabilities in asset management
subsidiaries(9,283)

Short stock index
futures contracts−

Derivatives
Total return swap
contracts related tolisted stocks

Forward contracts
related to listed stocks

Q1

Q2

Q3

Q4

FY202064,470102,768

40,681

14,090222,009

Unrealized gain (loss) on valuation of
investments*1

20,88075,693(41,526)(12,759)

42,288Realized gain (loss) on sales of investments
at asset management subsidiaries−(8,060)(84,399)

71,922(20,537)

Unrealized gain (loss) on valuation of
investments at asset management
subsidiaries*3−(95,082)

200,740

28,416

134,074

Derivative loss on investments at asset
management subsidiaries−(292,346)(285,256)(33,088)(610,690)

85,350(217,027)(169,760)

68,581(232,856)

Gain (loss) on investments attributable tonon-controlling interests*4−

131,829

56,305(22,417)

165,717

Gain (loss) on investments attributableto owners of the parent*5

85,350(85,198)(113,455)

46,164(67,139)Management: The Foundation Supporting Our Growth

Financial Section−

Derivative financial
assets in asset management
subsidiaries

7,057

Derivative financial
liabilities in asset management
subsidiaries(5,390)Derivative financial
assets in asset management
subsidiaries

4,372*1 Some of the listed shares acquired by SBG during the first and second quarters were transferred to SB Northstar during the second quarter. The
difference between the acquisition value paid by SBG and the value for its transfer to SB Northstar (the “Difference Amount”) for a portion of
the transferred shares that was sold outside the Group by SB Northstar is included in “realized gain (loss) on sales of investments.” The Difference
Amount for the portion of shares that continued to be held by SB Northstar at the end of the fiscal year is included in “unrealized gain (loss) on
valuation of investments.” When SB Northstar sells the listed shares outside the Group, the corresponding Difference Amount is reclassified from“unrealized gain (loss) on valuation of investments” to “realized gain (loss) on sales of investments.”*2 The fair value of the securities borrowed for short credit transactions*3 After elimination of intercompany transactions*4 33% of the gain (loss) on investments at SB Northstar*5 Excludes impacts such as selling, general and administrative expenses and tax expenses.

SoftBank Group Corp. ANNUAL REPORT 2021

Account
Realized gain on sales of investments*1(Parentheses show liabilities)

Securities pledged as collateral inasset management subsidiaries
Credit transactions

Gain (loss)

FYE2020 balance

Investment securities

Actual stocks, etc.

Consolidated Statement of Income

Table of Contents

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Gain (loss) on investments at
Investment Business of Holding
Companies

Who We Are

Growth Assets

Corporate Information

085

Impact of the asset management subsidiaries on the Company’s Consolidated
Statement of Financial Position*1

Status of Assets(Millions of yen)a. Actual stocks, etc.

(Millions of U.S. dollars)

March 31, 2021

Cash and cash equivalents
Investments from asset management subsidiaries
Securities pledged as collateral in asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other financial assets
Other
Total assets
Interest-bearing debt
Derivative financial liabilities in asset management subsidiaries
Other
Total liabilities
Investments from Delaware subsidiaries (defined below)*2
Equivalent amount of cash investments by SBG in Delaware subsidiaries
Equivalent amount of loans to Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Retained earnings
Exchange differences on translating foreign operations
EquityFair value as of March 31, 2021

221,281755,250
1,427,286
188,056
126,472
14,4072,732,752
1,866,521
14,673
19,226
1,900,420
1,348,963
39,786
1,289,284
19,893(506,265)(10,366)
832,332A
B
C*1 SB Northstar’s statement of financial position, excluding the impact of Alibaba shares contributed in kind to SB Northstar
by SBG via Delaware subsidiaries and investments made by SB Northstar in SPACs controlled by SBIA US, is presented forreference to show the impact of SB Northstar on the Consolidated Statement of Financial Position of the Company.
*2 Investment from the Company’s subsidiaries, Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3
L.L.C. (“Delaware subsidiaries”), to the asset management subsidiary, SB Northstar.

Calculation of non-controlling interests(Millions of yen)

Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Gain (loss) attributable to non-controlling interests*3
Exchange differences on translating foreign operations
Non-controlling interests (interests of Masayoshi Son)

19,893(168,714)(4,043)(152,864)

AInterests of SBG
Non-controlling interests (interests of Masayoshi Son)
EquitySoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

D
C

Message from Our CEO

876
19,907(Millions of U.S. dollars)

D(Millions of yen)

985,196(152,864)
832,332

265
10
575
6,211
3,182
1,030
382
328
1,180
385
88
1,320
15
441
54
3,481
140

*1	Investments into the three SPACs that are controlled by SBIA US are eliminated as intercompany transactions in the consolidated financial statements.
*2 The NVIDIA shares are held by SBG.

b. Derivatives*3 One-third of B in the table

Interests in equity (C above)

Stock
AbCellera Biologics Inc.
Adobe Inc.
Alphabet Inc. Class C Capital Stock
Amazon.com, Inc.
Facebook, Inc.
Microsoft Corporation
Netflix, Inc.
Pacific Biosciences of California, Inc.
PayPal Holdings, Inc.
salesforce.com, inc.
Sana Biotechnology, Inc.
Taiwan Semiconductor Manufacturing Company Limited ADR
4D Molecular Therapeutics, Inc.
16 SPACs
Including three SPACs controlled by SBIA US *1
OthersNVIDIA Corporation*2
OthersConvertible bonds
Total

Fair value as of March 31, 2021*1 Notional principal*2

Long call options of listed stocks
Short call options of listed stocks
Total return swap contracts related to listed stocks
Forward contracts related to listed stocks
Total

1,595
(84)
15
39
1,565

13,386(2,691)
2,534
75
13,304*1 Parentheses show liabilities.
*2 Parentheses show short positions.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

086

Investments in WeWork

Main interest-bearing debt in this segment

A wholly owned subsidiary of the Company other than SVF1 (hereinafter within

Borrower

Type

SBG

Borrowings¥1,152.9 billion

FYE2020

Corporate bonds¥4,745.5 billion

in WeWork or are parties to contracts with WeWork are collectively referred to as the

Lease liabilities¥13.4 billion“WeWork Investment Subsidiary”) has invested in WeWork, an associate of the Com-

Commercial paper¥246.5 billion

pany that operates flexible office spaces. Separately, SVF1 has invested in WeWork andits affiliates. As of the fiscal year-end, the cumulative amount of equity investments by(Wholly owned subsidiaries
conducting fund procurement*)
West Raptor Holdings, LLC
West Raptor Holdings 2, LLC
Skybridge LLC
Skylark 2020 Holdings Limited
Scout 2020 Holdings Limited
Tigress 2020 Holdings Limited

the WeWork Investment Subsidiary and SVF1 in WeWork and its affiliated companies
Prepaid forward contracts
using Alibaba shares(floor contracts and collar
contracts)

totaled $10.83 billion (not including a tender offer for a total of $922 million of We¥3,085.7 billion

Work shares completed in April 2021). The fair value of WeWork’s entire equity in the
Company’s valuation was $3.8 billion as of the fiscal year-end.
On March 25, 2021, WeWork entered into a definitive agreement with BowX
Acquisition Corp. (“BowX”), a special purpose acquisition company (SPAC), providing

Skywalk Finance GK

Borrowings using Alibaba
shares¥894.1 billion

Moonlight Finance GK

Borrowings using SoftBank
Corp. shares¥498.7 billion

Borrowings using T-Mobile
shares¥481.3 billion

Delaware Project 6 L.L.C.

“Investments in WeWork,” the wholly owned subsidiaries of the Company that invest

for a business combination with BowX that is expected to result in WeWork becoming
publicly listed on the Nasdaq Capital Market or New York Stock Exchange (NYSE) (the“Merger Transaction”). The Merger Transaction is expected to be completed during
the three-month period ending September 2021, subject to receipt of BowX stockholder approval and the satisfaction of other customary closing conditions. The transaction implies a pre-money enterprise value of the company resulting from the merger

SB Northstar

Borrowings¥1,866.5 billion* Borrowings of these wholly owned subsidiaries conducting fund procurement are non-recourse to SBG, except for the
borrowing using T-Mobile shares which SBG partially guarantees as an exception.

(the “Merged Company”) of approximately $9 billion. The transaction is expected toprovide the Merged Company with approximately $1.3 billion of cash, including a fullycommitted $800 million PIPE (private investment in public equity), which will enable
the Merged Company to fund its growth plans into the future. For details of the Merger Transaction, refer to the joint press release announced by WeWork and BowX dated
March 26, 2021, “WeWork to Become Publicly Traded Via SPAC Merger with BowX
Acquisition Corp.” After the completion of the Merger Transaction, the Company’s
economic ownership of the Merged Company (fully diluted, including the stake heldby SVF1) is expected to be approximately 56%. Pursuant to the certificate of incorporation of the Merged Company, the Company (together with SVF1) will be restricted

SoftBank Group Corp. ANNUAL REPORT 2021

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Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information087

from exercising voting rights over more than 49.9% of the voting securities present andOffer, or in the alternative, compensation for damages arising from the termination of thevoting at any meeting of stockholders, and the Company (including SVF1) will be entitled toTender Offer.

designate four out of nine directors on the board of directors of the Merged Company. The

The Company entered into a settlement agreement (the “Settlement Agreement”) regard-

Company hence does not have control over the Merged Company. Therefore, the Merged

ing the Lawsuits with WeWork, We Holdings LLC, and Adam Neumann in February 2021.

Company will not be a subsidiary of the Company and instead it will be an associate of theUnder the Settlement Agreement, the WeWork Investment Subsidiary agreed to purchasecommon stock and preferred stock of WeWork at a price of $19.19 per share from (i) We

Company.
Details and progress of the agreements between the Company and WeWork dated Octo-

Holdings LLC via a private sale in February 2021 and (ii) certain other shareholders of We-

ber 22, 2019 (specifically, the master transaction agreement, (the “MTA”)) and in the fiscal

Work via a tender offer launched in March 2021 and completed in April 2021. The aggregate

year are as follows.

amount of these two purchases was $1.5 billion. Each of the Lawsuits has been dismissedwith prejudice.

Exercise Price Reduction of Existing Commitment and Early Payment

The Company recorded an impairment loss of ¥54,277 million for the purchase of shares

Pursuant to the MTA, on October 30, 2019, the WeWork Investment Subsidiary paid the fullfrom We Holdings LLC, representing the difference between the acquisition cost and the fairamount of $1.5 billion for the existing commitment that was originally expected to be invest-

value at the time of the acquisition. Subsequently, the Company recorded a gain on reversal

ed in April 2020, by lowering the exercise price from $110.00 per share to $11.60 per share.

of impairment loss of ¥21,634 million, reflecting an increase in the fair value of its holdings

Of this advance payment for investment, a $200 million portion was converted into preferredof common stock following the conclusion of the Merger Transaction between WeWork andstock of WeWork in November 2019 while the remaining $1.3 billion portion was converted

BowX.
The tender offer launched, pursuant to the Settlement Agreement, in March 2021 wasinto preferred stock of WeWork in April 2020.

considered as a forward contract and accounted for as a derivative. The difference ofTender Offer¥76,823 million between the fair value of the common stock and preferred stock scheduled

Pursuant to the MTA, the WeWork Investment Subsidiary had agreed to commence a tender

for acquisition and the planned acquisition amount was recorded as “derivative financial lia-

offer (the “Tender Offer”) worth up to $3.0 billion to purchase common stock and preferredbilities (current)” in the Consolidated Statement of Financial Position as of the fiscal year-end.

stock of WeWork from certain shareholders of WeWork, other than the Company, at a

Moreover, for the fiscal year, the difference of ¥17,594 million between the fair value of theprice of $19.19 per share. The WeWork Investment Subsidiary launched the Tender Offer incommon stock scheduled for acquisition and the planned acquisition amount was recorded

November 2019, but the WeWork Investment Subsidiary withdrew and terminated the Ten-as “derivative loss (excluding gain (loss) on investments)” and the difference of ¥56,127 mil-der Offer in April 2020, asserting certain closing conditions were not satisfied. In response,lion between the fair value of the preferred stock scheduled for acquisition and the plannedin April and May 2020, lawsuits (the “Lawsuits”) were brought against the Company andacquisition amount was recorded as a loss under “gain (loss) on investments at Investment

SVF1 by WeWork, under the direction of the Special Committee of the Board of Directors

Business of Holding Companies” in the Consolidated Statement of Income.

of WeWork, and by the founder and former CEO of WeWork, Adam Neumann, by himself
and through We Holdings LLC (his affiliated holding company), seeking closing of the Tender

SoftBank Group Corp. ANNUAL REPORT 2021

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Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

088

Credit Support and Notes Purchaseperiod of 18 months from the closure of the Merger Transaction, whichever comes first. As

The Company agreed in the MTA to provide to WeWork (a) credit support for a $1.75 billion

consideration for this conversion of preferred stock into common stock and commitment

letter of credit facility provided by financial institutions, and the WeWork Investment Subsidi-

to extend credit support by the Company as co-obligor to the credit facility as in (a), theary agreed to purchase or arrange to purchase (b) up to $2.2 billion in unsecured notes and (c)Company plans to acquire warrants that are exercisable for common stock of the Merged

up to $1.1 billion in senior secured notes to be issued by WeWork.

Company at the price of $0.01 per share, subject to appropriate adjustment, when each

Regarding (a), in December 2019, the Company entered into an agreement with financial
institutions that designates the Company as a co-obligor with WeWork, while the two parties

is executed upon the conversion and exchange and upon the conclusion of the agreement
modification of (a), as applicable.

separately agreed that the Company has the right of indemnification against WeWork if andwhenever the Company services such obligations. Regarding (b), the WeWork Investment

The (a) credit support for a $1.75 billion letter of credit facility provided by financial institu-

Subsidiary entered into an agreement with WeWork in December 2019. As of the fiscal year-

tions to WeWork corresponds to a financial guarantee contract and the (b) purchase of up

end, the WeWork Investment Subsidiary has purchased $1.8 billion of the unsecured notes.

to $2.2 billion in unsecured notes to be issued by WeWork corresponds to a commitment

In exchange for entering into such agreements regarding (a) and (b), the Company received

to provide a loan at a below market interest rate (“loan commitment”). The allowance forwarrants that are exercisable for WeWork preferred stock at an exercise price of $0.01 per

expected credit losses for the financial guarantee contract and loan commitment is measured

share as consideration. As of the fiscal year-end, the Company has acquired 130 million

at the higher of either the amount of initially recognized financial liabilities less accumulatedshares of preferred stock of the 136 million shares available under the warrants.

amortization or the amount of the expected credit losses. At the previous fiscal year-end,

Regarding (c), the Company’s obligation pursuant to the MTA to purchase or arrange to

the Company recorded allowance for financial guarantee contract losses of ¥89,202 million

purchase such debt ceased to exist upon the termination of the Tender Offer as it was subject

and allowance for loan commitment losses of ¥145,133 million as “other financial liabilities

to and conditioned upon the completion of the Tender Offer. However, the WeWork Invest-(current)” in the Consolidated Statement of Financial Position. At the fiscal year-end, thement Subsidiary and WeWork entered into an agreement regarding (c) in August 2020. As ofCompany recorded allowance for financial guarantee contract losses of ¥24,381 million andthe fiscal year-end, none of the secured senior notes had been issued.

allowance for unused loan commitment losses of ¥10,218 million as “other financial liabilities

Moreover, in conjunction with WeWork’s agreement relating to the Merger Transaction(current)” in the Consolidated Statement of Financial Position.

with BowX on March 25, 2021, the Company has also agreed with WeWork and BowX
regarding the conversion and exchange of WeWork preferred stock held by the WeWork

Exchange of WeWork China and WeWork Asia Shares for Preferred Stock of We-

Investment Subsidiary into common stock of the Merged Company, and in addition, re-Work

garding (a), a commitment to extend credit support by the Company as co-obligor to theIt was agreed in the MTA that all of SVF1’s interests in WeWork Greater China Holding Com-

credit facility until February 2024, subject to the acceptance of the extension by the finan-pany B.V. (“WeWork China”) and WeWork Asia Holding Company B.V. (“WeWork Asia”)

cial institutions as a result of the negotiation between them and the Company together

were to be exchanged for preferred stock of WeWork. Among these, WeWork Asia shareswith WeWork, and for (c), an amended senior secured notes facility of up to $550 million

were exchanged for WeWork’s preferred stock at $11.60 per share in April 2020. Mean-

to be purchasable by the WeWork Investment Subsidiary until February 12, 2023 or for awhile, the exchange of WeWork China shares for WeWork’s preferred stock was canceled.

SoftBank Group Corp. ANNUAL REPORT 2021

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Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information089

Investments and Loans to WeWork from the WeWork Investment Subsidiary(Millions of U.S. dollars)

Consolidated Statement of Financial Position
Cumulative
amount ofinvestments
and loans

Investment type

Consolidated Statement of Income

Carrying amount(Parentheses show liabilities)
Cumulative
gain (loss)

Common stock

Preferred stock
Of $1.5 billion paid in October 2019, $1.3
billion before conversion to preferred stock of
WeWork as of the previous fiscal year-end

Account

FYE2019

FYE2020

Account

Investment securities−−

Loss from financial
instruments at FVTPL

Warrants exercisable for common stock of the
Merged Company (before exercise)
Derivatives related to the tender offer thatstarted in March 2021

14

173

Investment securities

885

1,521

406

−

165

26

−

126

Derivative financial assets

Derivative financial liabilities

FY2019−(694)

Purchase of unsecured notes*2
Liabilities related to loan commitment*

2

Liabilities related to financial guarantee
contract*2
Total

6,580

(6,292)

1,800

44

−

(256)

Other financial assets
Other financial liabilities

−

140

1,800

(72)

1,470

1,152

−

Loss on equity method investments*

(40)

(109)

Other loss

(113)

(307)

(3,213)

112

(894)

−

(703)

(22)

−

126

−

(166)

Gain (loss) from financial
instruments at FVTPL

Derivative gain (loss) on
investments
Derivative loss
(excluding gain (loss) on
investments)
Derivative loss on investments

Total

FY2020(417)
1Investments accounted for using
the equity method

Other financial assets

Breakdown Breakdown
omittedomittedWarrants exercisable for acquisition of preferredstock of WeWork (before exercise)Gain (loss)

−

(528)

(5,380)

(894)

−

1,173

−

44

(1,334)

(92)

(826)

570

(819)

(220)

(459)

599

(2,153)861(1,285)

1,213

Other gain (loss)*1 WeWork became the Company’s associate on October 30, 2019. As a result, net loss of WeWork from October 30, 2019 to December 31, 2021 corresponding to the Company’s holding of common stock (2.75% as of the previous fiscal year-end and 6.11% asof the fiscal year-end, both of which were before dilution) was recorded.
*2 Allowances for losses from the financial guarantee contract and the loan commitment are recorded as “other financial liabilities” in the Consolidated Statement of Financial Position. The Company did not record gains or losses relating to the agreement on thesecontracts on the Consolidated Statement of Income at the time of execution, since the Company acquired consideration for the agreement (warrants convertible for preferred stock of WeWork at $0.01 per share). Subsequently, at the previous fiscal year-end,
the Company recorded provision for allowance for losses following a deterioration in WeWork’s credit risk, which was reversed during the fiscal year mainly due to the improvement of WeWork’s credit risk. For liabilities related to the loan commitment, when
the WeWork Investment Subsidiary purchased the unsecured notes, a corresponding amount was reversed from “other financial liabilities” and deducted from the initial recognition amount of loan receivable recorded as “other financial assets.” The unsecured
notes are regularly amortized from the time when the loan receivable was recognized. Liabilities related to financial guarantee contract are regularly amortized from the fourth quarter of the previous year, when the guarantee started.

SoftBank Group Corp. ANNUAL REPORT 2021

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Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

090

SVF1 and Other SBIA-Managed Funds Segment
1. Gain on investment (net) was ¥6,357.5 billion. Segment income, after deductingchange in third-party interests, was ¥4,026.8 billion.
• SVF1– Realized gain on sales of investments (net) of ¥424.2 billion: Sold investments in Guardant
Health (partially), OSIsoft, Uber (partially), and others.
– Unrealized gain on valuation of investments (net) of ¥5,523.1 billion from investments
held at the fiscal year-end
		 · Recorded ¥4,285.1 billion valuation gain for listed portfolio companies.
Stock prices of all listed portfolio companies performed well. Valuation gain of ¥2,597.8
billion was recorded for Coupang and ¥661.1 billion for DoorDash.
		 · Recorded ¥1,238.0 billion valuation gain (net) for unlisted portfolio companies.
• SVF2– Unrealized gain on valuation of investments (net) of ¥490.3 billion:
		 · Recorded ¥494.1 billion valuation gain for KE Holdings and other listed portfolio
companies, reflecting strong stock price performance.

2. Progress of investments• SVF1– Investments before exit: Held 81 investments (including 11 listed portfolio companies)
as of the fiscal year-end at cost totaling $74.9 billion, with the fair value amounting to$120.7 billion.
– Cumulative gross gain* since SVF1’s inception reached $55.0 billion, including cumulative
realized gain of $7.2 billion, cumulative derivative gain of $1.5 billion, and cumulative
dividend income of $0.5 billion.
• SVF2– Held 44 investments (including three listed portfolio companies) as of the fiscal year-end
at cost totaling $6.7 billion, with the fair value amounting to $11.2 billion.
• Other– In the fourth quarter, three SPACs controlled by SBIA US were listed.

* Cumulative gross gain is before deducting third-party interests, tax, and expenses.

OVERVIEW
Segment results mainly include the results of the investment and operational activities of
SoftBank Vision Fund 1 (SVF1) and SoftBank Vision Fund 2 (SVF2). The funds are managed by
SBIA, a wholly owned subsidiary of the Company established in the U.K., which is authorized andregulated by the Financial Conduct Authority.
SVF1 aims to maximize returns from a medium- to long-term perspective, through large-scale
investments in high-growth-potential companies leveraging AI, particularly in private companies
valued at over $1 billion at the time of investment, colloquially known as “unicorns.” SVF1’s
investment period ended on September 12, 2019. The remaining undrawn capital is reserved forfollow-on investments in existing portfolio companies (including investments in joint ventureswith them), fixed distributions, and operating expenses. In principle, the life of SVF1 is until
November 20, 2029 (unless extended for two additional one-year periods by SBIA).
SVF2 launched in October 2019 with committed capital from SBG, aiming to facilitate thecontinued acceleration of the AI revolution through investment in market-leading, tech-enabled
growth companies across vintage years. As of the fiscal year-end, SBG is the sole limited partner
investing in SVF2, with a total committed capital of $20.0 billion (which has been increased to$40.0 billion as of June 23, 2021).

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

Segment income (income before income tax) /Gain on Investments at SVF1, SVF2, and others(Billions of yen)

9,000

6,357.5
6,000

4,026.83,000

0-1,412.6-3,000-1,844.9
’19

’20

(FY)

■ Segment income (income before income tax)
■ Gain on Investments at SVF1, SVF2, and others

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information091

To bridge the Company’s private and public investing strategies by enabling it to potentiallypursue a wider range of investment opportunities beyond the investment mandate for the private

Outline of principal funds in the segment
As of March 31, 2021

funds, in the fiscal year, SBIA US initiated investment through SPACs. In the fourth quarter,
SPACs controlled by SBIA US, SVF Investment Corp., SVF Investment Corp. 2, and SVF Investment
Corp. 3, listed on the Nasdaq in January, March, and March 2021, respectively. A total of $1.15
billion was raised through these listings. Each SPAC is an investment vehicle incorporated for the
purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganizationor similar business combination with one or more businesses that the company has not yet

SoftBank Vision Fund 1
Major limited partnership
Total committed capital(Billions of U.S. dollars)
General partner

identified at the time of the offering, and it aims to complete such business combination within
two years from the closing of each offering. The SPACs intend to identify, acquire, and manage
businesses in technology-enabled sectors, leveraging the Company’s access to a wide range ofInvestment period
Minimum fund life

compelling investment opportunities through its broad international presence and deep local

SoftBank Vision Fund 2

SoftBank Vision Fund L.P.
98.6
The Company: 33.1*1
Third-party investors: 65.5
SVF GP (Jersey) Limited(The Company’s wholly owned
overseas subsidiary)Ended on September 12, 2019
Until November 20, 2029
(in principle)

SoftBank Vision Fund II-2 L.P.
20.0
The Company: 20.0*2
SVF II GP (Jersey) Limited(The Company’s wholly owned
overseas subsidiary)
Investment period and minimum
fund life are not presented asthey are subject to change
following the participation of
third-party investors.

networks. After such business combinations, the combined companies are expected to cease to
be controlled by SBIA US.

*1 The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm shares (all said
shares have been contributed) and $2.5 billion earmarked for purposes of an incentive scheme related to SVF1.
*2 As of June 23, 2021, the Company’s committed capital to SVF2 has been increased to $40.0 billion.

For details of SPACs, see “8. Special purpose acquisition companies sponsored by theCompany” in “Notes to Consolidated Financial Statements.”

See pages 22 and 23 for a complete list of SVF1 and SVF2’s portfolio companies.

Capital deployment of SVF1
As of March 31, 2021

(Billions of U.S. dollars)

Total

The Company

Third-party
investors

Committed capital (A)

98.6

33.1

65.5

Drawn capital(6) (B)

85.4

29.3

56.1

Return of capital (non-recallable) (C)

13.8

0.8

13.0

Outstanding capital (D) = (B) – (C)

71.6

28.5

43.1

13.2

3.8

9.4

Remaining committed capital (E) = (A) – (B)Note: T he Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm shares (all said
shares have been contributed) and $2.5 billion earmarked for purposes of an incentive scheme related to SVF1.

As of the fiscal year-end, SBG has contributed $6.8 billion of its committed capital to SVF2.

SoftBank Group Corp. ANNUAL REPORT 2021

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

092

FINANCIAL RESULTS

sale by SVF1 of all of its shares in eight portfolio companies(7) and a portion of its shares in(Millions of yen)five portfolio companies.

Fiscal 2019

Fiscal 2020

ChangeGain (loss) on investments at SVF1, SVF2,
and others(1,844,867)

6,357,462

8,202,329−

Realized gain on sales of investments 

58,340419,640

361,300

619.3%

Unrealized gain (loss) on valuation of
investments(1,917,694)

5,897,059

7,814,753−

were listed in the fiscal year, and Uber. In addition, unrealized valuation gain (net) totaling

Change in valuation for the fiscal year

(1,877,682)

6,013,404

7,891,086−$11,679 million was recorded for unlisted portfolio companies, as a result of increases in the

Reclassified to realized gain recordedin the past fiscal year*(40,012)(116,345)(76,333)−

12,84829,84917,001132.3%

145

1,091

946

652.4%

1,494

9,823

8,329

557.5%

Selling, general and administrative
expenses(86,484)(74,194)

12,290(14.2%)

Finance cost

(23,547)(10,419)

13,128(55.8%) B

Change in third-party interests in SVF1

540,930(2,246,417)(2,787,347)

−

1,394

391

(1,003)(72.0%)(1,412,574)

4,026,823

5,439,397−

Dividend income from investments
Derivative gain on investments
Effect of foreign exchange translation

Other gain

Change %–	Unrealized gain on valuation of investments held by SVF1 at the fiscal year-end wasA¥5,523,149 million ($52,186 million, net) (see “Portfolio of SVF1” for a breakdown).
Unrealized valuation gain totaling $40,507 million for listed portfolio companies was recorded due to strong stock price performance, particularly of Coupang and DoorDash, which

fair values of investments where listings have been decided or that had new funding rounds.
• SVF2–	Unrealized gain on valuation of investments was ¥490,255 million ($4,633 million, net). Thiswas primarily due to the recording of unrealized valuation gain totaling $4,671 million forlisted portfolio companies, reflecting the share price increases of KE Holdings and other listed
portfolio companies following their listings in the fiscal year. See “Portfolio of SVF2” forother details.

C

B Finance cost:¥10,419 million (decreased ¥13,128 million year on year)
Interest expenses decreased primarily due to a decline in the outstanding balance of borrowings

Segment income (income before
income tax)

made by SVF1, resulting from the repayments of borrowings made under a line of credit set up* Unrealized gain on valuation of investments recorded in prior fiscal years related to the investments exited in the fiscal year is reclassified
to “realized gain on sales of investments.”

mainly to increase capital efficiency to fund investments (the “Fund Level Facility”) and thosemade for the purpose of monetizing a portion of certain investments (the “Portfolio Financing
Facility”).

During the fiscal year, SVF1 made follow-on investments totaling $4.7 billion in existing portfolio

C Change in third-party interests in SVF1: ¥(2,246,417) million

companies and their joint ventures,This indicates the sum of distributions to third-party investors in proportion to their interests in(7)and sold all of its shares in eight portfolio companies

(7)

and

a portion of its shares in five portfolio companies for a total of $8.8 billion,(8) of which the initial

fixed distributions and performance-based distributions, which are based on the gain and loss onacquisition costs were $4.8 billion. SVF2 made new and follow-on investments totaling $4.7

investments at SVF1, net of management and performance fees payable to SBIA, and operating

billion.

and other expenses of SVF1. see “9. SVF1 and other SBIA-managed funds business” in “Notes
to Consolidated Financial Statements.”
As of the fiscal year-end, SVF2 is only invested in by SBG and therefore has no third-party

Segment income

interests.

A Gain on investments at SVF1, SVF2, and others: ¥6,357,462 million• SVF1–	Realized gain on sales of investments of ¥424,215 million was recorded as a result of the

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093

Portfolio of SVF1
As of March 31, 2021

Total ((1) + (2) + (3) + (4) below)(Billions of U.S. dollars)

Cumulative numberof investments

92

Cumulative
Cumulative
Cumulative
investment cost investment return
gain*1A1+B1+C1 A2+B2+C2+D2 A3+B3+C3+D3

85.7

140.7

55.0

Fair value
A2

Cumulative
unrealized
valuation
gain (loss)*2
A3(2) Exited investments(1) Investments before exit (investments held at FYE2020)

Sectora Consumerb Edtechc Enterprised Finteche Frontier Techf Health Techg Logistics
h Proptechi Transportation
Total(Reference)
Listed companies*3
a Coupangd OneConnectd ZhongAn Insurance
f Guardant Healthf Relay Therapeutics
f Vir Biotechnology
g DoorDashh Opendoorh Viewi AUTO1i UberUnlisted companies
Total

SoftBank Group Corp. ANNUAL REPORT 2021

Number of Investment costinvestments
A1

Unrealized
valuation gain
(loss) recorded
for FY2020

12
1
7
11
9
8
14
9
10
81

10.6
0.7
1.6
4.4
11.0
2.0
8.5
10.1
26.0
74.9

42.6
1.1
1.9
2.7
11.7
4.8
18.0
6.2
31.7
120.7

32.0
0.4
0.3
(1.7)
0.7
2.8
9.5
(3.9)
5.7
45.8

30.6
0.4
0.0
(1.9)
1.1
1.9
9.0
1.1
10.0
52.2

11

13.0
2.7
0.1
0.2
0.1
0.3
0.2
0.7
0.4
1.2
0.7
6.4
61.9
74.9

54.0
28.0
0.1
0.2
0.9
1.0
1.2
8.3
1.5
0.5
2.3
10.0
66.7
120.7

41.0
25.3
(0.0)
(0.0)
0.8
0.7
1.0
7.6
1.1
(0.7)
1.6
3.6
4.8
45.8

40.5
24.5
0.0
0.1
0.5
0.7
0.4
6.3
1.2
0.1
1.8
4.9
11.7
52.2

70
81

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Number ofinvestments

Investment cost
B1

Sale price
B2

Cumulative
realized gain*1
B3

Realized gainrecorded for
FY2020Partial exit

−

2.4

4.7

2.3

2.0

Full exit (7)

11

8.4

13.3

4.9

2.0

Total

11

10.8

18.0

7.2

4.0

(3) Derivative gain and loss relating to investment
Derivative cost
C1

Total (settled)

Fair value /settlement price
C2

0.0

Cumulative
derivative gain
C3

1.5

Derivative gainrecorded for
FY20201.5

0.0(4) Dividend income from investments
Dividend income
D2

Total

0.5

Cumulative
incomeD3

Dividend income
recorded for
FY20200.5

0.3*1 Before deducting third-party interests, tax, and expenses*2 For a certain investment that was once decided to be transferred from the Company to SVF1 but later canceled, its unrealized
gain and loss incurred for the period leading up to the decision to cancel the transfer is not included in the presentation.
*3 The letter attached to the listed companies indicates the sector to which the company belongs. Investments in that sector are
not limited to those listed companies.

Who We Are

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094

Listings and announced listing plans for SVF1 and SVF2 portfolio
companies

Portfolio of SVF2
As of March 31, 2021

As of March 31, 2021; excluding those already listed at the time of investment

Total ((1) + (2) below)(Billions of U.S. dollars)

Cumulative
Cumulative
number of investment costinvestments
A1+B1

44

6.7

Cumulative
investment
returnA2+B2

Cumulative
gain*1
A3+B3

11.2

4.5

Fund

SVF1

(1) Investments before exit (investments held at FYE2020)

Fair value*
A2

Cumulative
unrealized
valuation
gain (loss)
A3

Unrealized
valuation gain
(loss) recorded
for FY2020

Company

Number ofinvestments

Investment
cost*2
A1

Listed companies

3

1.6

6.2

4.6

4.7

KE Holdings

1.4

6.0

4.6

4.6

Seer

0.2

0.2

0.0

0.1

Qualtrics

0.0

0.0

0.0

0.0

2

Unlisted companies

41

5.1

5.0

(0.1)

(0.1)

Total

44

6.7

11.2

4.5

4.6

Company

Listing dateListing method

Investments before exit
ZhongAn Insurance

September 28, 2017

IPO

Guardant Health

October 4, 2018

IPO

Uber

May 10, 2019

IPO

Vir Biotechnology

October 11, 2019

IPO

OneConnect

December 13, 2019

IPO

Relay Therapeutics

July 16, 2020

IPO

DoorDashDecember 9, 2020

IPO

Opendoor

December 21, 2020

De-SPAC

AUTO1

February 4, 2021

IPO

View

March 9, 2021

De-SPAC

Coupang

March 11, 2021

IPO

Compass

April 1, 2021

IPO

WeWorkSeptember quarter, 2021
(expected)

De-SPAC(9),(10)Ping An Good Doctor

May 4, 2018

IPO

Slack

June 20, 2019

Direct listing

10x Genomics

September 12, 2019IPO

KE Holdings

August 13, 2020

IPO

Seer

December 4, 2020

IPO

Qualtrics

January 28, 2021

IPO

Berkshire Grey

June quarter, 2021
(expected)

De-SPAC(10),(11)eToro

September quarter, 2021
(expected)

De-SPAC(10),(12)Exited investments(2) Exited investments
Number of Investment costinvestments
B1

Sale price
B2

Cumulative
realized loss*2
B3

Realized loss
recorded for
FY2020Partial exit

−

0.0

0.0

(0.0)

(0.0)

Total

−

0.0

0.0

(0.0)

(0.0)

SVF2

*1 Before deducting third-party interests, tax, and expenses*2 The investment amount and fair value of investments before exit in SVF2 include those related to a minor SVF2
ownership percentage in another portfolio company received as part of the consideration for SVF2’s investment in a
portfolio company.

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095

SoftBank Segment
1. Segment income increased 4.0% yoy: Z Holdings Corporation and the enterprise business performed strongly.
2. Business integration of Z Holdings Corporation and LINE Corporation completed on March 1, 2021.
FINANCIAL RESULTS

Completion of business integration of Z Holdings Corporation and LINE Corporation

Segment income increased ¥32,316 million (4.0%) year on year, to ¥847,933 million, mainly

On March 1, 2021, the business integration of Z Holdings Corporation and LINE Corporationreflecting strong performances by Z Holdings Corporation and the enterprise business. These

was completed. SoftBank Corp. has positioned this integration as an important transaction for

were partially offset by a negative impact from recording an impairment loss on equity method

accelerating the growth of Z Holdings Corporation, which plays an important role in the Beyond

investments in WeWork Japan GK and a deterioration in gain on investments.

Carrier strategy, and for contributing to the increase in corporate value while creating newIncome increased in Z Holdings Corporation, mainly due to the consolidation of ZOZO, Inc. in
November 2019 and an increase in revenue of the existing e-commerce business. Income in thebusiness opportunities in the 5G era. After the integration, Z Holdings Corporation will strive toresolve social issues while capturing unmet customer needs using data and AI.

enterprise business increased due to an increase in mobile revenue, along with an increase in
net sales of cloud services and security solutions following growth in demand for remote workrelated products and services to address the COVID-19 pandemic. For the consumer business,
income increased year on year, mainly due to a decline in sales commissions and the reversal ofcontract liabilities related to Half Price Support (13) in revenues.
Structure After Business Integration of Z Holdings Corporation and LINE Corporation

For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

SBG

Net sales

Segment income(income before income tax)

(Billions of yen)(Billions of yen)

6,000

1,000

4,862.5

5,204.4

Consolidated

SoftBank Corp.

815.6

NAVER Corporation
50%

Consolidated*2

847.9

50%

A Holdings Corporation

750

4,500

40.9%*1

Non-listedcompany

65.3%

3,000

500

1,500

250

Z Holdings Corporation

Listedcompany

100%

0

’19

’20

SoftBank Group Corp. ANNUAL REPORT 2021

(FY)

0

100%

Yahoo Japan Corporation

’19

’20

Table of Contents(FY)

Message from Our CEO

LINE Corporation*1 Holding ratio as ofMarch 31, 2021
*2 SoftBank Corp. holds
the right to appoint the
majority of A Holdings
Corporation’s board of
directors (three out of
five)

Note: T he structure presented is simplified for illustrative purposes

Who We Are

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Financial Section

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096

Arm Segment
1. Arm introduces major new technology as a basis for future product families•	During the fourth quarter, Arm introduced the Armv9 architecture which will be the underlying technology for many future product families that Arm will release. The Armv9 architecture provides
the users of smartphones, consumer electronics and enterprise products with higher performance as well as enhanced security, privacy and confidentiality. The Armv9 architecture is a significant
advancement over prior generations and provides an opportunity to increase pricing, driving license revenue in the near term and royalty revenue as Armv9-based products start to ship.
2. Expanding product portfolio contributes to the financial results• Net sales increased 6.5% yoy
		 - T echnology royalty revenue increased 16.7% yoy (U.S. dollar-based) largely due to the strong ramp in 5G smartphones and networking equipment as well as increasing shipments into servers.
		 - T echnology non-royalty revenue decreased 1.7% yoy (U.S. dollar-based). Weaker licensing at the beginning of the fiscal year, due to uncertainty caused by the pandemic, being mostly offset bystrong demand for Arm’s expanding product portfolio since the Company’s acquisition.
• Segment loss widened yoy mainly due to charges relating to share-based remuneration following the agreement for sale of all shares in Arm to NVIDIA.
OVERVIEW
Arm’s operations primarily consist of licensing of semiconductor intellectual property (IP),including the design of energy-efficient microprocessors and associated technologies. Arm has
accelerated investment in R&D by hiring more engineers. With the expansion of its engineering
capability, Arm can develop new technologies that will help it maintain or increase its share of theexisting markets and expand into new markets.

Net sales

Segment income(income before income tax)

(Billions of yen)(Billions of yen)

240

20

197.1

Industry trends and their impact
Semiconductor industry trends can have a significant impact on Arm’s financial results. The

209.8

180

0

120

-20

60

-40

industry is vulnerable to external factors, including trade disputes and sanctions against specificcompanies, as well as the impact from changes in economic activity caused by COVID-19. If-11.1

shipments of consumer electronic devices weaken, it may lead to lower technology royalty
revenue, and if customers facing reduced revenues choose to delay licensing decisions, it may
lead to lower technology licensing revenue. However, it is difficult to anticipate when these-33.9

events may occur and the impact on the whole semiconductor industry or Arm.
Although those risks still remain, as market conditions improve, Arm expects that its businesswill continue to grow. In addition, Arm is expecting that, as technology becomes more advanced,
its technology will be further utilized and opportunities will expand over the long term.

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’19

’20

(FY)

-60

’19

’20

(FY)

Notes:
1. In the fourth quarter, it was decided that the ISG businesses, which are outside the scope of the agreement made for sale of Arm shares
to NVIDIA, would be managed separately from Arm’s remaining business. Accordingly, the operating results of the Arm segment are
retroactively presented for the previous fiscal year excluding the contribution of the ISG businesses.
2. Segment income includes amortization expenses of ¥48,108 million for the fiscal year and ¥50,544 million for the previous fiscal year.
These expenses are related to intangible assets recognized in the purchase price allocation at the time of the acquisition of Arm.

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097

FINANCIAL RESULTS

Segment income

Net sales in U.S. dollars

Segment loss was ¥33,873 million, deteriorating by ¥22,768 million year on year. This was

Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based in U.S.

mainly due to the recording of charges relating to the increases in the fair value of share-based

dollars.

remuneration already granted to Arm employees relating to share-based remuneration following(Millions of U.S. dollars)

Technology royalty
Technology non-royalty
Total net sales

Fiscal 2019

Fiscal 2020

1,095

1,278

183

16.7%

714

702

(12)

(1.7%)

1,809

1,980

171

9.5%

ChangeChange %the agreement for sale of all shares in Arm to NVIDIA and the expected acceleration of thevesting date that were triggered by the proposed acquisition of Arm by NVIDIA (including one-off
charges).
OPERATIONSRoyalty units (14)(Billion)

Net sales increased $171 million (9.5%) year on year due to an increase in technology royalty

Year ended December 31

revenue.

2019

Royalty units as reported by Arm’s licensees

Technology royalty revenue
Technology royalty revenue increased $183 million (16.7%) year on year. Royalty revenues were

22.2

2020

25.0

Employees
Total number of employees(incl.) Technical employees

Technology non-royalty revenue
Technology non-royalty revenue (technology licensing revenue and software and services revenue)
declined $12 million (1.7%) year on year. This decline is primarily due to weaker licensing by
customers in the first quarter, when the impact of COVID-19 was uncertain. However, as it
became clear that semiconductor sales were going to remain strong, demand for Arm newtechnology increased from the second quarter. Since being acquired by the Company, Arm has
increased investment in R&D, which has now resulted in a product portfolio that has expanded
the breadth of Arm technology to include processors optimized for servers, automotive
electronics, and AI acceleration. This has led to a wider range of customers licensing Armtechnology, as well as existing customers having more Arm technology to choose from, bothof which are helping to drive licensing revenues. This included licenses for processors used bycustomers intending to build Arm-based server chips, smartphones, networking equipment and

2.8

FYE2019driven by the strong ramp in shipments of Arm-based 5G smartphones and the deployment of
networking equipment into 5G base stations as well as increasing shipments into servers.

ChangeChange %12.7%

FYE2020

5,906

6,370

4,612

5,121

Notes:
1. Total number of employees: include temporary employees
2. T echnical employees: employees who work on the research, creation, maintenance, deployment and support of technology products and services of Arm

Arm’s licensees reported shipments of 25.0 billion Arm-based chips shipped in the year ended
December 31, 2020, representing the highest-ever number of chips shipped in a year. Arm’s
unit shipments increased 12.7% year on year, while shipments by the Arm-relevant part of thesemiconductor industry increased 6.7%(15) during the same period.
In addition, as Arm continues to enhance its R&D capabilities by hiring more employees, mainly
technology related personnel, the number of Arm employees at the fiscal year-end increased
7.9% from the previous fiscal year-end.

for autonomous systems such as industrial robotics and self-driving vehicles.

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098

TECHNOLOGY DEVELOPMENT
Arm considers the following as its primary areas for increased investment and is evolving thetechnology in both its mobile business and other businesses with strong growth potential.
Arm’s primary investment areas and main developments
Mobile computing

Automotive

Opportunity: Arm already has over 95% share of the main chips in mobile devices and, overtime, has been successfully increasing royalties per chip.

The first quarter: Arm announced the introduction of a new technology family for premium
smartphones, including a processor, a machine learning accelerator, and agraphics processor.

Opportunity: As vehicles become smarter, they require more computational capability. Arm iswell-positioned to gain share by providing energy efficiency and Arm processor
technology has already been licensed by most companies that develop automotive
chips.

The first quarter: Arm announced the development of new software that enables its graphics
processors to be shared by different applications within a vehicle such as
infotainment and the dashboard. AUDI AG and Samsung Electronics Co., Ltd. areamong customers implementing Arm’s graphics IP in vehicles to be launched in
2022.

The second quarter : Arm announced two new processors to be delivered in 2022. These processors
are optimized for AI algorithms and augmented reality applications, haveenhanced security features, and will deliver increased top performance.
The third quarter: • Qualcomm Technologies, Inc. announced the Snapdragon 888 chip for nextgeneration 5G smartphones based on the Arm Cortex-X1 processor.
• MediaTek Inc. announced the MT8195 chipset designed for next-generation
mobile computers, including Chromebooks, based on the Arm Cortex-A78 CPU
and Arm Mali G57 GPU.

The fourth quarter : • Arm introduced Armv9, its latest architecture for future processors.
• MediaTek Inc. announced that it has already adopted Armv9 and its firstchips incorporating the new technology will be available later in 2021 forsmartphones to be shipped in 2022.

The second quarter : Arm launched three new processors, Cortex-A78AE, Mali-G78AE, and MaliC71AE, designed to make autonomous systems, including industrial robotics andautonomous vehicles, safer and more reliable.
The third quarter

IoT
Opportunity

Infrastructure
Opportunity: Arm has a growing share in networking infrastructure and a nascent share indata center servers.

The first quarter: • Supercomputer Fugaku with Arm technology for servers, jointly developed by
RIKEN and Fujitsu Limited, ranked number one in the TOP500, a global ranking
based on calculation speed of supercomputers.
• Amazon Web Services, Inc. launched two new Arm-based Graviton2 services
optimized for compute-intensive and memory-intensive applications.

The second quarter : Arm launched two new processors, Neoverse V1 targeting high-performancecomputing and Neoverse N2 for energy-efficient data center and edge
computing applications.
The third quarter: Amazon Web Services, Inc. launched new services optimized for networking
applications, based on its Arm-based Graviton2 chips which deliver 40% better
price/performance relative to the prior generation (not Arm-based).

: Telechips Inc., a leading automotive technology provider, announced that it has
adopted a suite of Arm technology for its next automotive chip including the MaliG78AE graphics processor, Cortex-A76 processor, and Ethos-N78 AI processor.
: For IoT to reach its full potential, it must be secure against hacking and robust
against faults. Arm has developed technology to secure and manage the data in
IoT device networks.

The second quarter : Arm announced the introduction of the Cortex-R82 processor, designed specificallyfor computational storage (16) a new market segment that will help enable IoT
gateways, which connect IoT devices and the network, and edge servers.
The third quarter: NXP Semiconductors N.V. announced that it will expand its Arm-based i.MX
products for the Industrial and IoT Edge with the integration of Arm’s Ethos AI
processors.

The fourth quarter : STMicroelectronics N.V. and Silicon Laboratories Inc. separately announced newhighly secure chips for IoT devices helping to achieve the goal of making IoT
networks resistant to cyberattacks.
For more information about Arm, its business, and its technology, please refer to its website at https://www.arm.com.

The fourth quarter : NVIDIA announced a new Arm-based chip Grace which will combine NVIDIA’s
GPU technology with Arm’s CPU technology, and that the Swiss National
Supercomputing Centre will build a new supercomputer utilizing this new chip.
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Other• Fortress

Net sales

Fortress recorded gain on investments of ¥88,411 million due to a rise in the fair value of its

Segment income (income before
income tax) / Gain on investments(Billions of yen)(Billions of yen)300

investments, resulting in income before income tax of ¥57,107 million. During the fiscal year,
five SPACs controlled by Fortress were newly listed, and one of these was merged with an

289.2

300

operating company and excluded from the scope of consolidation. Furthermore, another SPAC
announced a planned merger with an operating company. For details of SPACs, see “8. Special

238.6
225

205.8

purpose acquisition companies sponsored by the Company” in “Notes to Consolidated Financial

150

150

92.6

Statements.”

0• PayPay Corporation
PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded loss

-59.6
75

before in-come tax of ¥72,650 million, mainly reflecting its continued marketing promotions-150

aimed at gaining users and driving service usage, along with proactive measures to increase
0

’19

’20

(FY)

-300

the number of stores where its services can be used. PayPay Corporation’s payment services-299.7
’19

’20

(FY)

■ Segment income (income before income tax)
■ Gain on investments

continued to see strong growth, with the number of payments for the fiscal year reaching 2,039
million, a 2.5-fold increase year on year.

Note: Starting in the fiscal year, the operating results of Arm’s ISG businesses are included in “Other” in the reportable segments. The results
for the previous fiscal year have also been retrospectively revised for presentation.

Results of PayPay Corporation included in “Other”(Millions of yen)Segment income for “Other” in the reportable segments totaled ¥92,625 million. The Company
recorded income before income tax of ¥188,883 million at SoftBank Latin America Fund and¥57,107 million at Fortress. Conversely, loss before income tax of ¥72,650 million at PayPay
Corporation was recorded.

Fiscal 2019

Net sales
Loss before income taxes

Fiscal 2020

ChangeChange %9,159

29,986

20,827227.4%(82,217)(72,650)

9,567−

An overview of these results and operations follows.
• Investment fund business in Latin America
SoftBank Latin America Fund recorded gain on investments of ¥196,556 million following arise in the fair value of its investments, resulting in income before income tax of ¥188,883
million. As of the fiscal year-end, the fund held 37 investments and had invested a cumulative
total of $2,605 million, with a fair value of $4,013 million. During the fourth quarter, one SPAC
controlled by a subsidiary as a sponsor in the investment fund business in Latin America wasnewly listed on the Nasdaq.

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100Portfolio of Latin America FundAs of March 31, 2021

Public securities
Name (in alphabetical order)

Bancar Technologies Limited (Uala)
Banco Inter S.A.
Brazilian EdTech (UOL EdTech)Buser, Ltd.
Camino Education Ltd.
Contabilizei Company
Cortex Intelligence Ltd.
Creditas Financial Solutions, Ltd.
Descomplica
Frubana, Inc.
GPCY Holding (Gympass)Jusbrasil
KAVAK HOLDINGS LIMITED
Konfio Limited
Loft Holdings Ltd
Loggi Technology International
MADEIRAMADEIRA LTD.
PayClip, Inc.
Petlove Cayman, Ltd.
QuintoAndar, Ltd.
Rappi, Inc.
SOLIDARIUM (Olist)
Unico Technologies Ltd (Acesso digital)
Volanty Ltd.
VTEX
12 other portfolio companies and LP interests
Total of 37 investments

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101

Financial Position
1. The ¥4.5 trillion program and main impacts
Sale and monetization of assets
i. Partial sale and monetization of T-Mobile shares*1– Recorded T-Mobile shares totaling ¥1,474.4 billion (as of the fiscal year-end) as investment
securities for those shares continued to be held by the Company after the sale.
– Borrowed $4.38 billion using T-Mobile shares (margin loan). Of this, $2.3 billion is included
as proceeds from the ¥4.5 trillion program.
ii. Entry into several prepaid forward contracts using Alibaba shares– After concluding several prepaid forward contracts using Alibaba shares from April toAugust 2020, amendments to some of the contracts were made in October and November
2020. Financial liabilities totaling ¥3,085.7 billion (as of the fiscal year-end) were recorded
relating to sale of shares by prepaid forward contracts, including the contract concluded in
the previous fiscal year.
iii. Partial sale of SoftBank Corp. shares– Changes in interests in subsidiaries of ¥932.4 billion (increase in capital surplus)
Reduction of debt
SBG repaid senior loans of ¥300.0 billion by an early repayment and borrowings made under
the commitment line of ¥310.0 billion, and repurchased domestic unsecured corporate bonds
with a total face value of ¥167.6 billion, as well as foreign currency-denominated corporate
bonds with a total face value of $0.98 billion and €0.90 billion (¥224.9 billion in total).
Share repurchase
The Company repurchased ¥2,226.2 billion of its own shares during the fiscal year (of this,the amount acquired based on the ¥4.5 trillion program was ¥1,742.2 billion).

2. Status of main investments and fund procurement related to the asset
management subsidiaries*2– Investments in listed stocks: Investments from asset management subsidiaries of ¥658.2 billion
Securities pledged as collateral in asset management subsidiariesof ¥1,427.3 billion– Derivative investments: Derivative financial assets in asset management subsidiaries of ¥188.1
billionDerivative financial liabilities in asset management subsidiaries of ¥14.7
billion– Fund procurements: Borrowings of $6.0 billion using Alibaba shares as collateral (margin loan)

3. Carrying amount of investments from SVF1 and SVF2 accounted forusing FVTPL of ¥13,646.8 billion, an increase of ¥6,754.5 billion from theprevious fiscal year-end*3
The carrying amount of investments from SVF1 and SVF2 increased significantly; ¥5,721.6
billion for SVF1 and ¥1,032.9 billion for SVF2 from the previous fiscal year-end, mainlyreflecting the increase in the fair values of their portfolio companies.

4. Business integration of Z Holdings Corporation and LINE Corporation
Goodwill of ¥617.1 billion and identifiable intangible assets (customer relationships andtrademarks) totaling ¥407.0 billion were recorded related to LINE Corporation(17) on theacquisition date.

*1 For details of the merger of Sprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, see “1. Completion of the merger of Sprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, etc.” under “Program to sell or monetize ¥4.5 trillion of assets (¥4.5 trillion program).”*2 For details, see “Investment Business of Holding Companies Segment”*3 Investment in Arm is not included in investments from SVF1 as Arm is a subsidiary of the Company.

(Millions of yen)March 31, 2020

March 31, 2021

ChangeTotal assets

37,257,292

45,750,453

8,493,161

22.8%

Total liabilities

29,884,375

33,794,860

3,910,485

13.1%

Total equity

7,372,917

11,955,593

4,582,676

62.2%

SoftBank Group Corp. ANNUAL REPORT 2021

Change %Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

102

Assets

Reasons for changes by primary component(Millions of yen)March 31, 2021

ChangeCash and cash equivalents

3,369,015

4,662,725

1,293,710

A

Trade and other receivables

2,072,326

2,216,434

144,108

B

Investments from asset management subsidiaries−

658,227

658,227

C

Securities pledged as collateral inasset management subsidiaries−

1,427,286

1,427,286

D

Derivative financial assets inasset management subsidiaries−

188,056

188,056

E

Other financial assets

313,487

1,055,222

741,735

F

Inventories

185,097

126,830(58,267)

Other current assets

460,970446,739(14,231)(9,197,401) G

Assets classified as held for sale

9,236,048

38,647

Total current assets

15,636,943

10,820,166

Property, plant and equipment

1,264,516

1,668,578

404,062

Right-of-use assets

1,293,692

1,147,020(146,672)

Goodwill

3,998,167

4,684,419

686,252

I

Intangible assets

1,985,972

2,308,370

322,398

J(4,816,777)
H

212,036

246,996

34,960Investments accounted for using the equity method

3,240,361

4,349,971

1,109,610

K

Investments from SVF1 and SVF2
accounted for using FVTPL
SVF1

6,892,232

13,646,774

6,754,542

L

6,681,671

12,403,286

5,721,615

210,561

1,243,488

1,032,927

1,211,511

3,706,784

2,495,273

M

59,278

908,660

849,382

N

Other financial assets

1,100,694

1,919,262

818,568

O

Deferred tax assets

221,371

206,069(15,302)

Costs to obtain contracts

SVF2
Investment securities
Derivative financial assets

Other non-current assets

140,519

137,384(3,135)

Total non-current assets

21,620,349

34,930,287

13,309,938

Total assets

37,257,292

45,750,453

8,493,161

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Components

Main reasons for changes from the previous fiscal year-end

Current assets

March 31, 2020

Message from Our CEO

A Cash and cash
equivalents

Cash and cash equivalents increased mainly due to the sale and monetizationof assets under the ¥4.5 trillion program. For details, see “(Reference) Cashand cash equivalents by entity” and “Cash Flows.”

B Trade and otherreceivables• Receivables (call loans and loans of the banking business) of The JapanNet Bank, Limited (currently PayPay Bank Corporation) and tradereceivables of YJ Card Corporation increased.
• Brightstar recorded trade receivables of ¥143,000 million at the previous
fiscal year-end, but it ceased to be a subsidiary of the Company in thefiscal year.

C Investments fromasset management
subsidiaries

The fair values of listed stocks held by SB Northstar at the fiscal year-end
were recorded.

D Securities pledged
Securities pledged as collateral by SB Northstar at the fiscal year-end were
as collateral in asset
presented separately.
management subsidiaries
E Derivative financial assets The fair values of long call options of listed stocks held by SB Northstar atin asset management
the fiscal year-end were recorded.
subsidiaries
F Other financial assets• In conjunction with the early termination in April 2021 of a portion of
the collar contract out of the prepaid forward contracts using Alibaba
shares, ¥361,355 million required for the termination procedure wasrecorded as restricted cash at the fiscal year-end. For details, see “25.
Interest-bearing debt” in “Notes to Consolidated Financial Statements.”
In addition, derivative assets were reclassified from non-current assets forthe contracts with a contracted term of one year or less and ¥359,115
million was recorded.
• SB Northstar pledged collateral for transactions of investment acquisition
using borrowings, short credit transactions, and total return swap
contracts. Margin deposits of ¥14,685 million and restricted cash of¥111,787 million were recorded at the fiscal year-end.

G Assets classified as held
for sale• Sprint’s assets were separately presented in this category at the previous
fiscal year-end in conjunction with the classification of Sprint in thedisposal group classified as held for sale; however, these assets were
removed as Sprint ceased to be a subsidiary of the Company at the
beginning of the fiscal year.
• Boston Dynamics, Inc.’s assets were separately presented in this category
in conjunction with the classification of the company in the disposalgroup classified as held for sale in the fiscal year.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

103

Components

Main reasons for changes from the previous fiscal year-end

Non-current assets
H Property, plant andequipment• SoftBank Corp. acquired telecommunications equipment including thatfor 5G.
• Subsidiaries operating a renewable energy power generation businessoverseas proceeded with construction of power stations.

I Goodwill• In conjunction with the business integration of Z Holdings Corporationand LINE Corporation, the Company recognized goodwill related
to LINE Corporation(17) in the amount of ¥617,077 million on theacquisition date. For details, see “Acquisition of LINE Corporation
and business integration of LINE Group and Z Holdings Corporation”
under “10. Business combinations” in “Notes to Consolidated Financial
Statements.”• Goodwill of Arm increased ¥78,619 million due to a weaker yen against
the U.S. dollar.

J Intangible assets• In conjunction with the business integration of Z Holdings Corporationand LINE Corporation, the Company recognized the identifiableintangible assets (customer relationships and trademarks) related toLINE corporation (17) in the amount totaling ¥406,964 million on theacquisition date. For details, see “Acquisition of LINE Corporation
and business integration of LINE Group and Z Holdings Corporation”
under “10. Business combinations” in “Notes to Consolidated Financial
Statements.”• Intangible assets of Arm such as technology and customer relationships
decreased due to regular amortization.

K Investments
accounted for using
the equity method

Income on equity investments related to Alibaba was recorded.

L Investments from
SVF1 and SVF2
accounted for using
FVTPL• SVF1 recorded unrealized gain on valuation of investments (net) of¥5,478,148 million, reflecting increases in the fair value of investments
held at the fiscal year-end.
• SVF2 made new and follow-on investments totaling $4.7 billion, as
well as recorded unrealized gain on valuation of investments (net) of¥490,255 million, reflecting increases in the fair value of investments
held at the fiscal year-end.
For details of the status of investments at SVF1 and SVF2, see “SVF1 andOther SBIA-Managed Funds Segment.”

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Components

Main reasons for changes from the previous fiscal year-end

M Investment securities• The fair value of T-Mobile shares continued to be held by the Company
after the partial sale totaled ¥1,474,356 million, rising ¥219,608
million from the time of initial recognition on June 26, 2020 to thefiscal year-end. For details, see “(1) Completion of the merger ofSprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, etc.”
under “Program to sell or monetize ¥4.5 trillion of assets (¥4.5 trillion
program).”• The carrying amount of investments from SoftBank Latin America
Fund increased ¥327,537 million due to an increase in the fair value of
portfolio companies, as well as new and follow-on investments madeduring the fiscal year (fiscal year-end balance: ¥441,008 million).
• Unrealized gains on valuation of investments in Social Finance, Inc. andLemonade, Inc. were recorded at ¥124,420 million and ¥72,994 million,
respectively, reflecting the increase in their fair values.

N Derivative financial
assets• Derivative financial assets of ¥460,709 million were recorded related
to the Company’s right to acquire T-Mobile shares for no additional
consideration if certain conditions are met, which was received asconsideration for the merger of Sprint and T-Mobile US, Inc. The fairvalue of these shares rose ¥264,395 million from the time of the merger
to the fiscal year-end.
• Derivative financial assets related to several prepaid forward contracts
using Alibaba shares increased¥339,550 million. For details, see “25.
Interest-bearing debt” in “Notes to Consolidated Financial Statements.”

O Other financial assets• For the funds that were raised through initial public offerings by SPACs,
which were sponsored by the Company’s subsidiaries (listed and not
yet merged with operating companies as of the fiscal year-end), thebalance managed in the Money Market Fund as of the fiscal year-end
was included. For details, see “8. Special purpose acquisition companies
sponsored by the Company” in “Notes to Consolidated Financial
Statements.”• Housing loans increased at The Japan Net Bank, Limited (currently PayPay
Bank Corporation).
• Related to unsecured notes of WeWork purchased by the WeWork
Investment Subsidiary, $1.17 billion was recorded as long-term loans.
For details, see “Investments and loans to WeWork from the WeWork
Investment Subsidiary” under “Investment Business of Holding
Companies Segment.”

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

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104

(Reference) Cash and cash equivalents by entity(Millions of yen)

SBG / Wholly owned subsidiaries
conducting fund procurement,
etc.*1 / SB Northstar
SBG
Wholly owned subsidiaries conducting
fund procurement*1

March 31, 2020

March 31, 2021

Change1,461,291

2,202,730

741,439

1,455,385

1,948,177

492,792

5,906

33,27227,366−221,281

221,281

186,028

67,580(118,448)

SVF2

1,193

63,47062,277

SBIA

38,51725,895(12,622)

SoftBank Corp.

148,127

302,539

154,412Z Holdings Corporation*2

242,977

420,941

177,964

Others*3

752,704

861,412

108,708

Others538,178

718,158

179,980

Total

3,369,015

4,662,725

1,293,710

SB Northstar
SVF1 and Other SBIA-Managed Funds
segment
SVF1

SoftBank segment*1 Includes wholly owned subsidiaries conducting fund procurement, Skywalk Finance GK, West Raptor Holdings, LLC,
West Raptor Holdings 2, LLC, Skybridge LLC, Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, Tigress2020 Holdings Limited, Moonlight Finance GK, and Delaware Project 6 L.L.C.
*2 Includes Yahoo Japan Corporation and LINE Corporation.
*3 Includes The Japan Net Bank, Limited (currently PayPay Bank Corporation) and its balance of cash and cash equivalents, which was ¥306,599 million at the fiscal year-end.

SoftBank Group Corp. ANNUAL REPORT 2021

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Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

105

Liabilities

Reasons for changes by primary component(Millions of yen)March 31, 2020

March 31, 2021

Change3,845,153

7,735,239

3,890,086

Lease liabilities

378,383

307,447(70,936)

Deposits for banking business

873,087

1,109,240

236,153

Third-party interests in SVF1

24,691−(24,691)

Trade and other payables

1,585,326

1,970,275

384,949

Interest-bearing debt

Derivative financial liabilities in
asset management subsidiaries−

14,673

14,673

9,267

322,213

312,946

Other financial liabilities

248,01051,285(196,725)

Income taxes payables

164,298

391,930

227,632

Provisions

11,44824,93913,491Other current liabilities

596,499

952,443355,944C

Liabilities directly relating toassets classified as held for sale

6,454,971

11,271(6,443,700)

D

Total current liabilities

14,191,133

12,890,955(1,300,178)

Interest-bearing debt

9,286,729

10,777,736

1,491,007

761,943

727,554(34,389)

Third-party interests in SVF1

4,559,728

6,601,791

2,042,063

Derivative financial liabilities

Lease liabilities
Derivative financial liabilities

128,075

32,692(95,383)

Other financial liabilities

77,207415,407338,200

Provisions

88,791

110,586

21,795

Deferred tax liabilities

711,216

2,030,651

1,319,435

Other non-current liabilities

79,553

207,488

127,935

Total non-current liabilities

15,693,242

20,903,905

5,210,663

Total liabilities

29,884,375

33,794,860

3,910,485

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Components

Main reasons for changes from the previous fiscal year-end

Current liabilities

A

A Derivative financial
liabilities

Derivative financial liabilities of ¥204,821 million were recorded for stock
purchase options received by Deutsche Telekom for T-Mobile shares held by
the Company.

B  Income taxes
payablesThe amount equivalent to income taxes payables was recorded primarily
for a gain on the partial sale of SoftBank Corp. shares at SBGJ as a sellingshareholder.

C Other current
liabilities• ¥245,053 million was recorded as the expected payment amount ofwithholding income tax related to dividends paid from SBGJ to SBG.
• A deposit of $1.25 billion received for the sale of all shares of Arm wasrecorded. For details, see “Entry into agreement for sale of all shares inArm.”

D Liabilities directly
relating to assets
classified as held forsale• Sprint’s liabilities were separately presented in this category at theprevious fiscal year-end in conjunction with the classification of Sprintin the disposal group classified as held for sale; however, these liabilities
were removed as Sprint ceased to be a subsidiary of the Company at the
beginning of the fiscal year.
• Boston Dynamics, Inc.’s liabilities were separately presented in thiscategory in conjunction with the classification of the company in thedisposal group classified as held for sale in the fiscal year.

B

Non-current liabilitiesE

E Other financial
liabilities

The equity interests of investors other than sponsors in SPACs (listed and not
yet merged with operating companies as of the fiscal year-end), which weresponsored by the Company’s subsidiaries, were included. For details, see“8. Special purpose acquisition companies sponsored by the Company” in“Notes to Consolidated Financial Statements.”

F Deferred tax
liabilities

Deferred tax liabilities increased at SBG.

F

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Management: The Foundation Supporting Our Growth

Financial Section

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106

(Reference) Interest-bearing debt and lease liabilities(total of current liabilities and non-current liabilities)

Reasons for changes from the previous fiscal year-end at core companies
SBG / Wholly owned subsidiaries conducting fund procurement*1 / SB Northstar(Millions of yen)

SBG / Wholly owned subsidiaries
conducting fund procurement (1) /SB Northstar
SBG
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries conducting
fund procurement*1
Borrowings
Financial liabilities relating to sale of sharesby prepaid forward contracts
SB Northstar
Borrowings
SVF1 and Other SBIA-Managed Funds segment
SVF1
Borrowings
SBIA
Lease liabilities
SoftBank segment
SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Z Holdings Corporation*2
Borrowings
Corporate bonds
Lease liabilities
Other
OthersOther interest-bearing debt
Lease liabilities
Total

March 31, 2020

March 31, 2021

Change8,247,063
6,528,734
1,388,240
5,034,494−
106,000

12,984,650
6,158,350
1,152,934
4,745,549
13,367
246,500

4,737,587(370,384)(235,306)(288,945)
13,367140,500

1,718,329
1,522,228

4,959,779
1,874,040

3,241,450
351,812

196,101−−

3,085,739
1,866,521
1,866,521

2,889,638
1,866,521
1,866,521

581,543
581,543535
535

444,227444,227363
363(137,316)(137,316)
(172)
(172)

3,828,904
2,856,027
40,000832,877
100,000
839,042
463,598354,327
21,117413,127

4,166,323
3,037,229
260,000
706,393
162,701
1,030,980
442,406
543,992
44,582494,747

337,419
181,202
220,000(126,484)
62,701
191,938(21,192)
189,665
23,465
81,620259,801
102,193
14,272,208

334,917
91,76919,547,976

75,116(10,424)
5,275,768• Borrowings
SBG repaid senior loans of ¥392.4 billion (total face value, including early repayment of ¥300.0 billion*) and borrowings of¥310.0 billion* made under the commitment line in March 2021. On the other hand, SBG borrowed ¥540.0 billion during thefourth quarter to enhance cash on hand.
• Corporate bonds
SBG repurchased domestic unsecured corporate bonds with a total face value of ¥167.6 billion* and foreign currency-denominated corporate bonds with a total face value of $0.98 billion and €0.90 billion (¥224.9 billion in total),* as well as redeemed
domestic unsecured corporate bonds with a total of ¥150.0 billion at maturity. On the other hand, SBG issued domestic hybrid
notes with a total of ¥177.0 billion for the purpose of refinancing.
• Commercial paper
Commercial paper increased ¥140.5 billion.
*Conducted as part of the debt reduction under the ¥4.5 trillion program.

(Wholly owned subsidiaries conducting fund procurement*1 )Skywalk Finance GK• As a borrowing using Alibaba shares (margin loan), Skywalk Finance GK repaid $9.44 billion in July 2020 and borrowed $8.13
billion in March 2021.

West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge LLC,
Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, and Tigress 2020 Holdings Limited• Following the conclusion of several prepaid forward contracts using Alibaba shares with financial institutions from April to August
2020, financial liabilities relating to sale of shares by prepaid forward contracts, including those concluded in the previous fiscal
year, totaled ¥3,085,739 million at the fiscal year-end. This also includes the impact of amendments made in the third quarter tosome of the prepaid forward contracts (including those concluded in the previous fiscal year), which resulted in the derecognition of¥1,382,751 million of financial liabilities for the amended contracts, and the recognition of ¥2,179,156 million of financial liabilities
for newly concluded contracts. For details, see “25. Interest-bearing debt” in “Notes to Consolidated Financial Statements.”

Delaware Project 6 L.L.C.
• Borrowings of $4.38 billion were made using T-Mobile shares (margin loan).

SB Northstar• Short-term borrowings for the purpose of acquiring listed stocks increased ¥1,203,925 million.
• Borrowings of $6.0 billion were made using Alibaba shares (margin loan).

SVF1 and Other SBIA-Managed Funds segment• Borrowings under the Fund Level Facility in SVF1 decreased $3.08 billion following repayments. No borrowings were outstanding
as of the fiscal year-end.
• Borrowings under the Portfolio Financing Facility in SVF1 decreased $1.03 billion following repayments.
• During the fourth quarter, SVF1 borrowed $2.80 billion. The loan is expected to be repaid from the proceeds to be received upon
the completion of the sale of Arm shares held by SVF1 to NVIDIA.

SoftBank segment*1 Indicates the interest-bearing debts of Skywalk Finance GK, West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge LLC, Skylark 2020
Holdings Limited, Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited, Moonlight Finance GK, and Delaware Project 6 L.L.C. All of these areentirely non-recourse to SBG, except for the interest-bearing debt of Delaware Project 6 L.L.C. The interest-bearing debt of Delaware Project 6 L.L.C. of$4.38 billion is exceptionally guaranteed by SBG to a limit of $2.02 billion. As a precondition for SBG to fulfill its guarantee obligations, the lenders are
obligated to first recover the amount to the maximum extent possible from Alibaba shares that have been pledged as collateral.
*2 Includes Yahoo Japan Corporation and LINE Corporation.

SoftBank Group Corp. ANNUAL REPORT 2021

SBG

Table of Contents

Message from Our CEO

SoftBank Corp.
• Borrowings increased mainly due to the financing through the sale and leaseback of telecommunications equipment.
• Domestic straight corporate bonds totaling ¥220.0 billion were issued.

Z Holdings Corporation• Interest-bearing debt of ¥244,248 million was recognized at LINE Corporation(17) on the acquisition date in conjunction withthe business integration of Z Holdings Corporation and LINE Corporation. For details, see “Acquisition of LINE Corporation andbusiness integration of LINE Group and Z Holdings Corporation” under “10. Business combinations” in “Notes to Consolidated
Financial Statements.”• Z Holdings Corporation repaid short-term borrowings, while issuing domestic straight corporate bonds totaling ¥200.0 billion.
Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

107

Equity

Reasons for changes by primary component(Millions of yen)March 31, 2020

March 31, 2021

ChangeCommon stock

238,772

238,772−

Capital surplus

1,490,325

2,618,504

1,128,179

496,876

496,876−

3,945,820

8,810,422

4,864,602

Treasury stock(101,616)(2,290,077)(2,188,461) C

Accumulated other comprehensive income(362,259)

338,329

700,588

Accumulated other comprehensive income directly
relating to assets classified as held for sale205,695

267

Total equity attributable to owners of the parent

5,913,613

10,213,093

4,299,480

Non-controlling interests

1,459,304

1,742,500

283,196

Total equity

7,372,917

11,955,593

4,582,676

SoftBank Group Corp. ANNUAL REPORT 2021

Main reasons for changes from the previous fiscal year-end• Changes in interests in subsidiaries of ¥932,388 million were recorded inconjunction with the partial sale of SoftBank Corp. shares.
• Changes in interests in subsidiaries of ¥245,147 million were recorded due to adecrease in the equity stake in the new company formed by the merger following
the business integration of Z Holdings Corporation and LINE Corporation.

B Retained
earnings

Net income attributable to owners of the parent of ¥4,987,962 million wasrecorded.

C T reasury stock• The Company repurchased 102,960 thousand of its own shares for ¥483,971
million in accordance with the March 13, 2020 Board resolution. In the previous
fiscal year, the Company repurchased 4,720 thousand shares for ¥16,028 million inaccordance with the resolution.
• The Company repurchased 152,520 thousand of its own shares for ¥1,000,000
million in accordance with the May 15, 2020 and June 25, 2020 Board resolutions.
• The Company repurchased 80,681 thousand of its own shares for ¥742,223 million
in accordance with the July 30, 2020 Board resolution with a maximum total
repurchase amount of ¥1 trillion.

D Accumulated
othercomprehensive
incomeExchange differences from the translation of foreign operations, which arise fromtranslating overseas subsidiaries and associates into yen, increased ¥651,960
million due to a weaker yen against the major currencies.

E Accumulated
othercomprehensive
income directly
relating to assets
classified as held
for sale• Sprint’s accumulated other comprehensive income was separately presented
in this category at the previous fiscal year-end in conjunction with theclassification of the company in the disposal group classified as held for sale;
however, this was removed as Sprint ceased to be a subsidiary of the Company
at the beginning of the fiscal year.
• Boston Dynamics, Inc.’s accumulated other comprehensive income wasseparately presented in this category in conjunction with the classification of
the company in the disposal group classified as held for sale in the fiscal year.

F Non-controllinginterests• Non-controlling interests increased ¥434,371 million due to the recognition of¥264,257 million of non-controlling interests related to LINE Corporation(17) on
the acquisition date and a decrease in the equity stake in the new company
formed by the merger following the business integration of Z Holdings
Corporation and LINE Corporation.
• Non-controlling interests increased ¥134,413 million in conjunction with thepartial sale of SoftBank Corp. shares.
• Sprint’s non-controlling interests of ¥424,746 million (as of the previous fiscal
year-end) were removed as Sprint ceased to be a subsidiary of the Company
following the completion of the merger of Sprint and T-Mobile US, Inc. at the
beginning of the fiscal year.
• Non-controlling interests decreased ¥152,864 million primarily due to therecording net loss at SB Northstar.

A

Retained earnings

Other equity instruments

Components

A Capital surplus

BD(205,428) E

Table of Contents

F

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Who We Are

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Management: The Foundation Supporting Our Growth

Financial Section

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108

Cash Flows

Cash flows from operating activities / Cash flows from investing activities /Cash flows from financing activities

1. Completed the ¥4.5 trillion program(Billions of yen)

• Sold or monetized assets totaling ¥5.6 trillion in the six months from April to September
2020 through the partial sales or monetization of shares of T-Mobile, Alibaba, and
SoftBank Corp.
• Repurchased a cumulative total of ¥1,742.2 billion of its own shares as of March 31, 2021
(a cumulative total of ¥2,226.2 billion for the fiscal year, combined with share repurchases
resolved before the ¥4.5 trillion program). In reducing debts, the Company reduced debt
by ¥1 trillion by the fiscal year-end through the repurchase of domestic corporate bonds
and foreign currency-denominated corporate bonds, and repayment of senior loans andborrowings made under the commitment line.

2. Investment activities by investment funds• Payments for acquisition of investments by SVF1 and SVF2 totaled ¥856.6 billion; proceedsfrom sales of investments by SVF1 totaled ¥856.4 billion.
• Payments for acquisition of investments by SoftBank Latin America Fund totaled ¥98.9 billion.

3. Initiated investments in listed stocks and other instruments fromfiscal 2020 to diversify asset portfolios and manage surplus funds• Investments were initially made by SBG directly and later by the asset management
subsidiary SB Northstar starting from the second quarter.
• Investments made by SBG are recorded in cash flows from investing activities: Payments
for acquisition of investments of ¥2,705.4 billion and proceeds from sales/redemption of
investments of ¥675.7 billion.
• Investments made by SB Northstar are mainly recorded in cash flows from operating
activities as the company’s primary business is to frequently trade marketable securities.

5,000

2,920.9
2,194.1

2,500

1,117.9557.3

0-1,468.6-2,500-4,286.9-5,000’19■ Cash flows from operating activities

’20

(FY)

■ Cash flows from investing activities ■ Cash flows from financing activities

Cash Flows from Operating Activities
Cash flows from operating activities decreased ¥560,629 million year on year. This was mainly
due to the exclusion of Sprint from the scope of consolidation at the beginning of the fiscal
year, which had generated cash inflows of ¥641,013 million in the previous fiscal year, and asset
management subsidiary SB Northstar, which started operations in the fiscal year, recording cash
outflows of ¥509,249 million (before elimination of intercompany transactions) mainly associatedwith realized loss on investments in derivatives. These were partially offset by a year-on-year
decrease in income tax payments of ¥613,371 million.
The decrease in income taxes paid was mainly due to income taxes of ¥321,290 million being
paid by SBGJ in the previous fiscal year on a gain on the sale of SoftBank Corp. shares and others

Fiscal 2019

Fiscal 2020

(Millions of yen)that arose in the fiscal year ended March 2019, as well as a withholding income tax of ¥422,648

Changemillion being paid on dividends from SBGJ to SBG. The latter withholding income tax was
refunded in July 2019.

Cash flows from operating activities

1,117,879

557,250(560,629)

Cash flows from investing activities(4,286,921)(1,468,599)

2,818,322

Cash flows from financing activities

2,920,863

2,194,077(726,786)

Note: Cash flows from discontinued operations are included. For details of cash flows from discontinued operations, see “6. Discontinued
operations” in “Notes to Consolidated Financial Statements.”

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109

Cash Flows from Investing Activities
Primary components
Components

Payments for acquisition of
investments¥(4,186,663) million

Components

Primary details• SBG acquired highly liquid listed stocks for ¥2,705,425 million withthe aim of diversifying its assets and managing surplus funds prior to
the asset management subsidiary SB Northstar starting operations inthe second quarter.
• SoftBank Latin America Fund made new and follow-on investments
totaling ¥98,886 million.
• As part of the business integration between Z Holdings Corporationand LINE Corporation, SoftBank Corp. paid a net amount of¥175,313 million for the acquisition of LINE Corporation shares.
However, the transactions between SoftBank Corp. and LINE
Corporation before making LINE Corporation a subsidiary arepresented in gross amounts on the Consolidated Statement of Cash
Flows as “payments for acquisition of investments” and “proceedsfrom sales/redemption of investments.” “payments for acquisitionof investments” includes ¥269,134 million paid by SoftBank Corp.
for the acquisition of LINE Corporation shares through a joint tender
offer and a squeeze-out procedure using a reverse stock split. It also
includes ¥739,628 million paid by SoftBank Corp. to subscribe to
the corporate bonds issued by LINE Corporation for the purpose of
conducting the tender offer for shares of Z Holdings Corporation.
(the “LINE Corporate Bonds”).

Proceeds from sales/
redemption of investments¥3,845,787 million• SBG received proceeds of ¥675,688 million from the sale of a portionof the abovementioned highly liquid listed stocks.
• SBG received proceeds of ¥2,099,746 million from the partial sale ofits T-Mobile shares held through a subsidiary.
• As part of the abovementioned transactions conducted between
SoftBank Corp. and LINE Corporation before making LINE
Corporation a subsidiary, “proceeds from sales/redemption of
investments” includes proceeds of ¥93,821 million from the saleof LINE Corporation shares by SoftBank Corp. primarily through asqueeze-out procedure using a reverse stock split of LINE Corporation
shares. It also includes proceeds of ¥739,628 million from the sale orredemption of LINE Corporate Bonds that SoftBank Corp. subscribedto.

Payments for acquisition of
investments by SVF1 and SVF2¥(856,608) million• SVF1 made follow-on investments totaling $4.1 billion in existing
portfolio companies and their joint ventures.
• SVF2 made new and follow-on investments totaling $4.0 billion.

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Proceeds from sales ofinvestments by SVF1
¥856,408 million

SVF1 sold investments such as OSIsoft, Uber (partially), and Guardant
Health (partially).

Purchase of property,
plant and equipment, andintangible assets¥(646,888) million• SoftBank Corp. purchased telecommunications equipment includingfor 5G.
• Subsidiaries operating a renewable energy power generation businessoverseas proceeded with construction of power stations.

Payments into restricted cash¥(351,343) million

Prior to the early termination in April 2021 of a portion of the collar
contract out of the prepaid forward contracts using Alibaba shares,$3.3 billion required for the termination procedure was recorded as
restricted cash. The applicable contracts were settled with a payment of$2.9 billion and terminated in April 2021. For details, see “25. Interestbearing debt” in “Notes to Consolidated Financial Statements.”

Payments into trust accounts
in SPACs¥(350,990) million

A total of $3.3 billion of funds raised through initial public offerings
by SPACs, which were sponsored by the Company’s subsidiaries, washeld in a trust account. In accordance with the terms of investments,
the proceeds received are held in a trust account until the completionof the merger and are invested only in certain financial assets that arehighly liquid. For details, see “8. Special purpose acquisition companies
sponsored by the Company” in “Notes to Consolidated Financial
Statements.”

Note: Out of $2.0 billion received upon the execution of the Purchase Agreement for sale of all shares in Arm, a deposit of $1.25 billion is
included in “other” under cash flows from investing activities.

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110Cash Flows from Financing Activities
Primary components
Components

Proceeds in short-term
interest-bearing debt, net¥1,575,327 million*1

Components

Primary details• Short-term borrowings for the purpose of acquiring listed stocks at
SB Northstar increased ¥1,144,502 million (net).
• SoftBank Corp.’s short-term borrowings increased ¥255,591 million(net).

Proceeds frominterest-bearing debt
¥7,965,114 million
Proceeds from borrowings¥5,707,162 million*2• SBG made short-term borrowings of ¥1,040,100 million.
• Skywalk Finance GK borrowed $8.13 billion using Alibaba shares(margin loan).
• Delaware Project 6 L.L.C. borrowed $4.38 billion using T-Mobile
shares (margin loan).
• SB Northstar borrowed $6.0 billion using Alibaba shares (marginloan).
• SVF1 borrowed $2.80 billion and borrowed $1.90 billion throughthe Fund Level Facility, which is a form of loan that allows borrowing
up to a maximum amount of $1.48 billion. In the fiscal year, SVF1
made several borrowings and repayments under the facility (see“Repayment of borrowings” below).
• SoftBank Corp. made short-term borrowings of ¥648,700 million andborrowings of ¥756,661 million. Z Holdings Corporation made shortterm borrowings of ¥231,800 million and borrowings of ¥150,000
million.

Proceeds from issuance ofcorporate bonds¥597,000 million• SBG newly issued domestic hybrid notes of ¥177.0 billion.
• SoftBank Corp. and Z Holdings Corporation issued domestic
straight corporate bonds totaling ¥220.0 billion and ¥200.0 billion,
respectively.

Proceeds from procurement
by prepaid forward
contracts using shares¥1,660,952 million

The Company’s wholly owned subsidiaries conducting fundprocurement entered into several prepaid forward contracts using
Alibaba shares with financial institutions and procured an aggregate
amount of $15.4 billion.

*1 “Proceeds in short-term interest-bearing debt, net” presents cash flows from financing activities that meet the requirement of“Reporting cash flows on a net basis” under IFRSs.
*2 “Proceeds from borrowings” and “repayment of borrowings” include proceeds of ¥2,378,859 million and outlays of ¥2,823,336
million, respectively, related to borrowings with a contracted term of one year or less.

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Repayment ofinterest-bearing debt¥(5,790,901) million
Repayment ofborrowings¥(5,223,271) million*2• SBG repaid short-term borrowings of ¥863,250 million and seniorloans of ¥392,380 million (including early repayment of ¥300,000
million).
• Skywalk Finance GK repaid $9.44 billion in borrowings made using
Alibaba shares (margin loan).
• SVF1 repaid $4.98 billion of borrowings under the Fund Level Facility
and $1.03 billion of borrowings under the Portfolio Financing Facility.
• SoftBank Corp. repaid short-term borrowings of ¥592,000 million
and borrowings of ¥832,676 million. Z Holdings Corporation repaid
short-term borrowings of ¥605,270 million.

Redemption of
corporate bonds¥(567,630) million

SBG redeemed domestic unsecured corporate bonds with a total
face value of ¥150.0 billion at maturity and repurchased domestic
unsecured corporate bonds with a total face value of ¥167.6 billion,
and foreign currency-denominated corporate bonds with a total facevalue of $0.98 billion and €0.90 billion (¥224.9 billion in total).

Contributions into SVF1
from third-party investors¥979,266 million

SVF1 received cash contributions from third-party investors based on
capital calls.

Distribution/repayment from
SVF1 to third-party investors¥(1,362,066) million

SVF1 made distributions and repayments of investments to third-party
investors.

Proceeds from noncontrolling interests subject
to possible redemption¥345,466 million

SPACs controlled by the Company’s subsidiaries as sponsor raised a
total of $3.25 billion from third-party investors through initial public
offerings. For details, see “8. Special purpose acquisition companies
sponsored by the Company” in “Notes to Consolidated Financial
Statements.”

Proceeds from the partial
sales of shares of subsidiaries
to non-controlling interests¥1,552,957 million

SBG sold portions of SoftBank Corp. shares it owns through SBGJ in
May and September 2020.

Purchase of treasury stock¥(2,226,229) million

SBG repurchased its own shares in accordance with resolutions of theBoard of Directors on March 13, May 15, June 25, and July 30, 2020.

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Financial Section

Corporate Information

111Sources of Capital and Liquidity
SBG’s sources of capital

Sale or monetization of ¥4.5 trillion of assets (¥4.5 trillion program)

As a strategic investment holding company, SBG invests in a number of companies throughIn March 2020, SBG decided on a program to sell or monetize ¥4.5 trillion of its assets and to use

direct investments including subsidiaries and associates (including investments made throughthe proceeds for shareholder returns and financial improvement through debt reduction (“¥4.5

its subsidiaries), as well as through investment funds (for example SVF1 and SVF2). SBG collects

trillion program”). Since then SBG swiftly executed the program and completed the monetization

funds through the monetization of these assets whenever deemed appropriate, as well asbased on the program by the end of September, 2020, with the proceeds totaling ¥5.6 trillion.

through dividends from portfolio companies and distributions from investment funds. SBG

For details, see “Program to sell or monetize ¥4.5 trillion of assets (¥4.5 trillion program).”allocates these proceeds to new investments based on its growth strategies, as well as redirecting
them to shareholder returns and financial improvements at appropriate times. SBG also raises

Major investments in fiscal 2020

funds through sources including loans from financial institutions and issuance of bonds to meet

In the fiscal year, the Company contributed $700 million to SVF1 (with the remaining committed

funding needs for its investment activities and debt repayments.

capital at $3.8 billion as of March 31, 2021) and $4.8 billion to SVF2 (with the remaining

Shares of listed companies such as Alibaba and SoftBank Corp. account for a large portionof the value of the investments held by SBG, its subsidiaries and investment funds. In addition
to selling its assets, SBG is able to flexibly utilize these highly liquid listed shares through various

committed capital at $13.2 billion as of March 31, 2021).* For details of the status of investments
at SVF1 and SVF2, see “SVF1 and Other SBIA-Managed Funds Segment.”
In addition, starting from this fiscal year, the Company has been investing in highly liquid listedmeans, such as prepaid forward contracts (using Alibaba shares as of the fiscal year-end) andstocks mainly through its asset management subsidiary SB Northstar, to diversify asset holdings

margin loans secured by these listed shares (Alibaba, T-Mobile and SoftBank Corp. as of the fiscal

and to manage surplus funds. For details, see “Investment in listed stocks and other instruments

year-end). As for the private equity investments made mainly through SVF1 and SVF2, moreby the asset management subsidiaries” under “Investment Business of Holding Companies

opportunities for sale and monetization can be expected as their liquidity increases through public

Segment.”

listing.
In issuing corporate bonds, SBG secures opportunities to raise funds from various markets* As of June 23, 2021, the Company’s committed capital to SVF2 has been increased to $40.0 billion.

in Japan and overseas by issuing not only yen-denominated senior notes but also bonds withdifferent product characteristics such as U.S. dollar- and euro-denominated senior notes andhybrid bonds to ensure stable procurement.

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Notes for the Management’s Discussion and Analysis of Results of Operations and Financial
Position:(1)

The Company applies the equity method to Alibaba’s consolidated financial statements (the Company’s economic interests in Alibaba
as of December 31, 2020: 25.02%) for a reporting period staggered by three months in the past because it is impractical to alignreporting periods with Alibaba due to contracts with the company, among others. Necessary adjustments are made to reflect significant transactions and events announced by Alibaba during the staggered three-month period.
(2) As part of consideration for the transaction, the Company has received a 25% stake (fully diluted basis) in a subsidiary of Brightstar
Capital Partners, which acquired all of the shares of Brightstar. Following the completion of the transaction, Brightstar ceased to be a
subsidiary of the Company.
(3) The Deutsche Telekom Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.
(4) The shares of Berkshire Grey, Inc. were transferred to SVF2 in March 2021.
(5) The presentation of interest expenses at SBG includes interest expenses on interest-bearing debts of wholly owned subsidiaries conducting fund procurement, Skywalk Finance GK, West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge LLC, Skylark 2020
Holdings Limited, Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited, Moonlight Finance GK, and Delaware Project 6 L.L.C.
(6) Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after thecapital was drawn.
(7) Includes share exchanges. During the fiscal year, SVF1 exchanged all of its shares in three portfolio companies for shares in their affiliated companies. Such share exchanges are treated as exits from investments and acquisitions of new investments, with the sale priceand acquisition cost being recorded in gross, respectively, and with the difference between the acquisition cost of shares initially heldand sale price (acquisition cost of the exchanged shares) being recorded as realized gain and loss on the investments.
(8) After deducting transaction fees, etc.
(9) The merger between WeWork Inc. and BowX Acquisition Corp., a SPAC, was announced on March 26, 2021 (U.S. time). For details,
see “Investments in WeWork” under “Investment Business of Holding Companies Segment.”(10) The mergers are subject to receipt of stockholder approval of respective SPACs and the satisfaction of other customary closing conditions. The mergers have not yet closed as of May 12, 2021.
(11) The merger between Berkshire Grey, Inc and Revolution Acceleration Acquisition Corp, a SPAC, was announced on February 24,
2021 (U.S. time).
(12) The merger between eToro Group Ltd. and FinTech Acquisition Corp. V, a SPAC, was announced on March 16, 2021 (U.S. time).
(13) A program that enables customers to purchase eligible smartphones in 48 monthly installments, with the remaining installment
payments waived if the customer trades in their used handset to upgrade to a designated new model after 24 monthly installments(14) This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the year
ended December 31, 2020, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments of royalty units
one quarter in arrears; therefore, the current quarter’s royalty unit analysis is based on chips shipped in the prior quarter. In contrast,
technology royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.
(15) Worldwide Semiconductor Trade Statistics (WSTS) as of April 2021. Excludes memory and analog chips, which do not contain processor technology. This data is compiled on the basis of data submitted by semiconductor companies participating in the survey.
(16) Data storage devices with computational capabilities(17) Includes its subsidiaries.

Exchange rates used for translations
Average rate for the quarter
Fiscal 2020

Fiscal 2019

USD / JPY

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

¥110.00¥107.70¥108.98¥109.22¥107.74¥105.88¥104.45¥106.24

Rates at the end of the period
USD / JPY

SoftBank Group Corp. ANNUAL REPORT 2021

March 31, 2020

March 31, 2021

¥108.83¥110.71

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113

Consolidated Financial Statementsa. Consolidated Statement of Financial Position(Millions of yen)

ASSETS
Current assets
Cash and cash equivalents������������������������������������������������������������������������������������������������������������������������������������������������������������
Trade and other receivables����������������������������������������������������������������������������������������������������������������������������������������������������������
Investments from asset management subsidiaries ������������������������������������������������������������������������������������������������������������������������
Securities pledged as collateral in asset management subsidiaries ������������������������������������������������������������������������������������������������
Derivative financial assets in asset management subsidiaries ��������������������������������������������������������������������������������������������������������
Other financial assets ������������������������������������������������������������������������������������������������������������������������������������������������������������������
Inventories �������������������������������������������������������������������������������������������������������������������������������������������������������������������
Other current assets�������������������������������������������������������������������������������������������������������������������������������������������������������

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

11
12,31
31
31
31
13,31
14
15

¥ 3,369,015
2,072,326–––
313,487
185,097
460,970
6,400,895
9,236,048
15,636,943¥ 4,662,725
2,216,434
658,227
1,427,286
188,056
1,055,222
126,830
446,739
10,781,519
38,647
10,820,166$ 42,116,566
20,020,179
5,945,506
12,892,115
1,698,636
9,531,406
1,145,606
4,035,218
97,385,232
349,083
97,734,315

1,264,516
1,293,692
3,998,167
1,985,972
212,0363,240,361
6,892,232
1,211,511
59,2781,100,694
221,371
140,519
21,620,349¥ 37,257,292

1,668,578
1,147,020
4,684,419
2,308,370
246,996
4,349,971
13,646,774
3,706,784
908,660
1,919,262
206,069
137,384
34,930,287¥ 45,750,453

15,071,611
10,360,582
42,312,519
20,850,601
2,231,018
39,291,582
123,265,956
33,481,926
8,207,569
17,335,941
1,861,340
1,240,935
315,511,580$ 413,245,895

Management: The Foundation Supporting Our Growth

Financial Section

Subtotal���������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Assets classified as held for sale����������������������������������������������������������������������������������������������������������������������������������������������������

(Thousands of U.S. dollars)

Notes

6,16

Total current assets �����������������������������������������������������������������������������������������������������������������������������������������������������������
Non-current assets
Property, plant and equipment ����������������������������������������������������������������������������������������������������������������������������������������������������
Right-of-use assets ����������������������������������������������������������������������������������������������������������������������������������������������������������������������
Goodwill��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Intangible assets��������������������������������������������������������������������������������������������������������������������������������������������������������������������������

17
18
19
19

Costs to obtain contracts��������������������������������������������������������������������������������������������������������������������������������������������������������������
Investments accounted for using the equity method��������������������������������������������������������������������������������������������������������������������
Investments from SVF1 and SVF2 accounted for using FVTPL��������������������������������������������������������������������������������������������������������
Investment securities��������������������������������������������������������������������������������������������������������������������������������������������������������������������
Derivative financial assets ������������������������������������������������������������������������������������������������������������������������������������������������������������
Other financial assets ������������������������������������������������������������������������������������������������������������������������������������������������������������������
Deferred tax assets ����������������������������������������������������������������������������������������������������������������������������������������������������������������������
Other non-current assets��������������������������������������������������������������������������������������������������������������������������������������������������������������

22
31
31
31
13,31
24
15

Total non-current assets�����������������������������������������������������������������������������������������������������������������������������������������������������
Total assets������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

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114

(Millions of yen)

LIABILITIES AND EQUITYCurrent liabilities
Interest-bearing debt��������������������������������������������������������������������������������������������������������������������������������������������������������������������
Lease liabilities������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Deposits for banking business������������������������������������������������������������������������������������������������������������������������������������������������������
Third-party interests in SVF1 ��������������������������������������������������������������������������������������������������������������������������������������������������������
Trade and other payables�������������������������������������������������������������������������������������������������������������������������������������������������������������
Derivative financial liabilities in asset management subsidiaries ����������������������������������������������������������������������������������������������������
Derivative financial liabilities ��������������������������������������������������������������������������������������������������������������������������������������������������������
Other financial liabilities ��������������������������������������������������������������������������������������������������������������������������������������������������������������

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

25,31
20,31
26,31
9,31
27,31
31
31
28,31

¥ 3,845,153
378,383
873,087
24,691
1,585,326–
9,267
248,010
164,298
11,448596,499
7,736,162
6,454,971
14,191,133¥ 7,735,239
307,447
1,109,240–
1,970,275
14,673322,21351,285391,930
24,939952,443
12,879,684
11,271
12,890,955$ 69,869,379
2,777,048
10,019,330–
17,796,721
132,535
2,910,424
463,237
3,540,150
225,264
8,603,045
116,337,133
101,807
116,438,940

9,286,729
761,9434,559,728
128,075
77,20788,791
711,216
79,553
15,693,242¥ 29,884,375

10,777,736
727,554
6,601,791
32,692415,407
110,586
2,030,651
207,488
20,903,905¥ 33,794,860

97,351,061
6,571,710
59,631,388
295,294
3,752,208
998,880
18,342,074
1,874,158
188,816,773$ 305,255,713

Management: The Foundation Supporting Our Growth

Financial Section

Income taxes payables������������������������������������������������������������������������������������������������������������������������������������������������������������������
Provisions ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Other current liabilities ����������������������������������������������������������������������������������������������������������������������������������������������������������������

30
29

Subtotal������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Liabilities directly relating to assets classified as held for sale ��������������������������������������������������������������������������������������������������������

(Thousands of U.S. dollars)

Notes

6,16

Total current liabilities����������������������������������������������������������������������������������������������������������������������������������������������������������������������
Non-current liabilities
Interest-bearing debt��������������������������������������������������������������������������������������������������������������������������������������������������������������������
Lease liabilities������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Third-party interests in SVF1 ��������������������������������������������������������������������������������������������������������������������������������������������������������
Derivative financial liabilities ��������������������������������������������������������������������������������������������������������������������������������������������������������
Other financial liabilities ��������������������������������������������������������������������������������������������������������������������������������������������������������������
Provisions ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Deferred tax liabilities ������������������������������������������������������������������������������������������������������������������������������������������������������������������
Other non-current liabilities����������������������������������������������������������������������������������������������������������������������������������������������������������

25,31
20,31
9,31
31
28,31
30
24
29

Total non-current liabilities ��������������������������������������������������������������������������������������������������������������������������������������������������������������
Total liabilities ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Corporate Information

115

(Millions of yen)

LIABILITIES AND EQUITY

Notes

EquityEquity attributable to owners of the parent
Common stock����������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Capital surplus ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Other equity instruments��������������������������������������������������������������������������������������������������������������������������������������������������������������
Retained earnings������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Treasury stock������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Accumulated other comprehensive income����������������������������������������������������������������������������������������������������������������������������������
Subtotal������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Accumulated other comprehensive income directly relating to assets classified as held for sale ����������������������������������������������������
Total equity attributable to owners of the parent������������������������������������������������������������������������������������������������������������������������������
Non-controlling interests��������������������������������������������������������������������������������������������������������������������������������������������������������������
Total equity������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Total liabilities and equity������������������������������������������������������������������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

36
36
36
36
36
36
6,16
21

Growth Assets

As of March 31, 2020

As of March 31, 2021

238,772
1,490,325
496,876
3,945,820(101,616)(362,259)
5,707,918
205,695
5,913,613
1,459,304
7,372,917¥ 37,257,292

238,7722,618,504
496,876
8,810,422(2,290,077)
338,329
10,212,826
267
10,213,093
1,742,500
11,955,593¥ 45,750,453

Management: The Foundation Supporting Our Growth

Financial Section¥¥(Thousands of U.S. dollars)

As of March 31, 2021$

2,156,734
23,651,919
4,488,086
79,581,086(20,685,367)
3,055,993
92,248,451
2,412
92,250,863
15,739,319
107,990,182$ 413,245,895

Corporate Information

116

b. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

3940

¥ 5,238,938(2,584,273)
2,654,665¥ 5,628,167(2,753,238)
2,874,929$ 50,837,025(24,868,919)
25,968,10641

484,308(1,844,867)(49,594)(1,410,153)

945,944
6,292,024
291,038
7,529,006

8,544,341
56,833,385
2,628,832
68,006,558(2,060,080)(293,897)
624,015
15
540,930(5,457)50,038(792,655)¥ (742,617)(2,271,497)(307,250)
616,432(480,251)(2,246,417)(44,496)
5,670,456(1,303,168)¥ 4,367,288(20,517,541)(2,775,269)
5,567,988(4,337,919)(20,291,004)(401,914)
51,219,005(11,771,005)$ 39,448,000(58,143)¥ (800,760)

710,948¥ 5,078,236

6,421,714$ 45,869,714¥ (961,576)(912,149)(49,427)¥ 4,987,962
4,276,729
711,233$ 45,054,304
38,630,016
6,424,288

160,816
169,532(8,716)¥ (800,760)

90,27490,559(285)¥ 5,078,236

815,410
817,984(2,574)$ 45,869,714

Notes

Continuing operations*1
Net sales����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Cost of sales��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Gross profit������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Gain on investments
Gain on investments at Investment Business of Holding Companies����������������������������������������������������������������������������������������������
Gain (loss) on investments at SVF1, SVF2, and others ������������������������������������������������������������������������������������������������������������������
Gain (loss) on other investments ��������������������������������������������������������������������������������������������������������������������������������������������������
Total gain on investments������������������������������������������������������������������������������������������������������������������������������������������������������������
Selling, general and administrative expenses��������������������������������������������������������������������������������������������������������������������������������
Finance cost ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income on equity method investments ����������������������������������������������������������������������������������������������������������������������������������������
Derivative gain (loss) (excluding gain (loss) on investments) ����������������������������������������������������������������������������������������������������������
Change in third-party interests in SVF1 ����������������������������������������������������������������������������������������������������������������������������������������
Other loss������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income before income tax������������������������������������������������������������������������������������������������������������������������������������������������������������
Income taxes��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

9

41

40
42
43
44
9
45
24

Net income from continuing operations ������������������������������������������������������������������������������������������������������������������������������������
Discontinued operations*1
Net income from discontinued operations����������������������������������������������������������������������������������������������������������������������������������
Net income������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

6

Net income attributable to
Owners of the parent ������������������������������������������������������������������������������������������������������������������������������������������������������������������
Net income from continuing operations ������������������������������������������������������������������������������������������������������������������������������������
Net income from discontinued operations����������������������������������������������������������������������������������������������������������������������������������
Non-controlling interests��������������������������������������������������������������������������������������������������������������������������������������������������������������
Net income from continuing operations ������������������������������������������������������������������������������������������������������������������������������������
Net income from discontinued operations����������������������������������������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

21

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

117

Consolidated Statement of Income(U.S. dollars)

(Yen)

Notes

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (454.67)(23.83)¥ (478.50)¥ 2,243.80
375.81¥ 2,619.61$ 20.27
3.39$ 23.66(461.50)(23.83)¥ (485.33)

2,062.55
374.74¥ 2,437.29

18.63
3.39
$ 22.02

Earnings per share*3
Basic earnings per share
Continuing operations ������������������������������������������������������������������������������������������������������������������������������������������������������������

47

Discontinued operations����������������������������������������������������������������������������������������������������������������������������������������������������������

47

Total basic earnings per share ������������������������������������������������������������������������������������������������������������������������������������������������������

47

Diluted earnings per share
Continuing operations ������������������������������������������������������������������������������������������������������������������������������������������������������������

47

Discontinued operations����������������������������������������������������������������������������������������������������������������������������������������������������������

47

Total diluted earnings per share ��������������������������������������������������������������������������������������������������������������������������������������������������

47*1 Operating results related to Brightstar are presented as discontinued operations, separately from continuing operations for the fiscal year ended March 31, 2021. In order to reflect these changes in presentation, similar reclassifications have been made for the fiscal year ended March 31,
2020. The details are described in “Note 6. Discontinued operations.”*2 Presentation method for the consolidated statement of income has been changed from the three-month period ended June 30, 2020. The details are described in “(4) Changes in presentation” under “Note 2. Basis of preparation of consolidated financial statements.”*3 The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted earnings per share” are calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31, 2020.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

118

Consolidated Statement of Comprehensive Income(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (800,760)¥ 5,078,236$ 45,869,714

46
31,46

(21,281)(6,245)(27,526)(40)
29,49529,455(361)
266,416
266,055

31,46
31,46
35,46
22,46

(1,502)56,157(521,620)
4,912(462,053)(489,579)¥ (1,290,339)

554
33,775502,085(65,861)
470,553
500,008¥ 5,578,244

5,004
305,076
4,535,137(594,896)
4,250,321
4,516,376$ 50,386,090(1,149,083)(141,256)

5,070,088
508,156

45,796,116
4,589,974¥ (1,425,587)(1,310,448)(115,139)
135,248¥ (1,290,339)¥ 5,482,739
4,974,298
508,441
95,505¥ 5,578,244$ 49,523,431
44,930,883
4,592,548
862,659$ 50,386,090

Management: The Foundation Supporting Our Growth

Financial Section

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
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*Comprehensive income from continuing operations ��������������������������������������������������������������������������������������������������������������������
Comprehensive income from discontinued operations������������������������������������������������������������������������������������������������������������������

6

Total comprehensive income attributable to*
Owners of the parent ������������������������������������������������������������������������������������������������������������������������������������������������������������������
Comprehensive income from continuing operations�����������������������������������������������������������������������������������������������������������������
Comprehensive income from discontinued operations��������������������������������������������������������������������������������������������������������������
Non-controlling interests��������������������������������������������������������������������������������������������������������������������������������������������������������������
* The details of discontinued operations are described in “Note 6. Discontinued operations.”

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Corporate Information

119c. Consolidated Statement of Changes in Equity

For the fiscal year ended March 31, 2020

(Millions of yen)

Notes

As of April 1, 2019����������������������������������������������������������������������������������

Commonstock

Capitalsurplus¥238,772 ¥1,467,762

Other equity
instruments

Accumulated
other
Retained
comprehensive
earnings Treasury stockincome¥496,876 ¥5,571,285¥(443,482)

Equity attributable to owners of the parent
Accumulated othercomprehensive
income directly
relating to assets
classified as held
Subtotalfor sale
Total¥290,268 ¥7,621,481¥

Noncontrollinginterests

Total equity– ¥7,621,481 ¥1,387,723 ¥9,009,204

Effect of retrospective adjustments due to adoption of new standards*��

–

–

–

13,997––

13,997–

13,997(1,357)

12,640

As of April 1, 2019 (after adjustments)��������������������������������������������������

238,772

1,467,762

496,876

5,585,282(443,482)

290,268

7,635,478–

7,635,478

1,386,366

9,021,844(800,760)

Comprehensive income
Net income��������������������������������������������������������������������������������������������

–

–

–

(961,576)––(961,576)–(961,576)

160,816

Other comprehensive income ����������������������������������������������������������������

–

–

–

–

–

(464,011)(464,011)–(464,011)(25,568)(489,579)

Total comprehensive income������������������������������������������������������������������

–

–

–

(961,576)–(464,011) (1,425,587)–(1,425,587)

135,248(1,290,339)

Transactions with owners and other transactions
Cash dividends �������������������������������������������������������������������������������������� 37

–

–

–

(68,752)––(68,752)–(68,752)(157,894)(226,646)

Distribution to owners of other equity instruments �������������������������������� 36

–

–

–

(31,071)––(31,071)–(31,071)–(31,071)

Transfer of accumulated other comprehensive income to retained earnings������

–

–

–

(17,179)–

17,179

–

–

–

–

–

Purchase and disposal of treasury stock�������������������������������������������������� 36

–

(739)

–

(2,748)(216,270)–(219,757)–(219,757)–(219,757)

Retirement of treasury stock ������������������������������������������������������������������ 36

–

–

–

(558,136)

558,136

–

–

–

–

–

–

Changes from business combination������������������������������������������������������ 10

–

–

–

–

–

–

–

–

–

191,325

191,325

Changes in interests in subsidiaries�������������������������������������������������������� 36–

42,358––––42,358–42,358(94,359)(52,001)

Changes in associates’ interests in their subsidiaries��������������������������������

–(24,843)

–

–

–

–

(24,843)–(24,843)–(24,843)

Changes in interests in associates’ capital surplus ����������������������������������

–

3,583

–

–

–

–

3,583

–

3,583

–

3,583

Share-based payment transactions ��������������������������������������������������������

–

2,204

–

–

–

–

2,204

–

2,204

(750)

1,454

Transfer of accumulated other comprehensive income held for sale ������ 6

–

–

–

–

–

(205,695)(205,695)

205,695–––

Other ����������������������������������������������������������������������������������������������������

–

–

–

–

–

–

–

–

–

(632)

(632)

–

22,563–(677,886)

341,866(188,516)(501,973)

205,695(296,278)(62,310)(358,588)¥496,876 ¥3,945,820¥(101,616)

Total transactions with owners and other transactions ����������������������
As of March 31, 2020������������������������������������������������������������������������������

¥238,772 ¥1,490,325¥(362,259) ¥5,707,918¥205,695 ¥5,913,613 ¥1,459,304 ¥7,372,917* As a result of the adoption of IFRS 16 “Leases,” cumulative effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

120

(Millions of yen)

For the fiscal year ended March 31, 2021

Notes

As of April 1, 2020����������������������������������������������������������������������������������

Commonstock

Capitalsurplus¥238,772 ¥1,490,325

Other equity
instruments

Accumulated
other
Retained
comprehensive
earnings Treasury stockincome¥496,876 ¥3,945,820¥(101,616)

Equity attributable to owners of the parent
Accumulated othercomprehensive
income directly
relating to assets
classified as held
Subtotalfor sale
Total¥(362,259) ¥5,707,918

Noncontrollinginterests

Total equity¥205,695 ¥5,913,613 ¥1,459,304 ¥7,372,917

Comprehensive income
Net income��������������������������������������������������������������������������������������������

–

–

–

4,987,962––

4,987,962–

4,987,962

90,274

Other comprehensive imcome����������������������������������������������������������������

–

–

–

–

–

700,472

700,472(205,695)

494,777

5,231

5,078,236
500,008

Total comprehensive income������������������������������������������������������������������

–

–

–

4,987,962–

700,472

5,688,434(205,695)

5,482,739

95,505

5,578,244

Transactions with owners and other transactions
Cash dividends �������������������������������������������������������������������������������������� 37

–

–

–

(86,841)––(86,841)–(86,841)(219,698)(306,539)

Distribution to owners of other equity instruments �������������������������������� 36

–

–

–

(30,139)––(30,139)–(30,139)–(30,139)

Transfer of accumulated other comprehensive income to retained earnings������

–

–

–

(383)

–

383

–

–

–

–

–

Purchase and disposal of treasury stock�������������������������������������������������� 36

–

–

–

Changes from business combination������������������������������������������������������ 10

–

–

–

–

Changes from loss of control������������������������������������������������������������������ 6

–

–

–

–

Changes in interests in subsidiaries�������������������������������������������������������� 36–

1,126,469–

Changes in associates’ interests in their subsidiaries��������������������������������

–

4,794

–

Share-based payment transactions ��������������������������������������������������������

–(3,278)Transfer of accumulated other comprehensive income held for sale ������ 16–

Other ����������������������������������������������������������������������������������������������������
Total transactions with owners and other transactions ����������������������
As of March 31, 2021������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

– (2,190,913)– (2,190,913)

–

–

–

–

–

–

–

–

–

–

1,126,469

–

–

–

4,794

–

–

–

–

–

–

–

–

–

194

–

(3,545)––

1,128,179–¥238,772 ¥2,618,504

Table of Contents(2,452) (2,188,461)–

265,219

265,219–(424,226)(424,226)–

1,126,469

559,955

1,686,424

–

4,794

–

4,794

(3,278)–(3,278)

3,777

499

(267)

(267)

267

–

–

–

–

(3,351)–(3,351)

2,664

(687)

267 (1,183,259)

187,691(995,568)(123,360) (2,188,461)

116 (1,183,526)¥496,876 ¥8,810,422 ¥(2,290,077)¥338,329 ¥10,212,826

Message from Our CEO

Who We Are

Growth Assets– (2,190,913)¥

Management: The Foundation Supporting Our Growth267 ¥10,213,093 ¥1,742,500 ¥11,955,593

Financial Section

Corporate Information

121

(Thousands of U.S. dollars)

Notes

As of April 1, 2020����������������������������������������������������������������������������������

Commonstock

Capitalsurplus

Other equity
instruments

Accumulated
other
Retained
comprehensive
earnings Treasury stockincomeEquity attributable to owners of the parent
Accumulated othercomprehensive
income directly
relating to assets
classified as held
Subtotalfor sale
Total$2,156,734 $13,461,521 $4,488,086 $35,641,044 $ (917,857) $(3,272,144) $51,557,384

Noncontrollinginterests

Total equity$1,857,962 $53,415,346 $13,181,321 $66,596,667

Comprehensive income
Net income��������������������������������������������������������������������������������������������

––– 45,054,304–

Other comprehensive imcome����������������������������������������������������������������

–

–

–

–

–

6,327,089– 45,054,304

Total comprehensive income������������������������������������������������������������������

––– 45,054,304–

6,327,089 51,381,393

6,327,089– 45,054,304(1,857,962)

4,469,127(1,857,962) 49,523,431

815,410 45,869,714
47,2494,516,376

862,659 50,386,090

Transactions with owners and other transactions
Cash dividends �������������������������������������������������������������������������������������� 37

–

–

–

(784,401)––(784,401)–(784,401) (1,984,446) (2,768,847)

Distribution to owners of other equity instruments �������������������������������� 36

–

–

–

(272,234)––(272,234)–(272,234)–(272,234)

Transfer of accumulated other comprehensive income to retained earnings������

–

–

–

(3,460)

–

3,460

–

–

–

–

–

Purchase and disposal of treasury stock�������������������������������������������������� 36

–

–

–

(22,148) (19,767,510)

Changes from business combination������������������������������������������������������ 10

–

–

–

–

–

–

–

–

–

Changes from loss of control������������������������������������������������������������������ 6

–

–

–

–

–

–

–

–

– (3,831,867) (3,831,867)

Changes in interests in subsidiaries�������������������������������������������������������� 36– 10,174,953

–

–

–

– 10,174,953– 10,174,953

Changes in associates’ interests in their subsidiaries��������������������������������

–43,302––––43,302–43,302–43,302

Share-based payment transactions ��������������������������������������������������������

–(29,609)

–

–

–

–

(29,609)–(29,609)

34,116

4,507

Transfer of accumulated other comprehensive income held for sale ������ 16

–

–

–

–

–

(2,412)(2,412)

2,412

–

–

–

Other ����������������������������������������������������������������������������������������������������

–

1,752

–

(32,019)––(30,267)–(30,267)

24,063(6,204)

Total transactions with owners and other transactions ����������������������
As of March 31, 2021������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

– 10,190,398– (1,114,262) (19,767,510)– (19,789,658)

1,048 (10,690,326)$2,156,734 $23,651,919 $4,488,086 $79,581,086 $(20,685,367) $ 3,055,993 $92,248,451

Table of Contents

Message from Our CEO

Who We Are

Growth Assets– (19,789,658)

2,412 (10,687,914)$

Management: The Foundation Supporting Our Growth– (19,789,658)
2,395,619

2,395,619

5,057,854 15,232,807

1,695,339 (8,992,575)

2,412 $92,250,863 $15,739,319 $107,990,182

Financial Section

Corporate Information

122d. Consolidated Statement of Cash Flows(Millions of yen)

Notes

Cash flows from operating activities
Net income from continuing operations������������������������������������������������������������������������������������������������������������������������������������
Net income from discontinued operations��������������������������������������������������������������������������������������������������������������������������������
Net income����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Depreciation and amortization��������������������������������������������������������������������������������������������������������������������������������������������������
Gain on investments at Investment Business of Holding Companies������������������������������������������������������������������������������������������
Loss (gain) on investments at SVF1, SVF2, and others ��������������������������������������������������������������������������������������������������������������
Finance cost������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income on equity method investments��������������������������������������������������������������������������������������������������������������������������������������
Derivative (gain) loss (excluding (gain) loss on investments) ������������������������������������������������������������������������������������������������������
Change in third-party interests in SVF1 ������������������������������������������������������������������������������������������������������������������������������������
Loss (gain) on other investments and other loss������������������������������������������������������������������������������������������������������������������������
Income taxes����������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Decrease in investments from asset management subsidiaries ��������������������������������������������������������������������������������������������������
Increase/decrease in derivative financial assets and derivative financial liabilities in asset management subsidiaries��������������������
Increase in restricted cash in asset management subsidiaries ����������������������������������������������������������������������������������������������������
Increase in securities pledged as collateral in asset management subsidiaries����������������������������������������������������������������������������
Increase in trade and other receivables��������������������������������������������������������������������������������������������������������������������������������������
(Increase) decrease in inventories����������������������������������������������������������������������������������������������������������������������������������������������
Increase in trade and other payables ����������������������������������������������������������������������������������������������������������������������������������������
Gain relating to loss of control over discontinued operations����������������������������������������������������������������������������������������������������
Other����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Subtotal ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Interest and dividends received ������������������������������������������������������������������������������������������������������������������������������������������������
Interest paid ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income taxes paid��������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income taxes refunded ������������������������������������������������������������������������������������������������������������������������������������������������������������
Net cash provided by operating activities��������������������������������������������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

48
48

Growth Assets(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021¥(742,617)(58,143)(800,760)
2,051,472(484,308)
1,844,867
613,483(622,113)(4,337)(540,930)
50,650688,704––––(242,697)(374,722)
88,728–155,280
2,423,317
49,688(597,772)(1,201,986)
444,632
1,117,879¥4,367,288
710,948
5,078,236
851,316(1,441,509)(6,292,024)
309,294(616,177)
480,184
2,246,417(231,152)
1,305,251
1,631,430(168,405)(107,601)(1,351,311)(288,416)
6,276
199,064(722,004)
230,306
1,119,175
27,639(265,104)(588,615)
264,155
557,250$39,448,000
6,421,714
45,869,714
7,689,603(13,020,585)(56,833,385)
2,793,731(5,565,685)
4,337,314
20,291,004(2,087,905)
11,789,819
14,736,067(1,521,136)(971,918)(12,205,862)(2,605,149)
56,6891,798,067(6,521,579)
2,080,265
10,109,069
249,652(2,394,580)(5,316,728)
2,386,008
5,033,421

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

123

(Millions of yen)

Notes

Cash flows from investing activities
Payments for acquisition of investments������������������������������������������������������������������������������������������������������������������������������������
Proceeds from sales/redemption of investments������������������������������������������������������������������������������������������������������������������������
Payments for acquisition of investments by SVF1 and SVF2 ������������������������������������������������������������������������������������������������������
Proceeds from sales of investments by SVF1������������������������������������������������������������������������������������������������������������������������������
Payments for acquisition of investments by asset management subsidiaries������������������������������������������������������������������������������
Payments for acquisition of control over subsidiaries ����������������������������������������������������������������������������������������������������������������
Proceeds from acquisition of control over subsidiaries ��������������������������������������������������������������������������������������������������������������
Payments for acquisition of marketable securities for short-term trading ����������������������������������������������������������������������������������
Proceeds from sales/redemption of marketable securities for short-term trading������������������������������������������������������������������������
Purchase of property, plant and equipment, and intangible assets��������������������������������������������������������������������������������������������
Payments for loan receivables ��������������������������������������������������������������������������������������������������������������������������������������������������
Collection of loan receivables����������������������������������������������������������������������������������������������������������������������������������������������������
Payments into restricted cash����������������������������������������������������������������������������������������������������������������������������������������������������
Payments into trust accounts in SPACs��������������������������������������������������������������������������������������������������������������������������������������
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������������������������������������������������������������������������������������������������������������������������������������������
Repayment of lease liabilities����������������������������������������������������������������������������������������������������������������������������������������������������
Contributions into SVF1 from third-party investors��������������������������������������������������������������������������������������������������������������������
Distribution/repayment from SVF1 to third-party investors��������������������������������������������������������������������������������������������������������
Proceeds from non-controlling interests subject to possible redemption������������������������������������������������������������������������������������
Proceeds from the partial sales of shares of subsidiaries to non-controlling interests������������������������������������������������������������������
Purchase of shares of subsidiaries from non-controlling interests ����������������������������������������������������������������������������������������������
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������������������������������������������������������������������������������������������������
Decrease in cash and cash equivalents relating to transfer of assets classified as held for sale����������������������������������������������
(Decrease) 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����������������������������������������������������������������������������������������������������������������������

48

10,48
10

48

48
48

25
25
25
9
9
48
48

21

6

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

(1,098,640)
283,892(1,816,291)
129,832–(388,320)
61(245,070)
86,449(1,232,551)(210,379)
95,134(15,777)–
124,739(4,286,921)(4,186,663)
3,845,787(856,608)
856,408(95,616)(13,824)
312,791(107,890)
257,255(646,888)(293,669)
42,970(351,343)(350,990)
119,681(1,468,599)(37,816,485)
34,737,485(7,737,404)
7,735,598(863,662)(124,867)
2,825,318(974,528)
2,323,683(5,843,086)(2,652,597)
388,131(3,173,543)(3,170,355)
1,081,035(13,265,277)

133,173
8,601,926(5,646,727)(695,370)
1,843,660(771,282)–
435(82,932)(31,071)(231,980)(68,659)(156,999)
26,6892,920,863(342)(240,982)(489,503)
3,858,518¥3,369,015

1,575,327
7,965,114(5,790,901)(402,257)
979,266(1,362,066)
345,466
1,552,957(101,222)(30,139)(2,226,229)(86,760)(220,313)(4,166)2,194,077
12,230(1,248)1,293,710
3,369,015¥4,662,725

14,229,311
71,945,750(52,306,937)(3,633,430)
8,845,326(12,303,008)
3,120,459
14,027,251(914,299)(272,234)(20,108,653)(783,669)(1,990,001)(37,629)
19,818,237
110,467(11,273)
11,685,575
30,430,991$42,116,566

Notes:
1. Cash flows from continuing operations and cash flows from discontinued operations are included. The details are described in “Note 6. Discontinued operations.”
2. Presentation method for the consolidated statement of cash flows has been changed from the three-month period ended June 30, 2020. The details are described in “(4) Changes in presentation” under “Note 2. Basis of preparation of consolidated financial statements”
SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

124

Notes to Consolidated Financial Statements
1. Reporting entity
SoftBank Group Corp. is a corporation domiciled in Japan. The registered address of SoftBank Group
Corp.’s head 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 in various businesses in the information industry, with its core business being in the Investment
Business of Holding Companies segment, the SVF1 and Other SBIA-Managed Funds segment, the SoftBanksegment, and the Arm segment. The details are described in “(1) Description of reportable segments”
under “Note 7. Segment information.” In addition, from the three-month period ended September 30,
2020, Brightstar has been classified as discontinued operations as it was highly probable that Brightstar
would no longer be a subsidiary of the Company reaching a final agreement with Brightstar CapitalPartners, in order to sell all of its shares in Brightstar to a newly formed subsidiary of Brightstar CapitalPartners. The details are described in “(2) Brightstar” under “Note 6. Discontinued operations.”
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 ofthe primary economic environment of SoftBank Group Corp. (“functional currency”), and yen amounts
are rounded to the nearest million.
The translations of Japanese yen amounts into U.S. dollar amounts are included solely for theconvenience of readers outside of Japan and have been made at a rate of ¥110.71 to $1, the approximate rate of exchange at March 31, 2021. 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)
Amounts presented under “Derivative financial assets (non-current),” which were previously
included in “Other financial assets (non-current)” as of March 31, 2020, are separately presented asof March 31, 2021 since the amount increased and became significant. In order to reflect thechange, ¥59,278 million, which was previously included in “Other financial assets (non-current) asof March 31, 2020, was reclassified as “Derivative financial assets (non-current).”
SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(Consolidated statement of income)a. Operating results related to Brightstar are presented as discontinued operations, separately fromcontinuing operations for the fiscal year ended March 31, 2021. In order to reflect thesechanges in presentation, similar reclassifications have been made for the fiscal year ended March
31, 2020. The details are described in “Note 6. Discontinued operations.”b. SoftBank Group Corp. is a strategic investment holding company that conducts investments andmanages investment portfolios in a number of companies directly (including investments
through subsidiaries) or through investment funds (such as SVF1). The Company has been
focusing on the investment activities including those led by SVF1 that began its operation in2017, thereby transforming business structures.
Following the completion of the merger between Sprint and T-Mobile US, Inc. on April 1, 2020, Sprint is nolonger a subsidiary of the Company from that date. As a result, the materiality of the investment activities
has increased even further for the overall consolidated financial results of the Company. Consequently, theCompany has revised the presentation of the consolidated statement of income from the three-month
period ended June 30, 2020. “Operating income,” as previously presented, did not include gain and loss on
investments other than those included in “Operating income from SoftBank Vision Fund and other
SBIA-managed funds.” Therefore, the Company determined that it was no longer meaningful to appropriately present the consolidated financial results of the Company as a strategic investment holding company.
For these reasons, the Company determined not to present “Operating income” in the consolidated
statement of income from the three-month period ended June 30, 2020.
In connection with this change, the Company also determined to present “Gain (loss) on investments” inthe consolidated statement of income from the three-month period ended June 30, 2020 in order to clearlypresent investment performance in the consolidated financial results of the Company. “Gain (loss) on
investments” includes realized gain and loss from sales of investments in financial assets at FVTPL for whichinvestment performance is measured at fair value, unrealized gain and loss on valuation of investments,
dividend income from investments, derivative gain and loss relating to financial assets at FVTPL, and realized
gain and loss from sales of investments accounted for using the equity method.
Furthermore, the Company determined to present, as component of “Gain (loss) on investments,” “Gain(loss) on investments at Investment Business of Holding Companies,” “Gain (loss) on investments at SVF1,
SVF2, and others” and “Gain (loss) on other investments.” Investment Business of Holding Companies
segment is included in the reportable segments from the three-month period ended June 30, 2020. The
details are described in “Note 7. Segment information.” Derivative gain and loss other than those mentioned
above are presented as “Derivative gain (loss) (excluding gain (loss) on investments).” In addition, income orloss on equity method investments arising from recognizing the Company’s share in profit or loss of theinvestees is presented as “Income on equity method investments” as previously presented.
In order to reflect these changes in presentation, similar reclassifications have been made to the consolidated
statement of income for the fiscal year ended March 31, 2020. The details of the reclassifications are as follows.
Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

125For the fiscal year ended March 31, 2020
(Millions of yen)

Before changes in presentation (after reclassification of discontinued operations)

Reclassification amounts

After changes in presentation

Continuing operations

Gross profit��������������������������������������������������������������������������������������������������������������������������

¥5,238,938(2,584,273)
2,654,665–––¥5,238,938(2,584,273)
2,654,665

Selling, general and administrative expenses�����������������������������������������������������������������
Gain relating to loss of control over subsidiaries*1��������������������������������������������������������
Other operating income (loss)*2 ������������������������������������������������������������������������������������

––––(1,973,602)
11,879(121,051)

484,308(1,844,867)(49,594)(1,410,153)(86,478)(11,879)
121,051484,308(1,844,867)(49,594)(1,410,153)(2,060,080)––

571,891(1,931,345)(1,359,454)(293,897)
638,457
339,842(9,271)(70,982)(571,891)
1,931,345
1,359,454–(14,442)(339,842)
9,271
70,997–––(293,897)
624,015––
15

1,218,527(668,971)(1,218,527)
668,971––

540,930(285,143)–
50,038(792,655)(742,617)–
285,143(5,457)–––

540,930–(5,457)50,038(792,655)(742,617)

Net income from discontinued operations����������������������������������������������������������������������������
Net income��������������������������������������������������������������������������������������������������������������������������

(58,143)¥ (800,760)––(58,143)¥(800,760)

SoftBank Group Corp. ANNUAL REPORT 2021

Message from Our CEO

Net sales������������������������������������������������������������������������������������������������������������������������������
Cost of sales��������������������������������������������������������������������������������������������������������������������

Net sales
Cost of sales
Gross profit
Gain (loss) on investments

Operating income (excluding operating income from SoftBank Vision Fundand other SBIA-managed funds)
Operating income from SoftBank Vision Fund and other SBIA-managed funds*3������������������
Operating income����������������������������������������������������������������������������������������������������������������
Finance cost��������������������������������������������������������������������������������������������������������������������
Income (loss) on equity method investments������������������������������������������������������������������
Dilution gain from changes in equity interest*4 ������������������������������������������������������������
Foreign exchange gain (loss)*5����������������������������������������������������������������������������������������
Derivative gain (loss)*6����������������������������������������������������������������������������������������������������
Gain relating to settlement of variable prepaid forward contracts using
Alibaba shares*7������������������������������������������������������������������������������������������������������������
Gain (loss) from financial instruments at FVTPL*8����������������������������������������������������������
Change in third-party interests in SoftBank Vision Fund and other
SBIA-managed funds ����������������������������������������������������������������������������������������������������
Other non-operating income (loss)*9������������������������������������������������������������������������������
Income before income tax������������������������������������������������������������������������������������������������
Income taxes��������������������������������������������������������������������������������������������������������������������
Net income from continuing operations ��������������������������������������������������������������������������
Discontinued operations������������������������������������������������������������������������������������������������������

Table of Contents

Gain (loss) on investments at Investment Business of Holding Companies
Gain (loss) on investments at SVF1, SVF2, and others
Gain (loss) on other investments
Total gain (loss) on investments
Selling, general and administrative expenses

Finance cost
Income (loss) on equity method investments

Derivative gain (loss) (excluding gain (loss) on investments)

Change in third-party interests in SVF1
Other gain (loss)
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations

Who We Are

Growth Assets

Net income from discontinued operations
Net income

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information126

*1 ¥11,879 million of “Gain relating to loss of control over subsidiaries,” which was separately presented, was reclassified as “Other gain (loss)” since the amount decreased and became not significant.
*2 ¥(121,051) million previously presented in “Other operating income (loss)” was reclassified as “Gain (loss) on other investments” for ¥(48,922) million, “Income (loss) on equity method investments” for ¥(14,442) million, and “Other gain (loss)” for ¥(57,687) million.
*3 Of ¥(1,931,345) million previously presented in “Operating income from SoftBank Vision Fund and other SBIA-managed funds,” gain and loss on investments was reclassified as “Gain (loss) on investments at SVF1, SVF2, and others” for ¥(1,844,867) million and other amounts werereclassified as “Selling, general and administrative expenses” for ¥(86,478) million.
*4 ¥339,842 million of “Dilution gain from changes in equity interest,” which was separately presented, was reclassified as “Other gain (loss)” since the amount decreased and became not significant.
*5 ¥(9,271) million of “Foreign exchange gain (loss),” which was separately presented, was reclassified as “Other gain (loss)” since the amount decreased and became not significant.
*6 Derivative gain and loss relating to gain and loss on investments of ¥(70,997) million, which was previously presented in “Derivative gain (loss),” was reclassified as “Gain (loss) on investments at Investment Business of Holding Companies” for ¥(66,343) million and “Gain (loss) on otherinvestments” for ¥(4,654) million.
*7 ¥1,218,527 million previously presented in “Gain relating to settlement of variable prepaid forward contract using Alibaba shares” was reclassified as “Gain (loss) on investments at Investment Business of Holding Companies.”*8 ¥(668,971) million previously presented in “Gain (loss) from financial instruments at FVTPL” was reclassified as “Gain (loss) on investments at Investment Business of Holding Companies” for ¥(667,983) million and “Gain (loss) on other investments” for ¥(988) million.
*9 ¥(285,143) million previously presented in “Other non-operating income (loss)” was reclassified as “Gain (loss) on investments at Investment Business of Holding Companies” for ¥107 million, “Gain (loss) on other investments” for ¥4,970 million, and “Other gain (loss)” for ¥(290,220)
million.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

127

(Consolidated statement of cash flows)
For the fiscal year ended March 31, 2020

a. The Company determined not to present “Operating income” in the consolidated statement of income. In order to reflect the change in presentation in the consolidated statement of income, similar reclassifications have been made to the consolidated statement of cash flows for the fiscal year ended March 31, 2020. The details of the reclassifications are as follows.
(Millions of yen)

Before changes in presentation

Reclassification amounts

After changes in presentation

Cash flows from operating activities�����������������������������������������������������������������������������������
Net income from continuing operations �������������������������������������������������������������������������
Net income from discontinued operations�����������������������������������������������������������������������
Net income�������������������������������������������������������������������������������������������������������������������������
Depreciation and amortization ���������������������������������������������������������������������������������������
Gain relating to loss of control over subsidiaries*1�����������������������������������������������������������

(Gain) loss on investments at SoftBank Vision Fund and other SBIA-managed funds �������
Finance cost �������������������������������������������������������������������������������������������������������������������
(Income) loss on equity method investments�������������������������������������������������������������������
Dilution gain from changes in equity interest*2 ���������������������������������������������������������������
Derivative (gain) loss*3�����������������������������������������������������������������������������������������������������
Gain relating to settlement of variable prepaid forward contract using Alibaba shares*4 �(Gain) loss from financial instruments at FVTPL*5�������������������������������������������������������������
Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds�
Foreign exchange (gain) loss and other non-operating (income) loss*6�����������������������������
Income taxes�������������������������������������������������������������������������������������������������������������������
(Increase) decrease in trade and other receivables�����������������������������������������������������������
(Increase) decrease in inventories�������������������������������������������������������������������������������������
Increase (decrease) in trade and other payables���������������������������������������������������������������
Other*7���������������������������������������������������������������������������������������������������������������������������
Subtotal�����������������������������������������������������������������������������������������������������������������������������

¥ (742,617)(58,143)(800,760)–––¥ (742,617)(58,143)(800,760)

2,051,472(11,879)–
11,8792,051,472––
1,844,867
613,483(636,555)(339,842)
66,660(1,218,527)
668,405(540,930)
290,578–
688,704(242,697)(374,722)
88,728276,332¥ 2,423,317(484,308)––
14,442339,842(70,997)
1,218,527(668,405)–(290,578)
50,650––––(121,052)(484,308)
1,844,867
613,483(622,113)–(4,337)––(540,930)–
50,650688,704(242,697)(374,722)
88,728155,280¥ 2,423,317–

Cash flows from operating activities
Net income from continuing operations
Net income from discontinued operations
Net income
Depreciation and amortization(Gain) loss on investments at Investment Business of Holding
Companies(Gain) loss on investments at SVF1 and SVF2, and others
Finance cost
(Income) loss on equity method investments
Derivative (gain) loss (excluding (gain) loss on investments)

Change in third-party interests in SVF1
(Gain) loss on other investments and other (gain) loss
Income taxes(Increase) decrease in trade and other receivables(Increase) decrease in inventories
Increase (decrease) in trade and other payables
Other
Subtotal*1 ¥(11,879) million previously presented in “Gain relating to loss of control over subsidiaries” was reclassified as “(Gain) loss on other investments and other (gain) loss.”*2 “Dilution gain from changes in equity interest,” which was separately presented, was reclassified as “(Gain) loss on other investments and other (gain) loss” since the amount became not significant.
*3 Derivative gain and loss relating to gain and loss on investments of ¥70,997 million, which was previously included in “Derivative (gain) loss,” was reclassified as “(Gain) loss on investments at Investment Business of Holding Companies” for ¥66,343 million and “(Gain) loss on otherinvestments and other (gain) loss” for ¥4,654 million.
*4 ¥(1,218,527) million previously presented in “Gain relating to settlement of variable prepaid forward contract using Alibaba shares” was reclassified as “(Gain) loss on investments at Investment Business of Holding Companies.”*5 ¥668,405 million previously presented in “(Gain) loss from financial instruments at FVTPL” was reclassified as “(Gain) loss on investments at Investment Business of Holding Companies” for ¥667,983 million and “(Gain) loss on other investments and other (gain) loss” for ¥422 million.
*6 ¥290,578 million previously presented in “Foreign exchange (gain) loss and other non-operating (income) loss” was reclassified as “(Gain) loss on other investments and other (gain) loss” for ¥290,685 million and “(Gain) loss on investments at Investment Business of Holding Companies” for ¥(107) million.
*7 ¥121,052 million previously included in “Other” was reclassified as “(Gain) loss on other investments and other (gain) loss” for ¥106,610 million and “(Income) loss on equity method investments” for ¥14,442 million.

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Financial Section

Corporate Information

128

b. Amounts presented under “Proceeds from acquisition of control over subsidiaries,” which werepreviously included in “Payments for acquisition of control over subsidiaries” in cash flows frominvesting activities for the fiscal year ended March 31, 2020, are separately presented for the
fiscal year ended March 31, 2021 since the amount increased and became significant. In orderto reflect the change, ¥61 million, which was previously included in “Payments for acquisition ofcontrol over subsidiaries” in cash flows from investing activities for the fiscal year ended March
31, 2020, was reclassified as “Proceeds from acquisition of control over subsidiaries” in cash
flows from investing activities.
c. Amounts presented under “Payments into restricted cash,” which were previously included in“Other” in cash flows from investing activities for the fiscal year ended March 31, 2020, areseparately presented for the fiscal year ended March 31, 2021 since the amount increased andbecame significant. In order to reflect the change, ¥(15,777) million, which was previously
included in “Other” in cash flows from investing activities for the fiscal year ended March 31,
2020, was reclassified as “Payments into restricted cash” in cash flows from investing activities.
d. Amounts presented under “Other” for the fiscal year ended March 31, 2021 include “Proceeds
for acquisition of control over subsidiaries,” which was separately presented in cash flows frominvesting activities for the fiscal year ended March 31, 2020, since the amount decreased andbecame not significant. In order to reflect the change, ¥2,506 million, which was separately
presented as “Proceeds for acquisition of control over subsidiaries” in cash flows from investing
activities in the consolidated statement of cash flows for the fiscal year ended March 31, 2020,
is now included in “Other.”e. Amounts presented under “Other” for the fiscal year ended March 31, 2021 include “Payments
into time deposits,” which was separately presented in cash flows from investing activities forthe fiscal year ended March 31, 2020, since the amount decreased and became not significant.
In order to reflect the change, ¥(10,583) million, which was separately presented as “Payments
into time deposits” in cash flows from investing activities in the consolidated statement of cash
flows for the fiscal year ended March 31, 2020, is now included in “Other.”f. Amounts presented under “Other” for the fiscal year ended March 31, 2021 include “Proceedsfrom withdrawal of time deposits,” which was separately presented in cash flows from investing
activities for the fiscal year ended March 31, 2020, since the amount decreased and became notsignificant. In order to reflect the change, ¥693 million, which was separately presented as“Proceeds from withdrawal of time deposits” in cash flows from investing activities in the
consolidated statement of cash flows for the fiscal year ended March 31, 2020, is now included
in “Other.”

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(5) New standards and interpretations not yet adopted by the Company
There is no significant impact to the consolidated financial statements related to new standards andinterpretations not yet adopted by the Company.
(6) Definition of company names and abbreviations used in annual report 2021 including this note
“Co. Ltd.,” “Corporation,” etc., are omitted from the names of companies and organizations inprinciple.
Company names and abbreviations, except as otherwise stated or interpreted differently in thecontext, are as follows:
Company names / Abbreviations

Definition

SoftBank Group Corp. or SBG

SoftBank Group Corp. (stand-alone basis)

The Company

SoftBank Group Corp. and its subsidiaries* Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar

SB Northstar LP

SoftBank Vision Fund or SVF1

SoftBank Vision Fund L.P. and its alternative investment vehicles

SVF2

SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles

SBIA

SB Investment Advisers (UK) Limited

SprintSprint Corporation

T-Mobile

T-Mobile US, Inc. after merging with SprintArm

Arm Limited

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

From the three-month period ended September 30, 2020, the description of “SoftBank Vision Fundand other SBIA-managed funds” presented in the names of accounts and reportable segment has beenchanged as follows:

Consolidated Statement of Financial Position
Previous

Current

Investments from SoftBank Vision
Fund and other SBIA-managed funds
accounted for using FVTPL

Investments from SVF1 and SVF2 accounted for using FVTPL

Third-party interests in SoftBank Vision
Fund and other SBIA-managed funds

Third-party interests in SVF1

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Financial Section

Corporate Information129

3. Significant accounting policies
Accounting policies the Company has adopted have been applied consistently to all periods presented
in these consolidated financial statements.
Please refer to “(20) Significant accounting policies for the SVF1 and Other SBIA-Managed Funds
segment” for details of SVF1 and Other SBIA-managed funds.

Consolidated Statement of Income
Previous

Current

Gain (loss) on investments at SoftBank
Vision Fund and other SBIA-managed
funds

Gain (loss) on investments at SVF1, SVF2, and others

Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds

Change in third-party interests in SVF1

Consolidated Statement of Cash Flows
Previous

Current(Gain) loss on investments at SoftBank
Vision Fund and other SBIA-managed
funds(Gain) loss on investments at SVF1, SVF2, and others

Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds

Change in third-party interests in SVF1

Payments for acquisition of
investments by SoftBank Vision Fundand other SBIA-managed funds

Payments for acquisition of investments by SVF1 and SVF2

Proceeds from sales of investments by
SoftBank Vision Fund and other
SBIA-managed funds

Proceeds from sales of investments by SVF1

Contributions into SoftBank Vision
Fund and other SBIA-managed funds
from third-party investors

Contributions into SVF1 from third-party investors

Distribution/repayment from SoftBank
Vision Fund and other SBIA-managed
funds to third-party investors

Distribution/repayment from SVF1 to third-party investors

Segment information
Previous

Current

SoftBank Vision Fund and Other
SBIA-Managed Funds segment

SVF1 and Other SBIA-Managed Funds segment

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(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 over the entity. Please refer to “a. Consolidation of SVF1 and SVF2 by the Company”
under “(20) Significant accounting policies for the SVF1 and Other SBIA-Managed Funds
segment” for details of SVF1 and SVF2.
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
their accounting 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
and to 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 toreflect the changes in their interests in the subsidiaries.
Any difference between the amount by which the non-controlling interests are adjusted andthe fair value of the consideration paid or received is recognized directly in equity and attributed
to owners of the parent.
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
retained interest; and• the net carrying amount of the assets (including goodwill), liabilities, and non-controllinginterests of the subsidiary when control is lost.

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130Any amounts previously recognized in accumulated other comprehensive income in relation to
the former 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 thefinancial and operating 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
decisions of 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
initially recognized at cost. The investment is adjusted thereafter to recognize the Company’s
interest in profit or loss and other comprehensive income from the date of acquisition to thedate of loss of significant influence.
When the losses of an associate and a joint venture exceed the Company’s interest in theassociate and the joint venture, long-term interests that, in substance, form a part of the net
investment in the company 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 ofacquisition 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, is tested for impairment as a single asset whenever objective evidence indicates thatthe investment may be impaired.
The Company applies the equity method to the financial statements of Alibaba, an associateof the Company, on a three-month time lag, as it is impractical to conform the reporting periodof 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.
SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO(b) Investments accounted for using FVTPL
Among the investments in associates, investments directly made by SVF1 and SVF2, investments
made by SoftBank Group Corp. or its subsidiaries based on the premise of transferring to SVF1
and SVF2, and preferred stock investments whose feature is substantively 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 SVF1 and SVF2
– (b) Investments in associates and joint ventures” under “(20) Significant accounting policies for
the SVF1 and Other SBIA-Managed Funds segment” for details of SVF1 and SVF2.
(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
transferred by the Company, liabilities assumed by the Company from the former owners of theacquiree, and the fair value at the acquisition date of the equity interests issued by the Company.
Acquisition-related costs are recognized in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized attheir fair value, except that:• deferred tax assets or liabilities and assets or liabilities related to employee benefits are recognized
and measured 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
the acquisition 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 theacquiree over the fair value of the identifiable net assets acquired at the acquisition date is recorded as
goodwill. If the consideration transferred and the amount of any non-controlling interest in the acquireeis less than the fair value of the identifiable net assets of the acquired subsidiary, the difference isrecognized immediately in profit or loss.
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 therecognized amounts of the acquiree’s identifiable net assets. When a business combination is achievedin stages, the Company’s previously held interest in the acquiree is remeasured at fair value at theacquisition date and the resulting gain or loss, if any, is recognized in profit or loss.

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131

Amounts arising from changes in the value of interests in the acquiree prior to the acquisition datethat have previously been recognized in other comprehensive income are recognized using the sameaccounting 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
the accounting is incomplete. The Company retrospectively adjusts the provisional amounts recognizedat the acquisition date as an adjustment during the measurement period when new information about
facts and circumstances that existed as of the acquisition date and, if known, would have affected therecognized amounts for the business combination. The measurement period shall not exceed one year
from the acquisition date.
Goodwill arising in business combinations that occurred before the date of transition to IFRSs iscarried over 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 thatamount after an impairment test.
(3) Foreign currency translationa. Transactions denominated in foreign currencies
The financial statements of each group company are prepared in their currency based on the
primary economic environment in which it operates (“functional currency”). Transactions incurrencies other than the entity’s functional currency (foreign currencies) are translated at therates 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 thatare 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 othercomprehensive 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 fair value) 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 averageexchange 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 thetransaction dates are used for the translation.

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The exchange rates used in the translation are described in “Note 35. 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
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 initialrecognition. Transaction costs that are directly attributable to the acquisition of financial assets
and issuance of financial liabilities other than financial assets at FVTPL and financial liabilities atfair value through profit or loss (“financial liabilities at FVTPL”) are added to the fair value of thefinancial assets or deducted from the fair value of financial liabilities at the time of initialrecognition. Transaction costs that are directly attributable to the acquisition or issuance of thefinancial 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,” “debtfinancial 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 thenature and purpose of the financial assets and is determined upon initial recognition.
All purchases and sales of financial assets made in the ordinary course of business arerecognized and derecognized on a trade date basis. Purchases and sales made in the ordinary
course of business refer to acquiring or disposing financial assets under a contract that requires
the delivery of assets within a timeframe established by regulation or convention in themarketplace.
(a) Financial assets measured at amortized cost
Financial assets are classified as “financial assets measured at amortized cost” if both of thefollowing conditions are met:
• the financial assets are held within a business model for which the objective is to holdfinancial assets to collect contractual cash flows; and• the contractual terms of the financial assets give rise on specified dates to cash flows that

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are solely payments of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, financial assets at amortized cost are measured at amortizedcost using the effective interest method, less any impairment. Interest income based on theeffective 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 byboth collecting contractual cash flows and selling financial assets; and• the contractual terms of the financial assets give rise on specified dates to cash flows thatare solely 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 orloss upon derecognition. 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 assetsthat would otherwise be measured at fair value through profit or loss to present subsequentchanges in fair value in other comprehensive income and classifies such investments as “equity
financial assets at FVTOCI.” Subsequent to initial recognition, equity financial assets at FVTOCI aremeasured at fair value, and gains or losses arising from changes in fair value are recognized inother comprehensive income.
When financial assets are derecognized or there is a significant or prolonged decline in fairvalue below the cost, cumulative gains and losses recognized in other comprehensive income are
directly transferred to retained earnings. Dividends received on equity financial assets at FVTOCI
are recognized in profit or loss.
(d) Financial assets at FVTPL
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 “(20) Significant accounting policies for the SVF1 and Other
SBIA-Managed Funds segment” for the details of “Investments from SVF1 and SVF2 accounted
for using FVTPL” in the consolidated statement of financial position. Neither financial assets aredesignated as measured at fair value through profit or loss to eliminate or significantly reduce anaccounting mismatch.
Subsequent to initial recognition, financial assets at FVTPL are measured at fair value and gains
or losses arising from changes in fair value, dividend income and interest income are recognized

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

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
not increased significantly since initial recognition, the Company measures the loss allowance forfinancial 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 expected credit losses. However, the Company always measures the loss allowanceat an amount equal to the lifetime 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
the reporting 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.
Reversal of the loss allowance is also recognized in profit or loss when events that would reduce
the loss allowance occur 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 the risks and rewards of ownership of the financial asset.
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 as a financial liability
at FVTPL. Subsequent to initial recognition, liabilities at FVTPL are measured at fair value 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

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method, subsequent to initial recognition.
The Company derecognizes financial liabilities when the Company’s obligations are met, or
debt is discharged 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. In addition, SB Northstar is engaged in various transactions suchas acquisition and sale of listed stocks, derivative transactions related to listed stocks, credit
transactions, and others for diversification of the assets held and management of surplus funds.
Derivatives are initially recognized at fair value at the date the derivative contracts are enteredinto and are subsequently measured at their fair values at the end of fiscal year. Changes in thefair value of derivatives are recognized in profit or loss immediately unless the derivative isdesignated and effective as a hedging instrument. Derivative financial assets not designated as
hedging instruments are classified 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 forthem as 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
ongoing basis, the Company evaluates whether the hedging instrument is highly effective inoffsetting changes in fair values or cash flows of the relevant hedged item during the underlying
period. Specifically, a hedge is determined to be effective when all of the following criteria aremet:
i. there is an economic relationship between the hedged item and the hedging instrument;
ii. t he effect of credit risk does not dominate the value changes that result from that
economic relationship; andiii. the hedge ratio of the hedging relationship is the same as that resulting from the quantityof the hedged item the Company actually hedges and the quantity of the hedging
instrument the Company actually uses to hedge the quantity of the hedged item.
If a hedging relationship ceases to meet the hedge effectiveness requirement relating to thehedge ratio but the risk management objective remains the same, the Company adjusts thehedge ratio so that the hedging relationship becomes effective again.
The effective portion of changes in the fair value of derivatives that are designated andqualifying as cash flow hedges is recognized in other comprehensive income and accumulated in

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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 year when the
cash flows from the hedged item affect profit or loss. Any ineffective portion of changes in fairvalue of derivatives is recognized 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 themeasurement of initial cost of the non-financial assets or non-financial liabilities (basis
adjustment).
The Company discontinues hedge accounting prospectively only when the hedging relationship ceases to meet the qualifying criteria, such as instances when the hedging instrument
expires or is sold, 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”)
are not 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 theeconomic characteristics and risks of the host contracts and the whole financial instruments,
including the embedded derivatives, are not classified as financial liabilities at FVTPL, theembedded derivatives are separated from the host contracts and accounted for separately as
derivatives. If it is required to separate embedded derivatives from their host contracts, but theCompany is unable to measure the embedded derivatives separately either at acquisition or at
the end of a subsequent fiscal period, the Company 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 alegally 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.

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(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
devices and accessories in the SoftBank segment. Their costs comprise all costs of purchase and othercosts incurred in bringing the inventories to their present location and condition. The costs are mainly
calculated by the moving-average method.
Net realizable value is the estimated selling price in the ordinary course of business, less estimatedcosts necessary to make the sale.
(7) Property, plant and equipment
Property, plant and equipment are measured on a historical cost basis, less accumulated depreciation
and accumulated impairment losses. Historical cost includes costs directly attributable to the acquisitionof the asset 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 theestimated useful 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10–50 years
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3–22 years
Telecommunications equipment
Wireless equipment, switching equipment and other network equipment . . . . . . 5–15 years
Towers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10–42 years
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5–30 years
Furniture, fixtures and equipment
Leased mobile devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2–3 years
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2–25 years
Machinery and equipment
Power plant and related equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 years
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3–5 years
The depreciation methods, useful lives, and residual values of assets are reviewed at the end of eachfiscal year, and any changes are applied prospectively as a change in accounting estimate.

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Message from Our CEO(8) Goodwill
Please refer to “(2) Business combinations” for the measurement of goodwill at initial recognition.
Goodwill is measured 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, andannually, regardless of any indication of impairment. Impairment is described in “(11) Impairment ofproperty, plant and equipment, right-of-use assets, 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
The Company uses the cost model for measurement of intangible assets in which the assets aremeasured at historical cost, less accumulated amortization and accumulated impairment losses.
Intangible assets acquired individually are measured at cost upon initial recognition. Intangible assets
acquired in a business combination are recognized separately from goodwill upon initial recognition andare measured 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 ondevelopment activities eligible for capitalization (internally generated intangible assets). The amountinitially recognized for internally generated intangible assets is the sum of the expenditures incurredfrom the date when the intangible asset first meets all of the capitalization criteria to the date thedevelopment 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 by the straight-line
method.
The estimated useful lives of major categories of intangible assets with finite useful lives are as
follows:
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8–25 years
Software. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5–10 years
Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8–20 years
Spectrum migration costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    18 years
Management contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4–10 years
Trademarks (with finite useful lives) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8–10 years
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2–20 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.
Spectrum migration costs are the amounts that the Company incurred in connection with the costs
arising from the migration of existing users to the other frequency spectrum based on the termination

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campaign. Useful lives are estimated based on the actual utilization of the frequency spectrum in thepast.
Intangible assets with indefinite useful lives are as follows:• Trademarks (with indefinite useful lives)
The intangible assets with indefinite useful lives and the intangible assets that are not yet available foruse are not amortized. The impairment of these assets is described in “(11) Impairment of property,
plant and equipment, right-of-use assets, intangible assets and goodwill.”
In addition, the Company does not apply IFRS 16 “Leases” to leases of intangible assets.
(10) Leases
a. Overall(a) Identifying a lease
At inception of a contract, the Company assesses whether the contract is, or contains, a lease.
The Company deems a contract is, or contains, a lease if the contract conveys the right tocontrol the use of an identified asset for a period of time in exchange for consideration. If thefollowing conditions are met, the Company deems that the contract conveys the right to control
the use of an identified asset.
i. The use of the identified asset is specified in a contract and the lessor does not have theright to substitute the asset.
ii. T hroughout the period of use, the lessee has the right to obtain substantially all of theeconomic benefits from use of the identified asset.
iii. The lessee has the right to direct the use of the identified asset. Where the relevant
decisions about how and for what purpose the asset is used are predetermined, the lessee
is deemed to have the right to direct the use of the identified asset if:• t he lessee has the right to operate the asset; or• t he lessee designed the asset in a way that predetermines how and for what purposethe asset will be used.
(b) Lease term
The lease term is determined as the non-cancellable period of a lease, together with both:•p eriods covered by an option to extend the lease if the lessee is reasonably certain to
exercise that option; and• periods covered by an option to terminate the lease if the lessee is reasonably certain not toexercise that option.
b. Lessee(a) Separating components of a contract
For a contract that is, or contains, a lease, the Company accounts for each lease component within
the contract as a lease separately from non-lease components of the contract by allocating the

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consideration in the contract to each lease component on the basis of the relative stand-alone
price of the lease component and the aggregate stand-alone price of the non-lease components.
(b) Lease transactions of intangible assets
The Company does not apply IFRS 16 “Leases” to leases of intangible assets.
(c) Right-of-use asset
At the commencement date, the Company recognizes a right-of-use asset and a lease liability.
The right-of-use asset is initially measured at cost. The cost of the right-of-use asset comprises:
the amount of the initial measurement of the lease liability; any lease payments made at or
before the commencement date; any initial direct costs; and an estimate of costs to be incurredin dismantling and removing the underlying asset, restoring the site on which it is located or
restoring the underlying asset; less any lease incentives received.
After the initial measurement, the right-of-use asset is depreciated on a straight-line basis: (a)over the estimated useful life if the transfer of ownership of the underlying asset is certain; or (b)over the shorter of the lease term or the estimated useful life of the leased asset if the transferof ownership is not certain. The estimated useful life of the right-of-use asset is determined by
the same method applied to property, plant and equipment. Further, if the right-of-use asset isimpaired, an impairment loss is deducted from the carrying amount of the right-of-use asset.
The details of lease terms by asset classes for right-of-use assets held for leases are described in“Note 18. Right-of-use assets.”(d) Lease liability
At the commencement date, the Company measures the lease liability at the present value ofthe lease payments that will be paid over the lease term after that date. In calculating thepresent value, the interest rate implicit in the lease is used as a discount rate if that rate can bereadily determined. If that rate cannot be readily determined, the Company’s incremental
borrowing rate is used.
The lease payments included in the measurement of the lease liability mainly comprise: fixed
payments; lease payments to be made during extension periods, if the lease term reflects theexercise of an option to extend the lease; and payments of penalties for terminating the lease, if
the lease term reflects the exercise of an option to terminate the lease.
After the initial measurement, the lease liability is measured at amortized cost using aneffective interest method. The lease liability is remeasured if there is a change in future lease
payments resulting from a change in an index or a rate, if there is a change in the amounts
expected to be payable under a residual value guarantee, or if there is a change in the assessment of the possibility of an option to extend or terminate the lease being exercised.
If the lease liability is remeasured, the carrying amount of the right-of-use asset is also adjusted
by the amount of the remeasurement of the lease liability. However, if the amount of liability
reduced by the remeasurement of the lease liability exceeds the carrying amount of theright-of-use asset, any remaining amount of the remeasurement after reducing the right-of-use

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asset to zero is recognized in profit or loss.
c. Lessor(a) Separating components of a contract
For a contract that is, or contains, a lease, the Company allocates the consideration in thecontract applying IFRS 15 “Revenue from Contracts with Customers” to lease components andnon-lease components of the contract.
(b) Classification of leases
At the commencement of a lease contract, the Company classifies whether the contract is afinance lease or an operating lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Otherwise, a leaseis classified as an operating lease. The Company assesses that substantially all the risks andrewards incidental to ownership of an underlying asset are transferred in cases where the leaseterm is for the major part of the economic life of the underlying asset, or the amount of present
value of the lease payment is substantially all the amount of fair value of the asset.
(c) Sublease classification
If the Company is a party to a sublease contract, the Company accounts for the head lease(lessee) and the sublease (lessor) separately. When classifying the sublease as a finance lease oran operating lease, the Company considers the risks and rewards incidental to, and the usefullife of, the right-of-use asset that is recognized by the Company in the head lease, instead ofthat of the leased asset.
(d) Recognition and measurement
Lease receivables in finance leases are recorded as the uncollected amount of net leasereceivables, as of the date the lease is determined and through its maturity. Lease receivables areapportioned between financing income and the repayments of the lease receivables. Lease
receivables are measured at amortized cost using the effective interest method. Interest income
based on the effective interest rate is recognized in profit or loss.
Total lease payments received from operating leases received during the lease term arerecognized as income on a straight-line basis over the lease term.

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Message from Our CEO(11) Impairment of property, plant and equipment, right-of-use assets, intangible assets andgoodwilla. Impairment of property, plant and equipment, right-of-use assets, and intangible assets
At the end of the fiscal year, the Company determines whether there is any indication thatproperty, plant and equipment, right-of-use assets, 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 foruse 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 related to assets other than goodwill recognized in prior years has decreased or
been extinguished. If such indication of a reversal of 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 (less depreciation and amortization)that would have been recognized, had no impairment loss been recognized.
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
that are expected to benefit from the synergies arising from the business combination, and it istested for impairment annually, regardless of any indication of impairment, and when there is anindication that the cash-generating unit or groups of cash-generating units may be impaired. If,
at the time of the impairment test, the recoverable amount of the cash-generating unit orgroups of cash-generating units is less than its carrying amount, the impairment loss is allocatedfirst to reduce the carrying amount of any goodwill allocated to the cash-generating unit or

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groups of cash-generating units and then to the other assets pro rata based on the carrying
amount of each asset in the unit or groups of cash-generating units.
Any impairment loss for goodwill is recognized directly in profit or loss and is not reversed insubsequent periods.
(12) Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a resultof a past 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 therisks and uncertainties surrounding the obligation at the end of the fiscal year.
The Company recognizes mainly asset retirement obligations and provisions for contract loss and loss
on interest repayment as provisions.

(15) Share-based payments
The Company grants stock options and restricted stock awards as equity-settled share-based compensation and phantom stock 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 ofrestricted 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 theestimated stock options or restricted stock units that will eventually vest, with a corresponding increasein 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 thefair value of the award. The fair value of the liabilities is remeasured on each closing date and thesettlement date, and changes in fair values are recognized in profit or loss.

(14) Assets or disposal groups classified as held for sale
Assets or disposal groups, whose recoveries are expected principally through sale transactions rather
than continuing use, are classified as held for sale when it is highly probable that the sale will becompleted 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
and liabilities of the subsidiary as held for sale when the above criteria are met, regardless of whether
the Company 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
less costs to sell and depreciation of property, plant and equipment and amortization of intangible
assets are not conducted after the classification.

(16) Revenue
The Company’s accounting policy for revenue recognition is as follows:
SoftBank segment
The SoftBank segment provides mobile communications services, sales of mobile devices, andfixed-line telecommunication services such as broadband services in Japan, mainly through SoftBank
Corp., and internet advertising and e-commerce business through Z Holdings Corporation.
a. Mobile communications services and sales of mobile devices
The Company provides mobile communications services, which consist of voice call services, datatransmission services, and related optional services to subscribers, and sells mobile devices tocustomers.
In providing mobile communications services, sales revenue is mainly generated from basic
monthly charges, mobile communications services, and other fees. Revenues from the sales ofmobile devices are generated from the sales of mobile devices and accessories to subscribers or
dealers.
The business flow of the above transactions consists of “Indirect” sales, where the Company
sells mobile devices to dealers and enters into mobile communications service contracts with
subscribers through dealers, and “Direct” sales, where the Group sells mobile devices tosubscribers and enters into mobile communications service contracts directly with subscribers.
In mobile communications services, the contractual period is defined as the period during
which the parties to the contract have present enforceable rights and obligations based on theterms and conditions of the contract with the subscriber. In addition, if the Company determinesthat an option to renew the contract is granted to the subscriber and the option provides a“material right” to the subscriber, it identifies the option as a separate performance obligation.

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Who We Are(13) 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 is recognized 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.

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As a practical alternative to estimating the stand-alone selling price of an option identified as aseparate performance obligation, the Company allocates the transaction price to the telecommunications services pertaining to the option, referring to the telecommunications services thatare expected to be provided and the corresponding amount of consideration expected to bereceived from the subscriber.
Basic charges and mobile communications service fees are billed to subscribers on a monthly
basis and are generally due within one month. Mobile device payments for indirect sales arebilled to dealers at the time of sale to the respective dealers and are generally due within one
month. In addition, mobile device payments for direct sales can be paid in full at the time ofsale or paid in monthly installment over the contract period, normally due within one month.
As a result of both quantitative and qualitative analysis, the Company has determined thatthese transaction prices do not include significant financing components due to the timing of
payments, and accordingly, they have not been adjusted for such financing components.
When the period between the revenue recognition and the payment is one year or less, theCompany does not make an adjustment for significant financing components, as a practical
expedient.
For mobile communications services and sales of mobile devices, the Company is obligated toallow returns and provide refunds for a certain period of time after the inception of the contract.
Return and refund obligations are estimated and deducted from transaction prices for each typeof goods and services based on historical experience.
The Company provides optional additional warranty services for mobile devices. Under thecontracts in which these services are provided, the services are identified as separate performance obligations, and are recognized as revenue when they are provided to subscribers.
(a) Indirect sales
Revenues from the sales of mobile devices are recognized when mobile devices are delivered todealers, which is when dealers are deemed to have obtained control over the mobile devices.
Dealers involved in indirect sales have the primary responsibility for fulfilling contracts, carry all
inventory risk, and may independently establish their own inventory pricing. Accordingly, theCompany considers that dealers involved in indirect sales act as principals.
Basic monthly charges and mobile communications service fees are recognized as revenue overtime during the contractual period because the performance obligation of mobile communications services is to provide a certain amount of data communications monthly to subscribers
during the contractual period. Discounts on mobile communications charges are deducted fromthe revenues recognized from monthly mobile communications services. Commission fees paid
to dealers related to the sales of mobile devices are deducted from sales.
(b) Direct sales
For direct sales, the total amount of transactions is allocated to sales of mobile devices and

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mobile communications service revenue based on the ratio of their stand-alone selling prices, as
the revenues from the sales of mobile devices and mobile communications services, including
related fees, are considered to be one transaction. Discounts on mobile communications charges
related to mobile communications service revenue are deducted from the total transaction price.
In addition, if the amount of revenue recognized at the time of sales of mobile devices
exceeds the amount of consideration received from the subscribers, the difference is recognized as contract assets and subsequently transferred to trade receivables when the claim isdetermined as a result of the provision of mobile communications services. If the amount ofrevenue recognized at the time of sale of mobile devices is less than the amount of consideration received from the subscribers, the difference is recognized as contract liabilities, which isthen reversed when the mobile communications services are provided, and is recognized asrevenue.
Stand-alone selling prices of mobile devices and mobile communications services are priced attheir observable prices when the mobile devices and mobile communications services are soldindependently to customers at the inception of the contract.
The amount allocated to sale of mobile device is recognized as revenue at the time of delivery
to the subscribers, representing the point in time when subscribers are considered to haveobtained control of the mobile devices. Amounts allocated to mobile communications service
revenues are recognized as revenue over time during the contractual period because theperformance obligation of mobile communications services is to provide a certain amount ofdata communications monthly to subscribers during the contractual period.
Contract assets are included in “Other current assets” in the consolidated statement offinancial position.
b. Broadband services
For broadband services, revenues are mainly generated from basic monthly charges andtelecommunications services fees primarily related to Internet connection (“revenues frombroadband services”), and other fees.
Revenues from broadband services are recognized when services are provided to subscribers,
based upon fixed monthly charges plus the fees charged for usage of the network. Activation
fees are recognized as contract liabilities when received, which are then reversed when the
broadband services are provided, and are recognized as revenue.
c. Electricity
For electricity services, revenues are generated from purchase and sale, supply and intermediation of electricity services, including Ouchidenki. Revenues from supply of electricity (retailservice) are recognized when the services are provided to subscribers, based on fixed monthly
charges plus the fees charged for usage of electricity.

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d. Fixed-line communications service
Revenues from fixed-line communications services mainly consist of voice telecommunications
service fees and data transmission service fees. Revenues from fixed-line communications
services are recognized when services are provided to subscribers, based on fixed monthly
charges and the fees charged for usage of the network.
e. Distribution services
Revenues in the distribution services are mainly generated from the sales of hardware,
software, and services in relation to Information and Communication Technology (“ICT”),
cloud and Internet of Things (“IoT”) solutions for enterprise customers. Revenues are also
driven by the sales of PC software, IoT products, and mobile device accessories for individual
customers.
Revenues in the distribution services are recognized as revenue at the time of delivery tocustomers, representing the point in time when the customers are deemed to have obtained
control over the goods and other items.
For transactions conducted by the Company on behalf of third parties, revenues are presented
on a net basis by excluding payment to third parties from the total consideration received from
customers.
f. E-commerce business
Revenues in the E-commerce services consist of revenues from the sale of goods by the ASKULGroup, e-commerce-related services such as ZOZOTOWN and YAHUOKU!, and membershipservices such as Yahoo! Premium.
Revenues from the sale of goods by the ASKUL Group are recognized when a customer
obtains control of the goods, that is, at the time the customer has the ability to direct theuse of the goods and to obtain substantially all of the remaining economic benefits from thegoods.
ZOZO Inc. operates ZOZOTOWN and sells goods on a consignment basis to individual users as
an agent of each brand opening a store as a tenant in ZOZOTOWN. Consignment salescommission based on gross merchandise value multiplied by sales commission rate is recognized
as revenue when the customer obtains control of the goods.
Yahoo provides online auction services through YAHUOKU! to individual users and corporations. System usage fees charged to the sellers according to auction proceeds are recognized asrevenue when the auction transactions are completed.
Yahoo sells the Yahoo! Premium service to individual users, which provides the user with avariety of membership privileges. Its revenues are recognized over the period during which themembership is valid.

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g. Internet advertising
Revenues in the Internet advertising consist of revenues from paid search advertising, display
advertising and other advertising.
Revenues from paid search advertising are recognized based on the per-click rate set by acustomer when a visitor of the website clicks the advertisement.
Display advertising comprises display advertising (reservation) and display advertising(programmatic).
Revenues from display advertising (reservation) are recognized over the period in which therelated advertisement is displayed.
Revenues from display advertising (programmatic) are recognized based on the per-click rate
set by a customer when a visitor of the website clicks the advertisement on the page with therelated content.
h. LINE advertising services
Revenues in LINE advertising services consist of revenues from display advertising, accountadvertising and other advertising.
Revenues from display advertising are recognized at a point in time at which impression, view,click and other actions specified in the terms of the contract are satisfied.
Account advertising mainly comprises LINE Official Accounts and LINE Sponsored Stickers.
Revenues from LINE Official Accounts are recognized over the period in which the account isavailable for the registered user.
Revenues from LINE Sponsored Stickers are recognized over the period in which the sticker isavailable at any time the user wants.
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 the right to use intellectual property is recognized when thecustomer 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 Armtechnology and are recognized at the time of licensee chip sales.

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(17) 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 thecosts 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 (two to three
years) during which goods or services 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, 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.
(18) Income tax
Income tax expense is composed of current and deferred taxes, and recognized in profit or loss, except
for taxes 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 endof 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 andliabilities 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 theforeseeable future and when there will be sufficient taxable profits against which the temporary
differences can be utilized.

Company is able to control the reversal of the temporary difference and it is probable that thetemporary 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.
(19) 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 theperiod.
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 of ordinary shares (after adjusting for treasury stocks) outstanding for theperiod.

Deferred tax liabilities are basically recognized for taxable temporary differences, except for:• temporary differences arising from the initial recognition of assets and liabilities, and relatedtransactions 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 the

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(20) Significant accounting policies for the SVF1 and Other SBIA-Managed Funds segment
For SVF1 and SVF2, the Company applies the same accounting policies as follows.
a. Consolidation of SVF1 and SVF2 by the Company
SVF1 and SVF2 are limited partnerships established by its general partner which is a wholly-owned subsidiary of the Company, and by its form of organization, qualifies as a structured
entity. SVF1 and SVF2 are consolidated by the Company for the following reasons.
The various entities comprising SVF1 and SVF2 make investment decisions through its
investment committee, which was established as a committee of SBIA. SBIA is an advisory
company and is a wholly-owned subsidiary of the Company. As such, the Company has poweras defined under IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2.
Furthermore, SBIA receives performance fees and the Company receives distributions attributable to limited partners based on the investment performance as returns from SVF1 and SVF2.
The Company has the ability to affect those returns through its power over SVF1 and SVF2, andtherefore, the Company is deemed to have control as stipulated in IFRS 10 over SVF1 and SVF2.
Inter-company transactions such as management fees and performance fees to SBIA paid or tobe paid from SVF1 and SVF2 are eliminated in consolidation.
b. Portfolio company investments made by SVF1 and SVF2(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1, the portfolio companies that the Company
is deemed to control under IFRS 10 “Consolidated Financial Statements” are subsidiaries of theCompany. Accordingly, their results of 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 SVF1
are eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1 and SVF2, 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
SVF1 and SVF2 when, as defined under IFRS 11 “Joint Arrangements,” SVF1 and SVF2 have joint
control with other investors under contractual arrangements and the investors have rights to the
net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1 and SVF2 are
accounted for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, andpresented as “Investments from SVF1 and SVF2 accounted for using FVTPL” in the consolidated
statement of financial position. The payments for these investments are presented as “Payments
for acquisition of investments by SVF1 and SVF2” and the proceeds from sales of theseinvestments are presented as “Proceeds from sales of investments by SVF1” under cash flows

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from investing activities in the consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by SVF1 andSVF2 are accounted for as financial assets at FVTPL. The presentation of these investments 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. Contribution from limited partners to SVF1 and SVF2
SVF1 and SVF2 issue capital calls to its limited partners (“Capital Call”).
No contributions from limited partners other than the Company were made into SVF2 frominception to March 31, 2021.
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”)
are classified as financial liabilities, “Third-party interests in SVF1” in the consolidated statementof financial position, due to the predetermined finite life and contractual payment provision toeach of the limited partners at the end of the finite life within the limited partnership agreement.
The liabilities are classified as “financial liabilities measured at amortized cost” upon initialrecognition. The carrying amounts attributable to Third-Party Investors represent the amounts
that would be distributed in accordance with the limited partnership agreement in a theoreticalliquidation scenario at the end of each quarter.
“Third-party interests in SVF1” fluctuates due to the results of SVF1 in addition to contributions from Third-Party Investors in satisfaction of Capital Call, and distributions and repayments
of investments to Third-Party Investors. The fluctuations due to the results of SVF1 are presented
as “Change in third-party interests in SVF1” in the consolidated statement of income.
Contributions from Third-Party Investors to SVF1 are included in “Contributions into SVF1 fromthird-party investors” under cash flows from financing activities in the consolidated statement ofcash flows. The distributions and repayments of investments to Third-Party Investors are included
in “Distribution/repayment from SVF1 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 offinancial position.
(b) Contribution from the Company
Contributions to SVF1 and SVF2 from the Company as limited partners are eliminated inconsolidation.

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(21) Significant accounting policies for the asset management subsidiary
SB Northstar, a subsidiary of the Company, is engaged in various transactions such as acquisition andsale of listed stocks, derivative transactions related to listed stocks, credit transactions, and others fordiversification of the assets held and management of surplus funds. “The asset management subsidiary” described in the consolidated financial statements and the notes indicates SB Northstar.
For SB Northstar, the Company applies the following accounting policies.
a. Investments from the asset management subsidiary
The investments in securities made by SB Northstar (except for investments in associates) areaccounted for as financial assets at FVTPL as the investments meet the definition of financial
assets held for sale in accordance with IFRS 9 “Financial Instruments.” and presented as“Investments from assets management subsidiaries” under current assets in the consolidated
statement of financial position. At initial recognition, the investments are measured at fair value
and transaction costs directly arising from the acquisition of financial assets are recognized as
net of profit and loss. Subsequent to initial recognition, they are measured at fair value andvaluation gains and losses arising from changes in fair value and dividend income are included in“Gain (loss) on investments at Investment Business of Holding Companies” in the consolidated
statement of income. In addition, the changes in investment amounts due to acquisition andsale of investments from SB Northstar are presented as net of “(Increase) decrease in investmentsfrom asset management subsidiaries (cash flows from operating activities)” in the consolidated
statement of cash flows. The investments in associates of the Company made by SB Northstar
are accounted for using the equity method and included in “Investments accounted for using
the equity method” in the consolidated statement of financial position.
The investments in convertible bonds made by SB Northstar are accounted for as financial
assets at FVTPL and are included in “Other financial assets (non-current)” in the consolidated
statement of financial position. Valuation gains and losses arising from changes in fair value anddividend income are included in “Gain (loss) on investments at Investment Business of Holding
Companies” in the consolidated statement of income. In addition, payments for acquisition of
convertible bonds made by SB Northstar are presented as “Payments for acquisition of
investments by asset management subsidiaries (cash flows from investing activities)” in the
consolidated statement of cash flows.

collateral in SB Northstar are presented as net of “(Increase) decrease in securities pledged ascollateral in asset management subsidiaries (cash flows from operating activities)” in the
consolidated statement of cash flows.
c. Restricted cash
Restricted cash in SB Northstar is the deposit pledged as collateral to the brokers for acquisitiontransactions of investments using borrowings, derivative transactions, and credit transactions
and its usage is restricted. The restricted cash is included in “Other financial assets (current)” in
the consolidated financial position and changes in restricted cash in SB Northstar are presented
as net of “(Increase) decrease in restricted cash in asset management subsidiaries (cash flows
from operating activities)” in the consolidated statement of cash flows.
d. Margin deposits
Margin deposits in SB Northstar are the deposits pledged as collateral for unsettled balance foracquisition and sale of investments and unsettled derivatives to the brokers and are included in“Other financial assets (current)” in the consolidated statement of financial position. At initialrecognition, they are measured at fair value and subsequent to initial recognition, they aremeasured at amortized cost. In addition, changes in margin deposits in SB Northstar are included
under cash flows from operating activities in the consolidated statement of cash flows.
e. Borrowed securities
The securities borrowed for short credit transactions have obligations for delivery of futurefinancial assets and meet the definition of financial liabilities held for sale in accordance withIFRS 9 “Financial Instruments.” Therefore, they are accounted for as financial instruments at
FVTPL and included in “Other financial liabilities (current)” in the consolidated statement offinancial position. At initial recognition and subsequent to initial recognition, they are measured
at fair value and valuation gains and losses arising from changes in fair value are included in“Gain on investments at Investment Business of Holding Companies” in the consolidated
statement of income. In addition, changes in borrowed securities in SB Northstar are included
under cash flows from operating activities in the consolidated statement of cash flows.

b. Securities pledged as collateral in the asset management subsidiary
Of securities pledged as collateral, securities which the recipient can sell or pledge them as
re-collateral are separated from “Investments from asset management subsidiaries” andpresented as “Securities pledged as collateral in asset management subsidiaries” in the
consolidated statement of financial position. In addition, changes in the securities pledged as

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1434. Changes in accounting policies
The Company has adopted the standards and interpretations for which mandatory adoption is required
from the fiscal year ended March 31, 2021. There are no significant impacts on the consolidated
financial statements due the adoption.

5. Significant judgments and estimates
In preparing consolidated financial statements under IFRSs, management makes judgments, estimates,
and assumptions 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 asof the period-end, based on historical experience and by collecting available information. By the natureof its estimates or assumptions, 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
are recognized 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 scopeof consolidation ((1) and (20) in “Note 3. Significant accounting policies” and “Note 21. Major
subsidiaries”);• significant judgments for the determination of the scope and accounting treatment of associates((1) and (20) in “Note 3. Significant accounting policies” and “Note 22. Investments accounted
for using the equity method”);• estimates for impairment of investments accounted for using the equity method ((1) in “Note 3.
Significant accounting policies” and “Note 45. Other loss”);• estimates of fair value of assets acquired and the liabilities assumed in a business combination ((2)
in “Note 3. Significant accounting policies” and “Note 10. Business combinations”);• fair value measurement of financial assets at FVTPL, debt financial assets at FVTOCI, and equity
financial assets at FVTOCI ((4) and (20) in “Note 3. Significant accounting policies,” “Note 9. SVF1
and other SBIA-managed funds business,” (2) in “Note 32. Fair value of financial instruments,”
and “Note 41. Gain on investments”);• estimates for impairment of financial assets measured at amortize cost ((4) in “Note 3. Significant
accounting policies,” and “Note 45. Other loss”);• fair value measurement of derivatives (including embedded derivatives) ((4) in “Note 3. Significant
accounting policies” and (2) in “Note 32. Fair value of financial instruments”);• estimates for residual value and useful life of property, plant and equipment, right-of-use assets,
and intangible assets ((7), (9), and (10) in “Note 3. Significant accounting policies”);

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Message from Our CEO• estimates for impairment of property, plant and equipment, right-of-use assets, intangible assets
and goodwill ((11) in “Note 3. Significant accounting policies,” “Note 6. Discontinued operations,”“Note 19. Goodwill and intangible assets” and “Note 45. Other loss”);• judgments and estimates for accounting treatment of contracts including leases ((10) in “Note 3.
Significant accounting policies,” “Note 18. Right-of-use assets,” and “Note 20. Leases”);• judgments and estimates for recognition and measurement on provisions ((12) in “Note 3.
Significant accounting policies” and “Note 30. Provisions”);• judgments and estimates for salability relating to classification as held for sale ((14) in “Note 3.
Significant accounting policies,” “Note 6. Discontinued operations,” and “Note 16. Disposalgroup classified as held for sale”);• judgments for timing of revenue recognition related to indirect sales of mobile devices ((16) in“Note 3. Significant accounting policies” and “Note 39. Net sales”);• judgments for “contractual period” in the mobile communications services and whether or not if“material right” is included in the contracts ((16) in “Note 3. Significant accounting policies” and“Note 39. Net sales”);• estimates for amortization period of costs to obtain contracts ((17) in “Note 3. Significant
accounting policies”);• assessment of recoverability of deferred tax assets ((18) in “Note 3. Significant accounting
policies” and (1), (2), and (4) in “Note 24. Income taxes”);• estimates for measurement of contribution from Third-party interests to SVF1 ((20) in “Note 3.
Significant accounting policies” and (2) in “Note 9. SVF1 and Other SBIA-Managed Funds
business”);• recognition of liabilities and expenses related to contingencies (“Note 50. Contingency”); and• Impact of the novel coronavirus (“COVID-19”).
For the fiscal year ended March 31, 2021, the global economic situation was greatly affectedby the spread of the novel coronavirus (“COVID-19”) and the pandemic that followed, which
continues to this day. Governments around the world are implementing fiscal stimulus andmonetary easing measures to counter the economic impacts of the pandemic, and expectations
that vaccination programs progress in some countries will encourage greater economic activity
that have led to a sharp overall market recovery in the second half of the fiscal year ended March
31, 2021, with new capital continuing to flow in. These factors resulted in the strong performance of the Company’s investments, particularly at SVF1 and SVF2, leading to a consolidated
gain on investments of ¥7,529,006 million ($68,006,558 thousand) for the fiscal year ended
March 31, 2021.
However, the duration and extent of the effects cannot be reasonably estimated at this time.
The risks and uncertainties resulting from the pandemic that may affect future earnings, cash
flows and financial condition of the Company and our investees, include the time necessary to
distribute safe and effective vaccines and to vaccinate a significant number of people in Japan

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144

and throughout the world.
In such situation, in the evaluation of goodwill, property, plant and equipment, right-of-use
assets, and intangible assets for impairment, fair values of investments, and expected credit losses
on receivables, loan commitment, and credit guarantee, held by the Company, these wererecorded with the amount reasonably estimated, based on the information and the facts available
at the timing of preparing the consolidated financial statements, considering the duration of the
COVID-19 pandemic and the risks and uncertainties of its effects. However, the uncertainties in
the future may cause differences between the best estimate of the amount and subsequent
results.

6. Discontinued operations(1) Sprint
As of March 31, 2020, it was highly probable that Sprint would merge with T-Mobile US, Inc. andwould no longer be a subsidiary of the Company. Accordingly, assets, liabilities, and accumulated othercomprehensive income of Sprint were reclassified as a disposal group classified as held for sale. The
disposal group classified as held for sale was measured at the carrying amount as the fair value of
T-Mobile US, Inc. shares which the Company acquired from the merger transaction was higher than the
carrying amount of Sprint shares.
On April 1, 2020, the merger of Sprint and T-Mobile US, Inc. was completed under the businesscombination agreement which the Company entered into with the parties, including Sprint, T-Mobile
US, Inc. and Deutsche Telekom AG (“Deutsche Telekom”) on April 29, 2018 (EST) (“Business
Combination Agreement,” which was previously amended by an amendment dated July 26, 2019 andFebruary 20, 2020).
Under the merger transaction, Starburst I, Inc. which held Sprint shares and Galaxy Investment
Holdings, Inc. were merged with and into Huron Merger Sub LLC, a U.S. subsidiary of T-Mobile US, Inc.
and directly owned by T-Mobile US, Inc., with Huron Merger Sub LLC as the surviving company. In
addition, Superior Merger Sub Corp., a U.S. subsidiary of Huron Merger Sub LLC and directly owned by
Huron Merger Sub LLC, was merged with and into Sprint, with Sprint as the surviving company. As aresult of the transactions, Sprint became a wholly-owned subsidiary of T-Mobile which was a newcompany after the merger and owned Sprint indirectly.
As a result, Sprint was no longer a subsidiary of the Company and T-Mobile became an equity
method associate of the Company from that date. The difference between the total fair value less costs
to sell as of April 1, 2020 for acquired T-Mobile shares as consideration of the merger transaction andacquiring shares when certain contingency is satisfied (the “contingent consideration”), and thecarrying amount of Sprint (assets, liabilities, accumulated other comprehensive income, and non-controlling interests in Sprint) was recorded as a gain relating to loss of control for the fiscal year ended
March 31, 2021. In addition, the carrying amount of non-controlling interests in Sprint at the time of

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loss of control over Sprint is ¥424,746 million ($3,836,564 thousand).
The Company surrendered as contingent considerations to T-Mobile an aggregate of 48,751,557
shares of T-Mobile common stock, of the 353,357,606 shares to be received from the transaction,effective immediately following the closing of the transaction. If the trailing 45-day volume-weighted
average price per share of T-Mobile common stock on the NASDAQ Global Select Market is equal to or
greater than $150 at any time during the period commencing on the second anniversary of the closing
date and ending on December 31, 2025, T-Mobile will re-issue to the Company, for no additional
consideration, a number of shares of T-Mobile common stock equal to the abovementioned number ofshares to be surrendered, subject to the terms and conditions included as part of the Business
Combination Agreement.
The Company recognizes the fair value of the contingent consideration as “Derivative financial assets(non-current)” in the consolidated statement of financial position and ¥196,313 million ($1,773,218
thousand) is recorded as of the acquisition date. In addition, changes in the fair value after theacquisition date are recognized as “Gain on investments at Investment Business of Holding Companies”
in the consolidated statement of income.
Operating results related to Sprint for the fiscal year ended March 31, 2020 and gain relating to lossof control over Sprint for the fiscal year ended March 31, 2021 are presented as discontinued
operations, separately from continuing operations, in the consolidated statement of income.
In addition, of 304,606,049 shares of T-Mobile common stock held, 173,564,426 shares weretransferred by the Company on June 26, 2020. As a result of the transaction, due to the decrease invoting rights ratio resulted from the share transfer, the Company had no significant influence over
T-Mobile and T-Mobile was no longer considered as an equity method associate of the Company. The
details are described in “The transfer of T-Mobile shares” under “Note 52. Additional information.”

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145

(Millions of yen)a. Disposal group classified as held for sale(Millions of yen)

As of March 31, 2020

Assets classified as held for sale
Cash and cash equivalents ������������������
Trade and other receivables ����������������
Other financial assets��������������������������
Inventories������������������������������������������
Other current assets����������������������������
Total current assets��������������������������������
Property, plant and equipment������������
Right-of-use assets������������������������������
Goodwill��������������������������������������������
Intangible assets����������������������������������
Costs to obtain contracts��������������������
Investments accounted for using theequity method����������������������������������
Investment securities ��������������������������
Other financial assets��������������������������
Other non-current assets ��������������������
Total non-current assets��������������������������
Total assets�����������������������������������������������
Liabilities directly relating to assets
classified as held for saleInterest-bearing debt��������������������������
Lease liabilities������������������������������������
Trade and other payables��������������������
Income taxes payables ������������������������
Provisions�������������������������������������������
Other current liabilities������������������������
Total current liabilities����������������������������
Interest-bearing debt��������������������������
Lease liabilities������������������������������������
Derivative financial liabilities����������������
Other financial liabilities����������������������
Provisions�������������������������������������������
Deferred tax liabilities��������������������������
Other non-current liabilities ����������������
Total non-current liabilities����������������������
Total liabilities�����������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021¥

240,982
385,511
7,166
97,712
131,240
862,611

As of March 31, 2021

¥

¥

$

–
–
–
–
–
–

¥

–
–
–
–
–
–
–
–
–

–
–
–
–
–
–
–
–
–
–
–

$

–
–
–
–
–
–
–

331,881
202,743
395,415
1,949
8,720
292,041
1,232,749
3,591,777583,348
5,189
4,298
81,261
746,834
209,515
5,222,222¥ 6,454,971

As of March 31, 2021

–
–
–
–
–

1,890,600
763,529
322,978
5,082,956
196,438
3,049
3,225
47,14063,522
8,373,437¥ 9,236,048

–
–
–
–
–
–

As of March 31, 2020

(Thousands of U.S. dollars)

–
–
–
–
–
–

–
–
–
–
–
–
–

$

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–
–
–
–
–
–
–
–
–

Message from Our CEO

As of March 31, 2021

(Thousands of U.S. dollars)

As of March 31, 2021

Accumulated other comprehensive
income directly relating to assets
classified as held for sale
Cash flow hedges��������������������������������

¥ (3,454)

Exchange differences on translating
foreign operations ����������������������������

209,149

Total accumulated othercomprehensive income����������������������

¥205,695

¥

–

$

–
¥

–
–

–

$

–

b. Results of operations from discontinued operations(Millions of yen)

Fiscal year ended
March 31, 2020

Net sales������������������������������������������������
Cost of sales������������������������������������������

¥ 3,321,535(2,131,312)

Selling, general and administrative
expenses����������������������������������������������

Fiscal year ended
March 31, 2021¥––

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021$––

(956,029)(312,534)(69,208)

–
–
–

–
–
–

Income taxes������������������������������������������

(147,548)
108,993––––

Income from discontinued operations
after income tax ����������������������������������

(38,555)–––(38,555)

720,842¥ 720,842

6,511,083$ 6,511,083

Net income from discontinued operations���(38,555)

720,842

6,511,083

Other comprehensive income fromdiscontinued operations������������������������

(82,211)(205,694)(1,857,953)

Comprehensive income from discontinued
operations��������������������������������������������

¥ (120,766)¥ 515,148$ 4,653,130

Finance cost
Other
Income from discontinued operations
before income tax ��������������������������������

Gain relating to loss of control overdiscontinued operations*1, 2 ������������������
Net income from discontinued operations���¥*1 Tax expense is presented as zero in the consolidated statement of income because the taxable income at SoftBank Group Corp. was not
generated for the fiscal year despite income generated at SoftBank Group Corp. from the gain recognized related to discontinued
operations for the acquired contingent consideration at the time of the merger between Sprint and T-Mobile US, Inc.
*2 T he Company may indemnify T-Mobile and its subsidiaries against any losses, including monetary losses resulting from certain specified
matters, incurred by Sprint and its subsidiaries due to the cessation of T-Mobile’s and its subsidiaries’ access to the frequencies of Sprint
and its subsidiaries under certain circumstances based on the Business Combination Agreement, which the Company entered into withthe parties, including Sprint, T-Mobile US, Inc., and Deutsche Telekom, in principle. Accordingly, ¥26,362 million ($238,118 thousand)including ¥870 million ($7,858 thousand) which is the reasonably estimated provision as of March 31, 2021, was recorded as theindemnification for the fiscal year ended March 31, 2021. The indemnification and expenses arising from the merger transaction are
deducted from the gain relating to loss of control under discontinued operations.

Who We Are

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

146

a. Results of operations from discontinued operations

c. Cash flows from discontinued operations(Millions of yen)

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

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ 641,013(549,794)(612,373)¥ (521,154)¥ (45,647)––¥ (45,647)$ (412,311)––$ (412,311)

The sale of Sprint shares as of April 1, 2020 was conducted as a share exchange with T-Mobile sharesand corresponds to a non-cash transaction.

(2) Brightstar
On September 17, 2020, the Company has entered into a definitive agreement with Brightstar CapitalPartners, in order to sell all of its shares in Brightstar to a newly formed subsidiary of Brightstar CapitalPartners. Upon this agreement, it was highly probable that Brightstar would no longer be a subsidiaryof the Company at the completion of the transaction. Accordingly, assets, liabilities, and accumulated
other comprehensive income of Brightstar were reclassified as a disposal group classified as held forsale. Brightstar was measured at the fair value less costs to sell (expected sale price) as the expected saleprice is lower than the carrying amount of Brightstar. As a result, the Company recorded an impairment
loss on goodwill for ¥12,423 million ($112,212 thousand).
On October 22, 2020, the sale of all shares in Brightstar was completed. As a result of the transaction, Brightstar was excluded from the scope of consolidation of the Company. The difference between
the consideration less costs to sell and the carrying amount of Brightstar (assets, liabilities, accumulated
other comprehensive income, and non-controlling interests in Brightstar) was recorded as a gain relating
to loss of control for the fiscal year ended March 31, 2021.
Operating results related to Brightstar are presented as discontinued operations, separately fromcontinuing operations, in the consolidated statement of income. Also, the above impairment loss on
goodwill and gain relating to loss of control are presented as discontinued operations.
The consideration consists of cash proceeds of $685 million and a 25% stake (equivalent to $90
million) in a newly formed subsidiary of Brightstar Capital Partners, which holds all shares in Brightstar.
The acquired shares are preferred stock investments whose feature is substantially different frominvestments in common stock, therefore the preferred stock is measured at fair value and accounted for
as financial instruments at FVTPL.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ 946,155(900,769)(50,565)(7,051)(2,316)¥ 330,929(303,409)(18,992)(2,044)(15,459)$ 2,989,152(2,740,574)(171,547)(18,463)(139,636)

Income taxes������������������������������������������

(14,546)(5,042)(8,975)(2,082)(81,068)(18,806)

Income from discontinued operations
after income tax ����������������������������������

(19,588)(11,057)(99,874)–¥ (19,588)

1,163¥ (9,894)

Net income from discontinued operations���(19,588)(9,894)(89,369)

Other comprehensive income fromdiscontinued operations������������������������

(902)

2,902

26,213Comprehensive income from discontinued
operations��������������������������������������������

¥ (20,490)¥ (6,992)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ 38,340(5,759)(34,642)¥ (2,061)¥ 38,733(4,807)(1,475)¥ 32,451$ 349,860(43,420)(13,323)$ 293,117

Net sales������������������������������������������������
Cost of sales������������������������������������������
Selling, general and administrative expenses���Finance cost ������������������������������������������
Other ����������������������������������������������������
Income from discontined operations
before income tax ��������������������������������

Gain relating to loss of control overdiscontinued operations������������������������
Net income from discontinued operations$$

10,505(89,369)(63,156)b. Cash flows from discontinued operations(Millions of yen)

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

(Thousands of U.S. dollars)

7. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors
in order to make decisions about the allocation of resources and assess its performance.
For the fiscal year ended March 31, 2020, the Company had four reportable segments: the SoftBank
Vision Fund and Other SBIA-Managed Funds segment, the SoftBank segment, the Arm segment, andthe Brightstar segment. Following the completion of the merger between Sprint and T-Mobile US, Inc.

Who We Are

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Financial Section

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147

on April 1, 2020, Sprint was no longer a subsidiary of the Company from that date. As a result, themateriality of the investment activities has increased even further for the overall consolidated financial
results of the Company. Consequently, business segments that are regularly reviewed by the Company’s
Board of Directors have been changed. As a result of the change, from the three-month period ended
June 30, 2020, the Company has revised its segment classifications and the Investment Business of
Holding Companies segment has been added to the reportable segments. In addition, from thethree-month period ended September 30, 2020, the Company has entered into a definitive agreementwith Brightstar Capital Partners, in order to sell all of its shares in Brightstar held by the Company to a
newly formed subsidiary of Brightstar Capital Partners. It is highly probable that Brightstar will no longer
be a subsidiary of the Company. As a result, Brightstar has been classified as a discontinued operationand the Brightstar segment is excluded from the reportable segments.
Accordingly, from the three-month period ended September 30, 2020, the Company has four
reportable segments: the Investment Business of Holding Companies segment, the SoftBank Vision
Fund and Other SBIA-Managed Funds segment, the SoftBank segment, and the Arm segment. The
SoftBank Vision Fund and Other SBIA-Managed Funds segment was renamed to the SVF1 and Other
SBIA-Managed Funds segment from the three-month period ended September 30, 2020. In addition,
following the signing of the definitive agreement with NVIDIA Corporation in order to sell all of its
shares in Arm Limited to NVIDIA Corporation, the organizational structure of Arm has been changed
from the three-month period ended March 31, 2021. As a result, the Treasure Data business and theother IoT related business, which were included in the Arm segment, have been excluded from the Armsegment and transferred to “Other.”The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group
Corp. as a strategic investment holding company, investment activities in a wide range of sectors inJapan and overseas directly or through subsidiaries of the Company. The Investment Business of Holding
Companies segment consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank
Group Japan Corporation (“SBGJ”), SB Northstar that is an asset management subsidiary, and certain
subsidiaries of the Company that conduct investment or funding. SB Northstar is engaged in varioustransactions such as acquisition and sale of listed stocks, derivative transactions related to listed stocks,
credit transactions, and others for diversification of the assets held and management of surplus funds.
Gain and loss on investments at Investment Business of Holding Companies consists of gain and loss
arising from investments held directly by SoftBank Group Corp. or through subsidiaries of the Company.
However, gain and loss on investments relating to investments in subsidiaries including dividend income
from subsidiaries and impairment loss on investments in subsidiaries are excluded.
The SVF1 and Other SBIA-Managed Funds segment conducts, mainly through SVF1 and SVF2,
investment activities in a wide range of technology sectors. Primarily, gain and loss on investments at
SVF1, SVF2, and others consist of gain and loss arising from investments held by SVF1 and SVF2
including the investment in the Company’s subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile communications services,sale of mobile devices, fixed-line telecommunication services such as broadband services in Japan, andthrough Z Holdings Corporation, internet advertising and e-commerce business. Services related to LINE
are included in the SoftBank segment following the business integration of Z Holdings Corporation andLINE Group.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, the sale of software tools, and related services.
Information on business segments which are not included in the reportable segments is classified in“Other.” “Other” includes mainly PayPay Corporation, Fortress, the investment activities by SoftBank
Latin America Fund L.P., and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination ofgain and loss on the investment in shares in Arm, a subsidiary of the Company, which are included insegment income of the SVF1 and other SBIA-Managed Funds and an elimination of income on equity
method investments recognized relating to PayPay Corporation, which is included in segment income of
the SoftBank segment. Such income on equity method investments is eliminated because the Company
consolidates PayPay Corporation as its subsidiary and related amounts are also included in “Other.”Segment information for the fiscal year ended March 31, 2020 is presented based on the reportablesegments after the aforementioned change.

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Income before income tax.” In accordance with thechange in presentation of the consolidated statement of income where “Operating income” is nolonger presented, which has been implemented from the three-month period ended June 30, 2020,
income of reportable segments to be reported to the Company’s Board of Directors in order to makedecisions about the allocation of resources and assess its performance has been changed from“Operating income” to “Income before income tax.” The details are described in “(4) Changes inpresentation” under “Note 2. Basis of preparation of consolidated financial statements.” As in the
consolidated statement of income, “Gain (loss) on investments” included in segment income includes
realized gain and loss from sales of investments in financial assets at FVTPL for which investment
performance is measured at fair value, unrealized gain and loss on valuation of investments, dividend
income from investments, derivative gain and loss relating to investments in financial assets at FVTPL,
and realized gain and loss from sales of investments accounted for using the equity method. The
Investment Business of Holding Companies segment calculates its segment income by eliminating gain
and loss on investments relating to investments in subsidiaries, including dividend income fromsubsidiaries and impairment loss on investments in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions asapplied for external customers.

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Financial Section

Corporate Information

148

For the fiscal year ended March 31, 2020

(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds

SoftBank

Arm

Total

Other

–
–
–

¥ 4,852,917
9,567¥ 4,862,484¥ 196,691
375¥ 197,066¥ 5,049,608
9,942¥ 5,059,550¥ 189,330
16,442¥ 205,772

Income (loss) on equity method investments����������������

913,740(3,862)484,308(198,535)
657,232(1,412,574)(402)(1,844,867)(23,547)–

815,617(701,984)
9,720(60,155)(41,839)(11,105)(71,740)
312
(956)
923

305,678(777,988)(1,350,527)(283,193)
616,316

Derivative gain (loss) (excluding gain (loss) on
investments)��������������������������������������������������������������

(1,886)

–

(20)

(673)

(2,579)Reconciliations

Consolidated

Net sales
Customers������������������������������������������������������������������

¥Intersegment��������������������������������������������������������������
Total������������������������������������������������������������������������������

¥Segment income������������������������������������������������������������
Depreciation and amortization������������������������������������
Gain (loss) on investments ������������������������������������������
Finance cost����������������������������������������������������������������

–
–
–

¥
¥

¥

–
(26,384)¥ (26,384)¥ 5,238,938–¥ 5,238,938(299,703)(46,587)(59,626)(17,018)(30,169)

44,063––
6,314
37,86850,038(824,575)(1,410,153)(293,897)
624,015

2,594

–

15

For the fiscal year ended March 31, 2021

(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds*

SoftBank

Arm

Total

Other

Reconciliations

Consolidated–––¥ 5,190,976
13,374¥ 5,204,350¥ 208,917
931¥ 209,848¥ 5,399,893
14,305¥ 5,414,198¥ 228,274
10,317¥ 238,591–(24,622)¥ (24,622)¥ 5,628,167–¥ 5,628,167

Income (loss) on equity method investments����������������

760,927(2,304)
946,107(218,604)
601,364

4,026,823(535)
6,357,462(10,419)–

847,933(729,914)
1,433(64,322)(45,048)(33,873)(71,225)364(1,044)
1,958

5,601,810(803,978)7,305,366(294,389)
558,274

92,625(42,954)289,241(16,621)
21,578(23,979)–(65,601)
3,760
36,5805,670,456(846,932)
7,529,006(307,250)
616,432

Derivative gain (loss) (excluding gain (loss) on
investments)��������������������������������������������������������������

(477,536)

–

410

847

(476,279)(3,972)–(480,251)

Net sales
Customers������������������������������������������������������������������

¥Intersegment��������������������������������������������������������������
Total������������������������������������������������������������������������������
Segment income������������������������������������������������������������
Depreciation and amortization������������������������������������
Gain (loss) on investments ������������������������������������������
Finance cost����������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

¥

–
–
–

¥
¥

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth¥

Financial Section

Corporate Information

149

(Thousands of U.S. dollars)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds*

SoftBank

Arm

Total

Other

–
–
–

$ 46,888,050
120,802$ 47,008,852$ 1,887,065
8,409$ 1,895,474$ 48,775,115
129,211$ 48,904,326$ 2,061,910
93,190$ 2,155,100

Reconciliations

Consolidated

Net sales
Customers������������������������������������������������������������������

$

–
–
–

Intersegment��������������������������������������������������������������

$$–(222,401)$ (222,401)$ 50,837,025–$ 50,837,025

Total������������������������������������������������������������������������������

$Segment income������������������������������������������������������������

Income (loss) on equity method investments����������������

6,873,155(20,811)8,545,813(1,974,564)
5,431,885

36,372,712(4,832)57,424,460(94,111)–

7,659,047(6,593,028)
12,944(580,995)(406,901)(305,962)(643,347)
3,288(9,430)17,68650,598,952(7,262,018)
65,986,505(2,659,100)
5,042,670

836,646(387,987)
2,612,601(150,132)
194,905(216,593)–(592,548)
33,963
330,413

51,219,005(7,650,005)
68,006,558(2,775,269)
5,567,988

Derivative gain (loss) (excluding gain (loss) on
investments)��������������������������������������������������������������

(4,313,395)

–

3,703

7,651

(4,302,041)(35,878)–(4,337,919)

Depreciation and amortization������������������������������������
Gain (loss) on investments ������������������������������������������
Finance cost����������������������������������������������������������������

$* The details of the difference between “Gain (loss) on investments” in the SVF1 and Other SBIA-Managed Funds segment and “Gain (loss) on investments at SVF1, SVF2, and others” in the consolidated statement of income are described in “Note 9. SVF1 and other SBIA-managed funds
business.”(3) Geographical information
a. Net sales to external customers

b. Non-current assets (excluding financial assets and deferred tax assets)(Millions of yen)(Thousands of U.S. dollars)(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Japan ����������������������������������������������

¥4,880,433¥5,193,795$46,913,513

Other ����������������������������������������������

358,505

434,372

3,923,512

Total��������������������������������������������

¥5,238,938¥5,628,167$50,837,025

Other ����������������������������������������������

438,140

539,954

4,877,193

Total��������������������������������������������

¥8,894,902¥10,192,767$92,067,266

Sales are categorized based on the location of external customers.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Japan ����������������������������������������������

¥5,337,087¥ 6,526,025$58,947,024

U.K. ������������������������������������������������

3,119,675

3,126,788

28,243,049

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

150

8. Special purpose acquisition companies sponsored by the Company
A special purpose acquisition company (“SPAC”) is an investment vehicle formed for the purpose ofeffecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar businesscombination with one or more businesses that have not yet been identified at the time of the offering.
Subsequent to its formation, the SPAC executes an initial public offering and raises capital throughcontributions from public investors. The SPAC then seeks to identify an unlisted company as a target
company and completes a business combination with the target company with necessary approvals.
Although the SPAC becomes the legal surviving company, substantially the target company, which is anunlisted company, becomes a publicly listed company through the business combination. A SPAC may
arrange committed equity financing in private placement with certain investors in order to raise
additional funds necessary for the business combination (“Private Investment in Public Equity”).
For the fiscal year ended March 31, 2021, Fortress, SB Investment Advisers (US) Inc.*, and thesubsidiary in the investment fund business in Latin America (subsidiaries of the Company) have formed,
as sponsors, nine SPACs. These SPACs have raised funds through initial public offerings in the UnitedStates. For the fiscal year ended March 31, 2021, the total funds raised were $3,304 million (theamounts for Fortress, SB Investment Advisers (US) Inc.*, and the subsidiary in the investment fundbusiness in Latin America were $1,920 million, $1,154 million and $230 million, respectively).
Since the Company has control over the SPACs from inception until its merger with a target
company, the SPACs are consolidated as subsidiaries. The Company, as sponsor, acquires shares and, if
applicable, warrants of SPACs as consideration for funds invested by the Company in SPACs.
Investments in SPACs by the Company as sponsor, as well as investments by other subsidiaries of theCompany, are eliminated in consolidation.
The proceeds received from investors other than the Company as sponsor (“Public Market Investors”)
can only be used for the initial merger and redemptions of the proceeds to Public Market Investors. The
proceeds received are held in a trust account until completion of the initial merger or redemption to
Public Market Investors and are invested only in certain financial assets that are highly liquid.

The carrying amounts of the assets restricted on its use held in the trust accounts are as follows;(Millions of yen)

As of March 31, 2020

(Thousands of U.S. dollars)

As of March 31, 2021

As of March 31, 2021

¥ 327,569$ 2,958,802

Other financial assets (non-current)
Trust accounts in SPACs������������������������

¥–The amount of ownership interests held by Public Market Investors include proceeds received from
Public Market Investors at the initial public offering and income including interest earned on suchproceeds. Shares issued by a SPAC at the initial public offering are subject to conditions that the SPAC
will cease all operations and redeem all of the proceeds received from Public Market Investors in the
SPAC to them if the SPAC is unable to complete a merger within 24 months from the date of the initialpublic offering. In addition, Public Market Investors retain an option to redeem part or all of proceeds
received from them upon completion of the initial merger. When the condition is met or the option is
exercised, the relevant SPAC will be obligated to redeem them for cash and, therefore, non-controllinginterests subject to possible redemption are included in and presented as “Other financial liabilities(non-current)” and classified as “financial liabilities measured at amortized cost” in the consolidated
statement of financial position.
The carrying amounts of non-controlling interests subject to possible redemption are as follows:(Millions of yen)

As of March 31, 2020

(Thousands of U.S. dollars)

As of March 31, 2021

As of March 31, 2021

¥ 298,092$ 2,692,548

Other financial liabilities (non-current)
Non-controlling interests subject topossible redemption����������������������������

¥–When the Company loses control over a SPAC due to a successful merger with a target company, theSPAC will no longer be subject to consolidation. For the fiscal year ended March 31, 2021, a SPAC
sponsored by Fortress completed a merger with a target company and that SPAC was excluded fromthe scope of consolidation due to loss of control. Furthermore, an agreement to merge with a target
company was completed between another SPAC sponsored by Fortress as of March 31, 2021.
* SB Investment Advisers (US) Inc. is a wholly-owned subsidiary of the Company and provides investment advices to SBIA.

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9. SVF1 and other SBIA-managed funds business(1) Income and loss arising from the SVF1 and other SBIA-managed funds businessa. Overview
Segment income arising from the SVF1 and other SBIA-managed funds business (income before
income tax) represents the net profits of the SVF1 and other SBIA-managed funds business, after
deducting the net profits attributable to Third-Party Investors. The net profits attributable toThird-Party Investors are the amount after deducting management fees and performance feesthat SBIA receives from SVF1.
The amount of the net profits attributable to Third-Party Investors that is deducted from thesegment income is presented as “Change in third-party interests in SVF1.”
b. Segment income arising from the SVF1 and other SBIA-managed funds business
The components of segment income arising from the SVF1 and other SBIA-managed funds
business are as follows:(Millions of yen)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

Gain (loss) on investments at SVF1,
SVF2, and others
Realized gain on sales ofinvestments��������������������������������

419,640$ 3,790,444(1,877,682)

6,013,404

54,316,719(40,012)
12,848145(116,345)
29,8491,091(1,050,899)
269,614
9,855

1,494
(1,844,867)

9,823
6,357,462

88,72757,424,460

Other gain ��������������������������������������

(86,484)(23,547)
540,930
1,394(74,194)(10,419)(2,246,417)
391(670,165)(94,111)(20,291,004)
3,532

Segment income arising from the SVF1
and other SBIA-managed funds
business (income before income tax) ����

¥ (1,412,574)¥ 4,026,823$ 36,372,712¥

58,340¥

Unrealized gain (loss) on valuationof investments
Change in valuation for the fiscal
year*1 ������������������������������������
Reclassified to realized loss
recorded in the past fiscal year*2 ��
Dividend income from investments ����
Derivative gain on investments������
Effect of foreign exchangetranslation*3��������������������������������
Selling, general and administrative
expenses ��������������������������������������
Finance cost (interest expenses)��������
Change in third-party interests in SVF1���SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO*1 In
 September 2020, the Company entered into a definitive agreement with NVIDIA Corporation in order to sell all of its shares inArm, a subsidiary of the Company, held by the Company (including shares held by SVF1). Given the definitive agreement, SVF1
recorded ¥45,435 million ($410,397 thousand) of unrealized gain for the fiscal year ended March 31, 2021 upon the fair value
estimation of Arm held by SVF1.
The unrealized gain arising from Arm shares held by SVF1 is included in “Gain (loss) on investments at SVF1, SVF2, and others”(in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in the above-mentioned segment
income. However, the unrealized gain is eliminated in consolidation as Arm is a subsidiary of the Company.
In addition, SVF1 received ¥19,912 million ($179,857 thousand) of dividends from Arm for the fiscal year ended March 31, 2021.
The dividends received from Arm are included in “Gain (loss) on investments at SVF1, SVF2, and others” (in Dividend income frominvestments) in the above-mentioned segment income, however, the dividends are eliminated in consolidation. The unrealized gain
and the dividends, that are eliminated in consolidation, are not included in “Gain (loss) on investments at SVF1, SVF2, and others”
in the consolidated statement of income.
*2 It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SVF1, SVF2, andothers” in the past fiscal years, which are reclassified to realized gain and loss on sales of investments due to the sales of the shares.
*3 U
 nrealized gain and loss on investments are translated using the average exchange rate for the quarter in which the gain and loss
were recognized, while realized gain and loss on disposal of investments are translated using the average exchange rate for thequarter in which the shares were disposed. Foreign currency translation effects are arising from the different foreign currency
exchange rates used for unrealized gain and loss and realized gain and loss.

(2) Third-party interests in SVF1
a. 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 withregard 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
SVF1. Those performance-based distributions and performance fees attributed to SBIA will beallocated 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 distributions is paid to each limited partner after SVF1 receives cash throughdividend, 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 contributions. The fixed distributions are madeevery last business day of the months of June and December.
In the following table, Third-Party Investors contributing Equity are defined as “Investors
entitled to performance-based distribution” and Third-Party Investors contributing Preferred
Equity are defined as “Investors entitled to fixed distribution.”

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(Thousands of U.S. dollars)b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SVF1”
included in the consolidated statement of financial position) are as follows:(For reference purposes only)
Links with the consolidated financial
statements(Millions of yen)

Third-party interests(Total of current liabilities andnon-current liabilities)(For reference purposes only)
Links with the consolidated financial
statements

Third-party interests(Total of current liabilities andnon-current liabilities)

Consolidated
statement of income(Negative
figures represent
expenses)

Consolidated
statement of cash
flows
(Negative figures
represent payments)(Breakdown)

As of April 1, 2020 ��������������������

¥ 4,584,419

Contributions from third-party
investors����������������������������������

979,266–

979,266

Changes in third-party interests��

2,246,417(2,246,417)–

Attributable to investors
entitled to fixed distribution��197,796

Attributable to investors
entitled to performance-based
distribution ��������������������������

2,048,621

Distribution/repayment to thirdparty investors��������������������������

(1,362,066)–(1,362,066)

Exchange differences ontranslating third-party interests*1��

153,755––

As of March 31, 2021*2��������������

¥ 6,601,791

Consolidated
statement of income(Negative
figures represent
expenses)

Consolidated
statement of cash
flows
(Negative figures
represent payments)(Breakdown)

As of April 1, 2020����������������������

$41,409,258

Contributions from third-party
investors������������������������������������

8,845,326–

8,845,326

Changes in third-party interests����

20,291,004(20,291,004)–

Attributable to investors entitled
to fixed distribution����������������

1,786,614

Attributable to investors entitledto performance-based
distribution ����������������������������

18,504,390

Distribution/repayment to thirdparty investors����������������������������

(12,303,008)–(12,303,008)

Exchange differences ontranslating third-party interests*1

1,388,808––

As of March 31, 2021*2 ��������������

$59,631,388*1 E xchange differences were included in “Exchange differences on translating foreign operations” in the consolidated statement ofcomprehensive income.
*2 Of third-party interests as of March 31, 2021, the amount attributable to investors entitled to fixed distribution is ¥2,348,005 million($21,208,608 thousand) and of this amount, the amount of unpaid fixed distributions is not recorded.

c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of March 31, 2021 was $9.4 billion.
No contributions from Third-Party Investors were made into SVF2 from the inception to March
31, 2021, and there were no third-party interests in SVF2 as of March 31, 2021.

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(3) Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA from SVF1, included insegment income from the SVF1 and other SBIA-managed funds business, are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with the limited partnership agreement, calculated
by multiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA
by SVF1 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 isentitled to receive the performance fees when SVF1 receives cash through disposition, dividend
and monetization of an investment.
From the inception of SVF1 to March 31, 2021, the cumulative amount of performance fees
paid to SBIA was $439 million. For the fiscal year ended March 31, 2021, no performance fees
were paid to SBIA.
In addition, the performance fees received are subject to clawback provisions which are
triggered under certain conditions based on future investment performance.

10. Business combinations
For the fiscal year ended March 31, 2020
ZOZO, Inc.
(1) Overview of the business combination
With the aim of strengthening its clothing/fashion e-commerce activities in an effort to further expand
its e-commerce business, Z Holdings Corporation, the Company’s subsidiary, proposed a tender offer forthe common shares of ZOZO, Inc., as resolved at its Board of Directors meeting held on September 12,
2019. This tender offer was completed on November 13, 2019, and the Company acquired ZOZO, Inc.’s
152,952,900 common shares in cash for ¥400,737 million. As a result, the Company holds 50.1% ofvoting rights ratio in ZOZO, Inc., and ZOZO, Inc. became a consolidated subsidiary of the Company. In
addition, in order to procure part of the funds necessary to acquire the target shares for this businesscombination, the Company entered into a borrowing arrangement for ¥400,000 million.
(2) Summary of the acquiree
Name

ZOZO, Inc.

Nature of business

Planning/operation of fashion online shopping website “ZOZOTOWN”
Planning/development of private brand “ZOZO”
Customer support, operation of logistics center “ZOZOBASE”(3) Acquisition dateNovember 13, 2019(4) Consideration transferred and the component(Millions of yen)

Acquisition date(November 13, 2019)

Payment by cash���������������������������������������������������������
Total consideration transferred�������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

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Management: The Foundation Supporting Our Growth¥ 400,737
A¥ 400,737

Financial Section

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154

(Millions of yen)

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

Intangible assets with indefinite useful lives

Acquisition date(November 13, 2019)

Cash and cash equivalents�����������������������������������

¥ 22,876

Trade and other receivables���������������������������������

30,443

Other current assets �������������������������������������������

7,770

Property, plant and equipment�����������������������������

8,610

Right-of-use assets ���������������������������������������������

20,964

Intangible assets*1�����������������������������������������������

503,017

Other non-current assets�������������������������������������

13,799Total assets���������������������������������������������������������

607,479

Interest-bearing debt (current)�����������������������������

22,000Acquisition date(November 13, 2019)

Trademarks ��������������������������������������������������������������������

¥ 178,720

Intangible assets with finite useful lives
Customer relationships����������������������������������������������������
Other������������������������������������������������������������������������������
Total ��������������������������������������������������������������������������

322,070
2,227¥ 503,017*2 N on-controlling interests
Non-controlling interests are measured based on the proportionate interests in the fair value of the identifiable net assets of the acquiree.
*3 Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy between the Company and the acquiree.

(6) Payment for acquisition of control over subsidiaries(Millions of yen)

Lease liabilities (current)���������������������������������������

3,854

Trade and other payables�������������������������������������

28,362Other current liabilities ���������������������������������������

9,263

Lease liabilities (non-current) �������������������������������

16,735

Deferred tax liabilities �����������������������������������������

150,269

Other non-current liabilities���������������������������������

3,420

Total liabilities�����������������������������������������������������

233,903

Net assets�����������������������������������������������������������

B

Non-controlling interests*2�����������������������������������

C

185,750

Goodwill*3 ��������������������������������������������������������� A – ( B – C)

¥ 212,911

Acquisition date(November 13, 2019)373,576*1 Intangible assets
Identifiable assets of ¥503,017 million are included and the components of intangible assets are as follows; the estimated useful lives arefrom 18 to 25 years for customer relationships. Trademarks are classified as intangible assets with indefinite useful lives. In addition,
intangible assets recognized by business combinations are measured based on assumptions such as estimated future cash flow, discountrate, attrition rate of existing customers, future sales forecast generated by trademarks, and royalty rate.

Table of Contents¥ (400,737)

Cash and cash equivalents held by the acquireeat the time of acquisition of control�������������������������������������

22,876

Payment for the acquisition of control overthe subsidiary by cash ���������������������������������������������������������

¥ (377,861)(7) Sales and net income of the acquiree
The amounts of the acquiree’s sales and net income before elimination of inter-company transactions
after the acquisition date, which are recorded in the consolidated statement of income for the fiscal
year ended March 31, 2020, are ¥57,462 million and ¥5,773 million, respectively. In addition,amortization expenses related to intangible assets recognized on the acquisition date are included in
the aforementioned net income.

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fairvalue on the acquisition date. Allocation of the consideration was completed during the three-month
period ended March 31, 2020. There is no change from the initial provisional amount to the final
amount.

SoftBank Group Corp. ANNUAL REPORT 2021

Payment for the acquisition by cash���������������������������������������

Message from Our CEO(8) Consolidated net sales and consolidated net income assuming that the business combinations were completed at the beginning of the fiscal year
The following is pro forma information (unaudited) of the consolidated performance of the Company
for the fiscal year ended March 31, 2020, assuming that the business combinations of ZOZO, Inc. werecompleted and control was acquired as of April 1, 2019.
(Millions of yen)

Fiscal year ended
March 31, 2020

Sales (pro forma)�������������������������������������������������������������������

¥ 5,306,017

Net income (pro forma)���������������������������������������������������������

¥ (798,430)

Who We Are

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

155

For the fiscal year ended March 31, 2021
Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation(1) Overview of the transaction
SoftBank Corp., a subsidiary of the Company, consolidated LINE Corporation and implemented thebusiness integration of LINE Corporation and Z Holdings Corporation for the purpose of maximizing
synergy in each business field pertaining to Z Holdings Corporation and LINE Group, aggregating
management resources and enhancing growth in the new business fields.
Through this acquisition, SoftBank Corp. first transferred all the Z Holdings Corporation shares held by
SoftBank Corp. to Shiodome Z Holdings Co., Ltd (subsequently, its corporate form was changed to
Shiodome Z Holdings G.K.), and SoftBank Corp. and NAVER J.Hub Corporation, which is wholly owned by
NAVER Corporation, major shareholder of LINE Corporation, conducted a joint tender offer for thecommon stock of LINE Corporation and implemented squeeze-out procedures of minority shareholders aswell as making adjustments of ownership interests of the LINE Corporation shares held by SoftBank Corp.
and NAVER J.Hub Corporation. As a result, SoftBank Corp. acquired 26,220 thousand common stock ofLINE Corporation for ¥172,992 million ($1,562,569 thousand) excluding transaction costs and therefore
the ratio of voting rights held by SoftBank Corp. in LINE Corporation became 11.2% as of February 25,
2021 (Refer to (a) under Structure Diagram below.)
LINE Corporation conducted a tender offer for the common stock of Z Holdings Corporation and anabsorption-type merger with Shiodome Z Holdings G.K. As a result, the ratio of voting rights held by
SoftBank Corp. and NAVER Corporation in LINE Corporation became 50.0% respectively as of February
26, 2021. Effective February 28, 2021, LINE Corporation transitioned all the business to LINE Split
Preparation Corporation through a company split (absorption-type company split) and changed its nameto A Holdings Corporation. Under the joint venture agreement entered into with NAVER Corporation,
SoftBank Corp. owns the rights to appoint the majority of the Board of Directors of A Holdings
Corporation. As a result, A Holdings Corporation and LINE Split Preparation Corporation are considered
substantially controlled by the Company, through SoftBank Corp., a subsidiary of the Company, andbecame subsidiaries of the Company, effective February 28, 2021, on which the legally binding joint
venture agreement was entered into by conducting the absorption-type merger. Also, through A Holdings
Corporation, SoftBank Corp., a subsidiary of the Company, owns the rights to appoint the majority of theBoard of Directors of Z Holdings Corporation and accordingly, Z Holdings Corporation is considered
continuously controlled by SoftBank Corp. (Refer to (b) under Structure Diagram below.)
In addition, effective March 1, 2021, a share exchange of common stock of LINE Split Preparation
Corporation was conducted between Z Holdings Corporation and A Holdings Corporation (the exchange
ratio: allotted ratio of Z Holdings Corporation shares to be exchanged for one share of the LINE Split
Preparation Corporation is 11.75 and the allotted number of Z Holdings Corporation shares is2,831,284,030 shares) whereby LINE Split Preparation Corporation became the wholly-owned subsidiaryof Z Holdings Corporation. As a result, the ratio of voting rights held by A Holdings Corporation in
Z Holdings Corporation became 65.3%. Subsequently, LINE Split Preparation Corporation changed its
name to LINE Corporation (Refer to (c) under Structure Diagram below.)
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Table of Contents

Message from Our CEO

Structure Diagram(a) Joint tender offer for LINE Corporation
shares and squeeze-out

SoftBank

100.0
100.
0%

NAVER

11.2
11.
2%

Shiodome
Z Holdings

88.8
88.
8%
LINE

44.6
44.
6%
ZHD

(b) Tender offer for Z Holdings Corporation
shares and absorption-type merger
between Shiodome Z Holdings G.K.
and LINE Corporation (currently A
Holdings Corporation) as well as LINE
business demerger

SoftBank

NAVER

50.0
50.
0%

50.0
50.
0%
AHD

44.6
44.
6%

100.0
100.
0%
LINE

ZHD

(c) Share exchange between Z Holdings
Corporation and A Holdings
Corporation

Split Preparation

SoftBank

NAVER

50.0
50.
0%

50.0
50.
0%
AHD

65.3
65.
3%
ZHD

100.0
100.
0%
LINE

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156

(5) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition
date(2) Summary of acquiree
NameLINE Corporation*

Nature of business

Advertising service based on the mobile messenger application “LINE,” corebusiness including the sales of stamp and game services, and strategic
business including Fintech, AI, and commerce services.

* Refer to LINE Corporation, surviving company through the absorption-type merger conducted by Shiodome Z Holdings G.K. As described in“Structure Diagram (b)” under “(1) Overview of the business combination,” LINE Corporation, acquiree, transitioned all the business to LINE
Split Preparation Corporation (currently LINE Corporation) and changed its name to A Holdings Corporation, effective February 28, 2021.

(3) Acquisition dateFebruary 28, 2021
(4) Consideration transferred and the component(Millions of yen) (Thousands of U.S. dollars)

Fair value of common shares in LINE Corporation alreadyheld at the time of acquisition of control �������������������
Fair value of common shares in Shiodome Z Holdings
G.K. transferred at the time of acquisition of control���
Total consideration transferred�������������������������������������

A(Millions of yen) (Thousands of U.S. dollars)

Acquisition date(February 28, 2021)

Acquisition date(February 28, 2021)

Cash and cash equivalents�����������������������������������

¥ 312,791$ 2,825,318

Trade and other receivables���������������������������������

67,553

610,180

Other (current) ���������������������������������������������������

46,687421,705

Property, plant and equipment�����������������������������

24,667

222,807

Right-of-use assets ���������������������������������������������

62,940568,512Intangible assets*1�����������������������������������������������

425,401

3,842,480

Investments accounted for using the equity
method�������������������������������������������������������������

168,093

1,518,318

Other (non-current)���������������������������������������������

104,809946,700

Total assets���������������������������������������������������������

1,212,941

10,956,020
1,637,684

Acquisition date(February 28, 2021)

Acquisition date(February 28, 2021)¥ 172,922$ 1,561,936

Interest-bearing debt (current and non-current) ���181,308

Lease liabilities (current and non-current)�������������

62,940568,512689,150

6,224,822

Trade and other payables�������������������������������������

233,671

2,110,659¥ 862,072$ 7,786,758

Other (current) ���������������������������������������������������

49,169444,124Deferred tax liabilities �����������������������������������������

155,856

1,407,786

Other (non-current)���������������������������������������������

20,745

187,382

Total liabilities�����������������������������������������������������

703,689

6,356,147

509,252

4,599,873

Acquisition-related costs incurred for the business combination were ¥1,970 million ($17,794
thousand), of which ¥932 million ($8,418 thousand) and ¥1,038 million ($9,376 thousand) are
included in “Selling, general and administrative expenses” in the consolidated statement of income forthe fiscal year ended March 31, 2020 and for the fiscal year ended March 31, 2021, respectively. In
addition, as a result of remeasuring interests in LINE Corporation held by SoftBank Corp. based on thefair value as of the acquisition date, difference on the step acquisition of ¥(70) million ($(632) thousand)is recognized. The amount is included in “Equity financial assets at FVTOCI” in the consolidated
statement of comprehensive income.

Net assets�����������������������������������������������������������

B

Non-controlling interests*2�����������������������������������

C

264,257

2,386,929

Goodwill*3 ��������������������������������������������������������� A – ( B – C)

¥ 617,077$ 5,573,814

As the recognition of identifiable assets acquired and liabilities assumed as of the acquisition dateand measurement of their fair values were not complete as of March 31, 2021, the above amounts areprovisional based on the best estimate at present. Accordingly, the allocation of the considerationtransferred to assets acquired, liabilities assumed and resulting goodwill may change in a year from theacquisition date when additional information related to facts and circumstances that existed as of theacquisition date are obtained and evaluated.

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*1 Intangible assets
Identifiable assets of ¥406,964 million ($3,675,946 thousand) are included and the components of intangible assets are as follows; theestimated useful lives are from 12 to 18 years for customer relationships. Trademarks are classified as intangible assets with indefinite
useful lives. In addition, intangible assets recognized by business combinations are measured based on assumptions such as estimatedfuture cash flow, discount rate, attrition rate of existing customers, future sales forecast generated by trademarks, and royalty rate.
(Millions of yen) (Thousands of U.S. dollars)

Acquisition date(February 28, 2021)

Acquisition date(February 28, 2021)¥ 170,078$ 1,536,248

Intangible assets with indefinite useful lives
Trademarks ��������������������������������������������������������������������
Intangible assets with finite useful lives
Customer relationships����������������������������������������������������

236,886

2,139,698

Total ��������������������������������������������������������������������������

¥ 406,964$ 3,675,946*2 Non-controlling interests
Non-controlling interests, that give the holder a pro-rata share of the net assets of the acquiree at the time of liquidation, are measured
at the recognized amounts of the acquiree’s identifiable net assets as of the acquisition date, multiplied by the ratio of the non-controllinginterests as of the acquisition date after the business combination.
*3 Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy between the Company and theacquiree.

(7) 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, 2021, are ¥25,205 million ($227,667 thousand) and ¥5,877 million ($53,085
thousand), respectively. In addition, an impairment loss of ¥10,002 million ($90,344 thousand) anddeferred tax revenue related to the impairment loss of ¥3,147 million ($28,426 thousand) are includedin the aforementioned net loss.
(8) Consolidated net sales and consolidated net income assuming that the business combinations were completed at the beginning of the fiscal year
The following is pro forma information (unaudited) of the consolidated performance of the Company
for the fiscal year ended March 31, 2021, assuming that the acquisition of LINE Corporation and thebusiness combinations of LINE Corporation and Z Holdings Corporation were completed and control
was acquired as of April 1, 2020.
(Millions of yen) (Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Sales (pro forma)�������������������������������������������������������������������

¥5,862,873$52,957,032

Net income (pro forma)���������������������������������������������������������

¥5,043,000$45,551,441(6) Proceeds from acquisition of control over subsidiaries(Millions of yen) (Thousands of U.S. dollars)

Acquisition date(February 28, 2021)

Acquisition date(February 28, 2021)

Cash and cash equivalents held by the acquiree at the time ofacquisition of control�����������������������������������������������������������

¥ 312,791$ 2,825,318

Proceeds in cash from the acquisition of control over thesubsidiary ���������������������������������������������������������������������������

¥ 312,791$ 2,825,318

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11. Cash and cash equivalents
The components of cash and cash equivalents are as follows:

13. Other financial assets
The components of other financial assets are as follows:(Millions of yen)(Thousands of U.S. dollars)(Millions of yen)

As of March 31, 2021

As of March 31, 2021

Cash and demand deposits*1,2����������������

¥ 3,054,482¥ 4,444,917$ 40,149,192

MMF������������������������������������������������������

132,071

123,204

1,112,853

Restricted cash*1, 2������������������������������

480,100$ 4,336,555

Time deposits (maturities of less than three months)

173,850

94,239851,224

Derivative financial assets*3 ����������������

30,087383,315

3,462,334

Other ����������������������������������������������������

8,612

365

3,297

Total ����������������������������������������������

Marketable securities��������������������������

¥ 3,369,015¥ 4,662,725$ 42,116,566

230,234

80,797

729,808

Time deposits(maturities of more than three months)����

9,925

36,315

328,019

Other��������������������������������������������������

19,334

85,630773,462

Allowance for doubtful accounts ��������

–(10,935)(98,772)

Total ����������������������������������������������

¥ 313,487¥ 1,055,222$ 9,531,406

Installment receivables*4���������������������

493,526

481,943

4,353,202

Loan receivables* ������������������������������

233,521390,073

3,523,376

Deposits for banking business��������������

201,770

384,394

3,472,080

Trust accounts in SPACs*6–

327,569

2,958,802

Investments from asset management
subsidiaries*7������������������������������������

–97,023876,371

Lease and guarantee deposits��������������

61,32773,355662,587

Advance payments*8 ��������������������������

44,161––Other��������������������������������������������������

208,929

247,504

2,235,607

Allowance for doubtful accounts*5������

(142,540)(82,599)(746,084)

Total ����������������������������������������������

¥1,100,694¥ 1,919,262$ 17,335,941*1 A subsidiary operating a banking business is obliged to maintain certain amounts of the deposit, which is determined by a fixed ratio
against the deposits it receives from its customers (“the legal reserve requirement”), with the Bank of Japan in accordance with the Act
on Reserve Requirement System in Japan. As of March 31, 2021, cash and cash equivalents include ¥294,165 million ($2,657,077
thousand) (as of March 31, 2020: ¥ 311,897million) of deposits at the Bank of Japan, which is more than the legal reserve
requirement.
*2 Cash and demand deposits as of March 31, 2021 includes money in trust of ¥22,742 million ($205,420 thousand) (as of March 31, 2020:¥3,969 million) to set up for the purchase of treasury stocks by SoftBank Group Corp.

The amount of cash and cash equivalents pledged as collateral for interest-bearing debt or other is
described in “(3) Assets pledged as collateral” under “Note 25. Interest-bearing debt.”

12. Trade and other receivables
The components of trade and other receivables are as follows:(Millions of yen)

As of March 31, 2020

Trade receivables������������������������������������
Installment receivables*��������������������������
Deposit��������������������������������������������������
Deposits for banking business ����������������

As of March 31, 2021

(Thousands of U.S. dollars)

As of March 31, 2021

¥ 1,432,614¥ 1,449,132$ 13,089,441

410,343

398,2933,597,624

113,140

154,867

1,398,853

33,341

108,366

978,828

Other ����������������������������������������������������

110,821

126,289

1,140,719

Allowance for doubtful accounts������������

(27,933)(20,513)(185,286)

Total ����������������������������������������������

¥ 2,072,326¥ 2,216,434$ 20,020,179* Installment receivables represent receivables arising from the Company’s advance payments to dealers on behalf of its customers whochose to purchase mobile devices 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).”

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

As of March 31, 2020

As of March 31, 2021

(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

Current¥

23,907¥

Non-current

5*1 $3.3 billion (¥361,355 million) of restricted cash which is required to be maintained in a segregated custody account before the expected earlytermination date due to exercise of the option to settle the prepaid forward contract using Alibaba shares by cash is included as of March 31,
2021. The details are described in “*5” in “(1) Components of interest-bearing debt” under “Note 25. Interest-bearing debt.”*2 ¥ 111,787 million ($1,009,728 thousand) of restricted cash in the asset management subsidiary is included as of March 31, 2021. The
details are described in “c. Restricted cash” in “(21) Significant accounting policies for the asset management subsidiary” under “Note3. Significant accounting policies.”*3 The increase was primarily due to prepaid forward contracts using Alibaba shares. The details are described in “*5” in “(1) Components
of interest-bearing debt” under “Note 25. Interest-bearing debt.”*4 Installment receivables are described in “Note 12. Trade and other receivables.”*5 Loan receivables and allowance for doubtful accounts as of March 31, 2020 include ¥65,913 million of loan receivable and ¥65,913 millionof allowance for doubtful account related to OneWeb Global Limited, an equity method associated of the Company. In addition, OneWeb
Global Limited was no longer qualified as an equity method associate of the Company for the fiscal year ended March 31, 2021.
*6 T he details are described in “Note 8. Special purpose acquisition companies sponsored by the Company.”*7 The details are described in “a. Investments from the asset management subsidiary” in “(21) Significant accounting policies for the asset
management subsidiary” under “Note 3. Significant accounting policies.”*8 T he amount represents the advance payment related to purchase of WeWork shares.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

159

14. Inventories
The components of inventories are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

Merchandise and finished products ��������

¥ 169,431¥ 109,695

As of March 31, 2021

Other ����������������������������������������������������

15,666

17,135

154,774

Total ����������������������������������������������

¥ 185,097¥ 126,830$ 1,145,606$

990,832

The amount of inventories pledged as collateral for interest-bearing debt or other is described in“(3) Assets pledged as collateral” under “Note 25. Interest-bearing debt.”
Write-downs of inventories recognized as an expense during the fiscal year are as follows:(Millions of yen)

Write-downs of inventories ��������������������

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ 13,841¥ 22,738$205,383

15. Other current assets and other non-current assets
The components of other current assets and other non-current assets are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

16. Disposal group classified as held for sale(1) Sprint
As of March 31, 2020, it was highly probable that Sprint would merge with T-Mobile and would nolonger be a subsidiary of the Company. Accordingly, assets, liabilities, and accumulated other comprehensive income of Sprint were reclassified as a disposal group classified as held for sale. The details aredescribed in “(1) Sprint” under “Note 6. Discontinued operations.”(2) Boston Dynamics, Inc.
As of December 11, 2020, the Company agreed on main terms of a transaction with South Koreabased Hyundai Motor Company and its affiliates (collectively “Hyundai Motor Group”) and Euisun
Chung, Chairman of Hyundai Motor Group, pursuant to which (i) the Company will sell the majority ofits shares held in Boston Dynamics, Inc. (“Boston Dynamics”), to Hyundai Motor Group and Euisun
Chung, and (ii) Hyundai Motor Group and Euisun Chung will subscribe for additional shares of Boston
Dynamics. Upon this agreement, it is highly probable that Boston Dynamics will no longer be a
subsidiary of the Company. Accordingly, assets, liabilities, and accumulated other comprehensive
income of Boston Dynamics were reclassified as a disposal group classified as held for sale. The disposalgroup classified as held for sale was measured at the carrying amount as the consideration from thesale transaction was higher than the carrying amount of Boston Dynamics. The carrying amounts ofassets, liabilities, and accumulated other comprehensive income in Boston Dynamics are ¥38,647
million ($349,083 thousand), ¥11,271 million ($101,807 thousand), and ¥267 million ($2,412
thousand), respectively as of March 31, 2021. In addition, the transaction was completed following
regulatory approval and satisfaction of certain conditions on June 21, 2021.

Current
Tax receivable*������������������������������������

¥ 291,579¥ 282,534$ 2,552,019

Prepaid expense����������������������������������

77,077

86,772

783,777

Contract assets ����������������������������������

65,544

26,672240,918

Other��������������������������������������������������

26,77050,761

458,504

Total ����������������������������������������������

¥ 460,970¥ 446,739$ 4,035,218

125,618

110,167

995,095

Non-current
Long-term prepaid expense ����������������
Other��������������������������������������������������

14,901

27,217

245,840

Total ����������������������������������������������

¥ 140,519¥ 137,384$ 1,240,935* Tax receivable as of March 31, 2020 includes the withholding income tax of ¥167,097 million related to dividends within the groupcompanies and ¥78,801 million related to deemed dividends, respectively. In addition, tax receivable as of March 31, 2021 includes thewithholding income tax of ¥245,053 million ($2,213,468 thousand) related to dividends within the group companies.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information160

17. 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

Machinery andequipment

Furniture, fixtures,and equipment

As of April 1, 2019 ��������������������������������������������������������

¥474,015¥5,797,131¥128,363

As of March 31, 2021����������������������������������������������������

(51,484)
422,531
10,187
2,749(70,372)
29,493(3,449)(148,757)
12,629255,011
20,1704,193(647)(14,761)
42,837213–(792)¥306,224(2,163,285)
3,633,846
25,952–(473,804)
875,539(45,810)(2,340,869)
7,374
1,682,228
32,491––(83,282)
533,35420–
12,008¥2,176,819

Historical cost

Buildings andstructures$2,303,412
182,188
37,874(5,844)(133,330)
386,930
1,924–(7,153)$2,766,001

Effect of retrospective adjustments due to the adoptionof new standards*����������������������������������������������������
As of April 1, 2019 (after adjustments)����������������������������
Purchases��������������������������������������������������������������������
Business combinations������������������������������������������������
Disposals��������������������������������������������������������������������
Transfer of accounts����������������������������������������������������
Exchange differences��������������������������������������������������
Transfer to assets classified as held for sale������������������
Other��������������������������������������������������������������������������
As of March 31, 2020����������������������������������������������������
Purchases��������������������������������������������������������������������
Business combinations������������������������������������������������
Loss of control������������������������������������������������������������
Disposals��������������������������������������������������������������������
Transfer of accounts����������������������������������������������������
Exchange differences��������������������������������������������������
Transfer to assets classified as held for sale������������������
Other��������������������������������������������������������������������������

Land

Construction inprogress

Other

Total

¥1,767,140¥88,312¥387,538¥24,759¥8,667,258(22,932)
105,43150,039–(2,440)5,059(9,779)(2,316)
1,285
147,279
10,937–(3,759)(3,981)
2,034
5,433(1,883)
5,869¥161,929(72,373)
1,694,767
203,051
3,985(845,139)
634,452(26,072)(1,209,051)
5,502
461,495
29,713
19,441(7,759)(42,201)
70,767
354
(382)
1,366
¥ 532,794–
88,312685–(7,141)40(321)(10,603)–
70,9723,220–(65)(1,734)
(1)
139
–
(546)
¥71,985(3)
387,535
578,739
1,871(23,839)(592,426)(6,701)(161,467)(2,359)181,353348,247514(233)(3,790)(203,564)
6,730
–
5,454
¥334,711(65)
24,694
7,891
5
(811)
8,301
(1,137)(2,832)(665)
35,4464,564
519(2,231)(1,128)
3,244
825(4,267)465¥37,437(2,310,142)
6,357,116
876,544
8,610(1,423,546)
960,458(93,269)(3,875,895)
23,766
2,833,784
449,342
24,667(14,694)(150,877)
448,671
13,714(6,532)
23,824¥3,621,899

Telecommunications
equipment

Machinery andequipment

Furniture, fixtures,and equipment

Land

Construction inprogress

Other

Total

$15,194,906
293,478––(752,254)
4,817,577
181–
108,464$19,662,352$1,330,313
98,790–(33,954)(35,959)
18,372
49,074(17,008)53,013$1,462,641$4,168,503
268,386
175,603(70,084)(381,185)
639,2113,198(3,450)12,337$4,812,519$641,062
29,085–(587)(15,663)
(9)
1,256
–
(4,932)$650,212$1,638,091
3,145,579
4,643(2,105)(34,234)(1,838,714)
60,789–49,264$3,023,313$320,172
41,224
4,687(20,151)(10,188)
29,302
7,451(38,543)
4,200$338,154$25,596,459
4,058,730
222,807(132,725)(1,362,813)
4,052,669
123,873(59,001)
215,193$32,715,192(Thousands of U.S. dollars)

As of March 31, 2020����������������������������������������������������
Purchases��������������������������������������������������������������������
Business combinations������������������������������������������������
Loss of control������������������������������������������������������������
Disposals��������������������������������������������������������������������
Transfer of accounts����������������������������������������������������
Exchange differences��������������������������������������������������
Transfer to assets classified as held for sale������������������
Other��������������������������������������������������������������������������
As of March 31, 2021����������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

161

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

Machinery andequipment

Furniture, fixtures,and equipment

As of April 1, 2019 ��������������������������������������������������������

¥(222,229)¥(3,503,743)¥(29,764)¥(829,959)¥

As of March 31, 2021����������������������������������������������������

18,225(204,004)(32,867)(20,465)
49,788413
1,733
83,685738(120,979)(19,549)(47)
596
14,004(4,971)46–
3,081¥(127,819)

1,099,297(2,404,446)(407,937)(4,053)445,143(181,149)
28,593
1,424,636(905)(1,100,118)(123,365)––
77,026(278,504)(15)–(3,007)¥(1,427,983)

7,722(22,042)(12,418)
(156)
2,119
1,189
1,116
1,747
(79)
(28,524)(15,013)
(99)
2,788
3,674
(5)
(1,022)749(681)¥(38,133)

29,231(800,728)(526,302)(1,136)552,678(5,840)11,013474,599(5,857)(301,573)(70,436)(7,461)
7,065
41,617(14,526)
(159)
95
1,408
¥(343,970)

Accumulated depreciation and impairment losses

Buildings andstructures

Telecommunications
equipment

Machinery andequipment$(1,092,754)(176,578)
(425)
5,383
126,493(44,901)415–
27,828$(1,154,539)$ (9,936,934)(1,114,308)––
695,746(2,515,617)(135)–(27,162)$(12,898,410)$(257,646)(135,607)(894)
25,18333,186(45)(9,231)
6,765(6,151)$(344,440)

Effect of retrospective adjustments due to the adoptionof new standards*����������������������������������������������������
As of April 1, 2019 (after adjustments)����������������������������
Depreciation ��������������������������������������������������������������
Impairment loss����������������������������������������������������������
Disposals��������������������������������������������������������������������
Transfer of accounts����������������������������������������������������
Exchange differences��������������������������������������������������
Transfer to assets classified as held for sale������������������
Other��������������������������������������������������������������������������
As of March 31, 2020����������������������������������������������������
Depreciation ��������������������������������������������������������������
Impairment loss����������������������������������������������������������
Loss of control������������������������������������������������������������
Disposals��������������������������������������������������������������������
Transfer of accounts����������������������������������������������������
Exchange differences��������������������������������������������������
Transfer to assets classified as held for sale������������������
Other��������������������������������������������������������������������������

Land

Construction inprogress

Other

Total

(8)

¥ (130)¥(10,721)¥(4,596,554)–(8)–(2,123)
2,123
–
–
–
–
(8)
–
–
1
–
–
–
–
1
¥
(6)

–
(130)
–
(4,306)4,355
2––(5,244)(5,323)
–
–
–
7
5,213
–
–
30
¥ (73)

20(10,701)(4,130)
(4)
516
(12)
302
628
658
(12,743)(5,973)
(127)
1,866
897
(2)
61
598
86
¥(15,337)

1,154,495(3,442,059)(983,654)(32,243)
1,056,722(185,397)
42,757
1,985,295(10,689)(1,569,268)(234,336)(7,734)
12,316137,225(292,795)(1,089)1,442
918¥(1,953,321)

Furniture, fixtures,and equipment

Land

Construction inprogress

Other

Total

$(2,723,990)(636,221)(67,392)
63,815375,910(131,208)(1,436)858
12,718$(3,106,946)

$(72)
–
–
9
–
–
–
–
9
$(54)

$(48,081)–––
63
47,087––272$ (659)$(115,105)(53,952)(1,147)
16,856
8,102
(18)
551
5,401
779
$(138,533)$(14,174,582)(2,116,666)(69,858)
111,246
1,239,500(2,644,702)(9,836)
13,0248,293$(17,643,581)

Growth Assets

Management: The Foundation Supporting Our Growth(Thousands of U.S. dollars)

As of March 31, 2020����������������������������������������������������
Depreciation ��������������������������������������������������������������
Impairment loss����������������������������������������������������������
Loss of control������������������������������������������������������������
Disposals��������������������������������������������������������������������
Transfer of accounts����������������������������������������������������
Exchange differences��������������������������������������������������
Transfer to assets classified as held for sale������������������
Other��������������������������������������������������������������������������
As of March 31, 2021����������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Financial Section

Corporate Information

162

The amount of “Transfer of accounts” includes the amount transferred from “Right-of-use assets” as a result of the termination of lease contracts as lessee and the transfer of the ownership of the assets to the Company.
(Millions of yen)

Historical cost

Buildings and structures��������������������������

Fiscal year ended
March 31, 2020¥

Telecommunications equipment��������������

3,955

Fiscal year ended
March 31, 2021

¥

5,906

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021$

400,192358,224

53,3473,614,777

Furniture, fixtures, and equipment����������

32,35729,275

264,430

Total��������������������������������������������������

¥ 394,536¥ 435,373$ 3,932,554

Accumulated depreciation and impairment losses

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

(Millions of yen)

Buildings and structures��������������������������
Telecommunications equipment��������������

¥(1,823)(182,308)¥(3,913)(281,722)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021$

(35,345)(2,544,684)

Furniture, fixtures, and equipment����������

(21,490)(19,840)(179,207)

Total��������������������������������������������������

¥(205,621)¥(305,475)$(2,759,236)

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

Carrying amounts

Buildings andstructures

Telecommunications
equipment

Machinery andequipment

Furniture, fixtures,and equipment

Land

Construction inprogress

Other

Total

As of March 31, 2020����������������������������������������������������

¥134,032¥582,110¥118,755

As of March 31, 2021����������������������������������������������������

¥178,405¥748,836¥123,796¥159,922¥70,964¥176,030¥22,703¥1,264,516¥188,824¥71,979¥334,638¥22,100¥1,668,578

Carrying amounts

Buildings andstructures

Telecommunications
equipment

Machinery andequipment

Furniture, fixtures,and equipment

Land

Construction inprogress

As of March 31, 2021����������������������������������������������������

$1,611,462$6,763,942$1,118,201

Other

Total

$1,705,573$650,158$3,022,654$199,621$15,071,611(Thousands of U.S. dollars)

Note:
For the fiscal year ended March 31, 2020, as a result of the adoption of IFRS 16 “Leases,” assets recognized under finance leases as a lessee that were previously included in property, plant and equipment, are reclassified to right-of-use assets.

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163

Assets subject to operating leases as a lessor are included in the table above. These assets primarily
comprise leased mobile devices. Changes in the historical cost for “Furniture, fixtures, and equipment”
which includes the assets subject to operating leases as a lessor, are follows:

Assets subject to operating leases as a lessor are included in the table above. These assets primarily
comprise leased mobile devices. Changes in accumulated depreciation and impairment losses for“Furniture, fixtures, and equipment” which includes the assets subject to operating leases as a lessor,
are follows:(Millions of yen) (Thousands of U.S. dollars)Historical cost

As of April 1, 2019 ���������������������������������������������������������������
Purchases���������������������������������������������������������������������������
Disposals���������������������������������������������������������������������������
Transfer of accounts�����������������������������������������������������������
Exchange differences���������������������������������������������������������
Transfer to assets classified as held for sale �����������������������
Other���������������������������������������������������������������������������������
As of March 31, 2020�����������������������������������������������������������
Purchases���������������������������������������������������������������������������
Business combinations�������������������������������������������������������
Disposals���������������������������������������������������������������������������
Transfer of accounts�����������������������������������������������������������
Exchange differences���������������������������������������������������������
Other���������������������������������������������������������������������������������
As of March 31, 2021�����������������������������������������������������������

Furniture, fixtures, and equipment¥1,341,947
173,060(810,422)
599,768(23,502)(1,114,037)
2,412
169,226901
587(10,716)
53,79131
131¥ 213,951

$

–
–
–
–
–
–
–
1,528,552
8,138
5,302
(96,793)
485,873280
1,183$ 1,932,535(Millions of yen) (Thousands of U.S. dollars)

Accumulated depreciation and impairment losses

Furniture, fixtures, and equipment

As of April 1, 2019 ���������������������������������������������������������������
Depreciation ���������������������������������������������������������������������
Impairment loss�����������������������������������������������������������������
Disposals���������������������������������������������������������������������������
Transfer of accounts�����������������������������������������������������������
Exchange differences���������������������������������������������������������
Transfer to assets classified as held for sale �����������������������
Other���������������������������������������������������������������������������������
As of March 31, 2020�����������������������������������������������������������
Depreciation ���������������������������������������������������������������������
Impairment loss�����������������������������������������������������������������
Disposals���������������������������������������������������������������������������
Transfer of accounts�����������������������������������������������������������
Exchange differences���������������������������������������������������������
Other���������������������������������������������������������������������������������
As of March 31, 2021�����������������������������������������������������������

¥ (595,676)(471,401)(685)
516,585(925)
9,280
418,975(2,103)(125,950)(28,193)(74)
10,311(11,651)(23)(1,131)¥(156,711)

$

–
–
–
–
–
–
–
–
(1,137,657)(254,656)(668)
93,135(105,239)(208)(10,216)$(1,415,509)

Assets subject to operating leases as a lessor are included in the table above. These assets primarily
comprise leased mobile devices. Carrying amounts for “Furniture, fixtures, and equipment” which
includes the assets subject to operating leases as a lessor, are follows:(Millions of yen) (Thousands of U.S. dollars)

Carrying amount

Furniture, fixtures, and equipment

As of March 31, 2020�����������������������������������������������������������

¥43,276¥57,240

As of March 31, 2021�����������������������������������������������������������

$–$517,026

Impairment loss is included in “Other loss” in the consolidated statement of income. The details aredescribed in “Note 45. Other loss.”
The amount of property, plant and equipment pledged as collateral for interest-bearing debt or otheris described in “(3) Assets pledged as collateral” under “Note 25. Interest-bearing debt.”
Property, plant and equipment with restrictions on rights are described in “(4) Assets with restrictions
on rights” under “Note 25. Interest-bearing debt.”

SoftBank Group Corp. ANNUAL REPORT 2021

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Financial Section

Corporate Information

16418. Right-of-use assets
The components of the carrying amounts of right-of-use assets are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Telecommunications equipment��������������

¥ 816,546¥ 574,412$ 5,188,438

Real estate fortelecommunications business����������������

219,149

235,736

2,129,311

Offices, warehouses and other properties

229,496

316,4462,858,333

Other ����������������������������������������������������

28,501

20,426

184,500

Total��������������������������������������������������

¥1,293,692¥1,147,020$10,360,582

Carrying amounts

Note:
Right-of-use assets increased by ¥339,381 million ($3,065,495 thousand) for the fiscal year ended March 31, 2021 (for the fiscal year
ended March 31, 2020: ¥217,277 million). Of this amount, the increase due to the consolidation of LINE Group was ¥62,940 million($568,512 thousand).

The components of depreciation of right-of-use assets are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Telecommunications equipment��������������

¥(223,869)¥(179,398)$(1,620,432)

Real estate fortelecommunications business����������������

(48,120)(48,458)(437,702)

Offices, warehouses and other properties(56,163)(65,230)(589,197)

Other ����������������������������������������������������

(17,373)(7,065)(63,815)

Total��������������������������������������������������

¥(345,525)¥(300,151)$(2,711,146)

Depreciation

The Company enters into lease transactions of telecommunications equipment, real estate for thetelecommunications business and offices, warehouses and other properties mainly to facilitate efficientuse of cash.
Many of the lease contracts include an option to terminate or extend the lease in order to enhance
operational flexibility. Most of these options can be exercised by the Company without consent fromthe other party after a certain prior notice period. In determining the lease term, all relevant facts andcircumstances that create an economic incentive not to exercise the option to extend or terminate thelease are considered. In addition, the Company reassesses the lease term upon the occurrence of asignificant event or a significant change in the facts and circumstances that affects that assessment.

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Telecommunications equipment
The Company’s telecommunications equipment leases contain telecommunications machinery andequipment and transmission facilities that are used for the telecommunications business. Most of theselease contracts include an option to terminate or extend the lease. The lease term of these leasetransactions are mainly 5 years or 10 years. The Company may extend a lease of transmission facilities
beyond the initial lease term as needed to provide telecommunication services in a stable manner. In
such a case, the lease term is generally expected to be extended by the same period as the initial termof the contract. The right-of-use assets classified as “Telecommunications equipment” are mainlycomprised of those classified as “Telecommunications equipment” in property, plant and equipment.
Real estate for the telecommunications business
Leases of real estate for the telecommunications business entered into by the Company contain land toplace towers or pillars for the placement of cell site equipment, spaces of buildings and structures forthe placement of cell site equipment and land and buildings or a portion thereof for the placement oftelecommunications equipment. Most of these lease contracts include an option to terminate or extend
the lease. The lease terms of the leases of land and spaces of buildings and structures for the placementof cell site equipment are mainly 10 years to 20 years. The lease terms of other leases are mainly 20
years for land and buildings and 3 years to 27 years for a portion thereof. The Company may extend alease beyond the initial lease term as needed to provide telecommunication services in a stable manner.
In such a case, the lease term is generally expected to be extended by the same period as the initial
term of the contract. The right-of-use assets classified as “Real estate for the telecommunications
business” are mainly comprised of those classified as “Buildings and structures” or “Land” in property,
plant and equipment.
Offices, warehouses and other properties
Leases of offices, warehouses and other properties entered into by the Company mainly contain realestate for offices, warehouses and real estate for stores. Most of these leases include an option toextend the lease that can be exercised by the Company without consent from the other party. The leaseterms of these leases are mainly 5 years to 25 years for offices, 3 years to 11 years for warehouses, and3 years for stores. The Company may extend a lease beyond the initial lease term as needed to continue
its business. The right-of-use assets classified as “Offices, warehouses and other properties” are mainlycomprised of those classified as “Buildings and structures” or “Land” in property, plant and equipment.
Other
Other leases entered into by the Company mainly contain mobile devices for rent and equipment forsolar power generation. The right-of-use assets classified as “Other” are mainly comprised of“Furniture, fixtures, and equipment” and “Other” that are classified as property, plant and equipment.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

165

19. 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, 2019

Intangible assets with finite useful lives

Goodwill

Trademarks

FCC licenses

Other

Customer
relationships

SoftwareTechnologies

Spectrum
migration costs

Management
contracts

Trademarks

FCC licenses

Other

Total

¥4,403,236¥707,508¥4,155,126¥ 12,763¥1,095,413¥1,856,913¥582,291¥189,480¥125,585¥69,623¥89,688¥260,543¥9,144,933

Effect of retrospective adjustments
due to the adoption of new
standards*�����������������������������������

–

–

–

–

–

–

–

–

–

–

–

(48,440)(48,440)

As of April 1, 2019 (after adjustments)

4,403,236

707,508

4,155,126

12,763

1,095,413

1,856,913

582,291

189,480

125,585

69,62389,688212,103

9,096,493

Purchases���������������������������������������

––13,699––56,082

–

–

–

19

–

229,051

298,851

Internal development���������������������

–

–

–

–

–

3,793

–

–

–

–

–

38,102

41,895Business combinations�������������������

233,812

178,720––

322,070

1,813

–

–

–

73

–

341

503,017

Disposals���������������������������������������

–

–

–

–

–

(170,467)–––(57,794)(744)(8,029)(237,034)

Transfer of accounts�����������������������

–

–

–

(5,243)–

188,562

–

–

–

11

–

(183,189)

141

Exchange differences���������������������

(234,923)(13,042)(80,914)(222)(27,432)(8,789)(46,562)–(2,444)(607)(1,749)(3,365)(185,126)

Transfer to assets classified as held
for sale����������������������������������������

(322,978)(645,906)(4,091,250)–(714,251)(343,142)

–

–

–

–

(87,195)(100,591)(5,982,335)

Other���������������������������������������������

(612)

–

3,339

(6)

1,971

6,905

–

–

–

63

–

1,079

13,351

As of March 31, 2020�����������������������

4,078,535

227,280–

7,292

677,771

1,591,670

535,729

189,480

123,141

11,388–

185,5023,549,253

Purchases���������������������������������������

–

–

–

–

–

59,612

–

–

–

20

–

125,838

185,470

Internal development���������������������

–

–

–

–

–

4,255

–

–

–

–

–

33,18737,442Business combinations�������������������

643,702

170,078––

236,931

1,413

–

–

–

8

–

1,609

410,039

Loss of control�������������������������������

(87,625)(10,357)––(23,646)(23,230)

–

–

–

(66)

–

(503)

(57,802)

Disposals���������������������������������������

–

–

–

–

–

(63,998)

–

–

–

–

–

(28,538)(92,536)

Transfer of accounts�����������������������

–

–

–

–

–

118,792

–

3,124

–

11

–

(122,399)(472)

Exchange differences���������������������

77,876

(549)

–

126

3,160

(337)

16,844

–

2,127

263

–

1,397

23,031

Transfer to assets classified as held
for sale����������������������������������������

(9,409)––(7,418)

–

(355)

–

–

–

–

–

(6,754)(14,527)

Other���������������������������������������������

(8,872)

–

–

–

(198)

(1,017)

–

–

–

2

–

1,040

(173)

As of March 31, 2021�����������������������

¥4,694,207¥386,452–¥ 894,018¥1,686,805¥552,573¥192,604¥125,268¥11,626–¥190,379¥4,039,725

Corporate Information

166

SoftBank Group Corp. ANNUAL REPORT 2021

¥

–

¥

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth¥

Financial Section

(Thousands of U.S. dollars)

Intangible assets with indefinite useful lives
Historical cost

As of March 31, 2020

Goodwill

Trademarks

FCC licenses$

Intangible assets with finite useful lives

Other

Customer
relationships

SoftwareTechnologies

Spectrum
migration costs

Management
contracts

Trademarks

FCC licenses

$

Other

Total

$36,839,807$2,052,931–$65,866$6,122,040$14,376,931$4,839,030$1,711,498$1,112,284$102,864–$1,675,566$32,059,010

Purchases���������������������������������������

–

–

–

–

–

538,452

–

–

–

181

–

1,136,645

1,675,278

Internal development���������������������

–

–

–

–

–

38,434

–

–

–

–

–

299,765

338,199

Business combinations�������������������

5,814,308

1,536,248––

2,140,105

12,763

–

–

–

72

–

14,533

3,703,721

Loss of control�������������������������������

(791,482)(93,551)––(213,585)(209,827)

–

–

–

(596)

–

(4,543)(522,102)

Disposals���������������������������������������

–

–

–

–

–

(578,069)

–

–

–

–

–

(257,773)(835,842)

Transfer of accounts�����������������������

–

–

–

–

–

1,073,002–

28,219–99–(1,105,582)(4,262)

Exchange differences���������������������

703,423(4,959)–1,138

28,543(3,044)

152,145–

19,213

2,376–

12,619208,031Transfer to assets classified as held
for sale����������������������������������������

(84,988)––(67,004)–(3,207)

–

–

–

–

–

(61,006)(131,217)

Other���������������������������������������������

(80,138)–––(1,789)(9,187)

–

–

–

17

–

9,395

(1,564)As of March 31, 2021����������������������� $42,400,930$3,490,669–$8,075,314$15,236,248$4,991,175$1,739,717$1,131,497$105,013–$1,719,619$36,489,252

Growth Assets

Management: The Foundation Supporting Our Growth

Corporate Information

167

SoftBank Group Corp. ANNUAL REPORT 2021

$

–

$

Table of Contents

Message from Our CEO

Who We Are$

Financial Section

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 andimpairment losses

Goodwill

Trademarks

As of April 1, 2019¥(81,769)¥(13,647)

FCC licenses

¥

–

Other

¥

–

Intangible assets with finite useful lives
SoftwareTechnologies

Spectrum
migration costs

Management
contracts

Trademarks

FCC licenses

Other

Total

¥(846,385) ¥(1,117,034)¥(110,407)¥(29,958)¥(30,862)¥(12,897)¥(21,596)¥(69,952)¥(2,252,738)

Customer
relationships

Effect of retrospective adjustments
due to the adoption of new
standards*�����������������������������������

–

–

–

–

–

–

–

–

–

–

35,21435,214As of April 1, 2019 (after adjustments)

(81,769)(13,647)––(846,385) (1,117,034)(110,407)(29,958)(30,862)(12,897)(21,596)(34,738)(2,217,524)

Amortization���������������������������������

–

–

–

–

(68,823)(258,081)(40,019)(10,752)(21,097)(48,369)–(8,151)(455,292)

Impairment loss�����������������������������

–

–

–

–

–

(1,154)––(25,710)(1)–(18,126)(44,991)

Disposals���������������������������������������

–

–

–

–

–

161,804–––

56,997744

3,139

222,684

Exchange differences���������������������

1,401

121

–

–

16,400

4,582

10,318

–

725

204

428

495

33,273

Transfer to assets classified as held
for sale����������������������������������������

–

–

–

–

695,734

171,905

–

–

–

–

24,292

7,448

899,379

Other���������������������������������������������

–

–

–

–

–

5,644

–

–

–

(7)

(3,868)(2,579)(810)

As of March 31, 2020�����������������������

(80,368)(13,526)––(203,074) (1,032,334)(140,108)(40,710)(76,944)(4,073)–(52,512)(1,563,281)

Amortization���������������������������������

–

–

–

–

(33,102)(191,215)(38,119)(10,767)(13,319)(1,270)–(3,916)(291,708)

Impairment loss�����������������������������

(12,423)

–

–

–

–

(449)

–

–

–

–

–

(1,836)(2,285)

Loss of control�������������������������������

81,039

5,822

–

–

16,903

16,641

–

–

–

9

–

–

39,375–

Disposals���������������������������������������

–

–

–

–

–

60,792

–

–

–

–

–

20,45081,242

Exchange differences���������������������

1,964

300

–

–

(500)

491

(6,259)–(1,831)

(155)

–

(643)

(8,597)

Transfer to assets classified as held
for sale����������������������������������������

–

–

–

–

–

41

–

–

–

–

–

1,289

1,330

Other���������������������������������������������

–

–

–

–

655

11,493

–

–

–

2

–

419

12,569As of March 31, 2021�����������������������

¥ (9,788)¥ (7,404)¥(219,118) ¥(1,134,540)¥(184,486)¥(51,477)¥(92,094)¥ (5,487)–¥(36,749)¥(1,731,355)

Corporate Information

168

SoftBank Group Corp. ANNUAL REPORT 2021

¥

–

¥

–

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth¥

Financial Section

(Thousands of U.S. dollars)

Intangible assets with indefinite useful lives
Accumulated amortization andimpairment losses

Other

Customer
relationships

SoftwareTechnologies

Spectrum
migration costs

Management
contracts

Trademarks–$(1,834,288)$(9,324,668)$(1,265,541)$(367,717)$(695,005)$(36,790)–(298,997)(1,727,170)(344,314)(97,255)(120,305)(11,471)–(35,372)––(4,056)

–

–

–

–

–

(16,584)(20,640)––

152,678

150,312

–

–

–

81

–

–

355,659

Goodwill

Trademarks

FCC licenses

As of March 31, 2020�����������������������

$ (725,933)$(122,175)

Amortization���������������������������������

–

–

–

Impairment loss�����������������������������

(112,212)––

Loss of control�������������������������������

731,993

52,588$Intangible assets with finite useful lives–$

FCC licenses

$

–

Other

Total

$(474,320) $(14,120,504)(2,634,884)

Disposals���������������������������������������

–

–

–

–

–

549,110

–

–

–

–

–

184,717733,827

Exchange differences���������������������

17,741

2,710

–

–

(4,516)

4,435(56,535)–(16,539)(1,400)–(5,808)(77,653)

Transfer to assets classified as held
for sale����������������������������������������

–

–

–

–

–

370

–

–

–

–

–

11,64312,013

Other���������������������������������������������

–

–

–

–

5,916

103,812

–

–

–

18

–

3,785

113,531

As of March 31, 2021�����������������������

$ (88,411)$ (66,877)$(1,979,207) $(10,247,855)$(1,666,390)$(464,972)$(831,849)$(49,562)

$

–

$

–

$

–

$(331,939) $(15,638,651)

Note:
As a result of the adoption of IFRS 16 “Leases,” “Favorable lease contracts,” that were previously recognized as intangible assets and included in “Other” have been reclassified to relevant right-of-use assets for the fiscal year ended March 31, 2020.

The carrying amounts of goodwill and intangible assets are as follows:(Millions of yen)

Intangible assets with indefinite useful lives
Carrying amounts

Goodwill

Trademarks

As of March 31, 2020�����������������������

¥3,998,167¥213,754¥

As of March 31, 2021�����������������������

¥4,684,419¥379,048¥

Intangible assets with finite useful lives

Other

Customer
relationships

SoftwareTechnologies

Spectrum
migration costs

Management
contracts

Trademarks

Other

Total

–

¥ 7,292¥474,697¥559,336¥395,621¥148,770¥46,197¥7,315¥–¥132,990¥1,985,972–¥¥674,900¥552,265¥368,087¥141,127¥33,174¥6,139¥–¥153,630¥2,308,370

FCC licenses–

FCC licenses(Thousands of U.S. dollars)

Intangible assets with indefinite useful lives
Carrying amounts

Goodwill

Trademarks

As of March 31, 2021����������������������� $42,312,519$3,423,792

SoftBank Group Corp. ANNUAL REPORT 2021

FCC licenses

$

–

$

Intangible assets with finite useful lives

Other

Customer
relationships

SoftwareTechnologies

Spectrum
migration costs

Management
contracts

Trademarks–$6,096,107$4,988,393$3,324,785$1,274,745$299,648$55,451

Growth Assets

Management: The Foundation Supporting Our Growth

Table of Contents

Message from Our CEO

Who We Are

FCC licenses$

Financial Section

Other

Total

$1,387,680$20,850,601

Corporate Information

169–

The Company determined that the trademarks, such as “ZOZO” and “LINE” brands have indefinite
useful lives as they can be legally utilized indefinitely as long as the business continues and management’s current plans are to offer services under these trademarks for the foreseeable future.
FCC licenses are licenses to use a specific frequency spectrum granted by the U.S. Federal
Communications Commission (“FCC”) in Sprint. In addition, as of March 31, 2020, FCC licenses ofSprint were reclassified as a disposal group classified as held for sale. The details are described in “(1)Sprint” under “Note 6. Discontinued operations.”
Customer relationships reflect excessive earning capacity in the future expected from the existingcustomers of the acquiree at the time of the business combinations.
Technologies reflect excessive earning capacity in the future expected from technologies of theacquiree that had been already developed, or was already well-advanced in development, at the time of
the business combinations.
Spectrum migration costs are the amounts that SoftBank Corp. incurred in connection with the
migration of existing users from the frequency spectrum, which SoftBank Corp. acquired, to the otherfrequency spectrum in accordance with the termination promotion measures prescribed in the RadioAct.
Amortization is included in “Cost of sales,” “Selling, general and administrative expenses,” and “Net
income from discontinued operations” in the consolidated statement of income.
Impairment losses are included in “Other loss” in the consolidated statement of income for the fiscal
year ended March 31, 2020 and in “Other loss” and “Net income from discontinued operations” forthe fiscal year ended March 31, 2021. The details are described in “Note 45. Other loss” and “Note 6.
Discontinued operations.”

Increases due to “Business combinations” are as follows:
For the fiscal year ended March 31, 2020
The increase was due to the consolidation of ZOZO, Inc. in November 2019. The details are describedin “ZOZO, Inc.” under “Note 10. Business combinations.”
For the fiscal year ended March 31, 2021
The increase was due to the acquisition of LINE Corporation and the business integration of LINE Groupand Z Holdings Corporation in February 2021. The details are described in “Acquisition of LINE
Corporation and business integration of LINE Group and Z Holdings Corporation” under “Note 10.
Business combinations.”
The carrying amount of internally generated intangible assets included in the intangible assets is asfollows:(Millions of yen)

Software���������������������������������������������������

(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥76,134¥85,195$769,533

The Company has not applied IFRS 16 “Leases” to leases of intangible assets. Therefore, since financelease assets arising from lease transactions of software are recognized as intangible assets. The
intangible assets with restrictions on rights arising from these transactions are described in “(4) Assets
with restrictions on rights b. Assets under lease contracts for intangible assets” under “Note 25.
Interest-bearing debt.”
Research and development costs included in “Cost of sales” and “Selling, general and administrative
expenses” are as follows:(Millions of yen)

Research and development costs ���������������

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥167,095¥178,129$1,608,969

Goodwill acquired as a part of business combinations is allocated to cash-generating units or
cash-generating unit groups that are expected to benefit from the synergies arising from the
combination.

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170

Amounts of goodwill and intangible assets with indefinite useful lives allocated to cash-generating
units or cash-generating unit groups are as follows:
Goodwill(Millions of yen)(Thousands of U.S. dollars)

Reportable segments

Cash-generating units or
Cash-generating unit groups

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

SoftBank

SoftBank* ���������������

¥ 922,459¥ 922,682$ 8,334,225

Yahoo*2 �������������������

16,51915,382

138,940

Marketing solution ���32,62539,088353,067

Shopping �����������������

272,560

272,472

2,461,133

Ikyu �������������������������

72,04472,044

650,745

LINE*3�����������������������

–632,5095,713,206

Finance���������������������

23,50423,504

212,302

Other �����������������������

2,181

2,181

19,699Subtotal�����������������

1,341,892

1,979,862

17,883,317

Arm* �����������������������

2,607,318

2,621,552

23,679,451

Other*4���������������������

30,18783,005

749,751

1

Arm

4

–

Brightstar(discontinued operations) Brightstar*5���������������

18,770––Total�����������������������������������������������������

¥3,998,167¥4,684,419$42,312,519

Intangible assets with indefinite useful lives(Millions of yen)(Thousands of U.S. dollars)

Reportable segments

Cash-generating units or
Cash-generating unit groups

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

SoftBank

Shopping �����������������

¥198,850¥198,850$1,796,134

Ikyu �������������������������

10,12010,12091,410LINE*3�����������������������

–170,078

1,536,248

Subtotal�����������������

208,970379,048

3,423,792

Other �����������������������

7,292

–

–

Brightstar
Brightstar US and Canada(discontinued operations) region*5 �������������������

3,129

–

–

Brightstar Asia andOceania region*5���������

1,655

–

–

Subtotal�����������������

4,784

–

–

Total�����������������������������������������������������

¥221,046¥379,048$3,423,792–*1 SoftBank comprises SoftBank Corp. and others.
*2 Goodwill is allocated to “Yahoo” because the benefits are expected to be realized from Z Holdings Corporation and its group companies
as a whole, not from individual cash-generating units in the SoftBank segment.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO*3 Goodwill is allocated to “LINE” because the benefits are expected to be realized from LINE Corporation and its group companies as awhole, not from individual cash-generating units in the SoftBank segment. The recognition of identifiable assets acquired and liabilities
assumed as of the acquisition date and measurement of their fair values were not complete as of March 31, 2021. The above amounts
are provisional based on the best estimate at present. The details are described in “Acquisition of LINE Corporation and businessintegration of LINE Group and Z Holdings Corporation” under “Note 10. Business combinations.”*4 Following the signing of the definitive agreement with NVIDIA Corporation in order to sell all of its shares in Arm Limited to NVIDIA
Corporation in September 2020, the organizational structure of Arm has been changed from the three-month period ended March 31,
2021. As a result, the Treasure Data business and the other IoT related business, which were included in the Arm segment, have been
excluded from the Arm segment and transferred to “Other.” Goodwill allocated to Arm has been reallocated to Arm, the Treasure Databusiness, and the other IoT related business based on the proportion of the fair value. Goodwill related to the Treasure Data business, andthe other IoT related business included in “Other” is ¥58,452 million ($527,974 thousand) and ¥7,794 million ($70,400 thousand),
respectively, for the fiscal year ended March 31, 2021.
*5 As of September 30, 2020, “Brightstar” is excluded from the reportable segments since Brightstar is reclassified as a disposal groupclassified as held for sale. The details are described in “(2) Brightstar” under “Note 6. Discontinued operations.”

The recoverable amount of each cash-generating unit or cash-generating unit group is measured asfollows:
For the fiscal year ended March 31, 2020
Value in use: Marketing solution, Shopping, Ikyu, and FinanceFair value less disposal cost: S oftBank, Yahoo, Arm, Brightstar, Brightstar US and Canada region,
and Brightstar Asia and Oceania region
For the fiscal year ended March 31, 2021
Value in use: Marketing solution, Shopping, Ikyu, LINE, and FinanceFair value less disposal cost: SoftBank, Yahoo, Arm(1) Measurement method for recoverable amounts of goodwill and intangible assets in Arm
a. For the fiscal year ended March 31, 2020
For Arm, it is measured by discounting the cash flows which are estimated based on the business plans
for the next nine years while taking into account the 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 13.0%. The cash flows from after nine years are assumed on the basis of the growthrate of 21.2% on the 10th year, 18.5% on the 11th year, 15.7% on the 12th year, 13.0% on the 13th
year, and 10.2% on the 14th year. The cash flows from the 15th year onward are assumed to increaseon the basis of the growth rate of 2.0%. Fair value is classified into level 3 as its fair value is measured
using unobservable inputs.
b. For the fiscal year ended March 31, 2021
On September 13, 2020 (U.S. time), the Company entered into a definitive agreement with NVIDIA

Who We Are

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

171

Corporation to sell all of its shares in Arm. This transaction is subject to regulatory approvals (including
those of the U.K., China, the European Union, and the U.S.) and other customary closing conditions,and as of March 31, 2021, there are uncertainties as to whether the closing conditions can be satisfied.
In the impairment test for goodwill of Arm as of March 31, 2021, considering the uncertainties, twopossible scenarios are taken into consideration. The first scenario is that closing conditions including
regulatory approvals are satisfied and all Arm shares are sold. The second scenario is the Company
continues to hold Arm shares because closing conditions are not satisfied. The fair value of the
cash-generating unit including Arm’s goodwill is measured by calculating the fair value for eachscenario and weighing them based on the probability of each scenario.
The fair value based on the scenario that all Arm shares are sold is calculated by considering the
expected contractual proceeds from the transaction with NVIDIA Corporation which is composed of
cash and NVIDIA Corporation shares. The contractual proceeds include contingent consideration whichis received if specific Arm’s financial performance thresholds, which are stipulated in the contract, forthe fiscal year ending March 31, 2022 are achieved (“earnout”).
The fair value based on the scenario that the Company continues to hold the Arm shares is calculatedby discounting the cash flows which are estimated based on the business plans for the next four years
while taking into account the future cash flows that market participants would expect to receive inaccordance with their assumptions discounted to the present value using a post-tax discount rate of
10.0%. The cash flows from after four years are assumed on the basis of the growth rate of 17.5% on
the 5th year to the 8th year, 14.9% on the 9th year, 12.3% on the 10th year, 9.8% on the 11th year,
7.2% on the 12th year, and 4.6% on the 13th year. The cash flows from the 14th year onward areassumed to increase on the basis of the growth rate of 2.0%. Fair value is classified into level 3 as its
fair value is measured using unobservable inputs.
Assumptions used for the fair value measurement in the impairment test for goodwill of Arm include
management’s significant judgments and estimates, including the probability of each scenario, theprobability of earnout in the scenario that all Arm shares are sold, and chip shipment volume for thesmartphone market and average royalty rate, which are basis of the business plan in the scenario that
the Company continues to hold Arm shares.
Occurrence of events which have significant impact to the probability of each scenario, consideration
for changes in precondition for earnout probability in the scenario assuming the sale of Arm shares, andchanges in precondition in business plans in the scenario assuming the continuous holding of Armshares, such as an increase in competitive companies’ market share and a decrease in Arm’s market
share and further spread of the novel coronavirus, could impact the estimated fair value, potentiallyleading to a future material impairment of goodwill.

and external information, using the pre-tax discount rate of 7.3%-17.7% of the cash-generating unit
or cash-generating unit group (for the fiscal year ended March 31, 2020: 7.8%-9.6%). The cash flows
from after five years are assumed to increase on the basis of the growth rate of 0.9% (for the fiscal year
ended March 31, 2020: 0.6%).
For SoftBank and Yahoo, the fair value less disposal cost is measured mainly based on active market
prices.
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.
Other than the above, 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, therecoverable amount is unlikely to fall below the carrying amount, even if major assumptions used in the
impairment test change to a reasonably foreseeable extent.

(2) Measurement method for recoverable amounts of goodwill and intangible assets other than in Arm
Value in use is assessed by discounting to the present value of the estimated cash flows over the next
five years based on the financial budget approved by the management, which reflects past experience

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172

20. Leases(As lessee)(1) Right-of-use assets
The details of the components of the carrying amounts of the right-of-use assets by class of underlying
asset, the components of depreciation by asset class, and an increase in the right-of-use assets, aredescribed in “Note 18. Right-of-use assets.”(2) Lease liabilities
The details of the outstanding balance by year of maturity of lease liabilities are described in “(b)Analysis of financial liabilities by maturities” in “(2) Financial risk management c. Liquidity risk” under“Note 31. Financial instruments.”
The amount of the lease liabilities as of March 31, 2021 is ¥1,035,001 million ($9,348,758 thousand)(as of March 31, 2020: ¥1,140,326 million). The weighted average interest rate for the lease liabilities
as of March 31, 2021 is 1.53 % (as of March 31, 2020: 1.52 %) and their due dates range from April
2021 to March 2051 (as of March 31, 2020: from April 2020 to September 2049).
The details of interest expense on lease liabilities are described in “Note 42. Finance cost.”(3) Total cash outflow
The details of total cash outflow for leases are described in “Note 48. Supplemental information to theconsolidated statement of cash flows.”(4) Leases not yet commenced to which the Company is committed
As of March 31, 2020
Some of the Company’s contracts are not reflected in the measurement of lease liabilities because they
have a fixed-term building lease contract or fixed-term building lease reservation contract, but the leaseterm has not yet started. The underlying asset of the right-of-use assets held under the lease contract isall classified as offices and warehouses, and the lease start date is after April 1, 2020, and the contract
term is 6 to 20 years. The total amount to be paid after April 1, 2020 (or for the fiscal year ending
March 31, 2021) is ¥234,703 million.
As of March 31, 2021
There is no significant impact to the Company from the leases not yet commenced to which theCompany is committed as of March 31, 2021.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(As lessor)
The Company provides device rental services to corporate customers in Japan. Since device leases areprovided on the condition that subscribers maintain telecommunication services with the Company, theamount of revenue from these transactions is allocated between the amount to be received for leases
and other elements based on the fair value of device leases and telecommunication services.
At the end of the lease term, the Company sells leased devices to entities providing trade-in service.
To manage residual asset risk associated with devices, the trade-in prices are obtained from multiple
entities and monitored on a regular basis.
(1) Finance leases
The components of revenue recognized for finance leases are as follows:(Millions of yen)

Selling profit or loss, net ������������������������

(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥ 2,053¥ 622$ 5,618

Finance income on the net investment in
the lease����������������������������������������������

113

126

1,138

Total��������������������������������������������������

¥ 2,166¥ 748$ 6,756

Of this amount, revenue recognized for subleases is ¥1,011 million ($9,132 thousand) for the fiscal year
ended March 31, 2021 (for the fiscal year ended March 31, 2020: ¥975 million).
The maturity analysis of the undiscounted total lease payments and the net investment in the lease at
the end of the fiscal year is as follows:
As of March 31, 2020
(Millions of yen)

Undiscounted totallease payments

Unearned finance income
relating to the lease
payments receivable

Within 1 year ��������������

¥13,908¥ (99)–¥13,809

1 to 2 years������������������

7,936

(53)

–

7,883

2 to 3 years������������������

3,113

(20)

–

3,093

3 to 4 years������������������

567

(3)

–

564

4 to 5 years������������������

153

–

–

153

Over 5 years ����������������

–

–

–

–

Total������������������������

¥25,677¥(175)–¥25,502

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Discounted
unguaranteed
residual value

Financial Section¥¥

Net investment in
the lease

Corporate Information

173

As of March 31, 2021
(Millions of yen)

Undiscounted totallease payments

Unearned finance income
relating to the lease
payments receivable

Discounted
unguaranteed
residual value

Net investment in
the lease(2) Operating leases
Analysis of maturities for operating leases is as follows:
As of March 31, 2020

Within 1 year ��������������

¥ 14,270–¥ 14,166

1 to 2 years������������������

9,031

(58)

–

8,973

2 to 3 years������������������

3,460

(18)

–

3,442

Within 1 year ����������������������������������������������������������������������

¥ 25,429

1 to 2 years��������������������������������������������������������������������������

13,2032 to 3 years��������������������������������������������������������������������������

4,585

3 to 4 years��������������������������������������������������������������������������

427

4 to 5 years��������������������������������������������������������������������������

400

3 to 4 years������������������

¥

(104)

¥

518

(2)

–

516

125

–

–

125

Over 5 years ����������������

–

–

–

–

Total������������������������

¥ 27,404–¥ 27,222

4 to 5 years������������������

¥

(182)

¥

(Thousands of U.S. dollars)

Undiscounted totallease payments

Within 1 year ��������������

$ 128,895

1 to 2 years������������������

81,5742 to 3 years������������������

Unearned finance income
relating to the lease
payments receivable

$

(939)

Discounted
unguaranteed
residual value

$

(524)

–

$ 127,956–

81,050(163)–

31,090

4,679

(18)

–

4,661

4 to 5 years������������������

1,129

–

–

1,129

Over 5 years ����������������

–

–

–

–

Total������������������������

$ 247,530$ (1,644)–$ 245,886$

Over 5 years ������������������������������������������������������������������������

2,657

Total��������������������������������������������������������������������������������

¥ 46,701

Net investment in
the lease

31,2533 to 4 years������������������

(Millions of yen)

As of March 31, 2020

As of March 31, 2021
(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2021

As of March 31, 2021

Within 1 year ����������������������������������������������������������������������

¥ 26,287$ 237,440

1 to 2 years��������������������������������������������������������������������������

15,325

138,425

2 to 3 years��������������������������������������������������������������������������

6,248

56,4363 to 4 years��������������������������������������������������������������������������

471

4,254

4 to 5 years��������������������������������������������������������������������������

465

4,200

Over 5 years ������������������������������������������������������������������������

2,425

21,904

Total��������������������������������������������������������������������������������

¥ 51,221$ 462,659

Lease income (excluding income relating to variable lease payments that do not depend on an index ora rate) for operating leases for the fiscal year ended March 31, 2021 is ¥59,076 million ($533,610
thousand) (for the fiscal year ended March 31, 2020: ¥57,771 million). Of this amount, income fromsubleases is ¥19,601 million ($177,048 thousand) (for the fiscal year ended March 31, 2020: ¥30,531
million).
Changes in historical cost, changes in the accumulated depreciation and impairment losses, and thecarrying amounts of property, plant and equipment underlying operating leases are described in “Note
17. Property, plant and equipment.”

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Financial Section

Corporate Information

17421. Major subsidiaries(1) Organizational structure
The Company’s major subsidiaries are as follows:
Major subsidiaries as of March 31, 2021
Ownership percentage of voting rights (%)

Company Name

Reportable segments

Location

SoftBank Group Capital Limited

Investment Business of Holding Companies

U.K.

SoftBank Group Japan Corporation

Investment Business of Holding Companies

Tokyo

Delaware Project 1 L.L.C.

Investment Business of Holding Companies

U.S.

Delaware Project 2 L.L.C.

Investment Business of Holding Companies

U.S.

Delaware Project 3 L.L.C.

Investment Business of Holding Companies

U.S.

SB Northstar LP*1

Investment Business of Holding Companies

CaymanSB Group US, Inc.

Investment Business of Holding Companies

U.S.

Skywalk Finance GK

Investment Business of Holding CompaniesTokyo

SB Pan Pacific Corporation

Investment Business of Holding Companies

Micronesia

STARFISH I PTE. LTD.

Investment Business of Holding Companies

SingaporeWest Raptor Holdings, LLC

Investment Business of Holding Companies

U.S.

Hayate Corporation

Investment Business of Holding Companies

Micronesia

SB Investment Advisers (UK) Limited

SVF1 and Other SBIA-Managed Funds

U.K.

SoftBank Vision Fund L.P.*1

SVF1 and Other SBIA-Managed Funds

Bailiwick of Jersey

SoftBank Vision Fund II-2 L.P.*1

SVF1 and Other SBIA-Managed Funds

Bailiwick of Jersey

SoftBank Vision Fund (AIV M1) L.P.*1

SVF1 and Other SBIA-Managed Funds

U.S.

SoftBank Vision Fund (AIV M2) L.P.*1

SVF1 and Other SBIA-Managed Funds

U.S.

SoftBank Vision Fund (AIV M3) L.P.*1

SVF1 and Other SBIA-Managed Funds

U.S.

SoftBank Vision Fund (AIV S1) L.P.*1

SVF1 and Other SBIA-Managed Funds

U.S.

SoftBank Corp.*2

SoftBankTokyo

A Holdings Corporation*3

SoftBankTokyo

Z Holdings Corporation

SoftBankTokyo

SB C&S Corp.*4

SoftBank

Tokyo

Wireless City Planning Inc.*5

SoftBank

Tokyo

Yahoo Japan Corporation

SoftBank

Tokyo

LINE Corporation

SoftBank

Tokyo

LINE Financial Asia Corporation Limited

SoftBankChina

ZOZO, Inc.

SoftBank

Chiba

The Japan Net Bank, Limited*6

SoftBankTokyo

ASKUL Corporation*7

SoftBank

Tokyo

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

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Who We Are

Growth Assets

As of March 31, 2020

As of March 31, 2021

100
100
–
–
–
–
100
100
100
100
100
100
100
–
–
–
–
–
–
67.1
–
45.5
100
32.2
100
–
–
50.1
46.6
45.1

100
100
66.7
66.7
66.7
–
100
100
100
100
100
100
100
–
–
–
–
–
–
40.9
50.0
65.3
100
32.2
100
100
100
50.1
46.6
45.0

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

175

Ownership percentage of voting rights (%)

Company Name

Reportable segments

Location

Arm Limited

Arm

U.K.

Arm PIPD Holdings One, LLC

Arm

U.S.

Arm PIPD Holdings Two, LLC

Arm

U.S.

PayPay Corporation

Other

Tokyo

Fortress Investment Group LLC

Other

U.S.

SoftBank Latin America Fund L.P.*1

Other

U.S.

Fukuoka SoftBank HAWKS Corp.

Other

Fukuoka

SBLA Advisers Corp.

Other

U.S.

SB Energy Corp.

Other

Tokyo

Boston Dynamics, Inc.

Other

U.S.

SoftBank Ventures Asia Corp.

Other

South Korea

SoftBank Robotics Group Corp.

Other

Tokyo

As of March 31, 2020

As of March 31, 2021

100
100
100
100
100
–
100
100
100
100
100
74.5

100
100
100
100
100
–
100
100
100
100
100
84.9

*1 Limited partnerships are deemed as structured entities and the voting rights are not described.
*2 The Company does not own the majority of SoftBank Corp.’s voting rights. However, the Company determined that it has substantial control over SoftBank Corp. and included it in the scope of consolidation, considering the fact that the Company holds 40.9% of the voting rights of
SoftBank Corp., the dispersion of voting rights in SoftBank Corp. and the voting patterns exercised in SoftBank Corp.’s past shareholders meetings.
*3 The Company does not own the majority of A Holdings Corporation’s voting rights. However, the Company determined that it has substantial control over A Holdings Corporation and included it in the scope of consolidation, considering the fact that the Company holds 50.0% of thevoting rights of A Holdings Corporation and appoints the majority of the members of A Holdings Corporation’s Board of Directors.
*4 Effective April 1, 2020, SB C&S Corp. and SB C&S Holdings K.K. conducted an absorption-type merger, as SB C&S Corp. the surviving company, and changed its name to SB C&S Corp. on the same date.
*5 The Company does not own the majority of Wireless City Planning Inc.’s voting rights. However, the Company determined that it has substantial 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.
*6 The Company does not own the majority of The Japan Net Bank, Limited’s voting rights. However, the Company determined that it has substantial 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 the voting rights of The Japan Net Bank, Limited and directors from the Company constitute the majority of the members of The Japan Net Bank, Limited’s Board of Directors. Effective April 5, 2021, The Japan Net Bank, Limited changed its name to PayPay Bank Corporation.
*7 The Company does not own the majority of ASKUL Corporation’s voting rights. However, the Company determined that it has substantial control over ASKUL Corporation and included it in the scope of consolidation, considering the fact that the Company holds 45.0% of the voting rights
of ASKUL Corporation, the dispersion of voting rights in ASKUL Corporation and the voting patterns exercised in ASKUL Corporation’s past shareholders meetings.

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Corporate Information176

(2) Summarized consolidated financial information and other information on subsidiaries withsignificant non-controlling interests
a. SoftBank Corp. (SoftBank Corp. and its group companies)

Dividends paid to the non-controlling interests by SoftBank Corp. for the fiscal year ended
March 31, 2021 are ¥187,892 million ($1,697,155 thousand) (for the fiscal year ended March
31, 2020: ¥127,184 million).

(a) General information(Millions of yen)

As of March 31, 2020

As of March 31, 2021

32.9

59.1

Ownership ratio of the non-controlling interests (%)�������������

(Millions of yen)

As of March 31, 2020

Accumulated amount attributable
to the non-controlling interests ofsubsidiary group �����������������������

¥1,041,328

As of March 31, 2021

As of March 31, 2021

¥ 1,951,896$ 17,630,711(Millions of yen)

Net income allocated to the noncontrolling interests of subsidiarygroup ���������������������������������������

(Thousands of U.S. dollars)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ 208,836¥$ 2,712,013

300,247(b) Summarized consolidated financial information(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Current assets�����������������������������

¥3,364,303¥ 4,033,845$ 36,436,139

Non-current assets�����������������������

7,148,056

8,914,010

80,516,755

Current liabilities�������������������������

4,496,609

5,293,636

47,815,336

Non-current liabilities�������������������

3,588,085

4,182,324

37,777,292

Equity�����������������������������������������

2,427,665

3,471,895

31,360,266

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Net sales�������������������������������������

¥4,861,247¥ 5,205,537$ 47,019,574

Net income���������������������������������

506,668

547,720

4,947,340

Comprehensive income���������������

497,048

607,485

5,487,174(Millions of yen)

SoftBank Group Corp. ANNUAL REPORT 2021

(Thousands of U.S. dollars)

Table of Contents

Message from Our CEO(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Net cash provided by operating
activities �����������������������������������

¥1,249,535¥1,338,949$12,094,201

Net cash used ininvesting activities���������������������

(900,145)(511,295)(4,618,327)

Net cash used in financing activities�������������������������������������������������

(143,613)(388,462)(3,508,825)

Effect of exchange rate changes oncash and cash equivalents ���������

(357)

1,892

17,090

Increase in cash and cash
equivalents �������������������������������

¥ 205,420¥ 441,084$ 3,984,139

b. Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3 L.L.C.
Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3 L.L.C. (“Delaware
subsidiaries”) made investments in SB Northstar, the asset management subsidiary founded by
the Company for the fiscal year ended March 31, 2021, and the ownership ratio from Delaware
subsidiaries to SB Northstar is 100%. Investment amounts and ownership ratio from non-controlling interests to each Delaware subsidiaries and investment amounts and ownership ratio
from each Delaware subsidiaries to SB Northstar are the same. Financial figures of each Delaware
subsidiaries are combined and presented as (b) Summarized consolidated financial information.
The financial figures are different from the amounts recorded in the consolidated financial
statements of the Company and the financial figures of SB Northstar as these figures areaffected by borrowing from SoftBank Group Corp., interest expenses, and other.
In addition, non-controlling interests in Delaware subsidiaries are from Son Asset Management
LLC (entity of which Masayoshi Son, Chairman & CEO of SoftBank Group Corp., holds morethan one-half of the voting rights).

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

177

(a) General information(Millions of yen)

As of March 31, 2021

Fiscal year ended
March 31, 2021

Net cash used in operating activities���������������������������

¥ (58,054)$ (524,379)(Thousands of U.S. dollars)

Net cash provided by investing activities �������������������

949,0578,572,460

As of March 31, 2021

Net cash used in financing activities���������������������������

(890,671)(8,045,082)

Ownership ratio of the non-controlling interests (%) �����������
(Millions of yen)

As of March 31, 2021

Accumulated amount attributable
to the non-controlling interests ofsubsidiary group �����������������������

Net loss allocated to the noncontrolling interests of subsidiarygroup ���������������������������������������

33.3

Effect of exchange rate changes on cash and cash
equivalents �������������������������������������������������������������

¥ (184,862)$ (1,669,786)(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (195,386)$ (1,764,845)

Increase in cash and cash equivalents�����������������������������

354

As of March 31, 2021

354

(Thousands of U.S. dollars)$

As of March 31, 2020

As of March 31, 2021

16.3

–

Ownership ratio of the non-controlling interests (%)�������������

3,198

3,637,296

32,854,268

Current liabilities�������������������������

1,393,149

12,583,768

Non-current liabilities�������������������

2,803,190

25,320,116

Equity�����������������������������������������

(558,689)(5,046,418)(Millions of yen)

As of March 31, 2020

Accumulated amount attributable
to the non-controlling interests ofsubsidiary group �����������������������

¥424,746

As of March 31, 2021¥–

(Millions of yen)
(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥

–

$

Fiscal year ended
March 31, 2020

Net loss allocated to the noncontrolling interests of subsidiarygroup ���������������������������������������

–Net loss���������������������������������������

(581,127)(5,249,092)

Comprehensive income���������������

(581,127)(5,249,092)

No dividends were paid to non-controlling interests by Delaware subsidiaries for the fiscal year
ended March 31, 2021.

SoftBank Group Corp. ANNUAL REPORT 2021

3,198

As of March 31, 2021

Non-current assets�����������������������

Net sales�������������������������������������

199$(a) General information(Millions of yen)

¥

22
¥

c. Sprint (Sprint Corporation and its group companies)
On April 1, 2020, the merger of Sprint and T-Mobile US, Inc. was completed and Sprint was nolonger a subsidiary of the Company from the same date. The details are described in “(1) Sprint”
under “Note 6. Discontinued operations.”(b) Summarized consolidated financial information

Current assets�����������������������������

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

Table of Contents

Message from Our CEO¥(7,006)

Fiscal year ended
March 31, 2021¥–

(Thousands of U.S. dollars)

As of March 31, 2021$–

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021$–(b) Summarized consolidated financial information
As of March 31, 2020, Sprint was reclassified as a disposal group classified as held for sale andtherefore the summarized consolidated financial information for the fiscal year ended March 31,
2020 is not described. The details are described in “(1) Sprint” under “Note 6. Discontinued
operations.”
No dividends were paid to non-controlling interests by Sprint for the fiscal year ended March
31, 2020.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

17822. Investments accounted for using the equity method(1) Summarized consolidated financial information and other of the significant associatesa. Alibaba Group Holding Limited(a) General information
Alibaba (registered in Cayman) operates online marketplaces “Taobao Marketplace,” “Tmall,”“Alibaba.com” and other through its group company.
(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 a three-month time lag, as it is impracticable to conform the reporting period of Alibaba tothat of the Company 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 madefor significant transactions or events which occurred during the intervening period and whichwere publicly announced by Alibaba.
(Millions of yen)

(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Net income attributable to ownersof the parent�����������������������������

¥2,546,831¥2,314,329$20,904,426

Other comprehensive income
attributable to owners of
the parent, net of tax�����������������

(11,664)(288,086)(2,602,168)

Total comprehensive income
attributable to owners of
the parent���������������������������������

¥2,535,167¥2,026,243$18,302,258

There were no dividends received from Alibaba for the fiscal year ended March 31, 2020 andthe fiscal year ended March 31, 2021.
The reconciliation between total equity attributable to owners of the parent based on thesummarized consolidated financial information above and the carrying amount of the interests
in Alibaba is as follows:(Thousands of U.S. dollars)(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Current assets�����������������������������

¥ 7,032,939¥10,064,409$ 90,907,858

Non-current assets�����������������������

12,600,850

16,485,249

148,904,787

Total equity attributable to ownersof the parent�����������������������������

Current liabilities�������������������������

4,016,839

6,336,555

57,235,616Interest ratio (%)�������������������������

25.28

25.02

25.02

Non-current liabilities�������������������

3,057,346

3,410,656

30,807,117

Interests of the Company�������������

2,908,605

3,838,395

34,670,716

Total equity attributable toowners of the parent �������������

11,505,557

15,341,307

138,572,008

Goodwill�������������������������������������

145,258

160,545

1,450,140

Non-controlling interests ���������

1,054,047

1,461,140

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥ 11,505,557¥ 15,341,307$ 138,572,008

Equity(Millions of yen)

13,197,904

Accumulated amortization of
goodwill on the IFRSs transition
date*1���������������������������������������

(5,454)(5,938)(53,636)(Thousands of U.S. dollars)

Warrants�������������������������������������

(146,357)(188,631)(1,703,830)

Other*2���������������������������������������

(41,132)(52,957)(478,339)

Carrying amount of the interests in
Alibaba�������������������������������������

¥ 2,860,920¥ 3,751,414$ 33,885,051

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Net sales�������������������������������������

¥ 7,636,828¥10,122,635$ 91,433,791

Net income���������������������������������

2,412,694

2,190,823

19,788,845

Other comprehensive income,net of tax ���������������������������������

(7,568)(308,081)(2,782,775)

Total comprehensive income �������

¥ 2,405,126¥ 1,882,742$ 17,006,070*1 G oodwill recorded by Alibaba from business combinations before the IFRSs transition date was amortized over the periods inwhich economic benefits were reasonably expected to be realized, when the Company applied the equity method to theinvestment 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 O
 ther relates to adjustments mainly associated with organization restructurings such as the transfer of Taobao shares in 2005
and the purchase 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 ¥16,912,196 million($152,761,232 thousand) as of March 31, 2021 (as of March 31, 2020: ¥14,103,354 million).

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Financial Section

Corporate Information179

b. WeWork Inc.
In accordance with the agreement between the Company and WeWork dated on October 22,
2019, WeWork’s corporate governance was changed on October 30, 2019 and the Company
was given the right to nominate five out of the 10 directors on WeWork’s Board of Directors. As
a result, WeWork became an associate of the Company as of such date.
The Company will not hold a majority of voting rights at any general shareholders meeting
nor Board of Directors meeting and cannot control WeWork due to provisions of WeWork’s
certificate of incorporation and shareholders agreement. There is no other party acting as theCompany’s de facto agent.
Details and progress of the agreement between the Company and WeWork dated October22, 2019 and for the fiscal year ended March 31, 2021 are described in “(3) Details and progressof the agreement between the Company and WeWork.”(a) General information
WeWork (registered in the U.S.) operates the flexible office business “WeWork” all over theworld mainly in North America, Europe, and China.
(b) Ownership percentage of voting rights
Ownership percentage of voting rights held by the Company is 49.9% as of March 31, 2021.
The Company owns 65.28% of shares issued by WeWork (as of March 31, 2020: 20.12% on avoting right basis before dilution). Ownership percentage of voting rights held by the Company
is restricted as 49.9% due to provisions of WeWork’s certificate of incorporation and shareholders agreement.
(c) Measurement
The Company’s wholly-owned subsidiary other than SVF1 (herein “Investments in WeWork,” thewholly- owned subsidiaries of the Company that invest in WeWork or are parties to contracts
with WeWork are collectively referred to as the “WeWork Investment Subsidiary”) and SVF1
have invested in WeWork. Shares held by SVF1 are measured by fair value and accounted for as
financial instruments at FVTPL. Preferred shares held by the WeWork Investment Subsidiary aremeasured at fair value and accounted for as financial instruments at FVTPL and ordinary sharesare accounted for under equity method. In addition, the Company’s holding of common sharesmeasured at equity method is 6.11% as of March 31, 2021 (as of March 31, 2020: 2.75%).

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(d) Summarized consolidated financial information
IFRSs summarized consolidated financial information for WeWork is as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Current assets�����������������������������

¥ 238,250¥ 141,688$ 1,279,812

Non-current assets�����������������������

3,183,818

2,346,072

21,191,148

Current liabilities�������������������������

531,300

385,251

3,479,821

Non-current liabilities�������������������

2,684,816

2,970,108

26,827,820

Total equity attributable toowners of the parent �������������

107,414(903,327)(8,159,398)

Non-controlling interests ���������

98,53835,728322,717

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Net sales�������������������������������������

¥ 186,311¥ 313,972$ 2,835,986

Net loss���������������������������������������

(214,201)(569,223)(5,141,568)

Equity(Millions of yen)(Thousands of U.S. dollars)

Other comprehensive income, netof tax ���������������������������������������

6,234(20,579)(185,882)

Total comprehensive income �������

¥(207,967)¥(589,802)$(5,327,450)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Net loss attributable to owners of
the parent���������������������������������

¥(161,229)¥(529,578)$(4,783,470)

Other comprehensive income
attributable to owners of theparent, net of tax�����������������������

5,380(19,199)(173,417)

Total comprehensive income
attributable to owners of theparent���������������������������������������

¥(155,849)¥(548,777)$(4,956,887)(Millions of yen)(Thousands of U.S. dollars)

WeWork became an associate of the Company on October 30, 2019, therefore, information
related to comprehensive income from October 30, 2019 to March 31, 2020 is disclosed for the
fiscal year ended March 31, 2020.
There was no dividend received from WeWork for the fiscal years ended March 31, 2020 andthe fiscal year ended March 31, 2021.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

180

The reconciliation between total equity attributable to owners of the parent based on thesummarized consolidated financial information above and the carrying amount of the interests
in WeWork (an investment amount accounted for using the equity method under the Company’s
consolidated financial statements) is as follows:(Millions of yen)

(2) Aggregated information on investment in insignificant associates and joint ventures
The aggregated information of insignificant investments accounted for using the equity method, otherthan (1) above (total amount of the Company’s interests), is as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Total equity attributable to ownersof the parent�����������������������������

¥107,414¥(903,327)$(8,159,398)

Interest ratio (%)�������������������������

2.75

6.11

6.11

Interests of the Company �����������

2,954(55,193)(498,537)

As of March 31, 2021

As of March 31, 2021

$4,721,281

Carrying amount of the interests
Associates������������������������������������������

¥366,495¥522,693

Joint ventures ������������������������������������

11,45356,680511,968

Total��������������������������������������������������

¥377,948¥579,373$5,233,249

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

$506,540(Millions of yen)

Equivalent amount of goodwill
relating to additional purchase ofcommon shares�������������������������

–98,575890,389

Impairment loss���������������������������

–(54,277)(490,263)

Reversal of impairment loss���������

–21,634

195,411

Consolidation adjustments andother adjustments���������������������

(1,461)

8,445

76,282Carrying amount of the interests in
WeWork�����������������������������������

¥ 1,493¥ 19,184$ 173,282(Thousands of U.S. dollars)

As of March 31, 2020

(Thousands of U.S. dollars)

Net income (loss)
Associates������������������������������������������

¥(15,709)¥56,079

Joint ventures ������������������������������������

(1,281)(642)(5,799)Total��������������������������������������������������

¥(16,990)¥55,437$500,741
60,762Other comprehensive income, net of tax
Associates������������������������������������������

(1,209)

6,727

Joint ventures ������������������������������������

65

118

1,066

Total��������������������������������������������������

¥ (1,144)¥ 6,845$ 61,828
567,302

Total comprehensive income

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Associates������������������������������������������

(16,918)

62,806

Joint ventures ������������������������������������

(1,216)(524)(4,733)

Total��������������������������������������������������

¥(18,134)¥62,282$562,569

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181

(3) Details and progress of the agreement between the Company and WeWork
Details and progress of the agreements between the Company and WeWork dated October 22,
2019 and for the fiscal year ended March 31, 2021 (specifically, the master transaction agreement,(the “MTA”)) are as follows:In addition, on March 25, 2021, WeWork entered into a definitive agreement with BowX
Acquisition Corp. (“BowX”), a special purpose acquisition company (SPAC), providing for a businesscombination with BowX that is expected to result in WeWork becoming publicly listed on the Nasdaq
Capital Market or the New York Stock Exchange (NYSE) (the “Merger Transaction”). The Merger
Transaction is expected to be completed in July to September 2021, subject to BowX stockholder’sapproval and the satisfaction of other customary closing conditions. After the completion of the
Merger Transaction, the Company’s economic ownership of the newly established company by themerger (the “Merged Company”) (fully diluted, including the stake held by SVF1) is expected to beapproximately 56%. Since the Company will not hold a majority of voting rights at any generalshareholders meeting nor Board of Directors meeting and cannot control the Merged Company due
to provisions of the Merged Company’s certificate of incorporation, the Merged Company will not be
a subsidiary of the Company and instead it will be an associate of the Company.
a. Exercise price reduction of existing commitment and early payment
Pursuant to the MTA, on October 30, 2019, the WeWork Investment Subsidiary paid the fullamount of $1.5 billion for the existing commitment that was originally expected to beinvested in April 2020, by lowering the exercise price from $110.00 per share to $11.60 per
share. Of this advance payment for investment, a $200 million portion was converted into
preferred stock of WeWork in November 2019 while the remaining $1.3 billion portion wasconverted into preferred stock of WeWork in April 2020. The remaining $1.3 billion portion asof March 31, 2020 was recorded as financial instruments at FVTPL under “Other financial
assets (non-current)” in the consolidated statement of financial position as of March 31, 2020.
b. Tender Offer
Pursuant to the MTA, the WeWork Investment Subsidiary had agreed to commence a tender
offer (the “Tender Offer”) worth up to $3 billion to purchase WeWork’s common stock andpreferred stock from certain shareholders of WeWork, other than the Company, at a price of$19.19 per share. The WeWork Investment Subsidiary launched the Tender Offer in
November 2019, but the WeWork Investment Subsidiary withdrew and terminated theTender Offer in April 2020 asserting certain closing conditions were not satisfied. In
response, in April 2020 and May 2020, under the direction of the Special Committee of theBoard of Directors of WeWork, lawsuits (the “Lawsuits”) were brought against the Company
and SVF1 by WeWork, Adam Neumann, the founder and former CEO of WeWork, and We
Holdings LLC, which he serves as the managing member, seeking closing of the Tender

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Offer, or, in the alternative, compensation for damages arising from the termination of theTender Offer.
The Company entered into a settlement agreement (the “Settlement Agreement”)
regarding the Lawsuits with WeWork, We Holdings LLC, and Adam Neumann in February
2021. Under the Settlement Agreement, the WeWork Investment Subsidiary agreed topurchase common stock and preferred stock of WeWork from We Holdings LLC at a price of$19.19 per share for a total amount of $578 million in February 2021. Under the Settlement
Agreement, the WeWork Investment Subsidiary also launched a tender offer for up to $922
million in March 2021 to purchase common stock and preferred stock of WeWork fromcertain shareholders of WeWork, other than the Company and We Holdings LLC, at a priceof $19.19 per share, and completed it in April 2021. Each of the Lawsuits has been
dismissed with prejudice.
The Company recorded an impairment loss of ¥54,277 million ($490,263 thousand) forthe purchase of shares from We Holdings LLC, representing the difference between theacquisition cost and the fair value at the time of the acquisition. Subsequently, the Company
recorded a gain on reversal of impairment loss of ¥21,634 million ($195,411 thousand),reflecting an increase in the fair value of its holdings of common stock following theconclusion of the Merger Transaction between WeWork and BowX.
The tender offer launched, pursuant to the Settlement Agreement, in March 2021 wasconsidered as a forward contract and accounted for as a derivative. The difference of¥76,823 million ($693,912 thousand) between the fair value of the common stock andpreferred stock scheduled for acquisition and the planned acquisition amount was recorded
as “Derivative financial liabilities (current)” in the consolidated statement of financial position
as of March 31, 2021. Moreover, the difference of ¥17,594 million ($158,920 thousand)between the fair value of the common stock scheduled for acquisition and the planned
acquisition amount was recorded as “Derivative loss (excluding gain (loss) on investments)”
and the difference of ¥56,127 million ($506,973 thousand) between the fair value of thepreferred stock scheduled for acquisition and the planned acquisition amount was recorded
as a loss under “Gain on investments at Investment Business of Holding Companies” in the
consolidated statement of income for the fiscal year ended March 31, 2021.

c. Credit support and notes purchase
The Company agreed in the MTA to provide to WeWork (a) credit support for a $1.75
billion letter of credit facility provided by financial institutions, and the WeWork Investment
Subsidiary agreed to purchase or arrange to purchase (b) up to $2.2 billion in unsecured
notes and (c) up to $1.1 billion in senior secured notes to be issued by WeWork.
Regarding (a), in December 2019, the Company entered into an agreement with financial

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Financial Section

Corporate Information182

institutions that designates the Company as a co-obligor with WeWork, while the twoparties separately agreed that the Company has the right of indemnification against
WeWork if and whenever the Company services such obligations. Regarding (b), theWeWork Investment Subsidiary entered into an agreement with WeWork in December 2019.
As of March 31, 2021, the WeWork Investment Subsidiary has purchased $1.8 billion of theunsecured notes. In exchange for entering into such agreements regarding (a) and (b), theCompany received warrants that are exercisable for WeWork preferred stock at an exercise
price of $0.01 per share as consideration. The fair value of the warrants was recognized for¥94,195 million as “Derivative assets” when the Company entered into the agreement and¥76,259 million, the difference between the fair value as of March 31, 2020, was recorded
as a loss under “Gain on investments at Investment Business of Holding Companies” in the
consolidated statement of income for the fiscal year ended March 31, 2020. As of March
31, 2021, the Company has acquired 130 million shares of preferred stock of the 136
million shares available under the warrants.
Regarding (c), the Company’s obligation pursuant to the MTA to purchase or arrange topurchase such debt ceased to exist upon the termination of the Tender Offer as it was
subject to and conditioned upon the completion of the Tender Offer. However, the WeWork
Investment Subsidiary and WeWork entered into an agreement regarding (c) in August2020. As of March 31, 2021, none of the secured senior notes had been issued.
Moreover, in conjunction with WeWork’s agreement relating to the Merger Transaction
with BowX on March 25, 2021, the Company has also agreed with WeWork and BowX
regarding the conversion and exchange of WeWork preferred stock held by the WeWork
Investment Subsidiary into common stock of the Merged Company, and in addition,
regarding (a), a commitment to extend credit support by the Company as co-obligor to thecredit facility until February 2024, subject to the acceptance of the extension by the financial
institutions as a result of the negotiation between them and the Company together with
WeWork, and for (c), an amended senior secured notes facility of up to $550 million to bepurchasable by the WeWork Investment Subsidiary until February 12, 2023 or for a period of
18 months from the closure of the Merger Transaction, whichever comes first. As consideration for this conversion of preferred stock into common stock and commitment to extend
credit support by the Company as co-obligor to the credit facility as in (a), the Company
plans to acquire warrants that are exercisable for common stock of the Merged Company atthe price of $0.01 per share, subject to appropriate adjustment, when each is executed
upon the conversion and exchange and upon the conclusion of the agreement modificationof (a), as applicable.
The (a) credit support for a $1.75 billion letter of credit facility provided by financial
institutions to WeWork corresponds to a financial guarantee contract and the (b) purchaseof up to $2.2 billion in unsecured notes to be issued by WeWork corresponds to a

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commitment to provide a loan at a below market interest rate (“loan commitment”). Uponthe execution of the contract, the Company recorded an allowance for loss on valuation for
expected credit losses, ¥39,107 million for the financial guarantee contract and ¥55,088
million for the loan commitment, as “Other financial liabilities (current)” in the consolidated
statement of financial position. The allowance for expected credit losses for the financial
guarantee contract and loan commitment is measured at the higher of either the initialrecognition amount of financial liabilities less accumulated amortization or the amount of
the expected credit losses.
As of March 31, 2020, the expected credit losses for the financial guarantee contract andloan commitment exceeded the initially recognized amount less accumulated amortization,and the Company therefore recognized provisions for loss allowance on valuation of¥52,349 million and ¥90,210 million under “Other loss” in the consolidated statement ofincome for the fiscal year ended March 31, 2020. As of March 31, 2021, the Company
recorded allowance for financial guarantee contract losses of ¥24,381 million ($220,224
thousand) (as of March 31, 2020: ¥89,202 million) and allowance for unused loan commitment losses of ¥10,218 million ($92,295 thousand) (as of March 31, 2020: ¥145,133
million) as “Other financial liabilities (current)” in the consolidated statement of financial
position.
d. Exchange of WeWork China and WeWork Asia shares for preferred stock of WeWork
It was agreed in the MTA that all of SVF1’s interests in WeWork Greater China Holding
Company B.V. (“WeWork China”) and WeWork Asia Holding Company B.V. (“WeWork
Asia”) were to be exchanged for preferred stock of WeWork. Among these, WeWork Asia
shares were exchanged for WeWork’s preferred stock at $11.60 per share in April 2020.
Meanwhile, the exchange of WeWork China shares for WeWork’s preferred stock wascanceled.

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183

23. Structured entities(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 forinvestment, and designed 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.
The details for major consolidated structured entities are described in “*1” in “(1) Organizational
structure” under “Note 21. Major subsidiaries.”
In addition, please refer to “a. Consolidation of SVF1 and SVF2 by the Company” in “(20) Significant
accounting policies for the SVF1 and Other SBIA-Managed Funds segment” under “Note 3. Significant
accounting policies” for the following entities that comprise the SVF1 and SVF2 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.
SoftBank Vision Fund II-2 L.P.		

Bailiwick of Jersey
U.S.
U.S.
U.S.
U.S.
Bailiwick of Jersey(2) Unconsolidated structured entities
The Company owns investment funds, which are structured entities that are not consolidated by theCompany. These funds are structured as venture funds in the form of partnerships, limited partnerships
for investment and investment trusts, and designed so that the voting rights or similar rights are notdeterminant in evaluating control. Third parties control the operation of these structured entities. The
funds are financed by the subscription by its partners.
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:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥1,615,039¥2,302,393$20,796,613

The carrying amount of the investment
recognized by the Company��������������

170,916

287,6902,598,591

Commitment contracts related toadditional investment������������������������

111,763

76,909694,689

Total ������������������������������������������������

¥ 282,679¥ 364,599$ 3,293,280

Total assets of the unconsolidated
structured entities (aggregate amount)��
The maximum loss exposure of the Company

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 othersignificant support to the consolidated structured entities without contractual obligation.

The investment recognized by the Company is included in “Investments accounted for using theequity method” or “Investment securities” in the consolidated statement of financial position. There isno liability to recognize related to unconsolidated structured entities.
The potential maximum loss exposure incurred from the involvement with the structured entities islimited 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.

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(2) Reconciliation of the statutory effective tax rate and actual tax rate
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.

24. Income taxes(1) Tax expenses
The components of income tax expenses are as follows:(Millions of yen)(Thousands of U.S. dollars)(Unit :%)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Current tax expenses����������������������������

¥(294,983)¥ (205,754)$ (1,858,495)

Statutory effective tax rate* ��������������������������������������������������������

31.5

31.5

Deferred tax expenses��������������������������

(497,672)(1,097,414)(9,912,510)

Effect from profit or loss that does not impact taxable gain or loss

852.5(21.1)

Total������������������������������������������������

¥(792,655)¥(1,303,168)$(11,771,005)

Aggregation of income earned by controlled foreign companies��

1.3

6.9

Income and loss on equity method investments������������������������

23.5

4.3

Distribution from SVF1 and SVF2����������������������������������������������

(237.1)

3.8

Temporary difference associated with investment in subsidiaries

47.5

(1.7)

Difference of tax rate adapted by subsidiaries��������������������������

82.3

(1.1)

Taxation at foreign locations����������������������������������������������������

59.6

(0.1)

Effect from evaluating recoverability of deferred tax assets ������

752.1

0.1

Other ��������������������������������������������������������������������������������������

(29.1)

0.4

Actual tax rate�����������������������������������������������������������������������

1,584.1

23.0

Current tax expenses include tax loss previously unrecognized, tax credit and the benefit arising fromcertain temporary differences in the previous years. The reduction of current tax expense for the fiscal
year ended March 31, 2021 was ¥367,486 million ($3,319,357 thousand) (for the fiscal year ended
March 31, 2020: ¥77,440 million).
The reduction of current tax expense for the fiscal year ended March 31, 2021 is mainly due to thepartial sale of SoftBank Corp. shares (ownership percentage 5.0%) held by SoftBank Group Japan
Corporation, a wholly-owned subsidiary of the Company, in May 2020, as part of “SoftBankannounces ¥4.5 trillion ($41 billion) program to repurchase shares and reduce debt” announced on
March 23, 2020 (the “¥4.5 trillion program”) and the partial sale of SoftBank Corp. shares (ownership
percentage 21.7%), in September 2020, in order to further enhance its cash reserves.
¥1,526,867 million ($13,791,591 thousand) of proceeds was received due to the transfers in May
2020 and in September 2020. SoftBank Corp. remains a subsidiary as of March 31, 2021. Accordingly,¥460,067 million ($4,155,605 thousand), the equivalent amount of income taxes for the gain on salesof SoftBank Corp. shares on a consolidation basis, is deducted from capital surplus as “Changes ininterests in subsidiaries.”
As a result of the transaction, a loss carryforward, for which deferred tax asset was not recognized in
SoftBank Group Japan Corporation, was utilized and a credit of income taxes (profit) was recorded for¥159,802 million ($1,443,429 thousand).
Furthermore, a deductible temporary difference, associated with an investment in SoftBank Corp.,
for which a deferred tax asset was not recognized, was reversed and a credit of income taxes (profit)
was recorded for ¥96,258 million ($869,461 thousand).

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

* 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, 2021 based on these taxes is 31.5% (for the fiscal year ended March 31, 2020: 31.5%), except for foreignsubsidiaries that are subject to income taxes at their respective locations.

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 decrease ofdeferred tax expenses for the fiscal year ended March 31, 2021 was ¥10,230 million ($92,404
thousand) (for the fiscal year ended March 31, 2020: none).

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(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, 2020
(Millions of yen)

As ofApril 1, 2019

Recognizedin profit or loss

Recognized inothercomprehensive
incomeBusiness
combination*1

Exchangedifferences

Effect of retrospective
adjustments due toadoption of new
standards¥

Transfer toliabilities relating
to assets classified
as held for sale

Other

As of
March 31,2020Deferred tax assets
Property, plant and equipment����������������������

123,666¥ (76,619)

944¥ (1,640)–¥ (9,760)¥ 36,699

Accrued expenses and other liabilities ����������

¥178,415

25,512

¥

5,982

–

¥

1,887

(1,534)(30,125)108¥(79,283)(6,445)

94,409Net operating loss carryforwards and tax credit
carryforwards*2 ������������������������������������������

234,405

217,393–41(4,317)–(420,837)

4,148

30,833

Temporary difference associated withinvestment in subsidiaries, associates andjoint ventures*3 ������������������������������������������

371,802(345,672)

7

–

(156)

–

–

(4,017)

21,964

Unrealized gain ��������������������������������������������

101,381(11,004)

–

–

–

–

–

–

90,377

Allowance for doubtful accounts ������������������

31,471

3,566

–

–

(296)

–

(14,652)

90

20,179Other������������������������������������������������������������

109,306(36,834)

(112)

6,181

(942)

29,769(36,162)

27,044

98,250Total ��������������������������������������������������������

1,150,446(223,658)

5,877

9,053

(8,885)(248)(550,934)

11,060392,711

Deferred tax liabilities
FCC licenses��������������������������������������������������

(987,022)(9,322)––

19,219–977,206(81)–

Customer relationships����������������������������������

(51,016)

15,188–(96,785)

2,053

–

4,416

(86)

(126,230)

Trademarks ��������������������������������������������������

(190,285)

12,372–(53,473)

3,506–

162,299–(65,581)Technologies������������������������������������������������

(101,965)(1,193)

–

–

8,321

–

–

–

(94,837)

Temporary difference associated withinvestment in subsidiaries, associates andjoint ventures*4 ������������������������������������������

(305,212)(144,064)

53,294

–

1,278

–

–

13,267(381,437)

Contract assets and costs to obtain contracts���������

(120,931)(14,392)

–

–

863

–

50,395–(84,065)

Investment securities ������������������������������������

(53,495)

16,529

4,805

(25)

563

–

–

(480)

(32,103)

Other������������������������������������������������������������

(144,649)(36,757)(7,770)

(526)

1,972

(2,599)103,452(11,426)(98,303)

Total ��������������������������������������������������������

(1,954,575)(161,639)

50,329(150,809)

37,775(2,599)1,297,768

1,194(882,556)

Net ������������������������������������������������������

¥ (804,129)¥ (385,297)¥ 56,206¥(141,756)¥ 28,890¥ (2,847)¥ 746,834¥ 12,254¥(489,845)*1 The increase from “Business combination” is mainly due to the consolidation of ZOZO, Inc. The details are described in “ZOZO, Inc.” under “Note 10. Business combinations.”*2 The Company recognizes deferred tax assets related to the entities that recorded a loss in either the fiscal year ended March 31, 2019 or 2020, in the amount of ¥21,327 million for the fiscal year ended March 31, 2020. Deferred tax assets are recognized to the extent that it is probablethat taxable income will be available against which deductible temporary differences, net operating loss carryforwards and tax credit carryforwards can be utilized.
*3 The decrease in deferred tax assets from “Temporary difference associated with investment in subsidiaries, associates and joint ventures” as of March 31, 2020 is mainly due to ¥361,752 million of reversal of deferred tax assets which was recorded for the previous fiscal year related tothe settlement of the variable prepaid forward contract using Alibaba shares. The details are described in “*2” in “(1) Gain and loss on investments at Investment Business of Holding Companies” under “Note 41. Gain on investments.”*4 The increases in deferred tax liabilities from “Temporary difference associated with investment in subsidiaries, associates and joint ventures” as of March 31, 2020 are mainly due to the increase of ¥250,404 million in relation to the recognition of deferred tax liabilities on temporary
differences on investment in Alibaba shares and the decrease of ¥119,306 million in relation to the reversal of deferred tax liabilities recognized in the previous fiscal year due to the decrease in reserved profit of SVF1.

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For the fiscal year ended March 31, 2021
(Millions of yen)

Deferred tax assets
Property, plant and equipment��������������������������������������������������������������������
Accrued expenses and other liabilities ��������������������������������������������������������Net operating loss carryforwards and tax credit carryforwards*2��������������������
Temporary difference associated with investment in subsidiaries, associates
and joint ventures��������������������������������������������������������������������������������������
Unrealized gain ������������������������������������������������������������������������������������������
Allowance for doubtful accounts ����������������������������������������������������������������
Other����������������������������������������������������������������������������������������������������������
Total ������������������������������������������������������������������������������������������������������
Deferred tax liabilities
Customer relationships��������������������������������������������������������������������������������
Trademarks ������������������������������������������������������������������������������������������������
Technologies����������������������������������������������������������������������������������������������
Temporary difference associated with investment in subsidiaries, associates
and joint ventures*3����������������������������������������������������������������������������������
Contract assets and costs to obtain contracts ����������������������������������������������
Investment securities*4��������������������������������������������������������������������������������
Other����������������������������������������������������������������������������������������������������������
Total ������������������������������������������������������������������������������������������������������
Net ����������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

As ofApril 1, 2020

Recognizedin profit or loss

¥ 36,699
94,40930,833¥(5,072)
14,99145,164

Recognizedin othercomprehensive
income¥Business
combination*1

–
18
–

¥

13,491
12,256595

Exchangedifferences

¥

22
402
1,420

Other

¥

11
1,199
4,294

As of
March 31, 2021¥

45,151
123,275
82,306

21,96490,377
20,17998,250392,711(19,445)(11,160)(1,480)107
23,105

13
–
–
(394)
(363)

4,526
–
383
2,550
33,801

(8)
–
(86)
1,112
2,862

(1,613)20(1,452)(7,961)(5,502)

5,437
79,237
17,544
93,664
446,614(126,230)(65,581)(94,837)

8,709
221
7,519

–
–
–

(74,524)(53,507)
–

(389)
71
(2,294)

1,348
1,578
(297)

(191,086)(117,218)(89,909)(381,437)(84,065)(32,103)(98,303)(882,556)¥(489,845)(645,299)
2,685(423,465)(70,889)(1,120,519)¥(1,097,414)(81,123)–(18,990)(3,359)(103,472)¥(103,835)(25,424)(1,715)(1,610)(6,279)(163,059)¥ (129,258)(4,070)–(1,442)(707)(8,831)¥(5,969)(2,713)(3,380)
5,612
5,093
7,241
¥ 1,739(1,140,066)(86,475)(471,998)(174,444)(2,271,196)¥(1,824,582)

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Corporate Information

187

(Thousands of U.S. dollars)

As ofApril 1, 2020

Deferred tax assets
Property, plant and equipment�����������������������������������������������������������������
Accrued expenses and other liabilities �����������������������������������������������������Net operating loss carryforwards and tax credit carryforwards*2�����������������
Temporary difference associated with investment in subsidiaries, associates
and joint ventures�����������������������������������������������������������������������������������
Unrealized gain ���������������������������������������������������������������������������������������
Allowance for doubtful accounts �������������������������������������������������������������
Other�������������������������������������������������������������������������������������������������������
Total ���������������������������������������������������������������������������������������������������
Deferred tax liabilities
Customer relationships�����������������������������������������������������������������������������
Trademarks ���������������������������������������������������������������������������������������������
Technologies�������������������������������������������������������������������������������������������
Temporary difference associated with investment in subsidiaries, associates
and joint ventures*3�������������������������������������������������������������������������������
Contract assets and costs to obtain contracts �������������������������������������������
Investment securities*4�����������������������������������������������������������������������������
Other�������������������������������������������������������������������������������������������������������
Total ���������������������������������������������������������������������������������������������������
Net �������������������������������������������������������������������������������������������������

$331,488852,759
278,502

Recognizedin profit or loss

Recognizedin othercomprehensive
incomeBusiness
combination*1

$

$

$

(45,813)
135,408
407,949–
163–

121,859
110,704
5,374

Exchangedifferences

$

Other

199
3,631
12,826$98
10,83038,787

As ofMarch 31, 2021$

407,831
1,113,495
743,438

198,392
816,340
182,269
887,4543,547,204(175,639)(100,804)(13,368)966
208,699

117––(3,559)(3,279)40,882–
3,459
23,033
305,311

(72)
–
(777)
10,04425,851(14,570)
181(13,115)(71,908)(49,697)

49,110715,717
158,468
846,030
4,034,089(1,140,186)(592,367)(856,625)

78,665
1,996
67,916–––(673,146)(483,308)–(3,514)641(20,721)

12,176
14,253(2,683)(1,726,005)(1,058,785)(812,113)(3,445,371)(759,326)(289,974)(887,932)(7,971,781)$(4,424,577)(5,828,733)
24,253(3,824,993)(640,313)(10,121,209)$ (9,912,510)(732,752)–(171,529)(30,341)(934,622)$ (937,901)(229,645)(15,491)(14,542)(56,716)(1,472,848)$ (1,167,537)(36,763)–(13,025)(6,385)(79,767)(53,916)(24,505)(30,530)
50,69146,00265,404
15,707(10,297,769)(781,094)(4,263,372)(1,575,685)(20,514,823)$(16,480,734)$$*1 The increase from “Business combination” is mainly due to the consolidation of LINE Corporation. The details are described in “Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation” under “Note 10. Business combinations.”*2 The Company recognizes deferred tax assets related to the entities that recorded a loss in either the fiscal year ended March 31, 2020 or 2021, in the amount of ¥14,334 million ($129,473 thousand) for the fiscal year ended March 31, 2021. Deferred tax assets are recognized to theextent 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 increases in deferred tax liabilities from “Temporary difference associated with investment in subsidiaries, associates and joint ventures” as of March 31, 2021 are mainly due to the increase of ¥509,508 million ($4,602,186 thousand) in relation to the recognition of deferred tax
liabilities on temporary differences on investment in Alibaba shares and the increase of ¥220,352 million ($1,990,353 thousand) in relation to the recognition of deferred tax liabilities following the increase in reserved profit of SVF1 and SVF2.
*4 The increase in deferred tax liabilities from “Investment securities” as of March 31, 2021 is mainly due to the increase in unrealized valuation gain on investment securities.

SoftBank Group Corp. ANNUAL REPORT 2021

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Financial Section

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188

Deferred tax assets and liabilities in the consolidated statement of financial position are as follows:(Millions of yen)

As of March 31, 2020

Deferred tax assets ��������������������������������

As of March 31, 2021

(Thousands of U.S. dollars)

As of March 31, 2021

221,371¥

Deferred tax liabilities ����������������������������

(711,216)(2,030,651)(18,342,074)

Net ����������������������������������������������������

¥ (489,845)¥(1,824,582)$(16,480,734)¥

206,069$

Expiration of net operating loss carryforwards and tax credit carryforwards unaccompanied byrecognition of deferred tax assets is as follows. There is no deductible temporary difference with an
expiry date.

1,861,340(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.

(Millions of yen)
Net operating loss carryforwards (tax basis)

1st year��������������������������������������������������

Deductible temporary differences������������

5,694

¥

3,354

(Thousands of U.S. dollars)

As of March 31, 2021$

30,295

3,193

2,623

23,6933rd year ������������������������������������������������

2,942

5,838

52,732

4th year ������������������������������������������������

6,480

5,146

46,482

5th year and thereafter and no expiry date�

1,034,880

967,885

8,742,525

Total��������������������������������������������������

¥1,053,189¥ 984,846(Millions of yen)Tax credit carryforwards (tax basis)

As of March 31, 2020¥

As of March 31, 2021

2nd year������������������������������������������������

(Thousands of U.S. dollars)

1st year��������������������������������������������������

As of March 31, 2021

As of March 31, 2021

2nd year������������������������������������������������

(Millions of yen)

As of March 31, 2020

As of March 31, 2020–¥

As of March 31, 2021¥–

$ 8,895,727(Thousands of U.S. dollars)

As of March 31, 2021

$

–

–

–

–
–

472,965¥ 469,323$ 4,239,211

3rd year ������������������������������������������������––Net operating loss carryforwards ������������

1,053,189

984,846

8,895,727

4th year ������������������������������������������������

1,045

–

–

Tax credit carryforwards��������������������������

15,890155

1,400

5th year and thereafter and no expiry date�

14,845155

1,400

Total��������������������������������������������������

¥ 1,542,044¥1,454,324$13,136,338

Total��������������������������������������������������

¥¥15,890

¥

155

$

1,400

In addition to the above, total future deductible temporary differences (before multiplying by the taxrate) unaccompanied by the recognition of deferred tax assets related to the investment in subsidiaries,
associates and joint ventures as of March 31, 2021 are ¥4,010,124 million ($36,221,877 thousand) (asof March 31, 2020: ¥2,353,908 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, 2021 are¥2,733,417 million ($24,689,883 thousand) (as of March 31, 2020: ¥1,282,990 million).

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Financial Section

Corporate Information

18925. Interest-bearing debt
(1) Components of interest-bearing debt
The components of interest-bearing debt are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Average interest rate (%)*1

Short-term borrowings*3 ��������������������������������������������������������������������������������

¥1,529,458¥2,637,401$23,822,609

0.57

–

Commercial paper ������������������������������������������������������������������������������������������

206,000

409,201

3,696,152

0.12–

Current portion of long-term borrowings*3,4����������������������������������������������������

1,949,571

2,085,348

18,836,130

1.71

–

Current portion of corporate bonds*6��������������������������������������������������������������

Maturity*2

Current

159,938

804,356

7,265,432

2.39–

Current portion of financial liabilities relating to sale of shares by prepaid forward
contract*5 ����������������������������������������������������������������������������������������������������

–1,798,701

16,246,961

0.44

–

Current portion of installment payables ����������������������������������������������������������

186

232

2,095

1.82

–

Total ����������������������������������������������������������������������������������������������������������

¥3,845,153¥7,735,239$69,869,379

Non-current
Long-term borrowings*3,4��������������������������������������������������������������������������������

3,821,473

4,745,058

42,860,247

1.98

Apr. 2022-Nov. 2044

Corporate bonds*6������������������������������������������������������������������������������������������

5,268,883

4,745,184

42,861,386

2.41

Jul. 2022-Feb. 2056

Financial liabilities relating to sale of shares by prepaid forward contract* 5 ��

196,101

1,287,038

11,625,309

0.52

Apr. 2022-Aug. 2024

Installment payables����������������������������������������������������������������������������������������

272

456

4,119

1.86

Apr. 2022-Jul. 2027

Total ����������������������������������������������������������������������������������������������������������

¥9,286,729¥10,777,736$97,351,061*1 Average interest rate represents the weighted-average interest rate to the balance as of March 31, 2021.
*2 Maturity represents the maturity of the outstanding balance as of March 31, 2021.
*3 Long-term borrowings as of March 31, 2021 include ¥444,227 million ($4,012,528 thousand) (as of March 31, 2020: ¥408,465 million of short-term borrowings, ¥10,883 million of current portion of long-term borrowings, and ¥162,195 million of long-term borrowings) in SVF1.
*4 On July 8, 2020, Skywalk Finance GK, a wholly-owned subsidiary of the Company, made an early repayment for the total amount of borrowings ($9.44 billion) using Alibaba shares pledged as collateral. As a result, current portion of long-term borrowings decreased by ¥1,024,872
million ($9,257,267 thousand). Accordingly, the collateral was released. In addition, on March 30, 2021, Skywalk Finance GK made borrowings using Alibaba shares pledged as collateral. As a result, long-term borrowings increased by ¥887,208 million ($8,013,802 thousand). The
shares are recorded as “Investments accounted for using the equity method” for ¥836,301 million ($7,553,979 thousand) in the consolidated statement of financial position as of March 31, 2021.
*5 For the fiscal year ended March 31, 2020, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company, entered into a prepaid forward contract using Alibaba shares with a financial institution. As part of the “¥4.5 trillion program,” for the fiscal year ended
March 31, 2021, West Raptor Holdings 2, LLC (“WRH2 LLC”), Skybridge LLC, and Skylark 2020 Holdings Limited (“Skylark Limited”), Scout 2020 Holdings Limited (“Scout Limited”) and Tigress 2020 Holdings Limited (“Tigress Limited”), wholly-owned subsidiaries of the Company,
entered into several prepaid forward contracts using Alibaba shares with financial institutions.
a. Contract for the fiscal year ended March 31, 2020: Procured amount $1.65 billion (¥179,145 million)
The settlement is expected in October 2021 and November 2021. The number of Alibaba shares settled by the prepaid forward contracts is determined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A cap and a floor are set for the
price of shares settled.
b. Contract for the fiscal year ended March 31, 2021: Procured total amount $15.4 billion (¥1,660,952 million)(a) Forward contract: Procured amount $1.5 billion (¥161,610 million)
The settlement is expected in April 2024. The share price and the number of Alibaba shares settled by the prepaid forward contracts are fixed regardless of changes in market share price in the future.
(b) Floor contract: Procured amount $1.5 billion (¥161,853 million)
The settlement is expected in December 2023 and January 2024. The number of Alibaba shares settled by the prepaid forward contracts is determined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A floor is set for the price ofshares settled.
(c) Collar contract: Procured amount $8.5 billion (¥918,531 million)
The settlement is expected from January 2022 to September 2022. The number of Alibaba shares settled by the prepaid forward contracts is determined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A cap and a floor are set forthe price of shares settled.
(d) Collar contract and call spread: Procured amount $2.2 billion (¥239,722 million)
The settlement is expected from May 2024 to June 2024. The number of Alibaba shares settled by the prepaid forward contracts is determined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A cap and a floor are set for the priceof shares settled. In addition to the prepaid forward contracts, the call spread (combination of long position of call option and short position of call option with different strike prices) contract is entered into in preparation for Alibaba shares price rise. A portion of the procured
amount is used for the payment of option premium.

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190

(e) Collar contract: Procured amount $0.9 billion (¥97,897 million)
The settlement is expected in July 2022. The number of Alibaba shares settled by the prepaid forward contracts is determined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A cap and a floor are set for the price of shares settled.
(f) Collar contract and call spread: Procured amount $0.8 billion (¥81,339 million)
The settlement is expected in August 2024. The number of Alibaba shares settled by the prepaid forward contracts is determined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A cap and a floor are set for the price of shares
settled. In addition to the prepaid forward contracts, the call spread contract is entered into in preparation for Alibaba shares price rise.
For the fiscal year ended March 31, 2021, of the aforementioned prepaid forward contracts regarding the contracts a. and b. (c), amendment of the contract to revise the cap and floor for the price of shares settled has executed and regarding the contract b. (a) amendment of thecontract to change to collar contract which a cap and a floor are set for the price of shares settles has executed. Due to the amendments, the settlement is expected: October 2021 and November 2021 for contract a.; October 2022 and November 2022 for contract b. (a); and from
October 2021 to June 2022 for contract b. (c).
The amendments of the contracts are applicable for as exchanges of debt instruments with substantially different terms under IFRS, and accounted for as extinguishments of the original financial liabilities relating to the sale of shares by prepaid forward contracts and the recognition of
new financial liabilities relating to the sale of shares by variable prepaid forward contracts. Including the new variable prepaid forward contracts, the aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded derivatives and the embedded
derivatives are measured at fair value and the call spread is measured at fair value as well. In addition, for the derivative financial assets and the derivative financial liabilities recognized from the variable prepaid forward contracts, a tax effect is recognized.
As a result of the amendments, upon the extinguishment of the original contracts, ¥1,382,751 million ($12,489,847 thousand) of financial liabilities related to the sale of shares by prepaid forward contracts and ¥476,301 million ($4,302,240 thousand) of derivative financial liabilities(non-current) are derecognized. On the other hand, ¥2,179,156 million ($19,683,461 thousand) of new financial liabilities related to the sale of shares by variable prepaid forward contracts and ¥333,193 million ($3,009,602 thousand) of derivative financial assets are newly recognizedand ¥16,211 million ($146,428 thousand) of cash is paid as a difference in exchange value between the original and new contracts. Further, along with the fluctuation of derivative financial assets and derivative financial liabilities, ¥275,756 million ($2,490,796 thousand) of deferred tax
liabilities is increased and the same amount of income taxes is increased, representing the tax effect.
Embedded derivatives are recognized for ¥359,115 million ($3,243,745 thousand) as “Derivative financial assets (current),” for ¥302,500 million ($2,732,364 thousand) as “Derivative financial assets (non-current),” and for ¥28,096 million ($253,780 thousand) as “Derivative financial
liabilities (current)” (as of March 31, 2020: ¥5,009 million recorded as “Derivative financial assets (non-current)) and the call spread is recognized for ¥42,059 million ($379,902 thousand) as “Derivative financial assets (non-current)” (as of March 31, 2020: none) in the consolidated
statement of financial position as of March 31, 2021.
WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited have the option to settle all of the prepaid forward contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited,
Scout Limited, and Tigress Limited elect cash settlement, WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited will pay the cash equivalent to the fair value of the number of shares subject to the settlement, as determined by reference to the market
price of the shares.
Alibaba shares held by WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited are pledged as collateral in accordance with all of the prepaid forward contracts, and except for the contract by Tigress Limited, the Company granted right of use to thefinancial institutions with respect to such shares. However the collateral can be released by cash settlement at the discretion of WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited. Alibaba continues to be an equity method associate of the Company
after the completion of these transactions because the Company still has significant influence over Alibaba via voting rights. Alibaba shares, pledged as collateral by the Company in accordance with the prepaid forward contracts, are recognized as “Investments accounted for using theequity method” in the consolidated statement of financial position as of March 31, 2021 and the carrying amount is ¥583,897 million ($5,274,113 thousand) (as of March 31, 2020: ¥54,453 million).
Also, for the fiscal year ended March 31, 2021, of the aforementioned prepaid forward contract regarding contract b. (d), Skylark Limited has exercised the option to settle the prepaid forward contract by cash and noticed to counterparty for early termination in April 2021. Under the
prepaid forward contract, Skylark Limited is required to maintain cash that would exceed expected early termination amounts in a segregated custody account as restricted cash before the expected early termination date. $3.3 billion (¥361,355 million) of the restricted cash is recognized
as “Other financial assets (current)” in the consolidated statement of financial position as of March 31, 2021.
On April 13, 2021, Skylark Limited paid $2.9 billion (¥313,411 million) from restricted cash and completed the settlement of the transactions. ¥285,780 million ($2,581,339 thousand) of current portion of financial liabilities relating to sale of shares by prepaid forward and ¥28,096
million ($253,780 thousand) of “derivative financial liabilities (current)” which were recognized in the consolidated statement of financial position as of March 31, 2021, were derecognized. Accordingly, on the same date, ¥61,633 million ($556,707 thousand) of Alibaba shares recognized in the consolidated statement of financial position as of March 31, 2021 was released from the collateral.

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191

6. A summary of the issuance conditions of the bonds is as follows:
Company name / Name of bond

Balance of issue
amount*7

Date of issuance

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

(Millions of yen)*8(Millions of yen)*8(Thousands of U.S. dollars)*8

Interest rate (%)

Date of maturity

–

1.69

Nov. 27, 2020

SoftBank Group Corp.

–

44th Unsecured Straight Bond���������������������������������������������� Nov. 29, 2013¥–¥49,981(49,981)

47th Unsecured Straight Bond���������������������������������������������� Jun. 18, 2015¥–

99,957(99,957)

–

–

1.36

Jun. 18, 2020

48th Unsecured Straight Bond*9������������������������������������������ Dec. 10, 2015

¥337,024 million

368,212

336,006

3,035,010

2.13

Dec. 9, 2022

49th Unsecured Straight Bond*9������������������������������������������ Apr. 20, 2016

¥ 19,500 million

19,95919,474

175,901

1.94

Apr. 20, 2023

50th Unsecured Straight Bond���������������������������������������������� Apr. 20, 2016

¥ 30,000 million

29,90829,923

270,283

2.48

Apr. 20, 2026

51st Unsecured Straight Bond*9 ������������������������������������������ Mar. 16, 2017

¥352,612 million

397,162

350,749

3,168,178

2.03

Mar. 15, 2024

52nd Unsecured Straight Bond*9������������������������������������������ Mar. 8, 2017

¥ 47,300 million

49,87447,211

426,438

2.03

Mar. 8, 2024

53rd Unsecured Straight Bond���������������������������������������������� Jun. 20, 2018

¥410,000 million

406,427

407,284

3,678,837

1.57

Jun. 14, 2024

54th Unsecured Straight Bond���������������������������������������������� Jun. 12, 2018

¥ 40,000 million

39,87739,907360,464

1.57

Jun. 12, 2024

55th Unsecured Straight Bond���������������������������������������������� Apr. 26, 2019

¥500,000 million

494,784

495,827

4,478,611

1.64

Apr. 25, 2025

56th Unsecured Straight Bond���������������������������������������������� Sep. 20, 2019¥400,000 million

395,406

396,122

3,578,015

1.38

Sep.17, 2026

57th Unsecured Straight Bond���������������������������������������������� Sep. 12, 2019¥100,000 million

99,59999,663

900,2171.38

Sep.11, 2026

USD-denominated Senior Notes due 2022*10 ���������������������� Jul. 28, 2015$

819 million

80,38656,601

511,255

5.38

Jul. 30, 2022

USD-denominated Senior Notes due 2023*10 ���������������������� Apr. 20, 2018$

300 million

32,39318,080163,310

5.50

Apr. 20, 2023

USD-denominated Senior Notes due 2024*10 ���������������������� Sep. 19, 2017$

1,350 million

130,360

91,813

829,311

4.75

Sep. 19, 2024

USD-denominated Senior Notes due 2025*10 ���������������������� Jul. 28, 2015$

712 million

74,132

63,210570,951

6.00

Jul. 30, 2025

USD-denominated Senior Notes due 2025*10 ���������������������� Apr. 20, 2018$

450 million

48,516

40,847368,955

6.13

Apr. 20, 2025

USD-denominated Senior Notes due 2027*10 ���������������������� Sep. 19, 2017$

2,000 million

197,566

195,882

1,769,325

5.13

Sep. 19, 2027

USD-denominated Senior Notes due 2028*10 ���������������������� Apr. 3, 2018$

500 million

53,87354,872495,637

6.25

Apr. 15, 2028

Euro-denominated Senior Notes due 2022*10 ���������������������� Jul. 28, 2015€

287 million

34,05924,193

218,526

4.00

Jul. 30, 2022

Euro-denominated Senior Notes due 2023*10 ���������������������� Apr. 20, 2018€

1,000 million

118,62181,994

740,620

4.00

Apr. 20, 2023

Euro-denominated Senior Notes due 2025* ���������������������� Sep. 19, 2017€

1,500 million

130,376

104,486

943,781

3.13

Sep. 19, 2025

Euro-denominated Senior Notes due 2025*10 ���������������������� Jul. 28, 2015€

689 million

81,66381,562736,718

4.75

Jul. 30, 2025

Euro-denominated Senior Notes due 2025*10������������������������� Apr. 20, 2018€

450 million

46,22738,979352,082

4.50

Apr. 20, 2025

Euro-denominated Senior Notes due 2027*10 ���������������������� Jul. 28, 2015€

211 million

24,912

27,088244,675

5.25

Jul. 30, 2027

Euro-denominated Senior Notes due 2028*10 ���������������������� Apr. 3, 2018€

1,174 million

138,933

151,0311,364,204

5.00

Apr. 15, 2028

Euro-denominated Senior Notes due 2029*10 ���������������������� Sep. 19, 2017€

750 million

81,602

88,699801,183

4.00

Sep. 19, 2029

398,174

360,957(360,957)

3,260,383(3,260,383)

2.50

Dec. 17, 2021

447,741

403,428(403,428)

3,644,007(3,644,007)

2.50

Feb. 9, 2022

10

1st Unsecured Subordinated Corporate Bond*9 �������������� Dec. 19, 2014
2nd Unsecured Subordinated Corporate Bond*9������������������ Feb. 9, 2015

SoftBank Group Corp. ANNUAL REPORT 2021

¥361,617 million¥404,352 million

Table of Contents

Message from Our CEO

Who We Are

Growth Assets¥$

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

192

Company name / Name of bond

Balance of issue
amount*7

Date of issuance

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

(Millions of yen)*8(Millions of yen)*8(Thousands of U.S. dollars)*8¥¥

1st Unsecured Subordinated Bonds with interest deferrable clauseand early redeemable option (with a subordination provision)*11,12 � Sep. 16, 2016

¥ 55,600 million

2nd Unsecured Subordinated Bonds with interest deferrable clauseand early redeemable option (with a subordination provision)*11,13 � Sep. 16, 2016

¥ 15,400 million

15,268

3rd Unsecured Subordinated Bonds with interest deferrable clauseand early redeemable option (with a subordination provision)*11,14 � Sep. 30, 2016

¥400,000 million

393,402

4th Unsecured Subordinated Bonds with interest deferrable clauseand early redeemable option (with a subordination provision)*11,15 ��� Feb. 4, 2021

¥177,000 million

Subtotal����������������������������������������������������������������������������

55,144

Interest rate (%)

Date of maturity

498,284

3.00

Sep. 13, 2041

15,273

137,955

3.50

Sep. 16, 2043

393,7103,556,228

3.00

Sep. 30, 2041

3.00

Feb. 4, 2056

55,165$–

175,512

1,585,330

5,034,494(149,938)

4,745,548(764,385)

42,864,674(6,904,390)

Z Holdings Corporation
10th Unsecured Straight Bond���������������������������������������������� Jul. 31, 2019

¥ 60,000 million

59,86959,927541,297

0.04

Jul. 29, 2022

11th Unsecured Straight Bond �������������������������������������������� Jul. 31, 2019

¥ 50,000 million

49,85349,888450,619

0.18

Jul. 31, 2024

12th Unsecured Straight Bond �������������������������������������������� Jul. 31, 2019

¥ 70,000 million

69,78869,822630,675

0.37

Jul. 31, 2026

13th Unsecured Straight Bond �������������������������������������������� Jul. 31, 2019

¥ 50,000 million

49,817

49,837450,158

0.46

Jul. 31, 2029

15th Unsecured Straight Bond �������������������������������������������� Jun. 11, 2020

¥ 80,000 million–

79,834

721,109

0.35

Jun. 9, 2023

16th Unsecured Straight Bond �������������������������������������������� Jun. 11, 2020

¥ 70,000 million–

69,802

630,494

0.60

Jun. 11, 2025

Other Unsecured Straight Bonds ������������������������������������������ Feb. 28, 2017Jun. 11, 2020

¥165,000 million

125,000(10,000)

164,882(39,971)

1,489,314(361,042)

0.17-0.90

Dec. 10, 2021 Jun. 11, 2030

354,327(10,000)

543,992(39,971)

4,913,666(361,042)

Subtotal����������������������������������������������������������������������������
SoftBank Corp.
6th Unsecured Straight Bonds���������������������������������������������� Jul. 29, 2020

¥ 70,000 million–

70,000632,283

0.36

Jul. 29, 2025

8th Unsecured Straight Bonds���������������������������������������������� Dec. 3, 2020

¥ 80,000 million–

80,000722,609

0.35

Dec. 3, 2025

Other Unsecured Straight Bonds������������������������������������������ Mar. 18, 2020 Dec. 3, 2020

¥110,000 million

40,000110,000

993,5860.10 - 0.58

Mar. 17, 2023 Dec 3, 2030

Subtotal ������������������������������������������������������������������������������

40,000260,000

2,348,478

Total ��������������������������������������������������������������������������������

¥5,428,821(159,938)¥5,549,540(804,356)$50,126,818(7,265,432)*7 Balance of issue amount is as of March 31, 2021.
*8 Figures in parentheses as of March 31, 2020 and March 31, 2021 represent the current portion.
*9 On June 29, 2020, SoftBank Group Corp. offered the partial purchase for the 1st Unsecured Subordinated Corporate Bond, the 2nd Unsecured Subordinated Corporate Bond, the 48th Unsecured Straight Bond, the 49th Unsecured Straight Bond, the 51st Unsecured Straight Bond, andthe 52nd Unsecured Straight Bond. Accordingly, on July 22, 2020, the purchases were completed and these corporate bonds were retired. As a result, these bonds were derecognized as the requirement for the extinguishment was satisfied on the same date.
*10 On February 22, 2021, SoftBank Group Corp. offered the partial purchases for the USD-denominated Senior Notes due 2022, the USD-denominated Senior Notes due 2023, the USD-denominated Senior Notes due 2024, the USD-denominated Senior Notes due 2025, the USD-denominated Senior Notes due 2027, the USD-denominated Senior Notes due 2028, the Euro-denominated Senior Notes due 2022, the Euro-denominated Senior Notes due 2023, the Euro-denominated Senior Notes due 2025, the Euro-denominated Senior Notes due 2027, the Euro-denominated Senior Notes due 2028, and the Euro-denominated Senior Notes due 2029. Accordingly, on March 10, 2021, the purchases were completed. As a result, these notes were derecognized as the requirement for the extinguishment was satisfied on the same date.
*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 The bond has an early redeemable option at the Company’s discretion from February 4, 2026 and each interest date on or after February 4, 2026.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information193

(2) Financial covenants	a. 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 end of the fiscal year must not show a net capital deficiency.
(c) In the Company’s consolidated statement of income, income (loss) before income tax or net
income (loss) attributable to the owner of the parent company must not result in losses fortwo consecutive years.
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
the end 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 endof 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 ratios*1 of SoftBank Corp. must not exceed certain numbers at the end of the
fiscal year and at the end of the second quarter.

c. Financial covenants on interest-bearing debts of Z Holdings Corporation
Z Holdings Corporation’s interest-bearing debt includes financial covenants and the major
financial covenants are as follows:(a) The amount of net assets in Z Holdings Corporation’s statement of financial position at theend of the fiscal year from the second quarter ended September 30, 2020 must not fall
below 75% of Z Holdings Corporation’s net assets at the same dates during the previous year.
(b) The amount of equity in Z Holdings Corporation’s consolidated statement of financial positionat the end of the fiscal year and at the end of the second quarter of each year from thesecond quarter ended September 30, 2020 must not fall below 75% of Z Holdings
Corporation’s equity at the same dates during the previous year.
(c) The balance sheet of Z holdings Corporation at the end of the fiscal year from the second
quarter ended September 30, 2020, must not show a net capital deficiency.
(d) The consolidated statement of financial position of Z Holdings Corporation at the end of the
fiscal year and at the end of the second quarter of each year from the second quarter ended
September 30, 2020 must not show a net capital deficiency.
(e) In Z Holdings Corporation’s statement of income, operating income (loss) or net income (loss)
at the end of each fiscal year from the fiscal year ended March 31, 2021, must not result in
losses for two consecutive fiscal years.
(f) In Z Holdings Corporation’s consolidated statement of income, operating income (loss) or net
income (loss) at the end of each fiscal year from the fiscal year ended March 31, 2021, must
not result in losses for two consecutive fiscal year.
(g) Net leverage ratios*1 of Z Holdings Corporation must not exceed certain respective amounts
or numbers at the end of the fiscal year and the end of the second quarter of each year fromthe second quarter ended September 30, 2020.
*1 N
 et leverage ratio: Net debt*2 / Adjusted EBITDA*3*2 N
 et debt: The total amount of interest-bearing debt shown in the consolidated statement of financial position of Z
Holdings Corporation after deducting cash and cash equivalents adjusted for certain items. Interest-bearing debt isadjusted for certain items, such as an exclusion of interest-bearing debt resulting from financing transactions using an
asset securitization scheme. Such adjustments are applied to interest-bearing debt and cash and cash equivalents of theJapan Net Bank, Limited (currently PayPay Bank Corporation).
*3 A djusted EBITDA: EBITDA adjusted for certain items as specified in the loan agreement with the financial institutions.

*1 Net leverage ratio: Net debt*2 / adjusted EBITDA*3*2 Net debt:
The total amount of interest-bearing debt shown in the consolidated statement of financial position of SoftBank Corp.
after deducting cash and cash equivalents adjusted for certain items. Interest-bearing debt is adjusted for certain items
such as an exclusion of interest-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.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

194

(3) Assets pledged as collateral
Assets pledged as collateral for liabilities are as follows:(Millions of yen)

As of March 31, 2020

Cash and cash equivalents����������������������

¥

3,309

As of March 31, 2021¥

(Thousands of U.S. dollars)

As of March 31, 2021

4,736

$

42,778Trade and other receivables��������������������

7,024

5,433

49,074

Other financial assets (current)*1 ������������

21,981

15,088136,284

Inventories ��������������������������������������������

1,803

–

–

Other current assets ������������������������������

173

4,967

44,865

Property, plant and equipment����������������

100,040

137,196

1,239,238

Right-of-use assets ��������������������������������

1,851

–

–

Intangible assets ������������������������������������

9,200

9,176

82,883

Investments accounted for using theequity method*1,2,3,4������������������������������

776,309

1,462,579

13,210,902

Investments from SVF1 and SVF2
accounted for using FVTPL*1 ����������������

857,356

786,651

7,105,510

Investment securities*4 ��������������������������

10,184

1,483,897

13,403,459

Other financial assets (non-current)
Total��������������������������������������������������

1,646

2,503

22,610¥1,790,876¥ 3,912,226$ 35,337,603

Liabilities related to these assets pledged as collateral are as follows:(Millions of yen)

As of March 31, 2020

As of March 31, 2021

(Thousands of U.S. dollars)

As of March 31, 2021

Interest-bearing debt
Short-term borrowings������������������������

¥Current portion of long-termborrowings*1,2,5 ��������������������������������

354

¥

8,007

$

72,324

1,041,811

502,737

4,541,026

Current portion of financial liabilities
relating to sale of shares by prepaid
forward contract*3����������������������������

–1,798,701

16,246,961

Long-term borrowings*1,2,4,5����������������

748,131

1,636,452

14,781,429

Financial liabilities relating to sale ofshares by prepaid forward contract*3

196,101

1,287,038

11,625,309

Trade and other payables������������������������

–

27

244

Derivative financial liabilities (current)������

657

–

–

Other financial liabilities (current)������������

–

576

5,203

Other non-current liabilities��������������������

–

307

2,773

Derivative financial liabilities (non-current)���

347

–

–

Total ����������������������������������������������

¥1,987,401¥5,233,845$ 47,275,269

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO*1 C
 ertain listed shares held by SVF1 are pledged as collateral for long-term borrowings. The facility agreement for the long-term borrowings include a margin call provision, which may be triggered under certain circumstances such as a significant decrease in the market
value of pledged collateral and a mandatory prepayment clause requiring all or part of the borrowings to be prepaid in certain circumstances. The creditors would be able to enforce security and dispose of the pledged listed shares if the margin call clause or the
mandatory prepayment clause were triggered and SVF1 did not pay the relevant amounts to creditors when due. The long-termborrowings are limited-recourse debts.
In March 2020, in light of current market conditions, and significant decreases in the market value of the pledged listed shares, anaggregate amount of ¥102,125 million was partially and voluntarily prepaid by SVF1. In the same month, the facility agreement for the
borrowings was amended and pursuant to the terms of this amendment, SVF1 made an additional ¥17,949 million voluntary partial
repayment and pledged cash as collateral. Such cash collateral amount was intended to be applied in April 2020 towards a further
voluntary repayment of the outstanding long-term borrowings.
As a result, ¥786,651 million ($7,105,510 thousand) of the listed shares held by SVF1 (the carrying amounts of asset as of March 31,2021) (as of March 31, 2020: ¥849,088 million of the listed shares and ¥10,883 million of cash) were pledged as collateral for¥136,841million ($1,236,031 thousand) of long-term borrowings as of March 31, 2021 (as of March 31, 2020: ¥162,195 million of
long-term borrowings and ¥10,883 million of current portion of long-term borrowings). The aforementioned pledged shares areincluded within “Investments from SVF1 and SVF2 accounted for using FVTPL” in the consolidated statement of financial position as ofMarch 31, 2021.
*2 ¥ 836,301 million ($7,553,979 thousand) (as of March 31, 2020: ¥721,856 million) of Alibaba shares (carrying amount on a consolidated basis) held by Skywalk Finance GK, a wholly-owned subsidiary of the Company, is pledged as collateral for ¥894,102 million($8,076,073 thousand) of long-term borrowings as of March 31, 2021 (as of March 31, 2020: ¥1,027,839 million of current portion of
long-term borrowings). The shares are included in “Investments accounted for using the equity method” under the consolidated
statement of financial position as of March 31, 2021. The borrowings include an early settlement clause and an early settlement may
be elected under certain circumstances such as a significant decrease in the fair value of pledged Alibaba shares. The creditors would
be able to dispose the asset pledged as collateral upon a circumstance where the early settlement is demanded and the subsidiary does
not repay the borrowings, accordingly. The borrowings are non-recourse debts, and therefore, SoftBank Group Corp. will not be
responsible for the borrowings.
*3 ¥583,897 million ($5,274,113 thousand) of Alibaba shares (carrying amount on a consolidated basis) is pledged as collateral for¥1,798,701 million ($16,246,961 thousand) of current portion of financial liabilities relating to sale of shares by prepaid forward
contracts and ¥1,287,038 million ($11,625,309 thousand) of financial liabilities relating to sale of shares by prepaid forward contracts
as of March 31, 2021. The details are described in “*5” under “(1) Components of interest-bearing debt.”*4 On July 30, 2020, a wholly-owned subsidiary of the Company made a borrowing of $4.38 billion by using T-Mobile shares held by thesubsidiary as collateral. ¥1,474,356 million ($13,317,279 thousand) of T-Mobile shares is pledged as collateral for ¥481,260 million($4,347,033 thousand) of the long-term borrowings. T-Mobile shares pledged as collateral are included in “Investment securities” inthe consolidated statement of financial position as of March 31, 2021.
In addition, related to the transaction, Alibaba shares held by the Company are pledged as collateral. Alibaba shares pledged ascollateral are recorded for ¥42,381 million ($382,811 thousand) as “Investments accounted for using the equity method” in the
consolidated statement of financial position as of March 31, 2021.
*5 929,022,669 shares out of 1,914,858,070 shares of SoftBank Corp. held by the Company is pledged as collateral for ¥498,678 million($4,504,363 thousand) of current portion of long-term borrowings (as of March 31, 2020: ¥497,356 million of long-term borrowings)of Moonlight Finance GK, a wholly-owned subsidiary of the Company, as of March 31, 2021. 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 thefair value of pledged SoftBank Corp. shares. The creditors would be able to dispose the asset pledged as collateral in the event where
the early settlement is demanded and Moonlight Finance GK does not repay the borrowings, accordingly. The borrowings are non-recourse debts, and therefore, SoftBank Group Corp. will not be responsible for the borrowings.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

195

Other than the above, the following assets are pledged as collateral.
a. SB Northstar
For acquisition of investments financed through borrowings, total return swap contracts and credit
transactions, ¥1,427,286 million ($12,892,115 thousand) of securities pledged as collateral in theasset management subsidiary, ¥111,787 million ($1,009,728 thousand) of restricted cash and¥14,685 million ($132,644 thousand) of margin deposits in SB Northstar are pledged as collateralmainly for ¥1,203,925 million ($10,874,582 thousand) of short-term borrowings in SB Northstar,¥14,673 million ($132,535 thousand) of derivative financial liabilities in the asset management
subsidiary and ¥8,713 million ($78,701 thousand) of borrowed securities as of March 31, 2021. In
addition, in accordance with the contracts by each broker, there is a possibility that investments fromthe asset management subsidiary in the consolidated statement of financial position and Alibaba
shares held by SB Northstar (the carrying amount of ¥124,804 million ($1,127,306 thousand) on aconsolidated basis) will be pledged additionally as collateral in response to the balance of liabilities in
SB Northstar and position in the future. The borrowings will be settled early if the fair value of thepleaded securities is less than the certain proportion of the residual balance of the borrowings.
Also, ¥302,048 million ($2,728,281 thousand) of Alibaba shares held by SB Northstar (the carrying
amount on a consolidated basis) is pledged as collateral for ¥662,596 million ($5,984,970 thousand)of current portion of long-term borrowings as of March 31, 2021. The borrowing includes a clause inwhich additional cash collateral will be required if the residual balance of the borrowings is higher
than the certain proportion of the fair value of Alibaba share. Alibaba shares pledged as collateral are
included in “Investments accounted for using the equity method “in the consolidated statement offinancial position as of March 31, 2021.
b. Fortress
As of March 31, 2021, based on a term loan agreement of $0.9 billion (as of March 31, 2020: $1.0
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.
c. Other
As of March 31, 2021, ¥86,248 million ($779,044 thousand) (as of March 31, 2020: ¥47,831
million) of “Investment securities” is pledged as collateral for financing and exchange settlement
by a subsidiary operating banking business. Also, “Other financial assets (non-current)” include¥155,210 million ($1,401,951 thousand) (as of March 31, 2020: ¥115,273 million) of margindeposits with central counterparties.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(4) Assets with restrictions on rightsa.	Assets for sale and leaseback transactions that are not accounted for as sales
Assets for sale and leaseback transactions that continue to be recognized as property, plant andequipment but to which the Company does not have legal title because the transactions are notaccounted for as sales are as follows:(Millions of yen)

Property, plant and equipment����������������

(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥287,417¥490,356$ 4,429,193

Liabilities related to the assets to which the Company does not have legal title are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Current portion of long-term borrowings��

¥ 81,383¥122,764$ 1,108,879

Long-term borrowings������������������������

220,947

353,466

3,192,720

Total ����������������������������������������������

¥302,330¥476,230$ 4,301,599

Interest-bearing debt

b. Assets under lease contracts for intangible assets
Assets that are restricted to be transferred, subleased or pledged as collateral by the Company
because they are acquired under lease contracts for the intangible assets are as follows:(Millions of yen)

Intangible assets ������������������������������������

(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥348,522¥350,198$ 3,163,201

Liabilities related to the assets that are restricted to be transferred, subleased or pledged ascollateral are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥107,690¥115,058$ 1,039,274

Interest-bearing debt
Current portion of long-term borrowings��
Long-term borrowings������������������������

208,896

228,4422,063,427

Total ����������������������������������������������

¥316,586¥343,500$ 3,102,701

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information196

(5) Assets with restrictions on use
The carrying amount of assets with restrictions on use (sale, transfer, disposal or dividend distributions,and other) based on the guarantee contracts within the group for fund procurements is as follows:(7) 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:(Millions of yen)

(Millions of yen)

As of March 31, 2020

Investments accounted for using FVTPL ��¥33,660

Investments accounted for using theequity method ������������������������������������

1,426

As of March 31, 2021

As of March 31, 2021

¥

$

–
–

–
–

(6) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the consolidated statementof cash flows are as follows:(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Net increase of short-term borrowings�����

¥ 36,173¥1,452,826$13,122,808

Net increase of commercial paper �����������

97,000122,501

1,106,503

Total��������������������������������������������������

¥133,173¥1,575,327$14,229,311

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Proceeds from borrowings����������������������

¥7,043,561¥5,707,162$51,550,555

Proceeds from issuance of corporate
bonds��������������������������������������������������

1,379,220

597,000

5,392,467(Thousands of U.S. dollars)

Proceeds from procurement by prepaid
forward contracts using shares*������������

179,145

1,660,952

15,002,728

Total��������������������������������������������������

¥8,601,926¥7,965,114$71,945,750* The amount is procured under the prepaid forward contracts using Alibaba shares. The details are described in “*5” under “(1) Components of interest-bearing debt.”(8) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the consolidated statement of cash flows
are as follows:(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Repayment of borrowings ��������������������

¥(4,599,878)¥(5,223,271)$(47,179,758)

Redemption of corporate bonds������������

(1,036,765)(567,630)(5,127,179)

Repayment of installment payables��������

(10,084)––

Total������������������������������������������������

¥(5,646,727)¥(5,790,901)$(52,306,937)

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

197

26. Deposits for banking business
The components of deposits for a banking business are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Ordinary deposits ����������������������������������

¥ 770,572¥1,001,173$ 9,043,203

Time deposits ����������������������������������������

102,515

108,067

976,127

Total��������������������������������������������������

¥ 873,087¥1,109,240$10,019,330

	*2 Allowance for unutilized loan commitment losses related to purchase unsecured notes issued by WeWork. Regarding liabilities related
to the loan commitment, when WeWork Investment Subsidiary purchased the unsecured notes, the corresponding amounts werereversed from the liabilities related to the loan commitment and deducted from the initial recognition amounts of the loan receivables.
Also, credit spread for WeWork’s unsecured notes distributed in the market was improved. The balance decreased as expected credit
losses were lower than the balance as of March 31, 2020 mainly due to the abovementioned reasons. The details are described in “(3)Details and progress of the agreement between the Company and WeWork” under “Note 22. Investments accounted for using theequity method.”*3 The details are described in “Note 8. Special purpose acquisition companies sponsored by the Company.”

29. Other current liabilities and other non-current liabilities
The components of other current liabilities and other non-current liabilities are as follows:

27. Trade and other payables
The components of trade and other payables are as follows:(Millions of yen)
(Millions of yen)(Thousands of U.S. dollars)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Current

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Withholding income tax*1 ������������������

Trade payables ��������������������������������������

¥1,541,078$13,919,953¥131,024¥ 255,128$ 2,304,471¥1,290,182

Accrued employee benefits������������������

163,097

223,847

2,021,922

Other ����������������������������������������������������

295,144

429,197

3,876,768

Contract liabilities ������������������������������

141,454

145,528

1,314,497

Total��������������������������������������������������

¥1,585,326¥1,970,275$17,796,721

Advance received*2 ����������������������������

6,590

142,205

1,284,482

Consumption tax payable and other����

66,36966,980605,005

Other��������������������������������������������������

87,965

118,755

1,072,668

Total ����������������������������������������������

¥596,499¥ 952,443$ 8,603,045

28. Other financial liabilities
The components of other financial liabilities are as follows:

Non-current(Millions of yen)

As of March 31, 2020

As of March 31, 2021

(Thousands of U.S. dollars)

As of March 31, 2021

Current
Allowance for financial guarantee
contract losses*1��������������������������������

¥ 96,756¥ 24,381

Allowance for loan commitment losses*2����

145,133

10,21892,295

Other��������������������������������������������������

6,121

16,686

150,718

Total ����������������������������������������������

¥248,010¥ 51,285$ 463,237

Non-controlling interests subject topossible redemption*3 ����������������������

–298,092

2,692,548

Other��������������������������������������������������

77,207

117,315

1,059,660

Total ����������������������������������������������

¥ 77,207¥415,407$3,752,208$ 220,224

Non-current

Contract liabilities ������������������������������

26,161

105,285

950,998

Defined benefit liabilities ��������������������

16,44828,590258,242

Long-term accrued employee benefits

16,98828,534

257,736

Other��������������������������������������������������

19,95645,079407,182

Total ����������������������������������������������

¥ 79,553¥ 207,488$ 1,874,158*1 W
 ithholding income tax as of March 31, 2021 includes the amount of ¥245,053 million ($2,213,468 thousand) (as of March 31, 2020:¥122,548 million) which is related to dividends within the group companies. The Company paid the withholding income tax in April,
2021 (as of March 31, 2020: paid in April, 2020.)*2 O
 n September 13, 2020 (U.S. time), the Company entered into a definitive agreement with NVIDIA to sell all of its shares in Arm.
Based on the agreement, the Company received $1.25 billion as a deposit for part of the consideration in the transaction. The details
are described in “(Sell of all shares in Arm)” under “Note 52. Additional information.”*1 As of March 31, 2021, ¥24,381 million ($220,224 thousand) of allowance for financial guarantee contract losses related to a credit
facility for WeWork provided by financial institutions is included (as of March 31, 2020: ¥89,202 million) and the balance decreased as
expected credit losses were lower than the balance as of March 31, 2020 due to the improvement of credit spread for WeWork’s
unsecured notes distributed in the market. The details are described in “(3) Details and progress of the agreement between the
Company and WeWork” under “Note 22. Investments accounted for using the equity method.”

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

19830. Provisions
The changes in the provisions are as follows:(Millions of yen)

Asset retirement
obligations

Provision for loss oncontracts

Provision for loss oninterest repayment

Other

Total

As of April 1, 2020 ��������������������������������������������������������������������������������������������������������������������������

¥ 80,234–¥10,076¥ 9,929¥ 100,239

Recognition of provisions������������������������������������������������������������������������������������������������������������������

12,144

23,130–

4,837

40,111

Interest due to passage of time ��������������������������������������������������������������������������������������������������������

261

–

–

–

261

Used������������������������������������������������������������������������������������������������������������������������������������������������

(6,933)–(2,064)(3,548)(12,545)

Reversal of provisions ����������������������������������������������������������������������������������������������������������������������

–

–

–

(287)

(287)

Change in estimate��������������������������������������������������������������������������������������������������������������������������

4,908

–

–

–

4,908

Exchange differences������������������������������������������������������������������������������������������������������������������������

14

–

–

(286)

(272)

Other ����������������������������������������������������������������������������������������������������������������������������������������������

6,111

–

–

(3,001)

3,110

As of March 31, 2021����������������������������������������������������������������������������������������������������������������������

¥ 96,739¥ 23,130¥ 8,012¥ 7,644¥ 135,525

Current liabilities������������������������������������������������������������������������������������������������������������������������������

¥ 17,538¥¥ 1,812¥ 5,546¥¥43

24,939Non-current liabilities������������������������������������������������������������������������������������������������������������������������

79,201

23,087

6,200

2,098

110,586

Total��������������������������������������������������������������������������������������������������������������������������������������������

¥ 96,739¥ 23,130¥ 8,012¥ 7,644¥ 135,525

Asset retirement
obligations

Provision for loss oncontracts

Provision for loss oninterest repayment

Other

Total

As of April 1, 2020 ��������������������������������������������������������������������������������������������������������������������������

$ 724,722$–$91,013$89,685$ 905,420

Recognition of provisions������������������������������������������������������������������������������������������������������������������

109,692

208,924–

43,691

362,307

Interest due to passage of time ��������������������������������������������������������������������������������������������������������

2,358

–

–

–

2,358

Used������������������������������������������������������������������������������������������������������������������������������������������������

(62,622)–(18,644)(32,048)(113,314)

Reversal of provisions ����������������������������������������������������������������������������������������������������������������������

–

–

–

(2,592)(2,592)

Change in estimate��������������������������������������������������������������������������������������������������������������������������

44,332–––44,332

Exchange differences������������������������������������������������������������������������������������������������������������������������

126

–

–

(2,583)(2,457)(Thousands of U.S. dollars)

Other ����������������������������������������������������������������������������������������������������������������������������������������������

55,198––(27,108)

28,090

As of March 31, 2021����������������������������������������������������������������������������������������������������������������������

$ 873,806$208,924$72,369$69,045$1,224,144

Current liabilities������������������������������������������������������������������������������������������������������������������������������

$ 158,414$

388$16,367$50,095$ 225,264

Non-current liabilities������������������������������������������������������������������������������������������������������������������������

715,392

208,536

56,002

18,950998,880

Total��������������������������������������������������������������������������������������������������������������������������������������������

$ 873,806$208,924$72,369$69,045$1,224,144

SoftBank Group Corp. ANNUAL REPORT 2021

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Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

199

Asset retirement obligations
Asset retirement obligations are recognized by the reasonably estimated amount required for theremoval of equipment, such as part of base stations, certain offices (including the head office), data
centers and network centers. The estimate of the amount for the removal of equipment and the timingof the payment is based on the assumption at present and is subject to changes depending on revised
future assumptions.
Provision for loss on contracts
In mobile communication service, provision for loss on contracts is recognized in order to prepare forlosses resulting from the difference between the sales price of devices received from customers andresidual installment receivables from customers. The sales price of the devices and the amount of theresidual installment receivables may fluctuate due to changes in the market environment and otherfactors.
Provision for loss on interest repayment
Provision for loss on interest repayment is recorded by the subsidiaries operating card business, basedon an amount representing future expected claims in order to prepare for future claims by debtors andothers, 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 may fluctuate from changes in market environment and other factors.

31. Financial instruments(1) Capital management
Our policy is to realize and maintain optimum capital composition to maintain mid- and long-termsustainable growth 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 ownersof the parent” divided by “Total liabilities and equity.”

Equity capital and the equity capital ratio are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Equity capital������������������������������������������

¥5,913,613¥10,213,093$92,250,863

Equity capital ratio (%) ��������������������������

15.9

22.3

The Company is not subject to regulatory capital requirements imposed by outside institutions otherthan general capital requirements under the Companies Act of Japan and other laws. The details
regarding the financial covenants related to interest-bearing debt are described in “(2) Financial
covenants” under “Note 25. Interest-bearing debt”.
(2) Financial risk management(The asset management subsidiary)
As SB Northstar L.P., an asset management subsidiary, has started to conduct various transactions suchas acquisition and sale of listed stocks, derivative transactions related to listed stocks, and credit
transactions, and others for diversification of the assets held and management of surplus funds, theCompany faces a variety of financial risks (market 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.
The Company continues to enhance financial risk management according to the scale of investments
and nature of new transactions.
SB MANAGEMENT LIMITED (“SBM”), a wholly-owned subsidiary of the Company, is responsible forinvestment decision-making and risk management of the asset management subsidiary. The asset
management subsidiary’s overall risk management principles seek to maximize the returns derived forthe level of risk to which the asset management company is exposed and seek to minimize the potential
risk of adverse effects on the financial performance. For this reason, the asset management subsidiary

SoftBank Group Corp. ANNUAL REPORT 2021

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Corporate Information200

To manage this risk, the Company continuously monitors exchange rates and manages
exchange rate exposures. The Company also enters into foreign currency forward contracts,
foreign currency swap contracts, and interest rate currency swap contracts to hedge the risk.

not only acquires and sells listed stocks, but also performs derivative transactions related to these listed
stocks, and conducts transactions based on the policies approved by the SBM Investment Committee. In
addition, in order to avoid concentration risk in specific stocks, the asset management subsidiary’s
policies limit individual equity securities to a certain percentage of the total market value of theinvestments made by the asset management subsidiary (except when the market value of a specificstock exceeds a certain percentage of the total market value of the investments made by the asset
management subsidiary due to rising market value; provide that, in this case, an additional investmentin the specific stock is not possible). In addition, as a leverage limitation, the amount of debt and debt
like derivative transactions (e.g. total return swaps, forwards, and futures etc.) will not exceed a certain
percentage of total assets of the asset management subsidiary. If the market value of investments falls
and the total assets of the asset management subsidiary decrease and the leverage ratio exceeds acertain percentage, the Investment Committee will adjust the balance of investment positions or debt
and debt like derivatives so that the leverage percentage falls below a certain percentage. The asset
management subsidiary’s policies require that overall market position is monitored on a daily basis by
the Chief Risk Officer of SBM and reviewed on at least a quarterly basis by the Board of Directors of
SBM. In addition, compliance with the investment policies are reported to the SBM Investment
Committee on at least a monthly basis.

i. Foreign exchange sensitivity analysis
Exposure to foreign exchange risk on financial instruments for SoftBank Group Corp. and its
subsidiaries whose functional currency is Japanese yen is as follows:
U.S. Dollar (Functional currency: Japanese yen)
(Millions of yen)

(Other than the asset management subsidiary)
As the Company operates in a wide range of markets, the Company faces a variety of financial risks(foreign exchange risk, 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.

Table of Contents

Message from Our CEO

As of March 31, 2021

As of March 31, 2021

Net exposure affecting income
before income tax[in liability position]����������������

¥ (252,961)¥ (3,050,851)$ (27,557,140)

Net exposure affecting othercomprehensive income[in asset position] ������������������

21,62728,529257,691

Hong Kong Dollar (Functional currency: Japanese yen)
(Millions of yen)

Net exposure affecting income
before income tax[in asset (liability) position]��������

(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥ (248)¥309,639$2,796,848

Other than the table presented above, major exposures to foreign exchange risk on
subsidiaries whose functional currency is not Japanese yen are as follows:a.	 Market risk(a) Foreign exchange risk
The Company is engaged in international businesses through investments, financial
contributions and the establishment of joint ventures. At investment business, the Company
holds a large number of investments which includes investments denominated in foreign
currencies, mainly through foreign subsidiaries. Also, the Company undertakes transactions
denominated in foreign currencies with foreign parties and through lending to andborrowings from foreign subsidiaries. Consequently, there is foreign exchange risk that arises
from changes in currency rates mainly in the U.S. dollar, Hong Kong dollar and Euro
currencies.

SoftBank Group Corp. ANNUAL REPORT 2021

(Thousands of U.S. dollars)

As of March 31, 2020

Euro currencies (Functional currency: U. S. Dollar)(Millions of yen)

Net exposure affecting income
before income tax[in asset (liability) position]������

Who We Are

Growth Assets(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥ (38,567)¥183,311$1,655,776

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

201

U.S. Dollar

Indian Rupee (Functional currency: U. S. Dollar)(Millions of yen)

Net exposure affecting income
before income tax[in asset position] ������������������

(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥86,815¥84,870$766,597(Millions of yen)

U. S. Dollar (Functional currency: British pound)(Millions of yen)

As of March 31, 2020

Net exposure affecting income
before income tax[in asset (liability) position]������
Net exposure affecting othercomprehensive income[in liability position]����������������

As of March 31, 2021

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Increase in income before
income tax ����������������������������

¥2,530¥30,509$275,576

Decrease in othercomprehensive income before
tax effect ������������������������������

(216)

(285)

(2,574)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥2

¥ (3,096)$ (27,965)(Thousands of U.S. dollars)

As of March 31, 2021

Hong Kong Dollar¥110,355–¥ (27,075)(Millions of yen)

$ (244,558)(3,459)(31,244)

Increase (decrease) in income
before income tax������������������

Net exposure affecting income before income tax comprises the foreign exchange risk
exposures from monetary financial instruments denominated in a foreign currency (including
those used in internal transactions) whose exchange differences are recognized in profit orloss and the foreign exchange risk exposures from derivatives related to forecast
transactions.

(Thousands of U.S. dollars)

The table below presents the effect of a 1% appreciation of the U.S. Dollar against theEuro currencies on income before income tax:

Euro currencies

Net exposure affecting other comprehensive income comprises the foreign exchange risk
exposures from available-for-sale financial assets whose exchange differences are recognizedin other comprehensive income and foreign exchange risk exposures from derivatives (cashflow hedge) related to forecasted transactions.

(Millions of yen)

Increase (decrease) in income
before income tax ����������������

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021¥386

¥ (1,833)$ (16,557)

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 thefinancial instruments with the above foreign exchange risk exposure, assuming that all otherfactors are constant. The analysis does not include the effect of translating assets andliabilities 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 35. Foreign currency exchange rates.”

SoftBank Group Corp. ANNUAL REPORT 2021

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Who We Are

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Financial Section

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202

The table below presents the effect of a 1% appreciation of the U.S. Dollar against the
Indian Rupee on income before income tax:

ii. Foreign currency exchange contracts
Foreign currency exchange contracts, foreign currency swap contracts, and interest ratecurrency swap contracts are entered into, to reduce exposure to foreign exchange risk on theamount 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.”

Indian Rupee(Millions of yen)

Decrease in income before
income tax ��������������������������

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (868)¥ (849)$ (7,669)

Foreign currency exchange contracts to which hedge accounting is applied
As of March 31, 2020

The table below presents the effect of a 1% appreciation of the British pound against the
U.S. Dollar on income before income tax and other comprehensive income (before tax
effect):(Millions of yen)Contract amounts(of which:maturing in morethan one year)

U.S. Dollar(Millions of yen)

Increase (decrease) in income
before income tax ����������������
Increase in othercomprehensive income before
tax effect ������������������������������

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (1,104)¥271$2,448-35

316

Table of Contents

Message from Our CEO

Average rate

Receipt in U.S.
dollars /payment inyen������������

¥646,210(646,210)¥29,422¥ (18,273)¥47,321¥113.34
per $1

Receipt in Euro
currencies/
payment inyen ������������

734,603(734,603)–(89,755)(20,314)¥132.61per €1¥1,380,813(1,380,813)¥29,422¥ (108,028)¥27,007

Financial Section

Corporate Information

Total �����

SoftBank Group Corp. ANNUAL REPORT 2021

Liabilities

Carrying amount(fair value)

Currency swap
contracts(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

AssetsChanges in the fairvalue of hedging
instruments used forrecognition of theineffective portion ofhedging instruments

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth203As of March 31, 2021
(Millions of yen)

AssetsLiabilities

Changes in the fairvalue of hedging
instruments used forrecognition of theineffective portion ofhedging instruments¥ 27,203¥ (10,806)¥ 5,248

5,952(5,499)90,208¥ 33,155¥ (16,305)¥95,456

Contract amounts(of which: maturing
in more than
one year)Carrying amount(fair value)

Average rate

(Thousands of U.S. dollars)

Contract amounts(of which: maturing
in more than
one year)

AssetsLiabilities

Changes in the fairvalue of hedging
instruments used forrecognition of theineffective portion ofhedging instruments$245,714$ (97,606)$ 47,403

53,762(49,671)814,814$299,476$ (147,277)$862,217

Carrying amount(fair value)

Currency swap contracts
Receipt in U.S. dollars / payment in yen�����������������������
Receipt in Euro currencies / payment in yen�����������������
Total ���������������������������������������������������������������������

¥ 534,205(534,205)
615,296(615,296)¥1,149,501(1,149,501)

Table of Contents

Message from Our CEO$ 4,825,264(4,825,264)
5,557,728(5,557,728)$10,382,992(10,382,992)

Changes in the accumulated other comprehensive income after tax related to thederivatives designated as hedging instruments are as follows:

The carrying amounts of the derivative instruments designated as hedging instruments
are recorded as either “Derivative 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 isdetermined based on the quantity of 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 thequalitative assessments as to whether the significant conditions of hedged items andhedging instruments are met or closely matched, or the quantitative assessments as towhether the changes in values of the hedged items and hedging instruments offset eachother against the same risk. The Company confirms if there is an economic relationshipbetween the hedged items and hedging instruments through them.
Any ineffective portion of the hedge has no significance in amounts. The change invalues of hedged items used to recognize the ineffective portion as a basis are similar tothe changes in fair value of hedging instruments.

SoftBank Group Corp. ANNUAL REPORT 2021

¥113.00
per $1¥132.56
per €1(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Balance at the beginning of the period�¥ (43,752)¥16,514$149,164

Amount incurred���������������

17,46592,087

831,786

Reclassification adjustments*1 �

42,801(61,666)(557,004)

Balance at the end of theperiod*2 ���������������������������

¥ 16,514¥46,935$423,946

Currency swap contracts*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
(excluding gain and loss on investments)” in the consolidated statement of income. For the fiscal year ended March 31,
2021, the amount of ¥4,318 million ($39,003 thousand) (for the fiscal year ended March 31, 2020: ¥2,956 million)transferred from cash flow hedges to profit or loss is included in reclassification adjustments. The transfer arises fromdiscontinued hedging relationships when a forecasted transaction is no longer expected to occur, although hedge
accounting has been applied.
*2 A
 s of March 31, 2021, accumulated other comprehensive income after tax includes ¥7,932 million ($71,647 thousand)(as of March 31, 2020: ¥12,359 million) related to discontinued hedging accounting.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

204

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������������������������

¥125,499(17,262)

Currency swap contracts����

152,834(139,180)

Foreign exchange
margin transactions*�������

581,384(–)

Total �����������������������

¥859,717(156,442)(Thousands of U.S. dollars)

As of March 31, 2021

As of March 31, 2020
Carrying amount(fair value)

Carrying amount(fair value)

As of March 31, 2021

Liabilities

Assets(961)$ 1,274,564(27,712)$ 27,242
68,151(63,915)

177,907(30,846)$273,300$ (103,441)

Liabilities¥ (2,168)¥ 141,107(3,068)3,232(9,735)421,877(355,065)

7,545(7,076)3,810,649(3,207,163)

24,792(2,462)

636,163(–)

19,696(3,415)5,746,211(–)

Assets¥ 5,729¥33,753¥1,199,147(358,133)¥ (14,365)

Assets¥ 3,016¥¥30,257

Carrying amount(fair value)

Contract amounts(of which: maturing in
more than one year)

Contract amounts(of which: maturing in
more than one year)¥ (11,452)$10,831,424(3,234,875)

Liabilities$(8,680)* Foreign exchange margin transactions are operated by the subsidiary, YJFX, Inc.’s foreign exchange margin transactions business.

i. Price sensitivity analysis for securities
The tables below present the effect of a 10% decrease in market price regarding thesecurities traded in active markets (excluding securities subject to insignificant risk of change
in value such as MMF) on income before income tax and other comprehensive income
before tax effect, assuming that all other factors are constant.

(b) Price risk
(The asset management subsidiary)
As the asset management subsidiary is engaged in various transactions such as acquisitionand sale of listed stocks, derivative transactions related to listed stocks, and credit transactions, the asset management subsidiary faces price risk in its operations. To manage the pricerisk, the overall market prices of the portfolio are monitored on a daily basis by the fundadministrator and are reported to SBM Valuation Committee (Chief Executive Officer, Chief
Risk Officer, Chief Finance Officer and Chief Operating Officer). Portfolio pricing will be
reviewed at least on a quarterly basis by the Board of Directors of SBM. In addition,compliance with the pricing policy is reported to the SBM Investment Committee on amonthly basis.

( i ) Securities held for sale(Millions of yen)

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Fiscal year ended
March 31, 2021–

¥ (208,551)$ (1,883,759)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Decrease in income before
income tax���������������������������

¥ (134,395)¥ (854,092)$ (7,714,678)

Decrease in othercomprehensive income before
tax effect������������������������������

(1,110)(2,102)(18,987)

Decrease in income before
income tax���������������������������

(Other than the asset management subsidiary)
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.

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2020¥

( ii ) Other securities(Millions of yen)

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section(Thousands of U.S. dollars)

Corporate Information

205

ii. Price sensitivity analysis for derivative instruments
The table below presents the effect of changes in market price of underlying assets regarding
the long and short call options of listed stocks, total return swap contracts and forward
contracts on income before income tax, assuming that all other factors are constant.

(Thousands of U.S. dollars)

Carrying
amount(liability)

Long call option oflisted stocks in asset
management
subsidiaries(Millions of yen)

Carrying
amount(liability)

Long call option oflisted stocks in asset
management
subsidiaries
Short call option oflisted stocks in asset
management
subsidiaries¥176,627

Assumption
for market
price change

Fair value under
the assumption(liability)

Effect on
income before
income tax

30% increase¥525,367
275,384
104,389
27,096(60,229)(20,500)(3,347)(142)
86,33929,891(26,557)¥348,740
98,757(72,238)(149,531)(50,947)(11,218)
5,935
9,140
84,672
28,224(28,224)(83,005)
8,175
5,640
3,104
569

(84,672)
3,803
1,268
(1,268)(3,803)

10% increase
10% decrease
30% decrease
30% increase(9,283)

Total return swap
contracts related tolisted stocks in asset
management
subsidiaries
Forward contracts
related to listed stocks
in asset management
subsidiaries

SoftBank Group Corp. ANNUAL REPORT 2021

10% increase
10% decrease
30% decrease
30% increase

1,667

10% increase
10% decrease
30% decrease
30% increase

4,372

10% increase
10% decrease
30% decrease

Contract
amount¥1,481,995

Short call option oflisted stocks in asset
management
subsidiaries

297,940

Total return swap
contracts related tolisted stocks in asset
management
subsidiaries

Table of Contents

Forward contracts
related to listed stocks
in asset management
subsidiaries

280,572

Fair value under
the assumption(liability)

Effect on
income before
income tax

30% increase$4,745,434
2,487,436
942,905
244,748(544,025)(185,168)(30,232)(1,283)779,866
269,994(239,879)$3,150,032
892,033(652,498)(1,350,655)(460,184)(101,328)
53,60982,558764,809
254,936(254,936)(749,752)
73,84250,94428,0375,140(764,809)
34,351
11,453(11,453)(34,351)

10% increase
10% decrease
30% decrease
30% increase(83,850)

10% increase
10% decrease
30% decrease
30% increase

15,057

10% increase
10% decrease
30% decrease
30% increase

39,491

10% increase
10% decrease
30% decrease

Contract
amount$13,386,279

2,691,175

2,534,297

74,998In addition, the Company entered into prepaid forward contracts which are settled by
Alibaba shares held by the Company. The contracts include collar transactions where a cap
and floor are set for the number of shares settled and floor transactions where a floor is set
for the number of shares settled. Also, the Company entered into a call spread contract
associated with the prepaid forward contracts which are settled by Alibaba shares. The collartransactions, the floor transactions and the call spread contracts are classified as a derivative
instrument and their fair values are affected by the price of Alibaba shares. Derivative gain
and loss, which occurs depending on fluctuation of the price of Alibaba shares, are recognized through profit or loss.
Fair values of the collar transactions, the floor transactions and the call spread transactions
are composed of intrinsic value and time value. The effect of a 10% increase and a 10%
decrease in the price of Alibaba shares on income before income tax due to fluctuation of
intrinsic value are a loss of ¥138,960 million ($1,255,171 thousand) and a gain of ¥156,548
million ($1,414,037 thousand), respectively, assuming that all other factors are constant. In
case of consideration of time value, the impact of the gain and loss are decreased.
The details of the prepaid forward contracts and the call spread contracts are described in“*5” in “(1) Components of interest-bearing debt” under “Note 25. Interest-bearing debt.”

8,303

Message from Our CEO$1,595,402

Assumption
for market
price change

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

206

iii. Option contracts
The details of option contracts are as follows:

Option contracts to which hedge accounting is not applied(Millions of yen)

As of March 31, 2021

As of March 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

Carrying amount(fair value)

AssetsLong call option of listed stocks in asset management subsidiaries����������

¥(Thousands of U.S. dollars)

As of March 31, 2020–

Liabilities¥–

Assets¥176,627¥

Liabilities

Assets–$ 1,595,402

Liabilities$–

Short call option of listed stocks in asset management subsidiaries ��������

–

–

–

(9,283)–(83,850)

Contingent consideration relating to acquisition of
T-Mobile shares*1 ������������������������������������������������������������������������������������

––460,709–

4,161,404–

Prepaid forward contracts using Alibaba shares*2������������������������������������

5,009

–

661,615(28,096)

5,976,109(253,780)

Call spread contracts relating to prepaid forward contracts using Alibaba
shares*2 ��������������������������������������������������������������������������������������������������

––42,059–379,902–

Short call option for T-Mobile shares to Deutsche Telekom AG* ������������

–

–

–

(204,821)–(1,850,068)

Contingent value rights relating to sale of T-Mobile shares*4������������������

––34,901–

315,247–

WeWork warrants with exercise price of $0.01 per share*5 ��������������������

17,936

–

2,861

–

25,842–

Long call option����������������������������������������������������������������������������������������

2,804

–

24,604

Short call option ��������������������������������������������������������������������������������������

–

(878)

Total������������������������������������������������������������������������������������������������������

¥ 25,749

3

¥

(878)

¥ 1,403,376–

222,238

–

(43)

–

(388)

¥ (242,243)$12,676,144$ (2,188,086)*1 Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. The details are described in “(1) Sprint” under “Note 6. Discontinued operations.”*2 The details of prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward contracts using Alibaba shares are described in “*5” in “(1) Components of interest-bearing debt” under “Note 25. Interest-bearing debt.”*3 Call options for T-Mobile shares which the Company granted to Deutsche Telekom in relation to the transfer of T-Mobile share. The details are described in “(The transfer of T-Mobile shares)” under “Note 52. Additional information.”*4 Contingent value rights received in relation to the disposal of T-Mobile shares in a private placement through a trust. The details are described in “(The transfer of T-Mobile shares)” under “Note 52. Additional information.”*5 The warrants that are convertible into preferred stock at an exercise price of $0.01 per share that the Company acquired as consideration for the purchase commitment of the unsecured notes issued by WeWork and the credit support for the payment guarantees which
financial institutions provide for WeWork. The details are described in “(3) Details and progress of the agreement between the Company and WeWork” under “Note 22. Investments accounted for using the equity method.”

SoftBank Group Corp. ANNUAL REPORT 2021

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Who We Are

Growth Assets

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Financial Section

Corporate Information207

iv. Swap contracts
The details of swap contracts are as follows:

Swap contracts to which hedge accounting is not applied(Millions of yen)

As of March 31, 2021

As of March 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

Carrying amount(fair value)

Liabilities

AssetsSwap contracts related to electricity sales price����������������������������������������

¥Total return swap contracts related to listed stocks in asset management
subsidiaries����������������������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������������������

–

¥

–
¥

(Thousands of U.S. dollars)

As of March 31, 2020

–

¥

–

Assets¥Liabilities–¥(7,495)$

AssetsLiabilities–$ (67,699)

–

7,057

(5,390)63,743(48,686)–¥ 7,057¥ (12,885)$ 63,743$ (116,385)

v. Forward contracts
The details of forward contracts are as follows:
Forward contracts to which hedge accounting is not applied(Millions of yen)

As of March 31, 2021

As of March 31, 2021

Carrying amount(fair value)

Carrying amount(fair value)

Carrying amount(fair value)

AssetsTender offer for WeWork shares*������������������������������������������������������������

¥Forward contracts related to listed stocks in asset management
subsidiaries����������������������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������������������

–Liabilities¥–¥(Thousands of U.S. dollars)

As of March 31, 2020–¥

AssetsLiabilities–¥ (76,823)

–

4,372

–

¥ 4,372–¥

AssetsLiabilities–$ (693,912)–

39,491–¥ (76,823)$ 39,491$ (693,912)$* In March 2021, the WeWork Investment Subsidiary commenced a tender offer to purchase WeWork common shares and preferred shares. The difference between the valuation amount of common shares and preferred shares expected to be purchased and the expectedacquisition amount is recorded as “Derivative financial liabilities (current).” The details are described in “(3) Details and progress of the agreement between the Company and WeWork” under “Note 22. Investments accounted for using the equity method.”i. Interest rate sensitivity analysis
The table below presents the effect of a 1% increase in interest rates regarding the floatinginterest rate debt on income before income tax in the consolidated statement of income,assuming that all other factors are constant. The analysis does not include floating interest
rate debt whose interests are fixed by interest rate swaps and other derivative transactions.

(c) Interest rate risk
The Company raises funds through issuing interest-bearing debt. Certain interest-bearing
debt is issued 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, theCompany 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 and interest rate currency swaps, in orderto hedge interest rate fluctuation risk, converting floating interests into fixed interests. For
floating interest rate debt, the Company continuously monitors interest rate fluctuations.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO(Millions of yen)

Decrease in income before
income tax��������������������������

Who We Are

Growth Assets(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (53,268)¥ (74,181)$ (670,048)

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

208

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 morethan one year)

Interest rate swap
Receipt infloating rate/
Payment in fixed
rate �����������������

¥500,500(500,000)

AssetsLiabilities

Changes in the fairvalue of hedging
instruments used
for recognitionof the ineffective
portion of hedging
instruments¥–¥ (5,325)¥80

Carrying
amount(fair value)

Average rate

1.96%

(Thousands of U.S. dollars)

As of March 31, 2021

As of March 31, 2020

Contract amounts(of which:maturing in morethan one year)¥500,000(500,000)

AssetsLiabilities

Changes in the fairvalue of hedging
instruments used
for recognitionof the ineffective
portion of hedging
instruments¥–¥ (5,247)¥78

Carrying
amount(fair value)

The carrying amounts of the derivative instruments designated as hedging instruments arerecorded as “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 liabilities.
The above interest rate contracts are designated as cash flow hedges. At the inception of
the hedging relationship, the hedge ratio of the hedging relationship is determined based on
the quantity of the hedged items and the quantity of the hedging instruments, basically inthe ratio of one to one.
For the purpose of hedge effectiveness assessment, the Company conducts the qualitative
assessments as to whether the significant conditions of hedged items and hedging
instruments are met or closely matched, or the quantitative assessments as to whether thechanges in values of the hedged items and hedging offset each other against the same risk.
The Company confirms if there is an economic relationship between the hedged items andhedging instruments through them.
Any ineffective portion of the hedge has no significance in amounts. The change in valuesof hedged items used to recognize the ineffective portion as a basis are similar to thechanges in fair value of hedging instruments.

Average rate

1.96%

As of March 31, 2021

Contract amounts(of which:maturing in morethan one year)$4,516,304(4,516,304)

AssetsLiabilities

Changes in the fairvalue of hedging
instruments used
for recognitionof the ineffective
portion of hedging
instruments$–$ (47,394)$705

Carrying
amount(fair value)

Changes in the accumulated other comprehensive income after tax related to thederivatives designated as hedging instruments are as follows:(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Balance at the beginning of
the period ������������������������

¥ (2,039)¥ (3,386)$ (30,584)

Amount incurred����������������

(5,405)

819

7,398

Reclassification
adjustments*��������������������

604(1,406)(12,701)

Transfer to accumulated
other comprehensive
income directly relating toassets classified as held forsale ����������������������������������

3,454

–

–

Balance at the end of theperiod ������������������������������

¥ (3,386)¥ (3,973)$ (35,887)

Interest rate swap

* Reclassification adjustments represent amounts of accumulated other comprehensive income transferred to profit or loss
when the hedged item affects profit or loss, and are recorded as “Derivative gain and loss (excluding gain and loss on
investments)” in the consolidated statement of income. For the fiscal years ended March 31, 2020 and 2021, there wereno transactions for which hedge accounting was discontinued because the hedged transactions had not been expected tooccur.

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Interest rate contracts to which hedge accounting is not applied(Millions of yen)

Carrying amount(fair value)

Contract amounts(of which:maturing in
more than one year)

Interest rate swap ��
Interest ratecurrency swap ����
Total����������������

¥386,763(114,688)
21,862(21,862)¥408,625(136,550)

Assets¥¥7

Liabilities

Contract amounts(of which:maturing in
more than one year)¥ (8,690)¥ 77,497(77,497)

371

–

378

¥ (8,690)(Other than the asset management subsidiary)
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,
the Company performs controls around the due date and balance for each customer inaccordance with its internal customer credit management rules and regularly monitors major
customers’ credit status.
Derivative transactions executed and maintained by the Company are conducted andcontrolled based on the Company’s internal rules and procedures for derivative transactions, andthose transactions engaged in are limited to those with financial institutions with high credit
ratings in order to reduce 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 andguaranteed 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
Table of Contents

Carrying amount(fair value)
Assets¥42,329(41,314)¥119,826(118,811)

b. Credit risk
(The asset management subsidiary)
The asset management subsidiary has the credit risk of the counterparties regarding deposits,
receivables against trading brokers, securities, derivatives, etc., and the counterparties are concentrated
in several brokers. In addition, of the securities pledged as collateral for collateralized borrowings,
securities that can be sold or re-pledged by the collateral recipient are exposed to the credit risk of thebroker who is the collateral recipient. To mitigate these credit risks, the asset management subsidiary
does business with brokers with high credit ratings. The credit risk of counterparties is monitoredcontinuously by the Chief Risk Officer and Chief Operating Officer of SBM.

SoftBank Group Corp. ANNUAL REPORT 2021

(Thousands of U.S. dollars)

As of March 31, 2021

As of March 31, 2020

Message from Our CEO

–

¥

1,814
¥ 1,814

Liabilities

Contract amounts(of which:maturing in
more than one year)(2,835)$ 700,000(700,000)(1,687)¥

As of March 31, 2021

(4,522)Carrying amount(fair value)
AssetsLiabilities–$ (25,608)

16,385(15,238)$ 16,385$ (40,846)$

382,341(373,173)$1,082,341(1,073,173)

lifetime expected credit risk. For receivables other than trade receivables, contract assets, andlending commitments, the Company measures future expected credit losses in consideration of theassessment of a 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 considered. For receivables other than trade receivables and contract assets, theCompany measures the 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, theexpected 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 of credit risk and the type of transactions. The Company then assesses the existence ofobjective evidence of impairment for each group considering the past default rate.
The Company measures expected credit losses individually for each receivable as financial
assets that have been impaired when the events of default as detailed below have occurred,
resulting in estimated 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 theentire amount of or a part of the financial assets, the impairment losses are directly deductedfrom the carrying amount.
Details of lending commitments and credit guarantees are described in “(1) Lending
commitments” and “(2) Credit guarantees” under “Note 50. Contingency.”
There were no significant financial or non-financial assets acquired as a result of foreclosure ofcollateral or enforcement of other credit enhancements during the years ended March 31, 2020
and 2021.
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(a) Carrying amounts of financial assets subject to allowance for doubtful accounts
i. Trade receivables
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 other than trade receivables. Exposure to credit risk on trade receivables attributable to the credit card business is included in thereceivables other than trade receivables.
The table below presents the carrying amounts related to an aging analysis of trade receivables and allowance for doubtful accounts.
As of March 31, 2020
(Millions of yen)

Past due
Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year

Total

Trade receivables������������������������������������������������������������������

¥1,105,791¥65,753¥33,181¥16,954¥8,734¥11,364¥1,241,777

Allowance for doubtful accounts ������������������������������������������

(3,490)(935)(1,736)(1,858)(4,484)(7,109)(19,612)

Total ��������������������������������������������������������������������������������

¥1,222,165

As of March 31, 2021
(Millions of yen)

Past due
Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year

Total

Trade receivables�����������������������������������������������������������������

¥1,050,688¥65,453¥23,014¥14,970¥5,318¥8,508¥1,167,951

Allowance for doubtful accounts�����������������������������������������

(3,307)(803)(1,184)(1,365)(3,040)(2,309)(12,008)

Total �������������������������������������������������������������������������������

¥1,155,943(Thousands of U.S. dollars)

Past due
Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year

Total

Trade receivables������������������������������������������������������������������

$9,490,454$591,212$207,876$135,218$48,035$76,849$10,549,644

Allowance for doubtful accounts������������������������������������������

(29,871)(7,253)(10,695)(12,330)(27,459)(20,856)

Total ��������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

(108,464)$10,441,180

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ii. Financial assets other than trade receivables
The table below presents an aging analysis of financial assets other than trade receivables. The amounts in the analysis are presented at the carrying amount before netting the allowance for doubtful accounts.
As of March 31, 2020
(Millions of yen)

Carrying amounts
12 month expected credit losses

Other receivables��������������������������������������������������������������������������

Lifetime expected credit losses

Before due

Past due

Other than credit-impaired
financial assets

Credit-impaired
financial assets¥ 886,355¥25,891¥ 1,293¥11,481

Purchased or originatedcredit-impaired financial
assetsTotal–¥ 925,020¥

Investment securities��������������������������������������������������������������������

331,671

–

–

–

–

331,671

Other financial assets��������������������������������������������������������������������

1,107,957

12,62247,67645,83967,6301,281,724

Total����������������������������������������������������������������������������������������

¥2,325,983¥38,513¥48,969¥57,320¥67,630¥2,538,415

Investment securities are mostly debt financial assets at FVTOCI.
As of March 31, 2021
(Millions of yen)

Carrying amounts
12 month expected credit losses

Other receivables�����������������������������������������������������������������������������

Lifetime expected credit losses

Before due

Past due

Other than credit-impaired
financial assets¥1,060,981¥26,167¥ 1,635

Credit-impaired
financial assets¥12,516

Purchased or originatedcredit-impaired financial
assets

¥

Total

–

¥1,101,299

Investment securities�����������������������������������������������������������������������

380,832

–

–

–

–

380,832

Other financial assets�����������������������������������������������������������������������

2,111,585

11,66450,05542,68921,241

2,237,234

Total�������������������������������������������������������������������������������������������

¥3,553,398¥37,831¥51,690¥55,205¥21,241¥3,719,365(Thousands of U.S. dollars)

Carrying amounts
12 month expected credit losses

Other receivables�����������������������������������������������������������������������������

Lifetime expected credit losses

Before due

Past due

Other than credit-impaired
financial assets

Credit-impaired
financial assets$ 9,583,426$236,356$ 14,768$113,052

Purchased or originatedcredit-impaired financial
assets

$

–

Total

$ 9,947,602

Investment securities�����������������������������������������������������������������������

3,439,906

–

–

–

–

3,439,906

Other financial assets�����������������������������������������������������������������������

19,073,119

105,356

452,127

385,593

191,862

20,208,057

Total�������������������������������������������������������������������������������������������

$32,096,451$341,712$466,895$498,645$191,862$33,595,565

Investment securities are mostly debt financial assets at FVTOCI.

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(b) Changes in allowance for doubtful accounts
Allowance for doubtful accounts related to contract assets are included in trade receivables.
In addition, trade receivables generated by the credit card business includes interest income.
The Company measures expected credit losses for receivables generated by the credit cardbusiness by using the same method for the receivables other than trade receivables. As aresult, the allowance for doubtful accounts are included in the financial assets other thantrade receivables.
i. Trade receivables
The table below presents changes in the allowance for doubtful accounts for trade receivables.
For the fiscal year ended March 31, 2020
(Millions of yen)

Allowance for doubtful accounts
Lifetime expected credit losses
Other than credit-impaired
financial assets

Credit-impaired
financial assets

Total¥37,932
58,419(52,721)¥16,047
7,740(13,535)¥53,979
66,159(66,256)

Balance at the beginning of theperiod�����������������������������������������
Provisions �������������������������������������
Utilized�����������������������������������������
Transfer to assets classified as held
for sale ���������������������������������������

(33,701)(3,768)¥ 6,161

Other �������������������������������������������
Balance at the end of the period ���(2,772)
5,971¥13,451(36,473)
2,203¥19,612For the fiscal year ended March 31, 2021
(Millions of yen)

Allowance for doubtful accounts
Lifetime expected credit losses
Other than creditimpaired financial assets

Balance at the beginning of theperiod��������������������������������������
Provisions ����������������������������������
Utilized��������������������������������������
Loss of control����������������������������
Other ����������������������������������������
Balance at the end of the period

SoftBank Group Corp. ANNUAL REPORT 2021

¥ 6,161
1,362(56)(1,120)(1,053)¥ 5,294

Credit-impaired
financial assets¥13,451
4,381(4,701)(6,672)
255¥ 6,714

Table of Contents

Total¥19,612
5,743(4,757)(7,792)(798)¥12,008

Message from Our CEO(Thousands of U.S. dollars)

Allowance for doubtful accounts
Lifetime expected credit losses
Other than creditimpaired financial assets

Credit-impaired
financial assets

Total

Balance at the beginning of theperiod��������������������������������������

$55,650$121,498

Provisions ����������������������������������

12,302

39,572

51,874

Utilized��������������������������������������

(506)(10,117)(42,462)(60,266)(42,968)(70,383)

Loss of control����������������������������

$177,148

Other ����������������������������������������

(9,510)2,303(7,207)

Balance at the end of the period

$47,819$ 60,645$108,464

ii. Financial assets other than trade receivables
The table below presents changes in the allowance for doubtful accounts for financial assets
other than trade receivables. The allowance for doubtful accounts is mainly for loans.
For the fiscal year ended March 31, 2020
(Millions of yen)

Allowance for doubtful accounts
Lifetime expected credit losses
12 month
expected
credit losses

Other thancredit-impaired
financial assets

Purchasedor originatedcredit-impaired
financial assets

Creditimpaired
financial assets

Total

Balance at the
beginning of theperiod������������������

¥5,061¥ 2,054¥38,954¥–¥ 46,069

Provisions ��������������

6,322

33,521

17,37965,913*

123,135

Utilized������������������

(1,833)(57)(11,091)–(12,981)Transfer to assets
classified as held
for sale ����������������

(2,778)–––(2,778)Other ��������������������

(1,006)(2,029)451–(2,584)

Balance at the endof the period��������

¥5,766¥33,489¥45,693¥65,913¥150,861* For the fiscal year ended March 31, 2020, the Company recorded the total amount of ¥13,265 million as undiscounted
expected losses at initial recognition on purchased or originated credit-impaired financial assets.

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213

For the fiscal year ended March 31, 2021
(Millions of yen)

Allowance for doubtful accounts
Lifetime expected credit losses
12 month
expected
credit losses

Other thancredit-impaired
financial assets

Creditimpaired
financial assets

Purchasedor originatedcredit-impaired
financial assets

Total

Balance at the
beginning of theperiod������������������

¥5,766¥33,489¥45,693¥65,913¥150,861

Provisions ��������������

1,897

4,876

16,972

8,925*

32,670Utilized������������������

(86)

(14)

(13,455)(53,612)(67,167)

Reversal ����������������

(218)

–

(852)

(12,301)(13,371)

Other ��������������������

887

669

(2,510)–(954)

Balance at the endof the period��������

¥8,246¥39,020¥45,848¥8,925¥102,039

c. Liquidity risk
(The asset management subsidiary)
The asset management subsidiary has the liquidity risk of having to secure sufficient cash
depending on the settlement of the investments and the status of investment position. To
reduce these liquidity risks, the investments are primarily targeted at listed stocks that are
actively traded and easily redeemable.
(Other than the asset management subsidiary)
In order to prevent and reduce liquidity risk, the Company maintains access to diversified
fundraising sources 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.

(Thousands of U.S. dollars)

Allowance for doubtful accounts
Lifetime expected credit losses
12 month
expected
credit losses

Other thancredit-impaired
financial assets

Creditimpaired
financial assets

Purchasedor originatedcredit-impaired
financial assets

Balance at the
beginning of theperiod������������������

$52,082$302,493$412,727$595,366

Provisions ��������������

17,13544,043

153,30280,616*

295,096

Utilized������������������

(777)

(127)

(121,534)(484,256)(606,694)

Reversal ����������������

(1,969)–(7,696)(111,110)(120,775)

Other ��������������������

8,012

6,043

(22,672)–(8,617)

Balance at the endof the period��������

$74,483$352,452$414,127$80,616$921,678

Total$1,362,668* For the fiscal year ended March 31, 2021, the Company recorded the total amount of ¥10,325 ($93,262 thousand) million as
undiscounted expected losses at initial recognition on purchased or originated credit-impaired financial assets.

Provisions for and reversal of doubtful accounts are recorded in “Selling, general and administrative
expenses” and “Other loss” in the consolidated statement of income.

(a) Commitment lines of credit and other credit facilities
The Company has entered into commitment lines of credit and other credit facilities withvarious financial institutions to reduce liquidity risk. As of March 31, 2021, the undrawn
amounts of the Company’s credit facilities are ¥944,293 million ($8,529,428 thousand) (asof March 31, 2020: ¥527,862 million).
In addition, the asset management subsidiary is engaged in transactions for acquisition of
investments using borrowings and has entered into agreement with various financial
institutions in order to borrow funds in response to the net position of investments andindebtedness of the asset management subsidiary. As of March 31, 2021, the amounts that
could be additionally borrowed were ¥461,869 million ($4,171,881 thousand) (as of March
31, 2020: none).
Also, the asset management subsidiary started a business and has entered into contracts
similar to the credit facilities, and the contracts that are formally set with credit facilities but
are considered to be equivalent to ordinary borrowings have increased due to the diversification of the Company’s financing. In order to clarify the liquidity position as of the end of
fiscal year, only the undrawn amounts of Company’s credit facilities are described since
March 31, 2021.
Note:
Certain commitments above contain financial covenants. The details are described in “(2) Financial covenants” under “Note
25. Interest-bearing debt.”

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(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, 2020
(Millions of yen)

Carrying amount

Aggregation ofredemption scheduleWithin 1 year

1 year to 2 years

2 years to 3 years

3 years to 4 years

4 years to 5 years

More than 5 years

Non-derivative financial liabilities
Interest-bearing debt
Short-term borrowings����������������������������

¥ 1,529,458¥ 1,532,008¥1,532,008

Commercial paper ����������������������������������

206,000

206,000

206,000

–

–

–

–

–

Long-term borrowings(including current portion)����������������������

5,771,044

5,803,721

1,955,283

1,289,287

906,918

558,319

951,273

142,641

Corporate bonds(including current portion)����������������������

5,428,821

5,470,964

160,000

865,000

580,079

652,199

666,458

2,547,228

Financial liabilities relating to sale of shares by
prepaid forward contract������������������������

196,101

201,277–

201,277

–

–

–

–

Installment payables��������������������������������

458

458

186

146

54

44

13

15

Lease liabilities����������������������������������������������

1,140,326

1,140,326

378,383

267,701

175,577

96,09145,992

176,582

Deposits for banking business*1 ������������������

894,124

894,250873,099

6,770

6,278

2,661

2,331

Third-party interests in SVF1������������������������

4,584,419

4,584,419*2

24,691*3

–

–

–

–

Trade and other payables����������������������������
Other financial liabilities*5 ��������������������������

1,585,326
304,180

1,585,326
304,180

1,560,287
248,010

7,693
9,243

2,779
20,783

158
2,769

1
3,393

14,40819,982

Total����������������������������������������������������

¥21,640,257¥21,722,929¥6,937,947¥2,647,117¥1,692,468¥1,312,241¥1,669,461¥ 7,463,695

¥

¥

¥

¥

¥

¥

¥

¥

¥

–

¥

–

¥

–

¥

–

¥

–

3,111
4,559,728*4

Derivative financial liabilities*6
Derivative financial liabilities
Foreign currency exchange contracts*7����������
Option contracts��������������������������������������

878
14,015Interest rate contracts������������������������������

122,393878
14,42156

Other������������������������������������������������������
Total����������������������������������������������������

122,393¥

137,342

2,209
878
6,618

56
¥

137,748(2,346)
–
2,961

56
¥

9,761

–
2,440

–
¥

615

18,98013,285
–
1,205

–
¥

21,420–424–¥

14,490(947)

91,212
–
773

–
¥

(523)

–
¥

91,985*1 Deposits for the banking business payable on demand are included in “Within 1 year.”*2 The amount represents the amounts that would have been distributed to Third-party Investors in accordance with the limited partnership agreement if SVF1 had been liquidated as of March 31, 2020.
*3 The amount represents the contractual distributions or repayments to be made within a year that have been announced from SVF1 to Third-Party Investors as of March 31, 2020.
*4 When disposal of investments becomes relatively certain, the portion of third-party interests in SVF1 which is available for distributions and repayments will be broken down by corresponding maturity dates.
*5 The amounts of “Carrying amount” and “Within 1 year” include ¥145,133 million of provisions for allowance for loan commitment losses related to acquired unsecured notes issued by WeWork and allowance for loss on valuation of ¥89,202 million for the financial guarantee
contract related to the credit support provided by financial institutions to WeWork. The Details are described in“(3) Details and progress of the agreement between the Company and WeWork” under Note 22. Investments accounted for using the equity method.”*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.

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Corporate Information215

As of March 31, 2021

(Millions of yen)

Carrying amount

Aggregation ofredemption scheduleWithin 1 year

1 year to 2 years

2 years to 3 years

3 years to 4 years

4 years to 5 years

More than 5 years

Non-derivative financial liabilities
Interest-bearing debt
Short-term borrowings����������������������������

¥ 2,637,401¥ 2,637,560¥ 2,637,560

Commercial paper ����������������������������������

409,201

409,201

409,201

–

–

–

–

–

Long-term borrowings(including current portion)����������������������

6,830,406

6,863,649

2,090,606

2,181,410

809,343

1,442,276

189,794

150,220

Corporate bonds(including current portion)��������������������

5,549,540

5,583,044

805,969

513,066

640,008

627,409

1,051,485

1,945,107

Financial liabilities relating to sale of sharesby prepaid forward contract ������������������

3,085,739

3,104,068

1,801,124

910,373

279,923

112,648––

Installment payables��������������������������������

688

688

232

149

142

112

45

8

Lease liabilities��������������������������������������������

1,035,001

1,035,001

307,447

209,749

122,099

69,721

58,133

267,852

Deposits for banking business*1 ������������������

1,128,439

1,128,524

1,109,254

7,114

5,449

2,205

1,583

Third-party interests in SVF1������������������������

6,601,791

6,601,791*2

–

–

–

–

6,601,791*3

Trade and other payables����������������������������

1,970,275

1,970,275

1,946,876

8,957

1,473

34

11

12,924

Other financial liabilities*4 ��������������������������

447,493¥29,695,974

447,493¥29,781,294

51,285¥11,159,554

363,028¥4,193,846

3,194¥1,861,631

2,764¥2,257,169

1,034¥1,302,085

26,188¥ 9,007,009

¥

¥

¥

¥

¥

¥

¥

¥

Total����������������������������������������������������

¥

–

–

¥

–

¥

–

¥

–

¥

–

2,919

Derivative financial liabilities*5
Derivative financial liabilities
Foreign currency exchange contracts*6 ��������

27,75727,757431

10,155(693)(2,273)

20,326(189)

Option contracts��������������������������������������

242,243

242,243

242,243

–

–

–

–

Interest rate contracts������������������������������

9,769

10,288

3,650

3,203

1,584

455

1,396

–

Swap contracts����������������������������������������

12,885

12,885

12,885

–

–

–

–

–

Forward contracts������������������������������������

76,82376,82376,823

–

–

–

–

–

Other������������������������������������������������������

101

101

101

–

–

–

–

–

Total����������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021¥

369,578¥

370,097

Table of Contents¥

336,133

Message from Our CEO

Who We Are¥

13,358Growth Assets

¥

891

¥

(1,818)

Management: The Foundation Supporting Our Growth¥

Financial Section

21,722–¥

Corporate Information

(189)

216

As of March 31, 2021

(Thousands of U.S. dollars)

Carrying amount

Aggregation ofredemption scheduleWithin 1 year

1 year to 2 years

2 years to 3 years

3 years to 4 years

4 years to 5 years

More than 5 years

$

$

$

$

$

Non-derivative financial liabilities
Interest-bearing debt
Short-term borrowings����������������������������

$ 23,822,609$ 23,824,045$ 23,824,045

Commercial paper ����������������������������������

3,696,152

3,696,152

3,696,152

–

–

–

–

–

Long-term borrowings(including current portion)����������������������

61,696,377

61,996,649

18,883,624

19,703,821

7,310,478

13,027,513

1,714,335

1,356,878

Corporate bonds(including current portion)��������������������

50,126,818

50,429,446

7,280,002

4,634,324

5,780,941

5,667,139

9,497,652

17,569,388

Financial liabilities relating to sale of sharesby prepaid forward contract ������������������

27,872,270

28,037,829

16,268,847

8,223,042

2,528,435

1,017,505––

Installment payables��������������������������������

6,215

6,215

2,096

1,346

1,283

1,012

406

72

Lease liabilities��������������������������������������������

9,348,758

9,348,758

2,777,048

1,894,580

1,102,872

629,762525,0932,419,403

Deposits for banking business*1 ������������������

10,192,747

10,193,515

10,019,456

64,25849,21919,917

14,299

Third-party interests in SVF1������������������������

59,631,388

59,631,388*2

–

–

–

–

–

59,631,388*3

Trade and other payables����������������������������

17,796,721

17,796,721

17,585,367

80,905

13,305307

99116,738

Other financial liabilities*4 ��������������������������

4,042,028$268,232,083

4,042,028$269,002,747

463,237$ 100,799,874

3,279,090$ 37,881,366

28,850$ 16,815,383

24,966$ 20,388,121

9,340$ 11,761,224

236,545$ 81,356,778

$

$

$

$

$

$

$

$

Total����������������������������������������������������

–

–

–

–

–

26,366

Derivative financial liabilities*5
Derivative financial liabilities
Foreign currency exchange contracts*6 ��������

250,718

250,718

3,893

91,726(6,260)(20,531)

183,597(1,707)

Option contracts��������������������������������������

2,188,086

2,188,086

2,188,086

–

–

–

–

Interest rate contracts������������������������������

88,24092,92832,96928,931

14,308

4,110

12,610–Swap contracts����������������������������������������

116,385

116,385

116,385

–

–

–

–

–

Forward contracts������������������������������������

693,912

693,912

693,912

–

–

–

–

–

Other������������������������������������������������������

912

912

912

–

–

–

–

–

Total����������������������������������������������������

$3,338,253$

3,342,941$

3,036,157$

120,657

$

8,048

$

(16,421)$

196,207–$(1,707)*1 Deposits for the banking business payable on demand are included in “Within 1 year.”*2 The amount represents the amounts that would have been distributed to Third-Party Investors in accordance with the limited partnership agreement if SVF1 had been liquidated as of March 31, 2021.
*3 When disposal of investments becomes relatively certain, the portion of third-party interests in SVF1 which is available for distributions and repayments will be broken down by corresponding maturity dates.
*4 The amounts of “Carrying amount” and “Within 1 year” include ¥24,381 million ($220,224 thousand) of allowance for loss on valuation for the financial guarantee contract related to the credit support provided by financial institutions to WeWork and ¥10,218 million ($92,295 thousand)of allowance for loan commitment losses related to acquired unsecured notes issued by WeWork. The Details are described in“(3) Details and progress of the agreement between the Company and WeWork” under Note 22. Investments accounted for using the equity method.”*5 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.
*6 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 credit guarantees, which are detailed in “(1) Lending commitments” and “(2) Credit guarantees” in “Note 50.
Contingency.”
Average interest rates of the interest-bearing debts and lease liabilities are described in “(1) Component of interest-bearing debt” in “Note 25. Interest-bearing debt” and “Note 20. Leases.”
SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information217

(3) Categories of financial instruments
Components of financial instruments (excluding cash and cash equivalents) by category are as follows:
As of March 31, 2020
(Millions of yen)

Financial assets
at FVTPL

Derivatives
designated as hedges

Debt financial assets
at FVTOCI

Equity financial assets
at FVTOCI

Financial assets at
amortized cost

Total

Financial assets
Current assets
Trade and other receivables���������������������������������������������������������������

¥Other financial assets �����������������������������������������������������������������������

–

¥

–

197,194

¥

–

–

¥

46,736–¥ 2,072,326

1,600

67,957¥2,072,326
313,487

Non-current assets
Investments from SVF1 and SVF2 accounted for using FVTPL �������������

6,892,232

–

–

–

–

6,892,232

Investment securities�������������������������������������������������������������������������

809,233–

308,345

70,60723,326

1,211,511

Derivative financial assets �����������������������������������������������������������������

29,85629,422–––

59,278Other financial assets �����������������������������������������������������������������������

77,188––370

1,023,136

1,100,694

Total���������������������������������������������������������������������������������������������

¥8,005,703

72,577¥ 3,186,745¥ 11,649,528

Lendingcommitments andfinancial guarantee
contracts

Total

Financial liabilities
at FVTPL¥

29,422Derivatives
designated as hedges¥

355,081

Financial liabilities
at amortized cost¥

Financial liabilities
Current liabilities
Interest-bearing debt �����������������������������������������������������������������������

–¥ 3,845,153–¥ 3,845,153

Lease liabilities ���������������������������������������������������������������������������������

¥

–
–

¥

–

378,383¥–

378,383

Deposits for banking business�����������������������������������������������������������

––873,087–

873,087

Third-party interests in SVF1�������������������������������������������������������������

––24,691–

24,691

Trade and other payables �����������������������������������������������������������������

––1,585,326–

1,585,326

Derivative financial liabilities�������������������������������������������������������������

9,266

1

–

–

9,267

Other financial liabilities �������������������������������������������������������������������

–

–

6,122

241,888

248,010
9,286,729

Non-current liabilities
Interest-bearing debt �����������������������������������������������������������������������

––9,286,729–

Lease liabilities ���������������������������������������������������������������������������������

––761,943–

761,943

Third-party interests in SVF1�������������������������������������������������������������

––4,559,728–

4,559,728

Derivative financial liabilities�������������������������������������������������������������

14,723

113,352––

128,075

Other financial liabilities �������������������������������������������������������������������

16,434–57,3603,413

77,20740,423¥ 113,353¥21,378,522¥ 245,301¥21,777,599

Total���������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021¥

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

218

As of March 31, 2021
(Millions of yen)

Financial assets
at FVTPL

Financial assets
Current assets
Trade and other receivables���������������������������������������������������������������
Investments from asset management subsidiaries�������������������������������
Securities pledged as collateral in asset management subsidiaries�����������
Derivative financial assets in asset management subsidiaries���������������
Other financial assets �����������������������������������������������������������������������
Non-current assets
Investments from SVF1 and SVF2 accounted for using FVTPL �������������
Investment securities�������������������������������������������������������������������������
Derivative financial assets �����������������������������������������������������������������
Other financial assets �����������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������

¥–658,227
1,427,286
188,056
384,912

13,646,774
3,187,570
875,505
430,885¥20,799,215

Financial liabilities
at FVTPL

Derivatives
designated as hedges

¥

¥

–
–
–
–
–
–
–
33,155–33,155Derivatives
designated as hedges

Debt financial assets
at FVTOCI

¥

–
–
–
–
48,640–358,090––406,730¥

Financial liabilities
at amortized cost

Equity financial assets
at FVTOCI

Financial assets at
amortized cost

Total

–
–
–
–
300

¥ 2,216,434–––
621,370¥ 2,216,434
658,227
1,427,286
188,056
1,055,222–
137,232–
168
137,700–
23,892–
1,488,209¥ 4,349,905

13,646,774
3,706,784
908,660
1,919,262¥25,726,705

Lending commitments
and financial
guarantee contracts

Total

¥

¥

Financial liabilities
Current liabilities
Interest-bearing debt �����������������������������������������������������������������������
Lease liabilities ���������������������������������������������������������������������������������
Deposits for banking business�����������������������������������������������������������
Trade and other payables �����������������������������������������������������������������
Derivative financial liabilities in asset management subsidiaries�����������
Derivative financial liabilities�������������������������������������������������������������
Other financial liabilities �������������������������������������������������������������������

¥

–
–
–
–
14,673322,213
8,714

¥

–
–
–
–
–
–
–

¥ 7,735,239
307,447
1,109,240
1,970,275
–
–
7,972

¥

–
–
–
–
–
–
34,599¥ 7,735,239
307,447
1,109,240
1,970,275
14,673322,21351,285
10,777,736

Non-current liabilities
Interest-bearing debt �����������������������������������������������������������������������

––10,777,736–

Lease liabilities ���������������������������������������������������������������������������������

––727,554–

727,554

Third-party interests in SVF1�������������������������������������������������������������

––6,601,791–

6,601,791

Derivative financial liabilities�������������������������������������������������������������

11,14043,350400,090

21,552–
21,552–
369,126¥29,606,380–
2,931
37,53032,692415,407¥30,065,552

Other financial liabilities �������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021¥

Table of Contents¥

Message from Our CEO

Who We Are

Growth Assets¥

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information219

As of March 31, 2021
(Thousands of U.S. dollars)

Financial assets
at FVTPL

Financial assets
Current assets
Trade and other receivables���������������������������������������������������������������
Investments from asset management subsidiaries�������������������������������
Securities pledged as collateral in asset management subsidiaries�����������
Derivative financial assets in asset management subsidiaries���������������
Other financial assets �����������������������������������������������������������������������
Non-current assets
Investments from SVF1 and SVF2 accounted for using FVTPL �������������
Investment securities�������������������������������������������������������������������������
Derivative financial assets �����������������������������������������������������������������
Other financial assets �����������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������

$–5,945,506
12,892,115
1,698,636
3,476,759

123,265,956
28,792,070
7,908,093
3,892,015$187,871,150

Financial liabilities
at FVTPL

Derivatives
designated as hedges

$

$

–
–
–
–
–
–
–
299,476–
299,476

Derivatives
designated as hedges

Debt financial assets
at FVTOCI

$

$

–
–
–
–
439,346–
3,234,486––
3,673,832

Financial liabilities
at amortized cost

Equity financial assets
at FVTOCI

Financial assets at
amortized cost

Total

–
–
–
–
2,710

$ 20,020,179–––
5,612,591$ 20,020,179
5,945,506
12,892,115
1,698,636
9,531,406–
1,239,563–
1,517
1,243,790–
215,807–
13,442,409$ 39,290,986

123,265,956
33,481,926
8,207,569
17,335,941$232,379,234

Lending commitments
and financial
guarantee contracts

Total

$

$

Financial liabilities
Current liabilities
Interest-bearing debt �����������������������������������������������������������������������
Lease liabilities ���������������������������������������������������������������������������������
Deposits for banking business�����������������������������������������������������������
Trade and other payables �����������������������������������������������������������������
Derivative financial liabilities in asset management subsidiaries�����������
Derivative financial liabilities�������������������������������������������������������������
Other financial liabilities �������������������������������������������������������������������
Non-current liabilities
Interest-bearing debt �����������������������������������������������������������������������
Lease liabilities ���������������������������������������������������������������������������������
Third-party interests in SVF1�������������������������������������������������������������
Derivative financial liabilities�������������������������������������������������������������
Other financial liabilities �������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������

$

$

–
–
–
–
132,535
2,910,424
78,710–––100,623
391,564
3,613,856

$

$

–
–
–
–
–
–
–

$ 69,869,379
2,777,048
10,019,330
17,796,721––
72,008–––
194,671–
194,671

97,351,061
6,571,710
59,631,388–
3,334,170$267,422,815

$

$

–
–
–
–
–
–
312,519$ 69,869,379
2,777,048
10,019,330
17,796,721
132,535
2,910,424
463,237––––
26,474
338,993

97,351,061
6,571,710
59,631,388
295,294
3,752,208$271,570,335

The Company generally classifies equity 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 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

220

Major components and fair values of the equity financial assets at FVTOCI are as follows.
(Millions of yen)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Fair value on the date of sale������������������

¥26,363¥8,922$80,589

Accumulated gains related to the sales�� ��

2,297

824

7,443

As of March 31, 2020
(Millions of yen)

Names

Retty Inc.���������������������������������������������������������������������������������

Fair value

¥

3,672

HOPU-ARM Innovation Fund, L.P.���������������������������������������������

2,804

COCON Inc. ���������������������������������������������������������������������������

2,129

OpenStreet Co., Ltd�����������������������������������������������������������������

1,973

Zimperium, Inc �����������������������������������������������������������������������

1,859

Other �������������������������������������������������������������������������������������

60,140Total����������������������������������������������������������������������������������

¥ 72,577

When financial assets at FVTOCI are derecognized or there is a significant or prolonged decline in fairvalue below the cost, cumulative gains and losses recognized in other comprehensive income are
directly transferred to retained earnings. For the fiscal year ended March 31, 2021, ¥ (343) million ($(3,098) thousand) (For the fiscal year ended March 31, 2020: ¥1,339 million) was transferred from“Accumulated other comprehensive income” to “Retained earnings.”

As of March 31, 2021
(Millions of yen)

Names

(Thousands of U.S. dollars)

Fair value

Fair value

Ampere Computing Holdings LLC ����������������������������������������

¥ 46,073$ 416,159

SNOW Corporation��������������������������������������������������������������

7,399

66,832

WORKS MOBILE Corporation������������������������������������������������

5,421

48,966

HOPU-ARM Innovation Fund, L.P.������������������������������������������

3,821

34,514Retty Inc.������������������������������������������������������������������������������

3,131

28,281Other ����������������������������������������������������������������������������������

71,855649,038

Total�������������������������������������������������������������������������������

¥137,700$1,243,790

The Company sells (or derecognize) equity financial assets at FVTOCI when those assets no longer
match the Company’s investment strategies. The table below presents fair value on the date of sale andaccumulated gains or losses related to the sales of equity financial assets at FVTOCI that were soldduring the year.

SoftBank Group Corp. ANNUAL REPORT 2021

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Table of Contents

Message from Our CEO

32. Fair value of financial instruments(1) Categorization by level within the fair value hierarchy
Financial instruments that are measured at fair value on a recurring basis after initial recognition areclassified into three levels of the fair value hierarchy based on the observability and significance of
inputs used for the measurement.
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 at the point of which the event orchange in circumstances that caused the transfer, is observed.
During the fiscal year ended March 31, 2021, there was a hierarchy level transfer of the equity
investment in LINE Corporation from Level 1 to Level 2 due to the delisting of LINE Corporation. As aresult of a business combination on February 28, 2021, LINE Corporation is accounted as a consolidated
subsidiary as of March 31, 2021. The details regarding the business combination of LINE Corporation
are described in “Acquisition of LINE Corporation and business integration of LINE Group and Z
Holdings Corporation” under “Note 10. Business Combinations.” There was no transfer between Level
1 and Level 2 during the fiscal year ended March 31, 2020.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

221

The table below presents financial instruments measured at fair value on a recurring basis by levelwithin the fair value hierarchy.
As of March 31, 2021

As of March 31, 2020

(Millions of yen)

(Millions of yen)

Level 1

Level 2

Level 3

Investments from SVF1 and SVF2
accounted for using FVTPL ����������

Level 1

Total

Level 2

Level 3Total–

¥ 6,979,770¥13,646,774

Financial assets

Financial assets¥1,104,339

Equity securities (excluding investmentsfrom SVF1 and SVF2) �����������������������

82,753

Bonds and loans (excluding investmentsfrom SVF1 and SVF2) �����������������������

5,301

¥

–

¥5,787,893–¥6,892,232

634,157

247,181

56,824

Investments from SVF1 and SVF2
accounted for using FVTPL ���������� ¥ 6,667,004¥

716,910Equity securities (excluding investmentsfrom SVF1 and SVF2)*����������������������

3,973,727

2,214

1,143,043

5,118,984

309,306

Bonds and loans (excluding investmentsfrom SVF1 and SVF2) ����������������������

10,785

246,510

135,468

392,763

Derivative financial assets

Derivative financial assets
Foreign currency exchange
contracts��������������������������������

–63,175–63,175

Foreign currency exchange
contracts��������������������������������

42

63,370–63,412

Option contracts������������������������

–

7,812

17,93725,749Option contracts������������������������

19,507906,390

477,479

1,403,376Interest rate contracts����������������

–

378

–

378

Interest rate contracts����������������

–

1,814

–

1,814

Other����������������������������������������

–

63

–

63

Swap contracts��������������������������

–

7,057

–

7,057

454,970

Forward contracts����������������������

–

4,372

–

4,372

¥8,462,783

Other��������������������������������������������

334,286

2,969

400,993738,248

Total�������������������������������������� ¥11,005,351¥ 1,234,696¥ 9,136,753¥21,376,800

¥

¥

¥

Other��������������������������������������������
Total��������������������������������������

168,070¥1,360,463

6,290¥324,899

280,610¥6,777,421

Financial liabilities

Financial liabilities

Derivative financial liabilities
Foreign currency exchange
contracts��������������������������������

Derivative financial liabilities¥–¥122,393

Option contracts������������������������

–Interest rate contracts����������������
Other����������������������������������������
Other��������������������������������������������
Total��������������������������������������

¥–¥ 122,393

657

221

878

–

14,015–14,015

Option contracts������������������������

4,979

237,264

–

56

–

56

Interest rate contracts����������������

–

9,769

–

9,769

16,434

16,434

Swap contracts��������������������������

–

5,390

7,495

12,885

16,655¥ 153,776

Forward contracts����������������������

––76,82376,823

Other����������������������������������������

101

–

–

101

Borrowed securities ����������������������

8,714

–

–

8,714

–

–

–

¥137,121¥¥

Foreign currency exchange
contracts�������������������������������� ¥Other��������������������������������������������
Total�������������������������������������� ¥

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

266

6,041
20,101

27,491––¥

Management: The Foundation Supporting Our Growth279,914

Financial Section–

37,309¥121,627

27,757242,243

43,350¥

Corporate Information

421,642222

(Thousands of U.S. dollars)

Level 1

Level 2

Level 3

Total–

$63,045,524$123,265,956

Financial assets
Investments from SVF1 and SVF2
accounted for using FVTPL ���������� $60,220,432$

Equity securities (excluding investmentsfrom SVF1 and SVF2)* ��������������������

35,893,117

19,998

10,324,659

46,237,774

Bonds and loans (excluding investmentsfrom SVF1 and SVF2) ����������������������

97,4172,226,628

1,223,629

3,547,674

Derivative financial assets
Foreign currency exchange
contracts��������������������������������

379

572,397–572,776

Option contracts������������������������

176,199

8,187,065

4,312,880

12,676,144

Interest rate contracts����������������

–16,385–

16,385

Swap contracts��������������������������

–63,743–63,743Forward contracts����������������������

–39,491–39,491Other��������������������������������������������

3,019,474

26,8183,622,013

6,668,305

Total�������������������������������������� $99,407,018$11,152,525$82,528,705$193,088,248

$

$

$

Financial liabilities
Derivative financial liabilities
Foreign currency exchange
contracts�������������������������������� $2,403

Option contracts������������������������

44,973

2,143,113

Interest rate contracts����������������

–88,240–88,240Swap contracts��������������������������

–48,686

67,699116,385
693,912248,315––

250,718
2,188,086

Forward contracts����������������������

––693,912

Other����������������������������������������

912

–

–

912

Borrowed securities ����������������������

78,710––78,710

Other��������������������������������������������

54,566–

336,998

391,564

181,564$ 2,528,354$ 1,098,609$ 3,808,527

Total�������������������������������������� $* Equity securities classified as Level 1 includes securities pledged as collateral in asset management subsidiaries of ¥1,427,286 million($12,892,115 thousand).

The major valuation techniques for financial instruments measured at fair value on a recurring basis are as follows:a.	 Investments from SVF1 and SVF2 accounted for using FVTPL, equity securities, and bonds and loans
Investments from SVF1 and SVF2 accounted for using FVTPL, equity securities, and bonds andloans are measured using quoted prices in active markets for identical assets or liabilities if suchprices are available, and are classified as Level 1.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

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 the market and company performance.
In the absence of a recent transaction, market approach, income approach, or net asset
approach is applied for the enterprise valuation.
The market approach is used to the extent comparable guidelines for public companies areavailable. The market approach is a valuation method using figures from the financial statementsof the subject companies and valuation multiple of comparable companies, such as Enterprise
Value (EV)/Revenue and EV/EBITDA. The income approach is used when reliable cash flow
projections are available. Under this approach, the present value is calculated 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 net asset
approach is a valuation method using net assets on balance sheet of subject companies forcalculation of stock value. The enterprise value which is calculated by the above method isallocated to shareholder’s value of each class of shares depending on the capital structures of theinvestments. For the allocation, an option pricing model, which values each individual security inthe capital structure based on its unique rights and preferences, and a method which allocatesvalue assuming the conversion of preferred shares into common shares due to a possible initialpublic offering and such, are mainly used.
The financial instruments are classified as Level 2 if all significant inputs, such as quoted prices
and discount 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 quoted prices in active
markets if they are available and classified as Level 1.
If quoted prices in active markets are not available, the fair value of derivative financial
instruments is measured using valuation techniques including a discounted cash flows modeland Black-Scholes 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 and discount rates used for the measurement, are observable; and they are classified as
Level 3 when they are measured using significant unobservable inputs.
(2) Fair value measurements of financial instruments that are categorized as Level 3a.	 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.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

223

(a) Investments from SVF1 and SVF2 accounted for using FVTPL
For Level 3 fair value measurements of investments from SVF1 and SVF2 accounted for using
FVTPL, the Company mainly uses price of the recent transactions method, the discounted cash
flow method and the market comparable company multiple method. The following table shows
the fair value of the investments measured by each valuation technique. When a combination ofmultiple valuation techniques is applied, aggregated amounts of fair value are presented foreach combination of valuation techniques.
(Millions of yen)(Thousands of U.S. dollars)

Fair value
As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Recent Transactions���������������������

¥ 1,567,914¥2,526,447$22,820,405

Recent Transactions / Discounted
cash flow�����������������������������������

766,600

1,213,705

10,962,921

Discounted cash flow�������������������

–2,163,880

1,004,366
859,439

9,072,044
7,762,975

Recent Transactions / Announced
Transactions*1���������������������������

–624,568

5,641,478

1,090,088
199,411¥ 5,787,893

6,322
744,923¥6,979,770

57,104
6,728,597$63,045,524

Valuation techniques

Recent Transactions / Market
comparable companies��������������

Discounted cash flow / Market
comparable companies��������������
Other �����������������������������������������
Total���������������������������������������

(b) Financial assets including “Other financial assets” and “Investment securities”
For Level 3 fair value measurements of financial assets, the market comparable company multiple
method, the discounted cash flow method, price of the recent transactions method, Monte Carlo
method and binomial lattice model are mainly adopted considering the rights and preferential
rights of shares. The following table shows information about the valuation techniques withunobservable inputs and the significant unobservable inputs used in the fair value measurement.
Ranges of unobservable inputs
As of March 31, 2021

X1.5 – X8.5
–
–
–
X0.8

X1.2 – X13.2
X17.0 – X24.0
X27.5
X2.4
–

Net income multiple*3���������

15.0% – 40.0%–
X6.0 – X13.2–

11.1% – 44.4%
5.5% – 10.2%
X8.0 – X20.0
X6.8

Monte Carlo simulation

Volatility�����������������������������

–

20.0%

Discounted cash flow

Cost of capital���������������������

40.0%
X8.0

25.0%
X8.0

–
–

25.0%
X8.0

–
–

60.0%
10.8%

40.0%
X8.0

–
–

Equity securities
Market comparable companies Revenue multiple�����������������
Gross profit multiple �����������
EBITDA multiple�������������������
Gross merchandise value multiple
Discounted cash flow

EBITDA multiple*3���������������

Derivative financial assets

Ranges of unobservable inputs
Valuation techniques

Unobservable inputs

As of March 31, 2020

As of March 31, 2021

Discounted cash flow

Cost of capital����������������

11.0% – 85.7%

11.0% – 84.0%

EBITDA multiple*2����������

X8.0 – X25.6

X8.0 – X27.2

Revenue multiple*2 ��������

X1.5 – X11.0

X3.0 – X12.6

Gross merchandise value
multiple*2 ��������������������

X0.6 – X1.5

X1.2 – X1.5

EBIT multiple*2 ��������������

–

X25.0

Long term growth rate���0.0% – 3.2%

0.0% – 4.1%

Price to earnings ratio* ��

X9.0 – X30.0–

2

EBITDA multiple*3���������������
Derivative financial liabilities
Discounted cash flow

X0.4 – X5.5

X0.4 – X8.0

EBITDA multiple��������������

X10.5 – X21.0–*2 Various multiples of market comparable companies are used for the measurement of the terminal value.

Table of Contents

Message from Our CEO

Cost of capital���������������������
EBITDA multiple*3���������������

Other
Binomial lattice model

Volatility�����������������������������
Credit spread ���������������������

Discounted cash flow
Revenue multiple ����������

Cost of capital���������������������
Capitalization rate*3 �����������

The valuation techniques and the inputs are as follows.

SoftBank Group Corp. ANNUAL REPORT 2021

Unobservable inputs

Tangible book value multiple

*1 IPO scenario including a merger with a SPAC was considered in the Announced Transactions.

Market comparable
companies

As of March 31, 2020

Valuation techniques

Cost of capital���������������������
EBITDA multiple*3���������������

*3 E BITDA multiple of market comparable companies, net income multiple of market comparable companies and capitalization
rate considering the most recent performance are used for the measurement of the terminal value.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

224

b.	 Sensitivity Analysis
Of the above unobservable inputs, the EBITDA multiple, the revenue multiple, the grossmerchandise value multiple, the tangible book value multiple, the price to earnings ratio, thegross profit multiple, the EBIT multiple, the net income multiple, and the long term growth rate
have a positive correlation with the fair value of equity securities and derivative financial
liabilities. Also, the volatility used for the Monte Carlo simulation and the binomial lattice model
have a positive correlation with the fair value of derivative financial assets and other financial assets.
On the other hand, the cost of capital, the capitalization rate and the credit spread have anegative correlation with the fair value of equity securities, derivative financial liabilities andother financial assets.
c.	 Valuation processes(a) Valuation processes at SVF1 and SVF2
The valuations are prepared by the valuation team of SBIA under IFRS 13, in accordance with the
SBIA Global Valuation Policy and International Private Equity and Venture Capital Valuation
Guide-lines on a quarterly basis, using the most appropriate valuation techniques and inputs thatreflect the nature, characteristics and risks of the financial instruments that are subject to fairvalue measurement. The valuation team of SBIA may engage external specialists with a highlevel 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 theirreview to SBIA’s Board of Directors on a quarterly basis. The VFRC reviews the reasonableness ofsignificant inputs and assumptions as well as the valuation results. In addition, the VFRC
considers the appropriateness of the choice of valuation methodology.
(b) Valuation processes at entities other than SVF1 and SVF2
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 instrumentsthat require both high level of knowledge and experiences where amounts are material, theCompany may engage external specialists. Thereafter, management responsible for the valuation
processes approves the results of fair value measurements by the Company’s personnel and thevaluation by the external specialists performed at the end of each quarter after reviewing theanalysis of fair value changes and other content.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

d.	 Roll forward of financial instruments categorized as Level 3
Roll forward of financial instruments categorized as Level 3 is as follows:
For the fiscal year ended March 31, 2020
(Millions of yen)

Financial assets

Investmentsfrom SVF1 andSVF2 accounted
for using FVTPL

Equity securities(excluding
investments from
SVF1 and SVF2)

Bonds and loans(excluding
investments from
SVF1 and SVF2)

As of April 1, 2019 ���������

¥6,807,778¥ 321,308¥ 133,144

Net income �����������������

(1,510,902)(439,644)

Other comprehensive income�(113,201)(4,001)

Purchases �����������������������

1,814,220

443,459

Sales�������������������������������

(25,585)

Loans �����������������������������

–Investments transferred fromthe Company to SVF1�������
Transfers to Level 1 due to listing�� �
Conversions into equity securities�� �–

Derivative
financialassetsOther

202¥ 393,156(26,130)(71,925)(201,497)(3,403)

1(6,383)

1,110–

390,031(16,917)(771)–(25,832)–

20,473––

104,500(104,500)–––(1,288,917)(11,556)–––

352,049(94,358)–(257,691)¥

Gains or losses

Other �����������������������������

–93,95926,75989,659(11,174)

As of March 31, 2020�����

¥5,787,893¥ 634,157¥ 56,824¥ 17,937¥ 280,610

Gains or losses recognized in net
income on financial instruments heldat March 31, 2020����������������� ¥ (1,413,025)¥ (455,201)¥ (14,783)¥ (76,259) ¥ (167,585)(Millions of yen)
Derivative financial
liabilities

Financial liabilities

As of April 1, 2019 ��������� ¥

–

Other

¥

–

Gains or losses
Net income �����������������

222

Other comprehensive income�� �(1)–Other �����������������������������

–16,335

As of March 31, 2020����� ¥
Gains or losses recognized in net
income on financial instruments
held at March 31, 2020��������� ¥Who We Are

Growth Assets

99

221

¥

16,434

222¥

99

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

225

(Thousands of U.S. dollars)

Financial assets

Investments from
SVF1 and SVF2
accounted
for using FVTPL

Equity securities(excluding
investments from
SVF1 and SVF2)

Bonds and loans(excluding
investments from
SVF1 and SVF2)

Derivative
financialassetsOther

As of April 1, 2020 ���������

$52,279,767$ 5,728,091$ 513,269$ 162,018$2,534,640
536,907

For the fiscal year ended March 31, 2021
(Millions of yen)

Financial assets

Investments from
SVF1 and SVF2
accounted
for using FVTPL

Equity securities(excluding
investments from
SVF1 and SVF2)

Bonds and loans(excluding
investments from
SVF1 and SVF2)

As of April 1, 2020 ���������

¥5,787,893¥ 634,157¥

56,824¥

Derivative
financialassetsOther

17,937¥ 280,610

Gains or losses
Net income �����������������

3,991,632

256,0282,500

274,666

59,441Other comprehensive income �

133,919

68,270

4,723

562

6,819

Purchases �����������������������

897,400

145,270

100,399–

124,871

Sales�������������������������������

(329,017)(14,077)(686)–(40,526)

Transfers to Level 1 due to listing�� �(3,558,039)(53,995)–––

Conversions into equity securities���–

80,787(25,068)(12,000)(43,719)

Other* ���������������������������

55,982

26,603(3,224)

196,314

13,497

As of March 31, 2021�����

¥6,979,770¥1,143,043¥ 135,468¥ 477,479¥ 400,993

Gains or losses recognized in net
income on financial instruments
held at March 31, 2021���������

¥1,188,690¥ 279,220¥¥ 274,666

¥

3,146

Derivative
financialliabilities

As of April 1, 2020 ���������

¥221

Net income �����������������

36,054,846

2,312,600

22,5822,480,950

Other comprehensive income�� �

1,209,638

616,656

42,661

5,076

61,593Purchases �����������������������

8,105,862

1,312,168

906,865–

1,127,911

Sales�������������������������������

(2,971,881)(127,152)(6,196)–(366,055)

Transfers to Level 1 due to listing�� �(32,138,371)(487,716)–––

Conversions into equity securities�� �–

729,717(226,429)(108,391)(394,897)

Other* ���������������������������

505,663240,295(29,123)

1,773,227

121,914

As of March 31, 2021�����

$63,045,524$10,324,659$1,223,629$4,312,880$3,622,013

Gains or losses recognized in net
income on financial instruments
held at March 31, 2021���������

$10,736,970$ 2,522,085$$2,480,950$501,924

Financial liabilities

Derivative
financial liabilities

As of April 1, 2020 ���������

$

Other

$

148,442

Gains or losses¥

Net income �����������������

690,217

188,556

16,434

Other comprehensive income���30,729–Other �����������������������������

38,669Net income �����������������

76,41420,875

As of March 31, 2021�����

Other comprehensive income���

3,402

–

Gains or losses recognized in net
income on financial instruments
held at March 31, 2021���������

4,281

–

As of March 31, 2021�����

¥84,318¥37,309Gains or losses recognized in net
income on financial instruments
held at March 31, 2021���������

¥76,633¥

20,876

SoftBank Group Corp. ANNUAL REPORT 2021

1,996

Other

Gains or losses

Other �����������������������������

28,417(Thousands of U.S. dollars)

55,568(Millions of yen)

Financial liabilities

Gains or losses–$

761,611$

336,998$

692,196$

188,565* Derivative financial assets increase due to the acquisition of contingent consideration in the merger transaction with Sprint andT-Mobile US, Inc. The details are described in “(1) Sprint” under “Note 6. Discontinued operations.”

Gains or losses recognized in net income are included in “Gain on investments at Investment
Business of Holding Companies,” “Gain (loss) on investments at SVF1, SVF2, and others,” “Gain(loss) on other investments,” “Derivative gain (loss) (excluding gain (loss) on investments),” and“Other loss” in the consolidated statement of income. Gains or losses recognized in othercomprehensive income, net of tax, are included in “Equity financial assets at FVTOCI,” “Debtfinancial assets at FVTOCI” and “Exchange differences on translating foreign operations” in the
consolidated statement of comprehensive income.

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226

(3) Carrying amounts and fair values of financial instruments
The table below presents carrying amounts and fair values of financial instruments.

(Thousands of U.S. dollars)

Fair value
Carrying
amountAs of March 31, 2020
(Millions of yen)

Fair value
Carrying amount

Level 1

Level 2

Level 3

Total

Interest bearing debt
(Non-current)Long-term
borrowings��������� $42,860,247
Corporate bonds�� �Long-term
borrowings���������

¥ 3,821,473

Corporate bonds�� �

5,268,883¥–¥ 3,095,567¥ 707,064¥ 3,802,631–

4,888,602–

4,888,602

Financial instruments whose carrying amounts are reasonably similar to fair values are not included in
the table above. Financial instruments that are measured at fair value on a recurring basis are also
excluded because their carrying amounts approximates their fair values.

Level 1

Level 2

Level 3

Total

Interest bearing debt
(Non-current)–$35,531,280$ 7,808,165$43,339,445

42,861,386$–

44,206,603–

44,206,603

2,692,548

2,909,529––

2,909,529

Other financial
liabilities(Non-current)
Non-controllinginterests subject topossible redemption�� �

As of March 31, 2021
(Millions of yen)

Fair value
Carrying
amountLevel 1

Level 2

Level 3

Total

Interest bearing debt
(Non-current)Long-term
borrowings���������

¥4,745,058–¥ 3,933,668

864,442¥ 4,798,110

Corporate bonds�� �

4,745,184–

4,894,113–

4,894,113

298,092

322,114––322,114¥¥

Other financial
liabilities(Non-current)
Non-controllinginterests subject topossible redemption�� �

SoftBank Group Corp. ANNUAL REPORT 2021

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227

Financial instruments whose carrying amounts are reasonably similar to fair values are not included in
the table above. Financial instruments that are measured at fair value on a recurring basis are also
excluded because their carrying amounts approximates their fair values.
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 such prices 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. The
measurement of non-current portion of long-term borrowings that the fair values are measured
based on the discounted cash flow method using an unobservable inputs such as an interest rate
including the credit spread that would be used for a borrowing with the same terms andmaturity are categorized as Level 3.
b.	 Corporate bonds (non-current portion)
Fair values of the non-current portion of corporate bonds are mainly categorized as Level 1 orLevel 2. When the fair value is measured using quoted prices in active markets for identicalbonds, it is categorized as Level 1. When the fair value is measured using quoted prices that are
observable in markets that are not active for identical bonds, it is categorized as Level 2.
c.	 Non-controlling interests subject to possible redemption
The fair value of the non-controlling interests subject to possible redemption is measured using
quoted prices in active markets. The details of the non-controlling interests subject to possible
redemption are described in “Note 8. Special purpose acquisition companies sponsored by theCompany.”

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

33. 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 installment
receivables recognized from the mobile devices sales business.
For the transactions, the Company transfers receivables to financial institutions and acquires cash anda subordinate interest in the transferred receivables for financing purposes. The receivables sold are notderecognized because in each transaction, the Company retains a subordinate interest and, therefore,
substantially retains all the risks and rewards of ownership of the transferred assets. Cash received fromtransferring the receivables are included in “Interest-bearing debt” under current liabilities andnon-current liabilities as borrowings.
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
have recourse only to the transferred assets:
As of March 31, 2020

(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2021

As of March 31, 2021

Carrying amount of transferred assets ����

¥ 794,514¥ 788,847$ 7,125,345

Carrying amount of related liabilities ������

(706,091)(719,099)(6,495,339)(Fair value of financial assets and financial liabilities where related liabilities have recourse only to thetransferred assets)
Fair value of transferred assets����������������

¥ 794,514¥ 788,847

Fair value of related liabilities������������������

(706,015)(719,397)

Net position����������������������������������������

¥88,499¥69,450$ 7,125,345(6,498,030)$

627,315The difference between transferred assets and related liabilities is mainly the subordinate interest
which the Company retains on securitization.
In addition, the Company enters into securitization transactions involving a portion of the monthly
lump sum payment receivables included in loans in the card business. However, there are securitization
receivables for which the Company bears a credit risk until collection and is obligated to pay retrospectively if a debtor does not pay. Those securitization receivables are not derecognized because they do
not meet the derecognition criteria. Cash received from transferring the receivables are included in“Interest-bearing debt” under current liabilities as borrowings.
The carrying amount of the receivables transferred and related liability in financial assets transferred by
the method not meeting the derecognition criteria as of March 31, 2021 is ¥775 million ($7,000
thousand) and ¥85,000 million ($767,772 thousand,) respectively (as of March 31, 2020, ¥1,361 millionand ¥60,000 million respectively). The liability is settled without significant delay when a debtor pays forreceivables transferred, but the Company cannot utilize the receivables transferred until the settlement of
the liability or payment from the debtor is completed. The discrepancy between receivables transferred
and related liabilities are mainly due to the amount of loan collection in card business.
Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

22834. 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 presented gross, because 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, 2020
(Millions of yen)

Financial assets

Trade and other receivables������������������������������������������������������������������������������������������������
Derivative financial assets��������������������������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������������������������������������������

Gross amount offinancial assets

Gross amount of financial
liabilities offset against
financial assets

Net amount of financial assets
presented in the consolidated
statement of financial position

Amount not offset in the
consolidated statement offinancial position¥ 202,518
30,855¥ 233,373¥ (90,066)¥ (90,066)¥ 112,452
30,855¥ 143,307¥ (17,110)(30,660)¥ (47,770)

Gross amount offinancial liabilities

Gross amount of financial
assets offset against
financial liabilities

Net amount of financial liabilities
presented in the consolidated
statement of financial position

Amount not offset in the
consolidated statement offinancial position¥ 294,143
121,707713¥ 416,563¥ (90,066)––¥ (90,066)¥ 204,077
121,707713¥ 326,497¥ (16,552)(30,691)(527)¥ (47,770)

Gross amount offinancial assets

Gross amount of financial
liabilities offset against
financial assets

Net amount of financial assets
presented in the consolidated
statement of financial position

Amount not offset in the
consolidated statement offinancial position*1,2

Net amount¥¥

95,342
195
95,537(Millions of yen)

Financial liabilities

Trade and other payables ��������������������������������������������������������������������������������������������������
Derivative financial liabilities����������������������������������������������������������������������������������������������
Other financial liabilities ����������������������������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������������������������������������������

Net amount¥¥

187,525
91,016
186
278,727

As of March 31, 2021
(Millions of yen)

Financial assets

Cash and cash equivalents ������������������������������������������������������������������������������������������������
Trade and other receivables������������������������������������������������������������������������������������������������
Derivative financial assets in asset management subsidiaries����������������������������������������������
Derivative financial assets��������������������������������������������������������������������������������������������������
Other financial assets ��������������������������������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������������������������������������������

¥ 220,174
179,874
188,056
39,772487,817¥1,115,693¥–(93,080)–––¥ (93,080)¥ 220,174
86,794
188,056
39,772487,817¥1,022,613¥ (207,875)(19,898)(7,452)(20,501)(332,577)¥ (588,303)

Gross amount offinancial liabilities

Gross amount of financial
assets offset against
financial liabilities

Net amount of financial liabilities
presented in the consolidated
statement of financial position

Amount not offset in the
consolidated statement offinancial position*1.2¥1,489,704
198,562
67,514
9,432¥1,765,212¥ (493,655)(22,129)(63,290)(9,229)¥ (588,303)

Net amount¥¥

12,29966,896
180,604
19,271
155,240
434,310(Millions of yen)

Financial liabilities

Interest-bearing debt ��������������������������������������������������������������������������������������������������������
Trade and other payables ��������������������������������������������������������������������������������������������������
Derivative financial liabilities����������������������������������������������������������������������������������������������
Other financial liabilities ����������������������������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents¥1,489,704
291,642
67,5149,432¥1,858,292

Message from Our CEO¥–(93,080)––¥ (93,080)

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

Net amount¥

996,049
176,433
4,224
203¥ 1,176,909

229

(Thousands of U.S. dollars)

Gross amount offinancial assets

Financial assets

Cash and cash equivalents ������������������������������������������������������������������������������������������������
Trade and other receivables������������������������������������������������������������������������������������������������
Derivative financial assets in asset management subsidiaries����������������������������������������������
Derivative financial assets��������������������������������������������������������������������������������������������������
Other financial assets ��������������������������������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������������������������������������������

Gross amount of financial
liabilities offset against
financial assets

Net amount of financial assets
presented in the consolidated
statement of inancial position

Amount not offset in the
consolidated statement offinancial position*1.2

Net amount$ 1,988,745
1,624,731
1,698,636$–(840,755)–$ 1,988,745
783,976
1,698,636$ (1,877,653)(179,731)(67,311)$

111,092
604,245
1,631,325

359,245
4,406,260$ 10,077,617––$ (840,755)

359,245
4,406,260$ 9,236,862(185,177)(3,004,038)$ (5,313,910)

174,068
1,402,222$ 3,922,952

Gross amount offinancial liabilities

Gross amount of financial
assets offset against
financial liabilities

Net amount of financial liabilities
presented in the consolidated
statement of financial position

Amount not offset in the
consolidated statement offinancial position*1.2

Net amount$ 13,455,912
1,793,533
609,827
85,196$ 15,944,468$ (4,458,992)(199,883)(571,673)(83,362)$ (5,313,910)$ 8,996,920
1,593,650
38,154
1,834$10,630,558(Thousands of U.S. dollars)

Financial liabilities$13,455,912
2,634,288
609,827
85,196$16,785,223

Interest-bearing debt ��������������������������������������������������������������������������������������������������������
Trade and other payables ��������������������������������������������������������������������������������������������������
Derivative financial liabilities����������������������������������������������������������������������������������������������
Other financial liabilities ����������������������������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������������������������������������������

$–(840,755)––$ (840,755)*1 For the fiscal year ended March 31, 2021, the Company exercised the cash settlement option for a part of the prepaid forward contracts using Alibaba shares and provided a notice to the counterparty for early termination in April 2021. In relation to this early termination, ¥ (316,643)
million ($ (2,860,112) thousand), ¥ (285,780) million ($ (2,581,339) thousand), ¥ (2,767) million ($ (24,993) thousand), and ¥ (28,096) million ($ (253,780) thousand) are included in other financial assets, interest-bearing debt, trade and other payables, and derivative financial liabilities,
respectively. The details are described in “*5” in “(1) Components of interest-bearing debt” under “Note 25. Interest-bearing debt.”*2 SB Northstar entered into a prime brokerage agreement with brokers. Based on the agreement, in the event of a default by one party, the other party has a right to offset its claims and obligations against the defaulting party. In relation to this prime brokerage agreement, ¥ (207,875)
million ($ (1,877,653) thousand), ¥ (7,452) million ($ (67,311) thousand), ¥ (15,934) million ($ (143,926) thousand), ¥ (207,875) million ($ (1,877,653) thousand), ¥ (14,673) million ($ (132,535) thousand), and ¥ (8,713) million ($ (78,702) thousand) are included in cash and cash
equivalents, derivative financial assets in asset management subsidiaries, other financial assets, interest-bearing debt, derivative financial liabilities, and other financial liabilities, respectively.

35. Foreign currency exchange rates
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������������������������������������������������������������������������������������
Chinese yuan ��������������������������������������������������������������������������������
British pound* ������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

As of March 31, 2020

As of March 31, 2021

¥108.83¥ 15.31¥133.32¥110.71¥ 16.84–

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Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

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230

(2) Average rate for the quarter
For the fiscal year ended March 31, 2020
(Yen)

U.S. dollars������������������
Chinese yuan ��������������
British pound* ������������

Three-month
period ended
June 30, 2019

Three-month
period ended
September 30, 2019

Three-month
period ended
December 31, 2019

Three-month
period ended
March 31, 2020

¥110.00¥ 16.13¥140.88¥107.70¥ 15.37¥132.73¥108.98¥ 15.46¥139.55¥109.22¥ 15.56¥140.20

36. Equity(1) Common stocka. Shares authorized
The number of shares authorized to be issued is as follows:(Thousands of shares)

Ordinary shares*3 ��������������������������������������������������������������

As of March 31, 2020

As of March 31, 2021

7,200,000

7,200,000

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

1,100,660
1,044,907(55,753)
2,089,814

2,089,814––
2,089,814

b. Shares issued
Changes in the number of shares issued are as follows:

For the fiscal year ended March 31, 2021
(Yen)

U.S. dollars������������������
Chinese yuan ��������������

Three-month
period ended
June 30, 2020Three-month
period ended
September 30, 2020Three-month
period ended
December 31, 2020Three-month
period ended
March 31, 2021

¥107.74¥ 15.16¥105.88¥ 15.27¥104.45¥ 15.71¥106.24¥ 16.31(Thousands of shares)

Balance at the beginning of the year����������������������������������
Increase during the year*3��������������������������������������������������
Decrease during the year*4������������������������������������������������
Balance at the end of the year ������������������������������������������

(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
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)(Millions of yen)

U.S. dollar ���������������������������������������������������
Chinese yuan �����������������������������������������������
British pound* ���������������������������������������������

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (64,180)(28,609)(33,010)¥ (153,945)(37,514)–$ (1,390,525)(338,849)–* From the three-month period ended June 30, 2020, Arm Limited, a subsidiary of the Company, changed its functional currency from
British pound to U.S. dollar. This change was made based on the judgement that the primary economic environment in which Arm
Limited operates had changed mainly due to the increase in proportion of the U.S. dollar denominated costs to the total costs in Arm
Limited.
As a result of this change, exchange rates of British pound are not presented from the three-month period ended June 30, 2020 andalso British pound is excluded from the sensitivity analysis as it is no longer considered as a major currency used for translating thefinancial statements of foreign operations.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO*1 Shares
issued by the Company are common stock with no par value.
*2 S hares issued have been fully paid.
*3 For the fiscal year ended March 31, 2020, the increase of the total number of shares authorized and the total number ofshares issued during the year are due to a share split that the Company conducted at a ratio of two-for-one effective June 28,
2019 under the resolution passed at the Board of Directors meeting held on May 9, 2019.
*4 F or the fiscal year ended March 31, 2020, the decrease was primarily due to the resolution passed at the Board of Directors
meeting held on May 30, 2019. The Company retired 55,753 thousand shares of treasury stock on June 10, 2019.

(2) Capital surplus
Capital surplus of the Company includes additional paid-in capital, which is legal capital surplus. Under
the Companies Act of Japan (the “Companies Act”), at least 50% of the proceeds upon issuance ofequity 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 ofshareholders, the transfer of amounts from additional paid-in capital to common stock.
For the fiscal year ended March 31, 2020
(Third-Party Allotment of Z Holdings Corp. shares to SoftBank Corp. and Tender Offer by Z Holdings Corp.)
On June 27, 2019, Z Holdings Corporation issued 1,511,478,050 new shares for ¥456.5 billion to
SoftBank Corp. through a third-party allotment (the “Third-Party Allotment”). Z Holdings Corporation
also 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 of commonshares of Z Holdings Corporation, held by its wholly-owned subsidiary SoftBank Group Japan

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Corporate Information

231

Corporation. As a result, 1,792,819,200 of these shares (equivalent to ¥514.5 billion) were sold to Z
Holdings Corporation on June 27, 2019.
As a result of the Third-Party Allotment and the Tender Offer, the ownership percentage in Z Holdings
Corporation by the Company changed from 48.16% (ownership percentage as of March 31, 2019) to
45.52%.
Associated with this transaction, ¥91,431 million was increased in “Changes in interests in subsidiary” under “Capital surplus.”
For the fiscal year ended March 31, 2021
(Partial sales of SoftBank Corp. shares)
In May 2020, SBGJ, a wholly-owned subsidiary of the Company, transferred a portion of SoftBank
Corp. shares held (ownership percentage 5.0%) as part of the “¥4.5 trillion program.” Additionally, in
September 2020, in order to further enhance its cash reserves, a portion of SoftBank Corp. shares held(ownership percentage 21.7%) was transferred. As a result of the transactions, ¥932,388 million($8,421,895 thousand) of the equivalent amount for gain on sales of SoftBank Corp. shares after
considering income taxes on a consolidation basis is recorded as “Changes in interests in subsidiaries”
in capital surplus.
(Business integration of LINE Corporation and Z Holdings Corporation)
On February 26, 2021, Shiodome Z Holdings G.K., wholly owned by SoftBank Corp., was merged into
LINE Corporation, the surviving company. Subsequently, on March 1, 2021, a share exchange ofcommon shares of LINE Split Preparation Corporation was conducted between Z Holdings Corporation
and A Holdings Corporation. As a result of the transactions, capital surplus increased by ¥245,147
million ($2,214,317 thousand) in “Changes in interests in subsidiaries.” The details are described in“Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation”
under “Note 10. Business combinations.”(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 the option to defer interest payments, the notes have no maturity date, and the Company has an
unconditional right to avoid delivering cash or another financial asset except for the distribution ofresidual assets on liquidation.
Payments of interest were completed on the interest payment dates, July 20, 2020 and January 19,
2021, and “Retained earnings” decreased by ¥15,339 million ($138,551 thousand) and ¥14,800

SoftBank Group Corp. ANNUAL REPORT 2021

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million ($133,683 thousand) (for the fiscal year ended March 31, 2020: decreased by ¥15,344 millionand ¥15,727 million on July 19, 2019 and January 21, 2020), respectively, as “Distribution to owners ofother equity instruments” in the consolidated statement of changes in equity.
In addition, accrued interest, which was not recognized as a distribution to owners of other equity
instruments because the payment had not yet been determined, was ¥6,317 million ($57,059
thousand) as of March 31, 2021 (¥6,210 million as of March 31, 2020.)(4) Retained earnings
Retained earnings of the Company include the reserve legally required as legal retained earnings. The
Companies Act provides that 10% of the dividend from retained earnings shall be appropriated as legal
capital surplus 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 toretained 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 by resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed
the amount available for distribution to the shareholders which is determined by a specific formula.
Changes in treasury stock are as follows:(Thousands of shares)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

46,82733,340(58,349)
21,81821,818336,166(6,686)351,298

Balance at the beginning of the year����������������������������������������������
Increase during the year*1, 2 ����������������������������������������������������������
Decrease during the year*3������������������������������������������������������������
Balance at the end of the year ������������������������������������������������������

*1 For the fiscal year ended March 31, 2020, due to purchases of treasury stock under the resolution passed at the Board of Directors
meeting held on February 6, 2019, the number of treasury stock increased by 19,044 thousand shares (amount purchased ¥215,931
million). In addition, under the resolution passed at the Board of Directors meeting held on May 9, 2019, the Company conducted ashare split at a ratio of two-for-one effective June 28, 2019 and the number of treasury stock increased by 9,573 thousand shares.
*2 F or the fiscal year ended March 31, 2021, due to purchases of treasury stock under the resolution passed at the Board of Directors
meeting held on March 13, 2020, the number of treasury stock increased by 102,960 thousand shares (amount purchased ¥483,971
million ($4,371,520 thousand)). In addition, under the resolutions passed at the Board of Directors meetings held on May 15, 2020,
June 25, 2020, and July 30, 2020, the number of treasury stock increased by 233,201 thousand shares (amount purchased ¥1,742,222
million ($15,736,808 thousand)) as part of the “¥4.5 trillion program.”*3 For the fiscal year ended March 31, 2020, under the resolution passed at the Board of Directors meeting held on May 30, 2019, theCompany retired its treasury stock of 55,753 thousand shares on June 10, 2019. As a result of the transaction, “Retained earnings”
and “Treasury stock” decreased by ¥558,136 million respectively.

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232

(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, 2019����������������������������������������������������������������������������������������������������

¥Equity financial assets
at FVTOCI–¥

Debt financial assets
at FVTOCI

6,661

¥

267

Cash flow hedges¥(45,791)

Exchange differenceson translating foreign
operations¥

329,131

Total¥

290,268

Other comprehensive income(attributable to owners of the parent)������������������������������������������������������������������

(18,518)

(207)

313

55,465(501,064)(464,011)

Transfer to retained earnings����������������������������������������������������������������������������������

18,518(1,339)–––17,179Transfer to accumulated other comprehensive income directly relating to assets
classified as held for sale��������������������������������������������������������������������������������������
As of March 31, 2020 ����������������������������������������������������������������������������������������������

–
¥

–

–

¥

–

5,115

¥

580

3,454
¥

13,128(209,149)¥(381,082)(205,695)¥(362,259)

Other comprehensive income(attributable to owners of the parent)������������������������������������������������������������������

(40)

18,641(190)

29,834652,227

700,472

Transfer to retained earnings����������������������������������������������������������������������������������

40

343

–

–

–

383

Transfer to accumulated other comprehensive income directly relating to assets
classified as held for sale��������������������������������������������������������������������������������������
As of March 31, 2021������������������������������������������������������������������������������������������������

–
¥

–

–

¥

–

24,099

¥

390

–
¥

42,962

(267)
¥

(267)

270,878¥

338,329(Thousands of U.S. dollars)Remeasurements ofdefined benefit plan

As of April 1, 2020����������������������������������������������������������������������������������������������������

$Equity financial assets
at FVTOCI–$

Debt financial assets
at FVTOCI

46,201$

5,239

Exchange differenceson translating foreign
operations

Total

118,580$ (3,442,164)$ (3,272,144)

Cash flow hedges$

Other comprehensive income(attributable to owners of the parent)������������������������������������������������������������������

(361)

168,377(1,716)

269,479

5,891,310

6,327,089

Transfer to retained earnings����������������������������������������������������������������������������������

361

3,099

–

–

–

3,460

Transfer to accumulated other comprehensive income directly relating to assets
classified as held for sale��������������������������������������������������������������������������������������
As of March 31, 2021������������������������������������������������������������������������������������������������

–
$

–

–
$

217,677

–
$

3,523

$

–

(2,412)(2,412)

388,059$ 2,446,734$ 3,055,993

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 46. Other comprehensive income.”

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23337. 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, 2020
Dividends per share

Total dividends

Resolution

Class of shares(Yen)(Millions of yen)

Record date

Effective date

Shareholders’ meeting held on June 19, 2019�����������������������

Common stock¥22*¥23,184

March 31, 2019

June 20, 2019

Board of directors’ meeting held on October 16, 2019�������������

Common stock22

45,567

September 30, 2019

December 9, 2019

Resolution

Class of shares(Yen)

Shareholders’ meeting held on June 25, 2020�����������������������

Common stock

Board of directors’ meeting held on October 22, 2020�������������

Common stock

For the fiscal year ended March 31, 2021
Dividends per share

Total dividends(U.S. dollars)(Millions of yen)(Thousands of U.S. dollars)

Record date

Effective date

¥22

$0.20

¥45,496$410,948

March 31, 2020

June 26, 2020

22

0.20

41,345

373,453

September 30, 2020

December 14, 2020

Record date

Effective date

March 31, 2021

June 24, 2021

* The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Dividends per share” is the actual amount which is not adjusted by the share split conducted after the effective date.

Dividends which will become effective during the fiscal year ending March 31, 2022 are as follows:
Dividends per share
Resolution

Class of shares

Shareholders’ meeting held on June 23, 2021�����������������������

Common stock

SoftBank Group Corp. ANNUAL REPORT 2021

(Yen)

(Millions of yen)

$0.20

¥38,247¥22

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Total dividends(U.S. dollars)

Message from Our CEO

Who We Are

Growth Assets(Thousands of U.S. dollars)$345,470

Management: The Foundation Supporting Our Growth

Financial Section

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234

38. Share-based payment transactions
The Company grants stock options, restricted stock awards and phantom stock as share-based payment
awards.
Share-based payment awards are granted to the Company’s directors and employees based on theterms 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 andcash-settled share-based payments. Expense and liability amounts recognized from share-based
payment awards are as follows:
Expense arising from share-based payments(Millions of yen)

Equity-settled�����������������������������������������������
Cash-settled�������������������������������������������������
Total���������������������������������������������������������

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥7,612332¥7,944¥ 8,834
16,883¥ 25,717$ 79,794
152,498$ 232,292

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥2,49164¥ 24,858
157$ 224,533
1,418

Liability arising from share-based payments(Millions of yen)

Liability arising from share-based payment ���Liability vested in the above �������������������������

(Thousands of U.S. dollars)(1) Stock option plana. Details of the stock option plan
The Company grants stock options as equity-settled share-based payments and cash-settled
share-based payments. The details of the Company’s stock option plan for the years ended
March 31, 2020 and 2021 are as follows:(a) SoftBank Group Corp.
SoftBank Group Corp. grants stock options to its directors and employees. Shares granted by
the exercise of stock options are those issued by SoftBank Group Corp.
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. The
amounts of “Stock options” for each fiscal year are recorded after adjustments of the share
split.

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Year issued / Name

Grant dateDue date for exercise

2016 July Stock Acquisition Rights*1
2017 February Stock Acquisition Rights*1
2017 July Stock Acquisition Rights*1
2018 August Stock Acquisition Rights*2
2019 July Stock Acquisition Rights*32019 November Stock Acquisition Rights*42020 August Stock Acquisition Rights*4

July 28, 2016
February 27, 2017
July 28, 2017
August 31, 2018
August 13, 2019
December 23, 2019
August 28, 2020

July 31, 2022
February 28, 2023
July 31, 2023
August 31, 2025
August 31, 2025
December 31, 2026
August 31, 2027

*1 V esting condition
Stock options vest when the service period requirements are met, and the vesting period is approximately 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 V esting condition
Stock options vest when the service period requirements are met, and the vesting period is 3 years.
The amount of the stock acquisition rights exercisable by an entitled person is limited as prescribed in “i” through “iv” below
when the number of shares granted by the stock acquisition rights initially allotted is over 800. Fractional points, if any, of theexercisable stock acquisition rights are rounded down.
i.	from September 1, 2021 through August 31, 2022: 25% of the allocated amount of stock acquisition rights
ii.	from September 1, 2022 through August 31, 2023: 50% of the allocated amount of stock acquisition rights along withthe stock acquisition rights exercised in the period “i” aboveiii.	from September 1, 2023 through August 31, 2024: 75% of the allocated amount of stock acquisition rights along withthe stock acquisition rights exercised in the period “i” and “ii” aboveiv.	from September 1, 2024 through August 31, 2025: 100% of the allocated amount of stock acquisition rights along withthe stock acquisition rights exercised in the period “i” through “iii” above
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 approximately 2 years.
The amount of the stock acquisition rights exercisable by an entitled person is limited as prescribed in “i” through “iv” below
when the number of shares granted by the stock acquisition rights initially allotted is over 800. Fractional points, if any, of theexercisable stock acquisition rights are rounded down.
i.	from September 1, 2021 through August 31, 2022: 25% of the allocated amount of stock acquisition rights
ii.	from September 1, 2022 through August 31, 2023: 50% of the allocated amount of stock acquisition rights along withthe stock acquisition rights exercised in the period “i” aboveiii.	from September 1, 2023 through August 31, 2024: 75% of the allocated amount of stock acquisition rights along withthe stock acquisition rights exercised in the period “i” and “ii” aboveiv.	from September 1, 2024 through August 31, 2025: 100% of the allocated amount of stock acquisition rights along withthe stock acquisition rights exercised in the period “i” through “iii” above
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested
acquisition rights are forfeited.
*4 Vesting condition
Stock options vest when the service period requirements are met, and the vesting period is approximately 3 years.
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested
acquisition rights are forfeited.

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235

(b) SoftBank Corp.
SoftBank Corp. grants stock options to its directors and employees. Shares granted by theexercise of stock options are those issued by SoftBank Corp.
Year issued / Name

Grant dateDue date for exercise

2018 March Stock Acquisition Rights*12020 July Stock Acquisition Rights*22021 January Stock Acquisition Rights*3

March 30, 2018
July 31, 2020
January 22, 2021

March 31, 2025
July 31, 2027
March 31, 2028

*1 Vesting condition
In case the common stock of SoftBank Corp. are newly listed by March 31, 2020 on the financial instruments market
established by the financial instruments exchange, 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 to March 31, 2022.
c. up to 100% of the total allotted rights including the rights exercised during the period of “a” and “b” is exercisablefrom 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, thenumber 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 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 to March 31, 2022.
c. up to 60% of the total allotted rights including the rights exercised during the period of “a” and “b” is exercisablefrom 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” isexercisable 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” isexercisable from 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.
*2 Vesting condition
Stock options vest when the service period requirements are met, and the vesting period is approximately 2 years.
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested
acquisition rights are forfeited.
*3 Vesting condition
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, 2023 to March 31, 2024.
b. up to 60% of the total allotted rights including the rights exercised during the period of “a” is exercisable from April 1,
2024 to March 31, 2025.
c. up to 100% of the total allotted rights including the rights exercised during the period of “a” and “b” is exercisablefrom April 1, 2025 to March 31, 2028.
ii. where the total number of shares granted by the stock acquisition rights initially allotted is 12,000 or more shares, thenumber of the stock acquisition rights which an entitled person is able to exercise is limited to the following number

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during the following period. Fractional points, if any, of the exercisable stock acquisition rights are rounded down.
a. up to 20% of the total allotted rights is exercisable from April 1, 2023 to March 31, 2024.
b. up to 40% of the total allotted rights including the rights exercised during the period of “a” is exercisable from April 1,
2024 to March 31, 2025.
c. up to 60% of the total allotted rights including the rights exercised during the period of “a” and “b” is exercisablefrom April 1, 2025 to March 31, 2026.
d. up to 80% of the total allotted rights including the rights exercised during the period of “a”, “b”, and “c” isexercisable from April 1, 2026 to March 31, 2027.
e. up to 100% of the total allotted rights including the rights exercised during the period of “a”, “b”, “c”, and “d” isexercisable from April 1, 2027 to March 31, 2028.
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.

(c) Z Holdings Corporation
Z Holdings Corporation grants stock options to directors and employees of Z Holdings
Corporation and its subsidiaries. Shares granted by the exercise of stock options are thoseissued by Z Holdings Corporation.
Year issued / Name

Grant dateDue date for exercise

2010*1

From May 11, 2010 throughFebruary 8, 2011
From June 3, 2011 throughFebruary 17, 2012
May 16, 2012

From April 27, 2020 throughJanuary 25,2021
From May 20, 2021 throughFebruary 3, 2022
May 2, 2022
From July 29, 2022
through July 8, 2029
From July 29, 2022
through July 8, 2029
From July 29, 2022
through July 8, 2029
From November 5, 2023
through November 5, 2030
From November 5, 2023
through November 5, 2030

2011*1
2012 1st*1
2020 LINE 22nd*2,32020 LINE 24th*2,42020 LINE 25th*2,42020 LINE 26th*2,52020 LINE 28th*6

March 1, 2021
March 1, 2021
March 1, 2021
March 1, 2021
March 30, 2021

*1 V esting condition
Share options mainly vest in stages beginning after two years from the grant date. One-half of the total granted shares vests after
two years from the grant date, and one-fourth vests per year for the subsequent two years. Vesting requires continuous service
from the grant date to the vesting date. When the holder of vested shares options retires, those vested share options are forfeited.
*2 S tock acquisition rights to be provided for Z Holdings Corporation’s participants
Based on the capital alliance contract stipulated under the Z Holdings Corp. group’s governance control after businessintegration entered into on December 23, 2019, with the effective date of the share exchange of Z Holdings Corporation andLINE Corporation as the grant date, Z Holdings Corporation granted alternative stock options to directors and employees of Z
Holdings Corporation and its group companies substituted for the stock options which A Holdings Corporation was granting
to directors and employees of A Holdings Corporation and its group companies.
*3 Vesting condition
If stock price of Z Holdings Corporation’s common stock meets the following “i” to “iii”, the number of shares of stockacquisition rights specified in “i”, “ii”, and “iii” is exercisable.

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		i. A t any of July 29, 2022 through July 29, 2025, including 10 days before the last business day (excluding the day of
unclosing transaction of Z Holdings Corporation’s common stock. Same as the following “i” to “iii”), if the average ofclosing price of Z Holdings Corporation’s common stock ordinary transaction on the Tokyo Stock Exchange exceeds ¥640(“Basic Stock Price”); up to 20% of the total allotted rights is exercisable		ii. A t any of July 29, 2023 through July 29, 2026, including 10 days before the last business day, if the average of closing
price of Z Holdings Corporation’s common stock ordinary transaction on the Tokyo Stock Exchange exceeds basic stock
price; up to 30% of the total allotted rights is exercisable
		iii. A t any of July 29, 2024 through July 29, 2027, including 10 days before the last business day, if the average of closing
price of Z Holdings Corporation’s common stock ordinary transaction on the Tokyo Stock Exchange exceeds basic stock
price; up to 50% of the total allotted rights is exercisable
Regardless of the exercise period (from July 29, 2022 to July 8, 2029. If the last day of the exercise period conflicts with a holiday
of Z Holdings Corporation, its last business day shall be the last day of the exercise period), the holder of stock acquisition rights
is able to exercise the stock acquisition rights during the period specified in “a”, “b” and “c” (including the first day and thelast day), to the extent the number specified in “a”, “b” and “c”, deducting the number of stock acquisition rights already
exercised. In this case, if a fraction of less than one unit arises from the number of exercisable stock acquisition rights calculated
based on such ratio, only the number of stock acquisition rights rounded down to the nearest whole number can be exercised.
a. up to 20% of the total allotted rights, exercisable from July 29, 2022 to July 8, 2029
b. up to 50% of the total allotted rights, exercisable from July 29, 2023 to July 8, 2029
c. up to 100% of the total allotted rights, exercisable from July 29, 2024 to July 8, 2029
*4 Vesting condition
Regardless of the exercise period (from July 29, 2022 to July 8, 2029. If the last day of the exercise period conflicts with aholiday of Z Holdings Corporation, its last business day shall be the last day of the exercise period), the holder of stockacquisition rights is able to exercise the stock acquisition rights during the period specified in “i”, “ii” and “iii” (including thefirst day and the last day), to the extent the number specified in “i”, “ii” and “iii”, deducting the number of stock acquisitionrights already exercised. In this case, if a fraction of less than one unit arises from the number of exercisable stock acquisitionrights calculated based on such ratio, only the number of stock acquisition rights rounded down to the nearest whole number
can be exercised.
		i. u p to 20% of the total allotted rights, exercisable from July 29, 2022 to July 8, 2029
		ii. u p to 50% of the total allotted rights, exercisable from July 29, 2023 to July 8, 2029
		 iii. u
 p to 100% of the total allotted rights, exercisable from July 29, 2024 to July 8, 2029
*5 Vesting condition
If stock price of Z Holdings Corporation’s common stock meets the following “i” to “iii”, the number of shares of stockacquisition rights specified in “i”, “ii”, and “iii” is exercisable.
		i. A t any of November 5, 2023 through November 5, 2026, including 10 days before the last business day (excluding the
day of unclosing transaction of Z Holdings Corporation’s common stock. Same as the following “i” to “iii”), if the averageof closing price of Z Holdings Corporation’s common stock ordinary transaction on the Tokyo Stock Exchange exceeds¥640 (“Basic Stock Price”); up to 20% of the total allotted rights is exercisable		ii. A t any of November 5, 2024 through November 5, 2027, including 10 days before the last business day, if the average ofclosing price of Z Holdings Corporation’s common stock ordinary transaction on the Tokyo Stock Exchange exceeds basic
stock price; up to 30% of the total allotted rights is exercisable
		iii. A t any of November 5, 2025 through November 5, 2028, including 10 days before the last business day, if the average ofclosing price of Z Holdings Corporation’s common stock ordinary transaction on the Tokyo Stock Exchange exceeds basic
stock price; up to 50% of the total allotted rights is exercisable
Regardless of the exercise period (from November 5, 2023 to November 5, 2030. If the last day of the exercise period conflicts witha holiday of Z Holdings Corporation, its last business day shall be the last day of the exercise period), the holder of stock acquisitionrights is able to exercise the stock acquisition rights during the period specified in “a”, “b” and “c” (including the first day and thelast day), to the extent the number specified in “a”, “b” and “c”, deducting the number of stock acquisition rights already
exercised. In this case, if a fraction of less than one unit arises from the number of exercisable stock acquisition rights calculated
based on such ratio, only the number of stock acquisition rights rounded down to the nearest whole number can be exercised.
a. up to 20% of the total allotted rights, exercisable from November 5, 2023 to November 5, 2030
b. up to 50% of the total allotted rights, exercisable from November 5, 2024 to November 5, 2030
c. up to 100% of the total allotted rights, exercisable from November 5, 2025 to November 5, 2030
*6 Vesting condition
Regardless of the exercise period (from November 5, 2023 to November 5, 2030. If the last day of the exercise period conflicts with

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEOa holiday of Z Holdings Corporation, its last business day shall be the last day of the exercise period), the holder of stock acquisitionrights is able to exercise the stock acquisition rights during the period specified in “i”, “ii” and “iii” (including the first day and thelast day), to the extent the number specified in “i”, “ii” and “iii”, deducting the number of stock acquisition rights already
exercised. In this case, if a fraction of less than one unit arises from the number of exercisable stock acquisition rights calculated
based on such ratio, only the number of stock acquisition rights rounded down to the nearest whole number can be exercised.
		 i.	up to 20% of the total allotted rights, exercisable from November 5, 2023 to November 5, 2030
		 ii.	up to 50% of the total allotted rights, exercisable from November 5, 2024 to November 5, 2030
		 iii.	up to 100% of the total allotted rights, exercisable from November 5, 2025 to November 5, 2030

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 the period is ¥6,265 ($56.59) (for the fiscal year ended March 31, 2020: ¥4,768).
Fair value is measured as follows:
Fiscal year ended March 31, 2020

Year issued / Name

2019 July stock acquisition rights

2019 November stock acquisition rights

Black-Scholes model

Black-Scholes model

Valuation method used
Key inputs and assumptions:
Weighted-average stock price����

(Yen)

(Yen)

¥4,895¥4,663¥Weighted-average exercise price����

1¥

32.10 – 36.44%

Volatility of stock price*����

1

31.90%

Estimated residual period

2 – 5 years

3 years

Estimated dividend ����������

¥22/per share¥22/per share

Risk-free interest rate�������

(0.31) – (0.26) %(0.09) %Fiscal year ended March 31, 2021

Year issued / Name

2020 August stock acquisition rights

Valuation method used
Key inputs and assumptions:
Weighted-average stock price ����
Weighted-average exercise price
Volatility of stock price*����

Black-Scholes model
(Yen)

(USD)

¥6,397$57.78¥1$ 0.0147.67%

Estimated residual period

3 years

Estimated dividend ����������

¥44/per share $0.40/per share

Risk-free interest rate�������

(0.11) %* 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.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

237

(b) SoftBank Corp.
The weighted-average fair values at the measurement date of the stock options granted
during the period are ¥1,254 ($11.33) and ¥76 ($0.69) for 2020 July stock acquisition rights
and 2021 January stock acquisition rights, respectively.
Fair value is measured as follows:

Fiscal year ended March 31, 2021

Year issued / Name

2020 LINE 26th

2020 LINE 28th

Valuation method used

Binomial model

Binomial model

Key inputs and assumptions:
Stock price���������������������������
Exercise price*1 ��������������

Fiscal year ended March 31, 2021

Year issued / Name

2020 July stock acquisition rights

2021 January stock acquisition rights

Volatility of stock price*2

Black-Scholes model

Black-Scholes model

Duration to maturity�����������

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�������

(Yen)

(USD)

(Yen)

(USD)

¥1,415$12.78¥1,347$12.17¥1$ 0.0120.47%
2 years¥85/per share $0.77/per share
0.07%¥1,366$12.3420.70%
2 – 6 years¥86/per share $0.78/per share
0.10%* Volatility of the stock price is calculated based on the performance of the stock price for entire period since SoftBank Corp.
was listed on December 19, 2018 if the listing period is shorter than the estimated residual period.

(c) Z Holdings Corporation
The weighted-average fair value at the measurement date of the stock options granted
during the period is ¥312 ($2.82).

Estimated dividend yield*3
Risk-free interest rate�������

2020 LINE 22nd

2020 LINE 24th

2020 LINE 25th

Forfeited������������������������

Binomial model

Binomial model

Binomial model

Exercised������������������������

Key inputs and assumptions:
Stock price������������������������

(Yen)

(Yen)

(Yen)

Matured������������������������
Ending balance –Unexercised ����������������
Ending balance –Exercisable ������������������

¥648.5$5.86
Exercise price*1 �������������� ¥ 298$2.69
Volatility of stock price*2
36.33%
Duration to maturity��������
8.28 years
Estimated dividend yield*3
0.86%
Risk-free interest rate�������
0.070%SoftBank Group Corp. ANNUAL REPORT 2021

¥648.5
$5.86
¥ 298
$2.69
36.33%
8.28 years
0.86%
0.070%(USD)¥648.5
$5.86
¥ 298
$2.69
36.33%
8.28 years
0.86%
0.070%

Table of Contents

Message from Our CEO

35.29%
9.62 years
0.86%
0.130%

35.33%
9.62 years
1.01%
0.075%

Fiscal year ended March 31, 2021
Weighted-average
exercise priceFiscal year ended March 31, 2020
Weighted-average
exercise price

Valuation method used

(USD)

(USD)

$4.97
$4.34

(a) SoftBank Group Corp.

Year issued / Name

(USD)

(Yen)

¥550.6¥ 481

c. 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:

Granted ������������������������

Fiscal year ended March 31, 2021

(USD)

$5.86
$4.34

*1 T he achievement probability of stock price conditions is reflected for 2020 LINE 22nd and 26th.
*2 V olatility of the stock price is calculated based on the performance of the stock price for the most recent period dependingon the period to maturity.
*3 E stimated dividend yield is calculated based on the most recent dividend results.

Beginning balance –Unexercised ����������������

Fair value is measured as follows:(Yen)¥648.5¥ 481

Who We Are

Growth Assets

Number of shares(Yen)

Number of shares

(Yen)

(USD)

17,561,200
267,000(170,300)(3,140,200)–¥3,802
1
3,007
3,206
–

14,517,700
188,900(55,300)(6,686,600)–¥3,871
1
1,733
4,285
–

$34.97
0.01
15.65
38.70
–

14,517,700

3,871

7,964,700

3,446

31.13

12,902,000¥4,355

6,195,400¥4,429$40.01

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

238

The unexercised options as of March 31, 2021 are as follows:
Range of exercise price
(Yen)
(USD)

¥
1
3,080
4,446
4,791

$ 0.01
27.82
40.16
43.28

Total����������������������������

Number of shares

1,769,300
1,300,000
46,8004,848,600
7,964,700(c) Z Holdings Corporation

Weighted-average exercise price
(Yen)
(USD)

¥
1
3,080
4,446
4,791
¥3,446Weighted-averageremaining contract period(year)$ 0.01
27.82
40.16
43.28
$31.13

4.7
1.3
1.9
2.3
2.7

(b) SoftBank Corp.
Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Weighted-average
exercise price(Yen)

Number of Shares

Weighted-average
exercise price
(Yen)
(USD)

¥623
–
623
–

115,093,500
103,930,500(846,700)(23,236,100)

¥623
1,361
775
623

$5.63
12.29
7.00
5.63

623

194,941,200

1,016

9.18

¥–

20,029,600

¥623

$5.63

Number of shares

Beginning balance –Unexercised ���������������� 117,776,100
Granted ������������������������
Forfeited������������������������

–(2,682,600)–

Exercised������������������������
Ending balance –Unexercised ���������������� 115,093,500
Ending balance ––Exercisable ������������������

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Number of shares

Weighted-average
exercise price(Yen)

Number of shares

Weighted-average
exercise price
(Yen)
(USD)

47,246,200–
Forfeited������������������������ (45,951,600)
Exercised������������������������
(131,900)
Matured ����������������������
(345,300)

¥431
–
435
305
305

817,400
197,416,450(60,300)(287,400)(188,100)

¥303
384
302
308
345

$2.74
3.47
2.73
2.78
3.12

817,400

303

197,698,050

383

3.46

817,400¥303

281,600

¥269

$2.43

Beginning balance –Unexercised ����������������
Granted ������������������������

Ending balance –Unexercised ����������������
Ending balance –Exercisable ������������������

The unexercised options as of March 31, 2021 are as follows:
Range of exercise price
(Yen)

(USD)

¥201 – ¥300
401 – 500

$1.82 – $2.71
3.62 – 4.52

Weighted-average exercise price

Weighted-averageremaining contract period

Number of shares

(Yen)

(USD)

(year)

105,345,400
92,352,650
Total��������������������������������������� 197,698,050

¥298
481
¥383

$2.69
4.34
$3.46

8.3
9.6
8.9

Financial Section

Corporate Information

239

The unexercised options as of March 31, 2021 are as follows:
Range of exercise price
(Yen)
(USD)

¥ 623
1
1,366

Number of shares$ 5.630.01
12.34

91,184,100
409,800
103,347,300
Total���������������������������� 194,941,200

SoftBank Group Corp. ANNUAL REPORT 2021

Weighted-average exercise price
(Yen)
(USD)

¥ 623
1
1,366
¥ 1,016Weighted-averageremaining contract period(year)$ 5.630.01
12.34$ 9.18

Table of Contents

4.0
6.3
7.0
5.6

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth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, 2021

Fiscal year ended March 31, 2020

Number ofshares exercisedYear issued / Name

2016 – July
Stock Acquisition
Rights2017 – February
Stock Acquisition
Rights2017 – July
Stock Acquisition
Rights

Weighted-averagestock priceat exercise(Yen)

2,900,800¥5,27840,0005,250

199,400

5,366

Year issued / Name

2016 - July
Stock Acquisition
Rights2017 - February
Stock Acquisition
Rights2017 - July
Stock Acquisition
RightsNumber ofshares exercised

Weighted-averagestock price at exercise
(Yen)
(USD)

1,955,000¥7,564$68.32103,200

7,589

68.55

4,628,400

7,986

72.13

(b) SoftBank Corp.

Year issued / Name

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Weighted-averagestock priceat exercise(Yen)

Weighted-averagestock price at exercise
(Yen)
(USD)

Number ofshares exercised––Year issued / Name

Number ofshares exercised2018 March
Stock Acquisition– Rights

23,236,100¥1,385$12.51(c) Z Holdings Corporation
Fiscal year ended March 31, 2021

Fiscal year ended March 31, 2020

Year issued / Name

2009
2010
2011
2012

Number ofshares exercised

Weightedaverage stock
price at exercise(Yen)

14,10052,10063,100
2,600

¥352
415
358
401

SoftBank Group Corp. ANNUAL REPORT 2021

Year issued / Name

2009
2010
2011
2012

Number ofshares exercised–
150,400
129,000
8,000

Weighted-averagestock price at exercise
(Yen)
(USD)

¥ –
520
593
534

Table of Contents

$ –
4.70
5.36
4.82

Message from Our CEO(2) Restricted stock award plan
The Company adopts restricted stock award plans where the Company grants stocks, the transfer ofwhich is restricted for a certain period until vested, and is accounted for as equity-settled share-based
payment.
The details of the Company’s restricted stock award plans for the fiscal year ended March 31, 2021
are primarily as follows:
SoftBank Corp.
In June 2020, SoftBank Corp. granted shares of SoftBank Corp. as restricted stock awards to its five
directors and three corporate executive officers.
The granted shares as restricted stock awards are vested on the day of grant, and shall not betransferred, pledged as collateral or disposed of from the grant day to the day of resignation from anyof the positions of officers of SoftBank Corp.
The number of restricted stocks granted for the fiscal year ended March 31, 2021 was 565,800. The
fair value of restricted stocks granted is calculated based on the common stock price of SoftBank Corp.
on the grant date, and the fair value of restricted stocks granted for the fiscal year ended March 31,
2021 was ¥1,431.5 ($12.93) per share.

(3) Phantom stock
The Company adopts phantom stock awards where the Company pays in cash based on the stock priceat the vesting date, and they are accounted for as cash-settled share-based payments.
The details of the Company’s phantom stock for the fiscal year ended March 31, 2021 are primarily as follows:Arm
In December 2019, Arm introduced a share-based compensation plan for all employees of Arm and its
group companies. Under this compensation plan, it is determined whether to be settled by stock of
Arm Limited or cash dependent on future conditions based on the terms of the plan.
For the fiscal year ended March 31, 2020, the Company considered it to be settled by stock of Arm
Limited on the premise of a future IPO and accounted for the compensation plan as an equity-settled
share-based payment transaction. Then in September 2020, the Company entered into a definitive
agreement with NVIDIA to sell all of its shares in Arm. As a result of the agreement, the likelihood of
the plan being settled by cash increased. Therefore, for the fiscal year ended March 31, 2021, theCompany changed its accounting treatment and accounted for it as cash-settled share-based paymenttransaction.
The number of units outstanding as of March 31, 2021 is 15,706,574. Of the outstanding units, only
50% would vest when the sale of its all shares in Arm to NVIDIA is completed and the vested units
would be settled by cash at $38.04 per unit. The plan requires employees to remain in employment
until vesting date.
Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

24039. Net sales(1) Breakdown of net sales
The components of net sales are as follows.

(2) Contract balance
The components of contract balances are as follows.

(Millions of yen)

Fiscal year ended
March 31, 2020

SoftBank segment
Telecommunications
Retail consumer
Service revenue*1
Wireless telecom services���������������
Broadband services�������������������������
Electricity*2�������������������������������������
Products and other sales*2 ���������������
Business�����������������������������������������������
Distribution���������������������������������������������
Yahoo*3
Advertising�������������������������������������������
Business�����������������������������������������������
Personal�����������������������������������������������
Other���������������������������������������������������
Other �����������������������������������������������������
Subtotal �����������������������������������������
Arm segment
License revenue �������������������������������������
Royalty revenue �������������������������������������
Other*4���������������������������������������������������
Subtotal �����������������������������������������
Other*4�������������������������������������������������������
Total�����������������������������������������������

Fiscal year ended
March 31, 2021

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

¥1,658,709
383,783
77,233558,826
626,795
439,776¥1,659,848
399,559
130,941
562,457
681,137
478,402$14,992,756
3,609,060
1,182,739
5,080,453
6,152,443
4,321,218

340,693472,655
215,544
2,585
76,3184,852,917

368,318554,619257,2312,275
96,1895,190,976

3,326,872
5,009,656
2,323,467
20,549868,837
46,888,050

60,567
120,725
15,399196,691
189,330¥5,238,938

61,684135,460
11,773208,917228,274¥5,628,167

557,167
1,223,557
106,341
1,887,065
2,061,910$50,837,025

Receivables arising fromcontracts with customers ��������
Contract assets������������������������
Contract liabilities*������������������

(Millions of yen)(Thousands of U.S. dollars)

As of April 1, 2019

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

¥1,336,584
140,586
274,252¥999,951
66,538167,615¥959,189
32,298250,813$8,663,978291,735
2,265,495* The increase of contract liabilities for the fiscal year ended March 31, 2021 is mainly due to a license agreement entered into by
Arm and NVIDIA concurrently with the definitive agreement entered into by the Company and NVIDIA to sell all of shares in Arm in
September 2020. The details of the definitive agreement are described in “(Sell of all shares in Arm)” under “Note 52. Additional
information.”Contract 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.
Contract 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
performance obligations.
For the fiscal year ended March 31, 2021, impairment loss on receivables related to revenue fromcontracts with customers was ¥8,713 million ($78,701 thousand) (for the fiscal year ended March 31,
2020: ¥11,595 million.)
Of the amount of net sales recognized for the fiscal year ended March 31, 2021, ¥102,107 million($922,292 thousand) was included in the beginning balance of contract liabilities as of that date (forthe fiscal year ended March 31, 2020: ¥91,174 million.)*1 “ Telecom service revenue” of the SoftBank segment is renamed to “Service revenue.”*2 “Electricity” is presented as a separate line item because of its increased significance, which was included in “Products and othersales” for the fiscal year ended March 31, 2020. To reflect this change, similar reclassifications have been made for the fiscal year
ended March 31, 2020. As a result, ¥77,233 million is reclassified from “Products and other sales” to “Electricity”, and after thereclassification, “Products and other sales” of ¥558,826 million is presented.
*3 S ubsequent to the business integration of Z Holdings Corporation and LINE group, sales of LINE group are included.
*4 A s a result of the change of the organizational structure of Arm in the fiscal year ended March 31, 2021, sales of Treasure Databusiness and other IoT related business, which were previously included in “Arm segment”, are included in “Other.” To reflect thischange, ¥9,586 million is reclassified from “Arm segment” to “Other” for the fiscal year ended March 31, 2020.

(3) Transaction price allocated to unsatisfied performance obligations
The aggregate amount of transaction prices allocated to unsatisfied (or partially unsatisfied) performance obligations as of March 31, 2021 is ¥328,046 million ($2,963,111 thousand) (as of March 31,
2020: ¥157,100 million.)
The unsatisfied performance obligations of ¥193,889 million ($1,751,323 thousand) as of March 31,
2021 (as of March 31, 2020: ¥39,786 million) arise primarily from license contracts related to Arm’s
technology in the Arm segment and of ¥120,155 million ($1,085,313 thousand) as of March 31, 2021
(as of March 31, 2020: ¥102,407 million) arise primarily from mobile communications services andmobile device rental services in the SoftBank segment.
The unsatisfied performance obligations in the Arm segment include performance obligations undera license agreement entered into by Arm and NVIDIA concurrently with the definitive agreement
entered into in September 2020 by the Company and NVIDIA to sell all of shares in Arm. The unsatisfied performance obligations under the license agreement of NVIDIA will be recognized as revenue overa twenty-year period from the execution date. Other than the license agreement of NVIDIA, majority of

SoftBank Group Corp. ANNUAL REPORT 2021

Who We Are

The above amount of net sales for the fiscal year ended March 31, 2021 includes ¥114,195 million($1,031,479 thousand) (for the fiscal year ended March 31, 2020: ¥108,958 million) of revenue arisingfrom other sources than those arising from IFRS 15, such as lease contracts at the SoftBank segment.

Table of Contents

Message from Our CEO

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

241the unsatisfied performance obligations in the Arm segment are expected to be recognized as revenue
within two years. The details of the definitive agreement are described in “(Sell of all shares in Arm)”under “Note 52. Additional information.”
The unsatisfied performance obligations in the SoftBank segment are expected to be recognized asrevenue primarily within three years.
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.

40.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 �����������������������������

41. Gain on investments(1) Gain and loss on investments at Investment Business of Holding Companies
The components of gain and loss on investments at Investment Business of Holding Companies are as follows:(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021–

¥421,755$3,809,547

1,218,527–––(20,537)(185,503)–

134,074

1,211,038–(413)(672,479)(66,343)
5,016¥ 484,308(610,690)
220,875
609,734
185,769
4,964¥945,944(5,516,123)
1,995,077
5,507,488
1,677,979
44,838$8,544,341

Fiscal year ended
March 31, 2020

Gain relating to sales of T-Mobile shares*1���������������
Gain relating to settlement of prepaid forward
contracts using Alibaba shares*2���������������������������
Realized loss on sales of investments at asset
management subsidiaries�������������������������������������
Unrealized gain on valuation of investments at asset
management subsidiaries�������������������������������������
Derivative loss on investments at asset management
subsidiaries ���������������������������������������������������������
Realized gain (loss) on sales of investments �������������

(Millions of yen)(Thousands of U.S. dollars)

Unrealized gain (loss) on valuation of investments*3�

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

Derivative gain (loss) on investments*4, 5�������������������

¥ (1,178,466)(824,575)(586,949)(481,638)(260,663)(216,304)¥ (1,277,754)(846,932)(738,107)(492,297)(271,173)(221,995)$ (11,541,451)(7,650,005)(6,667,031)(4,446,726)(2,449,399)(2,005,194)(191,490)(904,268)¥ (4,644,353)(172,184)(1,004,293)¥ (5,024,735)(1,555,271)(9,071,383)$ (45,386,460)

Other �������������������������������������������������������������������
Total ���������������������������������������������������������

¥“Depreciation and amortization” includes disposal of “Property, plant and equipment,” “Right-ofuse assets,” and “Intangible assets” as well as amortization of long-term prepaid expenses which arerecorded in “Other non-current assets” in the consolidated statement of financial position.

*1 On June 26, 2020, the Company transferred 173,564,426 shares out of 304,606,049 shares of T-Mobile common stock held and¥280,341 million ($2,532,210 thousand) of gain on the sales of shares of associates was recorded for the fiscal year ended March
31, 2021. Additionally, the Company transferred 5,000,000 shares on July 16, 2020 and 19,750,000 shares on August 3, 2020 at$103.00 per share. As a result of the transactions, ¥3,122 million ($28,200 thousand) of realized loss on sales of investments and¥3,014 million ($27,224 thousand) of gain related to derecognition of derivative financial liabilities were recorded for the fiscal year
ended March 31, 2021. The derivative financial liabilities were recorded as the difference between the transaction price and thefair value of T-Mobile shares as of June 30, 2020 in the condensed interim consolidated financial statements as of June 30, 2020
because the transaction price was fixed at $103.00 per share under the agreement dated June 26, 2020.
In addition, due to the decrease in voting rights ratio that resulted from the share transfer, the Company had no significant
influence over T-Mobile and T-Mobile was no longer considered as an equity method associate of the Company on June 26, 2020.
Accordingly, ¥296,013 million ($2,673,769 thousand) of gain from remeasurement relating to discontinuing the use of the equity
method for the shares, which were continuously held at the time of discontinuing the use of the equity method, was recorded forthe fiscal year ended March 31, 2021.
Furthermore, ¥154,491 million ($1,395,457 thousand) of derivative loss in relation to call options over T-Mobile shares granted to
Deutsche Telekom was recorded at the time of the execution of the agreement for the fiscal year ended March 31, 2021.
As a result of the transactions, ¥421,755 million ($3,809,547 thousand) of gain relating to sales of T-Mobile shares was recorded forthe fiscal year ended March 31, 2021. The details are described in “(The transfer of T-Mobile shares)” under “Note 52. Additional
information.”*2 On June 3, 2019, a variable prepaid forward contract, which WRH LLC, a wholly-owned subsidiary of the Company, entered intowith Mandatory Exchangeable Trust (the “Trust”) in June 2016, in order to sell Alibaba shares, was settled by 73,240,200 shares of
Alibaba (equivalent to 2.8% of voting right of Alibaba as of March 31, 2019). Subsequently, ¥1,218,527 million of “Gain relating tosettlement of variable prepaid forward contract using Alibaba shares” was recorded for the fiscal year ended March 31, 2020.
The details of the variable prepaid forward contract are as follows.
WRH LLC entered into the variable prepaid forward contract on June 10, 2016, and received proceeds of $5.4 billion (¥578,436
million) as advances received on the sale.
The Trust, on the other hand, utilized Alibaba shares scheduled to be transferred from WRH LLC at the time 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 theTrust was $5.4 billion, which is after certain amounts from the $6.6 billion total of Trust Securities were deducted in order topurchase U.S. Treasury securities, which would fund distributions on the Trust Securities, and cover expenses for the issuance of the

SoftBank Group Corp. ANNUAL REPORT 2021

Who We Are

Employees benefit cost�����������������������������������������
Sales commissions and sales promotion expenses�������
Service outsourcing expenses �������������������������������
Telecommunications equipment usage fees�����������
Amortization of contract acquisition cost andcontract performance cost ���������������������������������
Other�������������������������������������������������������������������
Total���������������������������������������������������������

Table of Contents

Message from Our CEO

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

242

Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conducted concurrently with the exchangeof Trust Securities. At the exchange date (June 3, 2019), Trust Securities are exchanged for a certain number of ADSs, determinedby 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.
The Company accounts for the variable prepaid forward contract by bifurcating the main contracts and embedded derivatives.
The Company received ¥578,436 million and initially recognized ¥674,023 million as financial liabilities relating to the sale ofshares through the variable prepaid forward contract and ¥95,587 million as derivative assets. Subsequent to initial recognition,
financial liabilities relating to the sale of shares through the variable prepaid forward contract were measured at amortized cost andembedded derivatives were measured at fair value.

(3) Gain and loss on other investments
The components of gain and loss on other investments are as follows:

Realized gain on sales of investments ���������������������
Unrealized gain (loss) on valuation of investments�
Derivative gain (loss) on investments���������������������
Other�������������������������������������������������������������������
Total���������������������������������������������������������

Outline of the transaction

Wholly-owned subsidiary

SubsidiaryWest Raptor Holdings, LLC

Interest expenses* �����������������������������������������������

Mandatory Exchangeable Trust$6.6 billion for the total
issuance amount ofTrust Securities

Fiscal year ended
March 31, 2021

3,188
(55,741)(4,876)7,835¥ (49,594)¥ 11,185
259,375
9,158
11,320¥291,038$ 101,030
2,342,833
82,721
102,248$2,628,832(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (293,897)¥ (307,250)$ (2,775,269)¥* “Interest expenses” are incurred mainly by financial liabilities measured at amortized cost. For the fiscal year ended March 31, 2021,
the amount of lease expenses incurred from lease liabilities which was recorded in “Interest expenses” was ¥ (15,815) million ($(142,851) thousand) (for the fiscal year ended March 31, 2020: ¥ (19,964) million.)

Offering of Mandatory
Exchangeable Trust Securities(“Trust Securities”)

Investors

43. Income on equity method investments
For the fiscal year ended March 31, 2020

*3 For the fiscal year ended March 31, 2020, the amount of ¥488,479 million of loss was recognized due to the decline in fair value of
WeWork shares held by a wholly-owned subsidiary of the Company.
In addition, gain and loss on valuation of WeWork shares held by SVF1 are included in “Gain (loss) on investments at SVF1, SVF2,
and others” under the consolidated statement of income.
*4 ¥ 264,395 million ($2,388,176 thousand) of derivative gain on investments was recorded due to changes in the fair value ofcontingent consideration acquired from the merger transaction with Sprint and T-Mobile US, Inc. for the fiscal year ended March
31, 2021. The details are described in “(1) Sprint” under “Note 6. Discontinued operations.”*5 The WeWork Investment Subsidiary commenced a tender offer to purchase WeWork shares in March 2021. The difference between
the valuation amount of preferred shares expected to purchase and the expected acquisition amount was recorded as derivative loss
for ¥56,127 million ($506,973 thousand) for the fiscal year ended March 31, 2021. The details are described in “(3) Details and progressof the agreement between the Company and WeWork” under “Note 22. Investments accounted for using the equity method.”(2) Gain and loss on investments at SVF1, SVF2, and others
The details are described in “Note 9. SVF1 and other SBIA-managed funds business.”

SoftBank Group Corp. ANNUAL REPORT 2021

(Thousands of U.S. dollars)

42. Finance cost
The components of finance cost are as follows:

Third party to
the Company

Alibaba shares pledged
as collateral by variable
prepaid forward contract

Approximately $5.4 billion for advances
received for the sale of Alibaba sharesby variable prepaid forward contract(Millions of yen)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2020

Table of Contents

Message from Our CEO

Alibaba received newly-issued shares (a 33% equity interest) of Ant Small and Micro Finance Services
Group Co., Ltd. (currently Ant Group Co., Ltd. “Ant Financial”) in September 2019, pursuant to the2014 share and asset purchase agreement, as amended, among Alibaba, Ant Financial, and others. The
consideration paid by Alibaba to receive the newly-issued 33% equity interest in Ant Financial was
funded by payments from Ant Financial and its subsidiaries to Alibaba in consideration for certain
intellectual property rights and assets held by Alibaba. Following this, Alibaba recorded a gain of CNY
71.6 billion, which was the result from the transfer of such intellectual property rights and assets to Ant
Financial and the basis difference determined based on Alibaba’s share of Ant Financial’s net assets, netof its corresponding deferred tax effect.
As a result, the Company recognized ¥286,473 million of income on equity method investments.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

24344. Derivative gain (loss) (excluding gain (loss) on investments)
For the fiscal year ended March 31, 2021
Derivative loss of ¥504,048 million ($4,552,868 thousand) was recorded for the prepaid forward
contracts using Alibaba shares and the call spread contracts related to the prepaid forward contracts
using Alibaba shares. The details of the contracts are described in “*5” in “(1) Components ofinterest-bearing debt” under “Note 25. Interest-bearing debt.”

45. Other loss
The components of other gain and loss are as follows:

Interest income �����������������������������������������������������
Foreign exchange loss�������������������������������������������
Reversal of allowance for loan commitment losses*1
Reversal of allowance for financial guarantee contract
losses*2���������������������������������������������������������������
Dilution gain from changes in equity interest*3�����
Gain on liquidation of subsidiaries*4���������������������
Reversal of impairment losses on equity method
investments*5�����������������������������������������������������
Impairment loss on equity method investments*5,6
Impairment loss ���������������������������������������������������
Loss on redemption of corporate bonds*7�������������
Provision for allowance for doubtful accounts*6 ���Provision for allowance for loan commitment
losses*8���������������������������������������������������������������
Provision for allowance for financial guarantee
contract losses*9�������������������������������������������������
Other*10���������������������������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ 33,911(9,271)–¥ 18,352(137,166)
61,312$ 165,766(1,238,967)
553,807–339,842–

58,20854,94145,257525,770
496,261
408,789–(72,626)(3,404)–(102,947)

21,634(68,215)(21,160)(17,853)(7,533)

195,411(616,159)(191,130)(161,259)(68,043)(90,210)––(59,902)(40,850)¥ (5,457)–(52,273)¥ (44,496)–(472,160)$ (401,914)

WeWork” under “Note 22. Investments accounted for using the equity method.”*3 F or the fiscal year ended March 31, 2020, Alibaba issued new shares, in connection with its listing on The Stock Exchange of Hong
Kong Limited on November 26, 2019. Accordingly, the Company recorded ¥291,551 million of dilution gain from changes in equity
interest related to Alibaba.
For the fiscal year ended March 31, 2021, the amount primarily represents the dilution gain arising from changes in Alibaba’s
equity interest held by the Company due to the exercise of stock options in Alibaba.
*4 F or the fiscal year ended March 31, 2021, the amount is primarily due to the realization of exchange differences resulted from theliquidation of Kahon 3 Oy, a wholly-owned subsidiary of the Company.
*5 For the fiscal year ended March 31, 2021, the WeWork Investment Subsidiary purchased WeWork common shares from We
Holdings LLC at $19.19 per share for the total amount of $578 million. The difference between the acquisition amount and the fairvalue at the time of the acquisition was recorded as an impairment loss for ¥54,277 million ($490,263 thousand). Subsequently,¥21,634 million ($195,411 thousand) of reversal of impairment losses was recorded as the fair value of WeWork common shares
held increased following the conclusion of the merger agreement between WeWork and BowX Acquisition Corp. The details aredescribed in “(3) Details and progress of the agreement between the Company and WeWork” under “Note 22. Investments
accounted for using the equity method.”*6 O
 n March 27, 2020 (EST), OneWeb Global Limited, an equity method associate of the Company, filed for relief under Chapter 11 of
the United States Bankruptcy Code. Subsequently, for the fiscal year ended March 31, 2020, the Company estimated therecoverable amount of equity method investment in OneWeb Global Limited to be zero and an impairment loss of ¥49,198 million
was recorded. In addition, loan receivable of ¥65,913 million from the entity was estimated to be difficult to recover and theallowance for doubtful accounts was fully provided.
*7 F or the fiscal year ended March 31, 2021, the amount primarily represents the loss related to foreign-currency-denominated seniornotes purchased by SoftBank Group Corp.
*8 For the fiscal year ended March 31, 2020, ¥90,210 million of provisions for allowance for loan commitment losses related to acquire
unsecured notes issued by WeWork was recorded as expected credit losses were higher than the amount less accumulated
amortization after the initial recognition. The details are described in “(3) Details and progress of the agreement between the
Company and WeWork” under “Note 22. Investments accounted for using the equity method.”*9 F or the fiscal year ended March 31, 2020, ¥52,349 million of provisions for allowance for financial guarantee contract losses related
to a credit facility for WeWork provided by financial institutions was recorded as expected credit losses were higher than theamount less accumulated amortization after the initial recognition. The details are described in “(3) Details and progress of theagreement between the Company and WeWork” under “Note 22. Investments accounted for using the equity method.”*10 T he primary component for the fiscal year ended March 31, 2020 was the amount of ¥25,710 million of impairment loss for the
management contracts, which was recognized because the recoverable amounts of management contracts were less than the
carrying amounts.

*1 F or the fiscal year ended March 31, 2021, ¥61,312 million ($553,807 thousand) of reversal of allowance for unutilized loan
commitment losses related to acquire unsecured notes issued by WeWork was recorded as expected credit losses were lower than
the amount recorded as of March 31, 2020 due to the improvement of credit spread for WeWork’s unsecured notes distributed in
the market. The details are described in “(3) Details and progress of the agreement between the Company and WeWork” under“Note 22. Investments accounted for using the equity method.”*2 For the fiscal year ended March 31, 2021, ¥50,887 million ($459,642 thousand) of reversal of allowance for financial guarantee
contract losses related to a credit facility for WeWork provided by financial institutions was recorded as expected credit losses werelower than the amount recorded as of March 31, 2020 due to the improvement of credit spread for WeWork’s unsecured notes
distributed in the market. The details are described in “(3) Details and progress of the agreement between the Company and

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

24446. 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, 2020
(Millions of yen)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¥ (27,264)(10,658)(37,922)¥(1,501)
20,879(574,539)
3,989(551,172)¥ (589,094)

¥

–
–
–
(516)
43,8178–43,30943,309Before tax effect¥(27,264)(10,658)(37,922)(2,017)64,696(574,531)
3,989(507,863)¥ (545,785)

Income tax effect¥¥

After tax effect

5,983
4,413
10,396¥ (21,281)(6,245)(27,526)515(8,539)52,911923
45,81056,206(1,502)56,157(521,620)
4,912(462,053)¥ (489,579)

For the fiscal year ended March 31, 2021
(Millions of yen)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 ������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents¥

Reclassification
adjustments(59)
48,754
48,695¥1,000
99,827
628,541(74,495)
654,873¥ 703,568

Message from Our CEO

–
–
–

(323)
(62,659)(36,743)–(99,725)¥ (99,725)

Who We Are

Growth Assets

Before tax effect¥(59)
48,754
48,695677
37,168591,798(74,495)
555,148¥ 603,843

Management: The Foundation Supporting Our Growth

Income tax effect¥19(19,259)(19,240)(123)(3,393)(89,713)
8,634(84,595)¥ (103,835)

Financial Section

Corporate Information

After tax effect¥(40)
29,49529,455554
33,775502,085(65,861)
470,553¥ 500,008

245

(Thousands of U.S. dollars)

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 ������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Amount arisingduring the year

Reclassification
adjustments

Before tax effect

$

$

$

(533)
440,376
439,843

9,033
901,698
5,677,364(672,884)
5,915,211$ 6,355,054

Message from Our CEO–––(2,918)(565,974)(331,885)–(900,777)$ (900,777)

Who We Are

Growth Assets(533)
440,376
439,843

6,115
335,724
5,345,479(672,884)
5,014,434$ 5,454,277

Management: The Foundation Supporting Our Growth

Income tax effect$172(173,960)(173,788)(1,111)(30,648)(810,342)
77,988(764,113)$ (937,901)

Financial Section

Corporate Information

After tax effect

$

(361)
266,416
266,055

5,004
305,076
4,535,137(594,896)
4,250,321$4,516,376

246

(2) Diluted earnings per share

47. 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
shareholders of the parent
Net income attributable to owners of theparent ���������������������������������������������������
Net income not-attributable to ordinary
shareholders of the parent*2�������������������
Net income used in the calculation of basic
earnings per share�����������������������������������
Net income used in the calculation of basic
earnings per share
Net income from continuing operations
attributable to ordinary shareholders of
the parent�����������������������������������������������
Net income from discontinued operations
attributable to ordinary shareholders of
the parent�����������������������������������������������
Total �����������������������������������������������������

(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (961,576)¥4,987,962$45,054,304(30,948)(30,246)(273,200)¥ (992,524)¥4,957,716$44,781,104¥ (943,097)¥4,246,483$38,356,815(49,427)¥ (992,524)

711,233¥4,957,716

6,424,289$44,781,104(Thousands of shares)

Weighted-average number of ordinary
shares �������������������������������������������������������

2,074,225

1,892,538(Yen)

Basic earnings per share
Continuing operations�������������������������������
Discontinued operations���������������������������
Total �����������������������������������������������������

¥ (454.67)(23.83)¥ (478.50)¥2,243.80
375.81¥2,619.61(USD)$20.27
3.39$23.66(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥ (943,097)¥4,246,483$38,356,815(14,151)¥ (957,248)(331,927)¥3,914,556(2,998,166)$35,358,649(49,427)(49,427)¥ (1,006,675)¥ 711,233
711,233¥4,625,789$ 6,424,289
6,424,289$41,782,938

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�����������������������
Subtotal ���������������������������������������������������
Discontinued operations
Net income from discontinued operations
used in the calculation of basic earnings
per share�������������������������������������������������
Subtotal ���������������������������������������������������
Total �����������������������������������������������������

¥(Thousands of shares)

Weighted-average number of ordinary sharesused in the calculation of diluted earnings
per share
Weighted-average number of ordinary
shares�����������������������������������������������������
Adjustments
Stock acquisition rights*3�����������������������
Total �����������������������������������������������������

2,074,225

1,892,538–
2,074,225

5,385
1,897,923(yen)Diluted earnings per share
Continuing operations�������������������������������
Discontinued operations���������������������������
Total �����������������������������������������������������

¥ (461.50)(23.83)¥ (485.33)¥2,062.55
374.74¥2,437.29(USD)$18.633.39$22.02*1 T he Company conducted a two-for-one share split effective June 28, 2019. “Basic earnings per share” and “Diluted earnings per
share” are calculated assuming that the share split was conducted at the beginning of the previous fiscal year.
*2 N
 et income not-attributable to ordinary shareholders of the parent represents net income attributable to owners of other equity
instruments.
*3 F or the fiscal year ended March 31, 2020, stock acquisition rights are not included in the calculation for “Diluted earnings per share”
as it has an antidilutive effect for the calculation.

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48. Supplemental information to the consolidated statement of cash flows(1) Scope of purchase of property, plant and equipment and intangible assets“Purchase of property, plant and equipment, and intangible assets” includes cash outflows fromlong-term prepaid expenses that are included in “Other non-current assets” in the consolidated
statement of financial position.

(6) Payments into trust accounts in SPACs
For the fiscal year ended March 31, 2021
“Payments into trust accounts in SPACs” is the amount held in trust accounts for proceeds from initialpublic offerings of SPACs sponsored by the Company. The details are described in “Note 8. Special
purpose acquisition companies sponsored by the Company.”(2) Income taxes paid and income taxes refunded
For the fiscal year ended March 31, 2020
Payment of withholding income tax related to dividends within the group companies of ¥470,259
million, payment of income tax mainly related to gain on sales of SoftBank Corp. shares held by SBGJ in
December 2018 of ¥321,290 million, and payment of income tax related to deemed dividends on salesof Z Holdings Corporation shares held by SBGJ due to an acquisition of its own shares through theTender Offer by Z Holdings Corporation of ¥78,801 million are included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies of¥422,648 million is included in “Income taxes refunded.”(7) Proceeds from non-controlling interests subject to possible redemption
For the fiscal year ended March 31, 2021
“Proceeds from non-controlling interests subject to possible redemption” is proceeds from initial public
offerings of SPACs sponsored by the Company. The details are described in “Note 8. Special purpose
acquisition companies sponsored by the Company.”

For the fiscal year ended March 31, 2021
Payment of withholding income tax related to dividends within the group companies of ¥170,264
million ($1,537,928 thousand) is included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies anddeemed dividends of ¥243,602 million ($2,200,361 thousand) is included in “Income taxes refunded.”(8) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests
For the fiscal year ended March 31, 2021
“Proceeds from the partial sales of shares of subsidiaries to non-controlling interests” is proceeds
received primarily from sales of SoftBank Corp. shares.
(9) Changes in liabilities arising from financing activities
Changes in liabilities arising from financing activities are as follows:(3) Proceeds from sales/redemption of investments
For the fiscal year ended March 31, 2021
¥2,099,746 million ($18,966,182 thousand) of proceeds received from sales of T-Mobile shares is
included in “Proceeds from sales/redemption of investments.”(4) Proceeds from acquisition of control over subsidiaries
For the fiscal year ended March 31, 2021
“Proceeds from acquisition of control over subsidiaries” is cash and cash equivalents held by LINE
Group at the time of acquisition of control.
(5) Payments into restricted cash
For the fiscal year ended March 31, 2021
¥346,765 million ($3,132,192 thousand) of payments, which is the amount in a segregated custodyaccount before the expected early termination date for financial liabilities related to the settlement of
prepaid forward contracts using Alibaba shares, is included in “Payments into restricted cash.” Thedetails are described in “*5” in “(1) Components of interest-bearing debt” under “Note 25. Interestbearing debt.”
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For the fiscal year ended March 31, 2020
(Millions of yen)Interest-bearing debt

Lease liabilities

Derivatives related tocorporate bond

¥15,685,106(892,472)¥14,792,634¥–
2,341,798¥2,341,798¥115,470–¥115,470¥4,136,965–¥4,136,965

133,173
8,601,926(5,646,727)–––
21,989(145,545)––(715,044)(3,923,658)
13,134¥ 13,131,882–––(695,370)––
21,497(84,075)––
325,554(786,091)
17,013¥1,140,326

–
–
–
–
–
–
–
–
(27,007)–––(9,857)¥ 78,606––––
1,843,660(771,282)–(83,994)–(540,930)–––¥4,584,419

As of April 1, 2019�������������������������������������������������������������������������������������������������������������������������������������������������������
Effect of retrospective adjustments due to adoption of new standards �������������������������������������������������������������������������
As of April 1, 2019 (after adjustments)�������������������������������������������������������������������������������������������������������������������������

Third-party interests
in SVF1(a) Changes arising from financing cash flows
Proceeds in short-term interest-bearing debt, net���������������������������������������������������������������������������������������������������
Proceeds from interest-bearing debt�����������������������������������������������������������������������������������������������������������������������
Repayment of interest-bearing debt �����������������������������������������������������������������������������������������������������������������������
Repayment of lease liabilities����������������������������������������������������������������������������������������������������������������������������������
Contributions into SVF1 from third-party investors �������������������������������������������������������������������������������������������������
Distribution/repayment from SVF1 to third-party investors���������������������������������������������������������������������������������������
(b) Changes from acquisition or loss of control over subsidiaries and other businesses*1�����������������������������������������������
(c) The effect of changes in foreign exchange rates�������������������������������������������������������������������������������������������������������(d) Changes in fair values ���������������������������������������������������������������������������������������������������������������������������������������������(e) Changes in third-party interests in SVF1�������������������������������������������������������������������������������������������������������������������
(f) Non-cash transactions*2,3 �����������������������������������������������������������������������������������������������������������������������������������������
(g) Transfer to liabilities directly relating to assets classified as held for sale �������������������������������������������������������������������(h) Other changes���������������������������������������������������������������������������������������������������������������������������������������������������������
As of March 31, 2020���������������������������������������������������������������������������������������������������������������������������������������������������

*1 Mainly due to the consolidation of ZOZO, Inc. The details are described in“ZOZO, Inc.” under “Note 10. Business combinations.”*2 The decrease of interest-bearing debt was made due to the delivery of the Alibaba shares for the repayment of current portion of long-term borrowings. The details are described in “(11) Significant non-cash transactions.”*3 The increase of lease liabilities was mainly as a result of remeasurement of the lease liabilities and the lease transactions executed after the adoption of IFRS 16.

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For the fiscal year ended March 31, 2021
(Millions of yen)

Non-controlling interests
subject to possible
redemption*4Interest-bearing debt

Lease liabilities

Derivatives related tocorporate bondThird-party interests
in SVF1

As of April 1, 2020������������������������������������������������������������������������������������������������������������
(a) Changes arising from financing cash flows
Proceeds in short-term interest-bearing debt, net��������������������������������������������������������
Proceeds from interest-bearing debt����������������������������������������������������������������������������
Repayment of interest-bearing debt ����������������������������������������������������������������������������
Repayment of lease liabilities���������������������������������������������������������������������������������������
Contributions into SVF1 from third-party investors ������������������������������������������������������
Distribution/repayment from SVF1 to third-party investors��������������������������������������������
Proceeds from non-controlling interests subject to possible redemption ��������������������
(b) Changes from acquisition or loss of control over subsidiaries and other businesses*1��������������������
(c) The effect of changes in foreign exchange rates������������������������������������������������������������(d) Changes in fair values ��������������������������������������������������������������������������������������������������(e) Changes in third-party interests in SVF1������������������������������������������������������������������������
(f) Non-cash transactions*2,3 ����������������������������������������������������������������������������������������������
(g) Transfer to liabilities directly relating to assets classified as held for sale����������������������(h) Other changes��������������������������������������������������������������������������������������������������������������
As of March 31, 2021��������������������������������������������������������������������������������������������������������

¥13,131,882¥1,140,326¥ 78,606¥4,584,419¥

1,575,327
7,965,114(5,790,901)––––
170,188296,246––
1,095,256–
69,863¥18,512,975–––(402,257)–––
57,349(10,277)––
276,250(7,485)(18,905)¥1,035,001

–
–
–
–
–
–
–
–
–
(79,454)–––(16,002)¥ (16,850)––––
979,266(1,362,066)––
153,755–
2,246,417–––¥6,601,791

–
–
–
–
–
–
345,466(35,999)
14,674––––(26,049)¥298,092

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250

(Thousands of U.S. dollars)

As of April 1, 2020������������������������������������������������������������������������������������������������������������
(a) Changes arising from financing cash flows
Proceeds in short-term interest-bearing debt, net��������������������������������������������������������
Proceeds from interest-bearing debt����������������������������������������������������������������������������
Repayment of interest-bearing debt ����������������������������������������������������������������������������
Repayment of lease liabilities���������������������������������������������������������������������������������������
Contributions into SVF1 from third-party investors ������������������������������������������������������
Distribution/repayment from SVF1 to third-party investors��������������������������������������������
Proceeds from non-controlling interests subject to possible redemption ��������������������
(b) Changes from acquisition or loss of control over subsidiaries and other businesses*1��������������������
(c) The effect of changes in foreign exchange rates������������������������������������������������������������(d) Changes in fair values ��������������������������������������������������������������������������������������������������(e) Changes in third-party interests in SVF1������������������������������������������������������������������������
(f) Non-cash transactions*2,3 ����������������������������������������������������������������������������������������������
(g) Transfer to liabilities directly relating to assets classified as held for sale����������������������(h) Other changes��������������������������������������������������������������������������������������������������������������
As of March 31, 2021��������������������������������������������������������������������������������������������������������

Non-controlling interests
subject to possible
redemption*4Interest-bearing debt

Lease liabilities

Derivatives related tocorporate bondThird-party interests
in SVF1$118,615,139$10,300,117$ 710,017$41,409,258$

14,229,311
71,945,750(52,306,937)––––
1,537,241
2,675,874––
9,893,018–
631,044$167,220,440–––(3,633,430)–––
518,011(92,828)––
2,495,258(67,609)(170,761)$ 9,348,758

–
–
–
–
–
–
–
–
–
(717,677)–––(144,539)$ (152,199)––––
8,845,326(12,303,008)––
1,388,808–
20,291,004–––$59,631,388

–
–
–
–
–
–
3,120,459(325,165)
132,544––––(235,290)$2,692,548–*1 The increase of interest-bearing debt and lease liabilities are mainly due to the consolidation of LINE Corporation. The details are described in “Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation” under “Note 10. Business combinations.”*2 The increase of interest-bearing debt was made due to the entry into several prepaid forward contracts using Alibaba shares and amendments to certain contracts. The details are described in “*5” in “(1) Components of interest-bearing debt” under “Note 25. Interest-bearing debt.”*3 The increase of lease liabilities was mainly as a result of remeasurement of the lease liabilities and the lease transactions executed during the period.
*4 The details of non-controlling interests subject to possible redemption are described in “Note 8. Special purpose acquisition companies sponsored by the Company.”

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(10) Cash outflows related to lease
For the fiscal year ended March 31, 2021, the total amount of cash outflows related to lease was¥417,019 million ($3,766,769 thousand) (for the fiscal year ended March 31, 2020: ¥787,726 million.)thousand) of account payables for acquisition of shares were offset, and the net amount of¥668,785 million ($6,040,873 thousand) was recognized as “Proceeds from sales/redemption of
investments.”(11) Significant non-cash transactions
Significant non-cash transactions (investing and financing transactions that do not require the use of
cash and cash equivalents) are as follows:b. Sprint Merger
The merger between Sprint and T-Mobile US, Inc. and the acquisition of contingent consideration
with the merger correspond to significant non-cash transactions. The details are described in “(1)Sprint” under “Note 6. Discontinued operations.”

Fiscal year ended
March 31, 2020

Transfer of leased devices from inventories toproperty, plant and equipment �������������������
Increase in right-of-use assets related to leasetransactions �����������������������������������������������

¥548,375
332,066(Millions of yen)(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021¥–
276,167$–2,494,508

In addition to the above, the following non-cash transactions were conducted.
For the fiscal year ended March 31, 2020
At June 3, 2019, ¥715,044 million of current portion of financial liabilities relating to sale of shares by
variable prepaid forward contract and ¥474,468 million of derivative financial liabilities (current)
recognized for sale of Alibaba shares by variable prepaid forward contract were settled with Alibaba
shares. The details are described in “*2” in “(1) Gain and loss on investments at Investment Business of
Holding Companies” under “Note 41. Gain on investments.”
For the fiscal year ended March 31, 2021
a. O
 ffset proceeds from sales of listed shares and payments for acquisition of listed shares
Account payables for acquisition of listed shares and account receivables from sales of listed shareswere offset because the counterparty was the same entity and the settlement date was the samedate.
In the event that account payables for acquisition of shares are larger than account receivablesfrom sales of shares, the net amount is recognized as “Payments for acquisition of investments,” andin the event that account receivables from sales of shares are larger than account payables, the net
amount is recognized as “Proceeds from sales/redemption of investments.”
For the fiscal year ended March 31, 2021, ¥1,096,868 million ($9,907,578 thousand) of accountpayables for acquisition of shares and ¥294,780 million ($2,662,632 thousand) of account receivables from sales of shares were offset, and the net amount of ¥802,088 million ($7,244,946
thousand) was recognized as “Payments for acquisition of investments.” Also, ¥961,358 million($8,683,570 thousand) of account receivable from sales of shares and ¥292,573 million ($2,642,697

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Message from Our CEOc. Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings Corporation
An absorption-type merger and an absorption-type company split, which were conducted in order toconsolidate LINE Corporation by SoftBank Corp., correspond to significant non-cash transactions asthese transactions are conducted through in-kind contribution by issuing new shares. The details aredescribed in “Acquisition of LINE Corporation and business integration of LINE Group and Z Holdings
Corporation” under “Note 10. Business combinations.”

49. Related party transactions(1) Related party transactions and balance
Related party transactions of the Company are as follows:
For the fiscal year ended March 31, 2020a. Incentive program
The Company provides loans to certain executives of the Company as a part of the incentive
program, which was designated for use for the purchase of SoftBank Group Corp. shares.
(a) Incentive program approved in April and July 2018
The Company loaned an additional ¥10,992 million in February 2020 as a part of the incentive
program that the Board approved in April 2018. Regarding the incentive program approved in April
and July 2018, the amount of the transactions between the Company and the related parties for the
fiscal year ended March 31, 2020 and the outstanding balance were as follows.

Who We Are

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252

(Millions of yen)

Fiscal year
ended March
31, 2020

As ofMarch 31, 2020

Name of the company orindividual

Nature of relationship

Nature of transaction

Amount oftransaction

Balance atperiod-end

Marcelo Claure

Director

Lending of loans receivable*1,3,4,5¥¥11,109

Interest receipt*1,3,4,5
Katsunori Sago

Director

Lending of loans receivable*2,3,5Interest receipt*

–

42

–

10,992

10,99243

43

Lending of loans receivable *2,3,5

–

5,555

Interest receipt*2,3,5

81

67

Lending of loans receivable*1,3,4,5Interest receipt*

1,3,4,5Director

5,554
67

Interest payment*2

Ken Miyauchi

274

–
81

Repayment of borrowing*2

Director

327

3,000

2,3,5

Rajeev Misra–*1 The interest rate for the loan is 2.94% of the fixed rate, which was rationally determined in reference to market interest rates andactual interest 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. andthe 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 the loan at any time voluntarily. Additionally, the borrower may deposit with SoftBank Group Corp. any
amount of cash equal to or less than the then-outstanding principal amount of the loan, and SoftBank Group Corp. will account forthe deposit as loan payables on the balance sheet. The interest rate for the deposit is the same as the rate for the loan.
*2 The interest rates for the loans are the 1.45% of fixed rate, which was rationally determined in reference to market interest rates andactual interest 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 accountfor the deposit as loan payables on the balance sheet. The interest rates for the deposits are the same as the rates for the loans.
*3 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 the part of future cash compensation for the borrowers payable
by SoftBank Group Corp. and subsidiaries, as repayment of the loan.
*4 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 establish a collateral over additional property.
*5 Total shortfall calculated by deducting the amount received through fully exercised rights in respect to collateral and rights to receive
the part of future cash compensation for the borrowers payable by SoftBank Group Corp. and subsidiaries as repayment of the loan
from all amounts that become due and payable by the borrowers is guaranteed by Masayoshi Son, who is Chairman & CEO of
SoftBank Group Corp.

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Other than the preceding, the Company provides loans to a non-Director executive of the Company
based on the same incentive programs. 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, 2020 and the outstanding balance were as follows.
(Millions of yen)

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod-end¥¥ 5,55467700
7Nature of transaction

Lending of loans receivable*2,3,5Interest receipt*2,3,5
Borrowing of loans payable*2
Interest payment*2

–
81
700
7

(b) Incentive program approved in February 2020
As a part of the incentive program that the Board of Directors approved in February 2020, theCompany loaned an additional ¥32,976 million in the same month. Regarding the incentive
program approved in February 2020, the amount of the transactions between the Company and therelated parties for the fiscal year ended March 31, 2020 and the outstanding balance were as
follows.
(Millions of yen)

Name of the company orindividual

Nature of relationship

Nature of transaction

Marcelo Claure(Claure Holdings
LLC)

Director and related
entities of which heholds more than onehalf of the voting rights

Lending of loans receivable*6,7,8,9

Rajeev Misra

Director

Interest receipt*

Fiscal year
ended March
31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod-end¥16,488¥16,48843

43

16,48816,48843

43

6,7,8,9Lending of loans receivable*

6,7,8,9Interest receipt*

6,7,8,9*6 T he interest rate for the loan is 1.93% of the fixed rate, which was rationally determined in reference to market interest rates andactual interest rates of SoftBank Group Corp. for other borrowings with periods similar to the period of the loans. The borrower isrequired to pay the outstanding principal amount of the loan in a single payment on the seventh anniversary of the funding date.
Additionally, the borrower may deposit with SoftBank Group Corp. any amount of cash equal to or less than the then-outstanding
principal amount of the loan, and SoftBank Group Corp. will account for the deposit as loan payables on the balance sheet. Theinterest rate for the deposit is the same as the rate for the loan.
*7 Thetransfer of SoftBank Group Corp. shares purchased through the loan is restricted for the twelve-month period succeeding theeffective date of the agreement. Then, the number of shares available for transfer will increase by 20% every three months, and all

Who We Are

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

253

shares will become available for transfer after exceeding twenty four months.
*8 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.
*9 Total shortfall calculated by deducting the amount received through fully exercised rights in respect to collateral and rights to receive
the part of future cash compensation for the borrowers payable by SoftBank Group Corp. and subsidiaries as repayment of the loan
from all amounts that become due and payable by the borrowers is guaranteed by Masayoshi Son, who is Chairman & CEO of
SoftBank Group Corp.

(Millions of yen)

Name of the company orindividual

Taizo Son(SON Financial
Inc. and 3 othercompanies) *9b. Other related party transactions
Related party transactions of the Company were as follows:(Millions of yen)

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod end

Name of the company orindividual

Nature of relationship

Nature of transaction

WeWork*1

Associate

Conversion of convertible note
into preferred stock*2¥ 107,700($1.0 billion)

Conversion of advance payment
for investment into preferredstock*3

161,550($1.5 billion)

Investment in preferred stock byadvance payment for investment

131,796($1.2 billion)–

Advance payment forinvestment*4

141,674($1.3 billion)

44,161($0.4 billion)

Credit support for letter of credit
facility*5––

Receipt of WeWork warrants with
exercise price of USD 0.01 pershare*6
Masayoshi Son(Son AssetManagement
LLC and 4 othercompanies)

Ken Miyauchi

Chairman & CEO of
SoftBank Group Corp.
and related entities ofwhich he holds morethan one-half of thevoting rights

Director

–

–

–

–

Dividend paid from SoftBank
Group Corp.

17,230–

Advance payment for temporary
expense359

127

Payment for equipment usage*7

39–

Guarantee deposits–

174

Guarantee for intergroup loans*8–

Dividend paid from SoftBank
Group Corp.

103

–

1,540

–

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Message from Our CEO

Exercise of stockacquisition rights

SoftBank Group Corp. ANNUAL REPORT 2021¥

Nature of relationship

Nature of transaction

Relative of Chairman &Dividend paid from SoftBank
CEO of SoftBank Group Group Corp.
Corp. and related
Receipt of capital contribution
entitiesfrom Mistletoe to a subsidiary*10of which the relative
holds more than onehalf of the voting rights

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod end

173

–

75

146*11*1 A
 s of March 31, 2019, WeWork was an associate of the Company. However, in accordance with the change in WeWork’s corporate
governance, WeWork was no longer an associate of the Company for the three-months period ended June, 30, 2019. During thethree-month period ended December 31, 2019, WeWork became the Company’s associate due to the change in WeWork’s corporate
governance. The table above presents the transactions including the period during which WeWork was not an associate of theCompany.
*2 F or the fiscal year ended March 31, 2019, the Company provided a loan of $1.0 billion through a convertible note, and it wasconverted into preferred stock for the fiscal year ended March 31, 2020.
*3 For the fiscal year ended March 31, 2019, the Company provided a loan of $1.5 billion as advance payment for investment, and it
was converted into preferred stock for the fiscal year ended March 31, 2020.
*4 T he advance payment for investment which is not converted into preferred stock as of March 31, 2020. The outstanding balance isthe fair value of the advanced payment for investment as of March 31, 2020.
*5 TheCompany offers to WeWork the credit support for a $1.75 billion letter of credit facility provided by financial institutions. The
details are described in “(3) Details and progress of the agreement between the Company and WeWork” under “Note 22.
Investments accounted for using the equity method” and in “(2) Credit guarantees” under “Note 50. Contingency.”*6 W
 eWork warrants with exercise price of $0.01per share, which the Company has received as a consideration for the purchase of
unsecured warrants issued by WeWork and for the credit support for a letter of credit facility. The details are described in “(3) Details
and progress of the agreement between the Company and WeWork” under “Note 22. Investments accounted for using the equity
method” and in “(b) Price risk, iii. Option contracts” in “(2) Financial risk management, a. Market risk” under “Note 31. Financial
instruments.”*7 E quipment usage fees are determined based on the ratio of usage.
*8 M asayoshi Son has given a payment undertaking to a subsidiary of the Company in relation to a loan (the “guaranteed loan”) madeby such subsidiary to another subsidiary of the Company, which loan is associated with an incentive scheme related to SoftBank
Vision Fund. The guaranteed loan is for the principal amount of up to $2 billion, with an interest rate of 3.674% per annum. Thebalance of the guaranteed loan including accrued interest thereon as of March 31, 2020 is ¥181,215 million. Following the winding
up of the incentive scheme, if there is any outstanding balance of the guaranteed loan after other repayment obligations are met,
Masayoshi Son will be liable under the terms of the payment undertaking to pay to a subsidiary of the Company the outstandingbalance. There is no guarantee fee and no right of reimbursement against the subsidiary of the Company for amounts paid pursuant
to the payment undertaking.
*9 T aizo Son, relative of Chairman & CEO Masayoshi Son, holds over half of the voting rights of this company.
*10 T his represents the received amount of contribution to DEEPCORE TOKYO 1 by Mistletoe Venture Partners, Inc. and the terms andconditions of the transaction are determined as same as other limited liability union members.
*11 T he balance at period end represents the total investment amount less cumulative investment partnership losses as of March 31,
2020.

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

254

For the fiscal year ended March 31, 2021
On November 9, 2020, Marcelo Claure, Katsunori Sago and Rajeev Misra resigned from their positions
on the Board of Directors. On the same day, Marcelo Claure was appointed as the Corporate Officer,
Executive Vice President and COO, Katsunori Sago was appointed as the Corporate Officer, Executive
Vice President and CSO and Rajeev Misra was appointed as the Corporate Officer and Executive Vice
President. After resigning from their positions on the Board of Directors, they maintain their position ofmajor Corporate Officers and therefore, are related parties of SoftBank Group Corp.
On March 31, 2021, Katsunori Sago resigned from the position of the Corporate Officer, Executive
Vice President and CSO. From April 1, 2021, Katsunori Sago is not a related-party of SoftBank Group Corp.
a. Transfer of T-Mobile shares
As a part of the transaction related to transfer of T-Mobile shares, the Company entered into
agreements with certain executives for transferring T-Mobile shares and for loan which was
designated for the use for the purchase of T-Mobile shares in June 2020.
Regarding the transactions associated with the transfer of T-Mobile shares, the amount of thetransactions between the Company and the related parties for the fiscal year ended March 31,
2021 and the outstanding balance were as follows.

(Thousands of U.S. dollars)Name of thecompany orindividual

Name of thecompany orindividual

Nature of relationship

Nature of transaction

Ronald Fisher
Director and related
Transfer of T-Mobile(T-Mo Fisher LLC) entity of which heshares*1,2,4,6
holds more than
Lending of loans
one-half of the voting
receivable*1,3,4,6
rightsInterest receipt*1,3,4,6
Marcelo Claure
Corporate Officer and Transfer of T-Mobile(CLAURE MOBILE related entity of which shares*1,2,4,5,7
LLC)
he holds more than
Lending of loans
one-half of the voting
receivable*1,3,4,5,7
rightsInterest receipt*1,3,4,6
Rajeev Misra(Brightstart
Consultants
Limited)Corporate Officer and Transfer of T-Mobile
related entity of which shares*1,2,4,6
he holds more than
Lending of loans
one-half of the voting
receivable*1,3,4,6
rightsInterest receipt*1,3,4,6

SoftBank Group Corp. ANNUAL REPORT 2021

As of March
31, 2021

Amount oftransaction

Balance atperiod end¥ 3,884

¥

–

3,884

3,991

57

60

54,528–54,52857,016754

792

49,937–49,93751,314732

768

Table of Contents

Message from Our CEO

As of March
31, 2021

Amount oftransaction*9

Balance atperiod end*9

Nature of transaction

Ronald Fisher
Director and related
Transfer of T-Mobile(T-Mo Fisher LLC) entity of which heshares*1,2,4,6
holds more than
Lending of loans
one-half of the voting
receivable*1,3,4,6
rightsInterest receipt*1,3,4,6$36,050

Marcelo Claure
Corporate Officer and Transfer of T-Mobile(CLAURE MOBILE related entity of which shares*1,2,4,5,7
LLC)
he holds more than
Lending of loans
one-half of the voting
receivable*1,3,4,5,7
rightsInterest receipt*1,3,4,6
Rajeev Misra(Brightstart
Consultants
Limited)(Millions of yen)

Fiscal year ended
March 31, 2021

Nature of relationshipFiscal year ended
March 31, 2021

Corporate Officer and Transfer of T-Mobile
related entity of which shares*1,2,4,6
he holds more than
Lending of loans
one-half of the voting
receivable*1,3,4,6
rightsInterest receipt*1,3,4,6$–

36,05036,050539

539

515,000–

515,000

515,000

7,151

7,151

463,500–

463,500

463,500

6,933

6,933

*1 T he borrowers are entities of which certain executives or employees hold more than one-half of the voting rights. The repayment of
the loan and interest is secured by a first priority pledge of 100% of the borrower’s equity interests. (For Marcelo Claure and Ronald
Fisher, this is only if their rights to collateralize equity interests is not prohibited by restrictions imposed by the T-Mobile board andothers.) Each executive and employee guarantees the repayment of the loan and interest to full recourse. Also, the purchasers of
T-Mobile shares are borrowers.
*2 T he purchase price per share is US$103.00, which is the same amount of the purchase price per share for the T-Mobile public offeringin the United States.
*3 T he interest rate for the loan is 1.93% of the fixed rate, which was rationally determined in reference to market interest rates andactual interest rates of SoftBank Group Corp. for other borrowings with periods similar to the period of the loans. The maturity dates
are July 1, 2024 for the loan made in June 2020 and September 1, 2024 for the loan made in August 2020, and the borrowers are
required to make a single payment at maturity. Prior to the maturity date the borrowers may prepay all or any portion of the loans at
any time voluntarily.
*4 U nless the borrowers have received the prior consent of the Company, the borrowers shall hold T-Mobile shares until paid in full except
for below;• The transfer is made by cash consideration with fair market value.
However, in this case, proceeds from this transfer are not subject to mandatory prepayment but, prior to maturity, the borrowers areprohibited from using such proceeds other than to invest in marketable securities or to voluntarily prepay the loan.
*5 Unless the borrower has received the prior consent of the Company, the borrower has no ability to pledge T-Mobile shares as collateral
until the loans are paid in full.
*6 If certain conditions are met, such as entering into an intercreditor agreement with the Company, each borrower can borrow additional
funds from third parties up to a certain amount with T-Mobile shares and others as collateral. Proceeds from this additional debt will
not be subject to mandatory prepayment but, prior to maturity, the borrowers are prohibited from using such proceeds other than toinvest in marketable securities or to voluntarily prepay the loan.
*7 CLAURE MOBILE LLC can choose limited recourse if certain conditions are met, such as the transfer restrictions being lifted without
Marcelo Claure being appointed as a director of T-Mobile. And full recourse to Marcelo Claure will be canceled. In addition, when thelimited recourse is selected, the Company will place the first lien on the T-Mobile shares purchased by CLAURE MOBILE LLC, if the

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

255

T-Mobile shares can be directly collateralized. (However, if the security interest cannot be set to the T-Mobile shares due to legal
restrictions such as the Federal Reserve System, the security interest will be set to a first priority pledge of 100% equity interests of
CLAURE MOBILE LLC.)
Settlement of the loan and accrued interest with the transfer of T-Mobile shares when the limited recourse is selected is as follows;a. If the T-Mobile share price at the time of transfer is less than 50% of the loan principal balance and accrued interest, CLAURE
MOBILE LLC will fulfill payment obligations up to only the proceeds from the transfer of T-Mobile shares. Marcelo Claure will beobliged to pay the difference between the repayment amount and 50% of the loan balance and accrued interest.
b. If the T-Mobile share price at the time of transfer is 50% or more and 100% or less of the loan principal balance and accrued
interest, CLAURE MOBILE LLC will fulfill payment obligations up to only the proceeds from the transfer of T-Mobile shares.
c. If the T-Mobile share price at the time of transfer exceeds 100% of the loan principal balance and accrued interest, proceeds from
T-Mobile share transfer will be used to repay the loan and accrued interest, and CLAURE MOBILE LLC will receive remaining balance.
However, if the T-Mobile share price at the time of transfer exceeds $150 per share, the transfer price after tax for the portion
exceeding $150 per share will belong to the Company.

Other than the above, the Company entered into agreements with 1 employee for transferring T-Mobile
shares and with 3 employees for a loan which was designated for the use for the purchase of T-Mobile
shares. These employees are not related parties who need to be disclosed herein according to IAS 24.
The amount of the transactions between the Company and the employees recognized for the fiscal
year ended March 31, 2021 and the outstanding balance were as follows. As one of the employees
resigned on November 30, 2021, transactions with the person after the resignation and the balance atperiod-end for the person are not included in the following table.
(Millions of yen)

Nature of transaction
Lending of loans receivable*1,3,4,8�������������
Interest receipt*

As of March
31, 2021

Amount of transaction

Balance at period-end¥1,665
6,572
73

Transfer of T-Mobile shares*1,2,4,6�������������

1,3,4,8

Fiscal year ended
March 31, 2021���������������������������¥Nature of transaction

Amount of transaction*9

Balance at period-end*9

Transfer of T-Mobile shares*1,2,4,6�������������
Lending of loans receivable*1,3,4,8�������������
Interest receipt*1,3,4,8 ���������������������������

$15,450
61,795690$(Millions of yen)

Name of thecompany orindividual

Nature of relationship

Nature of transaction

Yoshimitsu Goto

Director

Lending of loans
receivable*1,3,4

Fiscal year ended
March 31, 2021

As of March
31, 2021

Amount oftransaction

Balance atperiod end¥–¥ 5,554

80

67

Borrowing of loans
payable*1–

700

Interest payment*1

108

Lending of loans
receivable*1,3,4

–

5,555

Interest receipt*1,3,4

80

67Interest receipt*1,3,4

Marcelo Claure

Director

Corporate Officer

Lending of loans
receivable*2,3,4,5Interest receipt*2,3,4,5

Katsunori Sago

(Thousands of U.S. dollars)

As of March
31, 2021(a) Incentive program approved in April and July 2018
Regarding the incentive program approved in April and July 2018, the amount of thetransactions between the Company and the related parties for the fiscal year ended March
31, 2021 and the outstanding balance were as follows.

Ken Miyauchi

–
5,131
62

Fiscal year ended
March 31, 2021

b. Incentive program
The Company provides loans to certain executives of the Company as a part of the incentive
program, which was designated for use for the purchase of SoftBank Group Corp. shares.

Corporate Officer

Receipt of loans
receivable*1,3,4
Interest receipt*

1,3,4

Rajeev Misra

Corporate Officer–
46,345559

Receipt of loans
receivable*2,3,4,5Interest receipt*2,3,4,5–

11,109

327

272

5,554

–

53

–

0

10,992323

269

Corporate Information

256*8 If certain conditions are met, such as entering into an intercreditor agreement with the Company, the borrower can borrow additional
funds from third parties up to a certain amount with T-Mobile shares and such as collateral for $15 million of the loan. Proceeds fromthis additional debt will not be subject to mandatory prepayment but, prior to maturity, the borrower is prohibited from using suchproceeds other than to invest in marketable securities or to voluntarily prepay the loan.
*9 The amounts represent the original transaction amounts recorded in U. S. Dollars, and are not the translations of Japanese yenamounts into U.S. dollar amounts.

SoftBank Group Corp. ANNUAL REPORT 2021

Table of Contents

Message from Our CEO

Who We Are

Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2021

As of March
31, 2021

Name of thecompany orindividual

Nature of relationship

Nature of transaction

Amount oftransaction

Balance atperiod end

Yoshimitsu Goto

Director

Lending of loans
receivable*1,3,4$–$50,167Interest receipt*1,3,4

723

605

Borrowing of loans
payable*1

–

6,323

Interest payment*1

90

72

Ken Miyauchi

Marcelo Claure

Katsunori Sago

Rajeev Misra

Director

Corporate Officer

Corporate Officer

Corporate Officer

Lending of loans
receivable*1,3,4–

50,176

Interest receipt*1,3,4

723

605

Lending of loans
receivable*2,3,4,5–

100,343

Interest receipt*2,3,4,5

2,954

2,457

Receipt of loans
receivable*1,3,4

50,167–

Interest receipt*1,3,4

479–

Receipt of loans
receivable*2,3,4,5

0

99,286

2,918

2,430

Interest receipt*2,3,4,5

the outstanding balance were as follows.
(Millions of yen)

Name of thecompany orindividual

Nature of relationship

Nature of transaction

Marcelo Claure(Claure Holdings
LLC)

Corporate Officer andrelated entities of which
he holds more than onehalf of the voting rights

Receipt of loans
receivable*6,7,8,9

Rajeev Misra(Giantstep
Holdings
Limited)Corporate Officer andReceipt of loans
related entities of which he receivable*6,7,8,9
holds more than one-halfInterest receipt*6,7,8,9of the voting rights

Fiscal year ended
March 31, 2021

As of March
31, 2021

Amount oftransaction

Balance atperiod end¥

Interest receipt*6,7,8,9

0¥16,488

318

361

0

16,488318

361(Thousands of U.S. dollars)*1 The interest rates for the loans are the 1.45% of fixed rate, which was rationally determined in reference to market interest rates andactual interest 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 accountfor the deposit as loan payables on the balance sheet. The interest rates for the deposits are the same as the rates for the loans.
*2 The interest rate for the loan is 2.94% of the fixed rate, which was rationally determined in reference to market interest rates andactual interest 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. andthe 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 the loan at any time voluntarily. Additionally, the borrower may deposit with SoftBank Group Corp. any
amount of cash equal to or less than the then-outstanding principal amount of the loan, and SoftBank Group Corp. will account forthe deposit as loan payables on the balance sheet. The interest rate for the deposit is the same as the rate for the loan.
*3 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 the part of future cash compensation for the borrowers payable
by SoftBank Group Corp. and subsidiaries, as repayment of the loan.
*4 Total shortfall calculated by deducting the amount received through fully exercised rights in respect to collateral and rights to receive
the part of future cash compensation for the borrowers payable by SoftBank Group Corp. and subsidiaries as repayment of the loan
from all amounts that become due and payable by the borrowers is guaranteed by Masayoshi Son, who is Representative Director of
SoftBank Group Corp.
*5 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 establish a collateral over additional property.

SoftBank Group Corp. ANNUAL REPORT 2021(b) Incentive program approved in February 2020
Regarding the incentive program approved in February 2020, the amount of the transactions
between the Company and the related parties for the fiscal year ended March 31, 2021 andTable of Contents

Message from Our CEO

Name of thecompany orindividual

Nature of relationship

Nature of transaction

Marcelo Claure(Claure Holdings
LLC)

Corporate Officer andrelated entities of which
he holds more than onehalf of the voting rights

Receipt of loans
receivable*6,7,8,9

Rajeev Misra(Giantstep
Holdings
Limited)Corporate Officer andReceipt of loans
related entities of which he receivable*6,7,8,9
holds more than one-halfInterest receipt*6,7,8,9of the voting rights

Fiscal year ended
March 31, 2021

As of March
31, 2021

Amount oftransaction

Balance atperiod end$

Interest receipt*6,7,8,9

0$148,930

2,872

3,261

0

148,930

2,872

3,261

*6 T he interest rate for the loan is 1.93% of the fixed rate, which was rationally determined in reference to market interest rates andactual interest rates of SoftBank Group Corp. for other borrowings with periods similar to the period of the loans. The borrower isrequired to pay the outstanding principal amount of the loan in a single payment on the seventh anniversary of the funding date.
Additionally, the borrower may deposit with SoftBank Group Corp. any amount of cash equal to or less than the then-outstanding
principal amount of the loan, and SoftBank Group Corp. will account for the deposit as loan payables on the balance sheet. Theinterest rate for the deposit is the same as the rate for the loan.
*7 T he transfer of SoftBank Group Corp. shares purchased through the loan is restricted for the twelve-month period succeeding theeffective date of the agreement. Then, the number of shares available for transfer will increase by 20% every three months, and allshares will become available for transfer after exceeding twenty four months.
*8 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.
*9 Total shortfall calculated by deducting the amount received through fully exercised rights in respect to collateral and rights to receive
the part of future cash compensation for the borrowers payable by SoftBank Group Corp. and subsidiaries as repayment of the loan
from all amounts that become due and payable by the borrowers is guaranteed by Masayoshi Son, who is Representative Director of
SoftBank Group Corp.

Who We Are

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information257

c. Other related party transactions
Related party transactions of the Company were as follows:(Millions of yen)

(Millions of yen)

Name of the company orindividual

Nature of relationship

Nature of transaction

WeWorkAssociate

Investment in preferred stockby advance payment forinvestment*1
Exchange of WeWork Asia sharesfor preferred stock of WeWork*2

Fiscal year ended
March 31, 2021

As of March
31, 2021

Amount oftransaction

Balance atperiod end¥140,062¥–

13,453–

138–

189,942

129,887

Credit support for letter of credit
facility*5––

Purchase of senior secured
notes*6––

Acquisition of the conditional
consideration*8––

Indemnification against any
losses incurred by Sprint*926,362870

Exercise of WeWork warrants
with exercise price of USD 0.01
per share*3

Masayoshi Son(Son AssetManagement
LLC and 5 othercompanies)

Associate*7

Representative Directorof SoftBank Group
Corp. and related
entities of which heholds more than onehalf of the voting rights

Dividend paid from SoftBank
Group Corp.
Receipt of capital contribution to
subsidiaries*10,11,12

22,427
19,893––

Exercise of stock acquisitionrights of SoftBank Corp.

498–

Advance payment for temporary
expense

177

–

174

–

66

–

24

–

As of March
31, 2021

Amount oftransaction

Balance atperiod end

Name of the company orindividual

Nature of relationship

Nature of transaction

Yoshimitsu Goto

Director

Exercise of stock acquisitionrights of SoftBank Group Corp.

1,882

–

Ken Miyauchi

Director

Exercise of stock acquisitionrights of SoftBank Group Corp.

Purchase of unsecured notes*4

T-Mobile US, Inc.

Fiscal year ended
March 31, 2021

Yutaka Matsuo (AI& Company,Inc.)

Marcelo Claure(Claure Holdings
LLC and 2 othercompanies)
Rajeev Misra

Director and related
entities of which heholds more than onehalf of the voting rights

2,396

–

Exercise of stock acquisitionrights of SoftBank Corp.

498–

Dividend paid from SoftBank
Group Corp.

125

–

13

41*17

243

–

42

–

Dividend paid from SoftBank
Group Corp.

222–

Dividend paid from SoftBank
Group Corp.

247–

Receipt of capital
contribution to a
subsidiary*1975

246*17

Receipt of capital contribution toa subsidiary*16

Corporate Officer and related Dividend paid from SoftBank
entities of which he holds
Group Corp.
more than one-half of theAdvance payment for
voting rights
temporary expense
Corporate Officer

Relative of Representative
Taizo Son(SON Financial Inc. and Director of SoftBank Group
Corp. and related entities
2 otherof which the relative holds
companies*18)
more than one-half of thevoting rights

Guarantee deposits refunded
Sales of goods*13,14
Payment for equipment usage*15

SoftBank Group Corp. ANNUAL REPORT 2021

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Growth Assets

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

258

(Thousands of U.S. dollars)Name of the company orindividual

Nature of relationship

Nature of transaction

WeWorkAssociate

Investment in preferred stock byadvance payment for investment*1
Exchange of WeWork Asia sharesfor preferred stock of WeWork*2
Exercise of WeWork warrants with
exercise price of USD 0.01 per share*3
Purchase of unsecured notes*4
Credit support for letter of credit facility*5
Purchase of senior secured notes*6

T-Mobile US, Inc.

Associate*7

Masayoshi Son(Son AssetManagement
LLC and 5 othercompanies)

Representative Directorof SoftBank Group
Corp. and related
entities of which heholds more than onehalf of the voting rights

Acquisition of the conditional
consideration*8
Indemnification against any
losses incurred by Sprint*9
Dividend paid from SoftBank
Group Corp.
Receipt of capital contribution to
subsidiaries*10,11,12
Exercise of stock acquisitionrights of SoftBank Corp.
Advance payment for temporary
expense
Guarantee deposits refunded
Sales of goods*13,14
Payment for equipment usage*15

Exercise of stock acquisitionrights of SoftBank Group Corp.
Ken Miyauchi
Director
Exercise of stock acquisitionrights of SoftBank Group Corp.
Exercise of stock acquisitionrights of SoftBank Corp.
Dividend paid from SoftBank
Group Corp.
Director and related entities
Receipt of capital contribution to
Yutaka Matsuo(AI & Company,Inc.) of which he holds more than a subsidiary*16
one-half of the voting rights
Marcelo Claure
Corporate Officer and related Dividend paid from SoftBank(Claure Holdings
entities of which he holds
Group Corp.
LLC and 2 othermore than one-half of theAdvance payment forcompanies)
voting rights
temporary expense
Yoshimitsu Goto

Director

SoftBank Group Corp. ANNUAL REPORT 2021

Fiscal year ended
March 31, 2021

As of March
31, 2021

Amount oftransaction

Balance atperiod end$1,300,000*20$–

121,516

–

1,246

–

1,800,000*20

1,173,218

–

–

–

–

–

–

238,118

7,858

202,574–

179,686

–

4,498

–

1,599

–

1,572

–

596

–

217

–

16,999–21,642

–

4,498

–

1,129

–

117

370*17

2,195

–

379

–

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Message from Our CEO(Thousands of U.S. dollars)Name of the company orindividual

Nature of relationshipRajeev Misra

Corporate Officer

Nature of transaction

Dividend paid from SoftBank
Group Corp.
Relative of Representative Director Dividend paid from SoftBank
Taizo Son
Group Corp.
(SON Financial Inc. and of SoftBank Group Corp. andrelated entities of which the2 other
Receipt of capital contribution to18
relative holds more than one-half a subsidiary*19
companies* )of the voting rights

Fiscal year ended
March 31, 2021

As of March
31, 2021

Amount oftransaction

Balance atperiod end

2,005

–

2,231

–

677

2,222*17*1 F or the fiscal year ended March 31, 2021, the Company acquired preferred stock of WeWork by converting advance payment of $1.3
billion made for the fiscal year ended March 31, 2020. The fair value of the preferred stock of WeWork at the point in time ofacquisition was ¥43,719 million ($0.4 billion.) The details are described in “(3) Details and progress of the agreement between the
Company and WeWork” under “Note 22. Investments accounted for using the equity method.”*2 T he shares of WeWork Asia held by SVF1 were exchanged for preferred stock of WeWork. The fair value of preferred stock of
WeWork at the point in time of exchange is presented as amount of transaction. The details are described in “(3) Details and progressof the agreement between the Company and WeWork” under “Note 22. Investments accounted for using the equity method.”*3 W
 eWork warrants with exercise price of $0.01per share, which the Company received as a consideration for the purchase of
unsecured notes issued by WeWork and for the credit support for a letter of credit facility provided by financial institutions. The
details are described in “(3) Details and progress of the agreement between the Company and WeWork” under “Note 22.
Investments accounted for using the equity method” and in “(b) Price risk, iii. Option contracts” in “(2) Financial risk management, a.
Market risk” under “Note 31. Financial instruments.”*4 T he Company is obliged to purchase up to $2.2 billion in unsecured notes to be issued by WeWork. Amount of transaction represents
the amounts of unsecured notes which the Company purchased for the fiscal year ended March 31, 2021. The balance sheet amountof unsecured notes as of March 31, 2021 is presented as balance at period end. The details are described in “(3) Details and progressof the agreement between the Company and WeWork” under “Note 22. Investments accounted for using the equity method.”*5 T he Company provides to WeWork the credit support for a $1.75 billion letter of credit facility provided by financial institutions. The
details are described in “(3) Details and progress of the agreement between the Company and WeWork” under “Note 22.
Investments accounted for using the equity method” and in “(2) Credit guarantees” under “Note 50. Contingency.”*6 T he Company is obliged to purchase up to $1.1 billion in senior secured notes to be issued by WeWork. As of March 31, 2021, noneof the senior secured notes had been purchased by the Company. The details are described in “(3) Details and progress of theagreement between the Company and WeWork” under “Note 22. Investments accounted for using the equity method.”*7 A
 s a result of the transfer of T-Mobile shares held by the Company on June 26, 2020, T-Mobile was no longer considered as an
associate of the Company. The details are described in “(The transfer of T-Mobile shares)” under “Note 52. Additional information.”
The amount of transaction represents the indemnification to T-Mobile recorded by the Company for the fiscal year ended March 31,
2021, which includes the amount recorded during the period T-Mobile was not an associate of the Company.
*8 As consideration for the Merger of Sprint and T-Mobile US, Inc., the Company received the right to acquire 48,751,557 T-Mobile shares forno additional consideration if certain conditions are met. The details are described in “(1)Sprint” under “Note 6. Discontinued operations.”*9 T he Company may indemnify T-Mobile and its subsidiaries against any losses, including monetary losses resulting from certain
specified matters, incurred by Sprint and its subsidiaries due to the cessation of T-Mobile’s and its subsidiaries’ access to thefrequencies of Sprint and its subsidiaries under certain circumstance. The details are described in “*2” in “(1) Sprint” under “Note 6.
Discontinued operations.”*10 T his represents the received amount of contribution to the Company’s subsidiaries, Delaware Project 1 L.L.C., Delaware Project 2
L.L.C., and Delaware Project 3 L.L.C (“Delaware subsidiaries”) by Son Asset Management LLC in July 2020. Each Delaware subsidiaryreceived ¥6,631 million ($59,895 thousand). Then Delaware subsidiaries invested in the asset management subsidiary, SB Northstar.
*11 A
 ll indebtedness occurred by November 10, 2020 including indebtedness for or in respect of borrowed money, stock or securities
lending, and any other guarantees and indemnities which Delaware subsidiaries, SB Northstar and its subsidiaries(“guaranteedsubsidiaries”)owe to the Company are guaranteed and indemnified by Masayoshi Son and Son Asset Management LLC as principal
obligor, in proportion to the ownership interest against SB Northstar at the time the relevant guaranteed obligations were incurred. At
the time of winding up of SB Northstar, Masayoshi Son and Son Asset Management LLC indemnify guaranteed obligations not being
recoverable for any reason or any failure of guaranteed subsidiaries to perform any of its obligations or liabilities in proportion to theownership interest against SB Northstar at the time the relevant guaranteed obligations were incurred.

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259

Regarding any indebtedness occurred after November 11, 2020, it will be subject to this guarantee and indemnity agreement, to theextent that Masayoshi Son’s prior consent has been obtained.
*12 In the event that Masayoshi Son is unable to perform, on a prolonged or permanent basis, his role with involvement in the investment
management decisions of the SB Northstar, the Company has a call option to cause Masayoshi Son and Son Asset Management LLC to sell
all of their interests in the Delaware subsidiaries at the fair market value. If the call option is exercised, SoftBank Group Corp. will discuss
the termination of the guarantee and indemnity agreement mentioned above with Masayoshi Son and Son Asset Management LLC.
*13 SoftBank Corp. sold the masks to Masayoshi Son. The transaction amount does not include consumption taxes.
*14 The amount is determined based on the Company’s acquisition cost.
*15 Equipment usage fees are determined based on the ratio of usage.
*16 This represents the received amount of contribution to DEEPCORE TOKYO 1 by AI & Company, Inc. and the terms and conditions of
the transaction are determined as same as other limited liability union members.
*17 The balance at period end represents the total investment amount less cumulative investment partnership losses and added
cumulative investment partnership gains as of March 31, 2021.
*18 Taizo Son, relative of Representative Director Masayoshi Son, holds over half of the voting rights of this company.
*19 This represents the received amount of contribution to DEEPCORE TOKYO 1 by Mistletoe Venture Partners, Inc. and the terms andconditions of the transaction are determined as same as other limited liability union members.
*20 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.

(2) Remuneration for executives
Remuneration for executives is as follows:(Millions of yen)

Short-term benefits���������������������������������������
Share-based payments ���������������������������������
Retirement benefits���������������������������������������
Total���������������������������������������������������������

(Thousands of U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥6,0776
16¥6,099¥7,4051,017
19¥8,441$66,886
9,186
172$76,244

Note:
Remuneration for major executives represents remuneration for the directors of SoftBank Group Corp. (including external directors),
Marcelo Claure as Corporate Officer, Executive Vice President and COO, Katsunori Sago as Corporate Officer, Executive Vice President and
CSO, and Rajeev Misra as Corporate Officer, Executive Vice President. Although Marcelo Claure, Katsunori Sago and Rajeev Misra resigned
from their positions on the Board of Directors of SoftBank Group Corp on November 9, 2020, they continue to be major executives of theCompany and their remuneration during the term of office of directors and after resignation are included in the table above.
Remuneration for Marcelo Claure, Katsunori Sago and Rajeev Misra included in the table above are ¥2,389 million ($21,579 thousand),¥387 million ($3,496 thousand) and ¥1,536 million ($13,874 thousand), respectively.
Katsunori Sago resigned from his position of Corporate Officer, Executive Vice President and CSO on March 31, 2021. He is not an
executive of the Company from April 1, 2021.

Other than the above, certain executives of SoftBank Group Corp. have each, as a limited partner,
participated in a fund (an associate of the Company) which is managed by SBIA. Under the limited
partnership agreement of the fund, these executives are exempt from paying any management or
performance fees that are payable by the other limited partners of the fund.
With regard to the distributions made by the fund for the fiscal year ended March 31 2021, theexecutives were each exempt from paying any performance fees which were, in aggregate, equivalentto ¥137 million ($1,237 thousand) (for the fiscal year ended March 31, 2020: ¥964 million). The fund,an associate of the Company, was dissolved in December 2020.

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

50. Contingency(1) Lending commitments
The lending commitments that the Company is engaged in are mainly shopping and cashing credit
limits provided to the credit card members in the SoftBank segment.
(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Lending commitments ���������������������������������

¥5,083,157¥5,964,876$53,878,385

Funded���������������������������������������������������������

511,092

701,749

6,338,623

Unfunded�����������������������������������������������������

¥4,572,065¥5,263,127$47,539,762

Due to the nature of the credit limits, that they are the maximum amounts which the credit card
members are allowed to spend any time within the range but are not necessarily fully spent, andbecause the Company can arbitrarily increase or decrease the limits, the amounts included in outstanding unfunded balance are not expected to be funded in full amounts. Also, maturities of unfundedlending 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 31. Financial
instruments.”(2) Credit guarantees
Guarantees that the Company provides are as follows:(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2021

As of March 31, 2021

Total amount of financial guarantee contract¥304,478¥211,978$1,914,714

Guarantee balance���������������������������������������

244,482

154,265

1,393,415

The Company has provided credit support (financial guarantee contract) for a $1.75 billion letter ofcredit facility to WeWork by financial institutions. As of March 31, 2021, the Company recorded¥193,743 million ($1,750,005 thousand) (as of March 31, 2020: ¥190,453 million) of the total amountof the guarantee contract related to the financial guarantee contract and ¥145,640 million ($1,315,509
thousand) (as of March 31, 2020: ¥145,338 million) of the guarantee balance. In addition, as of March
31, 2021, the Company recorded allowance for financial guarantee contract losses of ¥24,381 million($220,224 thousand) (as of March 31, 2020: ¥89,202 million) under “Other financial liabilities(current)” in the consolidated statement of financial position. The details are described in “(3) Details
and progress of the agreement between the Company and WeWork” under “Note 22. Investments
accounted for using the equity method.”Also, maturities of guarantee balance for credit guarantee are within 1 year because they are payable
on demand.

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260

(3) Litigation
SoftBank Group Corp. and certain of its subsidiaries are party to a number of currently-pending legal
and administrative 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 thatthe results of these proceedings will have a material adverse effect on our financial position or results ofoperations.
a. WeWork Tender Offer Litigation
On April 7, 2020, a special committee of the board of directors of WeWork Inc. (formally
The We Company) (herein after referred to as “WeWork”), filed a complaint in the Court ofChancery of the State of Delaware on behalf of WeWork against SoftBank Group Corp. and
SoftBank Vision Fund (AIV M1) L.P., entitled The We Company v. SoftBank Group Corp. etal., alleging breach of contract and breach of fiduciary duty arising from SoftBank Group
Corp.’s termination of a tender offer to purchase up to $3 billion of shares of WeWork heldby WeWork stockholders other than the Company (herein after referred to as the “WW
Tender Offer”). SoftBank Group Corp. previously terminated the WW Tender Offer on April
2, 2020 in accordance with the terms of the Master Transaction Agreement, dated October22, 2019, by and among WeWork, SoftBank Group Corp., SoftBank Vision Fund (AIV M1)
L.P., Adam Neumann and We Holdings LLC (for which Adam Neumann served as the
managing member), because certain conditions to the closing of the WW Tender Offer were
not satisfied.
On May 4, 2020, Adam Neumann and We Holdings LLC also filed a complaint in the Court ofChancery of the State of Delaware against SoftBank Group Corp. and SoftBank Vision Fund (AIV
M1) L.P., entitled Neumann, et al. v. SoftBank Group, Corp. et al., alleging breach of contract
and breach of fiduciary arising from SoftBank Group Corp.’s termination of the WW Tender
Offer.
On May 5, 2020, Adam Neumann and We Holdings LLC filed a motion to consolidate its May
4, 2020 action against SoftBank Group Corp. with the April 7, 2020 action brought by the
special committee of the board of directors of WeWork.
The plaintiffs sought declaratory relief, specific performance to close the WW Tender Offer (or,in the alternate, compensatory damages) and an award of attorneys’ fees and costs.
On February 26, 2021, SoftBank Group Corp. and SoftBank Vision Fund (AIV M1) L.P. enteredinto a settlement agreement with WeWork, Adam Neumann and We Holdings LLC to resolve all
pending claims in the consolidated action. The details of the settlement agreement are describedin “(3) Details and progress of the agreement between the Company and WeWork” under“Note 22. Investments accounted for using the equity method.”
The conditions of the settlement agreement were satisfied and as a result, the claims brought
by Adam Neumann and We Holdings LLC against the defendants were dismissed with prejudice

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

on March 1, 2021 and the claims brought by WeWork against the defendants were dismissedwith prejudice on April 15, 2021.
b. 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 installationof telecommunication lines, that were ordered by JPiT in relation to a project to migrate thecommunication 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 business sites 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 wereunable 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 ordered services related to the projectfor migration to the 5th PNET mentioned in (a) above, and alleges that such 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 claimsin this lawsuit.
The order to consolidate lawsuit (b) above with lawsuit (a) above was made on July 29, 2015.
As a result of close inspection of the remuneration with respect to additional services
provided in relation 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 toapproximately ¥22.3 billion on October 12, 2016 and from approximately ¥22.3 billion toapproximately ¥24.0 billion on September 7, 2017, in response to matters such as thechange of a purchase price of telecommunication line provided to JPiT.
JPiT filed an additional petition on June 24, 2020 in relation to the lawsuit (b) above, andmodified the amount of the claim for SoftBank Corp. from approximately ¥16.15 billion($146 million) to approximately ¥16.81 billion ($152 million).

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261

51. Purchase commitments
For the fiscal year ended March 31, 2020, the WeWork Investment Subsidiary launched the tender offer
worth up to $3.0 billion (¥326,490 million) from shareholders of WeWork other than the Company, but
as several of the closing conditions were not satisfied by the deadline of April 1, 2020, the Company
withdrew and terminated the tender offer at that time.
For the fiscal year ended March 31, 2021, the WeWork Investment Subsidiary commenced a tender
offer to purchase WeWork common shares and preferred shares from certain shareholders other thanthe Company for the total amount of $922 million (¥102,032 million) in March 2021, and completed itin April 2021.
The details are described in “(3) Details and progress of the agreement between the Company and
WeWork” under “22. Investments accounted for using the equity method.”
In addition, SoftBank Corp., NAVER Corporation, Z Holdings Corporation, a consolidated subsidiaryof SoftBank Corp., and LINE Corporation, a consolidated subsidiary of NAVER entered into a businessintegration agreement on December 23, 2019, which is the legally-binding agreement regarding theBusiness Integration between Z Holdings Corporation and its subsidiaries and LINE and its subsidiaries(“Business Integration”). The Company and NAVER Corporation entered into a legally-bindingtransaction agreement regarding the Definitive Integration Agreement and joint venture agreement.
As one step in the series of transactions to realize the Business Integration, SoftBank Corp. and
NAVER or its wholly owned subsidiary implemented the Joint Tender Offer for the purpose of taking
LINE private, and an absorption-type merger was conducted between Shiodome Z Holdings G.K.* as
the company ceasing to exist in the Merger and LINE as the surviving company, and 180,882,293 newLINE Shares was issued in consideration of the Merger, all of which was allocated to SoftBank Corp.
The details of Business Integration are described in “Acquisition of LINE Corporation and businessintegration of LINE Group and Z Holdings Corporation” under “Note 10. Business combinations.”* Shiodome Z Holdings G.K. made an organizational change and transitioned to a limited liability company on March 31, 2020.

Other than the above, the Company had commitments to purchase services and goods of¥1,617,788 million ($14,612,844 thousand) as of March 31, 2021 (¥1,244,242 million as of March 31,2020). Purchase commitments are mainly outstanding contracts related to investments, purchases oftelecommunications equipment, and purchases of mobile devices. The amount of leases not yet
commenced to which the Company is committed is not included in the balance of purchase commitment above. The details are described in “(4) Leases not yet commenced to which the Company iscommitted” under “Note 20. Leases”

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO

52. Additional information(The transfer of T-Mobile shares)(1) Outline of the Transfer
The Company, as part of the “¥4.5 trillion program,” of 304,606,049 shares of T-Mobile common
stock held, transferred 173,564,426 shares on June 26, 2020 (a. and b. described in (2)),
5,000,000 shares on July 16, 2020 (c. described in (2)), and 19,750,000 shares on August 3, 2020
(d. described in (2)), to T-Mobile through its subsidiary (the “Transfer”).
T-Mobile disposed of the shares transferred from its subsidiary through a public offering in the
United States, a private placement through a trust issuing cash mandatory exchangeable trust
securities, a rights offering* and a sale to Marcelo Claure, one of its directors, with the proceeds
being transferred to the Company’s subsidiary (collectively, the “Related Transactions”).
In connection with the consummation of the Transfer and Related Transactions, the Company
paid $300 million to T-Mobile.
The aggregate transaction price for the Transfer is equal to the proceeds received by T-Mobile in
the Related Transactions.
* The Company, Deutsche Telekom, Marcelo Claure and certain of their respective affiliates have agreed to waive their rights toparticipate in the rights offering.

(2) Number of shares to be transferred and transaction pricea. Shares to be transferred in the U.S. public
offering by T-Mobile and transaction pricethereof

154,147,026 shares
Transaction price per share $103.00
Aggregate transaction price $15,877 million

b. Shares to be transferred to the Trust from
T-Mobile in a private offering through theTrust and transaction price thereof

19,417,400 shares
Aggregate transaction price $1,667 millionc. Shares to be transferred to Marcelo Claure,a director of T-Mobile and transaction pricethereof5,000,000 shares
Transaction price per share $103.00
Aggregate transaction price $515 million

d. Shares to be transferred to theshareholders in the rights offering by
T-Mobile and transaction price thereof

19,750,000 shares
Transaction price per share $103.00
Aggregate transaction price $2,034 million(3) Grant of call options to Deutsche Telekom
The Company granted to Deutsche Telekom call options (the “Call Options”) over 101,491,623
shares of T-Mobile which the Company holds through its subsidiary.

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a. For the Call Options over 44,905,479 shares out of the 101,491,623 shares, a strike price ofthe call option is $103.00 per a share. Deutsche Telekom can exercise the Call Options any timeafter the grant date.
b. For the Call options over 56,586,144 shares out of the 101,491,623 shares, a strike price ofthe call option is equal to the average of the daily volume-weighted average price of the sharesof T-Mobile for each of the 20 trading days immediately prior to exercise. Deutsche Telekom
can exercise the Call Options after the exercise of rights described in the above a. or October 2,
2020.
* The Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.

(4) Number of shares to be transferred, number of shares subject to the Call Options andnumber of shares held by the Company before/after the transactions
a. Number of shares held before the Transfer

304,606,049 sharesb. Number of the released shares

198,314,426 sharesc. Number of shares held after the Transfer

106,291,623 sharesd. Number of shares subject to the Call Options

101,491,623 sharese. Number of shares held after the Call Options are exercised*

4,800,000 shares* Calculated on the assumption that the Call Options are fully exercised.

(Sell of all shares in Arm)On September 13, 2020 (U.S. time), SoftBank Group Capital Limited, a wholly owned subsidiary(“SBGC”), and SVF1 have entered into a definitive agreement with NVIDIA Corporation (“NVIDIA”), a
U.S.-based semiconductor manufacturer, whereby the Company will sell all of its shares in Arm held by
SBGC and SVF1 to NVIDIA in a transaction value up to $40 billion (the “Transaction”).
The Transaction is subject to regulatory approvals (including those of the U.K., China, the European
Union, and the U.S.) and other customary closing conditions. The Transaction is expected to takeapproximately 18 months from signing to close.
Upon completion of the Transaction, Arm will cease to be a subsidiary of the Company and will nolonger be consolidated into the Company’s financial results; however, as the Transaction is subject toregulatory approvals, including those of the U.K., China, the European Union, and the U.S., Armcontinues to be treated as a continuing operation in the Company’s consolidated statement of income
until the closing of the Transaction is considered highly probable.

SoftBank Group Corp. ANNUAL REPORT 2021

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Message from Our CEO(1) Purpose of the Transaction
Since the acquisition in September 2016 for $31.0 billion, Arm has been one of the mostimportant assets of the Company. After consideration of its original plan to relist Arm on astand-alone basis as compared to a combination with NVIDIA, the Company concluded that thelatter approach is better suited to realize Arm’s potential and will help increase the Company’s
shareholder value. The Company expects the combination will create the world’s leading
computing company for the age of artificial intelligence, accelerating innovation while expanding
into large, high-growth markets – bringing together NVIDIA, the premier AI computing company,
and Arm, the world’s most pervasive computing platform. The Company will remain committed toArm’s long-term success as a significant strategic shareholder in NVIDIA, working to enhance
NVIDIA’s and, consequently, the Company’s shareholder value.
(2) Summary of the Transaction• The Company will sell all of its shares in Arm held by SBGC and SVF1 to NVIDIA• The transaction value is up to $40 billion. Of the $40 billion, $2 billion was paid in cash to SBGC
and Arm at signing, and $10 billion in cash and $21.5 billion in NVIDIA common stock(44,366,423 shares, of which $1 billion in NVIDIA stock (2,063,554 shares) will be subject to an
escrow to satisfy certain indemnification obligations of SBGC and SVF1 in the definitive
agreement for the Transaction) will be paid to SBGC and SVF1 at closing. An earn-out of up to$5 billion is payable to SBGC and SVF1 subject to satisfaction of specific financial performancetargets of Arm in the definitive agreement, and, if earned, the Company has the option to electfor the earn-out to be paid either in NVIDIA common stock or cash.
• An additional $1.5 billion in NVIDIA stock awards will be granted to Arm employees.
• The number of NVIDIA shares representing $21.5 billion (44,366,423 shares) was determinedbased on a price of $484.6007 per share (the average of the daily closing prices of NVIDIA
common shares for the 30 consecutive trading days ended September 10, 2020, rounded up to
four decimal points).
• Upon closing of the Transaction, SBGC and SVF1 expect to receive in the aggregate approximately 6.7-8.1% of the outstanding NVIDIA shares (excluding treasury stock), depending on the
final amount of the earn-out (if any). NVIDIA is not expected to become a subsidiary or affiliateof the Company following the completion of the Transaction.
• Arm’s Internet-of-Things Services Group (ISG) business is carved out from Arm prior to theclosing of the Transaction. Accordingly, the ISG business is not within the scope of theTransaction.
• Concurrently with the definitive agreement, NVIDIA and Arm entered into a license agreement.
The consideration for the license agreement of $0.75 billion is included in $2 billion paid in cash
to SBGC and Arm at signing.

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53. Subsequent events(Retirement of treasury stock)
SoftBank Group Corp., at the Board of Directors meeting held on April 28, 2021, resolved theretirement of treasury stock pursuant to Article 178 of the Companies Act of Japan and subsequently
the retirement was conducted as follows.
(1) Reason of the retirement

To increase shareholder profit by decreasing the number
of issued and outstanding shares(2) Method for the retirement

Reduction from retained earnings(3) Class of shares retired

Common stock of SoftBank Group Corp.

(4) Number of shares retired

340,880,200 shares (16.31% of number of issued andoutstanding shares prior to the retirement)(5) Retirement date

May 11, 2021

(6) Number of issued and outstanding
shares after the retirement

1,748,934,130 shares

54. Approval of consolidated financial statements
The consolidated financial statements have been approved by the Company’s Representative Director,
Corporate Officer, Chairman & CEO, Masayoshi Son, as of June 22, 2021.

In addition, SoftBank Group Corp., at the Board of Directors meeting held on May 12, 2021, resolved
the retirement of treasury stock pursuant to Article 178 of the Companies Act of Japan and subsequently the retirement was conducted as follows.

(1) Reason of the retirement

To increase shareholder profit by decreasing the number
of issued and outstanding shares(2) Method for the retirement

Reduction from retained earnings(3) Class of shares retired

Common stock of SoftBank Group Corp.

(4) Number of shares retired

25,980,400 shares (1.49% of number of issued andoutstanding shares prior to the retirement)(5) Retirement date

May 20, 2021

(6) Number of issued and outstanding
shares after the retirement

1,722,953,730 shares

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Independent Auditor’s Report
SoftBank Group Corp. and its Consolidated Subsidiaries-2-

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Major Subsidiaries and Associates
As of March 31, 2021

Corporation
Subsidiaries
Company name

CapitalVoting rights (%)

Main businesses

Investment Business of Holding Companies Segment
SoftBank Group Capital Limited
SoftBank Group Japan Corporation *1$5,508 K

100.0¥188,798 mn

100.0

Holding company
Holding company

SB Group US, Inc.

$0 K

100.0

Management of overseas investment

Skywalk Finance GK *2,3

¥0 mn

100.0

Holding company

SB Pan Pacific Corporation¥48,249 mn

100.0

Holding company

STARFISH I PTE. LTD.

¥101,444 mn

100.0

Holding company

100.0

Holding company¥77,843 mn

100.0

Holding company$826 K

100.0

Management of SVF1 and SVF2

¥204,309 mn

40.9

Provision of mobile communications services; sale of mobile devices; provision of broadband and other fixed-line
communications services in JapanA Holdings Corporation *6¥100 mn

50.0

Holding company of shares of Z Holdings Corporation

Z Holdings Corporation *6¥237,724 mn

65.3

Management of group companies of Z Holdings Corporation¥500 mn

100.0

Manufacture, distribution, and sale of IT-related products and provision of IT-related services

Wireless City Planning Inc.

¥18,899 mn

32.2

Planning and provision of mobile broadband services

SB Technology Corp.

¥1,236 mn

53.1

Solutions and services for online businesses

ITmedia Inc.

¥1,736 mn

52.5

Operation of comprehensive IT information site ITmedia

Vector Inc.

¥1,019 mn

42.4

PC software downloads and advertisingWest Raptor Holdings, LLC *3,4
Hayate Corporation$1,251,768 K

SVF1 and Other SBIA-Managed Funds Segment
SB Investment Advisers (UK) Limited

SoftBank Segment
SoftBank Corp. *5

SB C&S Corp. *7

Subsidiaries of Z Holdings Corporation
Z Intermediate Holdings Corporation
Yahoo Japan Corporation

¥1 mn

100.0

Holding company¥199,250 mn

100.0Internet advertising and e-commerce businessLINE Corporation *6¥34,201 mn

100.0

Provision of services of communication, content and advertisements based on the mobile messenger application LINE

LINE Financial Asia Corporation Limited¥41,004 mn

100.0

Holding company

ValueCommerce Co., Ltd.

¥1,728 mn

52.0

Affiliate advertising marketing service; StoreMatch online advertising distribution service

ZOZO, Inc.

¥1,360 mn

50.1

Planning and operation of fashion e-commerce website; operational support of brands’ own e-commerce website;
operation of fashion coordination app

The Japan Net Bank, Limited *8¥37,250 mn

46.6

Banking

ASKUL Corporation¥21,190 mn

45.0

Mail-order sale of stationery and services¥905 mn

43.4

E-book distribution

eBOOK Initiative Japan Co., Ltd.

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Major Subsidiaries and Associates
As of March 31, 2021

Company name

CapitalVoting rights (%)

Main businesses

Arm Segment
Arm Limited *9$1,273 K

100.0

Design of microprocessor intellectual property and related technology; sale of software tools and provision of related services

Arm PIPD Holdings One, LLC *3,4

$620,855 K

100.0

Holding company

Arm PIPD Holdings Two, LLC *3,4

$426,016 K

100.0

Holding company¥74,046 mn

100.0

Smartphone payment business

Other
PayPay Corporation
Fortress Investment Group LLC *3,10

−

100.0

Alternative investment management businessFukuoka SoftBank HAWKS Corp.

¥100 mn

100.0

Ownership of professional baseball team; operation of baseball games; management and maintenance of baseballstadium and other sports facilities; distribution of video, voice, and data content via media

SBLA Advisers Corp. *11
SB Energy Corp.
Boston Dynamics, Inc. *12
SoftBank Ventures Asia Corp.
SoftBank Robotics Group Corp.

$0 K

100.0

Management of SoftBank Latin America Fund L.P.

¥4,770 mn

100.0

Generation of electricity from renewable energy sources; supply and sale of electricity
Design and development of mobile robots$365,400 K

100.0

KRW18,000 mn

100.0Management of fund in Asia

¥49,600 mn

84.9

Holding company

*1
*2
*3
*4
*5
*6

Effective October 1, 2020, SoftBank Group Japan Corporation (“SBGJ”), transferred all of its rights and obligations related to fund procurement using Alibaba shares to Skybridge Corporation, a newly established subsidiary.
Skywalk Finance GK uses its holdings of Alibaba shares as collateral for its borrowings.
The voting rights represent SBG’s entire contributions as percentage of capital.
Capital represents the amount of capital contribution.
SBGJ sold a portion of its SoftBank Corp. shares in May and September 2020, which resulted in the Company holding voting rights of 40.9%.
On December 23, 2019, Z Holdings Corporation and LINE Corporation entered into a definitive agreement between four companies including their respective parent companies, SoftBank Corp. and NAVER Corporation, regarding a business integration (the “Business Integration”). As
the surviving corporation, LINE implemented an absorption-type merger (the “Merger”) with Shiodome Z Holdings GK, a subsidiary of SoftBank Corp., as the absorbed corporation, as part of the Business Integration effective February 26, 2021. In addition, the trade name of LINE waschanged to A Holdings Corporation on February 28, 2021. Based on a series of transactions for the Business Integration that included the Merger, A Holdings became a subsidiary of SBG and holds the shares of Z Holdings as a strategic holding company.
Effective March 1, 2021, Z Holdings made LINE (former LINE Split Preparation Corporation, a wholly owned subsidiary of A Holdings, and currently the corporation that succeeded the entire business** of former LINE (currently A Holdings) through an absorption-type demerger), a
wholly owned subsidiary by means of a share exchange and completed the Business Integration.
** Excludes the Z Holdings shares, the contractual status pursuant to the agreements executed by LINE in relation to the Business Integration, and the rights and obligations set out in the absorption-type demerger agreement.
*7 Effective April 1, 2020, SB C&S Holdings Corp. carried out an absorption-type merger as the surviving entity with SB C&S Corp. as the absorbed entity, and changed its name to SB C&S Corp. on the same date.
*8 On April 5, 2021, The Japan Net Bank, Limited changed its name to PayPay Bank Corporation.
*9 On September 13, 2020 (U.S. time), SoftBank Group Capital Limited (“SBGC”), SVF1 and NVIDIA entered into a definitive agreement to sell all shares of Arm held by SBGC and SVF1 (“the Transaction”). Upon completion of the Transaction, Arm is expected to cease to be a subsidiaryof SBG.**** The Transaction is subject to regulatory approvals (including those of the U.K., China, the European Union, and the U.S.) and other closing conditions and it is expected to take approximately 18 months to close following the execution of the agreement.
*10 Fortress Investment Group LLC has not prepared stand-alone financial statements, thus a capital amount is not listed.
*11 On June 23, 2020, SLA ADVISERS CORP. changed its name to SBLA Advisers Corp.
*12 On December 11, 2020, SBG, Hyundai Motor Company and its affiliates (collectively, the “Hyundai Motor Group”) and Hyundai Motor Group Chairman Euisun Chung reached an agreement pursuant to which the majority of Boston Dynamics, Inc. shares held by SBG through a wholly
owned subsidiary will be sold to the Hyundai Motor Group and Euisun Chung, both of whom have agreed to underwrite newly issued shares in Boston Dynamics (the “Transaction”).
The Transaction was completed on June 21, 2021, as regulatory approvals and other requirements were satisfied. Following the Transaction, Boston Dynamics ceased to be a subsidiary of SBG.

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Major Subsidiaries and Associates
As of March 31, 2021

Associates
Company name

CapitalVoting rights (%)

Main businesses

Investment Business of Holding Companies Segment
Alibaba Group Holding Limited *1,2

CNY1,000 K

24.8

Investor company of companies operating e-commerce business; cloud computing; digital media and entertainment$197 K

49.9

Provision of co-working space service

Geniee, Inc.

¥1,550 mn

31.2

Advertising technology business

Scigineer Inc.

¥801 mn

32.1

Provision of Internet marketing support services using the personalized engine deqwas for e-commerce business
operators and retailers¥5,398 mn

29.0

E-commerce business; internet advertising and marketing

DEMAE-CAN CO., LTD¥16,008 mn

35.9

Operation of food delivery service Demae-can

SRE Holdings Corporation¥3,570 mn

21.9Real estate business; IT platform business; AI solution business

Capital accepted

Investment ratio (%)

WeWork Inc. *13

SoftBank Segment

C Channel Corporation
Associates of Z Holdings Corporation*13 On October 14, 2020, The We Company changed its name to WeWork Inc.

Limited Partnership
Subsidiaries
Fund nameMain businesses

Investment Business of Holding Companies Segment
SB Northstar LP

$44 B

100.0

Investment in listed stocks and other financial instruments

SoftBank Vision Fund L.P.*14

$85 B

33.6

Investment fund in the technology sector

SoftBank Vision Fund II-2 L.P.

$7 B

100.0

Investment fund in the technology sector

$3 B

100.0

Investment fund in the technology sector in Latin America

SVF1 and Other SBIA-Managed Funds Segment

Other
SoftBank Latin America Fund L.P.

*14 The capital accepted of SoftBank Vision Fund L.P. includes the capital accepted by alternative investment vehicles. Investment ratio of SoftBank Vision Fund L.P. includes incentive scheme related to SVF1.		

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Stock Information
As of March 31, 2021

Shareholder registrar

Mitsubishi UFJ Trust and Banking
Corporation

Stock exchange
registration

Tokyo Stock Exchange, First Section

Securities code

9984

Number of shares
Shares authorized
Shares issued

7,200,000,000
2,089,814,330(including 351,297,587 of treasury stock)

Number of shareholders 174,536

(%)

1.9
5.2

1.3
5.2

1.3
5.1

2.1
5.0

22.4

22.8

23.3

23.7

1.4
3.5

39.5

37.4

38.7

Masayoshi Son
The Master Trust Bank of Japan, Ltd. (Trust Account)
Custody Bank of Japan, Ltd. (Trust Account)
JP MORGAN CHASE BANK 385632
JP MORGAN CHASE BANK 380763
STATE STREET BANK WEST CLIENT-TREATY 505234
Custody Bank of Japan, Ltd. (Trust Account 5)
SSBTC CLIENT OMNIBUS ACCOUNT
Custody Bank of Japan, Ltd. (Trust Account 6)
SON ESTATE LLC

460,161
229,160
110,388
30,92929,06623,93723,872
21,541
21,16320,000

26.47
13.18
6.35
1.78
1.67
1.38
1.37
1.24
1.22
1.15

Top 10 Shareholders

970,217

55.81

(Yen)
30,00011,00027,50010,00025,0009,000

22,5008,000

20,0007,000

17,5006,000

15,0005,000

12,5004,000

10,000

3,000

25

45.2
31.7

0

Percentage of total
shares issued (%)(Yen)
12,00026.7
38.8

Number of shares held
(thousands)

Stock price and trading volume

23.2

75

50

Name

Notes:
1. Percentage of total shares issued is calculated by deducting treasury stock (351,297,587 shares).
2. Of the above numbers of shares held, those held by The Master Trust Bank of Japan, Ltd. and Custody Bank of Japan, Ltd. are all related to trust operations.
3. As for major shareholders, the number of shares held effectively by Masayoshi Son, verified by SBG, is presented as has been hitherto on a combined basis (by means of namebased aggregation), while those held by other major shareholders are presented precisely as reported in the register of shareholders.

Distribution by shareholder type
100

Major shareholders

31.2

32.9

30.5

2,000

(Million shares)
50

1,000

25

0

2011

Stock price (left)
2016

2017

Domestic individuals and others
Domestic financial institutions
Financial instrument firms

2018

2019

2020

Overseas institutions and individuals
Domestic other companies

Note: SBG retired 340,880,200 and 25,980,400 shares of treasury stock on May
11, 2021 and May 20, 2021, respectively. The total number of shares issued
immediately after these retirements of treasury stock was 1,722,953,730.

(FYE)

2012

2013

Trading volume (right)

2014

2015

2016

2017

2018

2019

2020

Nikkei 225 (right)

2021
(CY)

0

Note: Stock prices are average prices for each month, and trading volumes are average daily trading volumes for each month. The stock prices and trading volumes have beenadjusted to reflect the share split on June 28, 2019.

Market capitalization(FYE)

Market capitalization (Trillions of yen)

2016

2017

2018

2019

2020

8.7

8.8

11.8

7.9

19.5

Note: Market capitalization is calculated by multiplying the stock price by the total number of shares issued (including treasury stock after adjusting for the aforementioned share
split) as of the end of each fiscal year.

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Corporate Data
As of March 31, 2021

Corporate name

SoftBank Group Corp.

Selection for major indicesFounded

September 3, 1981•

WebsiteNikkei Stock Average
JPX-Nikkei Index 400• TOPIX Core 30 / TOPIX 100 / TOPIX 500 / TOPIX 1000
• Nikkei 500 Stock Average• Nikkei Stock Index 300• FTSE4Good Index Series• FTSE Blossom Japan Index• MSCI Japan Empowering Women Index (WIN)*• S&P/JPX Carbon Efficient Index•

Corporate headquarters

1-7-1, Kaigan, Minato-Ku,
Tokyo 105-7537, Japan

Telephone number+81-3-6889-2000

Representatives

Masayoshi Son,
Representative Director,
Corporate Officer,
Chairman & CEO

Share capital¥238.8 billion

Number of subsidiaries

1,408

Number of associates

535

Credit rating

Number of employees

241 (consolidated basis: 58,786)

Main business

Pure holding company

Independent auditor

Deloitte Touche Tohmatsu LLC

Sustainability

Rating agency

Number of joint ventures 34

Investor Relations
We provide videos and related materials of the latest earnings
results briefing, and IR-related news, among others.

Longtermbond

Shortterm OutlookbondStandard & Poor’s

BB+−

StableJapan Credit Rating Agency

A-

J-1

StableWe introduce our efforts to resolve social issues through ourbusiness.

External evaluations on sustainability
Received an A- score from CDP in climate change in2020.
• Granted “Kurumin” certification by the Ministerof Health, Labor and Welfare under the Act on
Advancement of Measures to Support Raising NextGeneration Children in 2015.
•

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Corp. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVEPROPERT Y OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE
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Securities code: TSE 9984

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