ANNUAL REPORT

2020

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 beliefsof the Group in light of the information currently available to it as of the date hereof. Such forward-looking statements do not represent any guarantee by any member of the Group or its management of future performance 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 SoftBank Vision Fund L.P., 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; and litigation;, 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 and other 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 Group nor its
management gives any assurances that the expectations expressed in these forward-looking statements will turn out to be correct, and actual results, performance or achievements could materially differ from expectations.
Persons viewing this Annual Report should not place undue reliance on forward looking statements. The Company undertakes no obligation to update any of the forward-looking statements contained in this Annual Report orany 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 of information in this Annual Report regarding companies (including, but not limited to, those in which SB Funds (as defined below) 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.

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 orentity form the belief, 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 maintain an 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 SoftBank Group Corp. (the “SB Fund Managers” and each an “SB Fund Manager”, and including SB Investment Advisers (UK) Ltd. andany affiliates thereof (“SBIA”)) (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”, including
SoftBank Vision Fund L.P. (the “Vision Fund I”).).

None of the SB Funds, the SB Fund Managers, including SBIA, any successor or future fund managed by a SB Fund Manager, SoftBank Group Corp. or their respective affiliates makes any representation or warranty, express or
implied, as to the accuracy or completeness of 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 Annual Report, or future performance of any successor fund managed by a SB Fund Manager.
For the avoidance of doubt, the SB Funds are prior funds managed by an SB Fund Manager which are not being offered to investors. Information relating to the performance of the SB Funds or any other entity referenced in thisAnnual Report has been included for background purposes 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 fundmanaged by an SB Fund Manager. References to any 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 andshould not be construed as a recommendation of 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 the applicable 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 noassumption should be made that investments 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 date of
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 from the assumptions andcircumstances 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 thisAnnual 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 this Annual Report. No assumption should be made that investments identified and discussed
in this Annual Report were or will be profitable, or that 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 SoftBank Group Corp. will work with any of the firms or businesses whose
logos are included in this Annual Report in the future.
SBIA manages separate and independent operations and processes from those of SoftBank Group Corp., and any SB Funds managed by SBIA, including Vision Fund I, are solely managed by SBIA.

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 2019” refers to the fiscal year ended March 31, 2020, and other fiscal years are referred to in a corresponding manner in this annual report. “FYE” denotes the fiscal year-end. For example, “FYE2019” denotes March 31,
2020, the last day of fiscal 2019.

Company Names
See page 110 for the abbreviations of subsidiary and associate company names.

Aim HighOur vision — what we are aspiring to achieve— is simple: more joy and inspiration to people
around the globe. Partnering with companies
that share the same vision, we are building
a future in which the Information Revolution
brings happier lives to everyone.

Table of Contents
Message from Our CEO>>> P. 002

Message from Our CEO>>> P. 002

Who We Are>>> P. 006

006

Our Goal008

Our Transformation

010

Our Path to Increasing Shareholder ValueOur Path to Continued Growth

Chairman & CEO, SoftBank Group Corp.

Masayoshi Son
SoftBank Vision Fund: Investment Strategy>>> P. 014

Arm: Business Strategy>>> P. 022

Board Director, Executive Vice President, SoftBank Group Corp.

Board Director, SoftBank Group Corp.

CEO, SoftBank Investment Advisers

CEO, Arm Limited

Rajeev Misra

Simon Segars

Message from Our CFO>>> P. 026

SoftBank Vision Fund: Investment Strategy

016

SoftBank Vision Fund: In Focus

020

SoftBank Vision Fund: Portfolio Companies

022

Arm: Business Strategy

025

Merger of Sprint and T-Mobile and the Sale of
T-Mobile Shares

Management: The Foundation
Supporting Our Growth

Message from an External
Board Director>>> P. 036>>> P. 014

014>>> P. 026

026

Message from Our CFO

030

Corporate Governance

036

Message from an External Board Director

038

Message from an External Audit & Supervisory
Board Member

040

Risk Management

041

Compliance044

Sustainability

048

Board Directors and Audit & Supervisory Board
Members

Financial Section>>> P. 052

053

Graphs: Key Consolidated Financial Data

Board Director, Senior Vice President, CFO, CISO & CSusO, SoftBank Group Corp.

Board Director, Independent Officer,

055

Eleven-Year Key Consolidated Financial Data

(Head of Finance Unit, Head of Administration Unit)

SoftBank Group Corp.

Yoshimitsu Goto

Yutaka Matsuo

057Management’s Discussion and Analysis ofResults of Operations and Financial Position

089

Risk Factors

098

Consolidated Financial Statements

109

Notes to Consolidated Financial Statements

User Guide

240

Independent Auditor’s Report

This PDF has various features to make it easy to use and to search for information. It also
contains links to external websites to allow you to refer to external information easily.

Corporate Information

Message from an External Audit &Supervisory Board Member>>> P. 038

Contents
Full-time Audit & Supervisory Board Member, Independent Officer, SoftBank Group Corp.
Certified Public Accountant, State of California, U.S.

Maurice Atsushi Toyama

Click to go to the first page of each category.

Go to related page242

Major Subsidiaries and Associates

245

Corporate Data

246

Stock Information>>> P. 242

Link to external website

001

Message from Our CEO

Leading the Digital Transformation While Increasing Shareholder Value
The COVID-19 crisis has createda new normal
Throughout human history, crises have forged a
new normal. The cholera outbreak during the 19th
century, for example, led to over one million fatalities
worldwide. In a bid to eliminate the contaminationof drinking water, one of the main causes of thecholera pandemic, sewer systems were constructedin major cities including London and Paris, whichbrought about the new normal of safe water. The
Great Depression of 1929 created global havoc. In
the U.S., the epicenter of the crisis, the economy
deteriorated rapidly, and the unemployment rate
hit 25%. Working to create jobs, the government
launched a series of New Deal initiatives that resulted in widespread construction of much-needed
infrastructure. With the completion of hydroelectric

dams and national roadways, the new normal of anelectric-powered and automobile-based society cameinto full swing.
Currently, the novel coronavirus, COVID-19, is having a grave impact on people around the world. The
number of global cases continues to increase, andhuman contact is subject to restrictions. The needto resolve the current situation is accelerating digitaltransformation at a dizzying pace while creating the
new normal. Meetings, food delivery, education,
medical care, shopping, and entertainment are all
going online, and communication and interaction
without human contact is spreading. Without doubt,
this will shape the new normal in the future. Our history demonstrates that humanity will inevitably utilize
its wisdom and do its utmost to solve any issue whenconfronted by a crisis.

Our portfolio companies are tackling
the pandemic
Since our foundation, we have grown by driving thedigital transformation. Our portfolio companies similarly have made hard-fought efforts to address thecurrent COVID-19 crisis. Here, I would like to introduce some specific examples from portfolio companies of SoftBank Vision Fund (the “Vision Fund”).
Uber Eats, a food delivery service operated by U.S.based Uber Technologies, posted gross bookings of$4.7 billion in the January to March quarter of 2020,
up 52% year on year.*1 DoorDash, also based in
the U.S., and GRAB HOLDINGS out of Singapore arealso seeing a rapid expansion of similar services. In

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Message from Our CEO
See page 11 for details ofshareholder value.

the online medical care service area, Ping An Good
Doctor, China’s online healthcare ecosystem platform,
had 1.11 billion visits to their app over the threeweek period from January 20, 2020.*2 Amid a rash of
school closures, Zuoyebang Education, a provider of
online educational services in China, reported a yearon-year increase of 52% in the number of monthly
active users to 137 million in April 2020.*3 In the entertainment sector, ByteDance in China enjoyed morethan 315 million global downloads of its TikTok social
video-sharing app in the January to March quarter of
2020, presumably the highest for any app, surpassing
WhatsApp and Facebook.*4 Slack Technologies, with
its highly-rated service to support remote working,reported a 28% year-on-year increase in its customer
base to 122,000 in April 2020.*5
Some of the Vision Fund’s portfolio companies areworking to respond directly to the COVID-19 crisis.
Vir Biotechnology in the U.S. is using AI to develop
treatment and vaccines. The company has identified thousands of candidate antibodies and plans
to begin clinical trials of the two that exhibit thegreatest potential this summer.*6 Roivant Sciences in
the U.K. and Switzerland is developing therapeutic
medicines for COVID-19 for acute respiratory distresssyndrome.*7 I am very hopeful that we will be able
to contribute to solving the problems that people
around the world are facing today through the development of such treatments and vaccines.

Shareholder value exceeds the
pre-pandemic level
SoftBank Group Corp. (“SBG”) now serves as a
strategic holding company, not an operating company. Our unique investment portfolio includes bluechip operating companies such as Alibaba, SoftBank
Corp., Arm, and T-Mobile (most of the T-Mobile
shares were sold in June 2020, as referred on thenext page.). We also invest in “unicorns,” privatecompanies valued at more than $1 billion at the timeof investment, through our interest in SoftBank Vision Fund. I believe that shareholder value should be

used to properly evaluate a holding company like us.
This is because our operating income, reported froman accounting perspective, cannot reflect changes inthe value of certain asset holdings including Alibaba.
For example, before the COVID-19 outbreak began
in earnest, the equity value of SBG’s holdings stood at¥29.0 trillion and its shareholder value after deducting net debt was ¥23.0 trillion as of December 31,
2019 (see graph below). While SBG incurred a record
deficit in fiscal 2019 with an operating loss of ¥1.4
trillion and a net loss of ¥961.6 billion, more significantly, our shareholder value fell from ¥23.0 trillion
to ¥21.7 trillion as of March 31, 2020. As of June 24,*1 Uber press release (May7, 2020). Gross bookings
defined as the total dollar
value, including any applicabletaxes, tolls, and fees without
any adjustment for consumer
discounts and refunds, driverand restaurant earnings, anddriver incentives. Gross bookings
do not include tips earned bydrivers.
*2 Ping An Good Doctor - Annual
Report 2019
*3 Zuoyebang Education Monthly
users: Zuoyebang homework
search app’s monthly activeusers*4 Sensor Tower Blog as of April
29, 2020.
*5 Slack investor presentation of
first quarter fiscal year 2021.
Customer base: sum of paidcustomers and newly added
customers*6 Vir Biotechnology’s press releaseon March 25, 2020
*7 Roivant Sciences’s press releaseon March 18, 2020

Trends in shareholder value*8

SVF(Merger completed in 2020)(Trillions of yen)

29.0

30.0

28.0

1.1

0.9
2.6

0.9

6.0

3.1

2.7

2.7

6.3

2.7

2.0

Others

6.8

2.6
3.6

3.2
4.1

4.6
4.4

23.0
15.5

16.2

14.2

Equity valueof holdings

Net debt

23.3

21.7

Shareholder
value

Equity valueof holdings

December 31, 2019

Net debt

Shareholder
value

Equity valueof holdings

March 31, 2020

Net debt

Shareholder
value

June 24, 2020

*8 Share price as of December 31, 2019: closing price as of December 30, 2019 (Japan), closing price as of December 31, 2019 (U.S.). Share price as of March 31, 2020: closing price as of March 31,
2020. Share price as of June 24, 2020: closing price as of June 24, 2020.

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Message from Our CEO

2020, however, the equity value of our holdings has
improved to ¥30.0 trillion and shareholder value recovered to ¥23.3 trillion, both higher than the levels
recorded prior to the COVID-19 crisis.

Progress in the sale and monetization ofassets for share buybacks and debt reduction
Since our acquisition of Sprint in July 2013, thecompany was a consistent drag on earnings and had
been cited as a financial concern, despite our enthusiasm over expansion into the U.S. telecommunications market. However, we completed the mergerof Sprint with T-Mobile in April 2020 and made afurther decision in June 2020 to sell approximately
200 million of our roughly 300 million shares in
T-Mobile (see page 238 for more details). Summarizing our investment performance in Sprint to date, I
am confident that we have successfully increased thevalue of our investment and generated an adequate
return. We will continue to hold our investments thatare not subject to this sale and anticipate the returnon our investment to be even greater as the value of
T-Mobile further increases.
Amid the COVID-19 crisis, in light of SBG’s stock
price dropping to ¥2,609.50 on March 19, 2020,
marking the largest ever discount for our shareholder value against our market capitalization, we

Progress in the sale and monetization of assets

Up to*12 Created by SBG based on
publicly available historicalinformation published by
Alibaba. $1 = ¥109.10 and
CNY 6.967.

Alibaba and Arm both exhibit steady growth¥4.5 trillion

Our largest stock holding is Alibaba. While shareprices can fluctuate, what matters most is the value ofa business itself, which can be read from its revenue
and net income trends. In the fiscal year ended March
2020, Alibaba’s revenue climbed 35% year on year to¥8.0 trillion. Net income increased 42% year on yearto ¥2.1 trillion.*12 Amid the pandemic crisis, the use of¥0.3 trillion*9¥1.2 trillion*10¥3.7 trillion¥2.2 trillion*11(80% progress)*9		Transfer price (¥310.2 billion) for the transfer of a portion of SoftBank Corp. shares executed in May 2020*10	Sum of the amount ($11.5 billion) procured through several prepaid forward contracts using Alibaba shares, including a forward contract, a floor contract,and a collar contract. The contracts were entered into in April and May 2020.
*11	Expected sale price. Total amount of sale price ($20,115 million) as announced in “Number of Shares to be Transferred and Purchase Price for the Transfer
of Shares of Equity Method Associate (T-Mobile US, Inc.)” dated June 24, 2020. $1 = ¥106.53.

SoftBank Group Corp. ANNUAL REPORT 2020

announced a program on March 23, 2020 to sell ormonetize up to ¥4.5 trillion of assets held, and authorized the repurchase of up to ¥2.0 trillion of SBG
common stock with the balance to be used for debt
redemptions, bond buybacks, and to increase cash
reserves. While there were some external doubts
about the viability of the program, in the threemonths since our announcement, we have completed up to 80% of our ¥4.5 trillion target through themonetization of a portion of Alibaba shares, sale of a
portion of SoftBank Corp. shares, and the previously
mentioned sale of shares of T-Mobile common stock(see graph below). I am confident in our prospects
for completing the remaining 20%.

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Who We Are

e-commerce has surged, reaffirming its growing economic and social importance. I believe many first-timeusers have recognized the convenience that online
tools can provide. As e-commerce takes a growing
hold on people’s lives in the future, it will undoubtedly
become a part of the new normal.
Jack Yun Ma, a co-founder of Alibaba, resigned asa Board Director of SBG on June 25, 2020. I would
like to extend my sincere gratitude for his many

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

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Corporate Information

004Message from Our CEO

contributions during his term in office. In conjunction,
I resigned as a board director of Alibaba effective thesame date. Even after my resignation, SBG continues to be Alibaba’s largest shareholder and Alibaba
remains our most important investment asset. Daniel
Yong Zhang has now taken over as CEO of Alibaba.
The fact that Jack and I are stepping down as Alibaba
directors is also a reflection of the great faith we havein Daniel. We are looking to maintain our equity stakein Alibaba for as long as possible.
Let’s move on to Arm, another valuable asset ofours. We acquired Arm in 2016 and hold high expectations that its value will continue to grow. Chips
powered by Arm’s technology serve as one of thefoundations for the ongoing evolution of online
services. Shipments of Arm-based chips have continued to increase, climbing to a cumulative total of 166
billion units in 2019. Arm technology is already being
used in virtually all smartphones and is expanding intoa wide range of other areas. In the server field, whichis experiencing remarkable growth in recent years,
Amazon.com’s cloud business, Amazon Web Services(AWS), announced its new Graviton2 processor, whichuses Arm’s latest technology, in December 2019. In
addition to increasing processing speed by up to 65%
compared with existing servers, Graviton2 processors
will help AWS customers secure cost savings of up to
40% by reducing energy consumption. With AWS, theworld’s largest cloud computing company,*13 adopting
Arm technology, competitors will undoubtedly haveto follow suit. I am convinced that Arm’s share in theserver market will grow by leaps and bounds in 2021
and throughout 2022.

SoftBank Group Corp. ANNUAL REPORT 2020

Our vision remains consistentLet’s take a big, overarching look at economic growth
curves. The value of companies across the old economy may be stable, but it is not going to grow much.
In contrast, the value of companies in the digital
economy can grow on a quadratic curve, albeit withhigh volatility. It is no coincidence that the growthof Internet traffic is also exhibiting a quadratic curve.
I firmly believe that the value of companies in thedigital economy will expand in proportion to Internet traffic. As we focus on the digital economy, ourshareholder value has also increased steadily along aquadratic curve. I remain confident that this growth
will continue into the future.
In order to ensure this growth over the long-term,
we are consistently strengthening our corporate
governance. In addition to doubling the number of External Board Directors to four, we have approved theformation of a voluntary committee, Nominating &Compensation Committee. Through these initiatives,
we are enhancing the independence, objectivity, andaccountability of the decision-making process for theselection of Board Directors moving forward, and thefairness and transparency of the decision-making process for the compensation of Board Directors. Additionally, as an advisory body to the Board of Directors,
the Nominating & Compensation Committee will be
responsible for reviewing the following matters andproviding recommendations to the Board of Directors:
appointment and dismissal of Board Directors, overall
compensation policy for Board Directors, and individual compensation for each Board Director. The Nomi-

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Who We Are

nating & Compensation Committee will also have theability to retain consultants and advisors, as necessary. Our latest efforts build on SBG’s commitment
to increase the diversity of the Board and add new
and fresh perspectives, as well as bring our corporate
governance in line with both global standards and the
expectations of Japanese and international investors.
I recall announcing SoftBank’s Next 30-Year Visionat our General Meeting of Shareholders in June 2010
on the occasion of our 30th anniversary. At that time,
I forecast that a brain computer would become areality, allowing us to coexist with intelligent robots
within the next 30 years from 2010. I also claimed*13 Canalys “Global cloudinfrastructure market Q42019 and full year 2019”that the spread of IoT would inevitably connect every
facet of life to the Internet, and that the cloud, which
integrates all data, would evolve into humankind’s
greatest asset. Ten years later, with the rapid rise ofAI, smart robots, and the cloud, I feel the future that
we envisioned is steadily approaching. As reaffirmed
in SoftBank’s Next 30-Year Vision, the SoftBank Group
has not wavered from its original goal of bringing
happiness to everyone through the Information
Revolution. We will continue to lead this Information
Revolution to contribute to people’s happiness.

Masayoshi Son
Chairman and CEO
July 2020

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Our Goal

See “SoftBank’s Next 30-Year
Vision” on our website for detailsof our Corporate Philosophy and
Vision.

The SoftBank Group is guided by its corporate phi-and continuously evolve in line with the technologies

losophy of “Information Revolution — Happiness forand business models that will drive the future. At

everyone.” We aim to maximize our corporate value

present, the incorporation of artificial intelligence (AI)while being a corporate group that provides essential

into various business models is starting to reshapetechnologies and services needed most by people

value creation, and it will fundamentally redefine

around the world.

most industries. Moreover, to ensure that we cap-

We see the Information Revolution, in which

ture the huge opportunities arising from the market

societies and lifestyles are transformed throughexpansion and creation of new industries driven by

developments in information technology (IT), as a

AI utilization, we are endeavoring to form a corpo-

major growth opportunity. In order to contribute

rate group that will continue to grow for the next

to the well-being of all peoples over the long term

300 years while implementing the Cluster of No. 1

through the Information Revolution, it is imperative

Strategy, our unique strategy for orchestrating thethat we identify the changes in social needs promptly

organization.

Corporate Philosophy

Information Revolution —Happiness for everyone
VisionThe corporate group needed mostby people around the world
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Our Goal

Maximizing shareholder value throughthis strategy, the companies are encouraged to form

the Cluster of No. 1 Strategy

synergies to evolve and grow together based on capi-

SoftBank Group Corp. (“SBG”), as a strategic invest-

tal ties and a shared vision while making decisions in-ment holding company, exercises overall manage-

dependently. While influencing the decision-making

ment of the investment portfolio comprising Groupof the forming the group under the strategy, we docompanies. Under this management system, SBG

not require ownership of majority equity interests or

considers shareholder value as the most important

integration of brands, as we value the independence

management indicator, that is, the equity value ofof each company. We believe this policy in ownership

holdings of the entire investment portfolio less thealso allows a flexible exit from companies that havenet debt of SBG. We aim to maximize shareholder

matured or not grown as expected, thereby enablingvalue over the medium to long term by working toflexible replacements of the group companies.

expand the equity value of holdings of each GroupThe Cluster of No. 1 AI Strategy is a part of thecompany that forms part of the Cluster of No. 1

Cluster of No. 1 Strategy that focuses on the poten-

Strategy.

tial of AI. Here, we are building a cluster throughinvestments in No. 1 or potential No. 1 AI companies
that will disrupt their respective industries.

The Cluster of No. 1 Strategy
The goal of the Cluster of No. 1 Strategy is to form a

In working on this organizational strategy, we arediverse group of companies with outstanding tech-engaged in investment activities, primarily throughnologies and business models in specific fields. Under

SoftBank Vision Fund, which was launched in 2017.
See page 11 for details of shareholder value.

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Our Transformation

Our Vision Remains Unchanged. Our Business Areas Are Always Evolving.
The founding of SoftBank and the rise of the PC

Boosting Internet and broadband penetration in Japan

From 1981: PC Software

From 1996: Internet and broadband

Convinced of a surge of personal computers, we incorporated as SOFTBANK Corp. Japan in
1981 aiming to be a software bank that would serve as an infrastructure of the new informationsociety. At the time of this foundation, we were primarily engaged in the distribution of packaged software. As a part of efforts to bring new business to Japan from the U.S. through “timemachine management,” SoftBank Holdings Inc. was established in the U.S. in 1994 to identify
investment opportunities in promising Internet-related companies. Yahoo! Inc., an upstart company then, was brought to our attention through one of SoftBank Holdings Inc.’s investments.

In 1996, Yahoo Japan Corporation (currently Z Holdings Corporation) was established throughjoint investment with Yahoo! Inc. of the U.S. Positioned as the “First Year of the Internet,” 1996
also saw the SoftBank Group take its first full-fledged step as an Internet company with moves tolaunch a number of Internet-related businesses and subsidiaries. In 2001, we entered the broadband market with the launch of Yahoo! BB, which was committed to widespread broadband use inJapan by providing faster and cheaper access to the Internet. This was followed by our acquisitionof JAPAN TELECOM CO., LTD. in 2004 and subsequent entry into the fixed-line telecommunications
business. In 2005, we acquired a professional baseball team, the Fukuoka Daiei HAWKS (currently
the Fukuoka SoftBank HAWKS). In anticipation of entering the mobile communications business,this move helped to significantly enhance our corporate reputation and brand recognition.
The years around 2000 were also a time of strategic investment in Internet-related companies
around the world. These investments included Alibaba.com Corporation (currently Alibaba),
which is still growing rapidly as a leader in the explosively-expanding Chinese e-commerce.

© SoftBank HAWKSSoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

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008

Our Transformation

Focusing on mobile broadband expansion

Driving the Information Revolution forward - strategic investment holding company

From 2006: Mobile broadband

From 2015: IoT and AI

Presaging the shift in the Internet’s core user environment from PC to mobile, we acquired
Vodafone K.K. in 2006. Launching mobile communication services under the SoftBank brand, we
took steps to expand our customer base by introducing revolutionary tariffs, strengthening the
network, and providing a wide variety of device choices. In 2008, we launched iPhone 3G as thefirst provider in Japan, contributing to a further boost in smartphone penetration in the domestic
market. Fully leveraging the know-how cultivated in Japan, we entered the U.S. telecommunications market through acquisition of Sprint* in 2013.

In July 2015, we renamed ourselves to SoftBank Group Corp. to clarify our position as a strategic
investment holding company. Then in September 2016, we acquired Arm, a U.K.-based major
semiconductor design company that boasts over 90% share of the smartphone market and is expected to play a central role in the IoT sector. This was followed by the launch of SoftBank Vision
Fund in May 2017, which was intended to make large-scale investments in high-growth-potential companies that are leveraging AI. In 2018, we pushed forward our transition to a strategic
investment holding company by announcing the merger of Sprint and T-Mobile* in April and thelisting of shares of SoftBank Corp., our domestic telecommunications business arm, in December.
Looking ahead, we continue to aim to maximize our corporate value over the long term, throughgrowing and evolving in concert with entrepreneurs who leverage innovative technologies toshape the future.

* Merger with T-Mobile completed in April 2020.

Note: iPhone is a trademark of Apple Inc., registered in the U.S. andother countries. TM and © 2020 Apple Inc. All rights reserved.

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

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009

Our Path to Increasing Shareholder Value
Shareholder
value

Shareholder Value: Our Most Important KPI¥23.3

May 2017
SoftBank Vision Fund started operations

Shareholder value of SBG reached ¥23.3 trillion as of June 24, 2020. We increased ourtrillion

As of June 24, 2020

shareholder value in the medium to long term in the information and technology industry.
September 2016
Acquired U.K.-based semiconductor
technology designer Arm

September 2014
Alibaba listed on the New
York Stock Exchange
July 2004
Entered the fixed-line
telecommunications
business through theacquisition of JAPANTELECOM CO., LTD.

September 1981
Founded as a
distributor of packaged
software for PCs

September 2001
Entered thebroadband service
market with thelaunch of Yahoo! BB

July 1994
Offered shares publicly
on the OTC market

1981

1995

PC Software

2000

April 2020
Merger between
Sprint and T-Mobile
completed
December 2018
SoftBank Corp. listed on theFirst Section of Tokyo Stock
Exchange

SBGʼs market
capitalization

July 2013
Acquired Sprint

April 2006
Entered mobile
communications businessthrough the acquisitionof Vodafone K.K.

June 2010
Unveiled our Next
30-Year Vision

2005

2010

Internet and broadband

Mobile broadband

2015

2020

(FY)

IoT and AI

Note:	Shareholder value and market capitalization based on the closing prices up to June 24, 2020.
The changes in shareholder value are the Company estimates based on the information available to it and the accuracy or completeness of the information is not guaranteed. The figures are not audited.
The changes in shareholder value do not guarantee future results and are not indicative of the price of SBG’s common stock or any securities it holds, and should not form the basis of any investment decisions. Calculations are based on data before considering taxes unless otherwise stated.

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Increasing Shareholder Value

How We Think About Shareholder Value

30.0

As of June 24, 2020
(Trillions of yen)

We evaluate the shareholder value of SBG as a strategic investment holding company as shown below.

Equity value of holdings

Others0.9

SoftBank
Vision Fund

2.6

P12

2.6

P12

(Trillions of yen)

Net debt

6.8

30.0

–

Net debt(Trillions of yen)

6.8=

Shareholder value(Trillions of yen)

23.3

Calculation of equity value of holdings
Calculated mainly based on the fair value of unlisted shares, etc. held by SBG.

3.6

4.1

Value equivalent to SBG’s portion of SoftBank Vision Fund’s holding value + performance fees accrued, etc.

P13

Calculated based on the acquisition cost, excluding the number of Arm shares held by SoftBank Vision Fund.
The sum of (a) to (d) below(a) Equity value of common stock of T-Mobile to be sold: aggregate sale price of the shares to be sold ($20,115 million) before deducting underwriting
discount and commission and certain other expenses, as announced in “Number of Shares to be Transferred and Purchase Price for the Transfer of
Shares of Equity Method Associate (T-Mobile US, Inc.)” dated June 24, 2020(b) Equity value of shares subject to call options: calculated by multiplying the number of shares subject to call options that Deutsche Telekom AG to
receive (101,491,623 shares) by the share price of T-Mobile.
(c) E quity value of shares that are not subject to sale or call options: calculated by multiplying the number of shares held by SBG as of April 1, 2020 thatare not subject to (a) or (b) mentioned above (4,800,000 shares), by the share price of T-Mobile.
(d) Fair value of the right to have common stock of T-Mobile (48,751,557 shares) re-issued to SBG by T-Mobile for no additional consideration undercertain conditions

P12

Calculated by multiplying the number of SoftBank Corp. shares held by SBG by the share price of SoftBank Corp. (reflected the transfer of a portion of
SoftBank Corp. shares executed in May 2020)

23.3
16.2

Equity value of holdings

SoftBank Group Corp. ANNUAL REPORT 2020

Calculated by multiplying the number of Alibaba shares held by SBG as of December 31, 2019 by the share price of Alibaba.

Calculation of net debt
• Net debt = SBG net interest-bearing debt
• Net debt = SBG gross debt - SBG cash position, etc.
• SBG gross debt = SBG gross interest-bearing debt = consolidated gross debt - gross debt of subsidiaries (non-recourse)• SBG gross debt: adjusted (e) to (h) below(e) JPY Hybrid Bonds issued in September 2016: 50% of outstanding amount, which is recorded as debt in consolidated B/S, is treated as equity.
(f) USD Hybrid Notes issued in July 2017: 50% of outstanding amount, which is recorded as equity in consolidated B/S, is treated as debt.
(g) JPY Hybrid Loan executed in November 2017: 50% of outstanding amount, which is recorded as debt in consolidated B/S, is treated as equity.
(h)	The sum of the amount (before deducting cost) procured through several prepaid forward contracts using Alibaba shares including a forward contract, afloor contract, and a collar contract. The contracts were entered into in April and May 2020.
• SBG cash position, etc.: considered the impacts (i) to (l) below(i) Estimated cash proceeds and capital call payment related to the assets transfer to SVF from SBG that had been already completed by March 31, 2020.
(j)	The sum of the amount procured through several prepaid forward contracts using Alibaba shares including a forward contract, a floor contract, and acollar contract. The contracts were entered into in April and May 2020.
(k) The total amount of SBG’s share repurchase from April 1, 2020 to June 15, 2020(l) Transfer price for the transfer of a portion of SoftBank Corp. shares executed in May 2020
• Consolidated gross debt = excluded cash position of banking business (The Japan Net Bank)• Gross debt of subsidiaries (non-recourse) = total amount of gross interest-bearing debt of SoftBank Corp., Sprint, SVF, Arm, etc.

P13

Shareholder value

Table of Contents

Note: Before considering taxes unless otherwise stated. Based on data as of March 31, 2020. The information herein is based on assumptions made by the Company and is not indicative of
the price of SBG’s common stock or any securities it holds and should not form the basis of any investment decisions.

Message from Our CEO

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

011

Our Path to Increasing Shareholder Value

SoftBank Vision Fund
Equity value of holdings:¥2.6 trillion

SoftBank Vision Fund (the “Vision Fund”) began its operationsin 2017. With the committed capital as much as $98.6 billion,
the fund aims to maximize returns from a medium- to longterm perspective, through making large-scale investments
in high-growth-potential companies that are leveraging AI,
particularly in private companies valued at over $1 billion at
the time of investment, colloquially known as “unicorns.” Asof March 31, 2020, the fund held 88 investments at a cost
totaling $75.0 billion, with a fair value amounting to $69.6
billion. While its investment period ended on September 12,
2019, its life will last until November 20, 2029, in principle.
We participate in the Vision Fund as a limited partner. In
addition, SB Investment Advisers (UK) Limited, our wholly
owned subsidiary, acts as the manager of the fund and isentitled to receive management fees and performance feesfrom the fund.

Rajeev Misra
Board Director, Executive Vice President,
SoftBank Group Corp.
CEO, SoftBank Investment Advisers
See page 14 for details.

Equity value of holdings:¥2.6 trillion

Equity value of holdings:¥4.1 trillion(TSE: 9434)

Established in 1990, Arm is primarily involved in the businessof licensing semiconductor intellectual property (IP), including
the design of energy-efficient microprocessors and related
technologies. Shipments of Arm-based chips totaled 22.8
billion units in 2019 alone, for a cumulative total of 166
billion units. In fiscal 2019, the company’s overall share of its
related markets was 34%, with a 90% share of the mobile
application processor market and a 75% share of the invehicle infotainment and advanced driver-assistance systemprocessor markets.
Since our acquisition in September 2016, Arm has accelerated
its investments in R&D by hiring more engineers. Those R&D
investments are gradually bearing fruit. Pelion, a platform
launched in 2019 that enables seamless and secureconnection and management of IoT devices of all sizes anddata of all amounts, is one example.

SoftBank Corp., our main portfolio for businesses in Japan,
aims to further grow its core telecommunications businessunder its Beyond Carrier strategy, as well as expand its nontelecommunications business through the growth of Z
Holdings Corporation, which became a subsidiary in June
2019, and the creation of new businesses. As of March 31,
2020, the cumulative number of smartphone subscribers
under its three brands — SoftBank, Y!mobile, and LINE
Mobile — was 24.13 million, and the cumulative total offiber-optic service contracts was 6.39 million. In the nontelecommunications domain, Z Holdings Corporation acquired
ZOZO, Inc., an operator of an online apparel retailer, inNovember 2019, and is expanding new businesses throughcooperation with SBG and the Vision Fund’s portfolio
companies, among others.
SoftBank Corp. listed its shares in December 2018 andhas adopted a dividend policy with a consolidated payout
ratio as high as 85%. The annual dividend our wholly owned
subsidiary received from SoftBank Corp. in fiscal 2019was ¥254.6 billion. This
represents an important andstable source of cash.

Simon Segars

Ken Miyauchi

Board Director, SoftBank Group Corp.
CEO, Arm Limited

Board Director, SoftBank Group Corp.
President & CEO, SoftBank Corp.

See page 22 for details.

See IR website of SoftBank Corp. for details.

Note: Equity value of holdings is as of June 24, 2020. See page 11 for shareholder value.

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Our Path to Increasing Shareholder Value

Equity value of holdings:¥16.2 trillion

Equity value of holdings:¥3.6 trillion(NYSE: BABA, HKSE: 9988)(NASDAQ: TMUS)

Founded in 1999, Alibaba’s mission is to “make it easy to dobusiness anywhere.” Its businesses include core commerce(e-commerce), cloud computing, and digital media andentertainment. Possessing the CtoC marketplace Taobao andthe BtoC marketplace Tmall, the company boasts the world’s
largest gross market value of CNY 7.053 trillion, or $1 trillion,
for the year ended March 2020. Furthermore, Ant Small andMicro Financial Services Group Co., Ltd. (Ant Financial), in
which the company holds a 33% stake, provide the electronic
payment service Alipay. In September 2019, founder Jack
Yun Ma resigned as chairman, and the company is advancing
its growth strategy under the direction of his successor, CEO
Daniel Yong Zhang.
We initially invested in Alibaba in 2000. Since then, we
have built a close relationship with Alibaba over many
years through the establishment of joint ventures and joint
investments.

On April 1, 2020, SBG’s subsidiary Sprint and T-Mobile
US, Inc. completed a merger in an all-stock transactionthat gave rise to a new combined company T-Mobile US,
Inc. (“T-Mobile”). As of the completion of the merger, theownership of T-Mobile was approximately 43% for Deutsche
Telekom AG and approximately 24% for SBG, on a fullydiluted basis.
Subscribers of T-Mobile reached approximately 110
million (as of March 31, 2020),* closing in on the number ofsubscribers of Verizon Communications Inc. and AT&T Inc.
T-Mobile plans to invest $40 billion over the next three years
to build the world’s most advanced 5G network to cover theentire United States.
Subsequently, SBG announced on June 23, 2020 that it
would sell up to a maximum of 198,314,426 shares of the304,606,049 shares of common stock held in T-Mobile.

* The sum of T-Mobileʼs total brandedcustomers and Sprintʼs postpaid andprepaid wireless connections.

Daniel Yong Zhang
Chairman and CEO, Alibaba Group
Holding Limited
See IR website of Alibaba for details.

Mike Sievert
CEO, T-Mobile US, Inc.
See page 25 for details.

Note: Equity value of holdings is as of June 24, 2020. See page 11 for shareholder value.

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013

SoftBank Vision Fund: Investment Strategy

Built for Resiliencepany will succeed. Fortunately, the failures usually
surface early in a fund’s life. What is important isthat we learn from our mistakes – and don’t repeat
them. We have applied the lessons learned fromthese experiences to strengthen governance and ourinvestment processes.

Built for resilience
We believe our portfolio is built for resilience. The
Vision Fund is a long-term investment vehicle witha fund life up to 14 years.*5 In setting up the fund,
we anticipated multiple cycles. With nearly 10 years
Rajeev Misra
Board Director, Executive Vice
President, SoftBank Group Corp.
CEO, SoftBank Investment Advisers

remaining in the fund, we have the ability to look
past short-term situations and focus on generating
long-term, sustainable returns.
In September 2019, we completed the investment
period for the Vision Fund. As of March 31, 2020,

A pivotal year

and completed 25 follow-ons. We partially exited our

the remaining $13.4 billion of undrawn capital in thepositions in Guardant Health, Ping An Good Doctor,

Vision Fund will be used for follow-on investments

Fiscal 2019 was a pivotal year for SoftBank Invest-

Roivant Sciences, and Slack. Five more of our portfo-

and paying management fees, fund expenses, andment Advisers. While there were many successes

lio companies went public last year, and we believe

the preferred equity coupons. This dry powder isto celebrate, we also encountered significant chal-more will this year. We have also started investing

significant and gives our founders comfort that we

lenges, and we enter fiscal 2020 in the throes of theout of SoftBank Vision Fund 2,*4 with capital fromcan continue to invest, where the incremental invest-

COVID-19 pandemic.

SBG. At the end of fiscal 2019, we had already madements meet our risk-adjusted return threshold.

Since the inception of SoftBank Vision Fund (thesix new investments from the new fund.

“Vision Fund”), we have invested $81.0 billion*1

In fiscal 2019, the net asset value of the Visionin 91 companies* . We have also returned $10.7

Fund, excluding changes in capital from our inves-billion*3 back to our limited partners, including Soft-tors, fell by $14.8 billion. We exited our investments

We invest in sectors that we believe are enabling

Bank Group Corp. (“SBG”). Over the last 12 months,

in one Consumer company at a loss. It is a reality of

the next stage of the information revolution. The

we made investments in 20 new portfolio companies

investing in startups that not every portfolio com-

COVID-19 pandemic has accelerated the disruption

2

SoftBank Group Corp. ANNUAL REPORT 2020

*1 SBG’s consolidated basis*2 N umber of investments includes
investments in portfolio
companies made by the Vision
Fund and joint ventures withexisting portfolio companies
from fund inception to
March 31, 2020. It does notinclude hedges related to theinvestments.
*3 D istributions include realized
proceeds and preferred equity
coupon distributed or paid
to limited partners from fundinception to March 31, 2020.
They are net of return ofrecallable utilized contributions
that were simultaneously
retained and reinvested anddo not include the returnof recallable unutilized
contributions.
*4 A s of June 2020, SBG has
made capital contributions toallow investments by SoftBank
Vision Fund 2 (“SVF2”) in
certain portfolio companies.
The information included herein
is made for informational
purposes only and does notconstitute an offer to sell or asolicitation of an offer to buy
limited partnership interests inany fund, including SVF2. SVF2
has yet to have an externalclose, and any potential thirdparty investors shall receive
additional information related
to any SVF2 investments prior
to closing.
*5 F rom November 20, 2017
to November 20, 2029, in
principle, with two optional
one-year extensions

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Message from Our CEO

Who We Are

Impact of COVID-19

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

014

SoftBank Vision Fund: Investment Strategyof traditional businesses across industries, from com-

Social impact

Looking ahead

merce, to education, to fintech, to food delivery, tohealth care, to insurance, and beyond.

I also want to share some examples of how our

Downturns are challenging, especially given the un-

Businesses that can adapt quickly should be able

portfolio companies are advancing COVID-19 re-predictable nature of a pandemic. But difficult times

to recover better. With our encouragement, manylief efforts. These include contributing resources,

often build resilient companies and set them up forof our portfolio companies have been on the pathharnessing expertise, and innovating to help their

future success. We believe the accelerated adoption

to profitability since September 2019. They havecommunities respond to the virus’ impact.

of digital services brought about by COVID-19 will

prepared for the worst, refocused on their core busi-

For example, Vir Biotechnology and Roivant Scienc-

nesses, and eliminated underperforming initiatives.

es are working on disease prevention and treatment.

The Vision Fund is already the world’s largest

Some are also pursuing opportunities for consolida-

Others are providing critical medical supplies, donat-

collection of unicorns. Our portfolio companies aretion to further strengthen their positions.

disproportionately benefit our companies.

ed meals, transportation, and housing to frontline

changing the way billions of people live and work,

A strong balance sheet is also critical to surviving

health care workers. Flexport and Clutter are com-and are addressing some of the world’s most criticala crisis. While some have criticized our large checks,

bining their shipment and storage capacity to deliver

challenges. While there is much uncertainty in thetimes like this underline the benefits of partnering

essential goods to the frontline. REEF and Uber haveworld, we remain steadfast in our belief that visionary

with us. Unlike private equity-backed businesses, ourteamed up to better connect consumers with gro-founders leveraging data and AI will disrupt every partcompanies are not leveraged and most of them haveceries and personal goods. We are proud of theof the economy and create tremendous value in theenough capital to last for the next 18-24 months.

goodwill and ingenuity of the people working at ouryears ahead.

There is even more reason for encouragement in

portfolio companies.

countries that have emerged from lockdown, like

Earlier this year, we launched EMERGE, a virtual

China, Japan, and South Korea. 28% of our com-

program focused on accelerating diversity in techbined the Vision Fund and SoftBank Vision Fund 2*4

and entrepreneurship by providing unprecedented

investments are in China, and many of our companies

access to the SoftBank Group ecosystem. EMERGE

like Alibaba Local Services, Beike, ByteDance, Pingis an eight-week program that provides selected

An Good Doctor, and Zuoyebang, are seeing theirstartups with access to the tools and network they

services adopted far faster than anticipated. Evenneed to scale their business. Our belief is that un-companies negatively impacted by the pandemic arederrepresented founders often lack access to key

recovering. For example, DiDi’s China ride sharing

networks and mentoring to scale their businesses

business has already returned to last year’s levels.

and this program aims to address this gap and help

While there could be more challenges to come,bring more equality to tech and venture capital.

we have many reasons to believe that our portfolio
companies are well positioned.

SoftBank Group Corp. ANNUAL REPORT 2020

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SoftBank Vision Fund: In Focus

Investment results

Sector-leading valuation disclosure andtransparency

This process begins with collecting company information, meeting with investment teams, and then analyzing all the information before generating valuation

As of March 31, 2020, in the nearly three years following the initial close, the Vision Fund has invested in

The Vision Fund’s comprehensive and transparent

models. Valuations are then reviewed and approved

91 companies, including joint ventures, at a cumula-valuation process reflects industry best practice. Everyby the Valuation and Financial Risk Committee (VFRC)

tive acquisition cost of $81.0 billion.* In fiscal 2019,90 days, we measure the fair value of the fund’sof the investment manager, SB Investment Advisers

the fund realized $538 million* from several exits

investments. Each quarter we conduct a six-week(UK) Limited (“SBIA”), and submitted to the Board of(including partial) and had five portfolio companies

valuation exercise through our in-house valuations

Directors for final approval. At each fiscal year-end,going public. The fund distributed $10.7 billion — on

team, and semi-annually independent valuers eval-valuations are subject to a full financial statement

a cumulative basis — back to its limited partners, fromuate the portfolio separately and in parallel to our

audit by the fund’s independent auditor. This work isboth realized exits and portfolio financings.

internal team.

supported by rigorous parallel processes carried out by

1

1*1 SBG’s consolidated basis*2 C alculated as a percentage of
total portfolio fair value as ofMarch 31, 2020
*3 As of March 31, 2020
*4 T here can be no assurance
that the operations and/or
processes of SBIA and the
Vision Fund described herein
will continue throughout thelife of the Vision Fund or any
successor fund managed by
SBIA, and such processes andoperations may change.

the fund’s independent valuers.

Portfolio
The Vision Fund has invested in diverse geographies

Valuation Process*4

and sectors. By geography, 36% of the portfolio is1

held in the Americas, 18% in EMEA, and 46% held

Quarterly SBIA Valuation Process

in Asia.*2 We have invested in a range of businessmodels and technologies, from foundational techno-

Data
Collection

logical infrastructure that we believe the next gener-

Management Callswith Portfolio
Companies &Investment Teams

Financial Model
Updates & Draft
Valuations Result
Reviews

Business
Review
Memos

Final
Reviewation of tech companies will rely on, to tech-enabledconsumer services that are providing immense value
for consumers.
Since the inception of the Vision Fund, eight portfolio companies have publicly listed, reflecting ourprogress to date as a relatively new fund investing

VFRC
Review

2
Semi-Annual Independent Valuers Valuation Process
Data
Collection

Management Callswith Portfolio
Companies &Investment Teams

SBIA
Board
Review

Audit/Review
by Fundʼs
Independent
Auditor

Valuations Result Reviews
and Discussions

in late stage companies. Each one demonstrates theappeal of our portfolio companies to the public markets and provides valuation transparency. Indeed, theeight public companies represent an additional $10.1
billion*3 of available liquidity on our balance sheet.

SoftBank Group Corp. ANNUAL REPORT 2020

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SoftBank Vision Fund: In Focus

The Vision Fund governance

Governance framework

Fund and manager governanceOur governance framework is focused on:

There are three layers of governance to SBIA and the*5 As of June 2020

Governance is critical to the long-term success of the• Policy and standard setting

Vision Fund’s activities that together form a compre-

Vision Fund. Three objectives underpin our focus on• Legal and regulatory compliancehensive and transparent governance function.

strong governance: overning bodies, including committees and•G•O ur fiduciary duty to the fund’s limited partners,
which includes SBG•C ompliance with laws and regulations in theFirst, the Board of Directors of SBIA, has theoverall responsibility for management of the fund.

Board-level roles• Accountability and transparency

The Board oversees activities of SBIA and monitors• Risk and performance management

compliance with its obligations to the fund and thelimited partners. Decisions related to the manage-

jurisdictions in which SBIA operates•A desire to go beyond what is required in each

While governance standards are high in each juris-

ment of the fund are made by certain committees

location and align with the best practice indiction in which we operate in, we adopt the highestof SBIA, including the Investment Committee, themarket standards. We strive for the best industry

standard and apply it consistently across our global

Conflicts Committee and the Valuation and Financial

practices around the world.

organization. This ensures uniform excellence in our

Risk Committee.

culture of compliance, accountability, and transparWhile our investing activities are the most visible

Second, the Vision Fund’s general partner provides

ency around the world.

additional layers of oversight. It is responsible for

Five facets of SBIA governance framework*4

The Vision Fund governance*4

part of what SBIA does, behind the scenes, our firmhas become a sophisticated global investment manager with robust teams and processes focused on
governance, accountability, and transparency.
SBIA is regulated by five different regulatory bodies

Legal &
Regulatory
Compliance

Policies &Standards

based on its registrations.*5 The result is global and1

locally applicable policies and procedures with mandatory requirements across the organization — fromcompliance to risk to audit — just to name a few.
More importantly, however, we strive to go further

5
Risk &
Performance
Management

The Investment Manager’s Board of Directors
oversees the Fund’s activities & monitors compliance

Investment Manager (SBIA)

2

GOVERNANCE
FRAMEWORK

4GP Board of Directors & Investor Advisory
Board provide additional layers of governance

General Partner (GP)Investment Committee

GP Board of Directors

3
Board of Directors& Committees

Conflicts Committee

Limited Partners (LP)than merely complying with the requisite laws andregulations.

SoftBank Group Corp. ANNUAL REPORT 2020

Valuation & Financial
Risk Committee

Accountability &Transparency

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SoftBank Vision Fund: In Focus

Impact of COVID-19

appointing the investment manager, approving theportfolio company CEOs, limited partners, and SBG

fund’s financial statements, and ensuring complianceequity investors came together to network, createby the general partner and the Vision Fund withvalue, and share best practices. It was an incredibly

While our portfolio companies are prepared for

applicable legal and regulatory obligations in Jersey.

productive showcase of our ecosystem.

more challenges to come—depending on how theThird is the Investor Advisory Board (IAB), which

In SBIA’s Operating Group, our team is focused on

is comprised of certain limited partners who are notproviding operational support to our portfolio com-

our portfolio may mean our recovery is faster thanaffiliates of the general partner or the investment

panies and is leveraging the SoftBank Group ecosys-

expected. As of June 2020, global markets are deal-

manager. It reviews and provides consent on matters

tem for value creation opportunities. In addition, ouring with significant economic uncertainty. Looking

including conflicts of interest and related party trans-

Capital Markets team is working to help our portfo-

ahead, however, we believe the Vision Fund is wellactions. The investment manager, SBIA, is also re-lio companies strengthen their balance sheets andpositioned for several different economic scenarios.

quired to provide confirmation to the IAB on matters

optimize investment returns for our public securities.

pandemic unfolds—we believe the resilience ofsuch as compliance with laws and fund agreements.
SBIA also has clear governance at the organiza-

Culture and people

tional level. The Board of Directors also ensures SBIA
operates within the applicable regulatory framework.

At SBIA, we have worked hard to create an envi-

Multiple committees oversee critical functions ofronment that celebrates the diversity of knowledge,

SBIA, including the Operating Committee and thebackground, and experience from across our global

Conduct Committee, for example.

business. Our leadership team has backgrounds
as CEOs, founders, and operators. To embed our

A powerful ecosystemcultural principles of teamwork, integrity and impact
throughout our firm, we implemented a comprehen-

A highlight of fiscal 2019 was the progress we madesive program, which includes culture workshops andbringing our portfolio leadership together to con-coaching, changes to hiring, review and compensa-

nect with one another. In September 2019, we held
our first So-zo- Summit in Pasadena, California. Ourtion practices and quarterly surveys to measure our

SoftBank Group Corp. ANNUAL REPORT 2020

progress.

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

018

SoftBank Vision Fund: In Focus

Economy of SoftBank Vision Fund
The Vision Fund is managed by SBIA, SBG’s wholly owned and independent
subsidiary. SBG also participates in the Vision Fund as a limited partner.
As of March 31, 2020, the committed capital of the Vision Fund totaled

SBIA is entitled to receive management fees and performance fees, eachof which is measured by reference to the investment activities of the Vision*6 Excludes $5 billion earmarked
for the incentive scheme
related to the Vision Fund.

Fund. Management fees to SBIA are calculated by multiplying 1% per annum to equity contributions.

$98.6 billion. Of that, SBG has committed $28.1 billion.*6
Contributions by the limited partners are classified as “Equity (perfor-

Once the Vision Fund exits or monetizes an investment, residual proceeds
are distributed as illustrated below.

mance-based distribution)” and “Preferred Equity (fixed distribution)”
depending on the terms and conditions of distribution. Preferred Equity isprioritized over Equity with regard to distribution and return of contribution.
As a limited partner, SBG contributes to Equity.

Capital structure

Distribution waterfall

As of March 31, 2020

$98.6bn$40.0bn$58.6bn$28.1bn*6

Payment of Preferred
Equity Coupons

Preferred equity (fixed distribution)

Preferred equity investors• A fixed rate of 7% is distributed in proportion to theinvestment principal, regardless of the investment
performance• P rioritized over equity upon distribution

1

Return of Preferred
Equity Contributions
Preferred equity investors

2

Equity (performance-based distribution)

Return of Equity
Contributions
Equity investors3• Distribution to limited partners is fully dependent on
investment performance•H as lower priority during distribution, compared withpreferred equity interest

Payment of Preferred
Return on Equity
Equity investors

4

Payment of
Performance Fees

Payment of
Remaining Gain

SBIA

Equity investors

Return of Contributions & Hurdle Return(48% of equity)5

SBG has committed to equity interests

Sharing Gains Above Hurdle

Committed capital
Notes: 1. Fixed distribution is subject to the terms and conditions of the Vision Fund 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 the Vision Fund fund documents.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

019

SoftBank Vision Fund: Portfolio Companies

See page 21 for a complete listof SoftBank Vision Fund portfolio
companies.

As of March 31, 2020

8 Public Listings Since Inception

Enterprise

NYSE: WORK

Slack is a global technology company that has
transformed business communication. It isbuilding the leading channel-based messaging platform, used by millions to align theirteams, unify their systems, and drive theirbusinesses forward. It
was founded in 2009
by Stewart Butterfield
and is headquarteredin the U.S.

NYSE: OCFT

FintechFintechHKSE: 6060

OneConnect is a Chinese company building
technology platforms to connect financial
institutions to each other, and was founded in2015 by Ping An Financial Technology.
IPO date: Dec 13, 2019

NASDAQ: TXG

ZhongAn Insurance is a Chinese online insurance company offering an ecosystem of tech
powered insurance products to customers,
and was founded in 2013 by Jiang Xing, Ant
Financial, Tencent, and PingAn Insurance.
IPO date: Sep 28, 2017

Health Tech

10x Genomics is an American life science
technology company building products tointerrogate, understand and master biology
to advance human health, and was foundedin 2012 by Serge Saxonov, Ben Hindson, andKevin Ness.
IPO date: Sep 12, 2019

IPO date: Jun 20, 2019** Slack went public via a
direct listing.

CEO: Stewart Butterfield

Health Tech

NASDAQ: GH

Guardant Health is a leading precision oncology company focused on helping conquer
cancer globally through use of its proprietary
blood tests, vast data sets, and advanced analytics. The company was founded in 2013 by
Helmy Eltoukhy andAmir Ali Talasaz and isheadquartered in the
U.S.

CEO: Ye Wangchun

HKSE: 1833

Health Tech

CEO: Jiang Xing

NASDAQ: VIR

CEO: Serge Saxonov

Health TechNYSE: UBER

Transportation & Logistics

Ping An Healthcare and Technology Company
Limited is a leading one-stop healthcare ecosystem platform in China, combining “mobile
health + AI technology”. The company was
founded in 2014.

Vir Biotechnology is an American biotechnology company combining immunologic
insights with technology to treat and prevent
infectious diseases, and was founded in 2017by George Scangos.

Uber is an American multinational transportation technology company, offering services
that include on-demand access to ride hailing,food delivery, and electric bikes and scooters.
The company was founded in 2009.

IPO date: May 4, 2018

IPO date: Oct 10, 2019

IPO date: May 10, 2019

IPO date: Oct 3, 2018

CEO: Helmy Eltoukhy

CEO: Fang Weihao

CEO: George Scangos

CEO: Dara Khosrowshahi

Note: The information is presented solely for illustrative purposes, has been selected in order to provide examples of SoftBank Vision Fund investments as of March 31, 2020 that have been publicly listed, and do not purport to be a complete list thereof. Individual investors’ results mayvary. References to specific investments should not be construed as a recommendation of any particular investment or security.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

020

SoftBank Vision Fund: Portfolio Companies
As of March 31, 2020; excludes exited investments

Cumulative acquisition cost of investments: $75.0 billion*
Total fair value of investments: $69.6 billion*
Total of 88 Investments

Consumer

FintechReal Estate & Construction

Brainbees Solutions Private Limited (First Cry)

Creditas Financial Solutions, Ltd.

CLUTTER INC.

Brandless, Inc.

Etechaces Marketing and Consulting Private Limited (Policybazaar)

Katerra Inc.

ByteDance Ltd.

Greensill Capital Pty Ltd.

Katerra Middle East Inc. (Katerra’s affiliate)

Kabbage, Inc.

OpenDoor Labs, Inc.

OakNorth Holdings Limited

The We Company

One97 Communications Limited (PayTM)

WeWork Greater China Holding Company B.V (The We Company’s affiliate)

OneConnect Financial Technology Co., Ltd.

WeWork Asia Holding Company B.V (The We Company’s affiliate)

Pollen, Inc. (C2FO)

WeWork Japan GK (The We Company’s affiliate)

Grofers International Pte. Ltd.

VNLife Corporation Joint Stock Company

Urban Compass Inc. (Compass)

Oravel Stays Private Limited (OYO)

Zhongan Online P&C Insurance Co., Ltd.

View Inc.

OYO Hotels Japan (OYO’s affiliate)

SVF Zen JVCo (Singapore) Pte.Ltd. (Zhongan’s affiliate)

Coupang LLC
Esquared Capital Limited (Klook)
Fanatics Holdings, Inc.
GetYourGuide AG

1 other investment

OYO Technology & Hospitality (China) Pte. Ltd. (OYO’s affiliate)
Plenty United Inc.

Frontier Tech

Transportation & Logistics

Arm Limited

ANI Technologies Private Limited (Ola)Brain Corporation

APPARATE USA LLC (Uber ATG)

CloudMinds Inc.

Auto1 Group GmbH

Energy Vault, Inc.

Cambridge Mobile Telematics Inc.

Enterprise

Fungible Inc.

Delhivery Private Limited

Automation Anywhere, Inc.

Improbable Worlds Limited

Doordash, Inc.

Light Labs, Inc.

Fair Financial Corp.

Cohesity, Inc.

Petuum Holdings Ltd.

Flexport, Inc.

Cohesity APJ Pte. Ltd. (Cohesity’s affiliate)

Zymergen, Inc.

Full Truck Alliance Co. Ltd

PT Tokopedia
Zuoyebang Education Limited
1 other investment

Globality, Inc.

1 other investment

SVF TRUCK (SINGAPORE) PTE. LTD. (Full Truck Alliance’s affiliate)
Getaround, Inc.

GPCY Holding (Gympass)
MapBox Inc.
OSIsoft LLC
Slack Technologies, Inc.

GM Cruise Holdings LLC

Health Tech

GRAB HOLDINGS INC. (Grab)

10x Genomics, Inc.

Guazi.com Inc.

CollectiveHealth, Inc.

Local Services Holding Limited (Alibaba Local Services)

Good Doctor Technology Limited

Loggi Technology International

Guardant Health, Inc.

Nauto, Inc.

Guardant Health AMEA, Inc. (Guardant Health’s affiliate)

Nuro, Inc.

HealthKonnect Medical and Health Technology Management Company Limited(Ping An Medical and Healthcare)Rappi Inc.

Ping An Healthcare and Technology Company Limited (Ping An Good Doctor)

Uber Technologies, Inc. (Uber)

Relay Therapeutics, Inc.

Xiaoju Kuaizhi Inc. (DiDi)

Roivant Sciences Ltd.

Zume, Inc.

Reef Global Inc. (formerly ParkJockey)

Vir Biotechnology, Inc.
* SBG’s consolidated basis
Note: SoftBank Vision Fund 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. As of March 31, 2020, SoftBank Vision Fund has exited its entire
interests in Flipkart, NVIDIA, and other undisclosed investments.
SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

021

Arm: Business Strategy

Investing in Technology for Smartphones, 5G Networking, and Servers
Arm business strategy
In our fast-paced world, new applications, device categories and markets are continually emerging, manyof which require advanced semiconductors to provide
their capabilities. Since being acquired by SoftBank
Group Corp. in 2016, Arm has significantly increased
investment in R&D to ensure that it can develop technology suitable for all these new opportunities.
Arm’s strategy is therefore to:• Maintain market position in areas where it isalready strong, such as smartphones, consumer
electronics, and embedded computing;• Increase royalty per chip by increasing value

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

where it can provide more technology (graphics
processors and machine learning processors) ormore valuable technology (one that increases

Leading the world in semiconductor
technology

Arm business model

performance and security);• Establish market leadership in emerging technol-

Arm licenses processor designs to semiconductor

ogy areas including autonomous vehicles, IoT,

Arm is a global leader in the development of semi-

companies that incorporate the technology into theirand augmented reality headsets;

conductor technology and is central to the pervasive

computer chips. Licensees pay an up-front fee to gain

• Introduce new business models to change com-computing that is shaping today’s connected world.

access to our technology, and a royalty on every chip

petitive landscape, for example, directly licensing

Arm’s processor technology is the world’s most widelythat uses one of our technology designs. Typically,

its technology to OEMs and cloud companies; andlicensed and deployed semiconductor design of its

the royalty is based on the selling price of the chip.

• Create new revenue streams from IoT-managed

kind and is used in virtually all smartphones, theEach Arm design is suitable for a wide range ofservices such as device management, connectivi-

majority of tablets and digital TVs, and a significant

end applications and can be reused in a variety of

proportion of all chips with embedded processors. As

chip families to address multiple markets. Each new

new markets for electronics emerge, they are often

chip family generates a new stream of royalties. An

based on Arm’s advanced processor designs, including

Arm design may be used in many different chips and

IoT, self-driving vehicles, and industrial automation.

may ship for more than 25 years.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Arety management, and data management.

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

022

Arm: Business Strategy

Investing in growth markets

built-in machine learning capability. They will learn

as base stations, switches, and routers, have limited

how you use the smartphone and how that may

capacity around power, space, and form factor, andArm is investing in technologies, markets, and indus-change with the time of day or location, they will

are facing increasing demands to simultaneously

tries that are going to transform the way we all live

be able to understand your voice and follow spoken

handle a wide range of workloads from HD video

and work.

instructions and gestures, and they will be able tostreams to multitudes of events from IoT applica-

anticipate what you will need next based on yourtions. Similarly, data centers need to provide services

Smartphones will become smarter and morepast pattern of behavior and what others are also

to increasing numbers of end users, while delivering

capable.

doing with their devices.

a better level of cost and power efficiency. Today, we
stream more data from the cloud (often as docu-

Although the number of smartphones sold eachyear may not be increasing, the intelligence of each

Networking infrastructure and servers will

ments, photos, video, and music) than we upload. In

smartphone is growing with every generation, andbecome more scalable and energy efficient.

the future, data being uploaded from IoT devices will

this is creating opportunities for Arm to provide both

Demands from billions of 5G handsets and IoT devic-

overtake download data. This will place more chal-more technology and more intelligent technology to

es will place more challenging requirements on oper-

lenging requirements on networks and data centers,

this important market. Future smartphones will haveators and equipment vendors. Network nodes, suchcreating opportunities for Arm technology.

Market share

Uploading data from IoT devices will overtake download data; requiring a redesign of global
FY2019

Mobile application processors*2

Networking equipment

Data center / cloudIoT application processor

In-vehicle infotainment and driver assistance

SoftBank Group Corp. ANNUAL REPORT 2020

*1 Based on Arm’s internal
modeling and analysis of themarkets*2 Includes processors for
smartphones, tablets, andlaptops> 90%

FY2028*1

networks and creating opportunity for Arm’s technology

> 90%

32%

> 65%

5%

> 25%

90%

> 90%

> 75%

> 90%

Table of Contents

Message from Our CEO

5G
Critical Data

MassiveAmountsof Data

Trillions of Device

Edge

Cloud Data
Centers

Edge
Edge

Analyze & StoreWho We Are

Our Path to Continued Growth

Filter & React

Management: The Foundation Supporting Our Growth

Local Decisions

Financial Section

Corporate Information

023

Arm: Business Strategy

Everything will become connected, creating an
Internet of Things.

announcements are listed in the following table.

investment in R&D).

For cloud area, Arm-based “Fugaku” ranked asWith an expectation that Arm will grow in the

Already, devices that used to be merely electrical areworld’s fastest supercomputer in “TOP500,” a global

long term, fiscal 2020 remains an important year for

now becoming smarter and connected with digitalranking based on calculation speed of supercomput-

Arm’s strategic progress. Arm is continuing to invest

electronics: streetlights, elevators, parking meters,

ers, in June 2020. This award winning demonstrated

in R&D, and in 2020, Arm expects to deliver multi-

thermostats, etc. This is also happening in factories

how Arm’s customers can develop the most advanced

ple new processors and related technology to ourand warehouses where industrial automation istechnology.

customers, and to start developing the next gen-making systems more flexible and more efficient.
Most of these digital connections are based on Arm

eration of technologies. In addition, some telecom

Near-term challenges

companies are still intending to install or expand

technology, and over time we expect that there will

their 5G networking infrastructure which will drive abe billions of Internet-connected devices. All of these

Although Arm is focusing on investing for long-term

future upgrade cycle of smartphones. This year may

will need to securely connect to the Internet and to

growth, we cannot ignore near-term market condi-

also lead to changes in home-working, learning andbe managed. This is creating opportunities for newtions. Due to the outbreak of COVID-19, consumer

interacting; leading to new increased investment inproducts and services, and Arm intends to invest in

spending and enterprise investment is likely to besmall office networking and mobile technology, andthis area, building on the strength of its very highlower, hence, reduction in GDP forecasts is expect-

the infrastructure needed to connect us all to the In-

market share in end devices.

ed. This may reduce royalty revenue (driven by chipternet; helping to make society and enterprises moresales) and license revenue (driven by our customers’

robust against any disruption.

Progress in fiscal 2019
In fiscal 2019, Arm steadily increased investment in
R&D, increasing its headcount by another 751 employees, the majority being engineers. In addition, thefirst new technologies, that were only started after theacquisition by SoftBank Group Corp., were delivered
to customers, creating new revenue streams. Moregenerally, fiscal 2019 was a challenging year for thesemiconductor industry, with relevant industry revenues
increased only 0.6% year on year.
On the other hand, Arm made good progressin technology development for fiscal 2019. Someof Arm’s technology developments and customer

SoftBank Group Corp. ANNUAL REPORT 2020

MarketArm’s technology development progress for fiscal 2019

Mobile application
processors*2

Announced a family of processors which will help provide AI and 5G capabilities to the next
generation of smartphones due in 2020

Networking
equipment

Announced Project Cassini, an industry initiative to ensure a cloud native experience across a diverseand secure edge ecosystem

Data center / cloud

Amazon Web Services Inc. announced that the first generation of Arm Neoverse processors is being
used in their own-built Graviton2 server chips

IoT application
processor

Announced a new feature for embedded computing, Arm Custom Instructions , which allows
chipmakers to optimize an Arm CPU to increase the performance for specific IoT and otherapplications

In-vehicle
infotainment anddriver assistanceEstablished Autonomous Vehicle Computing Consortium (AVCC) with partners from the automotive
industry to create technology standards that will help accelerate the arrival of self-driving cars

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

024

Merger of Sprint and T-Mobile and the Sale of T-Mobile Shares

Track record of investments in Sprint*3¥3.6 trillion
On April 1, 2020, Sprint and T-Mobile US, Inc. com-will be as follows. In fiscal 2019, SBG had deter-“Merger”).*1 On that date, Sprint ceased to be amined that completion of the Merger was “highly

subsidiary of SBG and the new combined company

probable” as of March 31, 2020 and accordingly

T-Mobile became an equity method associate of SBG

Sprint’s net income and loss was presented as “netwith an approximately 24% shareholding on a fully

income or loss from discontinued operations,” sepa-

diluted basis.

rate from continuing operations in the consolidated

Subsequently, SBG announced that it would sell up

income and loss for fiscal 2018 were also retrospec-

common stock held in T-Mobile (the “Sale”) on June

tively revised and presented as “net income or loss

23, 2020.*2 On June 26, 2020 (Eastern Time), eachfrom discontinued operations.” In the consolidatedof the transactions under the Sale was completed bystatement of financial position for fiscal 2019, assets

T-Mobile for the public offering and private placement

and liabilities of Sprint were presented as assets andthrough the trust regarding T-Mobile shares in theliabilities held for sale.

equity method associates.
In light of the Sale, the return on SBG’s investment in¥2.1 trillion¥1.9 trillion

statement of income for fiscal 2019. Sprint’s net

to 198,314,426 shares of the 304,606,049 shares ofU.S., resulting in the exclusion of T-Mobile from SBG’s

Borrowings

The impact on SBG’s consolidated financial results

pleted a merger through an all-stock transaction (theIn fiscal 2020, upon completion of the merger
on April 1, 2020, SBG expects to record a gain of
approximately ¥750 billion (before taxes) relating toSprint is presented as follows. Sprint’s acquisition costloss of control of Sprint under net income from dis-

totaled ¥2.1 trillion, of which ¥1.65 trillion was covered

continued operations in our consolidated statement

by debt, and our invested capital (i.e., the equity valueof income for the first quarter.

portion) was ¥0.4 trillion. The overall value of our hold-In addition, as a result of the completion of theing in T-Mobile as of June 24, 2020, as estimated basedtransactions related to the Sale and the consequenton the terms of the Sale, totaled ¥3.6 trillion. Assum-

removal of T-Mobile from SBG’s equity method asso-

ing that the amount of debt had remained intact, we

ciates SBG expects to record a gain of approximately

would have generated a nearly five-fold return, from¥600 billion (estimated amount) associated with theacquisition cost of ¥0.4 trillion to ¥1.9 trillion, in aboutsale of T-Mobile shares in our consolidated statement

seven years, and the internal rate of return (IRR) on theof income for the first quarter.

*1 See page 234 for details of
the Merger.
*2 S ee page 238 for details of
the Sale.

Equity
Value

IRR
25%

¥0.4 trillion
Acquisition cost

As of June 24, 2020*3	Current (as of June 24, 2020) = (a) equity value of common stock of T-Mobile to be sold + (b) equity value of theshares subject to call options + (c) equity value of shares that are not subject to sale or call options + (d) fair value ofthe right to have common stock of T-Mobile (48,751,557 shares) re-issued to SBG.
(a) E quity value of common stock of T-Mobile to be sold: equity value of the shares to be sold ($20,115 million)
as announced in “Number of Shares to be Transferred and Purchase Price for the Transfer of Shares of Equity
Method Associate (T-Mobile US, Inc.),” dated June 24, 2020.
(b) Equity value of shares subject to call options: calculated by multiplying the number of shares subject to call
options that Deutsche Telekom AG to receive (101,491,623 shares) by closing price of common stock of T-Mobile
as of June 24, 2020.
(c) E quity value of shares that are not subject to sale or call options: calculated by multiplying the number of shares(4,800,000 shares) held by SBG at April 1, 2020 that are not subject to (a) or (b) mentioned above, by closing
price of common stock of T-Mobile as of June 24, 2020.
(d) Fair value of the right to have common stock of T-Mobile (48,751,557 shares) re-issued to SBG by T-Mobile forno additional consideration, if the trailing 45-day volume-weighted average price per share of T-Mobile common
stock is equal to or greater than $150 at any time during the period of April 1, 2022 to December 31, 2025.
	Expenses ($300 million) to be paid to T-Mobile in relation to execution of sale and related transaction are taken into
account. Acquisition cost excludes acquisition-related expenses. Borrowings refer to the amount of borrowings at
the time of acquisition in JPY (¥1.65 trillion). IRR refers to equity IRR. SBG has agreed to indemnify T-Mobile and its
subsidiaries against (i) any monetary losses arising out of or resulting from certain specified matters and (ii) the loss ofvalue to T-Mobile and its subsidiaries arising out of or resulting from cessation of access to spectrum of Sprint or its
subsidiaries under certain circumstances, subject to certain limitations and qualifications. Based on currently available
information, SBG believes that its indemnification liability will not likely exceed $200 million in the aggregate (taking
into account the probability of indemnification claims and cost sharing with T-Mobile applicable to the first $200
millions of certain losses). Such indemnification liability is excluded from the IRR calculation. $1 = ¥106.53.

equity value portion would be 25%.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

025

Message from Our CFO

Financial Management Adapting to Any Change
Our portfolio consists of quality assets

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

Our strength stands out in face of the
COVID-19 pandemic
As we enter 2020, the outbreak of the COVID-19
led to city lockdowns and border restrictions in many
countries. These movements disrupted the flow ofpeople and goods and cast a heavy shadow overworld economy. Global stock markets plunged andeconomic environments remain shrouded in uncertainty. Under these circumstances, some people believe that we, as an investment company, have been
seriously affected by the adverse effects of market
conditions, but the reality is different. To begin with,an investment company like us can engage in cash

SoftBank Group Corp. ANNUAL REPORT 2020

management that allows liquid cushion by reducing
new investments when the environment is harsh.
As the environment picks up, we can resume investments with close scrutiny as to when to take theoffensive. Our portfolio is made up of quality companies that are less vulnerable to the impact of the pandemic. This makes us stand out from the rest. The
equity value of holdings of SBG has risen to ¥30.0
trillion,*1 which is more than four times its net debt.
In terms of liquidity, SBG maintains cash reserves of¥3.0 trillion,*2 more than sufficient to redeem bonds
for the upcoming two years. I would like to highlighthere that SBG is well positioned to firmly maintain ahigh degree of financial safety.

Table of Contents

Message from Our CEO

Who We Are

As a holding company, SBG is not directly engaged
in business operation. We strive to maximize shareholder value, which is calculated as the equity valueof holdings less the net debt of SBG, while overseeing
Group companies including subsidiaries as an investment portfolio. The total equity value of the portfolio
currently stands at ¥30.0 trillion.*1 After deducting
net debt, shareholder value comes in at ¥23.3 trillion,*1 far exceeding SBG’s market capitalization. The
quality of the asset is also important. Our portfolio is
made up of companies that have a competitive edge
over peers in each sector, with solid business models
centered on telecommunications and e-commerce.
It includes such companies as Alibaba, SoftBank
Corp., and T-Mobile, whose shares are trending firmly
compared with key stock market indexes. For example, Alibaba’s business model, which revolves aroundthe provision of such wide-ranging services as online
shopping and cashless payments, meets consumer demand in shelter-in-place lifestyle. Telecommunications
operators SoftBank Corp. and T-Mobile boast stablecorporate values based on their indispensable roles
as today’s social infrastructure. As for Arm, in an era
in which IT is recognized as integral to people’s lives,
we believe that IC chips powered by Arm technology
are becoming increasingly valuable due to mounting
demand for contactless services.
Thus, as an investment company, SBG is capable ofcontrolling direct damage from the market conditions,managing a portfolio that demonstrates its strengths
even in a challenging environment.

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

See page 11 “How We Think
About Shareholder Value” fordetails on shareholder value.
*1 As of June 24, 2020*2 A
 s of May 18, 2020

Financial Section

Corporate Information

026

Message from Our CFO

Adhering strictly to a decade-old policy for
total financial security

important financial indicator. LTV is calculated as
the net debt of SBG divided by the equity value ofholdings. Our policy is to keep LTV below 25% innormal times, with an upper threshold of 35% evenin times of emergency. We believe that keeping LTV
below 25% in normal times is a highly safe standard because even if share prices were to halve, LTV
would increase only to 50%. SBG’s most recent LTV
came in at 14%,*2 well below the guideline of 25%,
trending at an extremely safe level in our view.
Another important financial indicator is cash position. SBG has set the policy of maintaining a cash
position that is sufficient to redeem bonds for atleast the coming two years. This not only helps allay

SBG is also distinguished by its extremely solid
financial position. Our financial policy is grounded
in lessons learned from the financial crisis in 2008.
Despite the ample cash position at that time, ourheavy indebtedness weighed down our reputation in
the crisis that could be called a financial depression.
This experience taught us the necessity of clearly
articulating our financial policy that would engenderconfidence in both the stock and bond markets.
As a strategic investment holding company, SBG
has set the loan-to-value (LTV)*3 ratio as its mostMajor portfolio stocks outperforming indexes

concerns over bond redemption, but also demonstrates that we, should the bond market temporarilystop functioning, would be able to redeem bonds
through to the market’s recovery. SBG currently
maintains an ample cash position of ¥3.0 trillion,*2
which is more than sufficient to cover the bonds
due for redemption over the next two years. Taking
also into consideration the steady stream of dividend
income from subsidiaries, we would argue that our
financial safety is assured.
This financial policy, which we have adhered tofor more than a decade since the financial crisis in
2008, has remained in full force during the recent
COVID-19 pandemic. Given its incomparably stronger

Our approach to Loan to Value (LTV)*3

140+38%: T-Mobile

Net debt of SBG ÷ Equity value of holdings
After adjusting for asset-backed finance and other items

130¥28.5 trillion120

< Adjustment on asset-backed
finance and other items+13%: SBG

110

¥25.25+7%: Alibaba

100

LTV

trillion(As of May 18, 2020)

14.2%-4%: SoftBank Corp.
-5%: Nikkei 225-11%: Dow Jones Industrial Average

9080¥6.8 trillion70

< Adjustment on asset-backed
finance and other items

60*3 LTV is calculated as follows:
LTV = Net debt ÷ Equity value ofholdings
Net debt: Excludes (a) to (c) below(a)	The sum of the amountequivalent to the outstanding
margin loan backed by Alibaba
shares and the financial
liabilities relating to the variable
prepaid forward contract (collar
contract) using Alibaba shares(entered into in November2019).
(b)	The sum of the amount (before
deducting cost) procured
through several prepaid forward
contracts using Alibaba shares,
including a forward contract,a floor contract, and a collar
contract. The contracts wereentered into in April and May
2020.
(c)	The sum of the amountequivalent to the outstanding
margin loan backed by SoftBank
Corp. shares.
Equity value of holdings: Excludes(d) to (f) below.
(d)	The sum of the amountequivalent to the outstanding
margin loan backed by Alibaba
shares and the amount tobe settled at the maturity ofthe variable prepaid forward
contract (collar contract) using
Alibaba shares (entered into
in November 2019) calculated
based on the share price of
Alibaba.
(e)	The sum of the amount tobe settled at the maturity ofthe several prepaid forward
contracts using Alibaba shares,
including a forward contract,a floor contract, and a collar
contract, calculated based on
the share price of Alibaba. The
contracts were entered into in
April and May 2020.
(f)	The sum of the amountequivalent to the outstanding
margin loan backed by SoftBank
Corp. shares.

¥3.58
50

1/1

1/15

1/29

2/12

2/26

3/11

3/25

4/8

4/22

5/6

5/20

6/3

trillion

6/17 (Month / Day)

Equity value ofholdings

As of June 24, 2020. 100 = the closing price as of December 31, 2019

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued Growth

Net debt

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

027

Message from Our CFO

grasp the actual status of operations. To address theseconcerns, I believe sufficient disclosure and in-depth
explanations are essential. For equity investors, it isvital that ample disclosure of information and dialogue would bring about investors’ conviction about
the value of our assets and the performance of ourinvestment activities. Our efforts include disclosureof quarterly investor briefing materials for detailed
information on accounting, finance, and SoftBank
Vision Fund. Furthermore, we place equal emphasison dialogue with bond investors as we do with equity
investors. Trusting relationships built through dialogue
are the key to flexible fund procurement as and whenneeded. Backed by these relationships, we will continue to issue products that are highly satisfactory tobond investors.

Ideally, an investment company’s financial operations
should focus on an approach whereby investment
assets are sold at the right time and the proceeds are
reinvested when new opportunities arise. However,investing in and selling assets require two entirely
different decisions, which cannot always be madeat the most desired time. Fundraising is therefore ameans through which to fill any funding gap andultimately to increase the efficiency of investments.
Continued and stable fund procurement provides
us with the flexibility to undertake and recoup an
investment at the right time.
In fiscal 2019, our fundraising activities made further progress. In addition to borrowings from financial
institutions and the issuance of corporate bonds, SBG
procured funds through asset-backed financing, amethod that employs shares for repayment, such as
shares of Alibaba and SoftBank Corp. Unlike conventional financing, this approach does not impair SBG’s
credit and has been widely regarded by investors. As
we flexibly procure fresh funds and refinance in lightof the near-term business environment, investors havecommented that our fast pace makes it difficult to

Fiscal 2020 financial policy

Cash position and bond redemption schedule (As of May 18, 2020)

financial position than that during the financial crisis
in 2008, I believe that SBG stands head and shoulders above any other company. I have total confidence in our financial position without any concern
amid the pandemic.

Communication with the market is criticalto the stable fund procurement

Keep LTV below 25% in normal times,
with an upper threshold of 35%
even in times of emergency
Maintain a cash position coveringbond redemptions for at least
the next two years
Secure sustainable distribution anddividend income from SoftBank Vision Fundand other subsidiaries

Cash position

Bond redemption schedule*5¥3.0 trillion*4

Net proceeds expected from asset
sale to SoftBank Vision Fund(+ $1.1bn) (yet to be settled)(Reference) Credit ratings¥1,133.6

Japan Credit Rating Agency:

A–

Standard & Poor’s:BB+

Monetization using Alibaba shares(+ $11.5bn)(Billions of yen)Amount of share repurchase(- ¥234.6bn)

1,305.6
949.5¥1,819.5

924.1
583.1

501.0

530.0

420.9
206.5

150.0

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

FYE2019’20

Message from Our CEO

Who We Are

’21

’22

’23

’24

Our Path to Continued Growth

’25

’26

’27

’28

90.9
’29

(FY)

Management: The Foundation Supporting Our Growth*4 Cash position = Cash andcash equivalents + Short-term
investments recorded as current
assets. SBG stand-alone basis.
The value of cash position
includes undrawn commitment
line, consideration from asset
sale to SoftBank Vision Fund,and the total proceeds fromthe monetization using Alibaba
shares. Deducts the amountspent for share repurchase in
April 2020.
*5 O utstanding balance as ofMarch 31, 2020. Prepared on
the assumption that hybrid
notes will be redeemed on thefirst call dates. The contracted
swap foreign exchange rateis used where applicable. $1= ¥108.83 is used elsewhere.
Excludes bonds bought backand held in treasury.

Financial Section

Corporate Information

028

Message from Our CFO¥4.5 trillion program aiming to deliverlarge-scale returns to shareholders andcreditors
In March 2020, SBG announced a program to sell ormonetize up to ¥4.5 trillion of assets held. The proceeds will be used for a buyback up to ¥2.0 trillion
with the balance to be used for debt redemptions,bond buybacks, and increasing cash reserves.
The sale and monetization of assets held together
with the share repurchase will be executed over thefour quarters following the program’s announcement. Progress of the program to date*6 includes:
approximately ¥1.2 trillion through prepaid forward
contracts using Alibaba shares; approximately ¥0.3
trillion through the sale of a portion of SoftBank
Corp. shares, and; approximately ¥2.2 trillion*7
through the sale of T-Mobile shares. We are also
making a good progress of share repurchase andfinancial improvement.
It is generally believed that the needs of equity
investors, who expect growth in the value of stock as
well as shareholder returns such as stable dividends
and share buybacks, are incompatible with thoseof bond investors, who value interest income fromdebt and certainty of the repayment. However, this¥4.5 trillion program balances the proceeds between
shareholder returns and financial improvements,
and takes full account of the different positions andperspectives of both investors. Equity investors can
expect the share price discount to narrow, whilebond investors can anticipate improvements in thebalance sheet through substantial debt reduction

SoftBank Group Corp. ANNUAL REPORT 2020and enhanced cash reserves.
Improvement in our corporate governance also
matters for increasing shareholder value. In June
2020, we took steps to further upgrade and expand
the diversity of SBG’s Board of Directors with theappointment of Lip-Bu Tan and Yuko Kawamoto as
External Board Directors. Bearing in mind the importance to investors of the Board composition andthe internal decision-making process adhering to
the governance rules and being easy to understand,we intend to enhance the committees that support
the Board to realize more transparent corporate
governance. Moreover, as a member of the management team, I am dedicated to securing and training
people who are capable of fulfilling their duties, andto enhancing employee satisfaction by continuously

improving our personnel system and compensation
schemes, while placing an emphasis on diversity
among corporate officers as well as all employees.
In closing, it is my heartfelt wish that the
COVID-19 pandemic will dissipate as quickly as possible. I am sure that I speak for the entire company as
I voice our commitment to take full advantage of ourinternal and external networks to procure and provide antibody testing kits, protective suits, and othersupplies to all who are in need at the earliest opportunity. By continuing to address such social issues,
we also hope to further increase our shareholder
value. As we work toward achieving our establishedgoals, we kindly ask for the continued support andunderstanding of all stakeholders.

*6 As announced by June 24,
2020.
*7 E xpected sale price. Totalamount of sale price ($20,115
million) as announced in“Number of Shares to beTransferred and Purchase Pricefor the Transfer of Sharesof Equity Method Associate(T-Mobile US, Inc.)” dated June24, 2020. $1 = ¥106.53.

¥4.5 trillion program

Asset sale and monetization of up to ¥4.5 trillion
Preparing for
future investment
opportunities

Returns toshareholders

Financial
improvement

Share buyback of up to¥2 trillion

Debt repayment
Bond buyback
Cash reserves(¥2.5 trillion in total with thepreviously announced program)

Table of Contents

Message from Our CEO

Who We Are

Newinvestments

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

029

Corporate GovernanceFor the latest information, see“Corporate Governance” on our
website.

Based on SBG’s Corporate Governance Report filed with the Tokyo Stock Exchange on June 26, 2020.

Basic views

corporate governance in order to realize this vision.

Conduct to prescribe policies to be followed by the

SBG continues to strengthen governance by taking

Company and its Board Directors and employees.

The Company is guided by a fundamental concept ofmeasures such as formulating the SoftBank Group“free, fair, and innovative,” and a corporate philos-

Charter to share the Group’s fundamental concept

ophy of “Information Revolution — Happiness forand corporate philosophy, devising Group Company

everyone.” The Company aims to be a provider ofManagement Regulations of the SoftBank Group to

SBG’s Board of Directors consists of 13 Board Di-

essential technologies and services to people around

set out the management policy and management

rectors, including four External Board Directors.

the world while maximizing its corporate value.

framework for Group companies, and establish-

The Chairman & CEO serves as the chairman of the

SBG recognizes that it is vital to maintain effective

ing compliance with the SoftBank Group Code ofBoard. Agenda items for discussion at the Board

Corporate governance system

Corporate governance systems at a glance
General Meeting of Shareholders

Election / dismissalof directors

Nominating andRemuneration
Committee

OutlineElection / dismissal of members of
Audit & Supervisory Board

Board of Directors
Recommendation

13 Directors

Audit

4 External Directors
Call /
report on
execution
situation

4 members
Supervision /election /dismissal

ReportOrganizational form

Company with Audit & Supervisory Board

ReportBoard Directors

Maximum number stipulated in the Articles of
15
Incorporation 

Cooperation

Independent
Auditor

Audit & Supervisory
Board members

Briefing /cooperation

Audit &
Supervisory Board
OfficeBriefing

Internal Audit
Department

Brand Committee

Table of Contents

Maximum number stipulated in the Articles of
5
Incorporation 
Number of Audit & Supervisory Board members(of which External Audit & Supervisory Board
4 (3)members) Election of chairperson / partial delegation of authority

Investment Committee

1 yearTerm of office 

ReportReportMembers (of which External Board Directors)  13 (4)3 External members

Cooperation
ReportDetails

Election / dismissal ofindependent auditor

Briefing

Audit & Supervisory Board

Chairman & CEO

Election ofmembers / partial
delegation of
authority

SoftBank Group Corp. ANNUAL REPORT 2020

Board of Directors

Message from Our CEO

Who We Are

4 years

Term of office 
Number of Independent
Officers

6 (4 External Board Directors and 2 External Audit &Supervisory Board members)

Voluntary committees of
the Board of Directors

Nominating and Remuneration Committee, Investment
Committee, Brand Committee

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

030

Corporate Governancemeetings are set forth in the Board of Directors Reg-

Improvements based on the Board of Directors evaluation

ulations. The Board discusses statutory matters, aswell as critical matters related to business managethat exceed a certain amount. In addition, Special Di-

1. Expediting thetransmission of
agenda items

rectors are put in place in accordance with Paragraph

2. Improving the
explanation

ment, such as investments, loans, and borrowings

1. Expanding
reporting items
2. Improving theprocess of agenda
item discussion

1, Article 373 of the Companies Act, and mattersrelated to “disposal and acceptance of important
assets” and “borrowing in a significant amount” areFiscal 2017

1. Increasing the number
of External Board
Directors
2. Appointing a female
Board Director
3. Improving
pre-briefings

Fiscal 2018

Fiscal 2019resolved by the Board of Special Directors meetingfor the purpose of prompt decision-making.

enhanced reporting on the status of Group companies
and portfolio companies, as well as discussions on

Summary of results of the Board of
Directors evaluation

the management system for these companies, wereneeded. Also pointed out were the needs to increase

Board of Directors evaluation implementation schedulethe number of External Board Directors and to provide

Jun

From November 2019 to April 2020, SBG had an in-

more detailed explanations at Board meetings and in

dependent organization conduct a questionnaire andthe Board meeting materials, particularly with regard

Update and disclosure of the Corporate Governance Report(including evaluation results)

interviews with its Board Directors (CEO, Executive

to investment projects.

Vice Presidents, and External Board Directors) and all

The evaluation results were reported at the Boardof its Audit & Supervisory Board members about themeeting in April 2020, and the Board has confirmed

composition, operation, and support systems of thethat it will make improvements with regard to their

Board of Directors, and conducted an evaluation offindings.

the effectiveness of the Board based on their results.
The evaluation results confirmed the overall efficacy

Nominating and Remuneration Committeeof the Board. Meanwhile, in the questionnaire andResolution on the Corporate
Governance Report at the Board of Directors meeting in JuneP
Apr – May
Compilation ofevaluation results
Analysis ofevaluation results
Evaluation results
report submitted at
the Board of Directors
meeting in April

Jul – Dec

A

PDCA cycle
implemented
each yearDinterviews, it was often cited that management and

The Nominating and Remuneration Committee

oversight of Group companies and portfolio compa-

deliberates on standards for election and dismissal,

nies, as well as oversight of conflicts of interest, were

proposals of candidates, individual remuneration, andespecially important roles for the Board of Directors

policies concerning evaluation and remuneration forof SBG as a strategic investment holding company. In

Board Directors, and reports the results of the delib-

Jan – Marlight of such roles of the Board, it was recognized thateration to the Board of Directors. The Nominating

Implementation of the evaluation plans

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Consideration andformulation ofevaluation plans
Evaluation plan reportsubmitted to the Boardof Directors meetingin OctoberC

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

031

Corporate Governanceand Remuneration Committee members are electedchairman, while the four members are: Kazuko Kim-of knowledge and experience in their professionalby the Board from among Board Directors, and aiwada, Senior Vice President; Natsuko Oga, the headroles as a lawyer, a Certified Public Accountant, or

majority of the Committee members are Independentof the Corporate Legal Department; Takeaki Nukii,

a Certified Tax Accountant. The Audit & Supervisory

External Board Directors. The Committee currently

the head of the Corporate Communications Office;

Board meets once a month, in principle. At thesecomprises three Board Directors: Masami Iijima as theand Tatsuya Iida, the head of the General Adminis-

meetings, the audit policy and plan are formulatedchairman of the committee, Independent External

tration Department. The committee makes decisions

and details of various internal and external meetings

Board Director; Yutaka Matsuo, Independent External

on matters set forth in the Regulations of the Brand

attended only by full-time members are reported to

Board Director; and Masayoshi Son, Chairman & CEO.

Committee, including the management and licensing

part-time members. The Audit & Supervisory Boardof the SoftBank brand. Decisions are only approved

also explains details of the fiscal audit plan, interim

by unanimous agreement. All decisions made by theaudit status, and results of the audit to the Board. Fur-

committee are reported to the Board.

thermore, the Audit & Supervisory Board determines

Committees that make decisions on
matters delegated authority by the Boardof Directors
Investment Committee

the appropriateness of reappointing the Independent

Audit & Supervisory Board members andthe Audit & Supervisory Board

The Investment Committee comprises six Board

Auditor each fiscal year.

Cooperation between the Audit &Supervisory Board members, theIndependent Auditor, and the Internal
Audit Department

Directors: Masayoshi Son, Ronald D. Fisher, Marcelo

The Audit & Supervisory Board members attend the

Claure, Katsunori Sago, Rajeev Misra, and Yoshimitsu

Board meetings, allowing them to monitor and verify

Goto. The Investment Committee makes decisions

the decision-making of the Board and fulfillment ofon matters set forth in the Regulations of the In-

the Board’s obligation to supervise the execution ofvestment Committee including investments, loans,duties by each Board Director. Moreover, the Audit &The Audit & Supervisory Board members receiveand borrowings under a certain amount. Decisions

Supervisory Board members receive regular reports

regular explanations from the Independent Auditor

are only approved by unanimous agreement. If afrom and conduct interviews as necessary with Board(Deloitte Touche Tohmatsu LLC) on the audit plan,unanimous agreement is not reached, the matter is

Directors, employees, and major subsidiaries’ audi-

quarterly reviews, the results of the audit, and otherbrought to the Board. All final decisions of the com-

tors and other personnel for auditing the execution

matters. The two parties also cooperate as necessary

mittee are reported to the Board.

of duties by the Board Directors of SBG. The Audit &by exchanging information and opinions, among other

Supervisory Board consists of four Audit & Supervisory

measures. Furthermore, the Audit & Supervisory Board

Brand Committee

Board members (two full-time members and two part-

members receive explanations from the Internal Audit

The Brand Committee comprises the chairman se-time members), including three external members

Department, which is responsible for SBG’s internal

lected by the Board and four members appointed bychaired by a full-time, Internal Audit & Supervisory

audits, about the audit plan and the results of internal

the chairman, totaling five. Yoshimitsu Goto, Board

Board member. SBG ensures adequate independence

audits performed on each department of SBG and its

Director and Senior Vice President, serves as theof the three external members, who possess a wealthmajor subsidiaries. The two parties also cooperate as

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

032

Corporate Governancenecessary by exchanging information and opinions,

Major activities, reason for appointment, etc. of External Board Director / External Audit & Supervisory Board Member

among other measures.
The Independent Auditor receives explanations fromName

Independent
Officer

Masami Iijima□

Activities

Yutaka Matsuo□

Activities

Lip-Bu Tan□

Reasons forappointment

Yuko Kawamoto□

Reasons forappointment

Maurice Atsushi
Toyama□Activities

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

Soichiro Uno□

Activities

Makes remarks based on his extensive knowledge and experience as alawyer.

Hidekazu
Kubokawa□

Activities

Makes remarks based on his extensive knowledge and experience as a
Certified Public Accountant and Tax Accountant.

the Internal Audit Department on the audit plan and,
when necessary, on the results of internal audits andMajor activities or reason for appointment

other matters. The Internal Audit Department receives
regular explanations from the Independent Auditor
regarding the results of the audit and other matters.
The two parties cooperate as necessary by exchanging
information and opinions, among other measures.

Independence standards and qualifications
for Independent Board Directors

External
Board
Directors

SBG elects Independent External Board Directors inaccordance with the independence criteria set by
the Tokyo Stock Exchange. The Board elects External
Board Director candidates who can contribute toincreasing corporate value through their qualifications, ability, and deep knowledge in their fields ofexpertise. SBG also elects candidates for their ability
to actively participate in constructive discussions andfrankly express their opinions. SBG ensures adequate
independence of the four External Board Directors,
who bring a wealth of knowledge and experience tothe Board related to business management and othermatters. Each of the External Board Directors actively
participates in discussions at the Board meetings and
SBG makes management judgments and decisions
based on these discussions.

SoftBank Group Corp. ANNUAL REPORT 2020

External
Audit &
Supervisory
Board
Members

Makes remarks to support business judgments and decision-making
based on his extensive knowledge and broad experience of corporate
management and governance, acquired through his career as managementof a trading conglomerate with global business development.
Makes remarks to support business judgments and decision-making
based on his extensive knowledge and broad experience of AI andother technologies as a leading expert in the field, acquired through his
engagement in AI research over many years.
Since founding Walden International, Inc. in December 1987, Mr. LipBu Tan has been active as a global venture capitalist investing in startup companies focusing in sectors including semiconductor / components,
cloud / edge infrastructure, data management and security, and AI /machine learning. He assumed the position of CEO of Cadence Design
Systems, Inc. in October 2008 and led the management of the company for
12 years, playing a vital role in its growth. Also, having served as a directorof Hewlett Packard Enterprises and Schneider Electric Corporation, he has
extensive knowledge and experience related to investment and corporate
management. SBG concludes that Lip-Bu Tan is an indispensable person for
resolving SBG’s important management issues and enabling the increaseof its long-term corporate value, and has therefore appointed him as anExternal Board Director.
After joining McKinsey & Company in September 1988, Ms. Yuko
Kawamoto assumed the position of Senior Expert in July 2001, andcontributed to the company’s growth. Also, after assuming the positionof Professor of Graduate School of Finance, Accounting and Law, Waseda
University (currently Waseda Business School (Graduate School of Businessand Finance)) in April 2004, she served in various roles, including as amember of numerous finance-related government committees and as
an outside director of financial institutions. She therefore has extensive
knowledge and experience related to finance and corporate governance.
SBG concludes that Yuko Kawamoto is an indispensable person for
resolving SBG’s important management issues and enabling the increaseof its long-term corporate value, and has therefore appointed her as anExternal Board Director.

Attendance andattendance rate of
meetings for FY2019
15 of 15 Board of Directors
meetings (100%)
12 of 12 Board of Directors
meetings (100%)——

15 of 15 Board of Directors
meetings (100%)
10 of 10 Audit & Supervisory
Board meetings (100%)
15 of 15 Board of Directors
meetings (100%)
10 of 10 Audit & Supervisory
Board meetings (100%)
15 of 15 Board of Directors
meetings (100%)
10 of 10 Audit & Supervisory
Board meetings (100%)

Note: The major activities and meeting attendance of Yutaka Matsuo are since his appointment on June 19, 2019.

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

033

Corporate Governance

Disclosure of policy on determining remuneration amounts and calculation methods

Total amount of remuneration by title (fiscal 2019)

Overview of the remuneration system for Board

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

Directors and Audit & Supervisory Board members
While referring to results of a remuneration survey
conducted by a specialized organization, SBG ensures the appropriateness of its remuneration system
for Board Directors and Audit & Supervisory Board
members, so that the system provides remunerationthat is competitive enough to attract global talent.

Number ofpeopleTitle

Subtotals for each type of remuneration (¥ million)
Basic
Share-based
Bonus
remuneration
payment

Total amount of
remuneration(¥ million)

5
4

704
53

550
–

91
–

1,345
53

1

24

–

–

24

3
13

48
829

–
550

–
91

48
1,470

Notes: 1. Aside from the above, there was no remuneration paid to External Officers as Board Directors and Audit & Supervisory Board Members of the subsidiaries of SBG for this fiscal year.
2. Pursuant to the resolution of the 38th Annual General Meeting of Shareholders held on June 20, 2018 regarding the annual aggregate remuneration of Board Directors, monetary remuneration shall not exceed ¥5,000 million
per year, while remuneration in the form of stock acquisition rights allotted as stock options separately from the aforementioned remuneration shall not exceed ¥5,000 million per year.
3. Pursuant to the resolution of the 10th Annual General Meeting of Shareholders held on June 28, 1990 regarding the annual aggregate remuneration of Audit & Supervisory Board Members, monetary remuneration shall not
exceed ¥80 million per year.

The total remuneration comprises both fixed andperformance-linked remunerations. The perfor-

Remuneration and other compensation paid to respective Board Directors (fiscal 2019)

mance-linked remuneration comprises cash bonuses
based on short-term performance and share-based

Title

Masayoshi Son

209

Board Director

Ronald D. Fisher

680

Board Director

Marcelo Claure

2,113

Board Director

Katsunori Sago
Rajeev Misra

1,110
1,606

Board Director
Board Director

Ken Miyauchi

699

Board Director

compensation based on medium- to long-term performance, and their proportion is determined individually. The remuneration for Board Directors whose
main duty is to serve as officers of subsidiaries andGroup companies is paid by those subsidiaries andGroup companies, and such amounts are determinedbased on the remuneration policy of each company.
The remuneration for External Board Directors andAudit & Supervisory Board members consists exclusively of fixed remuneration.
Calculation of performance-linked remuneration
The performance-linked remuneration is individually determined through a comprehensive approach
whereby both individual performance based on the

Subtotals for each type of remuneration (¥ million)

Amount ofconsolidated
remuneration(¥ million)

Name

Company nameBasic
remuneration

Bonus

Share-based payment(of which undetermined amount)

OthersSoftBank Group Corp.
SoftBank Corp.
SB Investment Advisers (US) Inc.
SprintSOFTBANK Inc.
SB Group US Inc.
Sprint
SoftBank Group Corp.
SBIA
SoftBank Group Corp.
SoftBank Corp.

120
–
436
54
–
1,417
110
560
1,417
–
120

–
–
767
–
–
–
–
550
–
–
200

–
89 (–)–
54 (–)(701) (–)–
303 (–)––
91 (–)
89 (–)

–
–
70
–
–
114
169
–
189
–
200*

Notes: 1. Only Board Directors whose total consolidated remuneration and other compensation is ¥100 million or more are listed.
2. Company name and subtotals for each type of remuneration are stated based on the remuneration agreements between each Board Director and the Group.
3. Share-based payment is an amount recognized and measured in accordance with IFRS 2 “Share-based Payment” and recorded on the consolidated statement of income of the fiscal year under review. Of the share-based
payment, an amount of cash-settled share-based payment shall be determined based on the share price on the settlement date, but is calculated based on the share price on the last day of a fiscal year if such settlement date is
not reached. If the share price falls from the last day of the previous fiscal year to the current fiscal year, an amount of the share-based payment for the current fiscal year may be negative.
4. “Of which undetermined amount” included in share-based payment refers to an amount of cash-settled share-based payment that was calculated based on the share price on the last day of this fiscal year rather than based on theshare price on the settlement date, which basically shall be used to determine the amount, as such settlement date was not reached then. This amount will fluctuate subject to the share price in the period up to the settlement date.
* Other compensation paid to Ken Miyauchi from SoftBank Corp. represents remuneration in the form of restricted stock, which was introduced at the SoftBank Corp.’s 34th Annual General Meeting of Shareholders held on June 24, 2020.
These restricted stocks will be granted on July 20, 2020, and will be recorded in the consolidated statement of income for the following fiscal year.

demonstration of capabilities and achievements of

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

034

Corporate Governanceeach officer, and SBG’s business performance based

Furthermore, SBG will confirm, or make reasonable

CFO, and has established the Investor Relations De-

on consolidated operating income, consolidated net

efforts to ensure, that each portfolio company oper-

partment as the responsible department. The depart-

income, stock prices, and other factors, are taken

ates under standards of corporate governance thatment conducts IR activities in close coordination with

into account.

are substantially equivalent to the standards set forth

related departments such as Accounting, Finance,in the Portfolio Company Governance and Invest-

Legal, and General Administration. SBG discloses thisApproach concerning group management

ment Guidelines Policy of SBG (see below).

structure on its website and in its Corporate Gover-

Based on its unique organizational strategy, Cluster

Basic views on the internal control systemand the progress of system development* See page 7 for details on the
Cluster of No. 1 Strategy

nance Report.
of No. 1 Strategy,* SBG will invest in subsidiaries
and affiliates (for example, SoftBank Corp. and Arm)The management and the Investor Relations
Department respond to requests for dialogue fromshareholders and other investors within reason, pay-

and investment funds (for example, SoftBank Vision

Please refer to the “Corporate Governance Report”

ing careful attention to the handling of material factsFund), to build a corporate group that operates aof SBG for its basic views on the internal control

subject to insider trading regulations. In addition todiverse range of businesses in the information andsystem and the progress of system development.

individual discussions, SBG holds earnings results

technology sector, and to maximize its medium- tolong-term corporate value. In this process, each portfolio company will seek self-sustained growth, whilebriefings and briefings for retail investors to explain

Policy for constructive dialogue withshareholders

the status of its businesses to shareholders and otherinvestors. The Investor Relations Department com-

SBG, as a strategic investment holding company, will

piles the opinions received from shareholders andsupport each portfolio company in its increase of cor-

SBG works to promote constructive dialogue withother investors through dialogue and periodicallyporate value by promoting collaboration among theshareholders and other investors by assigning IR

reports them to management.

portfolio companies leveraging the Group network.

duties to a Board Director, Senior Vice President andPortfolio Company Governance and Investment Guidelines Policy
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 when SBG and its subsidiaries (including, in principle, SoftBank Vision Fund and other investment subsidiaries managed
by SBG’s subsidiaries) consider an investment. This policy covers a wide range of important corporate governance issues such as a portfolio company’s compositionof directors, founder and management rights, rights of shareholders (including matters on super-voting shares), and mitigation of potential 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.

SoftBank Group Corp. ANNUAL REPORT 2020

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Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

035

Message from an External Board Director

Aligning Our Business with AI Macro Trends
Group’s global profile is, and I felt that perhaps it was
all too good to be true. However, the subsequent
withdrawal of WeWork’s IPO plan triggered manyother issues, and the COVID-19 outbreak has placed
considerable downward pressure on SBG’s financial
results. Despite these peaks and troughs, I am confident in the current direction of the business and do
feel there is no need to change the course given that
AI will be changing the global macro trends. While
we cannot fully avoid experiencing similar pitfalls inthe short term, it is vital that we take a swift action
after properly recognizing losses, to turn things
around and deal with what happens next. I believe
Yutaka Matsuo

that the SoftBank Group is doing a fairly good job ofExternal Board Director,
Independent Officer
SoftBank Group Corp.

handling this situation today.

The Board takes pains to discuss all sides ofeach issue
A roller coaster of a year

in the research of AI for some 24 years since 1996,
I have sympathized with Mr. Son’s vision and his

I feel that governance at SBG in general terms is

My involvement with the SoftBank Group beganability to consistently embrace the macro trends offunctioning effectively. The Board of Directors iswhen I presented a keynote speech themed “Willeach era. Moreover, I was impressed by the dynamic

playing an appropriate role in checking and prevent-

AI Exceed Humans?” at SoftBank World 2016, anchanges that he has triggered through his businessing contentious issues including conflicts of interest.

event for enterprise customers. Thereafter, I wasover the past 30 to 40 years. For these reasons, I was

In contrast to other general Japanese companies that

invited to give a lecture at SoftBank Corp., where I

genuinely pleased to join SBG as an External Board

tend to avoid sudden changes favoring the status

discussed how AI would alter every aspect of life andDirector.

quo, SBG is amazingly quick to update and properly
optimize its strategies and forecasts.

legacy industries in particular and an opportunity for

Since assuming office, however, these past 12

anyone to become the next tech giant by turning thisAI-driven innovation into reality. Although Mr. Son

months have been quite a roller coaster ride. The
So-zo- Summit, a SoftBank Vision Fund-related eventthe focus placed on promoting substantive discus-

was not present at the time, I believe that we haveheld in the U.S. in September 2019, represented

sion. In this sense, the Board serves as much moreshared the same view towards AI ever since. Engaged

the pinnacle. I was amazed by how high SoftBank

than a formal approval forum. Every effort is made

SoftBank Group Corp. ANNUAL REPORT 2020

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Who We Are

Another distinguishing feature of SBG’s Board is

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

036

Message from an External Board Director

to deliberate all sides of each issue. A final decision

one Internal Director at the Annual General Meeting

those with a proven track record or the potential foris made after Board members including External Di-

of Shareholders of this year can be considered as a

growth will survive. From a five- to ten- year perspec-

rectors express their views drawing from their diverse

move to address this issue heads on. I strongly be-tive, companies that utilize AI to provide significant

backgrounds and nationalities and having thoroughlieve that the addition of Mr. Lip-Bu Tan, a corporate

added value will continue to steadily expand and,discussions with Mr. Son. I believe that this is theexecutive who has excelled as an international ven-

therefore, investments in these companies should

ideal decision-making process.

ture capitalist, Ms. Yuko Kawamoto, a professor atyield a return. Staying in line with the macro trend is

Waseda University’s Graduate School of Business andextremely crucial in this instance. So as long as the

Finance who boasts extensive knowledge of financedirection of business remains aligned with macroand governance, and Mr. Yoshimitsu Goto, CFO andtrends, there is no reason for anxiety even in thehead of finance unit at SBG, will further strengthen

event of a short-term decline. Specifically, I havethe governance function.

little concern about SoftBank Vision Fund despite its

A system that enables vigorous debate with
Mr. Son is imperative
Since Mr. Son has an extremely high understandingof and insight on technology as well as both thetechnical and general aspects of finance, it is notrecent substantial investment loss since the fund has

Immense change driven by AI

a long lifespan of about 10 years remaining.

an easy task to engage in vigorous debate with

Online services have significantly increased, nothim. Speaking about arguing with Mr. Son, it was

What I want to emphasize here is that, AI will

only in Europe and the U.S., but also in Japan due

unfortunate to hear that Mr. Tadashi Yanai, Chair-generate greater changes than the Internet over theto the COVID-19 outbreak. This trend towards theman, President & CEO of FAST RETAILING CO., LTD.,

next 10 to 30 years. AI today is actually in a similarwidespread use of online services, or the digitization

stepped down in December 2019 after serving as an

position to the Internet of two decades ago. Whileof various activities, is encouraging automation and

SBG Board Director and Independent Officer for 18

observing the surge of AI-related companies’ valu-

optimization through AI. Lack of digitization, which

years since 2001. Mr. Yanai was someone that wasation over the past year or two regardless of theirin turn prevented programming, has precluded theable to point out the flaws in Mr. Son’s view andquality, just like the rise and fall of the Internet bub-use of AI in certain areas to date. While the pan-sometimes reject his view completely. With this said,

ble around 2000, I had a feeling that the “AI bub-demic is a calamity without precedent, rather thanI believe it is important to maintain a system underble” would eventually burst. I understand that wewallowing in misery and despair, I believe that for us

which Board members can freely express dissenting

are experiencing a similar pattern triggered by theit is far more important to think of the current situa-

opinions even after Mr. Yanai’s resignation. Moreover,

COVID-19 outbreak. I am, however, convinced thattions as a huge opportunity to make AI more widely

while I have been pointing out any mistakes in Mr.

this is a short-term adjustment and I can confident-

adapted.

Son’s understanding of technology-related matters,ly picture a long-term upward trend from a macro

I believe there is also a need for a solid framework

point of view.

that allows Board members to point out risks arisingfrom adopting advanced finance schemes.
The election of two new External Directors and

SoftBank Group Corp. ANNUAL REPORT 2020

I see this phase of making adjustment as a selection or screening period. Meaning, while companies
with little or no profitability will fall by the wayside,

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

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037

Message from an External Audit & Supervisory Board Member

Governance for a Strategic Investment Holding Company

Maurice Atsushi
ToyamaFull-time Audit & Supervisory Board
Member, Independent Officer,
SoftBank Group Corp.
Certified Public Accountant, Stateof California, U.S.

A company with Audit & Supervisory Board
system — the most suitable form ofgovernance for the current situation
Currently, companies in Japan may choose one of
the following three forms of corporate organization:company with Audit & Supervisory Board, company
with three committees (nomination, audit, and remuneration), or company with supervisory committee.
Among those, SBG has adopted the company with
Audit & Supervisory Board system. Considering thecomposition of the board of many Japanese companies including SBG, I believe this is the most suitableform of governance to the current situation.
When I explain about Japan’s Audit & Supervisory

SoftBank Group Corp. ANNUAL REPORT 2020

Board system to people outside Japan, I often refer
to it as the audit committee system in the U.S., however, there is a fundamental difference between the
two. In many U.S. companies, external board directors make up the majority of the board of directors
and provide direction and authorization of management’s conduct of business while maintaining their
independence. The role of the audit committee, asubcommittee of the board comprised of externalboard directors, is to provide oversight of audit plans
and the results of the audits performed by the external auditors and internal audit departments. Direct
audit or supervision of management’s conduct ofbusiness is not their role. This is in contrast to many
Japanese companies, including SBG. While the ma-Table of Contents

Message from Our CEO

Who We Are

jority of the board is comprised of internal directors
in charge of the conduct of business, majority of the
Audit & Supervisory Board must be external members. This requirement enables Audit & Supervisory
Board members to provide highly independent audit
and supervision of board decisions and the conductof directors in light of laws and regulations as well
the articles of incorporation. For example they are
not involved in the investment decision itself, as suchdecision is for the board of directors including external directors, to make. Audit & Supervisory Board
members audit and supervise the decision to ensure
the transactions are free of any conflicts of interest
from a shareholder’s perspective and that there is no
violation of laws such as money laundering.

Monitoring overseas portfolio companies
based on trust
Another feature of the Audit & Supervisory Board
system is the presence of full-time auditors. SBG’s
Audit & Supervisory Board consists of four members,of which two are full-time members, including myself.
Full-time Audit & Supervisory Board members collectnecessary information through direct and daily communication with officers and employees of SBG anddomestic and overseas Group companies. Previously,
there was one full-time Audit & Supervisory Board
member who was from within the company and wasfamiliar with its internal movement. However, aroundthe time of the acquisition of Sprint in 2013, SBG
has rapidly expanded its overseas business. Under
the necessity of closer monitoring Group companies,
mainly overseas, I was appointed as a second full-

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

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038

Message from an External Audit & Supervisory Board Member

time Audit & Supervisory Board member in 2015. I
am in a slightly unique position where, although I am
an External Audit & Supervisory Board member, I am
also a full-time member. Since then, I have frequently
visited major overseas portfolio companies including Sprint, Arm, and Fortress as well as the U.S. andU.K. offices of SoftBank Investment Advisers, which
manages SoftBank Vision Fund (the “Vision Fund”).
Since I have built up trust relationship from these faceto-face communications, I am able to collect sufficient
information through conference calls even under thecurrent circumstances, where overseas business travelis restricted due to COVID-19.

Focusing on the flow of funds tounderstand the true nature
The change in its corporate name from SoftBank Corp.
to SoftBank Group Corp. in 2015 symbolizes how
SBG has transformed itself from a telecommunications
operator to a strategic investment holding company.
Following this, SBG is now subject to a different set ofgovernment agencies and laws and regulations, but
the viewpoint of audit remains largely unchanged. The
important point here is to ensure the proper conductof business in compliance with laws and regulations aswell as SBG’s Articles of Incorporation, and to secure
the interests of shareholders. Having worked at an auditing firm for many years auditing companies acrossa wide range of business sectors, I feel prepared toaddress SBG’s business transformation.
SBG as a strategic investment holding company has
increasingly been involved with complex transactions
lately. However, it is not too difficult to understand the

SoftBank Group Corp. ANNUAL REPORT 2020

true nature of each deal by tracking the final destination of funds rather than focusing too deeply on eachdetail. As SBG and the Vision Fund each engage ininvestment activities, it is sometimes pointed out thatthe differences between the two are difficult to understand from the outside. In contrast to SBG making
strategic investments with a future perspective, the
Vision Fund makes minority investments based on the
Cluster of No.1 Strategy.* There is also a deadline forthe life of the Vision Fund, although it still has around10 years remaining. Again, to audit and supervise theconduct of the Vision Fund, it is important to keep an
eye on the flow of funds. Conflicts of interest can be
avoided by clearly prescribing who, between third-party investors or SBG, should receive the funds.
Key to the audit and supervision is information
sharing through collaboration with the parties concerned. Audit & Supervisory Board members regularly
communicate with the Independent Auditor and theInternal Audit Department to exchange information,
including sharing matters of respective concern. In
addition, a broad range of items are discussed at the
Audit & Supervisory Board meetings, from details ofinternal briefings given by key departments, to eveninformation obtained through informal channels,
almost like rumors. I also share the latest information
about overseas Group companies obtained throughinterviews, as well as information obtained from theoverseas auditing firms of our portfolio companies.
I will continue to cooperate and share information
more closely with parties concerned and aim to build
a more effective Audit & Supervisory Board system.

Table of Contents

Message from Our CEO

Who We Are

Addition of External Board Directors further
strengthens governance* See page 7 for details on the
Cluster of No. 1 Strategy

I have heard some concerns that the checks andbalances on Chairman & CEO Masayoshi Son by the
Board have weakened following the resignation of
Tadashi Yanai, Chairman, President & CEO of FASTRETAILING CO., LTD., as an External Board Director in
December 2019. It is true that Mr. Yanai’s presence
was significant, but I believe these concerns are unfounded. Vigorous discussions continue to take place
among the Directors, both Internal and External, withdiverse backgrounds for appropriate decision-making. It is not solely Mr. Son and three Executive Vice
Presidents who make final decisions. Internal Directors
Simon Segars and Yasir O. Al-Rumayyan as well as
External Board Directors Masami Iijima (Representative
Director, Chairman of the Board of Directors, MITSUI& CO., LTD.) and Yutaka Matsuo (Professor, Graduate School of Engineering, the University of Tokyo),aggressively ask Mr. Son questions to the point and hesincerely replies to those questions.
However, if you think of this as a Board of Directorsof a strategic investment holding company, I had afeeling that directors responsible for business operations were overrepresented and more external board
directors with a background in finance were neededfor objective and in-depth discussion on financialtransactions. The election of Lip-Bu Tan and Yuko
Kawamoto as External Board Directors at the recent
Annual General Meeting of Shareholders is an excellent measure to address these concerns. Their addition
to the Board is expected to further strengthen thegovernance function at SBG going forward.

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

039

Risk Management

Risk management system

Risk management initiatives

In accordance with the Group Company Manage-

To identify material risks at the group level andfrequency of occurrence of the risks. The material

ment Regulations, which define the basic approachassociated issues, the Group has set up and oper-

risks identified are reported to the GRCC and theto risk management at each Group company, theates a risk management Plan-Do-Check-Act cycle

Board of Directors, and based on their discussions,Company is appointing risk managers and building

under the supervision of the GRCC. In fiscal 2019,

countermeasures are examined and monitored toa system for reducing and preventing risks that arise

SBG collected information on risk assessments fromensure its effectiveness. Through the continuous

in our business activities. A system is also in place to

14 Group companies including major subsidiaries

implementation of this cycle, we aim to identify andensure that the occurrence of an incident that may

in each reportable segment, as well as from each

respond to risks in a timely manner, thereby minimiz-

have a material impact on the execution of businessdepartment of SBG, under the leadership of the Risk

ing losses in the Group.

activities and reputation is immediately reported toManagement Department. Based on the informationcollected, SBG identified material risks at the grouplevel by analyzing and evaluating the materiality and

SBG for an appropriate response as a group, in cooperation with Group companies as necessary.
With regard to the risk management of SBG, theRisk management system

Risk management PDCA cycle

Risk Management Regulations define the roles andresponsibilities of each department, such as reducing

SoftBank Group Corp.

and preventing risks arising from its own businesses.

Board of Directors

1
Identify risk

In addition, the Risk Management Department of
SBG periodically monitors and assesses the status ofGroup Risk Compliance Committee (GRCC)

risk management by each department, in accordancewith these regulations. Complementing these ini-

2
Determine
action plan

5
Monitoring

Risk Management Department

tiatives, the Group Risk and Compliance Committee(GRCC) was newly established in 2019 to oversee
risk management across the group. The GRCC meetsquarterly to discuss policies for risk management
activities and material risks and countermeasures,

Each Group Company
Risk Managers

Each department

thereby working to strengthen the risk management

4Disclose risk
information

3
Management
reporting /feedback

capabilities at the group level.

SoftBank Group Corp. ANNUAL REPORT 2020

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040

Compliance

Commitment to complying with the law
and integrity

world as a leading corporate citizen and as a valued

was appointed as the GCO. Similarly, each subsidiaryneighbor in the communities where we work and live.

appointed a chief compliance officer (CCO).
The GCO and CCOs have the responsibility to

The Company is committed to more than just com-

implement systems designed to ensure compliance

Organizational structurewith the laws and regulations and to promote ethicalplying with the law. We believe a commitment to

conduct. The GCO and CCOs also have the authori-integrity must be the foundation for our business. We

GCO and CCOs

strive to create an organization where every officer

The Board of Directors of SBG has the exclusive

and employee demonstrates the highest degree ofauthority to appoint a group compliance officer

ethical conduct in every action they take.

(GCO) as the chief officer responsible for compliance

We will continue to make a positive impact on thety, and responsibility, to stop actions that may violate
laws or company policies. The GCO and CCOs peri-

across the Company. In June 2020, Chad Fentressodically report material incidents and risks together
with activities of their ethics and compliance program to their respective boards.
In fiscal 2019, SBG held quarterly global CCO

Group compliance structure

forums to mitigate risks, share best practices, andAs of April 2020

strengthen the relationship with subsidiaries. SBG
will continue to hold the global CCO forum periodi-

Board of Directors of SoftBank Group Corp.

cally in the future.

ReportOversight

Group Risk and Compliance
Committee of SoftBank Group Corp.
(GRCC)

Appoint

ReportReportOversight

Group Compliance Officer
Appoint

Report / consult

AssistHead Office of Group Compliance
CCO Forum(held periodically)

Direct / advise / guide

Subsidiary
Chief compliance officer

ReportSubsidiary
Chief compliance officer

Subsidiary
Chief compliance officer

Report / consult

Employee

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

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041

Compliance

Ethics and compliance program

Code of Conduct and Group Policies

The Company’s ethics and compliance program is

SBG first adopted the SoftBank Group Code of Con-

based on industry best practices and a continuous

duct* in 2005. With our rapid business expansion

improvement model. By employing the Plan-Do-

across the globe, we substantially enhanced the Soft-

Check-Act cycle, we constantly evaluate the effec-

Bank Group Code of Conduct and Group Policies intiveness of our program and make changes based on

2019. Our revised Code of Conduct is more compre-

the results we measure and observe.

hensive and enriched with specific examples, Q&As,* For details, see “SoftBank
Group Code of Conduct” on
our website.

Architecture of ethics and compliance program

definitions, and red flags to guide the Company’s

Oversight of program

Oversight of Program

officers and employees to ethical conduct.

Leadership
Governance

SBG implemented Group Policies that establish
The Group Risk and Compliance Committee (GRCC)

group-wide minimum requirements across key risk

provides oversight to the risk management and ethics

areas such as anti-corruption, competition, conflicts

and compliance programs of the Company. This com-of interests, insider trading, economic sanctions,mittee members include senior leaders of SBG. The

information security, privacy, human rights, brandcommittee reviews risk assessments, risk mitigation,

management, and corporate governance. SBG con-incidents, and other key performance indicators thattinuously reviews and revises our Code of Conduct

measure the effectiveness and activities of the risk

and Group Policies as appropriate.

Standards and Controls

Risk Assessment

Code of Conduct
Group Policies
Controls

Across the Group
Oversee mitigation

management and ethics and compliance programs.
The committee reports regularly to SBG’s Board of
Directors on the effectiveness of those programs.

Monitor, Audit, and Review
Ethics and compliance helplines
Employee surveys
Internal audits

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued Growth

Training and Awareness
Computer-based testing
Face-to-face training
Regular communications

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

042

ComplianceTraining and awarenessMonitor, audit, and review

where users can easily report concerns or seek advice
using a web-based tool. CCOs are responsible for

The Company conducts training and awareness-rais-

The Company has implemented ethics and compli-

maintaining helplines for their respective companies.

ing activities to ensure that officers and employees

ance helplines to assist employees, officers, or others

Significant substantiated cases must be escalated torecognize risk areas and have the information theysuch as business partners to ask for advice or to

the GCO.

need to make the right choices. As one example ofmake reports of misconduct. These include a helpline

To measure its ethical culture, SBG conducts a

those activities, SBG holds a Compliance Awarenesshosted by an external legal counsel. Allegations andregular employee survey. SBG uses the results of theMonth annually for officers and employees of main

consultations can be made anonymously, as permit-

survey to target messaging about our program or

subsidiaries and conducts a compliance slogan con-ted by local laws and regulations. We received sev-

take other action as appropriate.

test. The winning compliance slogan will be used foreral hundred reports and requests for advice in fiscal

communications from the GCO to our employees.

2019. We are also currently implementing a global

SBG also provides training for directors, officers, andethics and compliance helpline across the Company

employees with respect to high risk areas such asbribery and corruption. Through these efforts, we
strive to minimize risks and enhance management
efficiency.
SBG implemented a global training system and isestablishing minimum standards across the Company
and standardizing training about the Code of Conduct and certain risk areas.

Top page of the “Compliance Awareness Month,” a special website for officers and employees for fiscal 2019

SoftBank Group Corp. ANNUAL REPORT 2020

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043

Sustainability
For details, see “Sustainability”
on our website.

SoftBank Group Sustainability Vision“Help shape the next 300 years for our
future generations and the planet”

generations and the planet can coexist indefinitely, weof the Group in order to ensure that the expectations

will strive to realize a sustainable society by fulfillingof all stakeholders including customers, sharehold-our responsibility as a corporate group that leads theers, creditors, business partners, and employees are

Information Revolution.

the foundations of sustainable growth. Under theseprinciples, we have identified six activity themes that

The corporate philosophy of the SoftBank Group,“Information Revolution — Happiness for everyone,”
captures the determination to build a happier and more
fulfilling future over the next 300 years and for generations to come. In order to create a world where future

Sustainability promotion policy

enable Group companies to identify priority issues, in

1. SoftBank Group Sustainability Principles

businesses and the demands of society, and promote

SBG established “The SoftBank Group Sustainability

initiatives independently.

Principles” as guidelines to support the sustainability

Activity themes and Material Issues
Activity themes

Strategic Material Issues(Top priority)

Material Issues

Strategic Material Issues

1. Drive sustainable growth and innovation in society byuniting wisdom and knowledge• Innovation management• Sustainable finance• Market opportunity

2. Take responsibility by responding to emerging issues thatcome with technological advancement• Access to communication• Privacy and data security

3. Ensure the growth of the future generations and ourbusiness by creating higher quality employment for all• Human capital development• Health and safety• Human rights• Labor standards• Social supply chain

4. Leverage breakthrough technologies to resolve
environmental issues, including energy problems• Climate strategy• Pollution and resources• Environmental supply chain

5. Demonstrate highly transparent governance and integrity
to win further trust of our stakeholders• Risk management• Corporate governance• Anti-corruption

Issues to be strategically prioritized

Climate strategy
Human capital development
Corporate governanceAnti-corruption
Labor standards• Corporate citizenship

Privacy anddata security

Social supply chain

Importance to stakeholders

6. Maximize our potential as a group by joining forces withpeople around the world to make a positive impact onsocietyaccordance with the characteristics of their respective●
Innovation management
Market opportunity ●Sustainable financeCorporate citizenship
Human rights

Access tocommunication

Pollution and resources●●

Risk management

Environmental
supply chain●

Health and safety●(Top priority)

Importance to SBG

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044

Sustainability

2. Strategic Material Issues

Sustainability promotion structure

We have identified areas and themes that need to

Step 2be strategically addressed as “Strategic Material

Materiality
AnalysisAnalyzetheImportance of Social Issues to

To further promote sustainability, Yoshimitsu Goto,

Issues” by examining our sustainability issues. This

Analyze the importance of social issues to

Board Director and Senior Vice President of SBG, wasprocess reflects both the expectations of stakehold-society and the Company

appointed to the newly created position of Chiefers and the importance for the Group’s business.

Analyze the level of importance of each issue

Sustainability Officer (CSusO), who is in charge of

Through continuous efforts to address the Strate-

determined in Step 1 against the two axes ofpromoting sustainability.

gic Material Issues, we aim to become a corporate

issues that the society, or stakeholders, considers

SBG also established the Sustainability Commit-

group that grows sustainably while harmonizing

important and issues that the Company considers

tee, which is chaired by the CSusO and comprises ofwith the society.

important for sustainable growth.

corporate officers and the Head of Division for Sustainability Promotion. The Sustainability Committee rocess for identifying Strategic Material
3. P

continuously discusses issues that are material to our

Step 3sustainability and periodically reports to the Board of

Our Strategic Material Issues are identified throughIdentification of Material Issues

Directors. The Sustainability Committee also works

the following assessment process.

Identify the Strategic Material Issues thatclosely with Group companies to enable the Groupthe Company should tackle through businessas a whole to promote sustainability.

Issuespractice

Step 1

Identify Strategic Material Issues - material issues

Identification of Issues

with top priority that the Company needs to

Identify related social issues

address based on the results of analysis in Step 2.

Sustainability promotion structure

Determine social issues in the social and business

Board of Directors of SoftBank Group Corp.
Instruction / supervisionenvironments surrounding the Company’s majorindustries by referring to external guidelines,

4. Future initiatives

opinions from outside experts, and other related

For the identified Strategic Material Issues, we will

information.

continue to work on setting targets for each issue.

ReportSecretariat: Sustainability
Promotion Group

Sustainability Committee

We will also review the Strategic Material Issues in

Chairperson: Chief Sustainability Officer
Members: Corporate officers, Head of Division
for Sustainability Promotion

response to changes in society and the environment,

Related departments
Response /reportCooperation

importance to stakeholders, changes in the businessof each Group company, and other factors as a part

Instruction /supervision

Major subsidiaries

of efforts to achieve sustainable growth of the Group
as a whole.

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

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045

Sustainability

Our response to COVID-19
We are implementing various initiatives to prevent the spread of the pandemic and to help address its consequences.

SoftBank Group Corp.

SoftBank Vision Fund

SBG provides antibody test kits free of charge

SoftBank Vision Fund portfolio companies have undertaken initiatives in response to COVID-19. Notable cases are presented as follows.

to medical institutions that in need to monitor

Medical response Developing treatments and directly addressing health crisis

the status of the pandemic. Approximately 246
thousand antibody test kits had been provided
by the end of June 2020.
SBG also procures face masks, face shields,
goggles, protective suits, gowns, and nitrile

Fanatics

Fanatics converted one of its U.S. factories to produce masks and gowns from material used to manufacture MLB jerseys; donating them to hospitals andemergency personnel

Flexport

Flexport raised over $8M and helped source, fund and deliver over 171M critical supplies

Roivant
VIR

Roivant is rapidly advancing clinical-stage trials for treatment of Acute Respiratory Distress Syndrome caused by COVID-19

Flexport + Clutter

rubber gloves to supply at cost to medical and

Vir is isolating antibodies to potentially treat or prevent COVID-19 infections
In the U.S., Flexport and Clutter are working together to move Personal Protective Equipment (PPE) to the frontlines. Flexport is handling shipping and Clutter
is providing storage facilities and delivering this protective gear to healthcare workers

healthcare workers, among others, who are

Organizational response Filling the gaps for governments, institutions, and employers

in need.

Collective HealthGreensill
Kabbage
Mapbox

Collective Health launched a COVID-19 website to the public with 60-second Risk Assessment tool to encourage self-isolation
Greensill launched a free app to help U.K. healthcare workers get paid every day, instead of waiting until the end of the month
Kabbage launched a free platform for SMEs to offer gift certificates to U.S. customers, so they can maintain income during the crisis
Mapbox is helping organizations, such as Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO), with real-time datavisualization of the outbreak to target support needs

Societal response Supplying basic needs to vulnerable populations

Delivery of antibody test kits

SoftBank Group Corp. ANNUAL REPORT 2020

DoorDash

DoorDash launched United Way partnership to deliver food and goods to vulnerable populations; opened up delivery fleet to U.S. city agencies and community
organizationsOYO

OYO is providing free stays to healthcare workers in the U.S. and potentially other geographies; providing quarantine sites in India

Rappi

Rappi will deliver 500,000 free meals to hospital workers in Latin America

Uber

Uber is providing 14-day financial assistance to diagnosed drivers; pledged 10 million free rides and meals to healthcare workers worldwide

REEF + Uber

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

Notes:
1. Data as of May 27, 2020. Press releases, etc. of each portfolio company. Portfolio company names have been abbreviated. See page 21 for details of SoftBank Vision Fund portfolio companies.
2.	The information presented herein is provided for illustrative and informational purposes only and it should not be relied upon in any way. The information provided herein is subject to change aswell as uncertainties and risks. SBIA has no obligation to update any information. References to select investments included herein should not be construed as a recommendation of any particularinvestment or security nor does the information herein constitute an offer to sell or a solicitation of an offer to buy limited partnership interests in any fund managed by SBIA.

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

046

Sustainability

cities. Moreover, Masayoshi Son, Chairman and CEO of

ing the International Solar Alliance (ISA) and the Global

SBG, serves as the Chairman of the Renewable Energy

Energy Interconnection Development and Cooperation

Institute, which he founded in August 2011 with theOrganization (GEIDCO). SBG has made significant

In the aftermath of the accident at the Fukushima

aim of building a society based on renewable energy.

contributions to the advancement of renewable energy

Daiichi Nuclear Power Station caused by the Great East

SBG and SB Energy Corp. are also founding mem-in Japan and overseas by actively participating in these

Japan Earthquake in 2011, the Group entered the re-bers of the Japan Climate Initiative (JCI), a network of

related organizations.

newable energy business for a safe, secure, and sustain-

companies and municipal authorities in Japan that areWith the development of AI and IoT, the accumu-

able supply of energy. As of March 31, 2020, SB Energy

focused on realizing the carbon-free society as definedlation of big data, and the electrification of mobility,

Corp., a subsidiary of SBG, has 41 solar power gen-by the Paris Agreement, as well as being founding

global power usage is expected to increase significantly

eration plants and two wind power generation plants

members of several international organizations includ-in the future. We will continue to engage in environ-

Generation and promotion ofrenewable energy

mental activities, even including energy generationin operation nationwide in Japan, with a total generation capacity of 491.1MW. Globally, SB Energy Corp.
operates Tsetsii Wind Farm, its first wind power project*1 Based on the expectedannual power generation ofrespective power plants.
*2 T he calculation of CO2
emission reductions isbased on the guidelines ofthe Ministry of Economy,
Trade and Industry andJapan Photovoltaic Energy
Association.

Renewable energy projects of the SoftBank Groupneeded to promote an information-oriented society.

As of March 31, 2020

in Mongolia’s Gobi Desert, and solar power generation
plants in India. The annual electricity supply from these

Tsetsii Wind Farm
50 MW

renewable energy resources was 3,085GWh,*1 an

Mongolia

increase of approximately 21% compared with the pre-3,085 GWh per year

vious year, and equivalent to half of the annual power
output of a standard nuclear power plant. The amountof CO2 emission reduction attributable to this supplyis 2.45 million tons*2 annually, an increase of approximately 20% compared with the previous year. This isequivalent to about 0.5% of the annual CO2 emissions

Power supplied by using
renewable energy

Emissions reduction

2.45 million tons of
CO2 per year

Japan

RJ-200200 MW
RJ-400400 MW
AP-350India
350 MW

Number of solar power
generation plants in Japan(Currently generating)

41 plants

generated by all the power plants in Japan.
SBG has served as the secretariats of two organizations that were established to promote the spread ofrenewable energy in Japan since their foundation in

Solar power plant
Solar power plant under construction
Wind power plant

Power generated
in Japan

491.1 MW

July 2011: the Renewable Energy Governors’ Alliance,
which comprises of 34 prefectures in Japan, and theRenewable Energy Governors’ Alliance for Designated
Cities, which comprises of 19 ordinance-designated

SoftBank Group Corp. ANNUAL REPORT 2020

’12

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued Growth

’13

’14

’15

’16

’17

’18

Management: The Foundation Supporting Our Growth’19 (FY)

Financial Section

Corporate Information

047

Board Directors and Audit & Supervisory Board Members
As of June 25, 2020 (Numbers of shares held are as of March 31, 2020)

Directors
Chairman & CEO

Board Director, Vice Chairman

Masayoshi Son

Ronald D. Fisher

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

Jul 1984
Jan 1990
Oct 1995
Jun 1997
Jan 2014
Aug 2014
Sep 2016
Dec 2016
Jun 2017
Dec 2017
Mar 2018

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) (to present)
Chairman and Executive Director, ARM Holdings plc (currently SVF HOLDCO (UK) LIMITED)
Chairman & CEO, SoftBank Group Corp. (to present)
Chairman and Director, Arm Limited (to present)
Chairman, SoftBank Corp. (to present)

Number of shares held in SBG:
439,409 thousand shares

Number of shares held in SBG:
2,050 thousand shares

Number of shares held in SBG:
5,039 thousand shares

SoftBank Group Corp. ANNUAL REPORT 2020

President, Interactive Systems Corp.
CEO, Phoenix Technologies Ltd.
Director and President, SoftBank Holdings Inc. (currently Star Bright Holdings Inc.) (to present)
Board Director, SoftBank Corp.(currently SoftBank Group Corp.)
Director, Brightstar Global Group Inc.
Chairman, Brightstar Global Group Inc.
Director, ARM Holdings plc (currently SVF HOLDCO (UK) LIMITED)
Director, SB Investment Advisers (US) Inc.
Board Director, Vice Chairman,SoftBank Group Corp. (to present)
Director and Chairman, SB Investment Advisers (US) Inc. (to present)
Director, Arm Limited (to present)

Number of shares held in SBG:
1,065 thousand shares

Board Director, Executive Vice President & COO

Board Director, Executive Vice President & CSO

Marcelo Claure

Katsunori Sago

Jun 1995
Oct 1996
Sep 1997
Sep 2008
Aug 2014
Jun 2017
Mar 2018
May 2018
Jun 2018
May 2019
Oct 2019
Apr 2020

Apr 1992 Joined Goldman Sachs JapanMay 1997 Head of Derivatives Trading, Fixed Income Division, Goldman Sachs JapanJan 2007	Director, Co-head of Pan-Asia Equities Division and Fixed Income Currency and Commodities
Division, Goldman Sachs Japan Co., Ltd.
Jan 2011 Director, Deputy President, Goldman Sachs Japan Co., Ltd.
Jul 2014 Vice Chairman, Goldman Sachs Japan Co., Ltd.
Feb 2015 Special Adviser to the Financial Services Agency
Jun 2015 Executive Vice President, JAPAN POST BANK Co., Ltd.
Jun 2016 Director and Representative Executive Vice President, JAPAN POST BANK Co., Ltd.
Jun 2018 Board Director, Executive Vice President & CSO, SoftBank Group Corp. (to present)

Owner, USA Wireless, Inc
President, Small World Communications, Inc.
Founder, Chairman & CEO, Brightstar Corp.
Owner, Bolivar Administracion, Inversiones Y Servicios Asociados S.R.L. (to present)
President & CEO, Sprint Corporation
Board Director, SoftBank Group Corp.
Director, Arm Limited (to present)
Executive Chairman, Sprint Corporation
Board Director, Executive Vice President & COO, SoftBank Group Corp. (to present)
Chairman of the Board, Fortress Investment Group LLC (to present)
Director, Executive Chairman, The We Company (to present)
Director, T-Mobile US Inc. (to present)

Number of shares held in SBG:
1,067 thousand shares* CSO: Chief Strategy Officer

Board Director, Executive Vice President

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

Rajeev Misra

Yoshimitsu Goto

Dec 1985
Jul 1986
Aug 1991
May 1997
May 2001
Apr 2009
Jan 2010
May 2014
Nov 2014
May 2017
Jun 2017
Dec 2017
Jun 2018

Apr 1987 Joined The Yasuda Trust and Banking Co., Ltd. (currently Mizuho Trust & Banking Co., Ltd.)Jun 2000 Joined SoftBank Corp. (currently SoftBank Group Corp.)
Oct 2000 Head of Finance Department, SoftBank Corp. (currently SoftBank Group Corp.)
Apr 2006 Director, Vodafone K.K. (currently SoftBank Corp.)
Jul 2012 Corporate Officer, Senior Vice President, SoftBank Corp. (currently SoftBank Group Corp.)
Oct 2013 President & CEO and acting owner, Fukuoka SoftBank HAWKS Corp. (to present)
Jun 2014 Board Director, SoftBank Corp. (currently SoftBank Group Corp.)
Jun 2015 Corporate Officer, Senior Vice President, SoftBank Corp. (currently SoftBank Group Corp.)
Jun 2017 Corporate Officer, Senior Vice President, SoftBank Group Corp.
Apr 2018	Corporate Officer, Senior Vice President & CFO & CISO, SoftBank Group Corp.
Jun 2020 Board Director, Senior Vice President, CFO, CISO & CSusO, SoftBank Group Corp. (to present)

Joined Los Alamos National Laboratory
Joined Realty Technologies Pty Ltd
Joined Merrill Lynch (currently Bank of America Merrill Lynch)
Joined Deutsche Bank AG as Managing Director
Global Head of Credit, Emerging Markets, Deutsche Bank AG
Joined UBS Group AG
Global Co-Head of Fixed Income, Currencies and Commodities, UBS Group AG
Joined Fortress Investment Group LLC as Senior Managing Director and Partner
Joined SoftBank as the Head of Strategic Finance for the Group
CEO, SoftBank Investment Advisers, the manager of SoftBank Vision Fund (to present)
Board Director, SoftBank Group Corp.
Board Director, Fortress Investment Group LLC (to present)
Board Director, Executive Vice President, SoftBank Group Corp. (to present)

Table of Contents

Number of shares held in SBG:
1,079 thousand shares

Message from Our CEO

Who We Are* CISO: Chief Information Security Officer* CSusO: Chief Sustainability Officer

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

048

Board Directors and Audit & Supervisory Board Members
As of June 25, 2020 (Numbers of shares held are as of March 31, 2020)

Directors
Board Director

Board Director

Ken Miyauchi

Simon Segars

Feb 1977 Joined Japan Management Association
Oct 1984 Joined SOFTBANK Corp. Japan (currently SoftBank Group Corp.)
Feb 1988 Board Director, SOFTBANK Corp. Japan (currently SoftBank Group Corp.)
Apr 2006 Executive Vice President, Director & COO, Vodafone K.K. (currently SoftBank Corp.)
Jun 2007 Representative Director & COO, SoftBank Mobile Corp. (currently SoftBank Corp.)
Jun 2012 Director, Yahoo Japan Corporation (currently Z Holdings Corporation) (to present)
Jun 2013	Representative Board Director, Senior Executive Vice President, SoftBank Corp. (currently
SoftBank Group Corp.)
Apr 2015 President & CEO, SoftBank Mobile Corp. (currently SoftBank Corp.)
Apr 2018 Board Director, SoftBank Group Corp. (to present)
Jun 2018 President & CEO, SoftBank Corp. (to present)

Mar 1991 Joined Advanced RISC Machines Limited (currently Arm Limited)Feb 2001 Vice President Engineering, ARM Holdings plc (currently SVF HOLDCO (UK) LIMITED)Jan 2004	Executive Vice President Worldwide Sales, ARM Holdings plc (currently SVF HOLDCO (UK)
LIMITED)Jan 2005 Executive Director, ARM Holdings plc (currently SVF HOLDCO (UK) LIMITED)Sep 2007 EVP and GM, Physical IP Division, ARM Holdings plc (currently SVF HOLDCO (UK) LIMITED)Jan 2013 President, ARM Holdings plc (currently SVF HOLDCO (UK) LIMITED)Jul 2013 CEO, ARM Holdings plc (currently SVF HOLDCO (UK) LIMITED)Mar 2014 Director, Global Semiconductor AllianceFeb 2015 Non-Executive Director, Dolby Laboratories, Inc. (to present)
May 2017 Director, TechWorks, Inc. (to present)
Jun 2017 Board Director, SoftBank Group Corp. (to present)
Mar 2018 CEO, Arm Limited (to present)
Oct 2018 Vice Chairman and Director, Global Semiconductor Alliance (to present)

Number of shares held in SBG:
2,832 thousand shares

Number of shares held in SBG:-

Board Director

Yasir O. Al-Rumayyan

Number of shares held in SBG:-

SoftBank Group Corp. ANNUAL REPORT 2020

Dec 2010 CEO and Board Member, Saudi Fransi Capital LLC
Feb 2014 Board Member, Saudi Stock Exchange (Tadawul)
Sep 2015	Managing Director and Board Member, Public Investment Fund (PIF) of the Kingdom of Saudi
ArabiaJun 2016 Board Member, Uber Technologies, Inc. (to present)
Dec 2016 Chairman, Saudi Decision Support Center (to present)
Jun 2017 Board Director, SoftBank Group Corp. (to present)
Jul 2017 Chairman, Sanabil Investments (to present)
May 2018 Director, Arm Limited (to present)
May 2019	Governor and Board Member, Public Investment Fund (PIF) of the Kingdom of Saudi
Arabia (to present)
Sep 2019 Chairman of the Board, Saudi Aramco (to present)

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

049

Board Directors and Audit & Supervisory Board Members
As of June 25, 2020 (Numbers of shares held are as of March 31, 2020)

External Directors

Number of shares held in SBG:-

Board Director, Independent Officer

Board Director, Independent Officer

Masami Iijima

Yutaka Matsuo

Apr 1974 Joined MITSUI & CO., LTD.
Apr 2006	Managing Officer, Chief Operating Officer of Iron & Steel Raw Materials andNon-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. (to present)
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 2002
Aug 2005
Oct 2007
Apr 2019
Jun 2019

Number of shares held in SBG:-

Board Director, Independent Officer

Board Director, Independent Officer

Lip-Bu Tan

Yuko Kawamoto

Dec 1987
Oct 2008
Nov 2015
Apr 2019
Jun 2020

Apr 1982 Joined The Bank of Tokyo, Ltd. (currently MUFG Bank, Ltd.)
Sep 1988 Joined McKinsey & Company, Inc.
Jul 2001 Senior Expert, McKinsey & Company, Inc.
Apr 2004	Professor, Graduate School of Finance, Accounting and Law, Waseda University (currently
Waseda Business School (Graduate School of Business and Finance)) (to present)
Jun 2004 Director, Osaka Exchange, Inc. (currently Japan Exchange Group)Jun 2006 Audit & Supervisory Board Member, Tokio Marine Holdings, Inc.
Jun 2007 Director, EMOBILE Ltd. (currently SoftBank Corp.)
Sep 2011 Director, Thomson Reuters Founders Share Company (to present)
Jun 2013 Member of the Board of Directors, Mitsubishi UFJ Financial Group, Inc.
Dec 2014 Commission Member, National Public Safety Commission
Jun 2020 Director, Panasonic Corporation (to present)
Jun 2020 Board Director, SoftBank Group Corp. (to present)

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

Number of shares held in SBG:-

SoftBank Group Corp. ANNUAL REPORT 2020

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)

Number of shares held in SBG:-

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

050

Board Directors and Audit & Supervisory Board Members
As of June 25, 2020 (Numbers of shares held are as of March 31, 2020)

Audit & Supervisory Board Member
Full-time Audit & Supervisory Board Member

Masato Suzaki
Apr 1975 Joined Mitsubishi Corporation
Dec 1983 Master of Business Administration (MBA), School of Global Management (U.S.)
Feb 2002	Joined SoftBank Corp. (currently SoftBank Group Corp.), General Manager of Legal Department
Jul 2012	Corporate Officer, General Manager of Legal Department, SoftBank Corp. (currently SoftBank
Group Corp.)
Oct 2013	Corporate Officer, General Manager of Legal Department, SoftBank Corp. (currently SoftBank
Group Corp.); Group Compliance Officer
Sep 2016	Corporate Officer, Head of Legal Unit; General Manager of Legal Department of SoftBank Group
Corp.; Group Compliance Officer
Jun 2017	Full-time Audit & Supervisory Board Member, SoftBank Group Corp. (to present)

Number of shares held in SBG:
10 thousand shares

External Audit & Supervisory Board Members
Full-time Audit & Supervisory Board Member, Independent Officer

Audit & Supervisory Board Member

Maurice Atsushi Toyama

Soichiro Uno

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

Lawyer

Sep 1977 Joined San Francisco office of Price Waterhouse (currently PricewaterhouseCoopers)
Aug 1981 Certified Public Accountant, State of California, U.S.
Jun 2006 Partner, PricewaterhouseCoopers Aarata
Jun 2015	Full-time Audit & Supervisory Board Member, SoftBank Corp. (currently SoftBank Group Corp.;
to present)

Apr 1988	Joined Nagashima & Ohno Law Office (currently Nagashima Ohno & Tsunematsu), admitted topractice 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)

Number of shares held in SBG:-

Number of shares held in SBG:-

Audit & Supervisory Board Member, Independent Officer

Hidekazu Kubokawa
Certified Public Accountant, Certified Tax Accountant

Number of shares held in SBG:
104 thousand shares

SoftBank Group Corp. ANNUAL REPORT 2020

Nov 1976 Joined Chuo Accounting Corporation
Aug 1980 Registered as a Certified Public Accountant
Jul 1986	Founded Kubokawa CPA Office (currently Yotsuya Partners Accounting Firm), Representative
Partner (to present)
Mar 1987 Registered as a Certified Tax Accountant
Feb 1989	Audit & Supervisory Board Member, SOFTBANK Corp. Japan (currently SoftBank Group Corp.; topresent)
Mar 2000 Audit & Supervisory Board Member, Digital Arts Inc.
Jun 2005 Corporate Auditor, KYORITSU PRINTING CO., LTD. (to present)
Jun 2006 Auditor, Pado Corporation
Aug 2011 Supervisory Director, HEIWA REAL ESTATE REIT, Inc.
Jun 2016 Director (Audit & Supervisory Committee Member), Digital Arts Inc. (to present)

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

051

Financial Section

053 Graphs: Key Consolidated Financial Data
055 Eleven-Year Key Consolidated Financial Data
057 Management’s Discussion and Analysis ofResults of Operations and Financial Position
089 Risk Factors
098 Consolidated Financial Statements
109 Notes to Consolidated Financial Statements
240 Independent Auditor’s Report

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

052

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

Net sales

Operating income

Net sales

Operating income

8,881.8

8,901.0

2,500

9,158.8

6,093.5

6,185.1

2,500

2,073.6

908.9

1,250

1,026.0

1,303.8

1,256.602,500-1,250’17’18FY2019’19(FY)

Net income attributable to owners of the parent (left)(Billions of yen)
1,500

1,426.3-2,500

’15

’16

474.2
201.25643.50’19(FY)Total assets-1,411.5
14,115-2,500

’15

’16

(Yen)

(Billions of yen)
40,000750

30,0000

20,000634.08(FY)

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

36,096.5

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

37,257.3

40

5,913.6

6,000

24,634.2(%)

7,621.5

8,000

31,180.5

466.77’19– 97.9 % YoY

Income before income tax

Equity attributable to owners of
the parent (left)
1,500

’18

’17

FY2019Basic EPS (right)

1,411.2

35.5-1,250-1,364.6

deteriorated ¥3.4 trillion YoY

1,039.0
750

’18

’17

Operating loss

Net income attributable to owners of the parent / Basic EPS

384.6

125.6
0

FY2019

+1.5% YoY

Net sales

814.6

712.5

0,000

-1,931.3
’16

919.1

1,250

303.0

5,000

’15

Income before income tax from SoftBank Vision Fund andother SBIA-managed funds

1,682.7

7,500

0Income before income tax(Billions of yen)(Billions of yen)(Billions of yen)
10,000

Income before income tax
Operating income from SoftBank Vision Fund andother SBIA-managed funds

30

5,184.2

20,707.2

02,613.6-478.50-750

3,586.4

4,000

-750

10,000-1,500

0

2,000

12.6

14.6

20

21.1
16.6

15.9

10

-961.6-1,500

’15

’16

’17

FY2019Net loss attributable to owners of the parent
Basic EPS
Diluted EPS

’18

’19

(FY)

deteriorated ¥2.4 trillion YoY¥ (478.50)

’15

’16

’17

’18

FYE2019

’19

(FYE)

+3.2% YoY

Total assets¥ (485.33)

0

’15

’16

’17

’18

’19

(FYE)

0

FYE2019

Equity attributable to owners of the parent– 22.4% YoY

Ratio of equity attributable toowners of the parent to total assets

15.9%

Notes: 1. Sprint was reclassified as a disposal group classified as held for sale at the end of FY2019. Net sales, operating income, and income before income taxes for FY2019 and FY2018 do not include Sprint's results.
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 has not been restated.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

053

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

ROE / ROA
ROE

Equity per share attributable to owners of the parent

Dividend per share / Payout ratio

(Yen)

(Yen)

4,000

50

ROA

Dividend per share (left)

(%)

46.0

50

Payout ratio (right)(%)

3,380.33
40
30

2,151.13

23.7

20

17.4

6.3

10

3.7

20.5
20

1,139.42

0

-2.6

2.3

-10

15

30

1,646.20

2,000

4.2

20

40

2,619.32

3,000

22.0

25

44.0

1,000

22.0

22.0

10

10.2

4.7

3.4

10

22.0

3.5

5

-14.2

-20

’15

’16

’17

’18

’19

(FY)

0

’15

’16

’17

’18

FYE2019

FY2019–14.2%
–2.6%

ROE
ROA

Equity per share attributable to owners of the parent

’19

0

(FYE)

’15

’16

’17

’18

FY2019¥2,619.32

’19

(FY)

0

Annual dividend: ¥44

Dividend per share

Market capitalization

History of share repurchase(Trillions of yen)

Total amount ofrepurchase(Maximum as per
Board resolution)

Total number ofshares repurchased(Maximum as per
Board resolution)¥10.8 billion

4,000,000

From Sep 2, 2011 to Sep 7, 2011¥11.9 billion

5,028,800

From Oct 3, 2011 to Oct 5, 2011¥32.5 billion

4,272,000

From Nov 1, 2013 to Nov 5, 2013¥120 billion

15,795,000

From Aug 10, 2015 to Aug 17, 2015

¥500 billion

85,140,800

From Feb 16, 2016 to Aug 17, 2016

¥600 billion

55,753,200

From Feb 7, 2019 to May 14, 2019¥500 billion

107,679,300

From Mar 16, 2020 to Jun 15, 2020

1(¥500 billion)*(135,000,000)( From Mar 18, 2020 to Mar 31, 2021)(¥500 billion)*1(115,000,000)( From Jun 26, 2020 to Mar 31, 2021)

Repurchase period(Repurchase period as per Board
resolution)

15

12

9

6

3

0

’05

’06

’07

’08

’09

’10

’11

’12

’13

’14

’15

’16

’17

’18

’19

’20

(CY)

*1 On March 23, 2020, the Company announced the decision on a program to sell or monetize up to ¥4.5 trillion of assets it held. A part of the funds obtained from the sale and monetization will be used to repurchase
up to ¥2 trillion of the Company’s common stock. Based on the program, on May 15, 2020, the Company
decided to repurchase up to ¥500 billion (up to 135,000,000 shares), and on June 25, 2020, the Company
decided to repurchase up to ¥500 billion (up to 115,000,000 shares) of its own shares.
Notes: 1. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. Equity per share attributable to owners of the parent and dividend per share have been retroactively adjusted to reflect the impact of the share split.
2. 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 has not been restated.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

054

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

(Units)

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

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

(Units)SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

FY2010FY2011FY2012FY2013

2,763,406
465,871289,250
96,716
4,462,875
470,532
2,195,471
1,501,074
668,050(277,162)(159,563)
230,719
687,682

3,004,640
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

2.2
22.9
10.5

4.2
34.8
13.3

6.6
40.3
19.1

6.0
29.7
22.3

4.4
29.5
11.6

44.70
43.20
217.37
2.50

87.64
84.29
286.072.50

142.89139.38426.3520.00

166.26164.04646.7820.00

218.48217.34812.1720.00

1,082,329
172
83
12
21,885

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

1,188,456
756
105
13
70,336

%
%
%
¥
¥
¥
¥
’000

Message from Our CEO

IFRS

FY2009Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

055

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

(Units)

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

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

(Units)

%
%
%
¥
¥
¥
¥
’000

FY2014FY2015FY2016FY2017FY2018FY20198,504,135
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

8,881,777
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

6,185,093(1,364,633)
35,492(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

3.5
28.0
13.5

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

281.10279.381,196.74
20.00

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

1,189,197
769
120
14
66,154

1,146,900
739
122
12
63,591

1,089,282
763
130
12
68,402

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

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

2,067,996
1,475
455
21
80,909Notes: 1. The Company adopted IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” in FY2018, and IFRS 16 “Leases” in FY2019.
			 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 fiscal 2013 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 fiscal 2014 wererevised retrospectively and presented under discontinued operations. Furthermore, as of August 16, 2016, GungHo no longer qualified as an equity method associate. This is a result of a transaction where the Company tendered 245,592,400 of its shares in the tender offer by GungHo, which was executed from June 23, 2016 andcompleted on July 21, 2016.
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 fiscal 2015 was revised retrospectively and presented under discontinued operations.
*1 Includes lease liabilities from fiscal 2019. Deposits for banking business of The Japan Net Bank are not included in interest-bearing debt.
*2 Calculated by subtracting cash position (cash and cash equivalents + short-term investments recorded as current assets (both excluding those of The Japan Net Bank)) from the presented interest-bearing debt.
*3 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.
*4 Number of subsidiaries and associates with publicly offered shares (including SFJ Capital Limited, which issued preferred (restricted voting) securities from fiscal 2011 to fiscal 2014)

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

056

Management’s Discussion and Analysis of Results of Operations and Financial Position
As of June 25, 2020

Results of Operations

Highlights of results
1. Operating loss of ¥1.4 trillion (deteriorated ¥3.4 trillion yoy)
– Operating loss from SoftBank Vision Fund and other SBIA-managed funds of ¥1.9 trillion: Of this, unrealized valuation loss (net) was ¥1.9 trillion from investments held by
SoftBank Vision Fund at the fiscal year-end. Fair values of Uber, WeWork and its three affiliates1 decreased, and total fair value of other portfolio companies decreased significantly inthe fourth quarter, primarily due to the impact of the COVID-19 outbreak.
– The SoftBank segment showed robust growth, with operating income increasing 7.4% yoy.

2. Net loss attributable to owners of the parent of ¥961.6 billion (deteriorated ¥2.4 trillion yoy)
– Income on equity method investments of ¥638.7 billion, including a gain of ¥286.5 billion associated with the receipt of Ant Financial shares by Alibaba.
– Dilution gain from changes in equity interest of ¥339.8 billion recorded mainly in conjunction with a new issuance of shares by Alibaba upon its listing in Hong Kong.
– Gain relating to settlement of variable prepaid forward contract using Alibaba shares of ¥1,218.5 billion: Impact on income was ¥856.8 billion, net of the ¥361.8 billion*
impact on income taxes caused by a reversal of deferred tax assets.
– Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds of ¥540.9 billion– Finance cost of ¥300.9 billion*– Losses totaling ¥720.8 billion* recorded related to the investment in WeWork held by a wholly owned subsidiary of the Company (mainly recorded as loss from financial
instruments at FVTPL and provisions for allowance for loan commitment losses and financial guarantee contract losses)*recorded as cost for fiscal 2019

Adoption of IFRS 16
In the first quarter, the Company adopted IFRS 16 “Leases.” Due to the adoption of IFRS 16, the cumulative impact of the adoption was recognized as an adjustment to the balance ofretained earnings on the date of adoption (April 1, 2019), and the Company has not adjusted the presentation of information of the previous fiscal year. The Company does not adopt IFRS
16 with respect to lease transactions of intangible assets. See “3. Significant accounting policies” in “Notes to Consolidated Financial Statements” for details.

Main impacts of adopting IFRS 16
Consolidated Statement of Financial Position
On the date of adoption of IFRS 16, total assets increased by ¥1,336,695 million, total liabilities by ¥1,324,055 million,
and total equity by ¥12,640 million. This was mainly due to the recording of right-of-use assets and lease liabilities
related to operating leases, which were previously accounted for as leases.

Consolidated Statement of Income
The expenses related to operating leases, recorded as right-of-use assets and lease liabilities on the date of the
adoption, are recorded as depreciation and interest expenses instead of lease expenses as recorded previously.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Note: Abbreviations for Management’s Discussion and Analysis of Results of Operations andFinancial Position
The fiscal year / Fiscal 2019: Fiscal year ended March 31, 2020
The first quarter: Three-month period ended June 30, 2019
The second quarter: Three-month period ended September 30, 2019
The third quarter: Three-month period ended December 31, 2019
The fourth quarter: Three-month period ended March 31, 2020
The previous fiscal year / Fiscal 2018: Fiscal year ended March 31, 2019
The fiscal year-end: March 31, 2020
The previous fiscal year-end: March 31, 2019

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

057

Overall Results for Fiscal 2019
(Millions of yen)

Continued operations
Net sales������������������������������������������������������
Operating income (excluding income from
SoftBank Vision Fund and other SBIAmanaged funds)��������������������������������������
Operating income from SoftBank Vision
Fund and other SBIA-managed funds������
Operating income����������������������������������������
Finance cost ����������������������������������������������
Income on equity method investments
Dilution gain from changes in equity interest ���Foreign exchange gain (loss)����������������������
Derivative gain (loss)����������������������������������
Gain relating to settlement of variable
prepaid forward contract using Alibaba
shares������������������������������������������������������
Gain (loss) from financial instruments at FVTPL*1����
Change in third-party interests in SoftBank
Vision Fund and other SBIA-managed
funds*2 ��������������������������������������������������
Other non-operating loss ����������������������������
Income before income tax����������������������������
Income taxes������������������������������������������
Net income from continuing operations ������

ChangeChange %Fiscal 2018

Fiscal 2019

6,093,548

6,185,093

91,5451.5%

816,995

566,712(250,283)(30.6%)(1,931,345)(1,364,633)(300,948)(341,937)
638,717
320,101
44,068339,842
10,894(11,107)
158,423(71,811)(3,187,986)(3,438,269)––

1,256,641
2,073,636

1. Net sales
Net sales increased ¥91,545 million (1.5%) year on year, to ¥6,185,093 million. Net sales
increased in the SoftBank and Arm segments, but decreased in the Brightstar segment.
Net sales

Operating income(Billions of yen)(Billions of yen)

8,000

2,500

6,185.1

6,093.5
6,000

40,989 (12.0%)
318,616
99.5%
295,774 671.2%(22,001)–(230,234)
–

1,500
1,000

4,000

500
0

2,000

–
36,832(586,152)(33,192)
1,682,673(237,023)
1,445,650

1,218,527(668,463)

1,218,527(705,295)

540,930(285,562)
35,492(797,697)(762,205)

1,127,082–(252,370) 760.4%(1,647,181) (97.9%)

–
–

-500
-1,000

0

’18

’19

(560,674) 236.5%(2,207,855)–(FY)

Fiscal 2019

Fiscal 2018
Q3

Q4

Q1

Q2

Q3

Q4

¥108.71¥111.55¥112.83¥110.46¥110.00¥107.70¥108.98¥109.22

8,968(38,555)(800,760)(961,576)(47,523)–

1,454,618
1,411,199(2,255,378)(2,372,775)––

Rates at the end of the period

Total comprehensive income������������������������
Comprehensive income attributable toowners of the parent ��������������������������������

1,502,295(1,290,339)(2,792,634)

–
–

’19

Q2

Net income��������������������������������������������������
Net income attributable to owners of the parent�������

(2,865,822)-1,364.6’18

Q1

USD / JPY��������������

(1,425,587)-1,500(FY)

Exchange rates used for translations
Average rate for the quarter

Discontinued operations
Net income from discontinued operations����

1,440,235

2,073.6

2,000

USD / JPY��������������
GBP / JPY ��������������

March 31, 2019

March 31, 2020

¥110.99¥108.83¥144.98¥133.32*1 Indicates gain and loss arising from changes in the fair values of investments held by the Company outside of SoftBank Vision Fundand other SBIA-managed funds.
*2 Indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions and performance-based
distributions. The distributions are based on the gain and loss on investments at SoftBank Vision Fund and other SBIA-managed funds,
net of management and performance fees payable to SBIA, a wholly owned subsidiary of the Company, and operating and otherexpenses of SoftBank Vision Fund and other SBIA-managed funds. See “(2) Third-party interests in SoftBank Vision Fund and Delta
Fund” under “8. SoftBank Vision Fund and other SBIA-managed funds business” in “Notes to Consolidated Financial Statements” fordetails.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information058

2. Operating income
Operating loss was ¥1,364,633 million, deteriorating ¥3,438,269 million year on year.
Operating income (excluding income from SoftBank Vision Fund and other SBIA-managed
funds) decreased ¥ 250,283 million (30.6%) year on year, to ¥566,712 million. Segment
income improved ¥63,505 million in the SoftBank segment and ¥18,068 million in the
Brightstar segment. However, segment income deteriorated ¥176,785 million in the Armsegment and ¥159,496 million in the Other segment. Segment income in the Arm segment in
the previous fiscal year included gain relating to loss of control over subsidiaries of ¥176,261
million, which was recognized as a result of Arm’s Chinese subsidiary becoming a joint venture.
Operating loss from SoftBank Vision Fund and Other SBIA-Managed Funds deteriorated¥3,187,986 million year on year, to ¥1,931,345 million. Unrealized loss on valuation of¥1,869,283 million from investments held by SoftBank Vision Fund at the fiscal yearend was recorded due to a decrease in the fair values of investments including Uber
Technologies, Inc. (“Uber”) and WeWork and its three affiliates1 along with a significant
decrease in the total fair value of other portfolio companies in the fourth quarter, mainly
due to the impact of the COVID-19 outbreak. See page 66 “SoftBank Vision Fund andOther SBIA-Managed Funds Segment” for details.

Income on equity method investments increased ¥318,616 million (99.5%) year on year,to ¥638,717 million. Income on equity method investments related to Alibaba increased¥321,458 million (94.9%) year on year, to ¥660,141 million. Alibaba received newly issued
shares (a 33% equity interest) of Ant Small and Micro Financial Services Group Co., Ltd.
(“Ant Financial,” operator of the electronic payment service Alipay) in September 2019,
pursuant to the 2014 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 theresult from the transfer of such intellectual property rights and assets to Ant Financial andthe basis difference determined based on Alibaba’s share of Ant Financial’s net assets, netof its corresponding deferred tax effect. This boosted income on equity method investments
related to Alibaba by ¥286,473 million.
Net income attributable to Alibaba and the Company’s income on equity method
investments related to Alibaba
Twelve months ended December 31

3. Income before income tax
Income before income tax decreased ¥1,647,181 million (97.9%) year on year, to ¥35,492
million. Major changes in non-operating income and loss are follows.
Finance cost decreased ¥40,989 million (12.0%) year on year, to ¥300,948 million. Interest
expenses increased ¥17,313 million at SoftBank Corp. but decreased ¥51,826 million at
SoftBank Group Corp. (“SBG”).2 This was mainly because SoftBank Corp. borrowed ¥1.6
trillion through a senior loan in August 2018 in preparation for listing and used the entire
amount for repayment of its borrowings from SBG, which in turn used the entire amountto partially repay its own senior loan. This early repayment of borrowings resulted in a fullamortization of borrowing expenses of ¥24,051 million, which also pushed up interest
expense at SBG in the previous fiscal year.
(Millions of yen)
Fiscal 2018

Fiscal 2019

Finance Cost �������������������������������������������������������������������������������������
SoftBank Group Corp.2 .��������������������������������������������������������������

341,937
250,070

300,948
198,243

SoftBank Vision Fund and other SBIA-managed funds��������������

33,14022,459

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

2018

2019

ChangeMillion CNY

Million CNY

Million CNY

69,642

172,126

102,484

Million CNY

Million CNY

Million CNY

70,714

164,042

93,328

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

Fiscal year ended March 31
2019

2020

Change29.12%

25.32%(3.8) pp

Million CNY

Million CNY

Million CNY

20,64442,51021,866

Income on equity method investments related to Alibaba(Reference) Interest ratio as of December 31�������������
Income on equity method investments���������������������
(Reference) Effective exchange rate CNY / JPY ���������
Income on equity method investments���������������������

Message from Our CEO

Who We Are

Our Path to Continued Growth¥16.37¥15.56¥(0.81)Million CNY

Million CNY

Million CNY

338,683

660,141

321,458

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

059

Dilution gain from changes in equity interest increased ¥295,774 million (671.2%) year on
year, to ¥339,842 million. On November 26, 2019, Alibaba listed its shares on The Stock
Exchange of Hong Kong Limited and newly issued 575 million shares of common stock,
including a subsequent overallotment. Mainly due to this impact, the Company recorded adilution gain from changes in equity interest of ¥339,374 million. There were no changes in
the number of shares held by the Company and its wholly owned subsidiaries (5,390 million
shares of common stock in total).
Foreign exchange loss deteriorated ¥22,001 million year on year, to ¥11,107 million.
Derivative loss deteriorated ¥230,234 million year on year, to ¥71,811 million. As described
below in “Investments in WeWork,” the Company holds warrants that are convertible into
preferred stock of WeWork at an exercise price of $0.01 per share. The Company recorded
a change of ¥76,259 million in the fair value of these warrants between the time of thecontract and the fiscal year-end as a derivative loss. In the previous fiscal year, the Company
recorded derivative gain of ¥177,373 million arising up to the point of settlement of a collartransaction related to NVIDIA Corporation shares in January 2019.
Gain relating to settlement of variable prepaid forward contract using Alibaba shares wasrecorded ¥1,218,527 million. In June 2019, the Company delivered 73 million American
Depositary Shares of Alibaba to the Mandatory Exchangeable Trust (the “Trust”) for thesettlement of the variable prepaid forward contract using Alibaba shares. This contract wasentered into between the Company’s wholly owned subsidiary, West Raptor Holdings, LLC,
and the Trust in June 2016 as part of the Company’s series of transactions monetizing a
portion of its Alibaba holding.
Loss from financial instruments at FVTPL deteriorated ¥705,295 million year on year, to¥668,463 million. Loss of ¥488,479 million was recorded due to decreases in the fairvalue of investments in WeWork held by the Company’s wholly owned subsidiary. See“Investments in WeWork” below for details.
Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds
amounted to decrease ¥540,930 million, compared with an increase of ¥586,152 million
in the previous fiscal year. A Decease in third-party interest is reflected as an increase in the
Company’s income.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Other non-operating loss increased ¥252,370 million (760.4%) year on year, to ¥285,562
million. The Company recorded provisions for allowance for financial guarantee contract
losses and loan commitment losses of ¥52,349 million and ¥90,210 million, respectively,in connection with (a) credit support by the Company for a letter of credit facility provided
by financial institutions and (c) purchase by the Company’s wholly owned subsidiary of
unsecured notes to be issued by WeWork described in “(3) Credit Support and Notes
Purchase” under “Investments in WeWork” below, due to expected credit loss exceeding
the initially recognized amount less accumulated amortization.
In March 2020, OneWeb Global Limited (“OneWeb”), an equity method associate of
the Company, filed for relief under Chapter 11 of the United States Bankruptcy Code. As aresult, the Company recorded impairment loss on equity method investments of ¥49,198
million for investments made to OneWeb and provisions for doubtful accounts of ¥65,913
million related to the loans made to OneWeb.
See “Investments in WeWork” and “Investments and loans made to OneWeb” below,
respectively, for details.
4. Net income attributable to owners of the parent
Net loss attributable to owners of the parent was ¥961,576 million, deteriorating¥2,372,775 million year on year.
Income taxes increased ¥560,674 million year on year, to ¥797,697 million. The effective
tax rate significantly exceeded the statutory income tax rate in Japan of 31.5%. This was
mainly because deferred tax assets were not recognized for losses at entities in investment
business, although income taxes were recorded at SoftBank Corp. and Yahoo Japan
Corporation.
Net loss from discontinued operations deteriorated ¥47,523 million year on year, to ¥38,555
million. Net loss of Sprint from April 1, 2019 to March 31, 2020 was recorded.
5. Comprehensive income
Comprehensive loss deteriorated ¥2,792,634 million year on year, to ¥1,290,339 million.
Of this, comprehensive loss attributable to owners of the parent deteriorated ¥2,865,822
million year on year, to ¥1,425,587 million.

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

060

Investments in WeWork
A wholly owned subsidiary of the Company (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”) has invested in WeWork, which operates the co-working “space-as-aservice” business WeWork. Separately, SoftBank Vision Fund has invested in WeWork
and its three affiliates—WeWork Greater China Holding Company B.V. (“WeWork
China”), WeWork Asia Holding Company B.V. (“WeWork Asia”), and WeWork Japan
GK (“WeWork Japan”). As of March 31, 2020, the cumulative amount of investments
by the WeWork Investment Subsidiary and SoftBank Vision Fund in WeWork totaled$10.3 billion, with a carrying amount of $2.4 billion.
The Company recognized that the fair value of WeWork’s entire equity decreased
to $7.8 billion as of September 30, 2019, reflecting WeWork’s withdrawal of its public
offering plan and a significant revision of its business plan, as well as an agreement
between the Company and WeWork on October 22, 2019, taking into account theeffect of (1) to (4) below. The fair value of WeWork’s entire equity, calculated using theincome approach (discounted cash flow method), was $7.3 billion as of December 31,
2019 and $2.9 billion as of March 31, 2020. The significant decline from December 31,
2019 to March 31, 2020 was due to, in light of the COVID-19 outbreak, (i) a significant
reduction in the multiples used in calculating the terminal value to account for the
decline in the share price of comparable peer public companies, and (ii) an increasein the discount rate to account for price changes in WeWork’s publicly traded seniorunsecured notes.
In accordance with a change in WeWork’s corporate governance on October 30,
2019, the Company was given the right to nominate five out of the 10 directors on
WeWork’s board of directors (with one of those five designated by SoftBank VisionFund). As a result, WeWork became an associate of the Company as of such date.
Details and progress of the agreement between the Company and WeWork dated
October 22, 2019 are as follows. (1) to (3) are related to the WeWork Investment
Subsidiary and (4) is related to SoftBank Vision Fund.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO(1) Exercise price reduction of existing commitment and early payment
On October 30, 2019, the WeWork Investment Subsidiary paid the full amount of$1.5 billion for the existing commitment that was originally expected to be invested 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 portionwas converted into preferred stock of WeWork in April 2020.
(2) Tender offer
The WeWork Investment Subsidiary agreed to commence a tender offer (the “Tender
Offer”) worth up to $3 billion to purchase WeWork’s common stock and preferredstock from shareholders of WeWork other than the Company at a price of $19.19 per
share. The Company launched the Tender Offer in November 2019, 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.
(3) Credit support and notes purchase
The Company agreed 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 (b) up to $1.1 billion in senior secured notes
and (c) up to $2.2 billion in unsecured notes to be issued by WeWork.
Regarding (a), in December 2019, the Company entered into an agreement withfinancial institutions that designates the Company as a co-obligor with WeWork, while
the two parties separately agreed that the Company has the right of indemnification
against WeWork whenever the Company services such obligations. Regarding (c), theWeWork Investment Subsidiary entered into an agreement with WeWork in December
2019. WeWork has not issued any of the unsecured notes as of March 31, 2020.
With the Company’s entry into the agreements regarding (a) and (c), as
consideration, the Company has received warrants that are exercisable for WeWork
preferred stock at an exercise price of $0.01 per share. The warrants have become
exercisable after receiving the necessary regulatory approvals; however, as of June 25,
2020, the Company has not exercised any of the warrants.
Regarding (b), the Company’s obligation to purchase or arrange for purchase suchdebt ceased to exist upon the termination of the Tender Offer as it was subject to andconditioned upon the completion of the Tender Offer.

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

061

(4) Exchange of WeWork China and WeWork Asia shares for preferred stock of
WeWorkSubject to satisfactory negotiations of definitive documentation and satisfaction ofcertain closing conditions, it was agreed that all of SoftBank Vision Fund’s interests
in WeWork China and WeWork Asia were to be exchanged for preferred stock of
WeWork. The exchange of WeWork Asia shares for WeWork’s preferred stock at$11.60 per share was completed in April 2020, while as of March 31, 2020, SoftBank
Vision Fund and other parties remain in discussions with respect to the exchange of
WeWork China shares for WeWork’s preferred stock.
Upon completion of these transactions as contemplated in the agreement between
the Company and WeWork dated October 22, 2019 (except for the Tender Offer
that was terminated), the fully diluted economic ownership held by the Company(including SoftBank Vision Fund) of WeWork is greater than 50%. Since the Company
will not hold a majority of voting rights at any general shareholders meeting or boardof directors meeting and cannot control WeWork due to provisions of WeWork’s
certificate of incorporation and shareholders agreement, WeWork is not a subsidiary of
the Company. There is no other party acting as the Company’s de facto agent.

below-market interest rate (“loan commitment”). Upon the execution of the contract,for expected credit losses, the Company recorded allowance for financial guarantee
contract losses of $360 million (¥39,107 million) and allowance for loan commitment
losses of $508 million (¥55,088 million) under other financial liabilities (current) in
the Consolidated Statement of Financial Position. On March 31, 2020, the expectedcredit losses for the financial guarantee contract and loan commitment exceeded theinitially recognized amount less accumulated amortization, and the Company therefore
recognized provisions for allowance for financial guarantee contract losses and loan
commitment losses of $479 million (¥52,349 million) and $826 million (¥90,210
million), respectively. As of March 31, 2020, the Company recorded allowance forfinancial guarantee contract losses of $819 million (¥89,202 million) and allowance
for loan commitment losses of $1,334 million (¥145,133 million) under other financial
liabilities (current) in the Consolidated Statement of Financial Position.
With respect to SoftBank Vision Fund’s investments in WeWork and its three
affiliates—WeWork China, WeWork Asia, and WeWork Japan—both the common
stock and preferred stock continue to be measured at fair value, with the change tobe recorded as a gain or loss. As of March 31, 2020, the cumulative amount of theseinvestments totaled $4.3 billion, with fair value of $0.9 billion.

The investment in WeWork by the WeWork Investment Subsidiary consists of common
stock, preferred stock, and a $1.5 billion paid commitment, the full amount of which
was paid on October 30, 2019 with the exercise price lowered to $11.60 per share.
In addition, the Company also owns warrants that are exercisable for preferred stockat an exercise price of $0.01 per share that it acquired as consideration for the credit
support and unsecured notes purchase commitment. The common stock is accounted
for using the equity method from October 30, 2019, the date on which WeWork
became an associate of the Company. The preferred stock, advance payment forinvestment, and warrants that are exercisable for preferred stock at $0.01 per share
are measured at fair value, with the change recorded as a gain or loss. See page 63“Investments in WeWork by the WeWork Investment Subsidiary (as of March 31,2020)” for details.
The (a) credit support for a $1.75 billion letter of credit facility provided by financial
institutions to WeWork in “(3) Credit Support and Notes Purchase” above corresponds
to a financial guarantee contract and the (c) purchase of up to $2.2 billion in unsecured
notes to be issued by WeWork corresponds to a commitment to provide a loan at a

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

062

Investments in WeWork by the WeWork Investment Subsidiary (as of March 31, 2020)(Millions of U.S. dollars)
Cumulative
investment
amountInvestment type

Cumulative
gain (loss)

Account inConsolidated
Statement of
Financial Position

Investment
securities
Common stock

4,500(3,663)Preferred stockAfterconversion*3
Beforeconversion*4$1.5 billion paid
commitment (Exercised After
exerciseon October 30, 2019with the exercise priceof $11.60 per share,
down from the original Before exercise$110.00 per share)
Warrants with exercise
price of $0.01 per
share

Before exercise

Total
Liabilities related to financial guarantee contract
Liabilities related to loan commitment

200

(138)

1,300

(894)

–

–

–

*6
(703)

6,000

(5,398)

–

(459)

–

(826)

Investments
accounted forusing the equity
methodInvestment
securities
Other financial
assetsDerivative
financialliabilities
Derivative
financial assets

Carrying
amounts at
the fiscal
year-end

Gain (loss) recorded in Consolidated Statement of Income
Account in Consolidated
Statement of Income

Q2

Q3

Q4

Fiscal 2019

(769)

–

–

(417)

1

–

*
(29)

1

*
(11)

*1
(40)

–
(2,901)

*2
(78)
524

*2
(35)
(533)

*2
(113)
(3,075)

–

(51)

(87)

(138)

406

–

(331)

(563)

(894)

–

*5
(1,011)

*5
1,196

–

–

–

*6
(155)

*6
(548)

*6
(703)

2

(4,681)

1,076(1,777)(5,380)

–

–

–

*7
(459)

*7
(459)

–

–

–

*8
(826)

*8
(826)

–

14
823
62

Gain (loss) fromfinancial instruments
at FVTPL

Breakdownomitted

Derivative gain (loss)

*6
165
1,470

Other financial
liabilities
Other financial
liabilities

Q1

Loss from financial
instruments at FVTPL
Loss on equity
method investments
Other non-operating
loss

819
1,334

Other non-operating
income (loss)
Other non-operating
income (loss)*1 WeWork became the Company’s associate on October 30, 2019. As a result, net loss of WeWork from October 30, 2019 to March 31, 2020 corresponding to the Company’s holding of common stock (2.75% as of March 31, 2020; before dilution) was recorded.
*2 Indicates the impairment loss recorded due to the significant reduction in fair value of common stock.
*3 The $200 million portion of the $1.5 billion paid commitment was converted into preferred stock in November 2019.
*4 The $1.3 billion portion of the $1.5 billion paid commitment was paid in advance and later converted into preferred stock in April 2020.
*5 The Company recognized a cumulative valuation loss of $1,196 million from the previous fiscal year-end to the second quarter-end, on the warrants held by the WeWork Investment Subsidiary (an unexecuted commitment of $1.5 billion) and recorded it as derivative
financial liabilities in the Condensed Interim Consolidated Statement of Financial Position. The Company also recorded the corresponding derivative loss in the Condensed Interim Consolidated Statement of Income for the six-month period ended September 30, 2019.
At the third quarter-end, the entire amount of the relevant derivative financial liabilities was reversed, following the Company’s payment of $1.5 billion on October 30, 2019 after changing the terms and conditions of that payment obligation.
*6 The Company owns warrants that are convertible into preferred stock at an exercise price of $0.01 per share that it acquired as consideration for the credit support and unsecured notes purchase commitment and recorded the fair value of $868 million of such warrants
at the time of the agreements as “derivative financial assets” in the Consolidated Statement of Financial Position. The Company afterwards recognized derivative loss on warrants with exercise price of $0.01 per share mainly due to markdown of WeWork’s entire equity
value from $7.8 billion as of September 30, 2019 to $7.3 billion as of December 31, 2019 and to $2.9 billion as of March 31, 2020.
*7 Loss on liabilities related to financial guarantee contract includes a gain of $20 million arising from regular amortization and provisions for allowance for financial guarantee contract losses of $479 million due to expected credit loss exceeding the initially recognizedamount less accumulated amortization.
*8 The Company recorded provisions for allowance for loan commitment losses due to expected credit loss exceeding the initially recognized amount less accumulated amortization.

SoftBank Group Corp. ANNUAL REPORT 2020

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Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

063

Investments in WeWork by SoftBank Vision Fund (as of March 31, 2020)(Millions of U.S. dollars)

Investee

Investment type

WeWorkCommon stock
Preferred stock

WeWork and its
three affiliates(Total)Common stock
Preferred stock
Total

Cumulative
investment
amountCumulative
gain (loss)

3,000(2,477)

1,250

(835)

4,250

(3,312)

Account in Consolidated
Statement of Financial
Position

Carrying
amounts at
the fiscal
year-end

Investments from
SoftBank Vision Fundand other SBIAmanaged funds
accounted for using
FVTPL

523

415

Gain (loss) recorded in Consolidated Statement of Income
Account in Consolidated
Statement of Income

Operating income from
SoftBank Vision Fundand other SBIAmanaged funds

938

Q1

Q2

Q3

Q4

Fiscal 2019(32)

(3,043)40(472)(3,507)

(23)

(395)

(64)

(593)

(1,075)(55)(3,438)(24)(1,065)(4,582)

Investments and loans made to OneWeb
In March 2020, the communication satellite venture OneWeb, an equity method associate of the Company, filed for relief under Chapter 11 of the United States Bankruptcy
Code. The Company recorded the following losses in relation to the investments and loans made to OneWeb. As of March 31, 2020, the carrying amount of assets related to theinvestments and loans made to OneWeb is zero.
(Millions of U.S. dollars)
Cumulative amount ofinvestments and loans

Types

Common stock
Preferred stock

Loans to OneWeb’s shareholder*
Total

Fiscal 2018

Fiscal 2019

(34)

(67)

Other non-operating income (loss) (Impairment loss on equity method investments)

(446)

(453)

Other non-operating income (loss) (interest income)

22

95

487

Other non-operating income (loss) (provision for doubtful accounts)

－

(604)

426

Gain (loss) from financial instruments at FVTPL

67

(493)

110

Gain (loss) from financial instruments at FVTPL

(39)

(71)

(430)

(1,593)Loans

1

Account in Consolidated Statement of Income

Income (loss) on equity method investments
1,000

Warrants

Income (loss) record in Consolidated Statement of Income

2,023*1 Indicates the loans made by a wholly owned subsidiary of the Company to a shareholder of OneWeb. This shareholder has the option to repay the debt from the Company’s wholly owned subsidiary in cash or in OneWeb shares it holds.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

064

Summary of Segment Information
Net sales

Segment income(Billions of yen)(Billions of yen)

8,000

3,000

Segments (Reportable segments)

SoftBank Vision Fund and Other SBIA-Managed Funds
Main businesses· Investment activities by SoftBank Vision Fund

2,073.6
6,093.5

6,185.1
1,256.6

6,000

SoftBank

1,500

859.8

4,000

0

4,862.5

4,652.1

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 business

923.3

Main businesses· Design of microprocessor intellectual property and related
technology· Sale of software tools and provision of software services-1,500202.7

0-1,931.3-42.8-5.3-249.5
-59.0

206.7

1,082.7

955.4

193.7
-37.7

196.2
-35.7
’18

’19

Core companies· SoftBank Corp.
· Z Holdings Corporation

Arm

134.0
-23.4
-90.1
-63.3

-1,364.6
2,000Core companies· SB Investment Advisers (UK)
Limited· SoftBank Vision Fund L.P.

Core companies· Arm Limited

Brightstar
Main businesses· Distribution of mobile devices overseas

Core companies· Brightstar Corp.

-3,000(FY)SoftBank Vision Fund and Other SBIA-Managed Funds*1
SoftBank
Reconciliation
Consolidated
Brightstar
Other*2

’18

’19

(FY)

Arm

*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, Fukuoka SoftBank HAWKS Corp, Fortress Investment Group LLC, andinvestment fund business in Latin America.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

065

SoftBank Vision Fund and Other SBIA-Managed Funds Segment
1. Segment loss was ¥1.9 trillion due to investment loss (net) of ¥1.8 trillion• SoftBank Vision Fund*1– Unrealized loss on valuation of investments (net) of ¥1.9 trillion from investments held at the fiscal year-end: Fair values of Uber and WeWork and its three affiliates1 decreased, andtotal fair value of other portfolio companies decreased significantly in the fourth quarter primarily due to the impact of the COVID-19 outbreak.
– Realized gain on sales of investments of ¥58.3 billion: sold a portion of four portfolio companie’s shares and all shares of a portfolio company.
2. Progress of investment and management at SoftBank Vision Fund
• Held 88 investments as of the fiscal year-end at cost totaling $75.0 billion, with fair value amounting to $69.6 billion (excluding exited investments). Cumulative gross realized gains*2
since the fund inception, including exited investments, have reached $4.8 billion.
• To prepare for the revenue disruption and lack of liquidity of portfolio companies resulting from the outbreak of COVID-19, SBIA is providing them operational support and guidanceon strategy.
*1 Excludes the investment results of new investment vehicles, which are intended to hold certain investments that are expected to be treated as the initial investments of “SoftBank Vision Fund 2” (planned).
*2 Includes gains related to NVIDIA corporation shares recorded under non-operating income and loss, such as derivative gain from collar transactions using NVIDIA Corporation shares. Gross realized gains are before deducting third-party interests, tax, and expenses.

OVERVIEW
The segment results include the results of the investment and operational activities of
SoftBank Vision Fund and other SBIA-managed funds, principally Delta Fund. These funds
are managed by SBIA, a wholly owned subsidiary of the Company established in the U.K.,
which is authorized and regulated by the Financial Conduct Authority.
SoftBank Vision Fund began its operation in 2017. The fund aims to maximize returns
from a medium- to long-term perspective, through making large-scale investments in highgrowth-potential companies that are leveraging AI, particularly in private companies valued
at over $1 billion, colloquially known as “unicorns.” The fund’s investment period ended
on September 12, 2019, but it is expected that the life of the fund will continue throughNovember 20, 2029.
For details on the terms and conditions of distributions to limited partners in SoftBank
Vision Fund and Delta Fund and the terms and conditions of management fees andperformance fees to SBIA, see “(2) Third-party interests in SoftBank Vision Fund and Delta
Fund” and “(3) Management fees and performance fees to SBIA” under “8. SoftBank
Vision Fund and other SBIA-managed funds business” in “Notes to Consolidated Financial
Statements” respectively.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Segment income

Income before income tax(Billions of yen)(Billions of yen)

1,500

1,256.6

900

814.6

600

1,000

300

500

0
0
-300
-500

-600

-1,000-900-1,500-1,200-1,931.3-2,000Who We Are

’18

’19

Our Path to Continued Growth(FY)-1,500-1,411.5’18Management: The Foundation Supporting Our Growth’19

Financial Section(FY)

Corporate Information

066

Outline of principal funds in the segment

Capital deployment of SoftBank Vision Fund and Delta FundAs of March 31, 2020

As of March 31, 2020
SoftBank Vision Fund

Delta Fund(Billions of U.S. dollars)

Major limited partnership

SoftBank Vision Fund L.P.

SB Delta Fund (Jersey) L.P.

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

98.6 *

4.4 *1

SoftBank Group Corp.: 33.1 *2Third-party investors: 65.5 *1

Total

1

SoftBank Vision Fund �����������������������������������������������
Delta Fund ���������������������������������������������������������������

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

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

Contributions from limited partners 3 (B)SoftBank Vision Fund �����������������������������������������������

Investment period

Ended on September 12, 2019 *3

Ended on September 12, 2019 *3

Delta Fund ���������������������������������������������������������������

Minimum fund life

Until November 20, 2029
(in principle)

Until September 27, 2029
(in principle)

98.6
4.4

33.1 *1

78.3
3.8

28.6

(5.5)
(3.5)

(0.9)

20.3
0.6

4.5

4.4

3.8 4

65.5
– *2
49.7
– *2

Non-recallable contribution included in (B)SoftBank Vision Fund 5 ����������������������������������

*1 A portion of the capital committed by third-party investors in both SoftBank Vision Fund and Delta Fund has been committed inconsideration of the total capital committed for both such funds; hence, the total committed capital and remaining committed capitalfor each separate fund will change according to the status of contribution made by third-party investors in each such fund.
During the second quarter, the sale of the investment in Xiaoju Kuaizhi Inc. (“DiDi”) from Delta Fund to SoftBank Vision Fund wassettled, and the proceeds from this sale were distributed to Delta Fund’s limited partners, resulting in a return of limited partners’
contributions. Consequently, the total committed capital of $1.6 billion from third-party investors in Delta Fund has been reversed to
SoftBank Vision Fund.
*2 The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation satisfied by using Arm
Limited shares (all said shares have been contributed by the previous fiscal year-end) and $5.0 billion earmarked for use in an incentive
scheme related to SoftBank Vision Fund.
*3 SoftBank Vision Fund’s investment period is stipulated to run either until November 20, 2022, or until the decision to end theinvestment period is made by SBIA, as the manager, after the accumulated investment account (amounts drawn down and invested
and/or reserved to make investments) exceeds 85% of the total committed capital, whichever is earlier. On September 12, 2019,
SBIA determined to end SoftBank Vision Fund’s investment period after the accumulated investment amount exceeded 85% of thetotal committed capital. The remaining 15% of the total committed capital is reserved for follow-on investments in existing portfolio
companies (including investments in joint ventures with them), fixed distributions, and finance related expenses. The investment periodof Delta Fund also ended on September 12, 2019, following the ending of the investment period of SoftBank Vision Fund.

Table of Contents

Third-party
investors

Committed capital (A)SoftBank Group Corp.: 4.4
Third-party investors: - *1

General partner

SoftBank Group Corp. ANNUAL REPORT 2020

The
Company

Delta Fund 6 ��������������������������������������������������
Remaining committed capital (C) = (A) - (B)SoftBank Vision Fund �����������������������������������������������
Delta Fund ���������������������������������������������������������������

(3.5)

0.6

(4.6)
– *2
15.8
– *2

*1 The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation satisfied by using Arm
Limited shares (all said shares have been contributed by the previous fiscal year-end) and $5.0 billion earmarked for use in an incentive
scheme related to SoftBank Vision Fund.
*2 During the second quarter, the sale of the investment in DiDi from Delta Fund to SoftBank Vision Fund was settled, and the proceedsfrom this sale were distributed to Delta Fund’s limited partners, resulting in a return of limited partners’ contributions. Consequently,
the total committed capital of $1.6 billion from third-party investors in Delta Fund has been reversed to SoftBank Vision Fund.

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067

FINANCIAL RESULTS(Millions of yen)
Fiscal 2018

Gain and loss on investments at SoftBank Vision
Fund and other SBIA-managed funds�������������
Realized gain and loss on sales ofinvestments ������������������������������������
Unrealized gain and loss on valuationof investments ��������������������������������

1,302,838
296,531

Fiscal 2019(1,844,867)
58,340Change(3,147,705)(238,191)

Change %–(80.3%)

Change in valuation for the fiscal year
Reclassified to realized gain and loss
recorded in the past fiscal year*1
Interest and dividend income frominvestments ������������������������������������

1,378,553(1,917,694)(1,877,682)(365,325)(40,012)325,313–

4,522

184.1%–

Effect of foreign exchange translation ���(11,443)

12,848145
1,494(86,478)(1,931,345)(22,459)
321
–

8,326

Derivative gain and loss����������������������

1,013,228

Operating expenses ���������������������������������

(46,197)

Segment income���������������������������������������

1,256,641

Finance cost (interest expenses)�����������������

(33,141)

Foreign exchange gain and loss�����������������

68

Derivative gain and loss�����������������������������
Change in third-party interests in
SoftBank Vision Fund and other SBIAmanaged funds���������������������������������������

177,373(586,152)

Other non-operating income and loss�������

(232)

Income before income tax�������������������������

814,557

540,930
1,067(1,411,486)(2,930,922)–(3,256,235)

–

145

–

12,937–(40,281)87.2%(3,187,986)–

10,682(32.2%)

253

372.1%(177,373)–

1,127,082

–

1,299

–

(2,226,043)–*1 Following the sale of a portion of four portfolio companies’ shares and all shares of a portfolio company in the fiscal year, theunrealized gain on valuation of investments of ¥40,012 million (net) recorded in the prior fiscal years for those exited investments werereclassified to “realized gain and loss on sale of investments.”

Segment income
Segment loss was ¥1,931,345 million, compared with income of ¥1,256,641 million in theprevious fiscal year. Of this, unrealized loss on valuation of investments from 88 investments
held by SoftBank Vision Fund at the fiscal year-end was ¥1,869,283 million ($17,263 million).
This was attributable to a loss of $5,179 million for investment in Uber due to a decline inits stock price, a loss of $4,582 million for investments in WeWork and its three affiliates (fordetails, see page 61 “Investments in WeWork”, and a total loss of $7,502 million recorded
for investments in other portfolio companies reflecting a significant decrease in fair value,
primarily due to the impact of the COVID-19 outbreak. See table below for details.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents(Breakdown of unrealized gain and loss on valuation of investments held by
SoftBank Vision Fund at the fiscal year-end)(Millions of U.S. dollars)
Q4

Fiscal 2019

(162)

(405)

(5,179)(24)(1,065)(4,582)(1,845)(1,552)(8,982)(7,502)(8,819)(1,738)(10,452)(17,263)

Q1

Q2

Q3

Uber���������������������������������������������

(1,076)(3,536)

WeWork and its three affiliates�����

(55)(3,438)Other portfolio companies �����������

4,877

Total���������������������������������������������

3,746

For the investments in other portfolio companies, a total valuation loss of $8,982 million
was recorded in the fourth quarter. Following the outbreak of COVID-19 from the
beginning of 2020, although the fair values of some portfolio companies in e-commerce,
health care, and other businesses increased as a result of their strong business performance,
many portfolio companies’ fair values decreased because their business activities have been
disrupted and outlook for cash flows has deteriorated due to stagnant economic activity
and lockdowns implemented globally. In particular, the total fair values of the Consumer
sector, the Transportation & Logistics sector (excluding Uber), and the Real Estate & Construction sector (excluding WeWork and its three affiliates) declined by $3,257 million,$2,381 million, and $2,196 million, respectively, and consequently the same amounts wererecorded as losses.
Reference: Changes in fair value of investments held by SoftBank Vision Fund in
fiscal 2019, U.S. dollar-based
Comparison between fair values at the fiscal year-end with the initial carrying amounts ofthe fiscal year, or with the acquisition values of the investments acquired in the fiscal year
Fair value change in fiscal 2019

Investments

Increase �������������������������������������������������������������
Decrease�������������������������������������������������������������
No change ���������������������������������������������������������
Total�������������������������������������������������������������������

19
50
19
88

Unrealized gain and loss on valuation of
investments recorded in fiscal 2019

$3,473 million$(20,736) million–$(17,263) million

Realized gain on sales of investments of ¥58,340 million was recorded as a result of the saleof a portion of four portfolio companies’ shares and all shares of a portfolio company.

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068

For investments in publicly listed companies, quoted prices are used to measure fairvalue. For investments in privately held companies, recent third-party transactions, market
approach, cost approach, and/or income approach are all used in the valuation.

Portfolio of SoftBank Vision Fund and Delta Fund
SoftBank Vision FundAs of March 31, 2020; excludes exited investments(Billions of U.S. dollars)

For details on fair value measurement, see “SoftBank Vision Fund Business Model and Accounting Treatment” on the Company’s
website at https://group.softbank/system/files/pdf/ir/presentations/2019/investor_20181107_02_en.pdf.

Impact of the COVID-19 outbreak
The stagnation in economic activity, restrictions on social outings, and stock market
disruptions in various countries due to the outbreak of COVID-19, have had, and are
expected to continue to have, a significant impact on the business activities and fair value
measurement of the portfolio companies of SoftBank Vision Fund. While this has had apositive impact on the operations of some of the portfolio companies in businesses suchas e-commerce and health care, it has disrupted the business activities of many of theportfolio companies and caused a deterioration in their results of operations and, ultimately,
the fair value measured in the Company’s consolidated financial statements. The fair value
measurement of portfolio companies as of March 31, 2020 was based on current expectedcompany-specific COVID-19 impact, liquidity positions of each company, market conditions
and comparables, and increased market volatility.
SBIA has been working closely with SoftBank Vision Fund portfolio companies tohelp them prepare for further deterioration in business conditions including a possible
decrease in revenue and the deterioration of liquidity by providing operational support andguidance on strategy, in order to reduce the adverse effects on their businesses due to thedeterioration of the economic situation caused by the pandemic. In addition, SBIA has also
advised portfolio companies to develop a clear plan for their currently available cash balancein order to optimize cost structures and create contingency plans and flexibility. SBIA has
assessed companies by reference to their cash reserves and COVID-19 sensitivity based on
their sector and business model, and made recommendations on (i) cash preservation, (ii)cost reductions, (iii) immediate actions and assessments, (iv) short-term considerations,(v) office space optimization based on physical and remote work, and (vi) confirmation ofavailable government initiatives.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Number ofinvestments

SectorAcquisition cost

Fair value

Change1.3

Consumer�������������������������������������������������

15

11.5

12.8

Enterprise�������������������������������������������������

8

2.3

3.4

1.1

Fintech�����������������������������������������������������

11

4.9

4.8

(0.1)

Frontier Tech���������������������������������������������

10

10.8

10.4

(0.4)

Health Tech�����������������������������������������������

10

2.5

4.8

2.3

Real Estate & Construction�����������������������

11

9.9

4.6

(5.3)

Transportation & Logistics�������������������������

23

33.1

28.8

(4.3)

Total���������������������������������������������������������

88

75.0

69.6

(5.4)

New investments in fiscal 2019
During the fiscal year, SoftBank Vision Fund made investments totaling $15.6 billion,
including follow-on investments.
Of these, the investments in ANI Technologies Private Limited (Ola) and WeWork China
were purchased from the Company for $950 million in total, the fair value at the time theCompany made its decision to sell. These two investments were initially acquired by theCompany in prior years with a total acquisition cost of $696 million.

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Who We Are

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Financial Section

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069

Investments purchased from the Company
In addition to direct purchase, SoftBank Vision Fund may acquire some investmentsfrom the sale of investments held directly or indirectly by the Company, but only ifthey are in accordance with the fund’s investment eligibility criteria. There are two
types of investments that could be sold to SoftBank Vision Fund: (A) Investmentsthat were acquired by the Company on the premise of offering the investment to
SoftBank Vision Fund and that were in accordance with the investment eligibility
criteria of the fund at the time of acquisition (“Bridge Investments”) and (B)other investments. Examples of (B) include investments that were made without
the premise of offering the investment to SoftBank Vision Fund at the time ofacquisition, or investments that were made with the premise of offering theinvestment to the fund but were not in accordance with the investment eligibility
criteria of the fund at the time of acquisition and therefore require consent from thelimited partners for selling to the fund.
The Company recognizes that the transfer of such investments is agreed at thetime when consent from the investment committee and other bodies (and certain
limited partners if applicable) of SoftBank Vision Fund and approvals from relevant
regulatory authorities are obtained. Sales of such investments are made at the fairvalue at the time the Company made its decision in accordance with applicableCompany procedures to offer the transfer, with such value being the acquisition
cost for SoftBank Vision Fund. These investments are presented as investments of
SoftBank Vision Fund in the Company’s consolidated financial statements, once theCompany recognizes that the transfer is agreed.
As for investments transferred during the fiscal year, differences between the
carrying amounts at the beginning of the fiscal year (or the acquisition cost during
the fiscal year) and the sale values were recorded in non-operating income in the
Company’s Consolidated Statement of Income, while the changes in fair values
from the sale values (the acquisition value for SoftBank Vision Fund) were recorded
in segment income of the SoftBank Vision Fund and Other SBIA-Managed Funds
segment. The sale transactions for the transfer between the Company and SoftBank
Vision Fund have been eliminated as inter-group transactions in the Company’s
consolidated financial statements.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Delta Fund
There were no investments held by Delta Fund as of the fiscal year-end.

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SoftBank Segment (including former Yahoo Japan Segment)
1. Achieved higher net sales and segment income, driven by steady expansionof telecom service customer base.
2. SoftBank Corp. made Yahoo Japan Corporation (currently Z Holdings
Corporation) a subsidiary in June 2019.
3. Z Holdings Corporation concluded a definitive agreement relating to its
business integration with LINE Corporation in December 2019.
FINANCIAL RESULTS
Both net sales and segment income increased year on year, driven by steady growth in thetelecommunications business, especially services for retail consumers. Net sales growth was
attributable to an increase in telecom service revenue from services for retail consumers, led bya steady expansion in the customer base. This expansion was demonstrated by the cumulative
number of smartphone subscribers to the three brands—SoftBank, Y!mobile, and LINE MOBILE —increasing 2,050,000 from the previous fiscal year-end to 24.13 million, and the cumulative numberof subscribers to SoftBank Hikari, a fiber-optic service, increasing 470,000 from the previous fiscal
year-end to 6.39 million. Segment income also increased as a result of increased net sales.
Yahoo Japan Corporation (currently Z Holdings Corporation) became a subsidiary of SoftBank Corp.
as of June 27, 2019. Accordingly, the results of the SoftBank segment are presented by retroactively
including the results of Yahoo Japan Corporation since April 1, 2018. Operating income of Z Holdings
Corporation in this segment increased 11.8% year on year. This was mainly due to consolidation of
ZOZO, Inc. and an increase in net sales of existing e-commerce and advertising business.

companies SoftBank Corp. and NAVER Corporation, concluded a four-way definitive agreement regarding
a business integration (the “Business Integration”) with the aim of forming a world-leading AI technology
company based in Japan and Asia. As part of the transaction to realize the Business Integration, SoftBank
Corp. and NAVER Corporation aim to jointly launch a tender offer for the shares of LINE Corporation from
May to June 2020. Z Holdings Corporation, as the listed integrated company resulting from the Business
Integration, is expected to become a subsidiary of the Company and of SoftBank Corp. The Business
Integration is conditioned on the receipt of required competition law and foreign exchange law approvals
and other clearances and permits required by applicable laws and regulations.
Impact of the COVID-19 outbreak
For SoftBank Corp., a stable trend in telecommunication service subscribers and an increase in data
communication traffic as a result of the “stay at home” policy from the government is expected;
however, a decline in shop traffic is also expected. For enterprise customers, although demand forremote working is expected to increase, there may also be some negative impact, such as a decreasein face-to-face sales opportunities. In addition, for Z Holdings Corporation, use of e-commerce is
expected to increase, while the advertisement sales and use of hotel and restaurant reservation
services are expected to decrease.
For more information on SoftBank Corp.’s financial results and business operations, visit its website athttps://www.softbank.jp/en/corp/ir/.

Net sales(Billions of yen)

5,000

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

4,652.1(Billions of yen)

4,862.5

1,000

859.8

Consolidation of ZOZO, Inc. by Z Holdings Corporation
On November 13, 2019, Z Holdings Corporation acquired 152,952,900 shares of common shares (50.1%
of voting rights) of ZOZO, Inc., an operator of an online apparel retailer, for ¥400,737 million with the aimof strengthening its e-commerce business. Accordingly, on the same day ZOZO, Inc. became a subsidiaryof the Company, as well as of SoftBank Corp. and Z Holdings Corporation. The results of the SoftBanksegment are presented by including the results of ZOZO, Inc. from this date until the fiscal year-end. For
details on the consolidation of ZOZO, Inc. see “9. Business combinations” under “Notes to Consolidated
Financial Statements.”
Business integration of Z Holdings Corporation and LINE Corporation
In December 2019, Z Holdings Corporation and LINE Corporation, along with their respective parent

Segment income

4,000

923.3

750

3,000
500
2,000
250

1,000

0

’18

’19

(FY)

0

’18

’19

(FY)

Note: The results of the SoftBank segment are presented by retroactively including the results of Yahoo Japan Corporation since April 1,
2018, following Yahoo Japan Corporation becoming a subsidiary of SoftBank Corp.

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Arm Segment
1. Net sales increased 2.0% yoy. Segment income decreased substantially yoy, due to a one-time gain in the previous fiscal year.
• License revenue (U.S. dollar-based) increased 6.4% yoy, driven by delivery of new technologies to customers.
• Technology royalty revenue (U.S. dollar-based) decreased only 1.5% yoy, despite the impact from deterioration in business condition in the semiconductor industry.
• Segment income decreased yoy, due to a one-time gain of ¥176.3 billion from setting up a joint venture for business in China in the previous fiscal year.
2. Start of season to harvest returns from increasing R&D capacity• Strong licensing of new technologies continued with six licenses signed in the fourth quarter for processors not yet announced.
• In the fourth quarter, Arm began delivering multiple new technologies including next generation Arm processors, triggering bookings from previous quarters to be recognized asrevenues.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP),including the design of energy-efficient microprocessors and associated technologies.
Since becoming part of the Company, Arm has accelerated investment in R&D by hiring
more engineers. With the expansion of its engineering capability, Arm can develop newtechnologies that will help it maintain or gain share in its existing markets and expand into
new markets.
Industry trend and its impact
Semiconductor industry trends can have a significant impact on Arm’s financial results.
Revenue of parts of the semiconductor industry that are most relevant to Arm’s businessstarted to decline in late 2018, and continued to show year-on-year declines from
November 2018 until a year-on-year increase of 1.0% was seen in October 2019.7 Despite
this recent improvement, the industry remains vulnerable to ongoing trade disputes andsanctions against specific companies and is being exposed to the impact from the outbreakof COVID-19. For the next fiscal year, in the light of the COVID-19 outbreak, the shipmentof consumer electronic devices may decrease, leading to lower technology royalty revenue,
and semiconductor companies that face reduced revenues may delay licensing decisions,leading to lower technology licensing revenue. However, it is still early to anticipate thenegative impact of the pandemic on the whole semiconductor industry or Arm.
As market conditions normalize, Arm expects that its business will continue to growagain. 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.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Net sales

Segment income(Billions of yen)(Billions of yen)

150

240

202.7

206.7

180

100

120

50

60

0

134.0

-42.8
0

’18

’19

(FY)

-50

’18

’19

(FY)

Note: Segment income includes amortization expenses of ¥50,544 million for the fiscal year and ¥56,535 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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FINANCIAL RESULTS
Net sales in U.S. dollars
Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily basedin U.S. dollars. Net sales increased 3.4% year on year on a U.S. dollar basis. Although theslowdown in the industry resulted in a decrease in royalty revenue, software and services
revenue and licensing revenue increased.

Technology royalty
Technology royalty revenue decreased 1.5% year on year. This was mainly due to adeceleration in semiconductor demand including a weakening in global smartphonedemand, combined with a general slowdown in global chip sales. Technology royalty
revenue for the fourth quarter increased 11.3% compared with the same period of theprevious fiscal year due to improving industry conditions and ramping shipment of 5G
smartphones.

Technology licensing
Technology licensing revenue increased 6.4% year on year. This was mainly due to thedelivery of some of the new technologies to customers during the fourth quarter, for which
Arm signed licenses in the fiscal year. These new technologies include new Arm processor
products, specifically optimized for different end markets such as smartphones, servers,
and automotive, and a new family of AI accelerators targeting mobile computing and IoTapplications. Development of these new technologies was only started after the acquisitionof Arm by the Company.
Although Arm signed licenses for some of these new technologies earlier in thefiscal year, revenue associated with these new technologies is only recognized when
the technology is delivered to the customer. Arm was able to deliver some of these newtechnologies during the fourth quarter, resulting in record technology licensing revenue
for Arm. During the fiscal year, Arm signed licenses for technologies that are not due to bedelivered until next fiscal year or later, providing an underpin for future technology licensing
revenues. As most of these new technologies are more advanced than existing technologies,
there is an opportunity for higher royalty revenue per chip to boost Arm’s technology royalty
revenues for years to come.

Software and services
Software and services revenue increased 23.0% year on year, mainly due to strong growthover the year of Arm’s data management business, which was created following theacquisition of Treasure Data, Inc. in August 2018.
Segment income
Segment income decreased year on year. This was due to recognizing gain relating to loss ofcontrol over subsidiaries of ¥176,261 million in the previous fiscal year, as a result of Arm’s
Chinese subsidiary becoming an associate accounted for using the equity method.
Arm’s head count as of the fiscal year-end increased net 751 people (12.5%) fromthe previous fiscal year-end. To maximize ROI, Arm continuously evaluates the mix of R&D
projects in which it is investing, as well as the locations of its engineering teams.

Net sales in U.S. dollars(Millions of U.S. dollars)
Fiscal 2019

Fiscal 2018
Total

Q1

213

547

247

1,098

56

53

486

513

Q1

Q2

Q3

Q4

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

85

124

125

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

261

285

305

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

35

47

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

381

456

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Q3

Q4

125

87

130

240

582

35

6.4%

240

254

312

275

1,081

(17)

(1.5%)

191

53

55

63

64

235

44

23.0%

1,836

418

396

505

579

1,898

62

3.4%

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Total

YoY

Q2

Management: The Foundation Supporting Our Growth

ChangeFinancial Section

Change %Corporate Information

073

Royalty units8

OPERATIONS
Licensing

2019

2018

Licenses signedin the fourth quarter

Cumulative number oflicenses signed as of the
fiscal year-end

Breakdown by processor family
Classic (Arm7, Arm9, Arm11)�����������������

1

Cortex-A�������������������������������������������������

14

Cortex-R�������������������������������������������������

–Cortex-M �����������������������������������������������

10

Mali �������������������������������������������������������

9

Number of processor licenses signed�������

34

451
405
112
595
204
1,767

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

Royalty units as reported byArm’s licensees����������������������������
Growth rate (yoy)����������������������������

Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 30Jul 1 toSep 30

Oct 1 toDec 31

5.4 billion(6.9%)

4.8 billion(9.4%)

5.6 billion
0.2%

6.4 billion
3.2%

6.0 billion
11.1%

Arm’s licensees reported shipments of 6.0 billion Arm-based chips for the three-month
period ended December 31, 2019. Arm’s unit shipments increased 11.1% year on year
while shipments by the semiconductor industry as a whole increased slightly by 0.6%7
during the same period. However, as mentioned in “Industry trend and its impact” above,it is likely that fewer chips will be sold next fiscal year than otherwise would be due to theoutbreak of COVID-19. Despite fewer chips being sold, Arm still expects to continue tomaintain or gain share in its target end markets.

Arm signed 34 processor licenses in the fourth quarter including six licenses for advanced
new technologies that Arm has not yet announced. The customers who signed licenses
with Arm in the fourth quarter intend to use Arm technologies in a very broad range of end
markets, including smartphones, networking equipment, and advanced microcontrollers for
IoT devices such as communication chips and sensors embedded in sports equipment.

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

074

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 in fiscal 2019

Automotive

Mobile Computing
Opportunity:

Arm already has over 95% share of the main chips in mobile devices
and, over time, has been successfully increasing royalties per chip.

Q1:

Arm announced a family of processors which will help provide AI and
5G capabilities to the next generation of smartphones due in 2020.

Q2:

Arm announced Total Compute, a new platform approach to develop
IP for mobile devices and consumer electronics, which will deliver
higher performance and greater security.

Q3:

Arm announced new AI processors that are scalable to add AI
capability to a wide range of consumer devices such as mobile
computing and portable gaming devices.

Opportunity:

Arm has a growing share in networking infrastructure and a nascentshare in data center servers.

Q1:

Marvell Technology Group Ltd. and Arm announced a strategic
partnership to accelerate the development of technology needed forcloud companies to deploy Arm-based servers.

Q4:

As vehicles become smarter, they require more computational capability.
Arm is well positioned to gain share by providing energy efficiency andArm processor technology has already been licensed by most companies
that develop automotive chips.

Q2:

Established the Autonomous Vehicle Computing Consortium (AVCC)
with partners from the automotive industry to create technology
standards that will help accelerate the arrival of self-driving cars.

Opportunity:

For IoT to reach its full potential, it must be secure against hacking androbust against faults. Arm has developed technology to secure andmanage the data in IoT device networks.

Q1:

Samsung Electronics Co., Ltd. and Arm demonstrated a new
manufacturing process for IoT chips.

Q2:

Arm announced a new feature Arm Custom Instructions. This allows
chipmakers to optimize an Arm CPU to increase the performance for
specific IoT and other applications.

Q4:• Bayer AG announced its usage of smart-label, created incollaboration between Arm and Vodafone Group, that uses cellularconnected IoT which can strengthen tracking of products throughthe supply chain.
• Arm announced a new CPU and machine-learning accelerator,
bringing AI technology to IoT devices.

IoT

Infrastructure

Q3

Opportunity::• Amazon Web Services Inc. announced that the first generation of
Arm Neoverse processors is being used in their own-built Graviton2
server chips, which will be used to replace the current generations ofserver systems and show up to 40% cost savings for its customers.
• Supercomputer Fugaku, jointly developed by RIKEN and
Fujitsu Limited, has been awarded first place in the Green500
supercomputer list, a global ranking based on the energy efficiencyof supercomputers, with their Arm-based high-performance chip.
Marvell Technology Group Ltd. and Mellanox Technologies, Ltd.
announced new families of SmartNICs, which offload various tasks fromthe main server chips in data centers.

SoftBank Group Corp. ANNUAL REPORT 2020

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Message from Our CEO

For more information about Arm, its business, and its technology, visit its website at https://www.arm.com

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

075

Arm Segment Key Operational Data
Licensing

FY2018FY2019FY2018FY2019

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

125

147

16

35

42

32

28

34

51

34

Classic (Arm7, Arm9, Arm11 ) ����������������������������������������������

–Cortex-A ������������������������������������������������������������������������������

35

Cortex-R ������������������������������������������������������������������������������

12

Cortex-M ����������������������������������������������������������������������������

59

Mali ������������������������������������������������������������������������������������

19

1
53
8
65
20

–
13
1
18
2

–
19
5
18
9

1
14
–
10
9

Number of processor licenses signed �������������������������������������
Breakdown by processor family

1

5

3

3

11

13

21

14

1

3

10

5

–
7
2
19
–

Cumulative number of licenses signed�����������������������������������
Breakdown by processor family

1,593

1,627

1,662

1,694

1,671

1,692

1,741

1,767

452
367
109
556
187

451
373
109
573
186

451
392
113
590
195

451
405
112
595
204

21
14
7

24
17
7

24
22
2

–

–

–

–

3

14

8

10

Classic (Arm7, Arm9, Arm11 ) ����������������������������������������������

499

499

499

499

Cortex-A ������������������������������������������������������������������������������

337

350

353

363

Cortex-R ������������������������������������������������������������������������������

95

100

103

106

Cortex-M ����������������������������������������������������������������������������

493

506

525

539

Mali ������������������������������������������������������������������������������������

169

172

182

187

12

26

27

20

9

21

21

15

19

93
71
22

3

5

6

5

24
18
6

CY2018CY2019Jan - MarApr - Jun

Jul - Sep

Oct - Dec

Jan - MarApr - Jun

Jul - Sep

Oct - Dec

22.5

22.8

5.3

5.6

6.2

5.4

4.8

5.6

6.4

6.0

FY2018FY2019

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

5,707

5,990

5,970

5,987

4,697

4,940

4,887

4,858

6,064
4,882

6,365
5,126

6,520
5,181

6,738
5,375

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

Companies signing licenses�����������������������������������������������������
Existing������������������������������������������������������������������������������������

85

New����������������������������������������������������������������������������������������

66

Royalty units
CY2019CY2018(Billions)Royalty units as reported by licensee
Breakdown by processor family������������������������������������������

Employees
FY2019FY2018

Total number of employees�����������������������������������������������������
(incl.) Technical employees��������������������������������������������������������

Notes: 1.	Total number of employees: include temporary employees.
2.	Technical employees: employees who work on the research, creation, maintenance, deployment and support of technology products and services of Arm.

SoftBank Group Corp. ANNUAL REPORT 2020

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Who We Are

Our Path to Continued Growth076

Brightstar Segment

Other

Net sales

Segment income

Net sales

Segment income(Billions of yen)(Billions of yen)(Billions of yen)(Billions of yen)

1,200

10

240

120

1,082.7
955.4

193.7

5

900

196.2

60

180

0
-5

-60

-5.3

600

0

120

-90.1

-10

-120

-15

300

-180

60

-20
0

’18

’19

(FY)

-25

-240

-23.4
’18

’19

0

(FY)

’18

’19

(FY)

-300

-249.5
’18

’19

(FY)

Operating loss of ¥82,234 million was recorded at PayPay Corporation, which is engaged
in smartphone payment services in Japan. This was mainly due to large-scale marketingpromotions aimed at gaining users and driving service usage, and continued proactive
measures to increase the number of stores where its services can be used.
In addition, the investment fund business in Latin America recorded operating loss of¥62,212 million due to a decrease in the value of investment currencies such as the Brazilian
real and a decrease in the fair values of investments.
Results of PayPay Corporation included in the Other segment(Millions of yen)

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Fiscal 2018

Fiscal 2019

ChangeNet sales�����������������������������

595

8,564

–

Operating income���������������

(36,559)

9,159(82,234)(45,675)–

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Change %Corporate Information

077

Financial Position
1. Status of investments• Carrying amount of investments from SoftBank Vision Fund of ¥6.7 trillion, decreased ¥434.0 billion from the previous fiscal year-end*1– SoftBank Vision Fund made new investments, while the fair values of Uber, WeWork and its three affiliates1 decreased, and the total fair value of other portfolio companies
decreased significantly in the fourth quarter, primarily due to the impact of the COVID-19 outbreak.
• Carrying amount of investments in WeWork and its affiliates totaling ¥262.0 billion, decreased ¥603.3 billion from the previous fiscal year-end– Carrying amount of investments from a wholly owned subsidiary of the Company of ¥159.9 billion, decreased ¥115.5 billion from the previous fiscal year-end*2– Carrying amount of investments from SoftBank Vision Fund of ¥102.1 billion, decreased ¥487.8 billion from the previous fiscal year-end
2. Sprint business reclassified as a disposal group classified as held for sale at the end of fiscal 2019, presented separately*3
Assets:Presented as “assets classified as held for sale”
Liabilities: Presented as “liabilities directly relating to assets classified as held for sale”
			Sprint’s interest-bearing debt and lease liabilities totaling ¥4.7 trillion (as of the fiscal year-end) was excluded from consolidated interest-bearing debt and lease liabilities
Equity:Presented as “accumulated other comprehensive income directly relating to assets classified as held for sale”
3. Financing activities• Wholly owned subsidiaries of the Company conducting fund procurement procured a total of ¥1.1 trillion using Alibaba and SoftBank Corp. shares.
• SoftBank Vision Fund borrowed $3.65 billion using a portion of its investments (while repaying a portion of principal in the fourth quarter), and borrowed from a line of credit set up
mainly to increase the capital efficiency of its investments.
*1 Investment in Arm is not included in investments from SoftBank Vision Fund as Arm is a subsidiary of the Company.
*2 For details about investments in WeWork, see page 61 “Investments in WeWork.”*3 For a breakdown of the main items presented in separate categories at the fiscal year-end, see “6. Discontinued operations” under “Notes to Consolidated Financial Statements.”(Millions of yen)March 31, 2019

March 31, 2020

ChangeTotal assets�������������������������

36,096,476

1,160,816

3.2%

Total liabilities���������������������

27,087,272

2,797,103

10.3%

Total equity�������������������������

9,009,204

37,257,292
29,884,375
7,372,917(1,636,287)(18.2%)

Change %Note: Due to the adoption of IFRS 16, total assets increased by ¥1,336,695 million, total liabilities by ¥1,324,055 million, and total
equity by ¥12,640 million at the beginning of the fiscal year.

SoftBank Group Corp. ANNUAL REPORT 2020

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Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

078

Assets

Reasons for changes by primary component(Millions of yen)

Components

Current assets

March 31, 2019

March 31, 2020

Change(489,503)

Main reasons for changes from the previous fiscal year-end

Right-of-use assets����������������������������������������������

–Goodwill��������������������������������������������������������������

4,321,467

Intangible assets��������������������������������������������������

6,892,195

Costs to obtain contracts ������������������������������������
Investments accounted for using the equity
method��������������������������������������������������������������
Investments from SoftBank Vision Fund and other
SBIA-managed funds accounted for using FVTPLSoftBank Vision Fund and Delta Fund���������������

384,076

3,369,015
2,072,326
313,487
185,097
460,970
9,236,048
15,636,943
1,264,516
1,293,692
3,998,167
1,985,972
212,036

2,641,045

3,240,361

599,316H

Non-current assets

7,115,629

6,892,232
6,681,671
1,211,511
1,159,972
221,371
140,519
21,620,349
37,257,292(223,397)I

D Property, plant andequipment• Due to the adoption of IFRS 16, leased assets of ¥1,157,008 million,
previously classified as financing leases and recorded as property, plantand equipment, were reclassified as right-of-use assets at the beginningof the fiscal year. This was mainly due to leased assets related totelecommunications equipment for SoftBank Corp. being reclassified asright-of-use assets.
• Telecommunications equipment was regularly depreciated at SoftBank
Corp.
• At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s property,
plant and equipment of ¥1,890,600 million was reclassified as assets
classified as held for sale.

E Right-of-use assets• Due to the adoption of IFRS 16, right-of-use assets of ¥1,368,144 million
were newly recorded at the beginning of the fiscal year. This was mainly
due to newly recorded right-of-use assets for operating leases related totelecommunications equipment and property at Sprint and SoftBank Corp.
• Leased assets that had been included in property, plant and equipment werereclassified as right-of-use assets.
• At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s right-of-use
assets of ¥763,529 million were reclassified as assets classified as held forsale.

Cash and cash equivalents ����������������������������������

3,858,518

Trade and other receivables����������������������������������

2,339,977

Other financial assets ������������������������������������������

203,476

Inventories ����������������������������������������������������������

365,260

Other current assets��������������������������������������������

766,556

Assets classified as held for sale ��������������������������

224,201

Total current assets����������������������������������������������

7,757,988

Property, plant and equipment ����������������������������

4,070,704

7,115,629

Investment securities ������������������������������������������

924,614

Other financial assets ������������������������������������������

1,185,856

Deferred tax assets����������������������������������������������

586,943

Other non-current assets��������������������������������������

215,959

Total non-current assets ��������������������������������������

28,338,488

Total assets����������������������������������������������������������

36,096,476

SoftBank Group Corp. ANNUAL REPORT 2020

(267,651)

A

110,011(180,163)A(305,586)

B

9,011,847

C

7,878,955(2,806,188)

D

1,293,692

E(323,300)

F(4,906,223)

G

A Trade and otherreceivable
Inventories

At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s trade andother receivables and inventories totaling ¥483,223 million were reclassified
as assets classified as held for sale.

B Other current assets

Other current assets were reduced by ¥422,648 million due to a refund ofwithholding income tax in July 2019 on dividends from SoftBank Group
Japan Corporation (“SBGJ”) to SBG. in the previous fiscal year.

C Assets classified asheld for sale

• Assets classified as held for sale were reduced by ¥224,201 million due tothe settlement in June 2019 of the variable prepaid forward contract using
Alibaba shares concluded in 2016.
• At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s assets
totaling ¥9,236,048 million were presented separately under thisclassification.

(172,040)(433,958)
286,897J(25,884)(365,572)

K(75,440)(6,718,139)
1,160,816

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Financial Section

Corporate Information

079

Liabilities

Components

Main reasons for changes from the previous fiscal year-end

F Goodwill• Following the consolidation of ZOZO, Inc., goodwill was newly recognizedon the date when control was acquired. For details, see “9. Businesscombinations” in “Notes to Consolidated Financial Statements.”• Arm’s goodwill decreased ¥223,377 million, due to a stronger yen against
the British pound.
• At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s goodwill of¥322,978 million was reclassified as assets classified as held for sale.

G Intangible assets• Following the consolidation of ZOZO, Inc., intangible assets such as
customer relationships and trademarks were newly recognized on the datewhen control was acquired. For details, see “9. Business combinations” in“Notes to Consolidated Financial Statements.”• At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s intangible
assets of ¥5,082,956 million were reclassified as assets classified as held forsale.

H Investments
accounted for using
the equity method

The consolidated carrying amount of Alibaba increased due to recording
income on equity method investments and dilution gain from changes inequity interest.

I

SoftBank Vision Fund made investments of $15.6 billion, while the fair valuesof investments in Uber and WeWork and its three affiliates1 decreased andthe total fair value of other investments decreased significantly during thefourth quarter, mainly due to the impact of the COVID-19 outbreak. For
details, see page 66 “SoftBank Vision Fund and Other SBIA-Managed Funds
Segment.”

Investments from
SoftBank Vision
Fund and other
SBIA-managed funds
accounted for using
FVTPL

J Investment securities • For details of investments in WeWork, see page 61 “Investments in
WeWork.”• A wholly owned subsidiary of the Company made new investments
totaling $1.3 billion as the investment fund business in Latin America.
K Deferred tax assets

As a result of the settlement of the variable prepaid forward contract using
Alibaba shares concluded in 2016, the corresponding deferred tax assets
were reversed.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents(Millions of yen)Interest-bearing debt*1����������������������������������������

March 31, 2019

March 31, 2020

Change3,480,960

3,845,153
378,383
873,087

364,193

Lease liabilities*1��������������������������������������������������

–Deposits for banking business������������������������������
Third-party interests in SoftBank Vision Fund andother SBIA-managed funds*2 ����������������������������

745,943

Trade and other payables ������������������������������������

1,909,608

Derivative financial liabilities��������������������������������

767,714

29,677

Other financial liabilities ��������������������������������������

10,849

Income taxes payables ����������������������������������������

534,906

Provisions������������������������������������������������������������

43,685

Other current liabilities����������������������������������������
Liabilities directly relating to assets classified asheld for sale������������������������������������������������������

1,158,355

Total current liabilities������������������������������������������

8,681,697

Interest-bearing debt*1����������������������������������������

12,204,146

Lease liabilities*1��������������������������������������������������
Third-party interests in SoftBank Vision Fund andother SBIA-managed funds*2 ����������������������������

–4,107,288

Derivative financial liabilities��������������������������������

130,545

Other financial liabilities ��������������������������������������

57,115–

Provisions������������������������������������������������������������

157,478

Deferred tax liabilities������������������������������������������

1,391,072

Other non-current liabilities����������������������������������

357,931

Total non-current liabilities������������������������������������

18,405,575

Total liabilities������������������������������������������������������

27,087,272

378,383
127,144

24,691
1,585,326
9,267
248,010
164,298
11,448596,4996,454,971
14,191,133
9,286,729
761,9434,559,728
128,075
77,20788,791
711,216
79,553
15,693,242
29,884,375(4,986)(324,282)A(758,447)B

237,161C(370,608)

D(32,237)(561,856)

E

6,454,971

F

5,509,436(2,917,417)
761,943
452,440(2,470)20,092(68,687)(679,856)G(278,378)

H(2,712,333)
2,797,103*1 Due to the adoption of IFRS 16, lease liabilities of ¥1,449,326 million, for operating leases that were previously accounted for as leases,
were newly recorded at the beginning of the fiscal year. In addition, lease obligations of ¥892,472 million related to finance leases,
previously included in interest-bearing debt, were reclassified as lease liabilities.
*2 See “(2) Third-party interests in SoftBank Vision Fund and Delta Fund” under “8. SoftBank Vision Fund and other SBIA-managed funds
business” in “Notes to Consolidated Financial Statements” for details.

Message from Our CEO

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

080

Reasons for changes by primary component
Components

Reference: Interest-bearing debt and lease liabilities (total of current liabilities andnon-current liabilities)

Main reasons for changes from the previous fiscal year-end(Millions of yen)

Current liabilities
A Trade and otherpayablesAt the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s trade andother payables of ¥395,415 million were reclassified as liabilities directly
related to assets classified as held for sale.

B Derivative financial
liabilities

Derivative financial liabilities related to the embedded collar transaction in
the variable prepaid forward contract using Alibaba shares concluded in2016 decreased ¥749,846 million, due to settlement of the contract.

C Other financial
liabilities

The Company recorded allowance for financial guarantee contract losses
and loan commitment losses totaling ¥234,335 million at the fiscal year-end
for expected credit losses for the financial guarantee contract and the loan
commitment related to WeWork. For details, see page 61 “Investments in
WeWork.”D Income taxes
payablesIncome tax of ¥321,290 million, which arose from a gain on the sale of
SoftBank Corp. shares at SBGJ in the previous fiscal year, was paid.

E Other current
liabilities

Withholding income tax of ¥422,648 million on dividends from SBGJ to SBG
in the previous fiscal year was paid.

F Liabilities directly
relating to assets
classified as held forsale

At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s liabilities
totaling ¥6,454,971 million were presented separately under thisclassification.

Non-current liabilities
G Deferred tax
liabilities• Deferred tax liabilities of ¥148,439 million were recorded at the fiscal
year-end for intangible assets that were newly recognized following theconsolidation of ZOZO, Inc. on the date when control was acquired.
• At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s deferred tax
liabilities of ¥746,834 million were reclassified as liabilities directly related
to assets classified as held for sale.

H Other non-current
liabilities

At the fiscal year-end, subsequent to the reclassification of the Sprint
business as a disposal group classified as held for sale, Sprint’s defined
benefit liabilities and other liabilities of ¥209,515 million were reclassified asliabilities directly related to assets classified as held for sale.

SoftBank Group Corp. and wholly owned subsidiaries
conducting fund procurement*1
SoftBank Group Corp.�����������������������������������������������
Borrowings�����������������������������������������������������������
Corporate bonds���������������������������������������������������
Others�������������������������������������������������������������������
Wholly owned subsidiaries conducting fundprocurement*1�������������������������������������������������������
Borrowings�����������������������������������������������������������
Financial liabilities relating to variable prepaid
forward contract�������������������������������������������������
SoftBank Vision Fund and Other SBIA-Managed Funds segment
SoftBank Vision Fund �����������������������������������������������
Borrowings�����������������������������������������������������������
SBIA�������������������������������������������������������������������������
Lease liabilities������������������������������������������������������
SoftBank segment
SoftBank Corp.���������������������������������������������������������
Borrowings�����������������������������������������������������������
Corporate bonds���������������������������������������������������
Lease obligations���������������������������������������������������
Lease liabilities������������������������������������������������������
Others�������������������������������������������������������������������Z Holdings Corporation*2 �����������������������������������������
Borrowings�����������������������������������������������������������
Corporate bonds���������������������������������������������������
Lease obligations���������������������������������������������������
Lease liabilities������������������������������������������������������
Other subsidiaries�����������������������������������������������������
OthersOther interest-bearing debt���������������������������������������
Lease liabilities ���������������������������������������������������������
A disposal group classified as held for sale
Sprint�����������������������������������������������������������������������
Total����������������������������������������������������������������������������

March 31, 2019

March 31, 2020

Change7,445,551
6,157,798
1,339,409
4,776,389
42,0008,247,063
6,528,734
1,388,240
5,034,494
106,000

801,512370,936
48,831
258,105
64,0001,287,753
557,152

1,718,329
1,522,228

430,576965,076

730,601

196,101(534,500)

36,571
36,571––

581,543
581,543535
535

544,972
544,972535
535

3,186,618
2,392,843–
786,174–
7,601
130,099–
130,000
99–
184,737

3,828,904
2,856,027
40,000–832,877
100,000
839,042
463,598354,327–
21,117413,127642,286
463,184
40,000(786,174)
832,877
92,399708,943
463,598
224,327(99)
21,117228,390

273,152–

259,801
102,193(13,351)
102,193

4,428,378–
14,272,208(4,428,378)

15,685,106(1,412,898)*1 Indicates the interest-bearing debts of Skywalk Finance GK, which made borrowings using Alibaba shares, West Raptor Holdings, LLC,
which concluded a variable prepaid forward contract using Alibaba shares, and Moonlight Finance GK (formerly Hinode 1 GK), which
made borrowings using shares of SoftBank Corp. These interest-bearing debts are non-recourse to SoftBank Group Corp.
*2 Includes the interest-bearing debt and lease liabilities of Yahoo Japan Corporation.

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Interest-bearing debt and lease liabilities
Reasons for changes from previous fiscal year-end at core companies
SoftBank Group Corp. and wholly owned subsidiaries conducting fund procurement

SoftBank segment

SoftBank Group Corp.

SoftBank Corp.

• SBG issued domestic straight corporate bonds totaling ¥1 trillion and redeemed
corporate bonds of ¥700 billion as part of refinancing corporate bonds maturing in2019 and 2020 onward.
• SBG issued commercial paper in the amount of ¥64.0 billion (net). Interest-bearing debt
from this transaction is included in “Others.”

Financial liabilities related to a variable prepaid forward contract decreased by ¥730,601
million due to the settlement of the variable prepaid forward contract using Alibaba
shares concluded in 2016. Financial liabilities relating to a variable prepaid forward
contract of ¥196,101 million were recorded at the fiscal year-end following the conclusionof a new variable prepaid forward contract using Alibaba shares in November 2019.

• SoftBank Corp. made borrowings to acquire Yahoo Japan Corporation (currently Z
Holdings Corporation) shares and to replenish the reduced working capital resulting
from this acquisition.
• Domestic straight corporate bonds totaling ¥40 billion were issued.
• Impacts of adopting IFRS 16 at the beginning of the fiscal year
– Lease liabilities of ¥384,103 million were newly recorded for operating leases thatwere previously accounted for as leases.
– Finance leases of ¥786,174 million, that were previously included in interest-bearing
debt, were reclassified as lease liabilities.
• Liabilities related to lease transactions of software for telecommunications equipment
were previously classified as lease obligations. Since the Company does not adopt IFRS
16 on leases of intangible assets, those liabilities were recorded as financial liabilities
in borrowings based on IFRS 9, and retrospective adjustments have been made for thebalance of the previous fiscal year-end. Borrowings of ¥218,986 million related to thosetransactions were included at the fiscal year-end (¥277,157 million at the previous fiscal
year-end).

Moonlight Finance GK (Formerly Hinode 1 GK)

Z Holdings Corporation

Moonlight Finance GK borrowed ¥500 billion using SoftBank Corp. shares in February2020.

• ¥400 billion was borrowed as funds for acquiring ZOZO, Inc. shares.
• Domestic straight corporate bonds totaling ¥230 billion were issued.

SoftBank Vision Fund and Other SBIA-Managed Funds segment

A disposal group classified as held for sale

• SoftBank Vision Fund borrowed $3.65 billion for the purpose of monetizing a portionof its investments (the “Portfolio Financing Facility”) in July 2019. In March 2020,in light of current market conditions and the corresponding significant decrease in
the market value of the listed shares pledged as collateral for the Portfolio Financing
Facility, $1.1 billion was repaid on the Portfolio Financing Facility using funds sourced
by a capital call issued to all limited partners of SoftBank Vision Fund, including theCompany. For details, see “24. Interest-bearing debt” under “Notes to Consolidated
Financial Statements.”• SoftBank Vision Fund also borrowed from a line of credit set up mainly to increase thecapital efficiency to fund investments (the “Fund Level Facility”).

At the fiscal year-end, subsequent to the reclassification of the Sprint business as adisposal group classified as held for sale, Sprint’s interest-bearing debt and lease liabilities
totaling ¥4,709,749 million were reclassified as liabilities directly related to assets
classified as held for sale, and excluded from consolidated interest-bearing debt andlease liabilities.

(Wholly owned subsidiaries conducting fund procurement)
Skywalk Finance GK
Skywalk Finance GK conducted additional borrowings of $4.37 billion (¥468,859 million)
using Alibaba shares.
West Raptor Holdings, LLC

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Equity

Reasons for changes by primary component(Millions of yen)March 31, 2019

March 31, 2020

ChangeCommon stock�����������������������������������������������������

238,772

238,772
1,490,325
496,876
3,945,820(101,616)(362,259)–

Capital surplus �����������������������������������������������������

1,467,762

Other equity instruments �������������������������������������

496,876

Retained earnings�������������������������������������������������

5,571,285

Treasury stock�������������������������������������������������������

(443,482)

Accumulated other comprehensive income�����������
Accumulated other comprehensive income directly
relating to assets classified as held for sale�����������

290,268

Total equity attributable to owners of the parent���7,621,481

Non-controlling interests���������������������������������������

1,387,723

Total equity�����������������������������������������������������������

9,009,204–

205,695
5,913,613
1,459,304
7,372,917

22,563Main reasons for changes from the previous fiscal year-end

A Capital surplus

Capital surplus increased as a result of a decrease in the Company’s
economic interests in Yahoo Japan Corporation (currently Z Holdings
Corporation).

B Retained earnings

In addition to net loss attributable to owners of the parent of¥961,576 million being recorded, retained earnings were reducedby ¥558,136 million*1 due to the retirement of 55,753 thousand
shares of treasury stock in June 2019 (5.07% of the total number ofissued shares before the retirement), and by ¥68,752 million due toa dividend payment. In addition, the cumulative impact of adopting
IFRS 16 of ¥13,997 million was recorded as an increase in retained
earnings on April 1, 2019.

C Treasury stock• The Company repurchased 36,709 thousand of its own shares for¥384.1 billion in the previous fiscal year and 19,044 thousand sharesfor ¥215.9 billion in the fiscal year. This is in accordance with aresolution of the Board of Directors on February 6, 2019 to repurchase
the Company’s own shares, with a maximum total repurchase amountof ¥600 billion.
• The Company retired the above mentioned treasury stock in June
2019.
• The Company repurchased 4,720 thousand of its own shares for¥16.0 billion in the fiscal year. This is in accordance with a resolutionof the Board of Directors on March 13, 2020 to repurchase theCompany’s own shares, with a maximum total repurchase amount of¥500 billion.

D Accumulated othercomprehensive income• Exchange differences from the translation of foreign operations,which arise from translating overseas subsidiaries and associates into
yen, decreased ¥501,064 million due to a stronger yen against the
major currencies.
• At the fiscal year-end, subsequent to the reclassification of theSprint business as a disposal group classified as held for sale, Sprint’s
accumulated other comprehensive income of ¥205,695 million wasreclassified.

E Accumulated othercomprehensive income
directly relating to assets
classified as held for saleAt the fiscal year-end, subsequent to the reclassification of theSprint business as a disposal group classified as held for sale, Sprint’s
accumulated other comprehensive income of ¥205,695 million waspresented separately under this classification.

A–(1,625,465)

Components

B

341,866C(652,527)

D

205,695

E(1,707,868)
71,581(1,636,287)*1 The number of shares retired is the same as the number of shares acquired from the share repurchase (the “Share Repurchase”) in
accordance with a resolution of the Board of Directors on February 6, 2019. However, since the retirement amount is calculated basedon the carrying amount, including the treasury stock held by the Company prior to the Share Repurchase, the retirement amountdiffers from the total repurchase amount of the Share Repurchase.

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Cash Flows

Cash flows from operating activities / Cash flows from investing activities /Cash flows from financing activities

1. Investing activities of SoftBank Vision Fund and Delta Fund*1• Inflows: proceeds from sale of investments of ¥129.8 billion (cash flows frominvesting activities), proceeds from borrowings of ¥1,132.9 billion (cashflows from financing activities), contributions from third-party investorsof ¥1,843.7 billion (cash flows from financing activities)• Outflows: payments for acquisition of investments of ¥1,597.0 billion (cash flows
from investing activities), repayment of borrowings of ¥594.1 billion(cash flows from financing activities), distribution/repayment to thirdparty investors of ¥7,713 billion (cash flows from financing activities)(Billions of yen)

5,000

2,920.92,202.3

2,500

1,171.9

1,117.90-2,5002. Investing and financing activities of the Company• Invested a total of $3.5 billion in WeWork.
• Enhanced cash on hand: procured ¥648.0 billion using Alibaba shares and ¥500
billion using SoftBank Corp. shares.

-2,908.0-4,286.9-5,000’18

Cash flows from operating activities’19

Cash flows from investing activities(FY)

Cash flows from financing activities*1 Excludes the cash flows of new investment vehicles, which are intended to hold certain investments that are expected to be treated as
the initial investments of “SoftBank Vision Fund 2” (planned). These investment vehicles made payments of $2.0 billion for acquisitionsof investments during the fiscal year.

(Millions of yen)
Fiscal 2018

Fiscal 2019

Change1,117,879(4,286,921)
2,920,863(1,378,905)

Cash flows from operating activities�������������������������

1,171,864

Cash flows from investing activities���������������������������

(2,908,016)

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

2,202,291(53,985)

Cash Flows from Operating Activities
Cash flows from operating activities decreased mainly due to payment of income tax of¥321,290 million by SBGJ on a gain on the sale of SoftBank Corp. shares recorded in theprevious fiscal year.

718,572

Notes: 1. Cash flows from continuing operations and cash flows from discontinued operations are included. For details, see“6. Discontinued operations” in “Notes to Consolidated Financial Statements.”
2. Since lease liabilities were newly recognized for operating leases from the fiscal year due to the adoption of IFRS 16, of theleasing amount (previously recorded as cash flows from operating activities), payment for interest expenses was recorded in“interest paid (cash flows from operating activities)” and payment related to repayment of principal of liabilities was recorded in“repayment of lease liabilities (cash flows from financing activities).”

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Cash Flows from Investing Activities
Primary components

Cash Flows from Financing Activities
Primary components

Components

Primary details

Components

Primary details

Outlays for purchase of property,
plant and equipment and intangible
assets¥(1,232,551) million

Sprint acquired leased devices and telecommunications equipment
for 5G, and SoftBank Corp. acquired telecommunications
equipment including those for 5G.

Proceeds in short-term interestbearing debt, net¥133,173 million

SBG issued commercial paper in the amount of ¥49.0 billion (net),and SoftBank Corp. in the amount of ¥48.0 billion (net).

Payments for acquisition of
investments¥(1,098,640) million• A wholly owned subsidiary of the Company acquired
preferred stock and common stock of WeWork totaling$2.0 billion and paid $1.5 billion related to the existingcommitment of WeWork.
• A wholly owned subsidiary of the Company made newinvestments totaling $1.3 billion as the investment fundbusiness in Latin America.

Payments for acquisitions ofinvestment by SoftBank Vision Fundand other SBIA-managed funds¥(1,816,291) million

SoftBank Vision Fund made investments. The newly establishedinvestment vehicles, which will hold certain investments that are
expected to be treated as the initial investments of “SoftBank
Vision Fund 2” (planned), made investments of $2.0 billion.

Proceeds from sale of investments
by SoftBank Vision Fund and other
SBIA-managed funds¥129,832 million

SoftBank Vision Fund sold a portion of four portfolio
companies’ shares and all shares of a portfolio company.

Payments for acquisition of control
over subsidiaries¥(388,259) million

Z Holdings Corporation acquired 152,952,900 shares of commonshares (50.1% of voting rights) of ZOZO, Inc. for ¥400,737
million. The amount of payments for acquisition of control oversubsidiaries was obtained by deducting cash and cash equivalentsof ¥22,876 million held by ZOZO, Inc. on the date when control
was acquired from the acquisition cost.

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Proceeds from interest-bearing
debt¥8,601,926 million

Message from Our CEO

Proceeds from borrowings¥7,043,561 million*1• SBG made short-term borrowings of ¥1,910.1 billion, while theCompany’s wholly owned subsidiaries, Skywalk Finance GK and
Moonlight Finance GK, borrowed $4.37 billion using Alibaba shares and¥500 billion using SoftBank Corp. shares, respectively.
• SoftBank Vision Fund borrowed $6.81 billion through the FundLevel Facility, which is a form of loan that allows borrowing up to a
maximum amount of $3.38 billion. In the fiscal year, SoftBank Vision
Fund made several borrowings and repayments under the facility (see“Repayment of borrowings” below).
• SoftBank Vision Fund borrowed $3.65 billion through the Portfolio
Financing Facility in July 2019. In March 2020, in light of current market
conditions and the corresponding significant decrease in the market
value of the listed shares pledged as collateral for the Portfolio Financing
Facility, $1.1 billion was repaid on the Portfolio Financing Facility using
funds sourced by a capital call issued to all limited partners of SoftBank
Vision Fund, including the Company. For details, see “24. Interestbearing debt” in “Notes to Consolidated Financial Statements.”• SoftBank Corp. borrowed ¥150.5 billion to finance the acquisitionof Yahoo Japan Corporation (currently Z Holdings Corporation)
shares, and additionally borrowed ¥325.0 billion for the purpose ofrefinancing the above borrowings into long-term borrowings andother reasons. The company also borrowed ¥857.6 billion throughthe sale of installment sales receivables and the sale and leaseback oftelecommunications equipment.
• Z Holdings Corporation borrowed ¥400 billion to fund its acquisitionof ZOZO, Inc. shares.
• Sprint borrowed $4.7 billion in total through the securitization ofreceivables and term loans.

Proceeds from issuance ofbonds¥1,379,220 million• SBG issued domestic straight corporate bonds totaling ¥1 trillion forthe purpose of refinancing.
• Z Holdings Corporation issued domestic straight corporate bonds
totaling ¥230 billion.
• SoftBank Corp. issued domestic straight corporate bonds totaling¥40 billion.
• Sprint issued straight corporate bonds totaling $1 billion.

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Components

Proceeds from procurement
relating to settlement ofshares by variable prepaid
forward contract¥179,145 million

Source of Capital and Liquidity

Primary details

West Raptor Holdings, LLC, the Company’s wholly owned subsidiary,concluded a variable prepaid forward contract using Alibaba shares in
November 2019 and received ¥179.1 billion.

Repayment of interest-bearing
debt¥(5,646,727) million
Repayment of borrowings¥(4,599,878) million*1• SBG repaid short-term borrowings of ¥1,784.8 billion.
• SoftBank Vision Fund repaid $4.06 billion of borrowings under theFund Level Facility and a total of $1.41 billion of borrowings under
the Portfolio Financing Facility, including the $1.1 billion repaid in
March 2020. For details, see “24. Interest-bearing debt” in “Notes
to Consolidated Financial Statements.”• SoftBank Corp. and Sprint repaid borrowings.

Redemption of corporate
bonds¥(1,036,765) million• SBG redeemed domestic straight corporate bonds of ¥700 billion at
maturity.
• Sprint redeemed corporate bonds totaling $3 billion.

Repayment of lease liabilities¥(695,370) million

SoftBank Corp. and Sprint repaid lease liabilities related totelecommunications equipment.

Contributions to SoftBank Vision
Fund and other SBIA-managed
funds from third-party investors¥1,843,660 million

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

Distribution/repayment from
SoftBank Vision Fund and other
SBIA-managed funds¥(771,282) million• SoftBank Vision Fund made distributions and repaid the principal forinvestments to third-party investors totaling $3.3 billion (¥357,302
million) in August 2019, using the proceeds from the Portfolio
Financing Facility. Including this, the fund made distributions andprincipal repayments to third-party investors totaling ¥611,375
million during the fiscal year.
• Delta Fund made distributions and repaid the principal forinvestments to third-party investors totaling ¥159,907 million,
mainly by using the proceeds from the sale of DiDi shares to
SoftBank Vision Fund.

Purchase of treasury stock¥(231,980) million

SoftBank Group Corp. repurchased its own shares in the amountof ¥215.9 billion in the first quarter and ¥16.0 billion in the fourth
quarter.

*1 Proceeds from borrowings and repayment of borrowings include proceeds of ¥4,060,150 million and outlays of ¥2,851,336 million,
respectively, related to borrowings with a contracted term of one year or less.

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1. SBG’s source of capital
SBG, as a strategic investment holding company, invests in a number of companies throughdirect investments (including investments made through wholly owned subsidiaries) suchas in subsidiaries and associates, as well as through investment funds such as SoftBank
Vision Fund. By way of collection of funds, SBG exits from investments whenever deemed
appropriate, either by selling or monetizing, and receives dividends from portfolio
companies or distributions from investment funds. SBG allocates these proceeds to newinvestments based on its growth strategies, as well as redirects to shareholder returns anddebt repayments at appropriate times. SBG also raises funds through sources including loans
from financial institutions and issuance of bonds to meet funding needs for its investment
activities and debt repayments.
2. Major investments and realizations in fiscal 2019
The Company contributed $11.1 billion to SoftBank Vision Fund (with the remaining
committed capital at $4.5 billion as of March 31, 2020). Meanwhile, the Company received
distributions and repayments of principal for investments from SoftBank Vision Fund andDelta Fund.
3. Major procurement of funds in fiscal 2019
• The Company procured a total of ¥1.1 trillion using Alibaba and SoftBank Corp. sharesto enhance cash on hand, through multiple wholly owned subsidiaries that conduct fundprocurement.
• The Company issued domestic straight corporate bonds of ¥1 trillion to refinance bonds
totaling ¥700 billion that matured in fiscal 2019 and bonds to mature in fiscal 2020 orlater.
4. Share Repurchases• The Company repurchased additional 19.04 million of own shares for ¥215.9 billion in
fiscal 2019 (36.71 million of its own shares for ¥384.1 billion by the end of fiscal 2018), in
accordance with a resolution of the Board of Directors on February 6, 2019 to repurchaseown shares with a maximum total repurchase amount of ¥600 billion.
• The Company repurchased 4.72 million of own shares for ¥16.0 billion in fiscal 2019 inaccordance with a resolution of the Board of Directors on March 13, 2020 to repurchaseown shares with a maximum total repurchase amount of ¥500 billion.

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5. Program regarding the sale or monetization of up to ¥4.5 trillion of assets held
At a Board of Directors meeting held on March 23, 2020, SBG approved the sale ormonetization of up to ¥4.5 trillion of assets held (the “Program”). Under the Program, SBG
is authorized to repurchase up to ¥2 trillion of its common stock, with the balance to be
used for debt redemption, bond buybacks, and to increase cash reserves.
As a part of the Program, from April 2020, SBG procured an aggregate amount of$13.7 billion by entering into several variable prepaid forward contracts using Alibaba
shares with financial institutions through wholly owned subsidiaries that conduct fundprocurement. SBG also sold a portion of its shares in SoftBank Corp. held through its wholly
owned subsidiary, SoftBank Group Japan Corporation, for ¥310.2 billion. In parallel, theBoard of Directors of SBG resolved to repurchase up to ¥500 billion of its own shares as partof the maximum ¥2 trillion repurchase of own shares under the Program on May 15, 2020.

Reference: Details of Primary Cash Flows from Investing Activities andFinancing Activities of Core Companies
SoftBank Group Corp. and wholly owned subsidiaries conducting fundprocurement
SoftBank Group Corp.
Cash flows from financing activities

Proceeds in short-term interestbearing debt, net¥49,000 million

Procured funds through commercial paper.

Proceeds from borrowings¥1,925,050 million

Made borrowings.

Repayment of borrowings¥(1,864,638) million

Repaid borrowings.

Proceeds from issuance of bonds Issued domestic straight corporate bonds for the¥1,000,000 million
purpose of refinancing.
Redemption of bonds¥(700,000) million

Redeemed domestic straight corporate bonds atmaturity.

Purchase of treasury stock¥(231,980) million

Repurchased its own shares in the amount of¥215.9 billion in the first quarter and ¥16.0
billion in the fourth quarter.

Wholly owned subsidiaries conducting fund procurement: Skywalk Finance
GK, West Raptor Holdings, LLC, and Moonlight Finance GK
Cash flows from financing activities

Proceeds from borrowings¥968,859 million• Skywalk Finance GK borrowed $4.37 billion
using Alibaba shares.
• Moonlight Finance GK borrowed ¥500 billion
using SoftBank Corp. shares.

Proceeds from procurement
relating to settlement of sharesby variable prepaid forward
contract¥179,145 million

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In November 2019, West Raptor Holdings, LLC
concluded a variable prepaid forward contract
for Alibaba shares and received ¥179.1 billion.

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Financial Section

Corporate Information

087

Notes for Management’s Discussion and Analysis of Results of Operations andFinancial Position

SoftBank Vision Fund and Delta Fund*

1

Cash flows from investing activities

Payments for
SoftBank Vision Fund made investments.
acquisition of
investments¥(1,596,991) million
Proceeds from sales SoftBank Vision Fund sold a portion of four portfolio companies’ sharesof investments
and all shares of a portfolio company.
¥129,832 million
Cash flows from financing activities

Proceeds fromborrowings¥1,132,873 million• SoftBank Vision Fund borrowed $6.81 billion through the Fund Level Facility,
which is a form of loan that allows borrowing up to a maximum amount of$3.38 billion. In the fiscal year, SoftBank Vision Fund made several borrowings
and repayments under the facility (see “Repayment of borrowings” below).
• SoftBank Vision Fund borrowed $3.65 billion through the Portfolio Financing
Facility in July 2019. In March 2020, in light of current market conditions andthe corresponding significant decrease in the market value of the listed shares
pledged as collateral for the Portfolio Financing Facility, $1.1 billion was repaid
on the Portfolio Financing Facility using funds sourced by a capital call issued
to all limited partners of SoftBank Vision Fund, including the Company. For
details, see “24. Interest-bearing debt” in “Notes to Consolidated Financial
Statements.”

Repayment ofborrowings¥(594,067) million

SoftBank Vision Fund repaid $4.06 billion for borrowings made through the FundLevel Facility. In addition, the fund repaid a total of $1.41 billion of the Portfolio
Financing Facility, including $1.1 billion repaid in March 2020. For details, see “24.
Interest-bearing debt” under “Notes to Consolidated Financial Statements.”

Contributions fromthird-party
investors¥1,843,660 million

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

1 The names of the investments of SoftBank Vision Fund are presented in the order of the size of the investments’ impact on the Company’s
financial results, unless otherwise stated.
2 The presentation of finance cost of SoftBank Group Corp. includes the interest expenses on interest-bearing debts of wholly owned
subsidiaries conducting fund procurement, Skywalk Finance GK, West Raptor Holdings, LLC, and Moonlight Finance GK. These interestbearing debts are not guaranteed by SoftBank Group Corp., hence, are non-recourse to the company.
3 Contributions from limited partners of SoftBank Vision Fund excludes the amount repaid to limited partners due to investment planchanges and other reasons after the contribution had been made.
4 The Company’s obligation to Delta Fund is offset against the cost of the investment securities in DiDi acquired by the Company and thensold to Delta Fund.
5 Non-recallable contribution of SoftBank Vision Fund represents the applicable investment principal returned to limited partners using
proceeds from the sale of Flipkart Private Limited shares and the Portfolio Financing Facility.
6 Non-recallable contribution of Delta Fund represents the applicable principal for the investment in DiDi, which was returned to limited
partners after the sale of its shares to SoftBank Vision Fund.
7 World Semiconductor Trade Statistics (WSTS) as of February 2020. 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.
8 This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the three-month
period ended December 31, 2019, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments of royalty units
one quarter in arrears, and therefore, the current quarter’s royalty unit analysis is based on chips shipped in the prior quarter. In contrast,
royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.

Distribution/• SoftBank Vision Fund made distributions and repaid the principal for
repayment to thirdinvestments to third-party investors totaling $3.3 billion (¥357,302 million)
party investors
in August 2019 using the proceeds from the Portfolio Financing Facility.
¥(771,282) million
Including this, the fund made distributions and principal repayments to thirdparty investors totaling ¥611,375 million during the fiscal year.
• Delta Fund made distributions and repaid the principal for investments tothird-party investors totaling ¥159,907 million, mainly by using the proceedsfrom the sale of DiDi shares to SoftBank Vision Fund.
*1 Excludes cash flow of the investment vehicles that are to hold certain investments expected to be the initial investment of“SoftBank Vision Fund 2” (planned).

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Risk Factors
SBG is a strategic investment holding company that manages an investment portfolio formed throughinvestments, made either directly or through investment funds, in a large number of companies. The
investment portfolio encompasses SBG’s subsidiaries and associates (“Group companies”) andinvestments 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 ofrisks accompany the execution of SBG’s investment activities and the portfolio companies’ businessactivities. The major risks that SBG believes could significantly affect investors’ investment decisions asof June 25, 2020 are outlined below. However, these risks do not include all the risks that SBG andportfolio companies could face and additional risks may arise in the future. Forward-looking statements
were determined as of June 25, 2020, unless otherwise stated.

(1) Business Model
Based on its unique organizational strategy, the Cluster of No. 1 Strategy (see page 7 for details), SBG
endeavors to enhance shareholder value.*1 For that purpose, SBG has built an investment portfolio
consisting of companies engaged in diverse businesses in the information and technology sectors,
through direct investments (including investments made through wholly owned subsidiaries), including
investments in Group companies (for example, SoftBank Corp., Arm, and Alibaba), as well as investments made through investment funds such as SoftBank Vision Fund. Through this process, SBG aims
to increase the asset value of its portfolio companies by promoting business collaborations among
them, leveraging its extensive network and expertise developed over the years. SBG also exits fromthose equity investments whenever deemed appropriate and allocates the proceeds to new investments
based on its growth strategies. Those funds are also allocated to shareholder returns and debt
repayments at appropriate times. If the stock markets deteriorate or portfolio companies’ businessdevelopment and results of operations fall substantially below expectations at the time when SBG madeits investment decisions, the value of those assets (i.e., the equity value of SBG’s holdings) could
decrease and thereby lead to a decline in shareholder value and deterioration in LTV (Loan to
Value).*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 policies.
*1 Shareholder value = equity value of holdings – net debt. See page 11 for details.
*2 LTV = net debt ÷ equity value of holdings. See page 27 for details.

(2) Fund Procurement
SBG aims to meet the funding requirements for new investments on an ongoing basis, throughmeasures 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. 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 shareholder value may be compromised. For certain

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asset-backed financing, 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, the company could find it difficult to raise fresh funds.
SBG also raises funds through sources including loans from financial institutions and the issuance ofbonds to meet funding needs for its investment activities. If interest rates rise due to changes inmonetary policies or in financial markets, or SBG’s creditworthiness declines, due to a decrease in thevalue of owned assets or a deterioration in its results of operations, which could lead to a downgrade in
SBG’s credit ratings, SBG’s financing costs could increase, thereby adversely affecting SBG’s consolidated
and non-consolidated results of operations. Further, an inability to raise funds at the planned timing,
scale, or conditions could adversely affect SBG’s investment activities (including investments throughinvestment funds) and financial position.
SBG (including wholly owned subsidiaries that procure funds) may raise new funds, refinance, sellsome of its assets, or take other measures to secure resources to repay its debt. SBG strives to maintaina sufficient cash position in a stable manner based on 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, shareholder value, consolidated and non-consolidated results of operations, and investment performance.
Various covenants may be attached to SBG’s debt, including loans from financial institutions andcorporate bonds. If the possibility of a breach of any of these covenants arises and SBG is unable totake steps to avoid such breach, SBG may forfeit the benefit of the term with respect to such obligations and, accordingly, may be requested to make lump-sum repayments with respect to otherobligations. As a result, SBG’s creditworthiness and financial position could be significantly adversely
affected.

(3) Management TeamThe major portfolio companies and investment funds, in which SBG invests, are run autonomously bymanagement teams led by their respective CEOs and other leaders. For example, Ken Miyauchi (Board
Director of SBG) serves as President & CEO of SoftBank Corp., and Simon Segars (Board Director ofSBG) serves as CEO of Arm. In addition, Rajeev Misra (Board Director and Executive Vice President of
SBG) serves as CEO of SoftBank Investment Advisers, the manager of SoftBank Vision Fund.
Nevertheless, unforeseen situations with respect to key members of SBG’s management, particularly
Chairman and CEO of SBG and Group Representative Masayoshi Son, could impede the overall
activities of SBG.

(4) Investment Activities
SBG engages in investment activities such as corporate acquisitions, establishment of subsidiaries andjoint ventures, and investments in operating companies (including listed and unlisted companies),

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holding companies (including companies that effectively control other companies through various
contracts), and investment funds. These investment activities are subject to risks such as those stated insubsections a. through e. below, and, if these risks materialize, the asset value of portfolio companies(i.e., the equity value of SBG’s holdings) could decrease, resulting in a decrease in shareholder value 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.
See “(5) SoftBank Vision Fund” and “(6) SoftBank Corp.” for the specific risks related to SoftBank
Vision Fund and SoftBank Corp., which have a particularly large impact on consolidated operating
results.

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, suchas the United States, China, India, Europe, and Latin America. Therefore, if economic situations or
financial markets in such countries and regions deteriorate due to changes in political situations,monetary and fiscal policies, international conditions such as trade disputes or conflicts, natural
disasters, or public health crises such as the spread of infectious diseases (see “b. Outbreak of
COVID-19”), the investment activities of SBG and the business activities of portfolio companies may notdevelop as expected. For example, SBG’s execution and realization of investments could be delayed, theterms and conditions of investment realizations could deteriorate, or the businesses and results ofoperations of each portfolio company could be adversely affected by a decrease in demand for or astagnation in the supply of their services and products. Further, with respect to investments in unlistedcompanies 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, shareholder value, LTV, consolidated and non-consolidated results of operations and investment performance may be adversely affected.
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 andother overseas Group companies are converted into Japanese yen. Consequently, fluctuations in foreignexchange rates could adversely affect SBG’s consolidated results of operations and financial position.

b. Outbreak of COVID-19
A specific example of the public health crisis referred to in “a. Political situations, monetary and fiscal
policies, and trends in international conditions” is the outbreak of the novel coronavirus (COVID-19).
The pandemic that began in early 2020 still does not appear to be under control, and it remains difficult
to forecast the specific medium-term impact on the investment activities of SBG and the businessactivities of portfolio companies. The equity value of SBG’s holdings has already been adversely

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affected, with SoftBank Vision Fund recording an investment loss of ¥1.1 trillion in the fourth quarter offiscal 2019 due to a decline in the fair value of its investees. If it takes longer than anticipated for the
pandemic to end, the outlook for investment activities and the business activities of portfolio companies
may remain uncertain for a long time into the next fiscal year. At this stage, the impact on thetelecommunications business of SoftBank Corp., a core portfolio company, is expected to be immaterial. At Z Holdings Corporation, SoftBank Corp.’s subsidiary, while the use of e-commerce is expected toincrease, the placements of advertising and the use of lodging and restaurant reservation services are
expected to decrease. Arm, another core portfolio company, expects that a decline in shipments ofconsumer electronic devices could have an impact on technology royalty revenue, and that a delay in
new licensing decisions of customers could have an impact on technology licensing revenue.
While many countries have implemented lockdowns and curfews, or similar restrictions, as well asborder restrictions, SBG and many of its portfolio companies have actively continued their respective
activities using video conferencing systems, business chat tools, etc. In such an environment, however,investment and business activities may be constrained, and if the impact of COVID-19 continues for a
prolonged period, the equity value of SBG’s holdings may decline, which could adversely affectshareholder value, LTV, consolidated and non-consolidated results of operations, and investment
performance. For information on the impact of COVID-19 on SoftBank Vision Fund, see “k. Impact of
COVID-19, etc.” under “(5) SoftBank Vision Fund.”c. 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 these regulations 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
agreements with the companies that are considered covered investments (herein subsection c, the“covered companies”) and the relevant regulatory authorities and agencies of 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 inincreased costs or constraints on selection of facilities, contracts, personnel, suppliers, and business
operations within the U.S.

d. Investment decisions
SBG makes direct investments (including investments through wholly owned subsidiaries) without going
through investment funds (for example, SoftBank Vision Fund). In the investment decision-making

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process, SBG seeks to appropriately estimate the investment target’s equity value and to assess risks
related to the target’s businesses, finances, corporate governance, compliance, and internal controls, byconducting due diligence on the target’s business, technology, business model, market size, businessplan, competitive environment, financial condition, legal compliance, etc. For this purpose, SBG ensures
the involvement of, for example, outside financial, legal, and tax advisors, in addition to the relevantinternal departments. In addition, an objective review of the adequacy of the due diligence findings iscarried out by a dedicated review department. Based on the results of such reviews, investment
decisions are made by the Board of Directors or the Investment Committee to which authority isdelegated 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” toclarify the standards related to the corporate governance of portfolio companies that should be taken
into account when considering an investment by SBG and its subsidiaries (including, in principle,
SoftBank Vision Fund and other investment subsidiaries managed by SBG’s subsidiaries). 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 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 andregularly report the results to SBG.
However, even with such a prudent investment decision-making process in place, there is still a
possibility of overestimating the corporate value, technology, business model, or market size of aninvestment target, or underestimating risk. Investment decisions could also be made while misjudging
the integrity of founders and managers who have a crucial influence. Consequently, after making an
investment, the asset value of the investment (i.e., the equity value of SBG’s holdings) could decrease,
thereby leading to a decrease in shareholder value and deterioration of LTV. In parallel, the recording ofvaluation losses on assets such as SBG’s equity holdings could adversely affect its consolidated results ofoperations and financial position.

e. 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 theinvestment decision and actual 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 the necessary advice, dispatching human resources at various
levels, including officers and managers, and introducing business partners.
However, portfolio companies may be unable to develop businesses as envisioned by SBG at thetime of the investment decision, due to factors including the obsolescence of portfolio companies’

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technologies and business models and intensified competitive environments, in addition to the macro
external factors described in “a. Political situations, monetary and fiscal policies, and trends ininternational conditions” and “b. Outbreak of COVID-19.” This may lead to a significant deteriorationin business performance or a drastic revision of their business plans. There is also a possibility that theportfolio 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 incurred inconnection with the investment, and may not receive the expected returns, such as profit sharing, from
portfolio companies or be able to recover the investment.
Moreover, on a non-consolidated basis, any decline in the value of assets that were acquired
through investment 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, adeterioration 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 temporary loans, loan guarantees, or whatever other financial
supports it deems necessary to improve the shareholder value of portfolio companies, if they are unable
to develop businesses as envisioned by SBG at the time of the investment decision, are unable to create
desired synergies with other portfolio companies, or need more funds than anticipated for businessdevelopment. This could increase SBG’s exposure to those companies.

(5) SoftBank Vision Fund
SoftBank Vision Fund (“SVF”) invests 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 (“SBIA”), which is authorized 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 by reference to the investment activities of SVF.
As of March 31, 2020, the total committed capital for SVF was $98.6 billion (including $33.1 billion
from SBG and its subsidiary),*3 cumulative contributions from limited partners were $78.3 billion(including $28.6 billion from SBG and its subsidiary), and remaining committed capital was $20.3 billion(including $4.5 billion from SBG and its subsidiary).
*3 Includes $5.0 billion earmarked for use in an incentive scheme related to SVF.

SVF and SBIA are subject to particular 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 ofthe investment portfolio of SVF, thereby deteriorating the financial results of SVF and SBIA. A decrease

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in the value of investments in SVF could also adversely affect the equity value of SBG’s holdings andthereby lead to a decline in shareholder value and deterioration in LTV. In parallel, the recording of suchvaluation losses on equity holdings could adversely affect SBG’s consolidated results of operations andfinancial position.
In this section (5), the term “portfolio companies” refers to the investees of SVF.

RMF of SBIA
This framework covers all aspects of risk management (both operational and investment) and sets aframework for identifying, assessing and mitigating risks.
The principles underlining SBIA’s RMF are:• “Tone from the top” (i.e., the Board is ultimately responsible for risk management and risk should betaken into account in key business decisions)• The establishment of an effective risk culture across the organization which supports the business tomeet investors’ 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 regulators

a. Impact on the results of operations
All entities that comprise SVF are consolidated by SBG. Investments held by SVF are measured at fairvalue at the end of every quarter. Changes in fair value are recognized as gain and loss on investments(except for gain and loss on investments in subsidiaries) in operating income from SoftBank Vision Fundand other SBIA-managed funds in the consolidated statements of income. Fair value is measured by
combining multiple methods, such as the price of recent transactions, discounted cash flow, and market
comparable companies. A decline in the fair value of the investments—due to factors such as adeterioration in the results of operations of portfolio companies or a downturn in financial markets andeconomic conditions—could lead to a deterioration in the results of operations of SVF, which could
have an adverse effect on SBG’s consolidated results of operations and financial position. For fiscal
2019, operating loss from SoftBank Vision Fund and other SBIA-managed funds in SBG’s consolidated
results totalled ¥1.9 trillion. Further, on a non-consolidated basis, a deterioration in the results ofoperations 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 IFRSs, aretreated 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 ofoperations of said portfolio companies that are subsidiaries could have an adverse effect on SBG’sconsolidated results of operations and financial position. Gain and loss on investments in said

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subsidiaries that are recognized at SVF are eliminated in consolidation.
To ensure the appropriateness of fair value measurements, SVF has a robust valuation process,which is overseen by SBIA’s Valuation and Financial Risk Committee (“VFRC”). VFRC follows SVF’s
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. In
addition to this, independent valuations of SVF’s portfolio companies are conducted on a semi-annual
basis by independent third-party valuation firms who have been appointed by SVF’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.

b. Investment performance
Net proceeds from the investment performance of SVF are distributed to limited partners, who comprise
SBG and 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 asplanned, SBG could be unable to receive performance-based distributions as a limited partner inaccordance 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.
Further, SBIA receives performance fees on the realization of gains, including after the disposition of
investments, receipt of dividends from investments, and monetization of shares. Performance fees to
SBIA from the monetization of investments were not paid to SBIA during the investment period of SVF(which ended on September 12, 2019). Instead, an amount equivalent to the performance fees
attributable to SBIA was temporarily paid to the limited partners during the investment period, under
the Limited Partnership Agreement. After the investment period, the equivalent amount was fully paid
to SBIA as performance fees by March 31, 2020. After the investment period, however, the performance fees received are still subject to a clawback provision (a provision requiring the return ofperformance fees received in the past), which is triggered under certain conditions based on future
investment performance. Therefore, if the investment performance of SVF does not exceed a certain
level, SBIA may be unable to receive performance fees in accordance with expectations. Also, if theinvestment performance at the time of liquidation of SVF does not exceed a certain level, the amountof 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 of this disclosure, “leverage” refers to any method by which SVF’s exposure is increased andmay take the form of 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 the exposure of SVF’s investments to adverse economic factors suchas significantly rising interest rates, severe economic downturns or deterioration in the condition of the

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corresponding market of the investment. In the event 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 suchinvestment could be significantly reduced or even eliminated and, if such leverage has recourse tomultiple investments, it may also reduce or eliminate the value of these other investments. In the event
SVF is unable to generate sufficient returns to meet its obligations under borrowings, SVF may have torealize investments prematurely, adversely impacting returns to investors. During fiscal 2019, SVF
borrowed $3.65 billion for the purpose of monetizing a portion of its investments in July 2019. In
March 2020, in light of market conditions and the corresponding significant decrease in the market
value of the listed shares pledged as collateral for the borrowing, $1.1 billion was repaid using funds
sourced by a capital call issued to all limited partners of SVF, including SBG.
SBIA closely monitors SVF’s leverage levels and associated cash flows, both in compliance withlimitations set out in the SVF fund and facility documentation, and from an ongoing liability andpipeline investment perspective. Such leverage levels and any potential cash flow issues are reported tosenior management by both 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
with complete certainty what the exit strategy will ultimately be for any given position. Accordingly,
there can be no assurance that the fund 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 isready 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 isunable to take advantage of favourable market prices.
Approval of an exit strategy is a key part of the SBIA Investment Committee’s considerations andexit strategies are regularly reviewed and updated by SBIA’s investment teams. Exit strategies are alsostress tested under various market conditions by the investment risk team to allow for forward
planning. SVF is a long-term investment fund vehicle with a life that ends on November 20, 2029, in
principle. In setting up a long-term fund structure, it was anticipated that multiple economic downturns
could occur and that some investments may take longer to exit than others.

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 ownershipinterests in such entities or portfolio companies. In such cases, SVF will rely significantly on the existing

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management and board of directors of such companies, which may include representatives of otherfinancial investors with whom SVF is not affiliated and whose interests may at times conflict with theinterests of SVF.

f. Securing and retaining human resources
SBIA seeks to maximize the equity value of the investment funds that it manages, including SVF, bycarefully 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 ensures staff retention through various HR support programs; from training anddevelopment to moving staff across the organization to ensure they fulfil their potential. SBIA and its
Remuneration Committee have a total compensation 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 amongalternative asset firms; financial institutions; private equity, growth equity 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 theinvestment 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 to certain limitations, as the interests in SVF are concentrated amongst a few
significant investors, including SBG itself, the adverse impact of such 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 third-party limited partners that provide large committed capitalamounts have a veto for investments above a certain threshold amount, and the exercise of a vetocould result in SBIA being unable to conduct investments as planned.

h. Regulation of new technologies or business models
SVF’s portfolio includes companies that are advancing the use of or are conducting research anddevelopment in relation to new technologies such as AI and big data and companies that are rolling out
new business models that are different from existing business models. The business fields in whichthese types of new technologies 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 effect by creating financial burdens or restrictions on portfolio

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companies’ business development and their results of operations by, for example, requiring portfolio
companies to change, suspend, or discontinue the deployment of technologies, business models, or
related research and development plans. Licenses and permits required 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.

The operational and compliance risks that arise while managing SVF’s listed securities positions aremanaged through an appropriate control framework involving SBIA’s middle office, compliance andoperational risk functions, including the investment risk team. These controls include pre-trade approval
processes, such as the approval of trading counterparties, and post-trade reconciliations andmonitoring.

i. Concentration of investments in specific business fields

k. Impact of COVID-19, etc.

SVF holds investments in multiple companies in specific business fields, which in some cases leads to ahigh level of concentration of investments in said business fields. For example, SVF has invested incompanies that provide 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 aportfolio company, an inability to develop a business in accordance with expectations at the time of
SVF’s investment, or a deterioration in the market’s valuation of said business fields. Such developments
could adversely affect the results of operations or the fair value 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, SVF’s investor advisory board.

Concerns about the spread of COVID-19 and other outbreaks of health epidemics and contagious
diseases in the past have caused governments at various times to take measures to prevent the spreadof viruses, including restrictions on travel and public transport, tightened quarantine requirements,
prolonged closures of workplaces, and mandatory arrangements for working from home. The outbreakof communicable diseases such as COVID-19 on a global scale may affect investment sentiment andresult in volatility in global capital markets or adversely affect regional or global economies which may
in turn give rise to significant costs to SVF and adversely affect SVF’s business and financial results andreduce returns to limited partners, including SBG. In fiscal 2019, SVF recorded a net investment loss of¥1.1 trillion for the fourth quarter primarily due to a decline in the fair values of its investments
caused by the spread of COVID-19 and resulting global economic shock. It is possible that continued
measures to prevent the spread of COVID-19 and other outbreaks of health epidemics and contagious
diseases and/or absence due to illness and other impacts among portfolio companies’ executives andemployees will affect the business and financial returns of the portfolio companies in which SVF has
invested.
In response to the COVID-19 pandemic, SBIA has been working closely with SVF portfolio
companies and providing them operational support and guidance on strategy to help them prepare forfurther deterioration in business conditions including a possible decrease in revenue and the deterioration of liquidity, in order to reduce the adverse effects on their businesses due to the deterioration of
the economic situation caused by the pandemic. SBIA has also advised portfolio companies to develop a
clear plan for their currently available cash balance in order to optimize cost structures and create
contingency plans and flexibility. SBIA has assessed companies by reference to their cash reserves and
COVID-19 sensitivity based on their sector and business model, and made recommendations on (i) cash
preservation, (ii) cost reductions, (iii) immediate actions and assessments, (iv) short-term considerations,(v) physical and remote work space management and (vi) identifying available government initiatives. In
addition, SVF is a long-term investment fund vehicle with a life that ends on November 20, 2029, in
principle, and the remaining life of SVF means that it has the ability to look past short-term unrealized
mark-to-market volatility resulting from quarterly valuations and to focus on generating medium- andlong-term realized returns. However, these efforts and the long-term nature of SVF may not be able tocompletely prevent the adverse impact on the business operations of all of SVF’s portfolio companies.
Meanwhile, these factors may also affect or occur at all or a significant number of SVF’s portfolio
companies, including certain identified key persons of such companies, which could in turn lead to a
disruption of SBIA’s business activities and its ability to adequately source, conduct due diligence on andj. 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 fromthe availability of quoted market prices, increased obligations to disclose information regarding suchcompanies, limitations on the ability of SVF to dispose of such securities and debt at certain times,
increased likelihood of shareholder litigation and insider trading allegations against such companies’
executives and board members, including employees of SBIA, and increased costs associated with eachof the aforementioned risks. In addition, securities traded on a public exchange are subject to suchexchange’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 tolosses.
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 tominimize the market 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 bedenominated in a currency whose exchange rate relative to USD is volatile.

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SoftBank Corp.’s business development and results of operations.

monitor new and existing portfolio companies and otherwise perform its functions in respect of SVF.
Similar considerations may also apply to other service providers of SVF, which could also adversely affect
SVF and in turn, SBG’s activities. SBIA has put in place a business continuity strategy and a crisis
management team to ensure minimal disruption to its business processes as a result of a business
continuity event, such as COVID-19.

(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. Natural disasters such as earthquakes, typhoons, floods, tsunamis, tornadoes,
heavy rainfall, snowfall, or volcanic activity; other unexpected disruptions such as fires or power
outages or shortages; or unpredictable events such as terrorist attacks or the spread of infectious
diseases could interfere with the normal operation of telecommunications networks, information
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 spreading out network centers, data centers, and otherkey facilities throughout Japan, as part of efforts to mitigate the impact of the aforementioned
circumstances on the provision of various services. Even with these measures in place, if theprovision 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 of telecommunications networks, information
systems, and other systems. This could adversely affect SoftBank Corp.’s results of operations.

(6) SoftBank Corp.
SoftBank Corp. and its subsidiaries (Z Holdings Corporation, for example) (collectively, “SoftBank Corp.”
in this section (6)) mainly conduct telecommunications, Internet advertising, and e-commerce businesses. There are particular risks associated with SoftBank Corp. including those stated in subsections a.
through c. below. If the following risks materialize, SoftBank Corp.’s results of operations could bedeteriorated, which could result in a decrease in asset value (i.e., the equity value of SBG’s holdings),
and thereby lead to a decrease in shareholder value and deterioration of LTV. In parallel, the recordingof 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.

a. Steady provision of services(a) Capacity enhancement of telecommunications networks
To maintain and enhance the quality of its telecommunications services, SoftBank Corp. needs
to, and systematically continues to, increase the capacity of its telecommunications networks (bysecuring required spectrum, for example) based on the forecast on 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 ofits services and corporate image may deteriorate, which may adversely affect its ability to acquire
and retain customers. In addition, additional capital investment may be required, which may
adversely affect the business development and results of operations of SoftBank Corp.

b. Dependence on management resources of other companies(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 or otherunauthorized 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 with these 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

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Message from Our CEO(a) Use of facilities, etc. of other companies
SoftBank Corp. makes use of certain telecommunications lines and facilities owned by otheroperators when constructing the telecommunications networks required for providing telecommunications services. While SoftBank Corp. principally uses the telecommunications lines andfacilities of multiple operators, SoftBank Corp.’s business activities 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 or connection fees for those facilities.
(b) Use of Yahoo! brands
In the businesses of SoftBank Corp. and Yahoo Japan Corporation, SoftBank Corp. makes use ofYahoo! 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 business activities could be adversely affected.

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(c) Procurement of various equipment
SoftBank Corp. procures telecommunications equipment, network devices, and so forth (mobile
devices and radio equipment for base stations, for example). As a general rule, SoftBank Corp.
procures equipment from multiple suppliers to build its network. In some cases, however, it may
remain highly dependent on specific companies for equipment. SoftBank Corp. may be unable toswitch 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, ordervolume shortfalls, and defects. Suppliers may also cease to provide the maintenance and inspection
services required for telecommunications equipment to maintain performance. Either of thesesituations could impede SoftBank Corp.’s provision of services, making it difficult to acquire andretain customers, or cause SoftBank Corp. to incur additional costs for changing a supplier, orcause a decline in sales of mobile devices. This could adversely affect SoftBank Corp.’s results ofoperations.
(d) Consignment of operations
SoftBank Corp. consigns certain sales activities, acquisition and retention of customers mainly fortelecommunications services, and execution of other related operations in whole or part tosubcontractors. In addition, SoftBank Corp.’s information search services make use of othercompanies’ search engines and paid search advertising placement systems. SoftBank Corp.
conducts credit investigations when it selects subcontractors and regularly monitors their results ofoperations and other conditions. If these subcontractors are unable to execute operations in linewith SoftBank Corp.’s expectations, SoftBank Corp.’s business activities 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. This could hinder business development
and the acquisition and retention of customers, which could adversely affect SoftBank Corp.’s
results of operations.
		 Furthermore, if these subcontractors should fail to comply with laws and regulations, SoftBank
Corp. could receive a warning or administrative guidance from the relevant regulatory authorities,
or be investigated for non-fulfillment of its supervisory responsibility, and SoftBank Corp.’scredibility or corporate image could deteriorate as a result, making it difficult to acquire and retain
customers. As a result, SoftBank Corp.’s results of operations could be adversely affected.

c. Leaks and inappropriate use of information
In its business operations, SoftBank Corp. handles customer information (including personal information) and other confidential information. SoftBank Corp. strives to build a framework to protect andmanage information assets appropriately through measures including the appointment of a Chief

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Information Security Officer and educational 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 confidential information, andestablishing room access management rules specific to those restricted areas. Certain conditions, suchas the use of business PCs and the intranet and the status of access to internal servers by officers andemployees, are monitored. SoftBank Corp. also conducts monitoring and defensive measures against
unauthorized access via cyberattacks from outside the company.
Even with these measures in place, this information could be leaked, lost, or be used inappropriately
in breach of laws and regulations or policies, or involved in a similar incident, either intentionally or
accidentally by SoftBank Corp. (including officers and employees and people related to subcontractors),
or through a malicious cyberattack, hacking, computer virus infection, or other form of unauthorizedaccess by a third party or 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 andmaking it difficult to acquire and retain customers. These outcomes could adversely affect SoftBank
Corp.’s business development and results of operations.

(7) Laws, Regulations, and Systems
SBG is subject to the laws, regulations, systems, and so forth (“laws and regulations”) in each country
where it conducts its investment activities. Moreover, portfolio companies conduct business activities
under laws and regulations in various fields in each country. Specifically, these range from laws andregulations pertaining to investments through to various laws and regulations pertaining to businesses
such as telecommunications services, Internet advertising, e-commerce, energy, AI, robotics, ridesharing, finance and settlement services, and other 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 foreignexchange). SBG and its portfolio companies are affected by these laws and regulations both directly andindirectly.
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’sinvestment activities or its portfolio companies’ business activities. For example, SBG may be unable todevelop its investment activities, portfolio companies may be unable to develop their business activities
in accordance with expectations, new investments or businesses may be restricted, or monetization of
investments may be delayed or become impossible. In addition, incurring an 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 toinvestment activities, and receives advice from outside advisers.

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Further, in countries and regions in which SBG or its portfolio companies conduct business activities,
the introduction of or changes to tax laws or regulations or changes to their interpretations orenforcement or the incurrence of additional tax burdens due to differences of views with tax authorities
could adversely affect SBG’s consolidated and non-consolidated results of operations or financial
position.
In addition, SBG has been undertaking measures to strengthen its Group compliance structure forcomplying with the law and to facilitate an improvement in the knowledge and awareness of 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 sanctions or guidance by government agencies (including deregistration,
revocation of licenses and fines), or may face cancellation of business agreements by business partners.
As a result, SBG’s and its portfolio companies’ credibility and corporate image may be impaired, or its
business activities may be hindered. In addition, SBG may incur a financial burden, which could
adversely affect SBG’s results 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 by a third party could have a negative impact on Arm’s business development or results ofoperations. On the other hand, if portfolio companies were to unintentionally infringe on intellectual
property rights held by a third party, such portfolio companies may be prevented from using theintellectual property or subjected to claims for compensatory damages, license fees, and so forth fromthe third party. In all cases, the equity value of SBG’s holdings, shareholder value, 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 include shareholders (including current andpast shareholders of portfolio companies), portfolio companies, customers, business partners, andemployees (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 burdenthat could adversely affect SBG’s consolidated and non-consolidated results of operations.

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Consolidated Financial Statementsa. Consolidated Statement of Financial Position
ASSETS(Millions of yen)(Thousands of
U.S. dollars)

Notes

As of March 31, 2019

As of March 31, 2020

As of March 31, 2020

¥ 3,858,518
2,339,977
203,476
365,260
766,556
7,533,787
224,201
7,757,988¥ 3,369,015
2,072,326
313,487
185,097
460,970
6,400,895
9,236,048
15,636,943$ 30,956,676
19,041,863
2,880,520
1,700,790
4,235,689
58,815,538
84,866,746
143,682,284

4,070,704–
4,321,467
6,892,195
384,076
2,641,045
7,115,629
924,614
1,185,856
586,943
215,959
28,338,488¥36,096,476

1,264,516
1,293,692
3,998,167
1,985,972
212,0363,240,361
6,892,232
1,211,511
1,159,972
221,371
140,519
21,620,349¥37,257,292

11,619,186
11,887,274
36,737,729
18,248,387
1,948,323
29,774,520
63,330,258
11,132,142
10,658,568
2,034,099
1,291,179
198,661,665$342,343,949

Current assets
Cash and cash equivalents��������������������������������������������������������������������������������������������������������������������������������������������������������

10

Trade and other receivables������������������������������������������������������������������������������������������������������������������������������������������������������

11, 30

Other financial assets ��������������������������������������������������������������������������������������������������������������������������������������������������������������

12, 30Inventories ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

13

Other current assets ����������������������������������������������������������������������������������������������������������������������������������������������������������������

14

Subtotal��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Assets classified as held for sale������������������������������������������������������������������������������������������������������������������������������������������������

6, 15

Total current assets����������������������������������������������������������������������������������������������������������������������������������������������������������������������
Non-current assets
Property, plant and equipment ������������������������������������������������������������������������������������������������������������������������������������������������

16

Right-of-use assets ������������������������������������������������������������������������������������������������������������������������������������������������������������������

17

Goodwill����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

18

Intangible assets����������������������������������������������������������������������������������������������������������������������������������������������������������������������

18

Costs to obtain contracts����������������������������������������������������������������������������������������������������������������������������������������������������������
Investments accounted for using the equity method����������������������������������������������������������������������������������������������������������������

21

Investments from SoftBank Vision Fund and other SBIA-managed funds accounted for using FVTPL ����������������������������������������

30

Investment securities����������������������������������������������������������������������������������������������������������������������������������������������������������������

30

Other financial assets ��������������������������������������������������������������������������������������������������������������������������������������������������������������

12, 30

Deferred tax assets ������������������������������������������������������������������������������������������������������������������������������������������������������������������

23

Other non-current assets����������������������������������������������������������������������������������������������������������������������������������������������������������

14

Total non-current assets ��������������������������������������������������������������������������������������������������������������������������������������������������������������
Total assets��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

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LIABILITIES AND EQUITY(Millions of yen)(Thousands of
U.S. dollars)

Notes

As of March 31, 2019

As of March 31, 2020

As of March 31, 2020

¥ 3,480,960–
745,943
29,677
1,909,608
767,714
10,849534,906
43,685
1,158,355
8,681,697–
8,681,697¥ 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$ 35,331,738
3,476,826
8,022,485
226,877
14,566,994
85,151
2,278,875
1,509,676
105,192
5,481,016
71,084,830
59,312,423
130,397,253

12,204,146–
4,107,288
130,545
57,115
157,478
1,391,072
357,931
18,405,575¥27,087,272

9,286,729
761,9434,559,728
128,075
77,20788,791
711,216
79,553
15,693,242¥29,884,375

85,332,436
7,001,222
41,897,712
1,176,835
709,428
815,869
6,535,110
730,983
144,199,595$274,596,848

Current liabilities
Interest-bearing debt����������������������������������������������������������������������������������������������������������������������������������������������������������������

24, 30

Lease liabilities��������������������������������������������������������������������������������������������������������������������������������������������������������������������������

19, 30

Deposits for banking business��������������������������������������������������������������������������������������������������������������������������������������������������

25, 30Third-party interests in SoftBank Vision Fund and other SBIA-managed funds ��������������������������������������������������������������������������

8, 30

Trade and other payables���������������������������������������������������������������������������������������������������������������������������������������������������������

26, 30Derivative financial liabilities ����������������������������������������������������������������������������������������������������������������������������������������������������

30

Other financial liabilities ����������������������������������������������������������������������������������������������������������������������������������������������������������

27, 30

Income taxes payables��������������������������������������������������������������������������������������������������������������������������������������������������������������
Provisions ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

29

Other current liabilities ������������������������������������������������������������������������������������������������������������������������������������������������������������

28

Subtotal ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Liabilities directly relating to assets classified as held for sale ����������������������������������������������������������������������������������������������������

6

Total current liabilities��������������������������������������������������������������������������������������������������������������������������������������������������������������
Non-current liabilities
Interest-bearing debt����������������������������������������������������������������������������������������������������������������������������������������������������������������

24, 30

Lease liabilities��������������������������������������������������������������������������������������������������������������������������������������������������������������������������

19, 30Third-party interests in SoftBank Vision Fund and other SBIA-managed funds ��������������������������������������������������������������������������

8, 30

Derivative financial liabilities ����������������������������������������������������������������������������������������������������������������������������������������������������

30

Other financial liabilities ����������������������������������������������������������������������������������������������������������������������������������������������������������

30

Provisions ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

29

Deferred tax liabilities ��������������������������������������������������������������������������������������������������������������������������������������������������������������

23

Other non-current liabilities������������������������������������������������������������������������������������������������������������������������������������������������������

28

Total non-current liabilities ����������������������������������������������������������������������������������������������������������������������������������������������������������
Total liabilities ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

099

LIABILITIES AND EQUITY

Notes

As of March 31, 2019

(Millions of yen)(Thousands of
U.S. dollars)

As of March 31, 2020

As of March 31, 2020

EquityEquity attributable to owners of the parent
Common stock������������������������������������������������������������������������������������������������������������������������������������������������������������������������

35

Capital surplus ������������������������������������������������������������������������������������������������������������������������������������������������������������������������

35

Other equity instruments����������������������������������������������������������������������������������������������������������������������������������������������������������

35

Retained earnings��������������������������������������������������������������������������������������������������������������������������������������������������������������������

35

Treasury stock��������������������������������������������������������������������������������������������������������������������������������������������������������������������������

35

Accumulated other comprehensive income������������������������������������������������������������������������������������������������������������������������������

35

Subtotal ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Accumulated other comprehensive income directly relating to assets classified as held for sale ������������������������������������������������

6

Total equity attributable to owners of the parent��������������������������������������������������������������������������������������������������������������������������
Non-controlling interests����������������������������������������������������������������������������������������������������������������������������������������������������������

20

Total equity��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Total liabilities and equity��������������������������������������������������������������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued Growth¥238,772
1,467,762
496,876
5,571,285(443,482)
290,268
7,621,481–
7,621,481
1,387,723
9,009,204¥36,096,476¥

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

Management: The Foundation Supporting Our Growth$2,193,991
13,694,064
4,565,616
36,256,731(933,713)(3,328,669)
52,448,020
1,890,058
54,338,078
13,409,023
67,747,101$342,343,949

Financial Section

Corporate Information

100

b. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Notes

Continuing operations1������������������������������������������������������������������������������������������������������������������������������������������������������������
Net sales������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Cost of sales����������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Gross profit��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Selling, general and administrative expenses����������������������������������������������������������������������������������������������������������������������������
Gain relating to loss of control over subsidiaries�����������������������������������������������������������������������������������������������������������������������
Other operating loss ����������������������������������������������������������������������������������������������������������������������������������������������������������������
Operating income (excluding income from SoftBank Vision Fund and other SBIA-managed funds)��������������������������������
Operating income from SoftBank Vision Fund and other SBIA-managed funds ������������������������������������������������������������������������
Operating income ��������������������������������������������������������������������������������������������������������������������������������������������������������������������
Finance cost ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income on equity method investments ������������������������������������������������������������������������������������������������������������������������������������
Dilution gain from changes in equity interest����������������������������������������������������������������������������������������������������������������������������
Foreign exchange gain (loss)����������������������������������������������������������������������������������������������������������������������������������������������������
Derivative gain (loss)����������������������������������������������������������������������������������������������������������������������������������������������������������������
Gain relating to settlement of variable prepaid forward contract using Alibaba shares��������������������������������������������������������������
Gain (loss) from financial instruments at FVTPL ������������������������������������������������������������������������������������������������������������������������
Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds ����������������������������������������������������������
Other non-operating loss����������������������������������������������������������������������������������������������������������������������������������������������������������
Income before income tax��������������������������������������������������������������������������������������������������������������������������������������������������������
Income taxes����������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Net income from continuing operations ��������������������������������������������������������������������������������������������������������������������������������
Discontinued operations1
Net income from discontinued operations������������������������������������������������������������������������������������������������������������������������������
Net income��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
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 2020

Table of Contents

Message from Our CEO

Who We Are

38
39
39
40
41
8
42
43
44
45
46
47
8
48
23

6

20

Our Path to Continued Growth(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥6,093,548(3,567,185)
2,526,363(1,866,315)
176,261(19,314)816,995
1,256,641
2,073,636(341,937)
320,101
44,068
10,894
158,423–
36,832(586,152)(33,192)
1,682,673(237,023)¥1,445,650¥6,185,093(3,485,042)
2,700,051(2,024,167)
11,879(121,051)
566,712(1,931,345)(1,364,633)(300,948)
638,717339,842(11,107)(71,811)
1,218,527(668,463)
540,930(285,562)
35,492(797,697)¥ (762,205)$56,832,610(32,022,806)
24,809,804(18,599,348)
109,152(1,112,294)
5,207,314(17,746,439)(12,539,125)(2,765,304)
5,868,942
3,122,687(102,058)(659,846)
11,196,609(6,142,268)
4,970,413(2,623,927)
326,123(7,329,753)$ (7,003,630)

8,968¥1,454,618(38,555)¥ (800,760)(354,268)$ (7,357,898)¥1,411,199
1,402,756
8,443
43,41942,894525¥1,454,618¥ (961,576)(930,027)(31,549)
160,816
167,822(7,006)¥ (800,760)$ (8,835,578)(8,545,686)(289,892)
1,477,680
1,542,056(64,376)$ (7,357,898)

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

101

Consolidated Statement of Income

Notes

(Yen)

(Yen)

(U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥630.19
3.89¥634.08¥(463.29)(15.21)¥(478.50)$(4.26)(0.14)$(4.40)¥624.453.82¥628.27¥(470.12)(15.21)¥(485.33)$(4.32)(0.14)$(4.46)

Earnings per share2
Basic earnings per share
Continuing operations����������������������������������������������������������������������������������������������������������������������������������������������������������

50

Discontinued operations ������������������������������������������������������������������������������������������������������������������������������������������������������

50

Total basic earnings per share ��������������������������������������������������������������������������������������������������������������������������������������������������

50

Diluted earnings per share
Continuing operations����������������������������������������������������������������������������������������������������������������������������������������������������������

50

Discontinued operations ������������������������������������������������������������������������������������������������������������������������������������������������������

50

Total diluted earnings per share ����������������������������������������������������������������������������������������������������������������������������������������������

50

Notes:
1. Continuing operations and discontinued operations are presented separately for the fiscal year ended March 31, 2020. In order to reflect the change, the presentation has been reclassified similarly for the fiscal year ended March 31, 2019. The details are described in “Note 6.
Discontinued operations.”
2. 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, 2019.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

102

Consolidated Statement of Comprehensive Income

Notes

Net income(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥1,454,618¥ (800,760)$ (7,357,898)(1,204)(3,664)(4,868)(21,281)(6,245)(27,526)(195,544)(57,383)(252,927)

1,145
8,766
27,22815,40652,54547,677¥1,502,295(1,502)56,157(521,620)
4,912(462,053)(489,579)¥(1,290,339)(13,801)
516,007(4,792,980)
45,134(4,245,640)(4,498,567)$(11,856,465)

1,376,061
126,234(1,169,573)(120,766)(10,746,789)(1,109,676)¥1,440,235
1,330,698
109,537
62,060¥1,502,295¥(1,425,587)(1,329,357)(96,230)
135,248¥(1,290,339)$(13,099,210)(12,214,987)(884,223)
1,242,745$(11,856,465)

Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan��������������������������������������������������������������������������������������������������������������������������

49

Equity financial assets at FVTOCI ��������������������������������������������������������������������������������������������������������������������������������������

30, 49Total 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��������������������������������������������������������������������������������������������������������������������������������������������

30, 49Cash flow hedges ����������������������������������������������������������������������������������������������������������������������������������������������������������������

30, 49Exchange differences on translating foreign operations��������������������������������������������������������������������������������������������������������

34, 49

Share of other comprehensive income of associates��������������������������������������������������������������������������������������������������������������

21, 49Total 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����������������������������������������������������������������������������������������������������������������������������������������������������������
Note:*The details of discontinued operations are described in “Note 6. Discontinued operations.”

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103

c. Consolidated Statement of Changes in Equity(Millions of yen)

For the fiscal year ended March 31, 2019

As of April 1, 2018����������������������������������������������������������������������������������
Effect of retrospective adjustments due to adoption of new standards*��
As of April 1, 2018 (after adjustments)��������������������������������������������������
Comprehensive income
Net income��������������������������������������������������������������������������������������������
Other comprehensive income ����������������������������������������������������������������
Total comprehensive income������������������������������������������������������������������
Transactions with owners and other transactions
Cash dividends ��������������������������������������������������������������������������������������
Distribution to owners of other equity instruments ��������������������������������
Transfer of accumulated other comprehensive income to retained earnings ������
Purchase and disposal of treasury stock��������������������������������������������������
Changes from business combination������������������������������������������������������
Changes in interests in subsidiaries��������������������������������������������������������
Changes in associates’ interests in their subsidiaries��������������������������������
Changes in interests in associates’ capital surplus ����������������������������������
Share-based payment transactions ��������������������������������������������������������
Other ����������������������������������������������������������������������������������������������������
Total transactions with owners and other transactions ����������������������
As of March 31, 2019������������������������������������������������������������������������������

Notes

36
35
35
35

Equity attributable to owners of the parent
Accumulated othercomprehensive income
Total

Common stock

Capital surplus

Other equity
instruments

Retainedearnings

Treasury stock

Non-controllinginterests¥238,772–
238,772¥256,768–
256,768¥496,876–
496,876¥3,940,259
300,615
4,240,874¥(66,458)–(66,458)¥317,959(57,828)
260,131

Total equity¥5,184,176
242,787
5,426,963¥1,088,846
21,3001,110,146¥6,273,022
264,087
6,537,109

–
–
–

–
–
–

–
–
–

1,411,199–
1,411,199––––
29,03629,036

1,411,199
29,036
1,440,235

43,41918,64162,0601,454,618
47,677
1,502,295

–
–
–
–
–
–
–
–
–
–
–
¥238,772

–
–
–
739
–
1,164,459
41,579(1,832)
6,049–
1,210,994¥1,467,762

–
–
–
–
–
–
–
–
–
–
–
¥496,876(47,951)(31,736)(1,101)
–
–
–
–
–
–
–
(80,788)¥5,571,285–––(377,024)
–
–
–
–
–
–
(377,024)¥(443,482)

–
–
1,101
–
–
–
–
–
–
–
1,101
¥290,268(47,951)(31,736)–(376,285)–
1,164,459
41,579(1,832)
6,049–
754,283¥7,621,481(30,907)
–
–
–
6,115
236,191
–
–
2,414
1,704
215,517¥1,387,723(78,858)(31,736)–(376,285)
6,115
1,400,650
41,579(1,832)8,463
1,704
969,800¥9,009,204

Note:*In accordance with the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers,” cumulative effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings and accumulated other comprehensive income.

SoftBank Group Corp. ANNUAL REPORT 2020

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Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

104

(Millions of yen)

For the fiscal year ended March 31, 2020

As of April 1, 2019����������������������������������������������������������������������������������
Effect of retrospective adjustments due to adoption of new standards*������
As of April 1, 2019 (after adjustments)��������������������������������������������������
Comprehensive income
Net income��������������������������������������������������������������������������������������������
Other comprehensive income ����������������������������������������������������������������
Total comprehensive income������������������������������������������������������������������
Transactions with owners and other transactions
Cash dividends ��������������������������������������������������������������������������������������
Distribution to owners of other equity instruments ��������������������������������
Transfer of accumulated other comprehensive income to retained earnings������
Purchase and disposal of treasury stock��������������������������������������������������
Retirement of treasury stock ������������������������������������������������������������������
Changes from business combination������������������������������������������������������
Changes in interests in subsidiaries��������������������������������������������������������
Changes in associates’ interests in their subsidiaries��������������������������������
Changes in interests in associates’ capital surplus ����������������������������������
Share-based payment transactions ��������������������������������������������������������
Transfer of accumulated other comprehensive income held for sale ������
Other ����������������������������������������������������������������������������������������������������
Total transactions with owners and other transactions ����������������������
As of March 31, 2020������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Notes

4

36
35
35
35
9
35

6

Commonstock Capital surplus

Other equity
instruments

Retainedearnings

Treasury stock

Accumulated
other comprehensive
income¥ 290,268–
290,268¥238,772–
238,772¥1,467,762–
1,467,762¥496,876–
496,876¥5,571,285
13,997
5,585,282¥(443,482)–(443,482)

–
–
–

–
–
–

–
–
–

(961,576)–(961,576)

–
–
–

–
–
–
–
–
–
–
–
–
–
–
–
–
¥238,772

–
–
–
(739)
–
–
42,358(24,843)
3,583
2,204
–
–
22,563¥1,490,325

–
–
–
–
–
–
–
–
–
–
–
–
–
¥496,876(68,752)(31,071)(17,179)(2,748)(558,136)
–
–
–
–
–
–
–
(677,886)¥3,945,820–––(216,270)
558,136
–
–
–
–
–
–
–
341,866¥(101,616)

Table of Contents

Message from Our CEO

Who We Are

Equity attributable to owners of the parent
Accumulated
other comprehensive income
directly relating toassets classified asheld for sale
Subtotal
Total¥

Total equity–––¥7,621,481
13,997
7,635,478¥1,387,723 ¥9,009,204(1,357)
12,6401,386,366 9,021,844–(961,576)(464,011)(464,011)(464,011) (1,425,587)–––(961,576)(464,011)(1,425,587)

160,816(800,760)(25,568)(489,579)
135,248 (1,290,339)–(68,752)–(31,071)
17,179––(219,757)–––––
42,358–(24,843)
–
3,583
–
2,204
(205,695)(205,695)––(188,516)(501,973)¥(362,259) ¥5,707,918

–
–
–
–
–
–
–
–
–
–
205,695–
205,695¥205,695

Our Path to Continued Growth¥7,621,481
13,997
7,635,478

Noncontrollinginterests(68,752)(157,894)(226,646)(31,071)–(31,071)–––(219,757)–(219,757)––––
191,325
191,325
42,358(94,359)(52,001)(24,843)–(24,843)
3,583
–
3,583
2,204
(750)
1,454
–
–
–
–
(632)
(632)
(296,278)(62,310)(358,588)¥5,913,613 ¥1,459,304 ¥7,372,917

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

105

(Thousands of U.S. dollars)Notes$2,193,991 $13,486,741

As of April 1, 2019����������������������������������������������������������������������������������
Effect of retrospective adjustments due to adoption of new standards*������

Commonstock Capital surplus

4

As of April 1, 2019 (after adjustments)��������������������������������������������������

Other equity
instruments

Retainedearnings

Treasury stock

Accumulated
other comprehensive
incomeEquity attributable to owners of the parent
Accumulated
other comprehensive income
directly relating toassets classified as
Subtotal
held for saleTotal

$4,565,616 $51,192,548 $(4,074,998) $ 2,667,169 $70,031,067$

Noncontrollinginterests

Total equity– $70,031,067 $12,751,291 $82,782,358

–

–

–

128,613––

128,613–

128,613(12,469)

116,144

2,193,991

13,486,741

4,565,616

51,321,161(4,074,998)

2,667,169

70,159,680–

70,159,680

12,738,822

82,898,502–(7,357,898)

Comprehensive income
Net income��������������������������������������������������������������������������������������������

–

–

–

(8,835,578)–(8,835,578)–(8,835,578)

1,477,680

Other comprehensive income ����������������������������������������������������������������

–

–

–

–

–

(4,263,632) (4,263,632)–(4,263,632)(234,935) (4,498,567)

Total comprehensive income������������������������������������������������������������������

–

–

–

(8,835,578)–(4,263,632) (13,099,210)– (13,099,210)

1,242,745 (11,856,465)

Transactions with owners and other transactions
Cash dividends ��������������������������������������������������������������������������������������

36

–

–

–

(631,738)––(631,738)–(631,738) (1,450,831) (2,082,569)

Distribution to owners of other equity instruments ��������������������������������

35

–

–

–

(285,500)––(285,500)–(285,500)

–

–

–

–

(157,852)–

157,852

–

–

–

–

–

(25,250) (1,987,227)–(2,019,268)–(2,019,268)–(2,019,268)

Transfer of accumulated other comprehensive income to retained earnings������

(285,500)

Purchase and disposal of treasury stock��������������������������������������������������

35–(6,791)–Retirement of treasury stock ������������������������������������������������������������������

35

–

–

–

(5,128,512)

5,128,512

–

–

–

–

–

–

Changes from business combination������������������������������������������������������

9

–

–

–

–

–

–

–

–

–

1,758,017

1,758,017

Changes in interests in subsidiaries��������������������������������������������������������

35–

389,212

–

–

–

–

389,212–389,212(867,031)(477,819)

Changes in associates’ interests in their subsidiaries��������������������������������

–(228,273)

–

–

–

–

(228,273)–(228,273)–(228,273)

Changes in interests in associates’ capital surplus ����������������������������������

–32,923––––32,923–32,923–32,923

Share-based payment transactions ��������������������������������������������������������

–20,252––––

20,252–

20,252(6,892)

13,360

–

–

–

–

–

(1,890,058) (1,890,058)

1,890,058

–

–

–

–

–

–

–

–

–

–

(5,807)(5,807)–

207,323–(6,228,852)

3,141,285

1,890,058(2,722,392)

Transfer of accumulated other comprehensive income held for sale��������
Other ����������������������������������������������������������������������������������������������������
Total transactions with owners and other transactions ����������������������
As of March 31, 2020������������������������������������������������������������������������������

6$2,193,991 $13,694,064––(1,732,206) (4,612,450)$4,565,616 $36,256,731 $ (933,713) $(3,328,669) $52,448,020(572,544) (3,294,936)$1,890,058 $54,338,078 $13,409,023 $67,747,101

Note:*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. The details are described in “(3) Effect of adopting new standards and interpretations” under “Note 4. Changes
in accounting policies.”

SoftBank Group Corp. ANNUAL REPORT 2020

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Corporate Information106

d. Consolidated Statement of Cash Flows

Notes(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥1,445,650
8,968
1,454,618
1,694,187(176,261)(1,302,838)
633,769(316,794)(44,068)(158,230)–(38,443)
586,152
243
236,684(189,651)(470,686)
108,223
44,6602,061,565
49,966(608,146)(434,360)
102,839
1,171,864¥ (762,205)(38,555)(800,760)
2,051,472(11,879)
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
49,688(597,772)(1,201,986)
444,632
1,117,879$ (7,003,630)(354,268)(7,357,898)
18,850,243(109,152)
16,951,824
5,637,076(5,849,077)(3,122,687)
612,515(11,196,609)
6,141,735(4,970,413)
2,670,018
6,328,254(2,230,056)(3,443,187)
815,2902,539,118
22,266,994
456,565(5,492,713)(11,044,620)
4,085,565
10,271,791

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��������������������������������������������������������������������������������������������������������������������
(Gain) loss on investments at SoftBank Vision Fund and other SBIA-managed funds��������������������������������������������������������������

8

Finance cost��������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income on equity method investments����������������������������������������������������������������������������������������������������������������������������������
Dilution gain from changes in equity interest������������������������������������������������������������������������������������������������������������������������
Derivative (gain) loss ������������������������������������������������������������������������������������������������������������������������������������������������������������
Gain relating to settlement of variable prepaid forward contract using Alibaba shares����������������������������������������������������������
(Gain) loss from financial instruments at FVTPL ��������������������������������������������������������������������������������������������������������������������
Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds ������������������������������������������������������
Foreign exchange (gain) loss and other non-operating loss����������������������������������������������������������������������������������������������������
Income taxes������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Increase in trade and other receivables����������������������������������������������������������������������������������������������������������������������������������
Increase in inventories����������������������������������������������������������������������������������������������������������������������������������������������������������
Increase in trade and other payables ������������������������������������������������������������������������������������������������������������������������������������
Other������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Subtotal ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Interest and dividends received ��������������������������������������������������������������������������������������������������������������������������������������������
Interest paid ������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Income taxes paid����������������������������������������������������������������������������������������������������������������������������������������������������������������

51

Income taxes refunded ��������������������������������������������������������������������������������������������������������������������������������������������������������

51

Net cash provided by operating activities����������������������������������������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

107Notes(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

(1,364,954)(822,628)
292,582(1,576,790)
428,865(65,134)
91,016(298,620)
344,031(302,531)
47,895(454,544)
752,808
19,988(2,908,016)(1,232,551)(1,098,640)
283,892(1,816,291)
129,832(388,259)
2,506(245,070)
86,449(210,379)
95,134(10,583)693
116,346(4,286,921)(11,325,471)(10,095,011)
2,608,582(16,689,249)
1,192,980(3,567,573)
23,027(2,251,861)
794,349(1,933,097)
874,152(97,243)
6,368
1,069,063(39,390,984)(65,411)6,189,112(7,128,379)–
2,133,682(486,388)
2,350,262(229,818)(31,736)(384,102)(47,918)(30,901)(66,112)2,202,291
57,729–523,868
3,334,650¥3,858,518

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

1,223,679
79,040,026(51,885,758)(6,389,507)
16,940,733(7,087,035)
3,997(762,033)(285,500)(2,131,581)(630,883)(1,442,608)
245,237
26,838,767(3,144)(2,214,298)(4,497,868)
35,454,544$ 30,956,676

Cash flows from investing activities
Purchase of property, plant and equipment, and intangible assets����������������������������������������������������������������������������������������

51

Payments for acquisition of investments��������������������������������������������������������������������������������������������������������������������������������
Proceeds from sales/redemption of investments��������������������������������������������������������������������������������������������������������������������
Payments for acquisition of investments by SoftBank Vision Fund and other SBIA-managed funds����������������������������������������
Proceeds from sales of investments by SoftBank Vision Fund and other SBIA-managed funds������������������������������������������������
Payments for acquisition of control over subsidiaries ������������������������������������������������������������������������������������������������������������

9

Proceeds from loss 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��������������������������������������������������������������������
Payments for loan receivables ����������������������������������������������������������������������������������������������������������������������������������������������
Collection of loan receivables������������������������������������������������������������������������������������������������������������������������������������������������
Payments into time deposits ������������������������������������������������������������������������������������������������������������������������������������������������
Proceeds from withdrawal of time deposits��������������������������������������������������������������������������������������������������������������������������
Other������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Net cash used in investing activities������������������������������������������������������������������������������������������������������������������������������������������Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net������������������������������������������������������������������������������������������������������������������

24

Proceeds from interest-bearing debt ������������������������������������������������������������������������������������������������������������������������������������

24

Repayment of interest-bearing debt��������������������������������������������������������������������������������������������������������������������������������������

24

Repayment of lease liabilities������������������������������������������������������������������������������������������������������������������������������������������������
Contributions into SoftBank Vision Fund and other SBIA-managed funds from third-party investors��������������������������������������

8

Distribution/repayment from SoftBank Vision Fund and other SBIA-managed funds to third-party investors��������������������������

8

Proceeds from the partial sales of shares of subsidiaries to non-controlling interests��������������������������������������������������������������

51

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 ������������������������������������������������������������������������������������������������������������������

20

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������������������������������������������

6

Increase (decrease) 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������������������������������������������������������������������������������������������������������������������
Note:*Cash flows from continuing operations and cash flows from discontinued operations are included. The details are described in “Note 6. Discontinued operations.”
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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 lying in the SoftBank
Vision Fund and Other SBIA-Managed Funds segment, the SoftBank segment, the Arm segment, andthe Brightstar segment. The details are described in “(1) Description of reportable segments” under“Note 7. Segment information.” In addition, for the fiscal year ended March 31, 2020, Sprint has beenclassified as discontinued operations as it is highly probable that Sprint will merge with T-Mobile andwill no longer be a subsidiary of the Company. The details are described in “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 ¥108.83 to $1, theapproximate rate of exchange at March 31, 2020. Such translations should not be construed as
representations that the Japanese yen amounts could be converted into U.S. dollars at that or any otherrate.

“Defined benefit liabilities” previously in the consolidated statement of financial position as ofMarch 31, 2019, is now included in “Other non-current liabilities.”(Consolidated statement of income)a. Continuing operations and discontinued operations are separately presented for the fiscal year
ended March 31, 2020. In order to reflect the change, the presentation has been similarly
reclassified for the fiscal year ended March 31, 2019. The details are described in “Note 6.
Discontinued operations.”b. Amounts presented under “Dilution gain from changes in equity interest” were previously
included in “Other non-operating income” for the fiscal year ended March 31, 2019 are
separately presented for the fiscal year ended March 31, 2020 since the amount increased andbecame significant. In order to reflect the change, ¥44,068 million, which was previously
included in “Other non-operating income” in the consolidated statement of income for the
fiscal year ended March 31, 2019 was reclassified as “Dilution gain from changes in equity
interest.”(Consolidated statement of cash flows)a. Net income from continuing operations and net income from discontinued operations are
separately presented for the fiscal year ended March 31, 2020. In order to reflect the change,
the presentation has been similarly reclassified for the fiscal year ended March 31, 2019. The
details are described in “Note 6. Discontinued operations.”b. Amounts presented under “Dilution gain from changes in equity interest” were previously
included in “Foreign exchange (gain) loss and other non-operating loss” in cash flows fromoperating activities for the fiscal year ended March 31, 2019 are separately presented for the
fiscal year ended March 31, 2020 since the amount increased and became significant. In orderto reflect the change, ¥(44,068) million, which was previously included in “Foreign exchange(gain) loss and other non-operating loss” in cash flows from operating activities for the fiscal
year ended March 31, 2019 was reclassified as “Dilution gain from changes in equity interest” incash flows from operating activities.

(4) Changes in presentation(Consolidated statement of financial position)
Amounts presented under “Other non-current liabilities” for the fiscal year ended March 31,
2020 include “Defined benefit liabilities” which was separately presented as non-current
liabilities for the fiscal year ended March 31, 2019 since the amount decreased and became notsignificant. In order to reflect the change, ¥99,351 million, which was separately presented as

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(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.

Consolidated Statement of Income(6) Definition of company names and abbreviations used in annual report 2020 including thisnote
“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:

Previous

Current

Operating income (excluding
income from SoftBank Vision
Fund and Delta Fund)
Operating income from SoftBank
Vision Fund and Delta Fund
Change in third-party interests in
SoftBank Vision Fund and Delta
Fund

Operating income (excluding income from SoftBank Vision
Fund and other SBIA-managed funds)
Operating income from SoftBank Vision Fund and other
SBIA-managed funds
Change in third-party interests in SoftBank Vision Fund andother SBIA-managed funds

Consolidated Statement of Cash Flows
Company name / Abbreviation

Definition

SoftBank Group Corp. or SBG
The Company
The Group

SoftBank Group Corp. (stand-alone basis)
SoftBank Group Corp. and its subsidiaries
Softbank Group Corp. and its subsidiaries and associates* Each of the following abbreviations indicates the respective company, and its subsidiaries, if any.

SoftBank Vision Fund, Vision Fundor SVF
Delta Fund
SBIA
SprintArm
Brightstar
Fortress
Alibaba
WeWork
T-Mobile

SoftBank Vision Fund L.P. and its alternative investment
vehiclesSB Delta Fund (Jersey) L.P.
SB Investment Advisers (UK) Limited
Sprint Corporation
Arm Limited
Brightstar Global Group Inc.
Fortress Investment Group LLC
Alibaba Group Holding Limited
The We Company
T-Mobile US, Inc.

From the three-month period ended December 31, 2019, the description of “SoftBank Vision Fundand Delta Fund” presented in the names of accounts and reportable segment has been changed to“SoftBank Vision Fund and other SBIA-managed funds” as follows;

Current

Investments from SoftBank Vision
Fund and Delta Fund accounted
for using FVTPL
Third-party interests in SoftBank
Vision Fund and Delta Fund

Investments from SoftBank Vision Fund and other SBIAmanaged funds accounted for using FVTPLSoftBank Group Corp. ANNUAL REPORT 2020

Third-party interests in SoftBank Vision Fund and other SBIAmanaged funds

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Current(Gain) loss on investments at
SoftBank Vision Fund and Delta
Fund
Change in third-party interests in
SoftBank Vision Fund and Delta
Fund
Payments for acquisition of
investments by SoftBank Vision
Fund and Delta Fund
Proceeds from sales of investments
by SoftBank Vision Fund andDelta FundContributions into SoftBank Vision
Fund and Delta Fund from thirdparty investors
Distribution/repayment from
SoftBank Vision Fund and Delta
Fund to third-party investors(Gain) loss on investments at SoftBank Vision Fund and other
SBIA-managed funds
Change in third-party interests in SoftBank Vision Fund andother SBIA-managed funds
Payments for acquisition of investments by SoftBank Vision
Fund and other SBIA-managed funds
Proceeds from sales of investments by SoftBank Vision Fundand other SBIA-managed funds
Contributions into SoftBank Vision Fund and other SBIAmanaged funds from third-party investors
Distribution/repayment from SoftBank Vision Fund and other
SBIA-managed funds to third-party investors

Segment information

Consolidated Statement of Financial Position
Previous

Previous

Previous

Current

SoftBank Vision Fund and Delta
Fund segment

SoftBank Vision Fund and Other SBIA-Managed Funds
segment

3. Significant accounting policies
Accounting policies the Company has adopted have been applied consistently to all periods presented
in these consolidated financial statements. The Company has adopted IFRS 16 during the three-month
period ended June 30, 2019. The Company has elected not to restate comparative information inaccordance with the transition requirements of IFRS 16. Therefore, the comparative information

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110complies with the previous accounting policies.
Please refer to “(21) Significant accounting policies for the SoftBank Vision Fund and Other
SBIA-Managed Funds segment” for details of SoftBank Vision Fund and Other SBIA-Managed Funds.
(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 SoftBank Vision Fund and Delta Fundby the Company” under “(21) Significant accounting policies for the SoftBank Vision Fund andOther SBIA-Managed Funds segment” for details of SoftBank Vision Fund and Delta Fund.
The subsidiaries’ financial statements are consolidated from the date when control isacquired (“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 theparent 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.
Any amounts previously recognized in accumulated other comprehensive income in relation
to the former subsidiaries are reclassified to profit or loss.

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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 tosignificant decisions of the business activities and have rights to the net assets of thearrangement.
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 the 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
are added 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.

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(b) Investments accounted for using FVTPL
Among the investments in associates, investments directly made by SoftBank Vision Fund andDelta Fund, investments made by SoftBank Group Corp. or its subsidiaries based on the premiseof transferring to SoftBank Vision Fund and Delta Fund, and preferred stock investments whosefeature 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 SoftBank Vision Fund and Delta Fund – (b) Investments in associates andjoint ventures” under “(21) Significant accounting policies for the SoftBank Vision Fund andOther SBIA-Managed Funds segment” for details of SoftBank Vision Fund and Delta Fund.
(2) Business combinations
Business combinations are accounted for using the acquisition method at the acquisition date.
The consideration transferred in a business combination is measured as the sum of the assets
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 noncontrolling interests at either fair value or by the proportionate share of the non-controlling interests in
the recognized amounts of the acquiree’s identifiable net assets. When a business combination isachieved in stages, the Company’s previously held interest in the acquiree is remeasured at fair value atthe acquisition date and the resulting gain or loss, if any, is recognized in profit or loss.

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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 functional currency.
Transactions in currencies other than the entity’s functional currency (foreign currencies) aretranslated at the rates of exchange prevailing at the dates of the transactions.
		 Monetary items denominated in foreign currencies are translated into the functional currency
at the rates prevailing at the end of the fiscal year. Non-monetary items carried at fair value 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.

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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.
The exchange rates used in the translation are described in “Note 34. Foreign currency
exchange rates.”

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Exchange differences arising from translating the financial statements of foreign operations
are recognized in other comprehensive income and cumulative differences are included inaccumulated 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 initial recognition. Transaction costs that are directly attributable to the acquisition of financial assets andissuance of financial liabilities other than financial assets at FVTPL and financial liabilities at fairvalue 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 initial recognition. Transaction costs that are directly attributable to the acquisition or issuance of the financial
assets at FVTPL or financial liabilities at FVTPL are recognized in profit or loss.
b. Non-derivative financial assets
Non-derivative financial assets are classified as “financial assets at amortized cost,” “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 a regular way are recognized andderecognized on a trade date basis. Purchases and sales made in a regular way refer to acquiring
or disposing financial assets under a contract that requires the delivery of assets within atimeframe established by regulation or convention in the marketplace.
(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 thatare solely payments of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, financial assets at amortized cost are measured at
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.
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Message from Our CEO(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,and gains or losses arising from changes in fair value are recognized in other comprehensive
income. Any cumulative amounts recognized in other comprehensive income are reclassified to
profit or loss upon derecognition. Foreign exchange gains and losses arising on monetaryfinancial 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 “(21) Significant accounting policies for the SoftBank Vision
Fund and Other SBIA-Managed Funds segment” for the details of “Investments from SoftBank
Vision Fund and other SBIA-managed funds accounted for using FVTPL” in the consolidated
statement of financial position. Neither financial assets are designated as measured at fair value
through profit or loss to eliminate or significantly reduce an accounting mismatch.
Subsequent to initial recognition, financial assets at FVTPL are measured at fair value andgains or losses arising from changes in fair value, dividend income and interest income arerecognized 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

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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 for financial assets at an amount equal to the 12-month expected credit losses. If thecredit 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 allowance at an amount equal to the lifetime expected credit losses for tradereceivables 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 reduce theloss 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 theentire 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
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.

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Message from Our CEO

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 foreignexchange rate, interest rate, and share price risks.
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 are met: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 inequity. 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 othercomprehensive income previously recognized in other comprehensive income and includes them

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in the measurement 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.
(5) Cash and cash equivalents
Cash and cash equivalents consist of cash, demand deposits and short-term investments with maturitiesof three months or less that are readily convertible to cash and subject to insignificant risk of change invalue.
(6) Inventories
Inventories are stated at the lower of cost or net realizable value. Inventories mainly consist of mobile
devices and accessories. Their costs comprise all costs of purchase and other costs incurred in bringing
the inventories to their present location and condition. The costs are mainly calculated by the movingaverage method.

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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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2–20 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.
(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
in cash-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.”

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(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 initialrecognition and are measured at fair value at the acquisition date. Any internally-generated researchand development expenditure is recognized as an expense in the period in which it is incurred, except
for expenditures on development activities eligible for capitalization (internally-generated intangible
assets). The amount initially recognized for internally-generated intangible assets is the sum of theexpenditures incurred from the date when the intangible asset first meets all of the capitalization
criteria to the date the development is completed.
There are intangible assets with finite useful lives and intangible assets with indefinite useful lives.
The intangible assets with finite useful lives are amortized over the estimated useful lives by thestraight-line method.
The estimated useful lives of major categories of intangible assets with finite useful lives are as
follows:
Software. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5–10 years
Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8–20 years
Customer relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8–25 years
Spectrum migration costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     18 years
Management contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3–10 years
Trademarks (with finite useful lives) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8–10 years
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2–20 years

interpretations” under “Note 4. Changes in accounting policies,” except for lease transactions ofintangible assets restated, the Company has elected not to restate comparative information inaccordance with the transitional provision of IFRS 16. Therefore, except for lease transactions ofintangible assets, the comparative information for the fiscal year ended March 31, 2019 complies with
IAS 17. Accounting policies for the fiscal year ended March 31, 2020 are as follows.

Amortization 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.
Spectrum migration costs are the amounts that SoftBank Corp. incurred in connection with thecosts arising from the migration of existing users to the other frequency spectrum based on thetermination campaign. Useful lives are estimated based on the actual utilization of the frequency
spectrum in the past.
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
for use 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 to leases of intangible assets.
(10) Leases
The Company has adopted IFRS 16 during the three-month period ended June 30, 2019. As describedin (2) Significant accounting policies changed due to the adoption of new standards and
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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. Throughout 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:• the lessee has the right to operate the asset; or• the 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:• periods 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 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.

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(b) Lease transactions of intangible assets
The Company does not apply IFRS 16 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. As a result of the adoption of IFRS
16, favorable lease contracts that were previously recognized as intangible assets, except for
those related to FCC licenses, have been reclassified to the right-of-use assets, and related items
in other non-current liabilities as well as unfavorable lease contracts that were previously
recognized as other current liabilities are deducted from the right-of-use assets. Further, if theright-of-use asset is impaired, an impairment loss is deducted from the carrying amount of theright-of-use asset. The details of lease terms by asset classes for right-of-use assets held forleases are described in “Note 17. 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 ofliability reduced by the remeasurement of the lease liability exceeds the carrying amount of the

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Table of Contentsright-of-use asset, any remaining amount of the remeasurement after reducing the right-of-use
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 to lease components and non-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.
(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

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independent of the cash inflows from other assets or groups of assets.
		 Intangible assets with indefinite useful lives and intangible assets that are not yet available
for use are tested for impairment annually regardless of whether there is any indication of
impairment.
		 The recoverable amount is the higher of fair value less costs to sell, or value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects the time value of money and the risks specific to theasset.
		 If the recoverable amount of an asset or cash-generating unit is estimated to be less than its
carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its
recoverable amount, and an impairment loss is recognized in profit or loss.
		 At the end of the fiscal year, the Company evaluates whether there is any indication that an
impairment loss recognized in prior years has decreased or extinguished. If such indication of areversal 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 tobe 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 orgroups 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) Retirement benefits
Defined contribution plans are post-employment benefit plans under which an employer pays fixed
contributions into a separate fund and will have no legal or constructive obligations to pay further
contributions. Defined benefit plans are post-employment benefit plans other than defined contribution

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plans.
The Company primarily adopts defined contribution pension plans.
SoftBank Corp. has frozen its defined benefit lump-sum plans since March 2006 and 2007.
Liabilities for the frozen defined benefit lump-sum plans are recognized as defined benefit liabilities
until they are paid in the form of a lump sum at the time of future retirement of employees.
a. Defined contribution plans
Contributions paid for defined contribution plans are recognized as expenses in the period inwhich the employees render the related service. Contributions payable are recognized asliabilities.
b. Defined benefit plans
The liability recognized in respect of the defined benefit plans (the defined benefit liability) is thepresent value of the defined benefit obligation less the fair value of plan assets at the end of the
fiscal year.
The defined benefit obligation is determined by independent actuaries using the projected
unit credit method, and its present value is determined by applying a discount rate based on theyield curve of high-quality corporate bonds over the approximate period of the benefit
payments.
Defined benefit cost includes service cost, net interest on the net defined benefit liability(asset), and remeasurements of the net defined benefit liability (asset). Service cost and net
interest are recognized in net profit or loss. Net interest is determined using the discount rate
described above.
The liabilities for the frozen defined benefit plans are calculated on the basis of retirement
benefits vested at the time the plans were frozen. Therefore, service cost is not incurred for
those defined benefit plans.
The Company’s remeasurements, which comprise actuarial gains and losses and the returnon plan assets (excluding amounts included in net interest), are recognized in other comprehensive income and reclassified to retained earnings immediately from accumulated other comprehensive income.
(13) Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a 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 loss on interest

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repayment as provisions.
Provision for loss on interest repayment is recorded based on an amount representing future
expected claims in order to prepare for future claims by debtors and other, for repayment of interest
paid in excess of the rate permitted under the Interest Rate Restriction Act.
(14) Treasury stock
When the Company acquires its own equity share capital (“treasury stock”), the consideration paid,
including any directly attributable incremental costs (net of income taxes), is deducted from equity. No
gain or loss 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.
(15) 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 ofwhether 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) Share-based payments
The Company grants stock options and restricted stock unit awards as equity-settled share-based
compensation and cash-settled share-based compensation.
Equity-settled share-based compensation is measured at fair value on the grant date. The fair valueof stock 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.

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Table of Contents(17) Revenue
The Company has changed the reporting segment from the three-month period ended June 30, 2019.
Please refer to “Note 7. Segment information” for details.
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.
As a practical alternative to estimating the stand-alone selling price of an option identified as aseparate performance obligation, the SoftBank segment allocates the transaction price to thetelecommunications services pertaining to the option, referring to the telecommunications
services that are expected to be provided and the corresponding amount of consideration
expected to be received from the subscriber.
Basic charges and mobile communications service fees are billed to subscribers on a monthly
basis and are generally due within a short period of time. Mobile device payments for indirect
sales are billed to dealers at the time of sale to the respective dealers and are generally due
within a short period of time. In addition, mobile device payments for direct sales can be paid infull at the time of sale or paid in monthly installment over the contract period, normally due
within a short period of time. As a result of both quantitative and qualitative analysis, theCompany has determined that these transaction prices do not include significant financing
components due to the timing of payment, and accordingly, they have not been adjusted forsuch financing components. When the period between the revenue recognition and the

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payment is one year or less, the Company 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 good and service based on historical experience.
The SoftBank segment provides optional additional warranty services for mobile devices.
Under the contracts 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, theSoftBank segment considers that dealers involved in indirect sales act as principals.
Basic monthly charges and mobile communications service fees are recognized as revenue
when mobile communications services are provided to subscribers. Discounts on mobile
communications charges are deducted from the revenues recognized from monthly mobile
communications services. Commission fees paid to dealers related to the sales of mobile devices
are deducted from sales.
Other fees are primarily made up of activation fees received at the inception of the contractand upgrade fees. These fees are recognized as contract liabilities, then reversed when themobile communications services are provided, and are recognized as revenue.
(b) Direct sales
For direct sales, as the revenues from the sales of mobile devices and mobile communications
services, including related fees, are considered to be one transaction, the total amount oftransactions is allocated to sales of mobile devices and mobile communications service revenue
based on the ratio of their stand-alone selling prices. Discounts on mobile communications
charges related to mobile communications service revenue are deducted from the totaltransaction prices.
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 is determined as a result of the provision of mobile communications services. If the amount of revenue
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 is thenreversed when the mobile communications services are provided, and is recognized as revenue.
Stand-alone selling prices of mobile devices and mobile communications services are priced
at their observable prices when the mobile devices and mobile communications services are sold

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independently to customers at the inception of the contract.
The amount allocated to sale of mobile device is recognized as revenue at the time ofdelivery to the subscribers, representing the point in time when subscribers are considered tohave obtained control of the mobile devices. Amounts allocated to mobile communications
service revenues are recognized as revenue when services are provided to subscribers.
Contract assets are included in “Other current assets” or “Other non-current assets,” andcontract liabilities are included in “Other current liabilities” or “Other non-current liabilities” inthe consolidated statement of financial 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. 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.
d. 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 andInternet of Things (“IoT”) solutions for enterprise customers. Revenues are also driven by thesales 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 arepresented on a net basis by excluding payment to third parties from the total consideration
received from customers.
e. Internet 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.

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Display advertising mainly comprises premium advertising, Yahoo! Display Ad Network (YDN)
and others.
Revenues from premium advertising are recognized over the period in which the related
advertisement is displayed.
Revenues from Yahoo! Display Ad Network (YDN) 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.
f. E-commerce business
Revenues from sale of goods are recognized when a customer obtains control of goods, that is,at the time the customer has the ability to direct the use of goods and to obtain substantially allof the remaining economic benefits from the goods.
Revenue from e-commerce related commission fees is mainly generated from Yahoo!
Auctions. Yahoo! Auctions provides online auction services to individual and corporate
customers. System usage fees charged to the sellers according to auction proceeds arerecognized as revenue when the auction transactions are completed.
Revenue from membership fees is generated from the sale of the Yahoo! Premium service toindividual users with which they can enjoy a variety of membership privileges. Its revenues arerecognized over the period during which the membership is valid.
Arm segment
In the Arm segment, revenue is mainly generated from licenses to Arm’s technology and royalties
arising from the subsequent sale of licensees’ chips that contain Arm’s technology.
The license revenue related to right to use intellectual property is recognized when 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.

(18) Costs to obtain contracts
The Company recognizes the costs that would not have been incurred if the telecommunications service
contract had not been obtained and that are expected to be recovered, as assets from the costs to obtain
contracts. The Company capitalizes mainly the sales commissions that the Company pays to dealers for
obtaining and maintaining mobile telecommunications service contracts with subscribers.
The costs to obtain contracts are amortized on a straight-line basis over the period during which goods
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 in accordance with IFRS 15, the Company accounts for the costs to obtain
contracts as expenses when incurred if the amortization period of the costs to obtain contracts is one year
or less.
(19) Income tax
Income tax expense is composed of current and deferred taxes, and recognized in profit or loss, except 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 beavailable against which deductible temporary differences, net operating loss carryforwards and tax
credit carryforwards can be utilized. The recoverability of deferred tax assets is reassessed at the end of
the fiscal year.
Deferred tax assets are not recognized for temporary differences from initial recognition of assets
and liabilities that do not arise from business combinations and that do not impact accounting profit or
taxable income.
Deferred tax assets are recognized for deductible temporary differences associated with investments
in subsidiaries and associates when it is probable that the temporary difference will reverse in theforeseeable future and when there will be sufficient taxable profits against which the temporary
differences can be utilized.

Brightstar segment
In the Brightstar segment, revenues are generated mainly from distribution of mobile devices totelecommunications service providers and retailers overseas.
Revenue in the Brightstar segment is recognized when the customer gains control over the
products in which the customer is able to direct the use of the product and obtain almost all of
the remaining benefits from the products.
For transactions conducted by the Company on behalf of third parties, revenue is presented
on a net basis by excluding payment to third parties from the total consideration received from
customers.

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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 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.

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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.
(20) Earnings per share
Basic earnings per share is calculated by dividing net income attributable to owners of the parent by theweighted-average number of ordinary shares (after adjusting for treasury stocks) outstanding for 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 weightedaverage number of ordinary shares (after adjusting for treasury stocks) outstanding for the period.
(21) Significant accounting policies for the SoftBank Vision Fund and Other SBIA-Managed
Funds segment
For Softbank Vision Fund and Delta Fund, the Company applies the same accounting policies asfollows.
a. Consolidation of SoftBank Vision Fund and Delta Fund by the Company
The funds are limited partnerships established by their respective general partners which are
wholly-owned subsidiaries of the Company, and by their form of organization, qualify as
structured entities. The funds are consolidated by the Company for the following reasons.
		 The various entities comprising the funds make investment decisions through their respective
investment committees, which were established as committees 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 the funds. Furthermore,
SBIA receives performance fees and the Company receives distributions attributable to limited
partners based on the investment performance as returns from the funds. The Company has theability to affect those returns through its power over the funds, and therefore, the Company isdeemed to have control as stipulated in IFRS 10 over the funds.
		 Inter-company transactions such as management fees and performance fees to SBIA paid or
to be paid from the funds are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund(a) Investments in subsidiaries
Of the portfolio company investments made by the funds, the portfolio companies that theCompany is deemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, theirresults of operations, assets and liabilities are included in the Company’s consolidated financial

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statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in thefunds are eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by the funds, the portfolio companies over which
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 ofthe funds when, as defined under IFRS 11 “Joint Arrangements,” the funds 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 the funds areaccounted for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, andpresented as “Investments from SoftBank Vision Fund and other SBIA-managed funds accounted
for using FVTPL” in the consolidated statement of financial position. The payments for theseinvestments are presented as “Payments for acquisition of investments by SoftBank Vision Fundand other SBIA-managed funds” under cash flows 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 the funds
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. Presentation of the results from the SoftBank Vision Fund and other SBIA-managed funds
business
Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds businessare separated from operating income and loss arising from other businesses, recognized as acomponent of operating income, and presented as “Operating income from SoftBank Vision
Fund and other SBIA-managed funds” in the consolidated statement of income. Gain and loss
arising from “b. Portfolio company investments made by SoftBank Vision Fund and Delta Fund”(realized gain and loss on sales of investments, unrealized gain and loss on valuation of
investments, interest and dividend income from investments, except for gain and loss on
investments in subsidiaries) and operating expenses such as investment research expenses arisingfrom SBIA and administrative expenses arising from each entity, are included in “Operating
income from SoftBank Vision Fund and other SBIA-managed funds.”
d. Bridge Investments
Investments acquired by SoftBank Group Corp. or its subsidiaries with the premise of offeringsuch investments to SoftBank Vision Fund and were made in accordance with the investment

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eligibility criteria of SoftBank Vision Fund at the time of acquisition (“Bridge Investments”) areaccounted for as financial assets at FVTPL. The Company recognizes the decision to transfer suchinvestments after the Company obtains consent from the investment committee and otherbodies (and certain limited partners, if applicable) at SoftBank Vision Fund and approvals fromrelevant regulatory authorities. The Company changes the presentation of Bridge Investments in
its consolidated financial statements in the annual period in which the Company made thedecision to transfer such investments.
If the transfer was agreed from the beginning of the fiscal year to the end of the fiscal year,
the Company presents items relevant to those investments as if SoftBank Vision Fund had madethose investments from the beginning of the fiscal year. Those items would be presented as“Investments from SoftBank Vision Fund and other SBIA-managed funds accounted for using
FVTPL” in the consolidated statement of financial position, “Operating income from SoftBank
Vision Fund and other SBIA-managed funds” in the consolidated statement of income, and“Payments for acquisition of investments by SoftBank Vision Fund and other SBIA-managed
funds” under cash flows from investing activities in the consolidated statement of cash flows.
On the other hand, if the investments have not yet been agreed to be transferred at the endof the fiscal year, the Company presents items relevant to those investments as “Investment
securities” in the consolidated statement of financial position, “Gain (loss) from financial
instruments at FVTPL” in the consolidated statement of income, and “Payments for acquisitionof investments” under cash flows from investing activities in the consolidated statement of cash
flows.
e. Investments that are not Bridge Investments and for which the transfer is agreed
For investments that are not Bridge Investments, if the transfer was agreed from the beginningof the fiscal year to the end of the fiscal year, the Company continues to apply the sameaccounting treatment followed in the periods prior to the agreement. They are accounted for as
financial assets at FVTPL.
		 If the transfer was agreed from the beginning of the fiscal year to the end of the fiscal year,
the Company presents the carrying amounts of those investments at the end of the fiscal year asif the investments had been made by SoftBank Vision Fund on the date the transfer was agreed.
Those investments would be presented as “Investments from SoftBank Vision Fund and other
SBIA-managed funds accounted for using FVTPL” in the consolidated statement of financial
position at the end of the fiscal year, the difference between the carrying amount at the
beginning of the fiscal year and the transferred amount and the respective gain and loss on
those investments arising from the difference between the transferred amount and fair value atthe end of the year as “Gain (loss) from financial instruments at FVTPL” and “Operating income
from SoftBank Vision Fund and other SBIA-managed funds” in the consolidated statement ofincome, respectively, and payments for acquisition of such investments as “Payments foracquisition of investments” under cash flows from investing activities in the consolidated
statement of cash flows.
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f. Contribution from limited partners to SoftBank Vision Fund and Delta FundThe funds issue capital calls to their respective limited partners (“Capital Call”).
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”) areclassified as financial liabilities, “Third-party interests in SoftBank Vision Fund and other SBIAmanaged funds” in the consolidated statement of financial position, due to the predetermined
finite life and contractual payment provision to each of the limited partners at the end of the finite
life within the limited partnership agreements. The liabilities are classified as “financial liabilities
measured at amortized cost” upon initial recognition. The carrying amounts attributable toThird-Party Investors represent the amounts that would be distributed in accordance with thelimited partnership agreements in a theoretical liquidation scenario at the end of each year.
“Third-party interests in SoftBank Vision Fund and other SBIA-managed funds” fluctuates dueto the results of SoftBank Vision Fund and Delta Fund in addition to contributions from Third-Party
Investors in satisfaction of Capital Call, and distributions and repayments of investments toThird-Party Investors. The fluctuations due to the results of SoftBank Vision Fund and Delta Fundare presented as “Change in third-party interests in SoftBank Vision Fund and other SBIA-managed
funds” in the consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund and Delta Fund are included
in “Contributions into SoftBank Vision Fund and other SBIA-managed funds from third-party
investors” under cash flows from financing activities in the consolidated statement of cash flows.
The distributions and repayments of investments to Third-Party Investors are included in“Distribution/repayment from SoftBank Vision Fund and other SBIA-managed funds 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 from the Company as limited partners to SoftBank Vision Fund and Delta Fund are
eliminated in consolidation.

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1234. Changes in accounting policies(1) Adoption of new standards and interpretations
The Company has adopted the following standard during the three-month period ended June 30,
2019.
Standard/interpretation

Outline of the new/revised standards

IFRS 16IFRS 16 replaces the previous IAS 17 and IFRIC 4. Main revisions are:• to apply a control model for the identification of leases,
distinguishing between leases and service contracts; and• to eliminate the finance and operating lease classification for alessee and require the recognition of the right-of-use asset and thelease liability for lease transactions.

LeasesThere are no significant impacts on the consolidated financial statements due to the adoption of
new accounting standards or interpretations other than IFRS16.
(2) Significant accounting policies changed due to the adoption of new standards andinterpretations
In accordance with the transitional provisions of IFRS 16 “Leases,” the Company retrospectively
recognized the cumulative effect arising from initial adoption of this standard by adjusting the balanceof retained earnings as of April 1, 2019. Accordingly, comparative information for the fiscal year ended
March 31, 2019 is not restated, except for lease transactions of intangible assets disclosed below.
The Company does not apply IFRS 16 to leases of intangible assets and, therefore, restatedcomparative information on leases of intangible assets for the fiscal year ended March 31, 2019 inaccordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors.”
In accordance with the transitional provision, the Company adopted a practical expedient that does
not require the Company to reassess whether a contract is, or contains, a lease when applying IFRS 16.
Accordingly, except for the aforementioned leases of intangible assets, the Company applies IFRS 16 tocontracts that were previously identified as a lease under IAS 17 and IFRIC 4 and does not apply IFRS 16
to contracts that were not previously identified as a lease under such standards, at the date of initialadoption.
In addition to the above, the Company applies the following practical expedients in accordance withthe transitional provisions.
• A practical expedient that allows a lessee to rely on its assessment of whether lease contracts areonerous applying IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” on alease-by-lease basis as an alternative to performing an impairment review.
• A practical expedient that allows a lessee to exclude initial direct costs from the measurement of
the right-of-use asset on a lease-by-lease basis at the date of initial adoption.
• A practical expedient that allows a lessee to use hindsight on a lease-by-lease basis, such as indetermining the lease term if the contract contains options to extend or terminate the lease.
• A practical expedient that allows, on a lease-by-lease basis, measurement of a right-of-use asset

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at the date of initial adoption for leases previously classified as an operating lease applying IAS 17
at an amount equal to the lease liability.
(3) Effect of adopting new standards and interpretations
At the initial adoption of IFRS 16, the Company recognized lease liabilities for those lessee’s leasetransactions that were previously classified as an operating lease under IAS 17. These lease liabilities aremeasured at the present value of the lease payments that have not yet been paid at the date of initialadoption of IFRS 16, discounted using the Company’s incremental borrowing rate at that date. The
weighted average incremental borrowing rate applied to lease liabilities at the initial adoption is 3.15%.
The Company does not apply IFRS 16 to leases of intangible assets and, therefore, restatedcomparative information on leases of intangible assets for the fiscal year ended March 31, 2019 inaccordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors.” As a result,the presentation method of the Company’s borrowings for certain software development has beenchanged. The details are described in “(1) Components of interest-bearing debt” under “24. Interestbearing debt.”
Further, before applying IFRS 16, commitments under Sprint’s lease agreements for spectrum
licenses held by third parties were included in the notes for the future minimum lease payments payable
under operating leases as they were deemed to be equivalent to operating leases. These commitments,
however, are not included in “Undiscounted future minimum lease payments payable under operatingleases as of March 31, 2019” in the table below because they are not leases within the scope of IFRS
16. The amount excluded is ¥746,787 million.

The difference between the future minimum lease payments payable under operating leases as ofMarch 31, 2019 excluding the commitments described above and lease liabilities recognized as of April
1, 2019 is as follows:

Undiscounted future minimum lease payments payable underoperating leases as of March 31, 2019�������������������������������������������
Adjustments by discounting the future minimum lease payments
payable under operating leases above�����������������������������������������
Discounted future minimum lease payments payable underoperating leases as of April 1, 2019 �������������������������������������������
Lease obligations relating to leases that were classified as afinance lease�������������������������������������������������������������������������������
Adjustments attributable to revision of the lease term���������������������
Effect from the classification of non-lease component�������������������
Adjustments attributable to other factors �������������������������������������
Lease liabilities as of April 1, 2019�����������������������������������������������������

Message from Our CEO

Who We Are

Our Path to Continued Growth(Millions of yen)(Thousands of
U.S. dollars)¥1,917,239$17,616,824(206,046)(1,893,283)

1,711,193

15,723,541

879,723(124,242)(121,406)(3,470)¥2,341,798

8,083,460(1,141,615)(1,115,556)(31,885)$21,517,945

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124

As a result of the adoption of IFRS 16, the assets recognized under finance leases as a lessee thatwere previously included in property, plant and equipment, are reclassified to right-of-use assets. Leasetransactions, which were previously classified and accounted for as operating leases, are also recorded
as right-of-use assets. As a result, on April 1, 2019, property, plant and equipment decreased by¥1,157,008 million ($10,631,333 thousand) and right-of-use assets increased by ¥2,525,152 million($23,202,720 thousand) .
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 (21) in “Note 3. Significant accounting policies” and “Note 20. Major
subsidiaries”);• significant judgments for the determination of the scope and accounting treatment of associates((1) and (21) in “Note 3. Significant accounting policies” and “Note 21. 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 48. Other non-operating 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 9. Business combinations”);• fair value measurement of financial assets at FVTPL, debt financial assets at FVTOCI, and equity
financial assets at FVTOCI ((4) and (21) in “Note 3. Significant accounting policies,” “Note 8.
SoftBank Vision Fund and other SBIA-managed funds business,” (2) in “Note 31. Fair value offinancial instruments,” and “Note 47. Gain (loss) from financial instruments at FVTPL”);• estimates for impairment of financial assets measured at amortize cost ((4) in “Note 3. Significant
accounting policies,” and “Note 48. Other non-operating loss”);• fair value measurement of derivatives (including embedded derivatives) ((4) in “Note 3. Significant
accounting policies” and (2) in “Note 31. 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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Table of Contents• estimates for impairment of property, plant and equipment, right-of-use assets, intangible assets
and goodwill ((11) in “Note 3. Significant accounting policies,” “Note 18. Goodwill and intangible
assets” and “Note 41. Other operating loss”);• judgments and estimates for accounting treatment of contracts including leases ((10) in “Note 3.
Significant accounting policies,” “Note 17. Right-of-use assets,” and “Note 19. Leases”);• judgments and estimates for recognition and measurement on provisions ((13) in “Note 3.
Significant accounting policies” and “Note 29. Provisions”);• judgments and estimates for salability relating to classification as held for sale ((15) in “Note 3.
Significant accounting policies,” “Note 6. Discontinued operations,” and “Note 15. Assets
classified as held for sale”);• judgments and estimates for revenue recognition and measurement ((17) in “Note 3. Significant
accounting policies” and “Note 38. Net sales”);• estimates for amortization period of costs to obtain contracts ((18) in “Note 3. Significant
accounting policies”);• assessment of recoverability of deferred tax assets ((19) in “Note 3. Significant accounting
policies” and (2) and (4) in “Note 23. Income taxes”);• estimates for measurement of contribution from Third-party interests to SoftBank Vision Fund andDelta Fund ((21) in “Note 3. Significant accounting policies” and (2) in “Note 8. SoftBank Vision
Fund and Other SBIA-Managed Funds business”);• recognition of liabilities and expenses related to contingencies (“Note 53. Contingency”); and• impact of the novel coronavirus (“COVID-19”).
With the recent global outbreak of COVID-19, the Company’s investment businesses, particularly
SoftBank Vision Fund, have been adversely effected, with SoftBank Vision Fund recording an investment
loss of ¥1.1 trillion ($10.1 billion) in the fourth quarter due to a decline in the fair value of its investments. However, for business other than the investment businesses, the impact on the latest results waslimited. The duration and extent of the effects over the longer term cannot be reasonably estimated at
this time. If the pandemic continues, the Company expects that uncertainty will remain in its investment
businesses over the next fiscal year. There are risks and uncertainties in the future earnings, cash flows
and financial conditions of the Company and its investees, depending on the nature and duration ofself-restraint of economic activities and the longer term effects on the demand for our products andservices.
Under such circumstances, significant estimates used in the preparation of our consolidated
financial statements including those associated with the evaluation of goodwill, tangible assets,right-of-use assets, and intangible assets for impairment, the fair value of investments and the expectedcredit losses on the Company’s receivables, loan commitments, and credit guarantees are based on
information and the facts available at the time when the financial statements are prepared andestimated at reasonable amounts, taking into account the duration of the spread of COVID-19 infection
and the risks and uncertainties associated with its impact. However, future uncertainties may cause a
discrepancy between the estimated amount as a result of the best estimate and the subsequent results.

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1256. Discontinued operations
As of March 31, 2020, it is highly probable that Sprint will merge with T-Mobile and will no longer be a
subsidiary of the Company. Accordingly, assets, liabilities, and accumulated other comprehensive
income of Sprint are reclassified as a disposal group classified as held for sale. The disposal groupclassified as held for sale is measured at the carrying amount as the fair value of T-Mobile shares which
the Company acquires from the merger transaction is higher than the carrying amount of Sprint.
Operating results related to Sprint are presented separately from continuing operations, as discontinued
operations, in the consolidated statement of income.
In addition, on April 1, 2020, the merger transaction of Sprint and T-Mobile was completed. As aresult, Sprint is no longer a subsidiary of the Company and the combined new company T-Mobile US,
Inc. became an equity method associate of the Company from that date. The details are described in“(1) Completion of merger of Sprint and T-Mobile” under “Note 56. Significant subsequent events.”

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents(1) Disposal group classified as held for sale

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

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥–
–
–
–
–
–

¥ 240,982
385,511
7,166
97,712
131,240
862,611$ 2,214,298
3,542,323
65,846
897,841
1,205,916
7,926,224

Property, plant and equipment �����������������
Right-of-use assets �����������������������������������
Goodwill���������������������������������������������������
Intangible assets���������������������������������������
Costs to obtain contracts���������������������������
Investments accounted for using the equity
method���������������������������������������������������
Investment securities���������������������������������
Other financial assets �������������������������������
Other non-current assets���������������������������
Total non-current assets �������������������������������
Total assets�������������������������������������������������

–
–
–
–
–

1,890,600
763,529
322,978
5,082,956
196,438

17,372,048
7,015,795
2,967,729
46,705,467
1,804,999

–
–
–
–
–
¥–

3,049
3,225
47,14063,522
8,373,437¥9,236,048

28,016
29,633433,153583,682
76,940,522$84,866,746

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�����������������������������������

–
–
–
–
–
–
–

331,881
202,743
395,415
1,949
8,720
292,041
1,232,749

3,049,536
1,862,933
3,633,327
17,90980,1252,683,460
11,327,290

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 �������������������������������������������

–
–
–
–
–
–
–
–
¥–

3,591,777583,348
5,189
4,298
81,261
746,834
209,515
5,222,222¥6,454,971

33,003,556
5,360,176
47,68039,493746,678
6,862,391
1,925,159
47,985,133$59,312,423

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126

As ofMarch 31, 2019

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020

Accumulated other comprehensive
income directly relating to assets
classified as held for sale¥–

¥ (3,454)$–

209,149

1,921,796¥–¥205,695$1,890,058(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

Net sales�������������������������������������������������������
Cost of sales�������������������������������������������������
Selling, general and administrative
expenses�����������������������������������������������������
Other operating loss�������������������������������������
Non-operating loss���������������������������������������
Income from discontinued operations before
income tax �������������������������������������������������
Income taxes�������������������������������������������������
Net income from discontinued operations�����

¥3,508,688(2,180,486)¥3,321,535(2,131,312)$30,520,399(19,583,865)(920,359)(127,548)(271,666)(956,029)(78,346)(303,396)(8,784,609)(719,893)(2,787,798)

8,629
339
8,968

(147,548)
108,993¥ (38,555)(1,355,766)
1,001,498$ (354,268)

Net income from discontinued operations�����
Other comprehensive income fromdiscontinued operations �����������������������������
Comprehensive income from discontinued
operations���������������������������������������������������

8,968(38,555)(354,268)

117,266(82,211)(755,408)¥ 126,234¥ (120,766)$ (1,109,676)

Cash flow hedges�������������������������������������
Exchange differences on translating
foreign operations�����������������������������������
Total accumulated other comprehensive
income�������������������������������������������������������

(31,738)(2) Results of operations from discontinued operations

SoftBank Group Corp. ANNUAL REPORT 2020¥

Table of Contents(3) Cash flows from discontinued operations

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

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥593,341(526,928)(51,115)¥ 15,298¥ 641,013(549,794)(612,373)¥(521,154)$ 5,890,040(5,051,861)(5,626,877)$(4,788,698)

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, 2019, the Company had six reportable segments, the SoftBanksegment, the Sprint segment, the Yahoo Japan segment, the Arm segment, the SoftBank Vision Fundand Delta Fund segment, and the Brightstar segment. However, from the three-month period ended
June 30, 2019, in accordance with the consolidation of Yahoo Japan Corporation by SoftBank Corp.,
business segments which are regularly reviewed by the Company’s Board of Directors have beenchanged. Accordingly, the Company revised its segment classifications to the following five reportablesegments: the SoftBank Vision Fund and Delta Fund segment, the SoftBank segment, the Sprint
segment, the Arm segment, and the Brightstar segment. The “SoftBank Vision Fund and Delta Fund
segment” was renamed to the “SoftBank Vision Fund and Other SBIA-Managed Funds segment” fromthe three-month period ended December 31, 2019. In addition, from the three-month period ended
March 31, 2020, Sprint has been classified as discontinued operations as it is highly probable that Sprint
will merge with T-Mobile and will no longer be a subsidiary of the Company. Accordingly, the Sprint
segment is excluded from reportable segments.
As a result, for the fiscal year ended March 31, 2020, the Company has four reportable segments:
the SoftBank Vision Fund and Other SBIA-Managed Funds segment, the SoftBank segment, the Armsegment, and the Brightstar segment.
The SoftBank Vision Fund and Other SBIA-Managed Funds segment conducts, mainly through
SoftBank Vision Fund, investment activities in a wide range of technology sectors. The segment incomeof the SoftBank Vision Fund and Other SBIA-Managed Funds segment mainly consists of gain and loss
arising from investments recognized at SoftBank Vision Fund and operating expenses incurred by thefunds and SBIA. The gain and loss mainly arise from investments held by SoftBank Vision Fund including
the investment in the Company’s subsidiary and investments which transfer to SoftBank Vision Fund isagreed (gain and loss on investments at SoftBank Vision Fund and other SBIA-managed funds)

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127

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 Yahoo Japan Corporation (subsequently renamed as Z Holdings Corporation), internet
advertising and e-commerce business. In addition, Yahoo Japan Corporation transitioned to a holding
company structure on October 1, 2019 and changed its trade name to “Z Holdings Corporation” from
“Yahoo Japan Corporation.”
The Arm segment provides, through Arm, designs of microprocessor intellectual property andrelated technology, the sale of software tools, and software services.
The Brightstar segment provides, through Brightstar, distribution of mobile devices overseas.
Information on business segments which are not included in the reportable segments is classified in“Other.” “Other” includes mainly PayPay Corporation, Fortress, the investment fund business in Latin
America, and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions and the corporate general
expenses unallocated to each reportable segment. Expenses arising mainly from SoftBank Group Corp.
and SB Group US, Inc., which manage and supervise investment activities in the internet, communication, and media fields overseas, are included in corporate general expenses.
Segment information for the fiscal year ended March 31, 2019 is presented based on the reportablesegments after the aforementioned change.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Operating income.” Intersegment transaction prices are
determined under the same general business conditions as applied for external customers.
Under the Company’s management system, SoftBank Group Corp., a strategic holding company,
exercises overall control over its investment portfolio comprising the group companies. Based on thissystem, the Company focuses on the maximization of shareholder value (calculated as equity value ofholdings – net interest-bearing debt) over the medium to long term, and endeavors to increase theequity value of holdings. As a result, EBITDA and adjusted EBITDA which were previously disclosed, areno longer disclosed for the three-month period ended June 30, 2019 as they are no longer considered
as major management indicators provided for periodic reports to the management.
Income and loss, which is not attributable to operating income and loss, such as financial cost andincome and loss on equity method investments, is not managed by each reportable segment andtherefore these income and losses are excluded from segment performance.
Discontinued operations are not included. The details are described in “Note 6. Discontinued
operations.”

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128

For the fiscal year ended March 31, 2019
(Millions of yen)
Reportable segments
SoftBank Vision Fundand Other
SBIA-Managed Funds

Net sales
Customers��������������������������������������������������������������������
Intersegment����������������������������������������������������������������
Total��������������������������������������������������������������������������������

SoftBank

ArmBrightstar

Total

Other

Reconciliations

Consolidated–––¥4,626,597
25,519¥4,652,116¥202,616
83¥202,699¥1,082,669–¥1,082,669¥5,911,882
25,602¥5,937,484¥181,666
12,076¥193,742¥–(37,678)¥(37,678)¥6,093,548–¥6,093,548

1,256,641
89–

859,809543,006–

133,966
66,730176,261(23,396)
5,929–

2,227,020
615,754
176,261(90,053)
36,776–(63,331)699–

2,073,636
653,229
176,261¥¥

Segment income����������������������������������������������������������
Depreciation and amortization ������������������������������������
Gain relating to loss of control over subsidiaries�����������

For the fiscal year ended March 31, 2020
(Millions of yen)
Reportable segments
SoftBank Vision Fundand Other
SBIA-Managed Funds

Net sales
Customers��������������������������������������������������������������������
Intersegment����������������������������������������������������������������
Total��������������������������������������������������������������������������������

SoftBank

ArmBrightstar

Total

Other

Reconciliations

Consolidated–––¥4,843,657
18,827¥4,862,484¥206,277
375¥206,652¥955,415–¥955,415¥6,005,349
19,202¥6,024,551¥179,744
16,442¥196,186¥–(35,644)¥(35,644)¥6,185,093–¥6,185,093(1,931,345)
402–

923,314701,984
11,879(42,819)
74,095–(5,328)7,442–(1,056,178)
783,923
11,879(249,549)
46,961–(58,906)
1,133–(1,364,633)
832,017
11,879¥¥Segment income����������������������������������������������������������
Depreciation and amortization ������������������������������������
Gain relating to loss of control over subsidiaries�����������

(Thousands of U.S. dollars)
Reportable segments
SoftBank Vision Fundand Other
SBIA-Managed Funds

Net sales
Customers��������������������������������������������������������������������
Intersegment����������������������������������������������������������������
Total��������������������������������������������������������������������������������
Segment income����������������������������������������������������������
Depreciation and amortization ������������������������������������
Gain relating to loss of control over subsidiaries�����������

SoftBank Group Corp. ANNUAL REPORT 2020

SoftBank

ArmBrightstar

Total

Other

–
–
–

$44,506,634
172,995$44,679,629$1,895,406
3,445$1,898,851$8,778,967–$8,778,967$55,181,007
176,440$55,357,447$1,651,603
151,080$1,802,683(17,746,439)
3,694–

8,484,003
6,450,280
109,152(393,448)
680,832–(48,958)
68,382–(9,704,842)
7,203,188
109,152(2,293,017)
431,508–$$

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Who We Are

Our Path to Continued Growth

Reconciliations$

Consolidated–(327,520)$(327,520)$56,832,610–$56,832,610(541,266)
10,411–(12,539,125)
7,645,107
109,152

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information129

(3) Geographical information
a. Net sales to external customers

Japan�����������������������������������������������������
U.S. �������������������������������������������������������
Other�����������������������������������������������������
Total���������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥4,658,433
718,610
716,505¥6,093,548¥4,882,590
629,988672,515¥6,185,093$44,864,376
5,788,735
6,179,499$56,832,610

Sales are categorized based on the location of external customers.
b. Non-current assets (excluding financial assets and deferred tax assets)
As of March 31, 2020, non-current assets of Sprint are reclassified as a disposal group classified
as held for sale. The details are described in “Note 6. Discontinued operations.”

Japan�����������������������������������������������������
U.K. �������������������������������������������������������
U.S. �������������������������������������������������������
Other�����������������������������������������������������
Total���������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥ 4,151,534
3,406,626
8,220,717
105,524¥15,884,401¥5,337,087
3,119,675
289,850
148,290¥8,894,902$49,040,586
28,665,579
2,663,328
1,362,585$81,732,078

8. SoftBank Vision Fund and other SBIA-managed funds business(1) Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds
business included in the consolidated statement of incomea. Overview
Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds businessin the consolidated statement of income consist of income and loss arising from all entities,
which are various entities comprising SoftBank Vision Fund and Delta Fund, each general partner,
and SBIA as a manager of each fund. Income and loss arising from SoftBank Vision Fund andDelta Fund attributable to Third-Party Investors are accounted for as a component of nonoperating income or loss, and presented as “Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds.” As a result, income before income tax from the SoftBank
Vision Fund and other SBIA-managed funds business includes income and loss attributable to theCompany as limited partners, management fees and performance fees to SBIA.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

b. Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds business
The following table shows income and loss arising from the SoftBank Vision Fund and other
SBIA-managed funds business.

Gain and loss on investments at
SoftBank Vision Fund and other
SBIA-managed funds
Realized gain and loss on sales ofinvestments1 �������������������������������������
Unrealized gain and loss on valuationof investments
Change in valuation for the fiscal
year2 �������������������������������������������
Reclassified to realized gain andloss recorded in the past fiscal
year3 �������������������������������������������
Interest and dividend income frominvestments���������������������������������������
Derivative gain and loss�����������������������
Effect of foreign exchangetranslation4 ���������������������������������������
Operating expenses �������������������������������
Operating income from SoftBank
Vision Fund and other SBIA-managed
funds�������������������������������������������������
Finance cost (interest expenses)���������������
Foreign exchange gain and loss���������������
Derivative gain and loss5�������������������������
Change in third-party interests in
SoftBank Vision Fund and other SBIAmanaged funds�������������������������������������
Other non-operating income and loss�����
Income before income tax�������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥ 296,531¥$

1,378,553(1,877,682)(17,253,349)(365,325)(40,012)(367,656)

4,522–

12,848145

118,056
1,332(11,443)
1,302,838(46,197)

1,494(1,844,867)(86,478)

13,728(16,951,824)(794,615)

1,256,641(33,141)
68
177,373(1,931,345)(22,459)
321–(17,746,439)(206,368)
2,950–(586,152)(232)¥ 814,557

540,930
1,067¥(1,411,486)

4,970,413
9,804$(12,969,640)

58,340536,065

Notes:
1. SoftBank Vision Fund sold the shares in Flipkart Private Limited and the gain realized on the sale is ¥146,682 million for the fiscal
year ended March 31, 2019. In January 2019, SoftBank Vision Fund executed an unwind of the collar transactions that had beenentered into in November 2017 and thereafter, and utilized the NVIDIA Corporation (“NVIDIA”) shares for the repayment ofborrowings. The gain of the NVIDIA shares used for the repayment was treated as realized gain. In addition, NVIDIA shares not
utilizing the collar transactions were all sold in January 2019. The total amount of unrealized gain and loss is recorded as“Operating income from SoftBank Vision Fund and other SBIA-managed funds” in the fiscal year ended March 31, 2018 and theamount of changes in fair value of NVIDIA shares in the fiscal year ended March 31, 2019 is recorded as “Realized gain and loss
on sales of an investment.” The gains and losses arising from the collar transactions are recorded as “Derivative gain and loss.”

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Financial Section

Corporate Information

1302. For investments transferred or agreed to be transferred from the Company to Softbank Vision Fund, gain and loss on thoseinvestments arising from difference between transferred amount and fair value as of each accounting period end (“gain and loss
from the difference”) are presented as “Operating income from SoftBank Vision Fund and other SBIA-managed funds.” In thethree-month period ended March 31, 2019, certain investments were transferred or agreed to be transferred. In the nine-month
period ended December 31, 2018, the gain and loss from the difference relating to those investments were presented as “Gainfrom financial instruments at FVTPL” of ¥65,843 million. In the consolidated statement of income for the fiscal year ended March
31, 2019, the gain and loss from the difference are presented as “Operating income from SoftBank Vision Fund and other
SBIA-managed funds.”
3. This represents the unrealized gains and losses on valuation of investments recorded as “Operating income from SoftBank Vision
Fund and other SBIA-managed funds” in the past fiscal years, which are reclassified to “Realized gain and loss on sales ofinvestments” due to the sales of the shares.
4. Unrealized gains and losses on investments are translated using the average exchange rate for the quarter in which the gains andlosses were recognized, while realized gains and losses on disposal of investments are translated using the average exchange rate
for the quarter in which the shares were disposed of. “Foreign currency translation effects” arise from the different foreign
currency exchange rates used for unrealized gains and losses and realized gains and losses.
5. Derivative gain arising from collar transactions whose underlying is NVIDIA shares for the fiscal year ended March 31, 2019.

(2) Third-party interests in SoftBank Vision Fund and Delta Funda. Terms and conditions of contribution from/ distribution to limited partners
Contributions by the limited partners are classified as “Equity” and “Preferred Equity” depending on the terms and conditions of distribution. Preferred Equity is prioritized over Equity 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 the funds. Those performance-based distributions and performance fees attributed to
SBIA will be allocated using the method specified in the limited partnership agreement. The
amount of performance-based distribution attributed to limited partners will be allocated toeach limited partner based on the proportion of their respective Equity contribution. The amountof performance-based distributions is paid to each limited partner after the funds receive cash
through dividend, or disposition or monetization of investments.
Fixed distributions are defined as distributions of Preferred Equity holders which arecalculated equal to a 7% rate per annum based on their contributions. The fixed distributions
are made every last business day of the months 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.”

SoftBank Group Corp. ANNUAL REPORT 2020

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b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank
Vision Fund and other SBIA-managed funds” included in the consolidated statement of financial
position) are as follows:(Millions of yen)(For reference purposes only)
Links with the consolidated financial
statements
Consolidated
statementof income(Negative
figures represent
expenses)

Consolidated
statement ofcash flows(Negative
figures represent
payments)–
540,930

1,843,660–(771,282)–(771,282)(83,994)¥4,584,419––

Third-party interests(Total of current liabilities andnon-current liabilities)(Breakdown)

As of April 1, 2019������������������������
Contributions from third-party
investors��������������������������������������
Changes in third-party interests�����
Attributable to investors entitled
to fixed distribution������������������
Attributable to investors
entitled to performance-based
distribution������������������������������
Distribution/repayment to thirdparty investors������������������������������
Exchange differences on translating
third-party interests1 ��������������������
As of March 31, 20202 ������������������

Who We Are

Our Path to Continued Growth¥4,136,965
1,843,660(540,930)
179,778(720,708)

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

131

(Thousands of U.S. dollars)(For reference purposes only)
Links with the consolidated financial
statements
Consolidated
statementof income(Negative
figures represent
expenses)

Consolidated
statement ofcash flows(Negative
figures represent
payments)–
4,970,413

16,940,733–(7,087,035)–(7,087,035)(771,790)$42,124,589––

Third-party interests(Total of current liabilities andnon-current liabilities)(3) Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA from SoftBank Vision Fundand Delta Fund, included in income before income tax from the SoftBank Vision Fund and other
SBIA-managed funds business, are as follows.

(Breakdown)

As of April 1, 2019������������������������
Contributions from third-party
investors��������������������������������������
Changes in third-party interests�����
Attributable to investors entitled
to fixed distribution������������������
Attributable to investors
entitled to performance-based
distribution������������������������������
Distribution/repayment to thirdparty investors������������������������������
Exchange differences on translating
third-party interests1 ��������������������
As of March 31, 20202 ������������������

$38,013,094
16,940,733(4,970,413)
1,651,916(6,622,329)

Notes:
1. Exchange 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, 2020, the amount attributable to investors entitled to fixed distribution is ¥2,881,868
million ($26,480,456 thousand) and of this amount, the amount of unpaid fixed distributions is ¥24,691 million ($226,877
thousand).

c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SoftBank Vision Fund’s Third-Party Investors as of March 31,
2020 was $15.8 billion.

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a. Management fees to SBIAManagement fees to SBIA are, in accordance with the limited partnership agreements,
calculated by multiplying 1% per annum by Equity contributions and paid to SBIA by each fundquarterly. 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 agreements. SBIA
is entitled to receive the performance fees when SoftBank Vision Fund and Delta Fund receive
cash through disposition, dividend and monetization of an investment.
During the investment period of SoftBank Vision Fund, payments related to the performancefees to SBIA from disposition, dividends or monetization of investments were withheld. In
accordance with the limited partnership agreement, the amount equivalent to the performancefees withheld during the investment period was temporarily distributed to the limited partners.
After the investment period of SoftBank Vision Fund ended on September 12, 2019, $439
million (¥47,943 million) of the total amount equivalent to the performance fees temporarily
distributed to the limited partners was deducted from the return of contributions and performance-based distributions to the limited partners, and fully paid to SBIA before March 31, 2020.
In addition, the performance fees received are subject to a clawback provision which is
triggered under certain conditions based on future investment performance.

Who We Are

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Financial Section

Corporate Information132

9. Business combinations
For the fiscal year ended March 31, 2020
ZOZO, Inc.

(5) Fair value of assets and liabilities, non-controlling interests and goodwill on the acquisition
date(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 ($3,682,229 thousand). As a result, theCompany holds 50.1% of voting 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 thetarget shares for this business combination, the Company entered into a borrowing arrangement for¥400,000 million ($3,675,457 thousand).
(2) Summary of the acquiree
Name
Nature of business

ZOZO, Inc.
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

SoftBank Group Corp. ANNUAL REPORT 2020

(Thousands of
U.S. dollars)

Acquisition date(November 13, 2019)

Acquisition date(November 13, 2019)

Cash and cash equivalents �������������������������������������������
Trade and other receivables�������������������������������������������
Other current assets�����������������������������������������������������
Property, plant and equipment �������������������������������������
Right-of-use assets�������������������������������������������������������
Intangible assets1 ���������������������������������������������������������
Other non-current assets�����������������������������������������������
Total assets�������������������������������������������������������������������

¥ 22,876
30,4437,770
8,610
20,964503,017
13,799607,479$ 210,199
279,730
71,396
79,114
192,6314,622,044
126,794
5,581,908

Interest-bearing debt (current)��������������������������������������
Lease liabilities (current) �����������������������������������������������
Trade and other payables ���������������������������������������������
Other current liabilities�������������������������������������������������
Lease liabilities (non-current)�����������������������������������������
Deferred tax liabilities���������������������������������������������������
Other non-current liabilities�������������������������������������������
Total liabilities���������������������������������������������������������������

22,0003,854
28,362
9,263
16,735150,269
3,420
233,903

202,150
35,413
260,608
85,114
153,772
1,380,768
31,427
2,149,252

B

373,576

3,432,656

Non-controlling interests2 ���������������������������������������������
C
Goodwill3 ��������������������������������������������������������������������� A – ( B – C)

185,750¥212,911

1,706,790$1,956,363

Net assets���������������������������������������������������������������������

(4) Consideration transferred and the component

Payment by cash���������������������������������������������������������������
Total consideration transferred �����������������������������������������

(Millions of yen)A

(Millions of yen)(Thousands of
U.S. dollars)

Acquisition date(November 13, 2019)

Acquisition date(November 13, 2019)¥400,737¥400,737$3,682,229$3,682,229

Table of Contents

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.

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133Notes:
1. Intangible assets
The components of intangible assets are as follows; the estimated useful lives are from 18 to 25 years for customer relationships.
In addition, intangible assets, such as customer relationships and trademarks, and goodwill recognized by business combinations aremeasured based on assumptions such as estimated future cash flow, discount rate, diminishing rate of existing customers, future sales
forecast generated by trademarks, and royalty rate.

Intangible assets with indefinite useful lives
Trademarks������������������������������������������������������������������������������
Intangible assets with finite useful lives
Customer relationships������������������������������������������������������������
Other ��������������������������������������������������������������������������������������
Total ������������������������������������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Acquisition date(November 13, 2019)

Acquisition date(November 13, 2019)¥178,720$1,642,194

322,0702,227¥503,017

2,959,386
20,464$4,622,044

2. Non-controlling interests
Non-controlling interests are measured based on the proportionate interests in the fair value of the identifiable net assets of theacquiree.
3. Goodwill
Goodwill reflects excess earning power expected from future business development and the synergy between the Company and theacquiree.

(6) Payment for acquisition of control over subsidiaries

Payment for the acquisition by cash �����������������������������������������������Cash and cash equivalents held by the acquireeat the time of acquisition of control ���������������������������������������������
Payment for the acquisition of control overthe subsidiary by cash�������������������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Acquisition date(November 13, 2019)

Acquisition date(November 13, 2019)¥(400,737)$(3,682,229)

22,876210,199¥(377,861)$(3,472,030)(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 ($527,998 thousand) and ¥5,773 million ($53,046
thousand), respectively. In addition, amortization expenses related to intangible assets recognized on
the acquisition date are included in the aforementioned net income.
(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.

Sales (pro forma)�����������������������������������������������������������������������������
Net income (pro forma)�������������������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥6,252,172¥ (798,430)$57,448,975$ (7,336,488)

10. Cash and cash equivalents
The components of cash and cash equivalents are as follows:
As of March 31, 2020, cash and cash equivalents of Sprint are reclassified as a disposal groupclassified as held for sale. The details are described in “Note 6. Discontinued operations.”

Cash and demand deposits1,2 �����������������������
Time deposits (maturities of less than threemonths) �����������������������������������������������������
MMF�������������������������������������������������������������
Other�����������������������������������������������������������
Total �����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥2,387,533¥3,054,482$28,066,544

802,797
532,509
135,679¥3,858,518

173,850132,071
8,612¥3,369,015

1,597,446
1,213,553
79,133$30,956,676

Notes:
1. A subsidiary operating a banking business is obliged to deposit certain amounts, which is determined by a fixed ratio against thedeposits it receives from its customers (“the legal reserve requirement”), in the Bank of Japan in accordance with the Act on Reserve
Requirement System in Japan. As of March 31, 2020, cash and cash equivalents include ¥311,897 million ($2,865,910 thousand) (as ofMarch 31, 2019: ¥237,018 million) of deposits at the Bank of Japan, which is more than the legal reserve requirement.
2. Cash and demand deposits as of March 31, 2020 includes money in trust of ¥3,969 million ($36,470 thousand) to set up for thepurchase of treasury stocks by SoftBank Group Corp. (as of March 31, 2019: ¥15,956 million).

The amount of cash and cash equivalents pledged as collateral for interest-bearing debt or other is
described in “(4) Assets pledged as collateral” under “Note 24. Interest-bearing debt.”

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13411. Trade and other receivables
The components of trade and other receivables are as follows:
As of March 31, 2020, trade and other receivables of Sprint are reclassified as a disposal groupclassified as held for sale. The details are described in “Note 6. Discontinued operations.”

Trade receivables�������������������������������������������
Installment receivables1���������������������������������
Deposits for banking business2 ���������������������
Other�����������������������������������������������������������
Allowance for doubtful accounts �����������������
Total �����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥1,702,466
435,059
53,772
209,811(61,131)¥2,339,977¥1,432,614
410,343
33,341
223,961(27,933)¥2,072,326$13,163,778
3,770,495
306,359
2,057,897(256,666)$19,041,863

Notes:
1. 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 ayear after the period end date are included in “Trade and other receivables,” and those after one year are included in “Other financial
assets (non-current).”
2. The amount is related to The Japan Net Bank, Limited.

12. Other financial assets
The components of other financial assets are as follows:
As of March 31, 2020, other financial assets of Sprint are reclassified as a disposal group classified
as held for sale. The details are described in “Note 6. Discontinued operations.”

Current
Marketable securities���������������������������������
Time deposits (maturities of more than
three months)�����������������������������������������
Other �������������������������������������������������������
Total �����������������������������������������������������
Non-current
Installment receivables1�����������������������������
Loan receivables2,3�������������������������������������
Deposits for banking business4 �����������������
Lease and guarantee deposits�������������������
Advance payments5�����������������������������������
Other �������������������������������������������������������
Allowance for doubtful accounts3 �������������
Total �����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020¥

84,153¥ 230,234$ 2,115,538

614
118,709¥ 203,476

9,925
73,328¥ 313,487

91,197673,785$ 2,880,520

414,593
211,280
147,977
53,332
166,485
231,106(38,917)¥1,185,856

493,526
233,521201,770
61,32744,161
268,207(142,540)¥1,159,972

4,534,834
2,145,741
1,853,992
563,512405,780
2,464,458(1,309,749)$10,658,568

Notes:
1. Installment receivables are described in “Note 11. Trade and other receivables.”
2. Amount includes ¥108,992 million of convertible promissory note issued by WeWork as of March 31, 2019.
3. Amounts include ¥65,913 million ($605,651 thousand) (as of March 31, 2019: ¥35,441 million) of loan re-ceivable and ¥65,913 million($605,651 thousand) (as of March 31, 2019: none) of allowance for doubtful accounts related to OneWeb Global Limited, an equity
method associated of the Company as of March 31, 2020.
4. The amount is related to The Japan Net Bank, Limited.
5. Advance payments are related to the purchase of WeWork shares.

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13513. Inventories
The components of inventories are as follows:
As of March 31, 2020, inventories of Sprint are reclassified as a disposal group classified as held forsale. The details are described in “Note 6. Discontinued operations.”

Merchandise and finished products���������������
Other�����������������������������������������������������������
Total �����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥346,378
18,882¥365,260¥169,431
15,666¥185,097$1,556,841
143,949$1,700,790

The amount of inventories pledged as collateral for interest-bearing debt or other is described in“(4) Assets pledged as collateral” under “Note 24. Interest-bearing debt.”
Write-downs of inventories recognized as an expense during the fiscal year are as follows:

Write-downs of inventories���������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥32,063¥25,979$238,712

14. Other current assets and other non-current assets
The components of other current assets and other non-current assets are as follows:
As of March 31, 2020, other current assets and other non-current assets of Sprint are reclassified asa disposal group classified as held for sale. The details are described in “Note 6. Discontinued
operations.”

Current
Tax receivable1�������������������������������������������
Prepaid expense ���������������������������������������
Contract assets2 ���������������������������������������
Other �������������������������������������������������������
Total �����������������������������������������������������
Non-current
Long-term prepaid expense�����������������������
Other �������������������������������������������������������
Total �����������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥498,026
123,929
113,209
31,392¥766,556¥291,579
77,07765,544
26,770¥460,970$2,679,215
708,233
602,260
245,981$4,235,689

174,811
41,148¥215,959

125,618
14,901¥140,519

1,154,259
136,920$1,291,179

Table of Contents

Notes:
1. Tax receivable as of March 31, 2019 includes withholding income tax of ¥422,648 million related to dividends within the groupcompanies. The withholding income tax was refunded in July 2019. In addition, tax receivable as of March 31, 2020 includes thewithholding income tax of ¥167,097 million ($1,535,395 thousand) related to dividends within the group companies and ¥78,801
million ($724,074 thousand) related to deemed dividends, respectively.
2. Contract assets are recognized as assets in accordance with the adoption of IFRS 15, “Revenue from Contracts with Customers.”

15. Assets classified as held for sale(1) Sprint
As of March 31, 2020, it is highly probable that Sprint will merge with T-Mobile and will no longer be a
subsidiary of the Company. Accordingly, assets of Sprint were transferred to “Assets classified as held
for sale.” The details are described in “Note 6. Discontinued operations.”(2) Sale of Alibaba shares by variable prepaid forward contract
On June 10, 2016, the Company entered into a variable prepaid forward contract to sell Alibaba shareswith Mandatory Exchangeable Trust, and received proceeds of $5.4 billion (¥578,436 million) as
advances on the sale. The Company had the option to settle the variable prepaid forward contract byeither delivering cash, a combination of cash and Alibaba shares, or Alibaba shares.
It was probable that the Company settled the variable prepaid forward contract with Alibaba shares,
and therefore, Alibaba shares of ¥224,201 million related to the settlement were reclassified from
“Investments accounted for using the equity method” to “Assets classified as held for sale” in the
consolidated statement of financial position as of March 31, 2019. The number of Alibaba shares soldthrough the variable prepaid forward contract was determined by the share price trend during theObservation Period, and the number of Alibaba shares classified as “Assets classified as held for sale”
was calculated by the share price of Alibaba shares as of March 31, 2019. The assets classified as held
for sale were measured by the carrying amount as the fair value after deducting expenses arising fromthe sale (expected sale price) was greater than the carrying amount.
The contract was subsequently settled with Alibaba shares on June 3, 2019. The details aredescribed in “Note 46. Gain relating to settlement of variable prepaid forward contract using Alibaba
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13616. Property, plant and equipment
For the fiscal year ended March 31, 2019
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, 2018����������������������������������������������������������
Purchases ��������������������������������������������������������������������
Business combinations��������������������������������������������������
Disposals����������������������������������������������������������������������
Transfer of accounts ����������������������������������������������������
Exchange differences����������������������������������������������������
Other ��������������������������������������������������������������������������
As of March 31, 2019������������������������������������������������������

¥437,533
26,773
2,749(12,771)
19,0097,966(7,244)¥474,015¥5,396,424
14,748–(214,222)
500,669
92,323
7,189¥5,797,131¥ 82,862
39,934
2,428(3,519)
7,987
(652)
(677)
¥128,363¥1,445,006
296,325344(632,811)
609,299
50,837(1,860)¥1,767,140

LandConstruction inprogress

Other

Total

¥88,308
–
114
(992)
55
825
2
¥88,312¥294,881
700,902100(48,940)(563,406)
9,587(5,586)¥387,538¥20,756
4,216
63
(625)
15
243
91
¥24,759¥7,765,770
1,082,898
5,798(913,880)
573,628
161,129(8,085)¥8,667,258

Other

Total

¥(8,922)(3,044)
–
576
672
(14)
11
¥(10,721)¥(3,908,923)(1,188,882)–
562,3812,258(75,760)
12,372¥(4,596,554)

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

Land

Construction inprogress

As of April 1, 2018����������������������������������������������������������
Depreciation����������������������������������������������������������������
Impairment loss������������������������������������������������������������
Disposals����������������������������������������������������������������������
Transfer of accounts ����������������������������������������������������
Exchange differences����������������������������������������������������
Other ��������������������������������������������������������������������������
As of March 31, 2019������������������������������������������������������

¥(205,638)(30,740)
–
8,854
(7)
(3,778)9,080¥(222,229)¥(3,051,326)(565,809)–
162,76027(52,406)
3,011¥(3,503,743)¥(17,294)(11,951)–
3,203(2,788)270(1,204)¥(29,764)¥(624,615)(577,338)–
386,9623,390(19,832)
1,474¥(829,959)

¥(8)
–
–
–
–
–
–
¥(8)

¥(1,120)
–
–
26
964
–
–
¥(130)

Other

Total

¥14,038¥4,070,704

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

As of March 31, 2019������������������������������������������������������

¥251,786¥2,293,388¥98,599¥937,181¥88,304¥387,408

SoftBank Group Corp. ANNUAL REPORT 2020

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137

The carrying amounts of finance lease assets included in property, plant and equipment are as follows:(Millions of yen)
As ofMarch 31, 2019

Buildings and structures ��������������������������������������������������
Telecommunications equipment ��������������������������������������
Machinery and equipment ����������������������������������������������
Furniture, fixtures, and equipment ����������������������������������
Construction in progress��������������������������������������������������
Other������������������������������������������������������������������������������
Total����������������������������������������������������������������������������

¥33,616
1,002,889
13,862
43,537
3
1,584¥1,095,491

Finance lease obligations of the Company are pledged through the lessor’s retaining the property right of lease assets.
The amount of property, plant and equipment pledged as collateral for interest-bearing debt or other is described in “(4) Assets pledged as collateral” under “Note 24. Interest-bearing debt.”
Property, plant and equipment with restrictions on rights are described in “(5) Assets with restrictions on rights” under “Note 24. Interest-bearing debt.”

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

138

For the fiscal year ended March 31, 2020
Changes in property, plant and equipment at historical cost, are as follows:(Millions of yen)
Historical cost

As of April 1, 2019����������������������������������������������������������
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������������������������������������������������������

Buildings andstructures

Telecommunications
equipment

Machinery andequipment

Furniture, fixtures,and equipment

Land

Construction inprogress¥474,015¥5,797,131¥128,363¥1,767,140

Other

Total

¥88,312¥387,538¥24,759¥8,667,258(51,484)
422,531
10,187
2,749(70,372)
29,493(3,449)(148,757)
12,629¥255,011(2,163,285)
3,633,846
25,952–(473,804)
875,539(45,810)(2,340,869)
7,374¥1,682,228(22,932)
105,43150,039–(2,440)5,059(9,779)(2,316)
1,285¥147,279(72,373)
1,694,767
203,051
3,985(845,139)
634,452(26,072)(1,209,051)
5,502¥ 461,495–
88,312685–(7,141)40(321)(10,603)–¥70,972(3)
387,535
578,739
1,871(23,839)(592,426)(6,701)(161,467)(2,359)¥181,353(65)
24,694
7,891
5
(811)
8,301
(1,137)(2,832)(665)¥35,446(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

Buildings andstructures

Telecommunications
equipment

Machinery andequipment

Furniture, fixtures,and equipment

Land

Construction inprogress$4,355,555$53,267,766

Other

Total

$1,179,482$16,237,618$811,467$3,560,948$227,502$79,640,338(473,068)
3,882,487
93,60525,260(646,623)
271,001(31,692)(1,366,875)
116,042$2,343,205(19,877,653)
33,390,113
238,464–(4,353,616)
8,045,015(420,932)(21,509,409)
67,757$15,457,392(210,714)
968,768
459,790–(22,420)
46,485(89,856)(21,281)
11,808$1,353,294(665,010)
15,572,608
1,865,763
36,617(7,765,680)
5,829,753(239,566)(11,109,538)
50,556$ 4,240,513–
811,467
6,294–(65,616)368(2,950)(97,427)–$652,136(28)
3,560,920
5,317,826
17,192(219,048)(5,443,591)(61,573)(1,483,663)(21,675)$1,666,388(597)
226,905
72,50845(7,452)
76,275(10,447)(26,022)(6,111)$325,701(21,227,070)
58,413,268
8,054,250
79,114(13,080,455)
8,825,306(857,016)(35,614,215)
218,377$26,038,629(Thousands of U.S. dollars)Historical cost

As of April 1, 2019����������������������������������������������������������
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������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

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Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

139

Changes in the accumulated depreciation and impairment losses of property, plant and equipment are as follows:(Millions of yen)
Buildings andstructures

Telecommunications
equipment

Machinery andequipment

Furniture, fixtures,and equipment¥(222,229)¥(3,503,743)¥(29,764)¥(829,959)

18,225(204,004)(32,867)(20,465)
49,788413
1,733
83,685738¥(120,979)

1,099,297(2,404,446)(407,937)(4,053)445,143(181,149)
28,593
1,424,636(905)¥(1,100,118)

7,722(22,042)(12,418)
(156)
2,119
1,189
1,116
1,747
(79)
¥(28,524)

29,231(800,728)(526,302)(1,136)552,678(5,840)11,013474,599(5,857)¥(301,573)

Buildings andstructures

Telecommunications
equipment

Machinery andequipment$(2,041,983)$(32,194,643)

167,463(1,874,520)(302,003)(188,046)
457,484
3,795
15,924
768,952
6,781$(1,111,633)

10,101,048(22,093,595)(3,748,387)(37,242)
4,090,260(1,664,513)
262,731
13,090,471(8,316)$(10,108,591)

Accumulated depreciation and impairment losses

As of April 1, 2019����������������������������������������������������������
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������������������������������������������������������

Land

Construction inprogress

Other

Total

¥(8)

¥ (130)¥(10,721)¥(4,596,554)–(8)–(2,123)
2,123
–
–
–
–
¥(8)

–
(130)
–
(4,306)4,355
2––(5,244)¥(5,323)

20(10,701)(4,130)
(4)
516
(12)
302
628
658
¥(12,743)

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)

Furniture, fixtures,and equipment

Land

Construction inprogress

Other

Total

$(273,491)$(7,626,197)$ (73)$ (1,194)$ (98,512)$ (42,236,093)

70,955(202,536)(114,105)(1,433)
19,471
10,925
10,255
16,053(727)$(262,097)

268,593(7,357,604)(4,836,001)(10,438)
5,078,361(53,662)
101,195
4,360,921(53,819)$(2,771,047)

–
(73)
–
(19,507)
19,507
–
–
–
–
$(73)

–
(1,194)–(39,566)
40,017
18––(48,186)$(48,911)

184(98,328)(37,949)
(37)
4,741
(110)
2,775
5,770
6,047
$(117,091)

10,608,243(31,627,850)(9,038,445)(296,269)
9,709,841(1,703,547)
392,880
18,242,167(98,220)$(14,419,443)(Thousands of U.S. dollars)
Accumulated depreciation and impairment losses

As of April 1, 2019����������������������������������������������������������
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������������������������������������������������������

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.

Buildings and structures �������������������������������
Telecommunications equipment �������������������
Furniture, fixtures, and equipment ���������������
Total���������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

(Millions of yen)(Thousands of
U.S. dollars)Historical cost

Accumulated
depreciation andimpairment losses

Accumulated
depreciation andimpairment losses¥ 3,955
358,224
32,357¥394,536¥ (1,823)(182,308)(21,490)¥(205,621)

Historical cost$

36,341
3,291,592
297,317$3,625,250$(16,751)(1,675,163)(197,464)$(1,889,378)

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140

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

As of March 31, 2020������������������������������������������������������

¥134,032¥582,110¥118,755¥159,922

Other

Total

¥70,964¥176,030¥22,703¥1,264,516

Carrying amounts

Buildings andstructures

Telecommunications
equipment

Machinery andequipment

Furniture, fixtures,and equipment

Land

Construction inprogress$1,231,572$5,348,801$1,091,197

Other

Total

$1,469,466$652,063$1,617,477$208,610$11,619,186(Thousands of U.S. dollars)

As of March 31, 2020������������������������������������������������������

Note:* As a result of the adoption of IFRS 16, assets recognized under finance leases as a lessee that were previously included in property, plant and equipment, are reclassified to right-of-use assets. The details are described in “Note 17. Right-of-use assets.”

Assets subject to operating leases as a lessor are included in the table above. These assets primarily comprise leased mobile devices, which are included in “Furniture, fixtures, and equipment.” Changes in thehistorical cost, accumulated depreciation and impairment losses and carrying amounts for “Furniture, fixtures, and equipment” which includes the assets subject to operating leases as a lessor, are follows:(Millions of yen)
Historical cost

As of April 1, 2019�������������������������������������������������������������������������
Purchases �����������������������������������������������������������������������������������
Business combinations�����������������������������������������������������������������
Disposals�������������������������������������������������������������������������������������
Transfer of accounts �������������������������������������������������������������������
Exchange differences�������������������������������������������������������������������
Transfer to assets classified as held for sale ���������������������������������
Other �����������������������������������������������������������������������������������������
As of March 31, 2020���������������������������������������������������������������������

Accumulated depreciation and impairment losses

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���������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

(Thousands of
U.S. dollars)

Furniture, fixtures, and equipment¥1,341,947
173,060–(810,422)
599,768(23,502)(1,114,037)
2,412¥ 169,226$12,330,671
1,590,187–(7,446,678)
5,511,054(215,951)(10,236,488)
22,163$ 1,554,958(Millions of yen)(Thousands of
U.S. dollars)(Millions of yen)
Carrying amount(Thousands of
U.S. dollars)

Furniture, fixtures, and equipment

As of March 31, 2020���������������������������������������������������������������������

¥43,276$397,648

The amount of “Transfer of accounts” in “Furniture, fixtures, and equipment” for the fiscal year ended
March 31, 2019 and the fiscal year ended March 31, 2020 is mainly due to the transfer of leased
devices from “Inventories” under current assets.
Impairment loss is included in “Other operating loss” and “Net income from discontinued
operations” in the consolidated statement of income. The details are described in “Note 41. Other
operating loss.”
The amount of property, plant and equipment pledged as collateral for interest-bearing debt orother is described in “(4) Assets pledged as collateral” under “Note 24. Interest-bearing debt.”
Property, plant and equipment with restrictions on rights are described in “(5) Assets withrestrictions on rights” under “Note 24. Interest-bearing debt.”

Furniture, fixtures, and equipment¥(595,676)(471,401)(685)
516,585(925)
9,280
418,975(2,103)¥(125,950)$(5,473,455)(4,331,536)(6,294)
4,746,715(8,499)85,271
3,849,812(19,324)$(1,157,310)

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Corporate Information

14117. Right-of-use assets
The components of the carrying amounts of right-of-use assets are as follows:

Carrying amounts

Telecommunications equipment �������������������
Real estate fortelecommunications business ���������������������
Offices, warehouses and other properties�����
Other�����������������������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020¥–

¥816,546$ 7,502,950

–
–
–
¥–

219,149
229,496
28,501¥1,293,692

2,013,682
2,108,757
261,885$11,887,274

Note:* Right-of-use assets increased by ¥217,277 million ($1,996,481 thousand) for the fiscal year ended March 31, 2020. Of this amount,¥20,964 million ($192,631 thousand) is from the acquisition of ZOZO, Inc.

The components of depreciation of right-of-use assets are as follows:

Depreciation

Telecommunications equipment �������������������
Real estate fortelecommunications business ���������������������
Offices, warehouses and other properties �����
Other�����������������������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020¥–¥(223,869)$(2,057,052)

–
–
–
¥–

(48,120)(56,163)(17,373)¥(345,525)(442,157)(516,062)(159,635)$(3,174,906)

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.

transactions 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 three years for a portion thereof. The Company may extend a leasebeyond 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 “Real estate for the telecommunications business”
are mainly comprised of those classified as “Buildings and structures” or “Land” in property, plant andequipment.
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 22 years for offices, mainly 3 years to 15 years for warehouses, and mainly 3 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 otherproperties” are mainly comprised of those classified as “Buildings and structures” or “Land” inproperty, 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.

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 lease

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

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Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

14218. 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

Goodwill

As of April 1,
20181������������������������ ¥4,381,242
Purchases–
Internal–
development����������
Business
75,342
combinations����������
Disposals������������������
–Transfer of–accounts����������������
Exchange(54,842)differences ������������
Other ����������������������
1,494
As of March 31,2019�������������������������� 4,403,236
Effect ofretrospective
adjustments dueto the adoption of–
new standards2 ������
As of April 1, 2019
(after adjustments) ���� 4,403,236
Purchases ����������������
–Internal–
development����������
Business
233,812
combinations����������
Disposals������������������
–Transfer of–accounts����������������
Exchange(234,923)
differences ������������
Transfer to assets
classified as held
(322,978)for sale ������������������
Other ����������������������
(612)
As of March 31,
2020�������������������������� ¥4,078,535
SoftBank Group Corp. ANNUAL REPORT 2020

Intangible assets with finite useful lives

Trademarks

FCC licenses

Other

Software

Customer
relationships

Technologies

Spectrum
migration
costs

Management
contracts

Trademarks

Favorable lease
contracts

FCC licenses

Other

Total

¥678,258–¥3,960,597
17,942¥12,226–¥1,738,147
35,368¥1,061,341–¥587,722–¥146,078–¥120,210–¥66,9287¥46,367–¥90,992–¥196,595
231,478¥8,705,461
284,795

–

–

–

4,052

–

–

–

–

–

–

–

60,10064,152

197
–

–
–

–
–

439
(144,908)

7,415
–

9,822
–

–
–

–
–

240
(34)

–
–

–
(5,290)547(14,570)

18,660(164,802)–––

205,747––

43,402

–

14

–

–

(264,757)(15,594)

29,0485

177,088
(501)

537
–

17,891
177

27,642(985)(15,253)
–

–
–

5,375
–

2,518
(50)

2,073
–

3,986
–

2,220
490

253,125(864)

707,508

4,155,126

12,763

1,856,913

1,095,413

582,291

189,480

125,585

69,62348,44089,688212,103

9,144,933

–

–

–

–

–

–

–

–

–

(48,440)––(48,440)

707,508–

4,155,126
13,69912,763–

1,856,913
56,082

1,095,413–

582,291–

189,480–

125,585–

69,623
19––

89,688–212,103
229,051

9,096,493
298,851

–

–

–

3,793

–

–

–

–

–

–

–

38,102

41,895

178,720
–

–
–

–
–

1,813
(170,467)

322,070
–

–
–

–
–

–
–

73
(57,794)

–
–

–
(744)

341
(8,029)503,017(237,034)––(5,243)

188,562

–

–

–

–

11

–

–

(183,189)

141(13,042)(80,914)(222)(8,789)(27,432)(46,562)–(2,444)(607)–(1,749)(3,365)(185,126)(645,906)–(4,091,250)
3,339

–
(6)

(343,142)
6,905(714,251)
1,971

–
–

–
–

–
–

–
63

–
–

(87,195)–(100,591)
1,079(5,982,335)
13,351¥227,280¥¥ 7,292¥1,591,670¥ 677,771¥535,729¥189,480¥123,141¥11,388–¥¥185,502¥3,549,253–

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Our Path to Continued Growth¥Management: The Foundation Supporting Our Growth–

Financial Section

Corporate Information

143

(Thousands of U.S. dollars)
Intangible assets with indefinite useful lives

Historical cost

Goodwill

As of March 31, 2019 $40,459,763
Effect ofretrospective
adjustments dueto the adoption of–
new standards2 ������
As of April 1, 2019
(after adjustments) ���� 40,459,763
Purchases ����������������
–Internal–
development������������
Business
2,148,415
combinations����������
Disposals������������������
–Transfer of–accounts����������������
Exchangedifferences ������������ (2,158,624)
Transfer to assets
classified as held
for sale ������������������ (2,967,729)
Other ����������������������
(5,623)As of March 31,
2020�������������������������� $37,476,202

Trademarks

FCC licenses$6,501,038 $38,179,969

Intangible assets with finite useful lives
Customer
relationships

Technologies

Spectrum
migration
costs

Management
contracts

Trademarks

Favorable lease
contracts

FCC licenses$117,275 $17,062,510 $10,065,359$5,350,464$1,741,064$1,153,956$639,741$445,098$824,111

Other

Software

Other

Total

$1,948,939 $84,029,524

–

–

–

–

–

–

–

–

–

(445,098)––(445,098)

6,501,038–

38,179,969
125,875

117,275–

17,062,510
515,317

10,065,359–

5,350,464–

1,741,064–

1,153,956–

639,741
175––

824,111–

1,948,939
2,104,668

83,584,426
2,746,035–––

34,853

–

–

–

–

–

–

–

350,105

384,958

1,642,194
–

–
–

–
–

16,659(1,566,360)

2,959,386
–

–
–

–
–

–
–

671
(531,048)–––(6,836)

3,134(73,776)

4,622,044(2,178,020)––(48,176)

1,732,629

–

–

–

–

101

–

–

(1,683,258)

1,296(119,837)(743,490)(2,040)(80,759)(252,063)(427,842)–(22,457)(5,578)–(16,071)(30,920)(1,701,057)(5,935,000) (37,593,035)–
30,681–(55)(3,153,009)
63,447(6,562,997)
18,111

–
–

–
–

–
–

–
578

–
–

(801,204)–(924,295) (54,969,540)
9,915
122,677$ 67,004 $14,625,287$ 6,227,796$4,922,622$1,741,064$1,131,499$104,640–$$2,088,395 $

–

$

–

$1,704,512 $32,612,819

Notes:
1. The Company does not apply IFRS 16 to leases of intangible assets. Accordingly, the presentation of favorable lease contracts related to FCC licenses that were identified in business combinations in the past and were previously included in “Favorable lease contracts” has beenchanged to “FCC licenses” with finite useful lives.
2. As a result of the adoption of IFRS 16, “Favorable lease contracts,” except for those related to FCC licenses, that were previously recognized as intangible assets have been reclassified to relevant right-of-use assets.

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144

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 amortizationand impairment losses

As of April 1,
20181������������������������
Amortization������������
Impairment loss��������
Disposals������������������
Exchangedifferences ������������
Other ����������������������
As of March 31,2019��������������������������
Effect ofretrospective
adjustments dueto the adoption of
new standards2 ������
As of April 1, 2019
(after adjustments) ����
Amortization������������
Impairment loss��������
Disposals������������������
Exchangedifferences ������������
Transfer to assets
classified as held
for sale ������������������
Other ����������������������
As of March 31,
2020��������������������������

Intangible assets with finite useful lives

Technologies

Spectrum
migration
costs

Management
contracts

Trademarks

Favorable lease
contracts

FCC licenses

Goodwill

Trademarks

FCC licenses

Other

Software

Customer
relationships¥(78,689)–––¥(13,380)
–
–
–

¥–
–
–
–

¥–
–
–
–

¥ (998,246)(248,999)–
136,247¥(728,897)(90,814)––¥ (66,119)(42,175)––¥(20,212)(9,746)––¥ (4,877)(25,759)––¥(9,571)(3,085)–29¥(29,821)–––¥(18,260)
–
–
5,290

(3,080)
–

(267)
–

–
–

–
–

(9,676)
3,640(25,418)(1,256)

1,884(3,997)

–
–

(226)
–

(320)
50

(1,337)(4,056)(817)(7,809)109
1,199(36,068)(12,229)(81,769)(13,647)––(1,117,034)(846,385)(110,407)(29,958)(30,862)(12,897)(35,214)(21,596)(34,738)(2,252,738)

–

–

–

–

–

–

–

–

–

–

35,214––35,214(81,769)–––(13,647)
–
–
–

–
–
–
–

–
–
–
–

(1,117,034)(258,081)(1,154)
161,804(846,385)(68,823)––(110,407)(40,019)––(29,958)(10,752)––(30,862)(21,097)(25,710)–(12,897)(48,369)(1)
56,997––––(21,596)––744(34,738)(8,151)(18,126)
3,139(2,217,524)(455,292)(44,991)
222,684

1,401

121

–

–

4,582

16,400

10,318

–

725

204

–

428

495

33,273

–
–

–
–

–
–

–
–

171,905
5,644

695,734
–

–
–

–
–

–
–

–
(7)

–
–

24,292(3,868)

7,448(2,579)899,379(810)¥(80,368)¥(13,526)¥–¥–¥(1,032,334)¥(203,074)¥(140,108)¥(40,710)¥(76,944)¥(4,073)¥–

SoftBank Group Corp. ANNUAL REPORT 2020

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Who We Are

Our Path to Continued Growth¥Management: The Foundation Supporting Our Growth

–

Other

Total

¥(31,528) ¥(1,920,911)(4,790)(425,368)––
272
141,838¥(52,512) ¥(1,563,281)

Financial Section

Corporate Information

145

(Thousands of U.S. dollars)
Intangible assets with indefinite useful lives
Accumulated amortizationand impairment losses

As of March 31,2019��������������������������
Effect ofretrospective
adjustments dueto the adoption of
new standards2 ������
As of April 1, 2019
(after adjustments) ����
Amortization������������
Impairment loss��������
Disposals������������������
Exchangedifferences ������������
Transfer to assets
classified as held
for sale ������������������
Other ����������������������
As of March 31,
2020��������������������������

Intangible assets with finite useful lives

Software

Customer
relationships

Technologies

Spectrum
migration
costs

Management
contracts

Trademarks

Favorable lease
contracts

FCC licenses$–$– $(10,264,026)$(7,777,130)$(1,014,490)$(275,273)$(283,580)$(118,506)$(323,569)$(198,438)

–

–

–

–

–

–

–

–

–

323,569––

323,569(751,346)–––(125,397)
–
–
–

–
–
–
–

–
–
–
–

(10,264,026)(2,371,414)(10,604)
1,486,759(7,777,130)(632,390)––(1,014,490)(367,720)––(275,273)(98,797)––(283,580)(193,853)(236,240)–(118,506)(444,445)(9)523,726––––(198,438)
–
–
6,836

(319,197)(74,897)(166,553)
28,843(20,376,037)(4,183,516)(413,406)
2,046,164

12,873

1,111

–

–

42,102

150,694

94,808

–

6,662

1,874

–

3,933

4,548

305,732

–
–

–
–

–
–

–
–

1,579,574
51,861

6,392,851
–

–
–

–
–

–
–

–
(65)

–
–

223,211(35,542)

68,437(23,696)8,264,073(7,442)$(738,473)$(124,286)$–$– $ (9,485,748)$(1,865,975)$(1,287,402)$(374,070)$(707,011)$ (37,425)

Goodwill

Trademarks

FCC licenses$(751,346)$(125,397)

–

Other

$

–

$

–

Other

Total

$(319,197) $(20,699,606)$(482,515) $(14,364,432)

Notes:
1. The Company does not apply IFRS 16 to leases of intangible assets. Accordingly, the presentation of favorable lease contracts related to FCC licenses that were identified in business combinations in the past and were previously included in “Favorable lease contracts” has beenchanged to “FCC licenses” with finite useful lives.
2. As a result of the adoption of IFRS 16, “Favorable lease contracts,” except for those related to FCC licenses, that were previously recognized as intangible assets have been reclassified to relevant right-of-use assets.

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Financial Section

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146

The carrying amounts of goodwill and intangible assets are as follows:(Millions of yen)
Intangible assets with indefinite useful lives

Carrying amounts

As of March 31,2019��������������������������
As of March 31,
2020��������������������������

Intangible assets with finite useful lives

Goodwill

Trademarks

FCC licenses

Other

Software

Customer
relationships

Technologies

Spectrum
migration
costs

Management
contracts

Trademarks

Favorable lease
contracts

FCC licenses

Other

Total

¥4,321,467¥693,861¥4,155,126¥12,763¥739,879¥249,028¥471,884¥159,522¥94,723¥56,726¥13,226¥68,092¥177,365¥6,892,195¥3,998,167¥213,754¥¥ 7,292¥559,336¥474,697¥395,621¥148,770¥46,197¥ 7,315¥¥¥132,990¥1,985,972

–

–

–

(Thousands of U.S. dollars)
Intangible assets with indefinite useful lives

Intangible assets with finite useful lives

Goodwill

Trademarks

FCC licenses

Other

Software

Customer
relationships

As of March 31,
2020�������������������������� $36,737,729$1,964,109$–$67,004$5,139,539$4,361,821

Carrying amounts

The Company determined that the “Sprint,” “Boost Mobile,” and “ZOZO” trademarks haveindefinite useful lives as they can be legally utilized indefinitely as long as the business continues andmanagement’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”). As long as the Company acts within the requirements ofregulatory authorities, the renewal and extension of FCC licenses are reasonably certain at minimal cost.
Therefore, it is determined that FCC licenses have indefinite useful lives.
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.
Favorable lease contracts are recognized as intangible assets based on the estimated fair value ofthe favorable portion of future cash flows if, at the time of business combinations, the terms ofoperating lease contracts in which the acquiree is the lessee are favorable compared to market terms at
acquisition date. Reversal of favorable lease contracts is recognized as operating lease payments for the
fiscal year ended March 31, 2019.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Technologies

Spectrum
migration
costs

Management
contracts

Trademarks

Favorable lease
contracts

FCC licenses$3,635,220$1,366,994$424,488$67,215

$–

$–

Other

Total

$1,221,997 $18,248,387

Amortization is included in “Cost of sales,” “Selling, general and administrative expenses,”“Operating income from SoftBank Vision Fund and other SBIA-managed funds,” and “Net income fromdiscontinued operations” in the consolidated statement of income.
Impairment losses are included in “Other operating loss” in the consolidated statement of income.
The details are described in “Note 41. Other operating loss.”
Increase due to “Business combinations” is as follows:
For the fiscal year ended March 31, 2020
As a result of consolidating ZOZO, Inc. as a subsidiary in November 2019, the Company recognized
goodwill of ¥212,911 million ($1,956,363 thousand), trademarks of ¥178,720 million ($1,642,194
thousand) (intangible assets with indefinite useful lives), customer relationships of ¥322,070 million($2,959,386 thousand), and other of ¥2,227 million ($20,463 thousand). The details are described in“Note 9. Business combinations.”
The carrying amount of internally-generated intangible assets included in the intangible assets is asfollows:

Software�������������������������������������������������������

Message from Our CEO

Who We Are

Our Path to Continued Growth(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥84,347¥76,134$699,568

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

147

The Company does not applied IFRS 16 to leases of intangible assets. Therefore, since finance leaseassets arising from lease transactions of software are recognized as intangible assets, the note for the
carrying amounts of finance lease assets relating to software, which was disclosed in the financial
statements for the fiscal year ended March 31, 2019, is not disclosed. The intangible assets withrestrictions on rights arising from these transactions are described in “(5) Assets with restrictions onrights c. Assets under lease contracts for intangible assets” under “Note 24. Interest-bearing debt.”
The intangible assets with restrictions on rights due to installment purchase are described in “(5)Assets with restrictions on rights a. Assets with restrictions on rights due to the installment purchase”
under “Note 24. Interest-bearing debt.”
Research and development costs included in “Cost of sales” and “Selling, general and administrative
expenses” are as follows:

Research and development costs�������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥165,682¥167,095$1,535,376

Goodwill

Reportable segments

SoftBank

ArmBrightstar–
Sprint (discontinued
operations)

Amounts of goodwill and intangible assets with indefinite useful lives allocated to cash-generating
units or cash-generating unit groups are as follows:(Thousands of
U.S. dollars)

Cash-generating unit orCash-generating unit groups

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

SoftBank1 �����������������
Yahoo2 ���������������������
Marketing solution���Shopping �����������������
Ikyu �������������������������
Finance3 �������������������
Other�����������������������
Subtotal ���������������
Arm �������������������������
Brightstar�����������������
Other�����������������������

¥ 920,479
16,51923,10858,136
72,04420,891
1,524
1,112,701
2,833,051
18,831
27,495¥ 922,459
16,51932,625272,560
72,04423,5042,181
1,341,892
2,607,318
18,77030,187$ 8,476,146
151,787299,779
2,504,456
661,987
215,970
20,041
12,330,166
23,957,714
172,471
277,378

Sprint4 ���������������������

329,389¥4,321,467–¥3,998,167–$36,737,729(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

20,13010,12030,250¥ 198,850
10,120208,970$ 1,827,162
92,9891,920,151

3,191

3,129

28,751

Total���������������������������������������������������������

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.

(Millions of yen)

Intangible assets with indefinite useful lives

Reportable segments

Cash-generating unit

SoftBank

Shopping �����������������
Ikyu �������������������������
Subtotal ���������������
Brightstar US andCanada region �������
Brightstar Asia andOceania region�������
Subtotal ���������������
Other�����������������������

¥

1,695
4,886
12,763

1,655
4,784
7,292

15,207
43,95867,004

Sprint4 ���������������������

4,813,851¥4,861,750–¥ 221,046–$ 2,031,113

Brightstar–
Sprint (discontinued
operations)

Total���������������������������������������������������������

Notes:
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 groupcompanies as a whole, not from individual cash-generating units in the SoftBank segment.
3. The cash-generating unit for the fiscal year ended March 31, 2019 was “Settlement finance,” however it was changed to “Finance”
since the settlement part was allocated to “Shopping” and “Other.”
4. As of March 31, 2020, “Sprint” is excluded from the reportable segments since Sprint is reclassified as a disposal group classified asheld for sale. The details are described in “Note 6. Discontinued operations.”

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148

The recoverable amount of each cash-generating unit or cash-generating unit group is measured asfollows:
For the fiscal year ended March 31, 2019
Value in use: Marketing solution, Shopping, Settlement finance, and Ikyu
Fair value less disposal cost: S oftBank, Sprint, Yahoo, Arm, Brightstar, Brightstar US and Canada
region, and Brightstar Asia and Oceania region
For the fiscal year ended March 31, 2020
Value in use: Marketing solution, Shopping, Finance, and Ikyu
Fair value less disposal cost: S oftBank, Yahoo, Arm, Brightstar, Brightstar US and Canada region,
and Brightstar Asia and Oceania region
Value in use is assessed by discounting to the present value the estimated cash flows over the next
five years based on the financial budget approved by the management, which reflects past experienceand external information, using the pre-tax discount rate of 7.8%-9.6% of the cash-generating unit or
cash-generating unit group (for the fiscal year ended March 31, 2019: 9.1%-12.0%). The cash flows
from after five years are assumed to increase on the basis of the growth rate of 0.6% (for the fiscal year
ended March 31, 2019: 0.7%).
For SoftBank and Yahoo, the fair value less disposal cost is measured mainly based on active market
prices.
For Arm, it is measured by discounting the cash flows which are estimated based on the businessplans 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% (for the fiscal year ended March 31, 2019: 10.6%). The cash flows
from after nine years are assumed on the basis of the growth rate 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 (forthe fiscal year ended March 31, 2019: 19.2% on the 11th year, 9.9% on the 12th year, and 3.9% on
the 13th year, and 2.3% on the 14th year). The cash flows from the 15th year onward are assumed toincrease on the basis of the growth rate of 2.0% (for the fiscal year ended March 31, 2019: 2.0% fromthe 15th year onward). Fair value is classified into level 3 as its fair value is measured using unobservable inputs.
In Brightstar (cash-generating unit group), Brightstar US and Canada region, and Brightstar Asia andOceania region, it is measured using the income approach and the market approach. Under the income
approach, fair value is measured by discounting cash flows which are estimated based on businessplans for the next 10 years while taking into account future cash flows that market participants would
expect to receive in accordance with their assumptions, discounted to the present value using a post-tax
discount rate of 10.0-12.5% (for the fiscal year ended March 31, 2019: 10.0-13.0%). The cash flows
from after 10 years are assumed on the basis of a 2.0% growth rate (for the fiscal year ended March

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

31, 2019: 2.5%). Under the market approach, EV/EBITDA of similar companies which are comparable
to the respective companies is used. Fair value is classified into level 3 as its fair value is measured using
unobservable inputs.
Other than the above, as a result of an annual impairment test of goodwill and intangible assets
with indefinite useful lives for cash-generating units or cash-generating unit groups, no impairment loss
was recognized.
For Arm, assumptions used for the fair value measurement of the impairment test on goodwill andintangible assets with indefinite useful lives include management’s significant judgments and estimates.
Changes in precondition in business plans, such as a decline of the overall IoT market growth, anincrease in competitive companies’ market share and a decrease in Arm’s market share, and an increasein risk of M&A achievement, could impact the estimated fair value, potentially leading to a futurematerial impairment of goodwill or intangible assets with indefinite useful lives.
The recoverable amount of the cash generation unit for shopping may equal to its carrying amounton the assumption that the pre-tax discount rate increases approximately 2% or permanent growthrate decreases approximately 3%.
The Company determined that for cash-generating units or cash-generating unit groups to which
the goodwill and intangible assets with indefinite useful lives are allocated, the recoverable amount isunlikely to fall below the carrying amount, even if major assumptions used in the impairment testchange to a reasonably foreseeable extent.
19. Leases
For the fiscal year ended March 31, 2019
(1) Finance leases(As lessee)
The Company has leased assets, including wireless equipment, switching equipment, power supply
systems and transmission facilities.
The components of finance lease obligations are as follows:(Millions of yen)
As ofMarch 31, 2019

The total minimum lease payments
Within 1 year �������������������������������������������������������������������������������������������������������������
1 to 5 years�����������������������������������������������������������������������������������������������������������������
Over 5 years ���������������������������������������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������������
Deduction–future financial expense �������������������������������������������������������������������������������
Present value of finance lease obligations�����������������������������������������������������������������������

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555,832
19,334921,443(28,971)¥892,472

Corporate Information

149

The components of the present value of finance lease obligations are as follows:(Millions of yen)
As ofMarch 31, 2019

¥334,517
542,715
15,240¥892,472

Within 1 year�����������������������������������������������������������������������������������������������������������������
1 to 5 years���������������������������������������������������������������������������������������������������������������������
Over 5 years�������������������������������������������������������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������������������������������������

five years each. At the establishment of the cell site leases, it is assumed that at least one renewal
option is exercised for contracts less than 10 years.
Cell site leases in Japan contain only land or buildings for the placement of cell sites. Most of thecontract terms are 10 years or 20 years. At the establishment of the cell site leases, it is reasonably
certain that they will be used until the contract term expires.
The components of the future minimum lease payments related to non-cancelable operating leases
are as follows:(Millions of yen)

The outstanding balance by year of maturity of financial lease obligations is described in “(2) Financial
risk management c. Liquidity risk” under “Note 30. Financial instruments.”
Certain lease contracts have financial covenants. Major contents are described in “(2) Financial
covenants” under “Note 24. Interest-bearing debt.”
The Company does not apply IFRS 16 to leases of intangible assets. As a result, the presentation of
the components of finance lease obligations and the present value of finance lease obligations as ofMarch 31, 2019 is restated. The details are described in “Notes 5” in “(1) Components of interestbearing debt” under “Note 24. Interest-bearing debt.”
The components of the future minimum lease payments receivable under non-cancelable subleases
are as follows:(Millions of yen)
As ofMarch 31, 2019

Future minimum lease payments receivable���������������������������������������������������������������������

¥33,660(2) Operating leases(As lessee)
The Company leases towers, land and buildings for the placement of telecommunications equipment,
and telecommunication lines under operating leases. Certain operating lease contracts have automatic
renewal options and escalation clauses.
In addition to the non-cancelable period, an automatic renewal option is included in the lease term
to the extent that, at the inception of the lease, it is reasonably certain that the option will be exercised.
For operating leases with escalation clauses or a portion of which is free of charge, the total lease
payment amount is amortized over the lease term by the straight line method.
Cell site leases
Cell site leases in the U.S. are generally provided by the cell phone tower operators who provide tower
and ground space to place Sprint-owned antennae, radio, and related equipment. The contract terms
generally provide for an initial non-cancelable term of 5 to 12 years with up to five renewal options for

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

As ofMarch 31, 2019

Within 1 year�����������������������������������������������������������������������������������������������������������������
1 to 5 years���������������������������������������������������������������������������������������������������������������������
Over 5 years�������������������������������������������������������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������������������������������������

¥ 379,470
1,019,023
518,746¥1,917,239

Note:* Before applying IFRS 16, commitments under Sprint’s lease agreements for spectrum licenses held by third parties were included in thedisclosure for the future minimum lease payments payable under non-cancelable operating leases, as they were deemed to beequivalent to operating leases. These commitments, however, are not included in the table above because they are not leases within thescope of IFRS 16.

The Company passed a resolution to relocate its head office at the Board of Directors meeting held inJanuary 2019, and entered into a building lease contract with a 20-year contract period from
September 2020, effective January 23, 2019.
In the contract, non-cancelable period is determined during the contract period and an option tocancel the contract after the non-cancelable period is granted. Planned total payment amount(including area maintenance fees) during the contract period is ¥200,955 million.
Operating lease payments recognized as expenses for the fiscal year ended March 31, 2019 totaled¥157,317 million.
(As lessor)
Sprint provides a device leasing program to its qualifying subscribers in the U.S. and SoftBank Corp.
provides device rental service to corporate customers in Japan. The Company classifies certaintransactions as operating leases for the device leasing program and device rental service. At the end of
the lease term of the device leasing program at Sprint, the subscriber has the option to turn in theirdevice, continue leasing their device, or purchase their device. Since device leases are provided on thecondition that subscribers maintain telecommunication services with the Company, the amount ofrevenue from these transactions is separated into the amount of payments to be received for device
leases and other elements based on the fair value of telecommunication service and lease.

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The components of the future minimum lease payments receivable under non-cancelable operatingleases are as follows:(Millions of yen)
As ofMarch 31, 2019

Within 1 year�����������������������������������������������������������������������������������������������������������������
1 to 5 years���������������������������������������������������������������������������������������������������������������������
Over 5 years�������������������������������������������������������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������������������������������������

¥409,615
74,503
2,163¥486,281(1) Finance leases
The components of revenue recognized for finance leases are as follows:

For the fiscal year ended March 31, 2020
(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 17. 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 30. Financial instruments.”
The amount of the lease liabilities as of March 31, 2020 is ¥1,140,326 million ($10,478,048
thousand). The weighted average interest rate for the lease liabilities as of March 31, 2020 is 1.52 %and their due dates range 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 51. Supplemental information to theconsolidated statement of cash flows.”(4) Leases not yet commenced to which the Company is committed
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 ($2,156,602 thousand).

SoftBank Group Corp. ANNUAL REPORT 2020

(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.

Table of Contents(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020

¥2,053113¥2,166$18,864
1,038$19,902

Selling profit or loss, net����������������������������������������������������������������
Finance income on the net investment in the lease������������������������
Total������������������������������������������������������������������������������������������

Of this amount, revenue recognized for subleases is ¥975 million ($8,959 thousand).
The maturity analysis of the undiscounted total lease payments and the net investment in the leaseat the end of the fiscal year is as follows:
As of March 31, 2020
(Millions of yen)

Within 1 year����������������
1 to 2 years��������������������
2 to 3 years��������������������
3 to 4 years��������������������
4 to 5 years��������������������
Over 5 years������������������
Total��������������������������

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Undiscounted totallease payments

Unearned financeincome relating to
the lease payments
receivable

Discounted
unguaranteed
residual value

Net investment in
the lease¥13,908
7,936
3,113
567
153
–
¥25,677¥ (99)
(53)
(20)
(3)
–
–
¥(175)

¥–
–
–
–
–
–
¥–

¥13,809
7,883
3,093
564
153
–
¥25,502

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151

(Thousands of
U.S. dollars)

Undiscounted totallease payments

Unearned financeincome relating to
the lease payments
receivable

Discounted
unguaranteed
residual value

Net investment in
the lease$127,796
72,921
28,604
5,210
1,406
–
$235,937$ (910)
(487)
(184)
(28)
–
–
$(1,609)

$–
–
–
–
–
–
$–

$126,886
72,43428,420
5,182
1,406
–
$234,328(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020

¥25,429
13,203
4,585
427
400
2,657
¥46,701$233,658
121,318
42,1303,924
3,675
24,414$429,119Within 1 year����������������
1 to 2 years��������������������
2 to 3 years��������������������
3 to 4 years��������������������
4 to 5 years��������������������
Over 5 years������������������
Total��������������������������

(2) Operating leases
Analysis of maturities for operating leases is as follows:
As of March 31, 2020

Within 1 year��������������������������������������������������������������������������������
1 to 2 years������������������������������������������������������������������������������������
2 to 3 years������������������������������������������������������������������������������������
3 to 4 years������������������������������������������������������������������������������������
4 to 5 years������������������������������������������������������������������������������������
Over 5 years����������������������������������������������������������������������������������
Total������������������������������������������������������������������������������������������

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, 2020 is ¥57,771 million ($530,837
thousand). Of this amount, income from subleases is ¥30,531 million ($280,538 thousand).
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
16. Property, plant and equipment.”

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15220. Major subsidiaries(1) Organizational structure
The Company’s major subsidiaries are as follows:
Major subsidiaries as of March 31, 2020
Ownership percentage of voting rights (%)
Company Name

SB Investment Advisers (UK) Limited
SoftBank Vision Fund L.P.1
SoftBank Vision Fund (AIV M1) L.P.1
SoftBank Vision Fund (AIV M2) L.P.1
SoftBank Vision Fund (AIV M3) L.P.1
SoftBank Vision Fund (AIV S1) L.P.1
SoftBank Corp.
SB C&S Corp.
Wireless City Planning Inc.2
SB Technology Corp.
ITmedia Inc.
Vector Inc.3
Z Holdings Corporation4
Yahoo Japan Corporation
ValueCommerce Co., Ltd.
ZOZO, Inc.
The Japan Net Bank, Limited5
ASKUL Corporation6
eBOOK Initiative Japan Co., Ltd.7
Arm Limited
Arm PIPD Holdings One, LLC
Arm PIPD Holdings Two, LLC
Brightstar Global Group Inc.
Brightstar Corp.
SoftBank Group Japan Corporation
SoftBank Group Capital Limited
SB Group US, Inc.
Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.
SLA ADVISERS CORP.
SB Energy Corp.
PayPay Corporation
Boston Dynamics, Inc.
SoftBank Robotics Group Corp.
Skywalk Finance GK
SoftBank Ventures Asia Corp.
SoftBank Korea Corp.
SB Pan Pacific Corporation
STARFISH I PTE. LTD.
Starburst I, Inc.
West Raptor Holdings, LLC
Hayate Corporation
Sprint Corporation
Sprint Communications, Inc.
SoftBank Group Corp. ANNUAL REPORT 2020

Reportable segments

Location

As of March 31, 2019

As of March 31, 2020

SoftBank Vision Fund and Other SBIA-Managed Funds
SoftBank Vision Fund and Other SBIA-Managed Funds
SoftBank Vision Fund and Other SBIA-Managed Funds
SoftBank Vision Fund and Other SBIA-Managed Funds
SoftBank Vision Fund and Other SBIA-Managed Funds
SoftBank Vision Fund and Other SBIA-Managed Funds
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
SoftBank
Arm
Arm
Arm
Brightstar
Brightstar
Company-wide
Company-wide
Company-wide
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Sprint (discontinued operations)
Sprint (discontinued operations)

U.K.
Bailiwick of Jersey
U.S.
U.S.
U.S.
U.S.
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Tokyo
Chiba
Tokyo
Tokyo
Tokyo
U.K.
U.S.
U.S.
U.S.
U.S.
Tokyo
U.K.
U.S.
U.S.
Fukuoka
U.S.
Tokyo
Tokyo
U.S.
Tokyo
Tokyo
South Korea
South Korea
Micronesia
Singapore
U.S.
U.S.
Micronesia
U.S.
U.S.

100
–
–
–
–
–
66.5
100
32.2
54.1
53.6
52.1
48.2
–
52.0
–
46.6
45.1
43.6
100
100
100
89.5
100
100
100
100
100
100
–
100
100
100
69.7
100
100
100
100
100
100
100
100
84.4
100

100
–
–
–
–
–
67.1
100
32.2
53.3
52.8
42.4
45.5
100
52.0
50.1
46.6
45.1
43.5
100
100
100
89.9
100
100
100
100
100
100
100
100
100
100
74.5
100
100
100
100
100
100
100
100
83.7
100

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153

Notes:
1. Limited partnerships are deemed as structured entities and the voting rights are not described. The details are described in “(1)Consolidated structured entities” under “Note 22. Structured entities.”
2. 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.
3. The Company does not own the majority of Vector Inc.’s voting rights. However, the Company determined that it has substantial
control over Vector Inc. and included it in the scope of consolidation, considering the fact that the Company holds 42.4% of the voting
rights of Vector Inc., the dispersion of voting rights in Vector Inc. and the voting patterns exercised in Vector Inc.’s past shareholders
meetings.
4. The Company does not own the majority of Z Holdings Corporation’s voting rights. However, the Company determined that it has
substantial control over Z Holdings Corporation and included it in the scope of consolidation, considering the fact that the Company
holds 45.5% of the voting rights of Z Holdings Corporation and directors from the Company constitute the majority of the members of
Z Holdings Corporation’s Board of Directors.
5. 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 theCompany holds 46.6% of the voting rights of The Japan Net Bank, Limited and directors from the Company constitute the majority ofthe members of The Japan Net Bank, Limited’s Board of Directors.
6. 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
45.1% of the voting rights of ASKUL Corporation, the dispersion of voting rights in ASKUL Corporation and the voting patterns
exercised in ASKUL Corporation’s past shareholders meetings.
7. The Company does not own the majority of eBOOK Initiative Japan Co., Ltd.’s voting rights. However, the Company determined that it
has substantial control over eBOOK Initiative Japan Co., Ltd. and included it in the scope of consolidation, considering the fact that theCompany holds 43.5% of the voting rights of eBOOK Initiative Japan Co., Ltd., and directors from the Company constitute the majorityof the members of eBOOK Initiative Japan Co., Ltd.’s Board of Directors.

(2) Summarized consolidated financial information and other information on subsidiaries withsignificant non-controlling interests
a. SoftBank Corp. (SoftBank Corp. and its group companies)
As a result of the consolidation of Yahoo Japan Corporation (subsequently renamed as Z
Holdings Corporation) by SoftBank Corp. in June 2019, the amounts arising from Yahoo Japan
Corporation and its group companies are included in (a) General information and (b)Summarized consolidated financial information as of March 31, 2020 and for the fiscal year
ended March 31, 2020.
(a) General information

Ownership ratio of the non-controlling interests (%)����������

Accumulated amount attributable
to the non-controlling interests ofsubsidiary group�������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

As ofMarch 31, 2019

As ofMarch 31, 2020

33.5

32.9

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥375,168¥1,041,328$9,568,391

Table of Contents

Message from Our CEO

Net income allocated to the noncontrolling interests of subsidiarygroup�����������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥13,925¥208,836$1,918,919(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥1,756,322
4,742,159
2,046,275
2,464,315
1,987,891¥3,364,303
7,148,056
4,496,609
3,588,085
2,427,665$30,913,379
65,680,934
41,317,734
32,969,632
22,306,947(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥3,746,305
425,572
365,266¥4,861,247
506,668
497,048$44,668,262
4,655,591
4,567,197(b) Summarized consolidated financial information

Current assets������������������������������������
Non-current assets ����������������������������
Current liabilities��������������������������������
Non-current liabilities ������������������������
Net assets������������������������������������������

Net sales��������������������������������������������
Net income����������������������������������������
Comprehensive income����������������������

Dividends paid to the non-controlling interests by SoftBank Corp. for the fiscal year ended
March 31, 2020 are ¥127,184 million ($1,168,648 thousand) (for the fiscal year ended March
31, 2019: no dividends).

Net cash provided by operating
activities������������������������������������������
Net cash used ininvesting activities����������������������������
Net cash provided by (used in)financing activities����������������������������
Effect of exchange rate changes oncash and cash equivalents����������������
Increase in cash and cash equivalents

Who We Are

Our Path to Continued Growth(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥826,582¥1,249,535$11,481,531(614,738)(900,145)(8,271,111)

25,084(143,613)(1,319,609)–¥236,928(357)¥ 205,420(3,280)$ 1,887,531

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

154

b. Yahoo Japan Corporation (subsequently renamed as Z Holdings Corporation) (Yahoo Japan
Corporation and its group companies)
As a result of the consolidation of Yahoo Japan Corporation (subsequently renamed as Z
Holdings Corporation) by SoftBank Corp. in June 2019, the amounts arising from Yahoo Japan
Corporation and its group companies are included in (a) General information and (b)Summarized consolidated financial information under “a. SoftBank Corp. (SoftBank Corp. andits group companies)” as of March 31, 2020 and for the fiscal year ended March 31, 2020.
(a) General information

Ownership ratio of the non-controlling interests (%)����������As ofMarch 31, 2019

Accumulated amount attributable
to the non-controlling interests ofsubsidiary group�������������������������������

Net income allocated to the noncontrolling interests of subsidiarygroup�����������������������������������������������As ofMarch 31, 2019

As ofMarch 31, 2020

51.8

–

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020¥–$–

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥46,964¥–$–¥564,222(b) Summarized consolidated financial information

Current assets������������������������������������
Non-current assets ����������������������������
Current liabilities��������������������������������
Non-current liabilities ������������������������
Net assets������������������������������������������

Net sales��������������������������������������������
Net income����������������������������������������
Comprehensive income����������������������

(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥954,714
77,82883,554

¥–
–
–

$–
–
–

Dividends paid to the non-controlling interests by Yahoo Japan Corporation (subsequently
renamed as Z Holdings Corporation) for the fiscal year ended March 31, 2019 are ¥28,795
million.

Net cash provided by operating
activities������������������������������������������
Net cash used in investing activities����
Net cash used in financing activities ��
Effect of exchange rate changes oncash and cash equivalents����������������
Decrease in cash and cash equivalents �(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥151,369(213,605)(263,303)

¥–
–
–

$–
–
–

515
¥(325,024)

–
¥–

–
$–

As of
March 31, 2019

As ofMarch 31, 2020

15.6

16.3

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥430,518¥424,746$3,902,839(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥525¥(7,006)$(64,376)

c. Sprint (Sprint Corporation and its group companies)(a) General information

Ownership ratio of the non-controlling interests (%)����������
(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥1,224,363
1,221,286
1,277,527
241,551926,571

¥–
–
–
–
–

$–
–
–
–
–

Accumulated amount attributable
to the non-controlling interests ofsubsidiary group�������������������������������

Net income (loss) allocated to
the non-controlling interests ofsubsidiary group�������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

(Millions of yen)

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

155

(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 “Note 6. Discontinued operations.” In
addition, the details of the comparative information for Sprint’s business results and cash flows
for the fiscal year ended March 31, 2019 are described in “Note 6. Discontinued operations.”
No dividends were paid to non-controlling interests by Sprint for the fiscal year ended March
31, 2019 and the fiscal year ended March 31, 2020.

Current assets������������������������������������
Non-current assets ����������������������������
Current liabilities��������������������������������
Non-current liabilities ������������������������
Net assets������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥1,430,756
7,999,031
1,382,646
5,174,812
2,872,329

¥–
–
–
–
–

$–
–
–
–
–

21. 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.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Current assets������������������������������������
Non-current assets ����������������������������
Current liabilities��������������������������������
Non-current liabilities ������������������������
EquityTotal equity attributable to ownersof the parent��������������������������������
Non-controlling interests����������������

Net sales��������������������������������������������
Net income����������������������������������������
Other comprehensive income,net of tax ����������������������������������������
Total comprehensive income��������������

Net income attributable to owners of
the parent����������������������������������������
Other comprehensive income
attributable to owners of
the parent, net of tax ����������������������
Total comprehensive income
attributable to owners of
the parent����������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥ 4,415,376
10,590,078
3,470,290
2,523,846¥ 7,032,939
12,600,850
4,016,839
3,057,346$ 64,623,165
115,784,710
36,909,300
28,092,860

7,855,322
1,155,996

11,505,557
1,054,047

105,720,454
9,685,261(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥5,735,529
1,036,961¥7,636,828
2,412,694$70,172,085
22,169,383

52,670¥1,089,631(7,568)¥2,405,126(69,539)$22,099,844(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥1,161,072¥2,546,831$23,401,920

43,394(11,664)(107,176)¥1,204,466¥2,535,167$23,294,744

There were no dividends received from Alibaba for the fiscal year ended March 31, 2019 andthe fiscal year ended March 31, 2020.

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

156

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:

Total equity attributable to owners of
the parent����������������������������������������
Interest ratio (%)��������������������������������
Interests of the Company������������������
Goodwill��������������������������������������������
Accumulated amortization of
goodwill on the IFRSs transition
date1������������������������������������������������
Warrants��������������������������������������������
Other2������������������������������������������������
Carrying amount of the interests in
Alibaba��������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥7,855,322
26.26
2,062,807¥11,505,557
25.28
2,908,605$105,720,454
25.28
26,726,133

161,277

145,258

1,334,724(6,095)(125,695)(29,801)(5,454)(146,357)(41,132)(50,115)(1,344,822)(377,948)¥2,062,493¥ 2,860,920$ 26,287,972

Notes:
1. Goodwill 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. Other relates to adjustments mainly related to organization restructurings such as the transfer of Taobao shares in 2005 andthe 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 ¥14,103,354 million($129,590,683 thousand) as of March 31, 2020 (as of March 31, 2019: ¥13,643,692 million).
b. The We Company
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.
Since the Company will not hold a majority of voting rights at any general shareholders
meeting or Board of Directors meeting and cannot control WeWork due to provisions of
WeWork’s certificate of incorporation and shareholders agreement, WeWork is not a subsidiaryof the Company. There is no other party acting as the Company’s de facto agent.
Details and progress of the agreement between the Company and WeWork dated October22, 2019 are described in “(3) Details and progress of the agreement between the Company
and WeWork.”
SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO(a) General information
WeWork (registered in the U.S.) operates the co-working space business “WeWork” all over theworld mainly in North America, Europe, and China.
(b) Ownership percentage of voting rights
The Company owns 20.12% of shares (voting right basis before dilution) issued by WeWork.
Ownership percentage of voting rights held by the Company is restricted as 49.9% due toprovisions of WeWork’s certificate of incorporation and shareholders agreement even though
the Company owns the majority of shares issued by WeWork on a voting rights basis.
(c) Measurement
The Company’s wholly owned subsidiary other than SoftBank Vision Fund (herein “Investments
in WeWork,” the wholly 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 SoftBank Vision Fund have invested in WeWork. Shares held by SoftBank Vision
Fund are measured by fair value and accounted for as financial instruments at FVTPL. Preferredshares held by the WeWork Investment Subsidiary are measured at fair value and accounted for
as financial instruments at FVTPL and ordinary shares are accounted for under equity method. In
addition, the Company’s holding of common shares measured at equity method is 2.75%.
(d) Summarized consolidated financial information
IFRSs summarized consolidated financial information for WeWork is as follows.

Current assets��������������������������������������������������������������������
Non-current assets ������������������������������������������������������������
Current liabilities����������������������������������������������������������������
Non-current liabilities ��������������������������������������������������������
EquityTotal equity attributable to owners of the parent������������
Non-controlling interests������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020

¥ 238,250
3,183,818
531,300
2,684,816$ 2,189,194
29,254,966
4,881,926
24,669,815

107,414
98,538986,989
905,430

Consideration transferred is allocated to acquired assets and assumed liabilities based on the fairvalue on the acquisition date. The above amounts were measured at fair value based on the best
estimation at the present moment and an adjustment may be made during the measurement
period when new information about fact and circumstances that existed as of the acquisition
date. The measurement period shall not exceed one year from the acquisition date.

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

157

Net sales����������������������������������������������������������������������������
Net loss������������������������������������������������������������������������������
Other comprehensive income, net of tax����������������������������
Total comprehensive income����������������������������������������������

Net loss attributable to owners of the parent ��������������������
Other comprehensive income attributable to owners of theparent, net of tax ������������������������������������������������������������
Total comprehensive income attributable to owners of theparent������������������������������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥ 186,311(214,201)6,234¥(207,967)$ 1,711,945(1,968,216)
57,282$(1,910,934)(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(161,229)$(1,481,476)

5,380

49,435¥(155,849)$(1,432,041)

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.
There was no dividend received from WeWork for the fiscal year ended March 31, 2020.
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 is as follows:(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020

Total equity attributable to owners of the parent����������������
Interest ratio (%)����������������������������������������������������������������
Interests of the Company ��������������������������������������������������

¥107,414
2.75
2,954

$986,989
2.75
27,143

Consolidation adjustments and other adjustments ������������
Carrying amount of the interests in WeWork ��������������������

¥(1,461)
1,493(13,424)$ 13,719

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents(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:

Carrying amount of the interests
Associates�������������������������������������������������
Joint ventures�������������������������������������������
Total���������������������������������������������������������

Net loss
Associates�������������������������������������������������
Joint ventures�������������������������������������������
Total���������������������������������������������������������
Other comprehensive income, net of tax
Associates�������������������������������������������������
Joint ventures�������������������������������������������
Total���������������������������������������������������������
Total comprehensive income
Associates�������������������������������������������������
Joint ventures�������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥575,436
3,116¥578,552¥366,495
11,453¥377,948$3,367,592
105,238$3,472,830(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(20,385)(1,505)¥(21,890)¥(15,709)(1,281)¥(16,990)$(144,344)(11,771)$(156,115)

2,640
(12)
¥ 2,628(1,209)65¥ (1,144)(11,109)598$ (10,511)(17,745)(1,517)¥(19,262)(16,918)(1,216)¥(18,134)(155,453)(11,173)$(166,626)(3) Details and progress of the agreement between the Company and WeWork
Details and progress of the agreement between the Company and WeWork dated October 22, 2019are as follows:

Message from Our CEO

a. Exercise price reduction of existing commitment and early payment
On October 30, 2019, the WeWork Investment Subsidiary paid the full amount of $1.5 billion
for the existing commitment that was originally expected to be invested in April 2020, bylowering the exercise price from $110.00 per share to $11.60 per share. Of this advancepayment for investment, a $200 million portion was converted into preferred stock of WeWorkin November 2019 while the remaining $1.3 billion portion was converted into preferred stockof WeWork in April 2020. The remaining $1.3 billion portion was recorded as “other financial
assets (non-current)” accounted for as financial instrument at FVTPL in the consolidated
statement of financial position as of March 31, 2020.
Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

158

b. Tender Offer
The WeWork Investment Subsidiary agreed to commence a tender offer (the “Tender Offer”)
worth up to $3 billion to purchase WeWork’s common stock and preferred stock from shareholders of WeWork other than the Company at a price of $19.19 per share. The Company
launched the Tender Offer in November 2019, but as several of the closing conditions were notsatisfied by the deadline of April 1, 2020, the Company withdrew and terminated the Tender
Offer at that time.
c. Credit support and notes purchase
The Company agreed 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 topurchase or arrange (b) up to $1.1 billion in senior secured notes and (c) up to $2.2 billion in
unsecured notes to be issued by WeWork. Regarding (a), in December 2019, the Company
entered into an agreement with financial institutions that designates the Company as aco-obligor with WeWork, while the two parties separately agreed that the Company has theright of indemnification against WeWork whenever the Company services obligations. Regarding(c), the WeWork Investment Subsidiary entered into an agreement with WeWork in December
2019. WeWork has not issued any of the unsecured notes as of March 31, 2020. Regarding (b),the Company’s obligation ceased to exist upon the termination of the Tender Offer as it was
subject to the completion of the Tender Offer.
With the Company’s entry into the agreements regarding (a) and (c), as consideration, theCompany has received warrants that are convertible into WeWork preferred stock at an exercise
price of $0.01 per share. The warrants have become exercisable after receiving the necessary
regulatory approvals in April 2020. The fair value of ¥94,195 million ($865,524 thousand) was
recognized as “Derivative assets” when the Company entered into the agreement. The
Company recorded ¥76,259 million ($700,717 thousand) as “Derivative loss” in the consolidated statement of financial income, which is a change of the fair value of these warrants
between the time of the agreement and the fiscal year end (as of March 31, 2020).
The (a) credit support for a $1.75 billion letter of credit facility provided by financial
institutions to WeWork above corresponds to a financial guarantee contract and the (c) purchaseof up to $2.2 billion in unsecured notes to be issued by WeWork corresponds to a commitment
to provide a loan at a below-market interest rate (the “loan commitment”). Upon the executionof the contract, the Company recorded allowance for loss on valuation for expected credit lossesof ¥39,107 ($359,340 thousand) for the financial guarantee contract and ¥55,088 million($506,184 thousand) for the loan commitment under “Other financial liabilities (current)” in the
consolidated statement of financial position. The financial liabilities are measured to be thehigher of the amount at the initial recognition less accumulated amortization or expected credit
losses. On March 31, 2020, the expected credit losses for the financial guarantee contract andloan commitment exceeded the initially recognized amount less accumulated amortization, and

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

the Company therefore recognized provisions for loss allowance on valuation of ¥52,349 million($481,016 thousand) and ¥90,210 million ($828,907 thousand) under “Other non-operatingloss” in the consolidated statement of income. As of March 31, 2020, the Company recorded
allowance for loss on valuation of ¥89,202 million ($819,645 thousand) for the financial
guarantee contract and ¥145,133 million ($1,333,575 thousand) for the loan commitment
under “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
Subject to satisfactory negotiations of definitive documentation and satisfaction of certain
closing conditions, it was agreed that all of SoftBank Vision Fund’s interests in WeWork China
and WeWork Asia were to be exchanged for preferred stock of WeWork at $11.60 per share. Of
this, the exchange of WeWork Asia shares for WeWork’s preferred stock was completed in April
2020.

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159

22. 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.
Please refer to “a. Consolidation of SoftBank Vision Fund and Delta Fund by the Company” in “(21)Significant accounting policies for the SoftBank Vision Fund and Other SBIA-Managed Funds segment”
under “Note 3. Significant accounting policies” for evaluation of control over the following entities thatcomprise the SoftBank Vision Fund and Delta Fund business.
Company Name

Location

SoftBank Vision Fund L.P.		
SoftBank Vision Fund (AIV M1) L.P.
SoftBank Vision Fund (AIV M2) L.P.
SoftBank Vision Fund (AIV M3) L.P.
SoftBank Vision Fund (AIV S1) L.P.
SB Delta Fund (Jersey) L.P.		

Bailiwick of Jersey
U.S.
U.S.
U.S.
U.S.
Bailiwick of Jersey

Total assets of the unconsolidated structured
entities (aggregate amount) �����������������������
The maximum loss exposure of the Company
The carrying amount of the investment
recognized by the Company �������������������
Commitment contracts related toadditional investment �����������������������������
Total �������������������������������������������������������

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.
(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.

SoftBank Group Corp. ANNUAL REPORT 2020

The scale of the structured entities which are not consolidated, the carrying amount of theinvestment in the entities by the Company, and the potential maximum loss exposure of the Company
are as follows:

Table of Contents(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥1,566,213¥1,615,039$14,840,017

161,643

170,916

1,570,486

82,291¥  243,934

111,763¥  282,679

1,026,950$2,597,436

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
not indicate 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.

23. Income taxes(1) Tax expenses
The components of income tax expenses are as follows:

Fiscal year ended
March 31, 2019

Current tax expenses ���������������������������������
Deferred tax expenses���������������������������������
Total�������������������������������������������������������

¥(3,065)(233,958)¥(237,023)(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(299,020)(498,677)¥(797,697)$(2,747,588)(4,582,165)$(7,329,753)(Unit :%)
Fiscal year ended
March 31, 2019

Statutory effective tax rate1����������������������������������������������������������
Effect from profit or loss that does not impact taxable gain or loss ����
Effect from evaluating recoverability of deferred tax assets ������
Distribution from SoftBank Vison Fund and Delta Fund������������
Difference of tax rate adapted by subsidiaries ��������������������������

Current tax expenses include tax loss forward previously unrecognized, tax credit and the benefit
arising from certain temporary differences in the previous years. The reduction of current tax expense
for the fiscal year ended March 31, 2020 was ¥77,440 million ($711,569 thousand) (for the fiscal year
ended March 31, 2019: ¥494,161 million).
The reduction of current tax expense for the fiscal year ended March 31, 2019 is mainly due to thedisposal of a portion of SoftBank Corp. shares (ownership percentage 33.50%) held by SoftBank
Group Japan Corporation, a wholly-owned subsidiary of the Company, along with the listing of
SoftBank Corp. shares. The details are described in “Notes 2” under “(2) Reconciliation of thestatutory effective tax rate and actual tax rate.”
The amount of deferred tax expenses arising from write-off of deferred tax assets or reversal of thewrite-off of deferred tax assets recorded in the previous years is included. As a result, the increase ofdeferred tax expenses for the fiscal year ended March 31, 2020 was ¥905 million ($8,316 thousand)(for the fiscal year ended March 31, 2019: the reduction of ¥2,197 million).

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Taxation at foreign locations����������������������������������������������������
Temporary difference associated with investment in subsidiaries����
Income and loss on equity method investments������������������������
Aggregation of income earned by controlled foreign companies����
Other ��������������������������������������������������������������������������������������
Actual tax rate ����������������������������������������������������������������������������

31.5
(8.2)
(17.4) 2
6.1
(0.8)
0.6
(2.7)
2.0
2.7
0.3
14.1

Fiscal year ended
March 31, 2020

31.5
1,207.7
1,073.0(334.3)
123.5
84.0
67.0
33.1
1.8
(39.8)
2,247.5

Notes:
1. The Company is subject to income taxes, residence taxes and deductible enterprise taxes. The statutory effective tax rate for the fiscal
year ended March 31, 2020 based on these taxes is 31.5% (for the fiscal year ended March 31, 2019: 31.5%), except for foreignsubsidiaries that are subject to income taxes at their respective locations.
2. On December 19, 2018, SoftBank Corp. shares were listed on the Tokyo Stock Exchange First Section. Along with the listing, a portionof SoftBank Corp. shares (ownership percentage 33.50%) held by SoftBank Group Japan Corporation, a wholly-owned subsidiary of
the Company, was disposed and ¥2,349,832 million of proceeds was received. As a result, the ownership percentage in SoftBank Corp.
by the Company has changed from 99.99% to 66.49%. As SoftBank Corp. remains a subsidiary, ¥750,804 million, the equivalentamount of income taxes for gain on sales of SoftBank Corp. shares on a consolidation basis, is deducted from capital surplus as“Changes in interests in subsidiaries.”
In regard to the transaction, a loss carryforward whose deferred tax asset was not recognized, was used and income taxes decreased by¥345,228 million. Accordingly, a deductible temporary difference, associated with an investment in SoftBank Corp. whose deferred tax
asset was not recognized, was reversed and income taxes decreased by ¥60,349 million.

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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, 2019
(Millions of yen)

Deferred tax assets
Property, plant and equipment ����������������������������������������������������
Accrued expenses and other liabilities ������������������������������������������Net operating loss carryforwards and tax credit carryforwards1 ����
Temporary difference associated with investment in subsidiaries,
associates and joint ventures������������������������������������������������������
Unrealized gain����������������������������������������������������������������������������
Allowance for doubtful accounts��������������������������������������������������
Other ������������������������������������������������������������������������������������������
Total ����������������������������������������������������������������������������������������
Deferred tax liabilities
FCC licenses ��������������������������������������������������������������������������������
Customer relationships����������������������������������������������������������������
Trademarks����������������������������������������������������������������������������������
Technologies��������������������������������������������������������������������������������
Temporary difference associated with investment in subsidiaries,
associates and joint ventures2 ����������������������������������������������������
Contract assets and costs to obtain contracts ������������������������������
Investment securities��������������������������������������������������������������������
Other ������������������������������������������������������������������������������������������
Total ����������������������������������������������������������������������������������������
Net ������������������������������������������������������������������������������������

Recognized in othercomprehensive
incomeExchangedifferences

Effect of retrospective
adjustments due to adoption of new standards

Other

2
64
547

¥ 13,182
5,186
(421)

¥
–
(20,310)–¥ (4,404)
3,186
(692)

Business
combination

As ofMarch 31, 2019

As ofMarch 31, 2018

Recognizedin profit or loss¥

255,053
207,904
21,996¥(140,167)(18,508)
212,975

386,711
112,51131,74472,704
1,088,623(12,334)(11,130)(565)
16,16846,439

(14)
–
–
2,223
3,102

(4,096)––940(2,543)125–696(2,609)16,159(2,507)––
15,239(7,578)

3,917
–
(404)
4,641
6,244

371,802101,381
31,471
109,306
1,150,446(933,601)(74,765)(183,046)(89,890)(11,808)
24,381
1,421(14,795)

–
–
–
–

–
–
–
–

(41,613)(632)(7,712)
2,720

–
–
–
–

–
–
(948)
–

(987,022)(51,016)(190,285)(101,965)(35,052)–(81,028)(129,353)(1,526,735)¥ (438,112)(254,683)(27,589)
26,036(16,983)(274,020)¥(227,581)

(993)
–
2,724
(262)
1,469
¥4,571–––(3,046)(3,046)¥(5,589)(26)(1,568)(1,954)(3,289)(54,074)¥(37,915)–(91,774)–3,530(88,244)¥(95,822)(14,458)
–
727
4,754
(9,925)¥ (3,681)(305,212)(120,931)(53,495)(144,649)(1,954,575)¥ (804,129)

¥

–
893
–

¥

¥

123,666
178,415
234,405

Notes:
1. The Company recognizes deferred tax assets related to the entities that recorded a loss in either the fiscal year ended March 31, 2018 or 2019, in the amount of ¥27,769 million for the fiscal year ended March 31, 2019. Deferred tax assets are recognized to the extent that it isprobable that taxable income will be available against which deductible temporary differences, net operating loss carryforwards and tax credit carryforwards can be utilized.
2. The increases in deferred tax liabilities from “Temporary difference associated with investment in subsidiaries, associates and joint ventures” as of March 31, 2019 are mainly due to ¥119,306 million of the recognition of deferred tax liabilities on temporary differences on reserved
profit of SoftBank Vision Fund and Delta Fund and ¥125,579 million of the recognition of deferred tax liabilities on temporary differences on investment in Alibaba shares.

SoftBank Group Corp. ANNUAL REPORT 2020

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For the fiscal year ended March 31, 2020
(Millions of yen)

Deferred tax assets
Property, plant and equipment ������������������������������������
Accrued expenses and other liabilities ��������������������������Net operating loss carryforwards and tax credit
carryforwards2������������������������������������������������������������
Temporary difference associated with investment in
subsidiaries, associates and joint ventures3������������������
Unrealized gain ����������������������������������������������������������
Allowance for doubtful accounts ��������������������������������
Other ��������������������������������������������������������������������������
Total ������������������������������������������������������������������������
Deferred tax liabilities
FCC licenses ����������������������������������������������������������������
Customer relationships������������������������������������������������
Trademarks������������������������������������������������������������������
Technologies����������������������������������������������������������������
Temporary difference associated with investment in
subsidiaries, associates and joint ventures4������������������
Contract assets and costs to obtain contracts ��������������
Investment securities����������������������������������������������������
Other ��������������������������������������������������������������������������
Total ������������������������������������������������������������������������
Net ��������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Recognized inothercomprehensive
incomeBusiness
combination1

Exchangedifferences

944
1,887

¥ (1,640)(1,534)–41(4,317)(345,672)(11,004)
3,566(36,834)(223,658)

7
–
–
(112)
5,877

–
–
–
6,181
9,053

(987,022)(51,016)(190,285)(101,965)(9,322)
15,18812,372(1,193)––––(305,212)(120,931)(53,495)(144,649)(1,954,575)¥ (804,129)(144,064)(14,392)
16,529(36,757)(161,639)¥(385,297)

¥

As of
March 31, 2019

Recognizedin profit or loss

123,666
178,415¥ (76,619)
25,512

234,405

217,393371,802101,381
31,471
109,306
1,150,446

Table of Contents

¥

–
5,982

¥

Effect of retrospective adjustments due
to adoption of new
standards

108(30,125)

¥

Other

As of
March 31, 2020–
(79,283)¥ (9,760)(6,445)–(420,837)

4,148

30,833

(156)
–
(296)
(942)
(8,885)–––29,769(248)––(14,652)(36,162)(550,934)(4,017)–90
27,044
11,06021,96490,377
20,17998,250392,711–(96,785)(53,473)–

19,219
2,053
3,506
8,321

–
–
–
–

977,206
4,416
162,299
–

(81)
(86)
–
–

–
(126,230)(65,581)(94,837)

53,294–
4,805(7,770)50,329¥56,206

–
–
(25)
(526)
(150,809)¥(141,756)

1,278
863
563
1,972
37,775¥28,890–––(2,599)(2,599)¥ (2,847)–
50,395–
103,452
1,297,768¥ 746,834

13,267–(480)(11,426)
1,194¥ 12,254(381,437)(84,065)(32,103)(98,303)(882,556)¥(489,845)

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Transfer toliabilities relating toassets classified asheld for sale

Management: The Foundation Supporting Our Growth¥

36,69994,409163

(Thousands of U.S. dollars)

Deferred tax assets
Property, plant and equipment ������������������������������������
Accrued expenses and other liabilities��������������������������Net operating loss carryforwards and tax credit
carryforwards2������������������������������������������������������������
Temporary difference associated with investment in
subsidiaries, associates and joint ventures3������������������
Unrealized gain������������������������������������������������������������
Allowance for doubtful accounts����������������������������������
Other ��������������������������������������������������������������������������
Total ������������������������������������������������������������������������
Deferred tax liabilities
FCC licenses ����������������������������������������������������������������
Customer relationships������������������������������������������������
Trademarks������������������������������������������������������������������
Technologies����������������������������������������������������������������
Temporary difference associated with investment in
subsidiaries, associates and joint ventures4������������������
Contract assets and costs to obtain contracts ��������������
Investment securities����������������������������������������������������
Other ��������������������������������������������������������������������������
Total ������������������������������������������������������������������������
Net ��������������������������������������������������������������������

Recognized inothercomprehensive
incomeBusiness
combination1

Exchangedifferences

8,674
17,339$(15,069)(14,095)–

377(39,667)(3,176,257)(101,112)
32,767(338,454)(2,055,113)

64––(1,029)54,001–––
56,795
83,185(9,069,393)(468,768)(1,748,461)(936,920)(85,657)
139,557
113,682(10,962)––––(2,804,484)(1,111,192)(491,546)(1,329,128)(17,959,892)$ (7,388,855)(1,323,753)(132,243)
151,879(337,746)(1,485,243)$(3,540,356)

489,700–
44,151(71,395)
462,456$516,457

As of
March 31, 2019

Recognizedin profit or loss

$ 1,136,323
1,639,392$ (704,025)
234,421

2,153,863

1,997,547

3,416,356
931,554289,176
1,004,373
10,571,037$–
54,966$

Effect of retrospective adjustments
due to adoption of
new standards$

992(276,808)

Transfer toliabilities relating toassets classified asheld for sale

$

Other

As of
March 31, 2020–
(728,503)$ (89,681)(59,221)$337,214
867,491–(3,866,921)

38,114283,313(1,433)–(2,720)(8,656)(81,640)–––
273,537(2,279)––(134,632)(332,280)(5,062,336)(36,911)–827
248,498
101,626

201,819
830,442
185,418
902,784
3,608,481–(889,323)(491,344)–

176,597
18,86432,21576,459––––8,979,197
40,578
1,491,308
–

(744)
(790)
–
–

–
(1,159,882)(602,600)(871,423)

–
–
(230)
(4,833)(1,385,730)$(1,302,545)

11,743
7,930
5,173
18,120347,101$265,461–––(23,881)(23,881)$ (26,160)–
463,062–
950,582
11,924,727$ 6,862,391

121,906–(4,411)(104,991)
10,970$ 112,596(3,504,888)(772,443)(294,984)(903,272)(8,109,492)$(4,501,011)

Notes:
1. The increase from “Business combination” is mainly due to the consolidation of ZOZO, Inc. The details are described in “Note 9. 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 ($195,966 thousand) for the fiscal year ended March 31, 2020. 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 decreases 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 ¥361,752 million ($3,324,010 thousand) of reversal of deferred tax assets which were recorded forthe previous fiscal year related to the settlement of the variable prepaid forward contract using Alibaba shares. The details are described in “Note 46. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”
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 ($2,300,873 thousand) in relation to the recognition of deferred tax
liabilities on temporary differences on investment in Alibaba shares. The decrease of ¥119,306 million ($1,096,260 thousand) in relation to the reversal of deferred tax liabilities recognized in the previous fiscal year due to the decrease in reserved profit of SoftBank Vision Fund andDelta Fund.

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Deferred tax assets and liabilities in the consolidated statement of financial position are as follows:

Deferred tax assets���������������������������������������
Deferred tax liabilities�����������������������������������
Net�����������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥ 586,943(1,391,072)¥ (804,129)¥ 221,371(711,216)¥(489,845)$ 2,034,099(6,535,110)$(4,501,011)

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.

Deductible temporary differences�����������������Net operating loss carryforwards �����������������
Tax credit carryforwards �������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥ 216,639
1,323,524
31,513¥1,571,676¥ 472,965
1,053,189
15,890¥1,542,044$ 4,345,905
9,677,379
146,008$14,169,292(Thousands of
U.S. dollars)

Net operating loss carryforwards (tax basis)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

1st year���������������������������������������������������������

¥

¥

$

2nd year�������������������������������������������������������

(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.
As of March 31, 2020, deductible temporary differences, net operating loss carryforwards, and tax
credit carryforwards of Sprint are not included as Sprint is reclassified as a disposal group classified asheld for sale.

(Millions of yen)

3rd year �������������������������������������������������������
4th year �������������������������������������������������������
5th year and thereafter and no expiry date���Total���������������������������������������������������������

20,616
14,861
11,8798,955
1,267,213¥1,323,524

As ofMarch 31, 2019

Tax credit carryforwards (tax basis)

1st year���������������������������������������������������������
2nd year�������������������������������������������������������
3rd year �������������������������������������������������������
4th year �������������������������������������������������������
5th year and thereafter and no expiry date���Total���������������������������������������������������������

5,694
3,193
2,942
6,480
1,034,880¥1,053,189

52,32029,33927,03359,5429,509,145$9,677,379(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020

¥ 2,419
2,571
1,591
830
24,102¥31,513

¥

–
–
–
1,045
14,845¥15,890

$

–
–
–
9,602
136,406$146,008

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, 2020 are ¥2,353,908 million ($21,629,220 thousand) (asof March 31, 2019: ¥1,128,590 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, 2020 are¥1,282,990 million ($11,788,937 thousand) (as of March 31, 2019: ¥1,841,053 million).

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

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165

24. Interest-bearing debt
(1) Components of interest-bearing debt
The components of interest-bearing debt are as follows:
As of March 31, 2020, interest-bearing debt of Sprint are reclassified as a disposal group classified as held for sale. The details are described in “Note 6. Discontinued operations.”(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2020

Average interest rate (%)1¥

499,179
42,000820,899
1,042,253
11,511
730,601
334,517¥ 3,480,960¥1,529,458
206,000
1,949,571
159,938
186––¥3,845,153$14,053,643
1,892,860
17,913,912
1,469,613
1,710––$35,331,738

1.25
0.06
1.80
1.38
1.76
–
–

–
–
–
–
–
–
–

5,102,091
6,538,785
5,315–
557,955¥12,204,146

3,821,473
5,268,883
272
196,101–¥9,286,729

35,114,151
48,413,884
2,499
1,801,902–$85,332,436

1.73
2.60
1.76
1.65
–

Apr. 2021–Nov. 2044
Dec. 2021–Sep. 2043
Apr. 2021–Jul. 2027
Oct. 2021–Nov. 2021–

As of March 31, 2019

Maturity2

Current
Short-term borrowings3,4�����������������������������������������������������������������������������������������
Commercial paper���������������������������������������������������������������������������������������������������
Current portion of long-term borrowings3,5,6�����������������������������������������������������������
Current portion of corporate bonds10 ���������������������������������������������������������������������
Current portion of installment payables�������������������������������������������������������������������
Current portion of financial liabilities relating to the sale of shares by variable prepaid forward contract7 �������
Current portion of lease obligations8�����������������������������������������������������������������������
Total �������������������������������������������������������������������������������������������������������������������
Non-current
Long-term borrowings3,5,6 ���������������������������������������������������������������������������������������
Corporate bonds10���������������������������������������������������������������������������������������������������
Installment payables �����������������������������������������������������������������������������������������������
Financial liabilities relating to the sale of shares by variable prepaid forward contract9�������
Lease obligations8���������������������������������������������������������������������������������������������������
Total �������������������������������������������������������������������������������������������������������������������

Notes:
1. Average interest rate represents the weighted-average interest rate to the balance as of March 31, 2020.
2. Maturity represents the maturity of the outstanding balance as of March 31, 2020.
3. The short-term borrowings, current portion of long-term borrowings, and long-term borrowings as of March 31, 2020 include ¥408,465 million ($3,753,239 thousand) (as of March 31, 2019: ¥36,571 million), ¥10,883 million ($100,000 thousand), and ¥162,195 million($1,490,352 thousand) of borrowings in SoftBank Vision Fund, respectively.
4. The increases in short-term borrowings for the fiscal year ended March 31, 2020 are mainly due to increases of ¥463,598 million ($4,259,836 thousand), ¥371,894 million ($3,417,201 thousand), and ¥128,372 million ($1,179,564 thousand) in Z Holdings Corporation, SoftBank
Vision Fund, and SoftBank Corp., respectively.
5. In the SoftBank segment, the Company is a party to lease transactions of software mainly in relation to telecommunications equipment. The Company has not applied IFRS 16 to leases of intangible assets. Accordingly, liabilities associated with the aforementioned transactions thatwere previously recognized as lease obligations are, after applying IFRS 16, accounted for as financial liabilities under IFRS 9 and are included in the current portion of long-term borrowings and long-term borrowings. Consequently, the related amounts as of March 31, 2019 havebeen restated accordingly. The current portion of long-term borrowings and long-term borrowings as of March 31, 2020 include ¥89,759 million ($824,763 thousand) (as of March 31, 2019: ¥102,879 million) and ¥143,700 million ($1,320,408 thousand) (as of March 31, 2019:¥191,297 million) of borrowings from these transactions, respectively.
6. The Company raises funds through sale and leaseback transactions for certain telecommunications equipment used in the SoftBank segment. Sale and leaseback transactions executed after the adoption of IFRS 16 are not accounted for as sales since they do not meet the conditions
for revenue recognition under IFRS 15. Accordingly, funds raised through such transactions are accounted for as long-term borrowings. Borrowings associated with such transactions included in the current portion of long-term borrowings and long-term borrowings as of March 31,
2020 are ¥81,383 million ($747,799 thousand) and ¥220,947 million ($2,030,203 thousand), respectively. Of these transactions, transactions executed prior to the date of adoption of IFRS 16 are, in accordance with the transitional provisions of IFRS 16, continue to be accounted for
as leases after the adoption of IFRS 16.
7. Decrease was due to the settlement of the variable prepaid forward contract using Alibaba shares. The details are described in “Note 46. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”
8. As a result of the adoption of IFRS 16, liabilities that were previously recorded as “Lease obligations” are reclassified to “Lease liabilities” and are presented separately in the consolidated statement of financial position.
9. In November, 2019, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of the Company, entered into a variable prepaid forward contract using Alibaba shares with a financial institution and procured $1.65 billion (¥179,145 million). At the settlement dates, which
are expected to be October and November, 2021, the number of Alibaba shares settled by the variable prepaid forward contract 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 ofshares settled, and the variable prepaid forward contract is classified as a hybrid financial instrument with embedded derivatives. Embedded derivatives are measured at fair value and ¥5,009 million ($46,026 thousand) is recognized as “Derivative financial assets (non-current)” in the
consolidated statement of financial position as of March 31, 2020.
WRH LLC has the option (“cash settlement option”) to settle the variable prepaid forward contract by either delivering cash or a combination of cash and Alibaba shares. If WRH LLC elects the cash settlement option, the cash equivalent to the fair value of the number of shares forthe settlement, which is determined by the market price of the shares, will be paid.
Alibaba shares held by WRH LLC are pledged as collateral for financial institutions. The Company granted the right of use to financial institutions, however can release the collateral by cash settlement at its own discretion. The Company applies the equity method to these shares andthey are included in “Investments accounted for using the equity method” in the consolidated statement of financial position as of March 31, 2020. The carrying amount of Alibaba shares pledged as collateral by the Company is ¥54,453 million ($500,349 thousand) as of March 31,
2020.

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

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16610. A summary of the issuance conditions of the bonds is as follows:
Company name / Name of bondDate of issuance

Balance of issue
amount11

As of March 31, 2019
(Millions of yen)12

As of March 31, 2020
(Thousands of U.S. dollars)12

Interest rate (%)

Date of maturity

459,258(459,258)–

1.69

Nov. 27, 2020

1.45

May 30, 2019

–

–

1.26

Sep. 12, 2019

918,469(918,469)
3,383,369
183,396
274,8143,649,380
458,274
3,734,513
366,416
4,546,393
3,633,245
915,180738,638
297,648
1,197,831
681,172445,796
1,815,363
495,020
312,956
1,089,966
1,197,978750,372
424,763
228,907
1,276,606
749,8123,658,679
4,114,132

1.36

Jun. 18, 2020

367,541
19,94629,892396,438
49,841
405,569
39,848–––81,78332,949132,694
75,47549,385201,22154,87435,395
123,269
135,615
84,94348,07325,917
144,577
84,925397,078446,508

99,957(99,957)
368,212
19,95929,908397,162
49,874406,427
39,877494,784
395,406
99,59980,38632,393130,360
74,13248,516
197,566
53,87334,059118,621130,376
81,66346,227
24,912
138,933
81,602
398,174
447,741

2.13
1.94
2.48
2.03
2.03
1.57
1.57
1.64
1.38
1.38
5.38
5.50
4.75
6.00
6.13
5.13
6.25

Dec. 9, 2022
Apr. 20, 2023
Apr. 20, 2026
Mar. 15, 2024
Mar. 8, 2024
Jun. 14, 2024
Jun. 12, 2024
Apr. 25, 2025
Sep.17, 2026
Sep.11, 2026
Jul. 30, 2022
Apr. 20, 2023
Sep. 19, 2024
Jul. 30, 2025
Apr. 20, 2025
Sep. 19, 2027
Apr. 15, 2028

4.00
4.00
3.13
4.75
4.50
5.25
5.00
4.00
2.50
2.50

Jul. 30, 2022
Apr. 20, 2023
Sep. 19, 2025
Jul. 30, 2025
Apr. 20, 2025
Jul. 30, 2027
Apr. 15, 2028
Sep. 19, 2029
Dec. 17, 2021
Feb. 9, 2022

¥ 55,600 million

55,12255,144

506,699

3.00

Sep. 13, 2041

¥ 15,400 million

15,262

15,268140,292

3.50

Sep. 16, 2043

¥400,000 million

393,094

393,4023,614,830

3.00

Sep. 30, 2041

SoftBank Group Corp.
44th Unsecured Straight Bond����������������������� Nov. 29, 2013

¥ 50,000 million

45th Unsecured Straight Bond����������������������� May 30, 2014–

46th Unsecured Straight Bond����������������������� Sep. 12, 2014–

47th Unsecured Straight Bond����������������������� Jun. 18, 2015

¥100,000 million

299,935(299,935)
399,573(399,573)
99,69748th Unsecured Straight Bond����������������������� Dec. 10, 2015
49th Unsecured Straight Bond����������������������� Apr. 20, 2016
50th Unsecured Straight Bond����������������������� Apr. 20, 2016
51st Unsecured Straight Bond����������������������� Mar. 16, 2017
52nd Unsecured Straight Bond��������������������� Mar. 8, 2017
53rd Unsecured Straight Bond����������������������� Jun. 20, 2018
54th Unsecured Straight Bond����������������������� Jun. 12, 2018
55th Unsecured Straight Bond����������������������� Apr. 26, 2019
56th Unsecured Straight Bond����������������������� Sep. 20, 201957th Unsecured Straight Bond����������������������� Sep. 12, 2019
USD-denominated Senior Notes due 202213,14 Jul. 28, 2015
USD-denominated Senior Notes due 2023����� Apr. 20, 2018
USD-denominated Senior Notes due 202414 � Sep. 19, 2017
USD-denominated Senior Notes due 202513,14 Jul. 28, 2015
USD-denominated Senior Notes due April 2025 Apr. 20, 2018
USD-denominated Senior Notes due 202714 � Sep. 19, 2017
USD-denominated Senior Notes due 202813 � Apr. 3, 2018
Euro-denominated Senior Notes due 202213 � Jul. 28, 2015
Euro-denominated Senior Notes due 2023 ��� Apr. 20, 2018
Euro-denominated Senior Notes due 202514 � Sep. 19, 2017
Euro-denominated Senior Notes due 202513 � Jul. 28, 2015
Euro-denominated Senior Notes due April 202514 Apr. 20, 2018
Euro-denominated Senior Notes due 202713 � Jul. 28, 2015
Euro-denominated Senior Notes due 202813 � Apr. 3, 2018
Euro-denominated Senior Notes due 202914 � Sep. 19, 2017
1st Unsecured Subordinated Corporate Bond Dec. 19, 2014
2nd Unsecured Subordinated Corporate Bond Feb. 9, 2015
1st Unsecured Subordinated Bonds with interest
deferrable clause and early redeemable option(with a subordination provision)15,16 ��������������� Sep. 16, 2016
2nd Unsecured Subordinated Bonds withinterest deferrable clause and early redeemableoption (with a subordination provision)15,17 ����� Sep. 16, 2016
3rd Unsecured Subordinated Bonds with interest
deferrable clause and early redeemable option(with a subordination provision)15,18 ����������������� Sep. 30, 2016

¥370,000 million¥ 20,000 million¥ 30,000 million¥400,000 million¥ 50,000 million¥410,000 million¥ 40,000 million¥500,000 million¥400,000 million¥100,000 million$
819 million$
300 million$ 1,350 million$
712 million$
450 million$ 2,000 million$
500 million€
287 million€ 1,000 million€ 1,500 million€
689 million€
450 million€
211 million€ 1,174 million€
750 million¥400,000 million¥450,000 million

SoftBank Group Corp. ANNUAL REPORT 2020

As of March 31, 2020
(Millions of yen)12

Table of Contents¥

Message from Our CEO

49,950Who We Are¥

49,981(49,981)–

Our Path to Continued Growth$Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

167

Company name / Name of bondDate of issuance

Balance of issue
amount11

Subtotal�����������������������������������������������������

As of March 31, 2019
(Millions of yen)12

As of March 31, 2020
(Millions of yen)12

As of March 31, 2020
(Thousands of U.S. dollars)12

4,776,389(699,508)

5,034,494(149,938)

46,260,167(1,377,727)

Interest rate (%)

Date of maturity

Z Holdings Corporation¥ 60,000 million¥ 50,000 million¥ 70,000 million–––

59,86949,85369,788550,115
458,081641,257

0.04

Jul. 29, 2022

11th Straight Bond (5 years) ������������������������� Jul. 31, 201912th Straight Bond (7 years) ������������������������� Jul. 31, 2019

0.18

Jul. 31, 2024

0.37

Jul. 31, 2026

13th Straight Bond (10 years) ����������������������� Jul. 31, 2019

¥ 50,000 million–

49,817457,751

0.46

Other (JPY-denominated Straight Bonds)������� Feb. 28, 2017–Dec. 6, 2018

¥125,000 million

130,000(5,000)125,000(10,000)

1,148,580(91,886)

0.04–0.50

Feb. 28, 2020–Dec 6, 2028

130,000(5,000)354,327(10,000)

3,255,784(91,886)–

40,000367,546

0.13–0.50

Mar. 17, 2023–Mar. 18, 2030–

40,000367,546

10th Straight Bond (3 years) ������������������������� Jul. 31, 2019

Subtotal�����������������������������������������������������
SoftBank Corp.
The first-the fourth Unsecured Straight Bonds ����� Mar. 18, 2020

¥ 40,000 million

Subtotal �������������������������������������������������������

Jul. 31, 2029

Sprint Corporation19
7.25% Senior notes due 2021����������������������� Sep. 11, 2013–

248,095

–

–

–

–

7.875% Senior notes due 2023��������������������� Sep. 11, 2013–

467,008

–

–

–

–

7.125% Senior notes due 2024��������������������� Dec. 12, 2013–

274,486

–

–

–

–

7.625% Senior notes due 2025��������������������� Feb. 24, 2015–

164,619

–

–

–

–

7.625% Senior notes due 2026��������������������� Feb. 22, 2018–

163,560

–

–

–

–

1,317,768––

33,265(33,265)

–

–

–

–

112,422(112,422)

–

–

–

–

Subtotal�����������������������������������������������������
Sprint Communications, Inc.19,20
Dec. 17, 2014
Export Development Canada Facility(Tranche 3) �������������������������������������������������

–7% Guaranteed notes due 2020������������������� Mar. 1, 2012
7% Senior notes due 2020��������������������������� Aug. 14, 2012–

167,809

–

–

–

–

11.5% Senior notes due 2021����������������������� Nov. 9, 2011–

124,865

–

–

–

–

6% Senior notes due 2022��������������������������� Nov. 14, 2012–

250,672

–

–

–

–

689,033(145,687)––

Subtotal�����������������������������������������������������
Sprint Capital Corporation19,20
6.9% Senior notes due 2019������������������������� May 6, 1999–

192,058(192,058)

–

–

–

–

6.875% Senior notes due 2028��������������������� Nov. 16, 1998–

249,158

–

–

–

–

8.75% Senior notes due 2032����������������������� Mar. 14, 2002–

226,632

–

–

–

–

Subtotal�����������������������������������������������������

667,848(192,058)––

Total ���������������������������������������������������������

¥7,581,038(1,042,253)¥5,428,821(159,938)$49,883,497(1,469,613)

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Financial Section

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168

Notes:11. Balance of issue amount is as of March 31, 2020.
12. Figures in parentheses as of March 31, 2019 and March 31, 2020 represent the current portion.
13. On March 7, 2018, SoftBank Group Corp. announced an exchange offer with respect to newly issued notes (the “Exchange Notes”)
or a consent solicitation for an amendment of terms and conditions, to the bondholders of foreign-currency-denominated senior notes
issued in 2015 (the “Existing Notes”). Issuance of the Exchange Notes to the bondholders who tendered for exchange the Existing
Notes to the Exchange Notes was completed on April 3, 2018, however, under requirements of IFRSs, the extinguishment of the
Existing Notes and the exchange to the Exchange Notes, was considered to be satisfied on March 22, 2018, the exchange decisiondate. As a result, SoftBank Group Corp. derecognized the Existing Notes and recognized the Exchange Notes.
14. On January 28, 2019, SoftBank Group Corp. conducted the purchase of a portion of the senior notes. The carrying amounts of thesenotes, equivalent to these face amounts, were reduced since the extinguishment of these notes as financial liabilities are considered tobe satisfied under requirements of IFRSs.
15. 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.
16. 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.
17. 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.
18. 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.
19. As of March 31, 2020, Sprint was reclassified as a disposal group classified as held for sale and therefore the balance of issue amount,interest rate, and date of maturity are not described.
20. Sprint Communications, Inc. and Sprint Capital Corporation are Sprint Corporation’s subsidiaries.

(2) Financial covenantsa. Financial covenants on interest-bearing debts of SoftBank Group Corp.
SoftBank Group Corp.’s interest-bearing debt includes financial covenants and the major financial
covenants are as follows:(a) The amount of SoftBank Group Corp.’s net assets at the end of the fiscal year must not fall
below 75% of SoftBank Group Corp.’s net assets at the end of the previous year.
(b) The consolidated statement of financial position of the Company at the end of the fiscal year
must not show a net capital deficiency. The statement of financial position of SoftBank Corp.
at the end of the fiscal year must not show a net capital deficiency.
(c) In the Company’s consolidated statement of income, operating income (loss) or net income(loss) attributable to the owner of the parent company must not result in losses for two
consecutive years.
(d) Adjusted net interest-bearing debts1 or leverage ratios2 designated in the loan agreement
must not exceed certain respective amounts or numbers at the end of each annual reporting
period and at the end of the second quarter.
Notes:
1. Adjusted net interest-bearing debts:
Amounts deducting cash and cash equivalents from interest-bearing debts in the consolidated statement of financial
position. Certain adjustments are made such as excluding certain listed subsidiaries such as Sprint from the subject.
2. Leverage ratio:
Adjusted net interest-bearing debt / adjusted EBITDA3
3. Adjusted EBITDA:
Certain adjustments are made to EBITDA such as excluding listed subsidiaries such as Sprint

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

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 ratios1 of SoftBank Corp. must not exceed certain numbers at the end of the
fiscal year and at the end of the second quarter.
Notes:
1. Net leverage ratio:
Net debt2 / adjusted EBITDA3
2. Net debt:
The amount of interest-bearing debt shown in SoftBank Corp.’s consolidated statement of financial position after deducting cash and cash equivalents adjusted for certain items. Interest-bearing debt is adjusted for certain items such as an
exclusion 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.

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 must not fall below 75% of Z Holdings Corporation’s net assets as of
September 30 2019.
(b) The amount of net assets in Z Holdings Corporation’s 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 Z Holdings Corporation’s net assets as of September 30 2019.
(c) The balance sheet of Z holdings Corporation at the end of the fiscal year 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 must not show a net capital deficiency.
(e) In Z Holdings Corporation’s statement of income, operating income (loss) or net income (loss)
must not result in losses for the fiscal years.
(f) In Z Holdings Corporation’s consolidated statement of income, operating income (loss) or net
income (loss) must not result in losses for the fiscal year.
(g) Net leverage ratios1 of Z Holdings Corporation must not exceed certain respective amounts or
numbers at the end of each annual reporting period and at the end of the second quarter.
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Financial Section

Corporate Information

169

Notes:1. Net leverage ratio: Net debt2 / Adjusted EBITDA3
2. Net 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.
3. Adjusted EBITDA: EBITDA adjusted for certain items as specified in the loan agreement with the financial institutions.

Liabilities related to these assets pledged as collateral are as follows:

Short-term borrowings �����������������������������
Current portion of long-term borrowings1,3
Current portion of financial liabilities
relating to sale of shares by variable
prepaid forward contract2 �����������������������
Installment payables (current) �������������������
Long-term borrowings1,3,5 �������������������������
Financial liabilities relating to sale of sharesby variable prepaid forward contract4 �����

(4) Assets pledged as collateral
Assets pledged as collateral for liabilities are as follows:

Cash and cash equivalents ���������������������������
Trade and other receivables���������������������������
Other financial assets (current)1���������������������
Inventories ���������������������������������������������������
Other current assets�������������������������������������
Assets classified as held for sale2�������������������
Property, plant and equipment ���������������������
Right-of-use assets���������������������������������������
Intangible assets�������������������������������������������
Investments accounted for using the equity
method2,3,4 �������������������������������������������������
Investments from SoftBank Vision Fund andother SBIA-managed funds accounted forusing FVTPL1 ���������������������������������������������
Investment securities�������������������������������������
Other financial assets (non-current)���������������
Total���������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥

¥

$

7,461
14,202
12,280–1,640
224,201
638,388
–
8,147

3,309
7,024
21,981
1,803
173–
100,040
1,851
9,200

30,40564,541201,976
16,5671,590–
919,232
17,00884,536559,656

776,309

7,133,226–
10,352–¥1,476,327

857,356
10,184
1,646¥1,790,876

7,877,938
93,577
15,125$16,455,721

Table of Contents(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥

4,472
140,077¥354
1,041,811$

730,601
623
811,865––
748,131––6,874,309

–
1,672
–
278
¥1,689,588

196,101–
657
347¥1,987,401

1,801,902
–
6,037
3,188
$18,261,518

Interest-bearing debt

(3) Borrowings related to equity securities lending contract
For the fiscal year ended March 31, 2019
The Company entered into a securities lending contract regarding stocks of certain subsidiaries. As of
March 31, 2019, the amount of the cash received is recognized as short-term borrowings of ¥199,200
million and included in “Interest-bearing debt.”(Millions of yen)

(Millions of yen)

Installment payables (non-current)�������������
Derivative financial liabilities (current)�����������
Derivative financial liabilities (non-current)�����
Total �����������������������������������������������������

3,253
9,572,829

Notes:
1. Certain listed shares held by SoftBank Vision Fund 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 beprepaid 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 SoftBank Vision Fund did not pay the relevant amounts to creditors
when due. The long-term borrowings 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 ($938,390 thousand) was partially and voluntarily prepaid by SoftBank Vision Fund. In the samemonth, the facility agreement for the borrowings was amended and pursuant to the terms of this amendment, SoftBank Vision Fundmade an additional ¥17,949 million ($164,927 thousand) voluntary partial repayment and pledged cash as collateral. Such cash
collateral amount is intended to be applied in April 2020 towards a further voluntary repayment of the outstanding long-termborrowings.
As a result, ¥849,088 million ($7,801,966 thousand) of the listed shares held by SoftBank Vision Fund and ¥10,883 million ($100,000
thousand) of cash (the carrying amounts of each asset as of March 31, 2020) were pledged as collateral for ¥162,195 million($1,490,352 thousand) of long-term borrowings and ¥10,883 million ($100,000 thousand) of current portion of long-term borrowings
as of March 31, 2020. The aforementioned pledged shares are included within “Investments from SoftBank Vision Fund and other
SBIA-managed funds accounted for using FVTPL” and the cash collateral is included within “Other financial assets (current)” in the
consolidated statement of financial position as of March 31, 2020.
2. ¥263,457 million of Alibaba shares (carrying amount on a consolidated basis) is pledged as collateral for ¥730,601 million of financial liability
for variable prepaid forward contract as of March 31, 2019. Alibaba shares pledged as collateral are recorded for ¥224,201 million as“Assets classified as held for sale” and for ¥39,256 million as “Investments accounted for using the equity method” in the consolidated
statement of financial position. The details are described in “Note 46. Gain relating to settlement of variable prepaid forward contract using
Alibaba shares.”3. ¥721,856 million ($6,632,877 thousand) (as of March 31, 2019: ¥520,400 million) of Alibaba shares (carrying amount on a consolidated basis) held by a wholly-owned subsidiary of the Company, is pledged as collateral for ¥1,027,839 million ($9,444,445 thousand)of current portion of long-term borrowings of the subsidiary as of March 31, 2020 (as of March 31, 2019: ¥557,152 million of longterm borrowings). 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 borrowings are non-recourse debts, andtherefore, SoftBank Group Corp. will not be responsible for the borrowings. The creditors would be able to dispose the asset pledged
as collateral upon a circumstance where the early settlement was demanded and the subsidiary did not repay the borrowings,
accordingly.

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Financial Section

Corporate Information

1704. ¥54,453 million ($500,349 thousand) of Alibaba shares (carrying amount on a consolidated basis) is pledged as collateral for ¥196,101
million ($1,801,902 thousand) of financial liability for variable prepaid forward contract as of March 31, 2020. The details are describedin “Notes 9” under “(1) Components of interest-bearing debt.”
5. 929,022,669 shares out of 3,182,919,470 shares of SoftBank Corp. held by the Company is pledged as collateral for ¥497,356 million($4,570,027 thousand) of long-term borrowings of Moonlight Finance GK (previously Hinode 1 GK), a wholly-owned subsidiary of theCompany, as of March 31, 2020. The borrowings include an early settlement clause and an early settlement may be elected by thecreditors under certain circumstances such as a significant decrease in the fair value of pledged SoftBank Corp. shares. The creditors
would be able to dispose the asset pledged as collateral upon a circumstance where the early settlement was demanded and Moonlight
Finance GK did not repay the borrowings, accordingly. The borrowings are non-recourse debts, and therefore, SoftBank Group Corp.
will not be responsible for the borrowings.

Liabilities related to the assets with restrictions on rights are as follows:c. Other
As of March 31, 2020, ¥47,831 million ($439,502 thousand) (as of March 31, 2019: ¥61,595
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¥115,273 million ($1,059,202 thousand) (as of March 31, 2019: ¥77,655 million) of margindeposits with central counterparties.

(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥7,601686¥8,287

¥185
272
¥457

$1,7002,499$4,199Interest-bearing debt
Current portion of installment payables�����
Installment payables ���������������������������������

Other than the above, the following assets are pledged as collateral.
a. Brightstar
As of March 31, 2020, $1.4 billion (as of March 31, 2019: $1.8 billion) (before consolidation
adjustments) of the assets of Brightstar were pledged as collateral on the $0.2 billion (as ofMarch 31, 2019: $0.5 billion) borrowing.
b. Fortress
As of March 31, 2020, based on a term loan agreement of $1.0 billion (as of March 31, 2019:$1.2 billion) which was entered into to finance the acquisition of Fortress; the equity interests of
Fortress and four wholly-owned subsidiaries within the acquisition structure are pledged ascollateral.

(Millions of yen)

Total �����������������������������������������������������

b. 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:

Property, plant and equipment ���������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020¥–

¥287,417$2,640,972

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 ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥–
–
¥–

¥ 81,383
220,947¥302,330$ 747,799
2,030,203$2,778,002

Interest-bearing debt
Current portion of long-term borrowings �(5) Assets with restrictions on rights
a. Assets with restrictions on rights due to the installment purchaseLong-term borrowings�������������������������������
Total �����������������������������������������������������

Assets with restrictions on rights due to the installment purchase are as follows:

Property, plant and equipment ���������������������
Intangible assets�������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥15,861
4,666¥20,527

¥538
1
¥539

$4,943
10$4,953c. 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:

Intangible assets�������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued Growth(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥333,619¥348,522$3,202,444

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

171

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 ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥104,729
198,947¥303,676¥107,690
208,896¥316,586$ 989,525
1,919,471$2,908,996(8) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the consolidated statement of cash flows
are as follows:

Interest-bearing debt
Current portion of long-term borrowings �Long-term borrowings�������������������������������
Total �����������������������������������������������������

(6) 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:

Investments accounted for using FVTPL���������
Investments accounted for using the equity
method �����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020¥–

¥33,660$309,290

53,437

1,426

13,103(7) Components of proceeds in short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the consolidated statementof cash flows are as follows:

Net (decrease) increase of short-termborrowings�������������������������������������������������
Net (decrease) increase of commercial paper�
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥ (7,411)(58,000)¥(65,411)¥ 36,173
97,000¥133,173$ 332,381
891,298$1,223,679

Proceeds from borrowings1,2�������������������������
Proceeds from issuance of corporate bonds��
Proceeds from procurement relating tosettlement of shares by variable prepaid
forward contract3 ���������������������������������������
Proceeds from sale-leaseback of newly
acquired equipment1,2���������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥5,080,337
747,744¥7,043,561
1,379,220$64,720,767
12,673,160–

179,145

1,646,099

361,031¥6,189,112–¥8,601,926–$79,040,026

Notes:
1. The Company conducts sales and leaseback transactions for intangible assets. For the fiscal year ended March 31, 2020, the Company
does not apply IFRS 16 to leases for intangible assets. Accordingly, the amount related to the transaction for the fiscal year ended
March 31, 2019, is restated form “Proceeds from sale-leaseback of newly acquired equipment” to “Proceeds from borrowings.”
2. The Company procures funds through sales and leaseback transactions for certain telecommunications equipment utilized in the
SoftBank segment. Of these transactions, transactions conducted after the adoption of IFRS 16 are not accounted for as sales since thetransfer of the assets do not meet the requirement under the IFRS 15. Accordingly, the amount related to the transaction after the
initial adoption of IFRS 16, is restated form “Proceeds from sale-leaseback of newly acquired equipment” to “Proceeds fromborrowings.”
3. The amount is procured under the variable prepaid forward contract using Alibaba shares. The details are described in “Notes 9” under“(1) Components of interest-bearing debt.”(9) 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:

Repayment of borrowings1�������������������������
Redemption of corporate bonds�����������������
Repayment of installment payables�������������
Repayment of lease obligations 1,2���������������
Total�������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(5,627,315)(1,061,732)(18,671)(420,661)¥(7,128,379)¥(4,599,878)(1,036,765)(10,084)–¥(5,646,727)$(42,266,636)(9,526,463)(92,659)–$(51,885,758)

Notes:
1. The Company does not apply IFRS 16 to leases for intangible assets. Accordingly, the amount related to the transaction for the fiscal
year ended March 31, 2019, is restated form “Payment of lease obligations” to “Repayment of borrowings.”
2. As a result of the adoption of IFRS 16, the amount previously presented as “Repayment of lease obligations” is reclassified as “Repayment of lease liabilities” in the consolidated statement of cash flows.

SoftBank Group Corp. ANNUAL REPORT 2020

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Financial Section

Corporate Information

172

25. Deposits for banking business
The components of deposits for a banking business are as follows:

Ordinary deposits�����������������������������������������
Time deposits�����������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥643,249
102,694¥745,943¥770,572
102,515¥873,087$7,080,511
941,974$8,022,485

28. Other current liabilities and other non-current liabilities
The components of other current liabilities and other non-current liabilities are as follows.
As of March 31, 2020, other current liabilities and other non-current liabilities of Sprint are reclassified
as a disposal group classified as held for sale. The details are described in “Note 6. Discontinued
operations.”(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥ 201,979
252,812428,796
112,090
69,97735,33957,362¥1,158,355¥163,097
141,454
131,024
66,36932,1644,640
57,751¥596,499$1,498,640
1,299,770
1,203,933
609,841
295,544
42,635
530,653$5,481,016

99,351
26,51538,235
193,830¥ 357,931

16,448151–
62,954¥ 79,553

151,135
1,387–
578,461$ 730,983

Current
Accrued employee benefits�����������������������

The amounts are related to The Japan Net Bank, Limited.

Contract liabilities1 �����������������������������������
Withholding income tax2���������������������������

26. Trade and other payables
The components of trade and other payables are as follows:
As of March 31, 2020, trade and other payables of Sprint are reclassified as a disposal group classified
as held for sale. The details are described in “Note 6. Discontinued operations.”

Trade payables ���������������������������������������������
Other�����������������������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥1,697,556
212,052¥1,909,608¥1,290,182
295,144¥1,585,326$11,855,022
2,711,972$14,566,994

Consumption tax payable and other ���������
Accrued interest expense���������������������������
Deferred revenue �������������������������������������
Other �������������������������������������������������������
Total�����������������������������������������������������
Non-current
Defined benefit liabilities3 �������������������������
Deferred revenue��������������������������������������
Unfavorable lease contracts4���������������������
Other �������������������������������������������������������
Total �����������������������������������������������������

27. Other financial liabilities (current)
The components of other financial liabilities (current) are as follows:(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020–

¥145,133$1,333,575–
10,849¥10,849

96,756
6,121¥248,010

889,056
56,244$2,278,875

As ofMarch 31, 2019

Allowance for loan commitment losses1 �������
Allowance for financial guarantee contract
losses2���������������������������������������������������������
Other�����������������������������������������������������������
Total���������������������������������������������������������

¥Notes:
1. Contract liabilities are recognized as liabilities as a result of applying IFRS 15, “Revenue from contracts with customers.”
2. Withholding income tax as of March 31, 2020 includes the amount of ¥122,548 million ($1,126,050 thousand) (as of March 31, 2019:¥422,648 million) which is related to dividends within the group companies. The Company paid the withholding income tax in April,2020 (as of March 31, 2019: paid in April, 2019.)
3. Defined benefit liabilities as of March 31, 2019 mainly consist of the amount of ¥84,550 million for Sprint and of ¥11,044 million for
SoftBank Corp. Defined benefit liabilities as of March 31, 2020 mainly consist of the amount of ¥10,467 million ($96,178 thousand) for
SoftBank Corp. and of ¥2,744 million ($25,214 thousand) for ASKUL Corporation.
4. Unfavorable lease contracts were recognized as liabilities based on the estimated fair value of the unfavorable portion of future cash
flows if, at the time of the business combination of Sprint, the terms of operating lease contracts in which the acquiree is the lessee areunfavorable compared to market terms. Reversal of unfavorable lease contracts is recorded as a deduction of operating lease expense.

Notes:
1. Balance as of March 31, 2020 is ¥145,133 million ($1,333,575 thousand) of allowance for loan commitment losses related to acquire
unsecured notes issued by WeWork. The details are described in “(3) Details and progress of the agreement between the Company and
WeWork” under “Note 21. Investments accounted for using the equity method.”
2. As of March 31, 2020, ¥89,202 million ($819,645 thousand) of allowance for financial guarantee contract losses related to a credit
facility for WeWork provided by financial institutions is included. The details are described in “(3) Details and progress of the agreement
between the Company and WeWork” under “Note 21. Investments accounted for using the equity method.”

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Financial Section

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173

29. Provisions
The changes in the provisions are as follows:(Millions of yen)
Asset retirement
obligations

Restructuring provisions

Provision for loss oninterest repayment

As of April 1, 2019���������������������������������������������������������������������������������������������������������������������������������
Effect of retrospective adjustments due to adoption of new standards1���������������������������������������������������
As of April 1, 2019 (after adjustments)���������������������������������������������������������������������������������������������������
Recognition of provisions �����������������������������������������������������������������������������������������������������������������������
Interest due to passage of time���������������������������������������������������������������������������������������������������������������
Used�������������������������������������������������������������������������������������������������������������������������������������������������������
Reversal of provisions�����������������������������������������������������������������������������������������������������������������������������
Change in estimate���������������������������������������������������������������������������������������������������������������������������������
Exchange differences �����������������������������������������������������������������������������������������������������������������������������
Transfer to liabilities directly relating to assets classified as held for sale���������������������������������������������������
Other�����������������������������������������������������������������������������������������������������������������������������������������������������
As of March 31, 2020�����������������������������������������������������������������������������������������������������������������������������

¥145,690–
145,690
7,983
5,291(13,096)–
14,721(1,508)(81,108)
2,261¥ 80,234

Other

Total

¥ 29,770(10,324)
19,446317
608(7,958)(7,989)104(371)(4,237)80¥–¥12,017–
12,017––(1,941)–––––¥10,076¥13,686(1,679)12,007
11,25877(7,851)
(673)
–
(422)
(4,636)169¥ 9,929¥201,163(12,003)
189,160
19,558
5,976(30,846)(8,662)
14,825(2,301)(89,981)2,510¥100,239

Current liabilities
Non-current liabilities �����������������������������������������������������������������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������������������������������������������������������������

¥

¥

–
–
–

¥ 1,753
8,323¥10,076¥ 5,185
4,744¥ 9,929¥ 11,448
88,791¥100,239

Asset retirement
obligations

Restructuring provisions

Provision for loss oninterest repayment

Other

Total

As of April 1, 2019���������������������������������������������������������������������������������������������������������������������������������
Effect of retrospective adjustments due to adoption of new standards1���������������������������������������������������
As of April 1, 2019 (after adjustments)���������������������������������������������������������������������������������������������������
Recognition of provisions �����������������������������������������������������������������������������������������������������������������������
Interest due to passage of time���������������������������������������������������������������������������������������������������������������
Used�������������������������������������������������������������������������������������������������������������������������������������������������������
Reversal of provisions�����������������������������������������������������������������������������������������������������������������������������
Change in estimate���������������������������������������������������������������������������������������������������������������������������������
Exchange differences �����������������������������������������������������������������������������������������������������������������������������
Transfer to liabilities directly relating to assets classified as held for sale���������������������������������������������������
Other�����������������������������������������������������������������������������������������������������������������������������������������������������
As of March 31, 2020�����������������������������������������������������������������������������������������������������������������������������

$1,338,693–
1,338,693
73,352
48,617(120,334)–
135,266(13,856)(745,272)
20,776$ 737,242$273,546(94,864)
178,682
2,913
5,586(73,123)(73,408)
956(3,409)(38,932)735$–$110,420–
110,420––(17,835)–––––$ 92,585$125,756(15,427)
110,329
103,446708(72,141)(6,184)–(3,878)(42,599)
1,552$ 91,233$1,848,415(110,291)
1,738,124
179,71154,911(283,433)(79,592)
136,222(21,143)(826,803)
23,063$ 921,060

Current liabilities
Non-current liabilities �����������������������������������������������������������������������������������������������������������������������������
Total���������������������������������������������������������������������������������������������������������������������������������������������������

$$$ 16,108
76,477$ 92,585$ 47,643
43,590$ 91,233$ 105,192
815,868$ 921,060

4,510
75,724¥ 80,234¥(Thousands of U.S. dollars)

41,441
695,801$ 737,242

$

–
–
–

Notes:
1. As a result of the adoption of IFRS 16, the amount of provisions related to operating leases by the lessee that was previously included in “Restructuring provisions” and “Other” are deducted from right-of-use assets.

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174

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 is based on the assumption at present and is subject tochanges depending on revised future assumptions.
Restructuring provision
The restructuring provision consists mainly of a network shutdown provision and backhaul2 accessprovision.
(Network shutdown provision)
The network shutdown provision resulted from Sprint recognizing lease exit costs mainly related to the
shutdown of the Nextel and Clearwire platform.
(Backhaul access provision)
The backhaul access provision reflects exit costs related to payments that will continue to be madeunder Sprint’s backhaul access contracts for which it will no longer be receiving any economic benefit.
The majority of the backhaul access provision relates to Sprint’s network modernization activities.
Notes:
2. Backhaul is an intermediary network that connects the cell towers to the local switching center.

Provision for loss on interest repayment
Provision for loss on interest repayment is recorded 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 might fluctuate from changes in market
environment and other factors.

30. 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:

Equity capital �����������������������������������������������
Equity capital ratio (%)���������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥7,621,481
21.1¥5,913,613
15.9$54,338,078

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 24. Interest-bearing debt”.
(2) Financial risk management
As we operate in a wide range of markets, the Company faces a variety of financial risks (foreignexchange 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.
a. Market risk(a) Foreign exchange risk
The Company is engaged in international businesses through investments, financial
contributions and the establishment of joint ventures. The Company undertakes transactions
denominated 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, British pound, and Indian Rupee.

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To manage this risk, the Company continuously monitors exchange rates and manages
exchange rate exposures. The Company also uses foreign currency forward contracts, foreign
currency swap contracts, and interest rate currency swap contracts to hedge the risk.
i. Foreign exchange sensitivity analysis
Exposure to foreign exchange risk on financial instruments related to U.S. dollars, our major
foreign currency, for subsidiaries whose functional currency is Japanese yen is as follows:
U.S. Dollar (Functional currency: Japanese yen)

Net exposure affecting income
before income tax [in asset(liability) position] ����������������������
Net exposure affecting othercomprehensive income [in asset
position]������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥198,110¥(252,961)$(2,324,368)

6,906

21,627

198,723

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.
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.
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 34. Foreign currency exchange rates.”

U.S. Dollar
Other than the table presented above, major exposures to foreign exchange risk on
subsidiaries whose functional currency is not Japanese yen are as follows:
U.S. Dollar (Functional currency: British pound)

Net exposure affecting income
before income tax [in asset
position]���������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥56,634¥110,355$1,014,013(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2020

As ofMarch 31, 2020

Net exposure affecting income
before income tax [in asset
position]������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(1,981)¥2,530$23,247

(69)

(216)

(1,985)The table below presents the effect of a 1% appreciation of the British pound against the
U.S. Dollar on income before income tax :Decrease in income before
income tax �����������������������������

¥(6,163)(Thousands of
U.S. dollars)

U.S. Dollar

Indian Rupee (Functional currency: U.S. Dollar)

As ofMarch 31, 2019

Increase (decrease) in income
before income tax����������������������
Decrease in other comprehensive
income before tax effect������������

(Millions of yen)

¥86,815

Table of Contents(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(566)¥(1,104)$(10,144)$797,712

Message from Our CEO

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Corporate Information

176

The table below presents the effect of a 1% appreciation of the U.S. Dollar against the
Indian Rupee on income before income tax:

As of March 31, 2019
(Millions of yen)

AssetsCarrying
amount(fair value)
Liabilities

Changes in thefair value ofhedging instruments used forrecognition of
the ineffective
portion of hedging instruments

646,210(646,210)¥6,597¥ (42,769)¥ 10,478¥113.34
per $1

734,603(734,603)–(69,441)(51,031)¥132.61per €1¥ 1,380,813(1,380,813)¥6,597¥(112,210)¥(40,553)

Indian Rupee

Fiscal year ended
March 31, 2019

Increase (decrease) in income
before income tax ��������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥62¥(868)

Contract
amounts(of which:maturing in
more than
one year)

Currency swap
contracts
Receipt in
U.S. dollars/ paymentin yen ������
Receipt
in Euro /payment
in yen ������
Total ������

$(7,976)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”.
Foreign currency exchange contracts to which hedge accounting is applied¥

Average rate

As of March 31, 2020

Contract
amounts(of which:maturing in
more than
one year)

AssetsCarrying
amount(fair value)
Liabilities

Changes in thefair value ofhedging instruments used forrecognition of
the ineffective
portion ofhedging
instruments¥29,422¥ (18,273)¥ 47,321–(89,755)(20,314)¥29,422¥(108,028)¥ 27,007(Millions of yen)(Thousands of U.S. dollars)

Average rate

AssetsCarrying
amount(fair value)
Liabilities

Changes in thefair value ofhedging instruments used forrecognition of
the ineffective
portion ofhedging
instruments$270,348$(167,904)$ 434,816–(824,727)(186,658)$270,348$(992,631)$ 248,158

Financial Section

Corporate Information

Contract
amounts(of which:maturing in
more than
one year)

Currency swap contracts
Receipt in U.S. dollars / payment in yen���������������������������������
Receipt in Euro / payment in yen�������������������������������������������
Total ���������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020¥

646,210(646,210)
734,603(734,603)¥ 1,380,813(1,380,813)

Table of Contents

Message from Our CEO

Who We Are¥113.34
per $1¥132.61per €1

Our Path to Continued Growth$ 5,937,792(5,937,792)
6,750,005(6,750,005)$12,687,797(12,687,797)

Management: The Foundation Supporting Our Growth177

The carrying amounts of the derivative financial assets designated as hedging
instruments are recorded as either “Other financial assets” or “Derivative financial
liabilities” in the consolidated statement of financial position. The outstanding balance of
those maturing in more than one year are classified as non-current assets or
non-current-liabilities.
The above foreign currency exchange contracts are designated as cash flow hedges.
At the inception of the hedging relationship, the hedge ratio of the hedging relationship 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 have 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.

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, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

Balance at the beginning of the period

¥(59,744)¥(43,752)$(402,022)

Amount incurred���������������������

473
15,519¥(43,752)

17,46542,801¥ 16,514

160,480
393,283$ 151,741

Currency swap contracts

Reclassification adjustments1���
Balance at the end of the period2

Notes:
1.	Reclassification adjustments are the amounts of accumulated other comprehensive income transferred to profit or loss
relating to the hedged item when the hedged item affects profit or loss, and are recorded as “Derivative gain and loss”
in the consolidated statement of income. For the fiscal year ended March 31, 2020, the amount of ¥2,956 million($27,162 thousand) (for the fiscal year ended March 31, 2019: ¥ (4,888) million) transferred from cash flow hedge to
profit or loss is included in reclassification adjustments. The transfer arises from discontinued hedging relationships whena forecasted transaction is no longer expected to occur, although hedge accounting has been applied.
2.	For the fiscal year ended March 31, 2020 accumulated other comprehensive income after tax includes ¥12,359 million($113,562 thousand) (as of March 31, 2019: ¥15,315 million) related to discontinued hedging accounting.

Foreign currency exchange contracts to which hedge accounting is not applied(Millions of yen)Contract amounts(of which: maturing in
more than one year)

Foreign currency
forward contracts���Currency swap
contracts����������������
Foreign exchange
margintransactions*����������
Total ��������������������

¥ 317,802(1,301)
126,200(115,050)

AssetsCarrying amount(fair value)
Liabilities¥ 5,273¥ (1,462)

3(9,941)

587,224(–)

17,054(2,014)¥1,031,226(116,351)¥22,330¥(13,417)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2019
Contract amounts(of which: maturing in
more than one year)

Assets¥ 125,499(17,262)
152,834(139,180)

Carrying amount(fair value)
Liabilities

As of March 31, 2020
Contract amounts(of which: maturing in
more than one year)$ 1,153,165(158,615)
1,404,337(1,278,875)

AssetsCarrying amount(fair value)
Liabilities$ 52,642$ (19,921)

29,697(89,451)¥ 5,729¥ (2,168)

3,232(9,735)581,384(–)

24,792(2,462)

5,342,130(–)

227,805(22,622)¥ 859,717(156,442)¥33,753¥(14,365)$ 7,899,632(1,437,490)$310,144$(131,994)

Note:*Foreign exchange margin transactions are operated by the subsidiary, YJFX, Inc.’s foreign exchange margin transactions business.

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i. Price sensitivity analysis
The table below presents the effect of a 10% decrease in market price regarding thesecurities and related derivative instruments traded in active markets on income before
income tax and other comprehensive income before tax effect, assuming that all otherfactors are constant.

(b) Price risk
As part of the business strategy, the Company holds securities traded in active markets,
including listed stock, and is exposed to market price fluctuation risk.
The Company manages this risk by continuously monitoring the financial condition of
security issuers and stock market fluctuations.

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(61,221)¥(134,395)$(1,234,908)¥ (3,399)¥$

Decrease in income before
income tax ��������������������������������
Decrease in other comprehensive
income before tax effect������������

(1,110)(10,199)

ii. Option contracts
The details of option contracts are as follows:
Option contracts to which hedge accounting is not applied(Millions of yen)Contract amounts(of which: maturing in
more than one year)

WeWork warrants1 �������
WeWork warrants with exercise
price of $0.01 per share2�������
Embedded collar transaction in
the variable prepaid forward
contract using Alibaba shares3
Variable prepaid forward
contract using Alibaba shares4�
Call option (Buyer)���������
Call option (Seller)���������
Forward contracts������
Total ����������������������

¥ 277,475(166,485)

Assets¥–Carrying amount(fair value)
Liabilities¥–(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2019
Contract amounts(of which: maturing in
more than one year)¥

Assets–¥–Carrying amount(fair value)
Liabilities¥–

As of March 31, 2020
Contract amounts(of which: maturing in
more than one year)$–

Assets$–Carrying amount(fair value)
Liabilities

$

–

–

–

–

141
(141)

17,936–

1,296(1,296)

164,807–732,534(–)–(749,846)

–

–

–

–

–

–

–

–

–

5,009

–

46,026–

41,786(41,786)

4,038

–

2,804

–

25,765

–

–

–

–

–

(657)

–

(6,037)–(14,390)

–

(221)

–

(2,031)¥4,038¥(764,236)¥25,749¥ (878)$236,598$(8,068)

379,984(–)¥1,431,779(208,271)

201,277(201,277)
50,680(49,077)
9,604
(–)
784
(–)
¥ 262,486(250,495)

1,849,462(1,849,462)
465,680(450,951)
88,248
(–)
7,204
(–)
$ 2,411,890(2,301,709)

Notes:
1. As of March 31, 2019, the Company held the warrants that were convertible into preferred stock of WeWork in the amount equivalent to $2.5 billion. In April, 2019, the Company paid the amount of $1.0 billion to WeWork as consideration and converted to a portion of thepreferred stock. For the remaining $1.5 billion portion of warrants, the terms and conditions are changed in the exercise price and the date of conversion in October, 2019. The amount of contract for the $1.5 billion portion reduced as a result of making the payment before thedate of conversion. The details of the $1.5 billion portion of warrants are described in “(3) Details and progress of the agreement between the Company and WeWork” under “Note 21. Investments accounted for using the equity method.”

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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 21. Investments
accounted for using the equity method.”
3. The decrease was due to the settlement in June, 2019 of the variable prepaid forward contract using Alibaba shares made in June of 2016. The details are described in “Note 46. Gain relating to settlement of variable prepaid forward contract using Alibaba shares.”4. The amount includes the variable prepaid forward contract using Alibaba shares concluded in November 2019. The details are described in “(1) Components of interest-bearing debt (Notes.9)” under “Note 24. Interest-bearing debt.”(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, the Company maintains an appropriate mixture of fixed and floating interest rate debt.
For certain borrowings and bonds with floating interest rates, the Company also utilizes
derivative transactions, such as interest rate swaps, in order to hedge interest rate fluctuation
risk, converting floating interests into fixed interests. For floating interest rate debt, theCompany continuously monitors interest rate fluctuations.

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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.

Decrease in income before
income tax �������������������������������

Who We Are

Our Path to Continued Growth(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(35,675)¥(53,507)$(491,657)

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

180

ii. Interest rate contracts
The details of interest rate contracts are as follows:
Interest rate contracts to which hedge accounting is applied
As of March 31, 2019
Contract
amounts(of which:maturing
in morethan one year)

Interest rate
swap
Variable receipts¥ 722,480/ fixed(722,480)
payments�������

AssetsCarrying
amount(fair value)
Liabilities

Changes in the fairvalue of hedging
instruments used
for recognitionof the ineffective
portion of hedging
instruments

Average rate

¥1,419¥(6,824)¥(9,760)

1.97%

Contract
amounts(of which:maturing
in morethan one year)¥ 500,500(500,000)

The carrying amounts of the derivative financial assets designated as hedging instruments
are recorded as either “Other financial assets” or “Derivative financial liabilities” in the
consolidated statement of financial position. The outstanding balance of those maturing in
more than one year are classified as non-current assets or non-current liabilities.
The above 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 whether the significant conditions of hedged items and hedging instruments
are met or closely matched, or the quantitative assessments whether the changes in valuesof the hedged items and hedging instruments are in the relationship to offset each otheragainst the same risk. The Company confirms if there is an economic relationship between
the hedged items and hedging instruments through them.
Any ineffective portion of the hedge have no significance in amounts. The change invalues of hedged items used to recognize the ineffective portion as a basis are similar to thechanges in fair value of hedging instruments.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO(Millions of yen)(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2020

AssetsCarrying
amount(fair value)
Liabilities

Changes in the fairvalue of hedging
instruments used
for recognitionof the ineffective
portion of hedging
instruments

Average rate¥–¥(5,325)

¥80

1.96%

Contract
amounts(of which:maturing
in morethan one year)$ 4,598,916(4,594,321)

AssetsCarrying
amount(fair value)
Liabilities

Changes in the fairvalue of hedging
instruments used
for recognitionof the ineffective
portion of hedging
instruments$–$(48,930)$735

Changes in the accumulated other comprehensive income after tax related to the derivatives
designated as hedging instruments are as follows:(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

Balance at the beginning of the period¥ 4,458¥(2,039)$(18,736)

Amount incurred�������������������������

(7,035)(5,405)(49,665)

Reclassification adjustments* �����
Transfer to accumulated othercomprehensive income directly
relating to assets classified asheld for sale �����������������������������

538

604

5,551

–
¥(2,039)3,454¥(3,386)

31,738$(31,112)Interest rate swap

Balance at the end of the period�

Note:*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” in the consolidated statementof income. For the fiscal years ended March 31, 2019 and 2020, there were no transactions for which hedge accounting
was discontinued because the hedged transactions had not been expected to occur.

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Financial Section

Corporate Information

181

Interest rate contracts to which hedge accounting is not applied(Millions of yen)Contract amounts(of which:maturing in morethan one year)

Interest rateswap����������������
Interest ratecurrency swap
Interest rate capTotal��������������

¥ 131,111(129,151)
29,564(29,007)332,970(–)¥ 493,645(158,158)

Assets¥Carrying amount(fair value)
Liabilities–¥(1,011)

151

(561)

6

–

¥157

¥(1,572)

Contract amounts(of which:maturing in morethan one year)

Table of Contents

Assets¥ 386,763(114,688)
21,862(21,862)$ 3,553,827(1,053,827)
200,882(200,882)

AssetsCarrying amount(fair value)
Liabilities

64$(79,849)

3,409

–

¥ (8,690)

371

–

–

–

–

–

–

–

¥ 408,625(136,550)¥378¥ (8,690)$3,754,709(1,254,709)$3,473$(79,849)

Message from Our CEO¥

Carrying amount(fair value)
Liabilities

As of March 31, 2020
Contract amounts(of which:maturing in morethan one year)7b. Credit risk
In the course of the Company’s business, trade and other receivables, and other financial assets(including deposits, equity securities, bonds, and derivatives) are exposed to the credit risk of its
counterparties.
In order to prevent and reduce the risk, the Company does not expose itself to significant
concentrations of credit risk for such receivables and financial assets. To manage its credit risk,
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 and guaranteed
obligations, represent the Company’s maximum exposure to credit risk on financial assets. The
values of collateral held and other credit enhancements are not included.
For trade receivables, contract assets, and lending commitments, the Company measures the
lifetime expected credit risk. For receivables other than trade receivables, contract assets, andlending commitments, the Company measures future expected credit losses in consideration of
the assessment of significant increase of credit risk. The Company determines whether asignificant 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

SoftBank Group Corp. ANNUAL REPORT 2020

(Thousands of U.S. dollars)

As of March 31, 2020

As of March 31, 2019$and contract assets, the Company 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, the expected credit losses are measured at the amount of lifetime expectedcredit 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 53. Contingency.”
There were no financial or non-financial assets acquired as a result of foreclosure of collateralor enforcement of other credit enhancements during the years ended March 31, 2019 and
2020.

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182

(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, 2019
(Millions of yen)
Past due

Trade receivables���������������������������������������������������������������������
Allowance for doubtful accounts �������������������������������������������

Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year¥1,472,660(27,054)¥115,705(3,996)¥27,267(6,882)¥17,837(4,568)¥12,112(4,947)¥11,267(6,532)

Total¥1,656,848(53,979)¥1,602,869

Total �����������������������������������������������������������������������������������

As of March 31, 2020
(Millions of yen)
Past due

Trade receivables��������������������������������������������������������������������
Allowance for doubtful accounts ������������������������������������������

Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year¥1,105,791(3,490)¥65,753(935)¥33,181(1,736)¥16,954(1,858)¥8,734(4,484)¥11,364(7,109)Total¥1,241,777(19,612)¥1,222,165

Total ����������������������������������������������������������������������������������

(Thousands of U.S. dollars)
Past due

Trade receivables���������������������������������������������������������������������
Allowance for doubtful accounts �������������������������������������������

Before due

Within1 month

1 month to
3 months

3 months to
6 months

6 months to
1 yearMore than
1 year$10,160,719(32,068)$604,181(8,591)$304,888(15,951)$155,784(17,072)$80,254(41,202)$104,419(65,324)

Total �����������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

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Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Total$11,410,245(180,208)$11,230,037

Corporate Information

183

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, 2019
(Millions of yen)
Carrying amounts
Lifetime expected credit losses

Other receivables �������������������������������������������������������������������������������
Investment securities���������������������������������������������������������������������������
Other financial assets �������������������������������������������������������������������������
Total�����������������������������������������������������������������������������������������������

12 month expected credit losses

Other than credit-impaired
financial assets

Before due

Past due

Past due

Past due

Total¥ 850,533
327,069
1,035,740¥2,213,342¥16,675–
7,801¥24,476¥2,433–
1,824¥4,257¥ 7,732–
36,594¥44,326¥ 877,373
327,069
1,081,959¥2,286,401

Credit-impaired financial assets

Investment securities are mostly debt financial assets at FVTOCI.
As of March 31, 2020
(Millions of yen)
Carrying amounts
12 month expected credit losses

Other receivables �������������������������������������������������������������������������������
Investment securities���������������������������������������������������������������������������
Other financial assets �������������������������������������������������������������������������
Total�����������������������������������������������������������������������������������������������

Lifetime expected credit losses

Before due

Past due

Other than creditimpaired financial assets¥ 886,355
331,671
1,107,957¥2,325,983¥25,891–
12,622¥38,513¥ 1,293–
47,676¥48,969

Credit-impaired
financial assets¥11,481–
45,839¥57,320

Purchased or originatedcredit-impaired financial
assets

Total

¥

–
–
67,630¥67,630¥ 925,020
331,671
1,281,724¥2,538,415(Thousands of U.S. dollars)
Carrying amounts

12 month expected credit losses

Other receivables �������������������������������������������������������������������������������
Investment securities���������������������������������������������������������������������������
Other financial assets �������������������������������������������������������������������������
Total�����������������������������������������������������������������������������������������������

Lifetime expected credit losses

Before due

Past due

Other than creditimpaired financial assets

Credit-impaired
financial assets$ 8,144,402
3,047,606
10,180,621$21,372,629$237,903–
115,979$353,882$ 11,881–
438,078$449,959$105,495–
421,198$526,693

Who We Are

Our Path to Continued Growth

Purchased or originatedcredit-impair ed financial
assets$––621,428$621,428

Total$ 8,499,681
3,047,606
11,777,304$23,324,591

Investment securities are mostly debt financial assets at FVTOCI.

SoftBank Group Corp. ANNUAL REPORT 2020

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Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

184

(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, 2019
(Millions of yen)
Allowance for doubtful accounts
Lifetime expected credit losses
Other than credit-impaired
financial assets

Credit-impaired
financial assets

Total¥ 37,640¥ 15,958¥ 53,598

38

–

38

37,67842,409(34,979)(7,176)¥ 37,932

15,9587,220(10,951)
3,820¥ 16,047

53,636
49,629(45,930)(3,356)¥ 53,979

Balance at the beginning of theperiod���������������������������������������������
Effect of retrospective adjustments
due to adoption of new standards �Balance at the beginning of theperiod (after adjustments)���������������
Provisions�����������������������������������������
Utilized���������������������������������������������
Other�����������������������������������������������
Balance at the end of the period�������

Credit-impaired
financial assets

Total$ 348,544
536,791(484,434)$ 147,450
71,120(124,369)$ 495,994
607,911(608,803)(309,666)(34,625)$ 56,610(25,471)
54,868$ 123,598(335,137)
20,243$ 180,208

Balance at the beginning of theperiod���������������������������������������������
Provisions�����������������������������������������
Utilized���������������������������������������������
Transfer to assets classified as held
for sale�������������������������������������������
Other�����������������������������������������������
Balance at the end of the period�������

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, 2019
Allowance for doubtful accounts
Lifetime expected credit losses

For the fiscal year ended March 31, 2020
(Millions of yen)
Allowance for doubtful accounts
Lifetime expected credit losses

SoftBank Group Corp. ANNUAL REPORT 2020

Lifetime expected credit losses
Other than credit-impaired
financial assets(Millions of yen)

For the fiscal year ended March 31, 2019, there were no changes in gross carrying amounts oftrade receivables that affected the allowance for doubtful accounts.

Balance at the beginning of theperiod���������������������������������������������
Provisions�����������������������������������������
Utilized���������������������������������������������
Transfer to assets classified as held
for sale�������������������������������������������
Other�����������������������������������������������
Balance at the end of the period�������

(Thousands of U.S. dollars)
Allowance for doubtful accounts

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)(33,701)(3,768)¥ 6,161(2,772)
5,971¥ 13,451(36,473)
2,203¥ 19,612

Table of Contents

Message from Our CEO

12 month expectedcredit losses

Other thancredit-impaired
financial assets

Credit-impaired
financial assets

Total¥3,031
2,275
(799)
554

¥1,330717(4)
11¥31,889
16,093(9,029)1¥36,250
19,085(9,832)566¥5,061¥2,054¥38,954¥46,069

Balance at the
beginning of theperiod������������������
Provisions��������������
Utilized������������������
Other��������������������
Balance at the endof the period��������

For the fiscal year ended March 31, 2019, there were no changes in gross carrying amounts offinancial assets other than trade receivables that affected the allowance for doubtful accounts.

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185

For the fiscal year ended March 31, 2020
(Millions of yen)
Allowance for doubtful accounts
Lifetime expected credit losses

Balance at the
beginning of theperiod������������������
Provisions ��������������
Utilized������������������
Transfer to assets
classified as held for sale
Other ��������������������
Balance at the endof the period��������

Purchased ororiginatedcredit-impaired
financial assets

12 month
expected
credit losses

Other thancredit-impaired
financial assets

Credit-impaired
financial assets¥5,061
6,322(1,833)¥ 2,054
33,521(57)¥38,954
17,379(11,091)¥–
65,913*–¥ 46,069
123,135(12,981)(2,778)(1,006)–(2,029)

–
451

–
–

(2,778)(2,584)¥5,766¥ 33,489¥45,693

Total¥65,913c. Liquidity risk
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.
(a) Commitment lines of credit and other credit facilities
The Company has entered into commitment lines of credit and other credit facilities with various
financial institutions to reduce liquidity risk. The Company’s credit facilities are as follows:¥150,861
Credit facilities ����������������������������

(Thousands of U.S. dollars)
Allowance for doubtful accounts
Lifetime expected credit losses

Balance at the
beginning of theperiod������������������
Provisions ��������������
Utilized������������������
Transfer to assets
classified as held for sale
Other ��������������������
Balance at the endof the period��������

Purchased ororiginatedcredit-impaired
financial assets

12 month
expected
credit losses

Other thancredit-impaired
financial assets

Credit-impaired
financial assets$46,504
58,091(16,843)$ 18,873
308,012(524)$357,934
159,690(101,911)(25,526)(9,244)–(18,644)

–
4,144

–
–

(25,526)(23,744)$52,982$307,717$419,857$605,651$1,386,207

Total

Drawn ����������������������������������������
Undrawn ������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥3,404,119
1,828,968¥1,575,151¥3,649,205
3,121,343¥ 527,862$33,531,241
28,680,906$ 4,850,335

Note:
Certain commitments above contain financial covenants. The details are described in “(2) Financial covenants” under “Note
24. Interest-bearing debt.”$–$ 423,311
605,651*
1,131,444–(119,278)

Note:*For the fiscal year ended March 31, 2020, the Company recorded the total amount of ¥13,265 million ($121,887 thousand) as
undiscounted expected losses at initial recognition of the allowance for doubtful accounts related to purchased or originatedcredit-impaired financial assets.

Provisions for and reversal of doubtful accounts are recorded in “Selling, general andadministrative expenses” and “Other non-operating income (loss)” in the consolidated statementof income.

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186

(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, 2019
(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 ���������������������������
Commercial paper�����������������������������������
Long-term borrowings(including current portion)1�������������������
Corporate bonds(including current portion)2�������������������
Lease obligations1�������������������������������������
Financial liability for variable prepaid
forward contract�����������������������������������
Installment payables �������������������������������
Deposits for banking business3 �������������������
Third-party interests in SoftBank
Vision Fund and Delta Fund���������������������

¥499,979
42,000¥ 499,979
42,0005,922,990

5,988,463

822,374

1,649,701

637,052

572,225

1,103,646

1,203,465

7,581,038
892,472

7,641,406
892,472

1,041,234
334,517

326,485
242,036

1,225,718
162,398

766,176
99,6401,129,565
38,641

3,152,228
15,240730,601
16,826
768,048732,534
17,173
768,224732,534
11,734745,953

–
2,723
6,038

–
2,238
5,951

–
404
3,160

–
46
2,773

–
28
4,349

4,136,965
1,909,608
45,85922,545,586

4,136,965 4
1,909,608
45,85922,674,683

29,677 5
1,871,807
10,7896,142,598

–
9,002
9,090
2,245,075

–
3,589
3,862
2,040,808

–
2,107
3,791
1,447,503

–
127
2,202
2,277,000

4,107,288 6
22,976
16,125
8,521,699

125,627
764,2368,396
898,259

125,627
764,979
7,816
898,422(8,523)764,979
1,799¥ 758,255(11,331)–
1,242(10,089)(10,513)–
1,732(8,781)

15,016–
1,501
16,517

2,582
–
868
3,450

138,396–674¥ 139,070

Trade and other payables����������������������������

499,179
42,000

Other financial liabilities �����������������������������
Total�����������������������������������������������������

¥

–
–

–
–

–
–

–
–

¥

–
–

Derivative financial liabilities7
Derivative financial liabilities
Foreign currency exchange contracts8 �����
Option contracts�������������������������������������
Interest rate contracts �����������������������������
Total�����������������������������������������������������

¥

¥

¥

¥

¥

¥

Notes:
1. The Company does not apply IFRS 16 to leases of intangible assets. As a result, the liabilities related to these transactions have been reclassified from “Lease obligations” to “Long-term borrowings (including current portion),” the financial liabilities in accordance with IFRS 9, andpresented in the above table after the retrospective adjustments.
2. Regarding USD-denominated Senior Notes due 2020 and EUR-denominated Senior Notes due 2020 which were issued on April 23, 2013, the original due date was April 15, 2020; however, the outstanding amount of ¥345,581 million was redeemed on May 21, 2018.
3. Deposits for the banking business payable on demand are included in “Within 1 year.”
4. The amount represents the amounts that would have been distributed to Third-party Investors in accordance with the limited partnership agreement if SoftBank Vision Fund and Delta Fund had been liquidated as of March 31, 2019.
5. The amount represents the contractual distributions or repayments to be made within a year that have been announced from SoftBank Vision Fund and Delta Fund to Third-party Investors as of March 31, 2019.
6. When disposal of investments becomes relatively certain, the portion of third-party interests in SoftBank Vision Fund and Delta Fund which is available for distributions and repayments will be broken down by corresponding maturity dates.
7. 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.
8. Aggregation of redemption schedule and the breakdown by maturity are presented on a discounted cash flow basis for currency swap contracts included in the foreign currency exchange contracts.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

187

As of March 31, 2020

(Millions of yen)
Carrying amount

Aggregation ofredemption scheduleWithin 1 year

¥ 1,529,458
206,000¥ 1,532,008
206,000

5,771,044

1 year to 2 years

2 years to 3 years

3 years to 4 years

4 years to 5 years

More than 5 years¥1,532,008
206,000

¥

¥

¥

¥

5,803,721

1,955,283

1,289,287

906,918

558,319

951,273

142,641

5,428,821

5,470,964

160,000

865,000

580,079

652,199

666,458

2,547,228

196,101458
1,140,326
894,124

201,277458
1,140,326
894,250–
186
378,383
873,099

201,277
146
267,701
6,770–
54
175,577
6,278–
44
96,0912,661–
13
45,9922,331–
15
176,582
3,111

4,584,419
1,585,326
304,180¥21,640,257

4,584,419 2
1,585,326
304,180¥21,722,929

24,691 3
1,560,287
248,010¥6,937,947

–
7,693
9,243
¥2,647,117–
2,779
20,783¥1,692,468

–
158
2,769
¥1,312,241

–
1
3,393
¥1,669,461

4,559,728 4
14,40819,982¥7,463,695¥¥122,393
878
14,42156¥ 137,748

¥

¥

¥

¥

¥

¥

Non-derivative financial liabilities
Interest-bearing debt
Short-term borrowings ���������������������������
Commercial paper�����������������������������������
Long-term borrowings(including current portion)���������������������
Corporate bonds(including current portion)�������������������
Financial liability for variable prepaid
forward contract ���������������������������������
Installment payables �������������������������������
Lease liabilities���������������������������������������������
Deposits for banking business1 �������������������
Third-party interests in SoftBank
Vision Fund and other SBIA-managed
Funds���������������������������������������������������
Trade and other payables����������������������������
Other financial liabilities5�����������������������������
Total�����������������������������������������������������

–
–

–
–

–
–

–
–

¥

–
–

Derivative financial liabilities6
Derivative financial liabilities
Foreign currency exchange contracts7 �����
Option contracts�������������������������������������
Interest rate contracts �����������������������������
Other�������������������������������������������������������
Total�����������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020¥

122,393878
14,015
56
137,342

Table of Contents

¥

2,209
878
6,618
56
9,761

Message from Our CEO¥

Who We Are(2,346)
–
2,961
–
615

¥

Our Path to Continued Growth

18,980–2,440–
21,420¥13,285–
1,205–
14,490¥Management: The Foundation Supporting Our Growth

(947)
–
424
–
(523)

Financial Section¥

91,212–773–
91,985

Corporate Information

188

As of March 31, 2020
(Thousands of U.S. dollars)
Carrying amount

Aggregation ofredemption scheduleWithin 1 year

$ 14,053,643
1,892,860$ 14,077,074
1,892,860

53,028,063

1 year to 2 years

2 years to 3 years

3 years to 4 years

4 years to 5 years

More than 5 years$14,077,074
1,892,860

$

$

$

$

$

53,328,319

17,966,396

11,846,798

8,333,346

5,130,194

8,740,908

1,310,677

49,883,497

50,270,734

1,470,182

7,948,176

5,330,139

5,992,824

6,123,845

23,405,568

1,801,902
4,208
10,478,048
8,215,786

1,849,462
4,208
10,478,048
8,216,944–
1,709
3,476,826
8,022,595

1,849,462
1,342
2,459,809
62,207–496
1,613,314
57,686–404
882,946
24,451–
119422,604
21,419–138
1,622,549
28,58642,124,589
14,566,994
2,795,001$198,844,591

42,124,589 2
14,566,994
2,795,001$199,604,233

226,877 3
14,336,920
2,278,875$63,750,314–
70,68884,931$24,323,413–
25,535
190,968$15,551,484–
1,452
25,443$12,057,714–
9
31,177$15,340,081

41,897,712 4
132,390
183,607$68,581,227

$

$

$

$

$

$

$

$

Non-derivative financial liabilities
Interest-bearing debt
Short-term borrowings ���������������������������
Commercial paper�����������������������������������
Long-term borrowings(including current portion)���������������������
Corporate bonds(including current portion)�������������������
Financial liability for variable prepaid
forward contract ���������������������������������
Installment payables �������������������������������
Lease liabilities���������������������������������������������
Deposits for banking business1 �������������������
Third-party interests in SoftBank
Vision Fund and other SBIA-managed
Funds���������������������������������������������������
Trade and other payables����������������������������
Other financial liabilities5�����������������������������
Total�����������������������������������������������������

–
–

–
–

–
–

–
–

–
–

Derivative financial liabilities6
Derivative financial liabilities
Foreign currency exchange contracts7 �����
Option contracts�������������������������������������
Interest rate contracts �����������������������������
Other�������������������������������������������������������
Total�����������������������������������������������������

$1,124,626
8,068
128,779514
1,261,987$

1,124,626
8,068
132,509514
1,265,717$

20,298
8,068
60,810514
89,690$(21,557)–
27,208–
5,651$

174,401–
22,420–196,821$122,071–
11,072–
133,143$(8,702)–
3,896–(4,806)$

838,115–7,103–
845,218

Notes:
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 SoftBank Vision Fund 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 SoftBank Vision Fund to Third-party Investors as of March 31, 2020.
4. When disposal of investments becomes relatively certain, the portion of third-party interests in SoftBank Vision Fund 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 ($1,333,575 thousand) of provisions for allowance for loan commitment losses related to acquire unsecured notes issued by WeWork and allowance for loss on valuation of ¥89,202 million($819,645 thousand) 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 21. 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.

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 53.
Contingency.”
Average interest rates of the interest-bearing debts and lease liabilities are described in “(1) Component of interest-bearing debt” in “Note 24. Interest-bearing debt” and “Note 19. Leases.”

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

189

(3) Categories of financial instruments
Components of financial instruments (excluding cash and cash equivalents) by category are as follows:
As of March 31, 2019
(Millions of yen)
Financial assets
at FVTPL

Derivatives designatedas hedges

Debt financial assets at
FVTOCI

Equity financial assets
at FVTOCI

Financial assets at
amortized cost

Total

¥

¥

–
1,300

¥2,339,977
117,218¥ 2,339,977
203,476–
24,201
881,556¥3,362,952

7,115,629
924,614
1,185,856¥11,769,552

Financial assets
Current assets
Trade and other receivables�����������������������������������������������������������������

¥–39,044

Other financial assets���������������������������������������������������������������������������
Non-current assets
Investments from SoftBank Vision Fund and other SBIA-managed
funds accounted for using FVTPL�����������������������������������������������������
Investment securities���������������������������������������������������������������������������
Other financial assets���������������������������������������������������������������������������
Total�������������������������������������������������������������������������������������������������

¥

–
–

–
45,914

7,115,629
495,901
295,873¥7,946,447

–
–
8,016
¥8,016–302,938–¥348,852–
101,574
411¥103,285

Financial liabilities
at FVTPL

Derivatives designatedas hedges

Financial liabilities
at amortized cost

Total

¥

–
–

¥ 3,480,960
745,943¥ 3,480,960
745,943––
767,714–––––

29,677
1,909,608–
10,84929,677
1,909,608
767,714
10,849––12,204,146

12,204,146–
11,511–¥779,225–
119,034–¥119,034

4,107,288–
57,115¥22,545,586

4,107,288
130,545
57,115¥23,443,845

Financial liabilities
Current liabilities
Interest-bearing debt���������������������������������������������������������������������������
Deposits for banking business�������������������������������������������������������������
Third-party interests in SoftBank Vision Fund and other SBIA-managed
funds�����������������������������������������������������������������������������������������������
Trade and other payables �������������������������������������������������������������������
Derivative financial liabilities�����������������������������������������������������������������
Other financial liabilities�����������������������������������������������������������������������

¥––Non-current liabilities
Interest-bearing debt���������������������������������������������������������������������������
Third-party interests in SoftBank Vision Fund and other SBIA-managed
funds�����������������������������������������������������������������������������������������������
Derivative financial liabilities�����������������������������������������������������������������
Other financial liabilities�����������������������������������������������������������������������
Total�������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

190

As of March 31, 2020
(Millions of yen)
Financial assets
at FVTPL

Derivatives designatedas hedges

Debt financial assets at
FVTOCI

Equity financial assets
at FVTOCI

Financial assets at
amortized cost

Total

¥

¥

¥

–
1,600

¥2,072,326
67,957¥ 2,072,326
313,487

6,892,232
1,211,511
1,159,972¥11,649,528

Financial assets
Current assets
Trade and other receivables�����������������������������������������������������������������
Other financial assets���������������������������������������������������������������������������
Non-current assets
Investments from SoftBank Vision Fund and other SBIA-managed
funds accounted for using FVTPL�����������������������������������������������������
Investment securities���������������������������������������������������������������������������
Other financial assets���������������������������������������������������������������������������
Total�������������������������������������������������������������������������������������������������

¥–197,194–––
46,736

6,892,232
809,233
107,044¥8,005,703––
29,422¥29,422–308,345–¥355,081–
70,607
370¥72,577–
23,326
1,023,136¥3,186,745

Financial liabilities
at FVTPL

Derivatives designatedas hedges

Financial liabilities
at amortized cost

Lending commitments
and financial guarantee
contracts

Total

¥

–
–
–

¥ 3,845,153
378,383
873,087

–
–
9,266
–

–
–
1
–

–
–
–
14,723
16,434¥40,423

Financial liabilities
Current liabilities
Interest-bearing debt���������������������������������������������������������������������������
Lease liabilities�������������������������������������������������������������������������������������
Deposits for banking business�������������������������������������������������������������
Third-party interests in SoftBank Vision Fund and other SBIA-managed
funds�����������������������������������������������������������������������������������������������
Trade and other payables �������������������������������������������������������������������
Derivative financial liabilities�����������������������������������������������������������������
Other financial liabilities�����������������������������������������������������������������������

¥

–
–
–

¥

–
–
–

¥ 3,845,153
378,383
873,087

24,691
1,585,326
–
6,122

–
–
–
241,888

24,691
1,585,326
9,267
248,010––

9,286,729
761,943––

9,286,729
761,943–
113,352–¥113,353

4,559,728–
57,360¥21,378,522

–
–
3,413
¥245,301

4,559,728
128,075
77,207¥21,777,599

Non-current liabilities
Interest-bearing debt���������������������������������������������������������������������������
Lease liabilities�������������������������������������������������������������������������������������
Third-party interests in SoftBank Vision Fund and other SBIA-managed
funds�����������������������������������������������������������������������������������������������
Derivative financial liabilities�����������������������������������������������������������������
Other financial liabilities�����������������������������������������������������������������������
Total�������������������������������������������������������������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

191

As of March 31, 2020
(Thousands of U.S. dollars)
Financial assets
at FVTPL

Derivatives designatedas hedges–
1,811,945$

Debt financial assets at
FVTOCI

Equity financial assets
at FVTOCI

Financial assets at
amortized cost

Total

–
14,702$19,041,863
624,433$ 19,041,863
2,880,520

63,330,258
11,132,142
10,658,568$107,043,351

Financial assets
Current assets
Trade and other receivables�����������������������������������������������������������������
Other financial assets���������������������������������������������������������������������������
Non-current assets
Investments from SoftBank Vision Fund and other SBIA-managed
funds accounted for using FVTPL�����������������������������������������������������
Investment securities���������������������������������������������������������������������������
Other financial assets���������������������������������������������������������������������������
Total�������������������������������������������������������������������������������������������������

$

–
–

$

–
429,440$

63,330,258
7,435,753
983,589$73,561,545––
270,348$270,348–
2,833,272–$3,262,712–
648,783
3,400$666,885–
214,334
9,401,231$29,281,861

Financial liabilities
at FVTPL

Derivatives designatedas hedges

Financial liabilities
at amortized cost

Lending commitments
and financial guarantee
contracts

Total

Financial liabilities
Current liabilities
Interest-bearing debt���������������������������������������������������������������������������
Lease liabilities�������������������������������������������������������������������������������������
Deposits for banking business�������������������������������������������������������������
Third-party interests in SoftBank Vision Fund and other SBIA-managed
funds�����������������������������������������������������������������������������������������������
Trade and other payables �������������������������������������������������������������������
Derivative financial liabilities�����������������������������������������������������������������
Other financial liabilities�����������������������������������������������������������������������

$

–
–
–

$

–
–
–

$ 35,331,738
3,476,826
8,022,485––
85,142
–

–
–
9
–

–
–
–
135,283
151,007$371,432$–––$ 35,331,738
3,476,826
8,022,485

226,877
14,566,994–
56,253–––
2,222,622

226,877
14,566,994
85,151
2,278,875––

85,332,436
7,001,222––

85,332,436
7,001,222–
1,041,552–$1,041,561

41,897,712–
527,060$196,439,603––
31,361$2,253,983

41,897,712
1,176,835
709,428$200,106,579

Non-current liabilities
Interest-bearing debt���������������������������������������������������������������������������
Lease liabilities�������������������������������������������������������������������������������������
Third-party interests in SoftBank Vision Fund and other SBIA-managed
funds�����������������������������������������������������������������������������������������������
Derivative financial liabilities�����������������������������������������������������������������
Other financial liabilities�����������������������������������������������������������������������
Total�������������������������������������������������������������������������������������������������

The Company generally classifies financial instruments as “financial assets at FVTPL.” Certain equity instruments are used as business investments to generate business synergies. As a result, for such investments,
the Company 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 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

192

Major components and fair values of the equity financial assets at FVTOCI are as follows.
As of March 31, 2019
Names

GungHo Online Entertainment, Inc. ����������������������������������������������
RPA Holdings, Inc.��������������������������������������������������������������������������
Guidewire Software Inc������������������������������������������������������������������
GameWith, Inc. ����������������������������������������������������������������������������
istyle Inc..��������������������������������������������������������������������������������������
Other��������������������������������������������������������������������������������������������
Total����������������������������������������������������������������������������������������������

(Millions of yen)

Fair value on the date of sale ����������������������

Fair value

Accumulated gains related to the sales��������

¥ 10,011
4,308
2,600
2,173
1,695
82,498¥103,285

Names

Retty Inc..��������������������������������������������������������������������������������������
HOPU-ARM Innovation Fund, L.P..��������������������������������������������������
COCON Inc.����������������������������������������������������������������������������������
OpenStreet Co., Ltd ����������������������������������������������������������������������
Zimperium, Inc������������������������������������������������������������������������������
Other��������������������������������������������������������������������������������������������
Total����������������������������������������������������������������������������������������������

(Thousands of
U.S. dollars)

Fair value

Fair value¥ 3,672
2,804
2,129
1,973
1,859
60,140¥72,577$ 33,741
25,765
19,563
18,12917,082552,604$666,884

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 2020

(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥19,031
3,005¥26,3632,297$242,240
21,106

When financial assets are derecognized or there is a significant or prolonged decline in fair value
below the cost, cumulative gains and losses recognized in other comprehensive income are directlytransferred to retained earnings. For the fiscal year ended March 31, 2020, ¥1,339 million ($12,304
thousand) (For the fiscal year ended March 31, 2019: ¥275 million) was transferred from “Other
comprehensive income” to “Retained earnings.”

As of March 31, 2020
(Millions of yen)

(Millions of yen)

Table of Contents

31. 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
the lowest level of input that is significant to the entire fair value measurement.
Transfers between levels of the fair value hierarchy are recognized as if they have occurred at the
beginning of each quarter.
There were no transfers between Level 1 and Level 2 during the fiscal years ended March 31, 2019and 2020.

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The table below presents financial instruments measured at fair value on a recurring basis by levelwithin the fair value hierarchy.

As of March 31, 2020
(Millions of yen)
Level 1

As of March 31, 2019
(Millions of yen)
Level 1

Financial assets
Investments from SoftBank Vision
Fund and other SBIA-managed
funds accounted for using FVTPL����
Equity securities ������������������������������
Bonds and loans������������������������������
Derivative financial assets
Foreign currency exchange
contracts ����������������������������������
Option contracts��������������������������
Interest rate contracts ������������������
Other ����������������������������������������������
Total������������������������������������������

Level 2

Level 3

Total

Financial assets
Investments from SoftBank Vision
Fund and other SBIA-managed
funds accounted for using FVTPL����
Equity securities��������������������������������
Bonds and loans������������������������������

¥307,851
100,684
2,703

¥

–
–
288,015¥6,807,778
321,308
133,144¥7,115,629
421,992
423,862

–
–
–
6,882
¥418,120

28,927
3,836
1,576
10,538¥332,892–
202–
393,156¥7,655,588

28,927
4,038
1,576
410,576¥8,406,600

Derivative financial assets ����������������
Foreign currency exchange
contracts ����������������������������������
Option contracts��������������������������
Interest rate contracts ������������������
Other��������������������������������������������
Other ����������������������������������������������
Total������������������������������������������

Option contracts��������������������������
Interest rate contracts ������������������
Total������������������������������������������

SoftBank Group Corp. ANNUAL REPORT 2020

¥

–
–
–
–

¥125,627
764,2368,396¥898,259

¥

¥

–
–
–
–

¥ 125,627
764,236
8,396¥ 898,259

Table of Contents

Total¥1,104,339
82,753
5,301

¥

–
–
247,181¥5,787,893
634,157
56,824¥6,892,232
716,910309,306––––
168,070¥1,360,463

63,175
7,812
378
63
6,290
¥324,899–
17,937––
280,610¥6,777,421

63,17525,749378
63454,970¥8,462,783

Derivative financial liabilities
Foreign currency exchange
contracts ����������������������������������

¥¥122,393
657
14,01556–¥137,121

¥

–
221
–
–
16,434
16,655¥ 122,393
878
14,01556
16,434¥ 153,776

Financial Section

Corporate Information

Option contracts��������������������������

¥Level 3Financial liabilities

Financial liabilities
Derivative financial liabilities
Foreign currency exchange
contracts ����������������������������������

Level 2Message from Our CEO

Interest rate contracts ������������������
Other��������������������������������������������
Other ����������������������������������������������
Total������������������������������������������

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¥

–
–
–
–
–
–

Management: The Foundation Supporting Our Growth¥194

(Thousands of U.S. dollars)
Level 1

Financial assets
Investments from SoftBank Vision
Fund and other SBIA-managed
funds accounted for using FVTPL����

$10,147,377
760,388
Bonds and loans������������������������������
48,709Equity securities��������������������������������

Derivative financial assets
Foreign currency exchange
contracts ����������������������������������
Option contracts��������������������������
Interest rate contracts ������������������
Other��������������������������������������������
Other ����������������������������������������������
Total������������������������������������������

––––1,544,335$12,500,809

Level 2

Level 3

Total

$

–
–
2,271,258$53,182,881
5,827,042
522,135$63,330,258
6,587,430
2,842,102

580,493
71,782
3,473
579
57,796$2,985,381–
164,816––
2,578,426$62,275,300

580,493236,598
3,473
579
4,180,557$77,761,490

figures from the financial statements of the subject companies and valuation multiple ofcomparable companies, such as Enterprise Value (EV)/Revenue and EV/EBITDA. The cost
approach is a valuation method using net assets on balance sheet of subject companies forcalculation of stock value. The income approach is used when reliable cash flow projections areavailable. 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 enterprise value which is calculated by the above method is allocated to shareholder’svalue of each class of shares depending on the capital structures of the investments. For the
allocation, an option pricing model, which values each individual security in the capital structure
based on its unique rights and preferences, and a waterfall approach, which allocates value
based on the seniority of each security in the event of a liquidation are mainly used.
		 The financial instruments are classified as Level 2 if all significant inputs, such as quoted
prices and discount rates used for the measurement are observable, and they are classified as
Level 3 when they are measured using significant unobservable inputs.

Financial liabilities
Derivative financial liabilities
Foreign currency exchange
contracts ���������������������������������� $Option contracts��������������������������
Interest rate contracts ������������������
Other��������������������������������������������
Other ����������������������������������������������
Total������������������������������������������ $

–
–
–
–
–
–

$1,124,626
6,036
128,779515–$1,259,956

$

$

–
2,031
–
–
151,006
153,037$ 1,124,626
8,067
128,779515
151,006$ 1,412,993

The major valuation techniques for financial instruments measured at fair value on a recurring basis are
as follows:a. Investments from SoftBank Vision Fund and other SBIA-managed funds accounted for using
FVTPL, Equity securities, and bonds, and loans
		 Investments from SoftBank Vision Fund and other SBIA-managed funds accounted for using
FVTPL, Equity securities, bonds, and loans are measured using quoted prices in active markets for
identical assets or liabilities if such prices are available, and are classified as Level 1.
		 If such prices are unavailable, and if prices of recent arm’s-length transactions or equity
financing are available, they are measured using recent transaction prices adjusting for
performance of the market and company performance.
		 In the absence of a recent transaction, market approach, cost approach, or income approach
is applied for the enterprise valuation. The market approach is used to the extent comparable
guidelines for public companies are available. The market approach is a valuation method using

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Message from Our CEO

b. Derivative financial assets and derivative financial liabilities
The fair value of derivative financial instruments is measured using valuation techniques
including a discounted cash flows model, or using quoted prices in inactive markets. Derivative
financial instruments are classified as Level 2 if all significant inputs, such as foreign currency
exchange rates and discount rates used for the measurement, are observable; and they areclassified as Level 3 when they are measured using significant unobservable inputs.
(2) Fair value measurements of financial instruments that are categorized as Level 3
a. Valuation techniques and inputs
The following table shows information about the valuation techniques used and the significant
unobservable inputs used in the Level 3 fair value measurements.
(a) Investments from SoftBank Vision Fund and other SBIA-managed funds accounted for using
FVTPL
For Level 3 fair value measurements of investments from SoftBank Vision Fund and other
SBIA-managed funds accounted for using FVTPL, the Company mainly uses price of the recent
transactions method and the discounted cash flow method. The following table shows the fairvalue of the investments measured by each valuation techniques. When a combination ofmultiple valuation techniques is applied, aggregated amounts of fair value are presented foreach combination of valuation techniques.

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(Millions of yen)(Thousands of
U.S. dollars)
Fair value

Valuation techniques

Discounted cash flow������������������������
Recent transactions����������������������������
Discounted cash flow / Market
comparable companies��������������������
Recent transactions / Discounted cash
flow ������������������������������������������������
Discounted cash flow / Net asset
value������������������������������������������������
Recent transactions / Discounted cash
flow / Other1������������������������������������
Other������������������������������������������������
Total����������������������������������������������

As of March 31,
2019

As of March 31,
2020

As of March 31,
2020¥ 277,615
3,525,146¥2,163,880
1,567,914$19,883,120
14,407,002

97,116

1,090,088

10,016,429

1,644,479

766,600

7,044,014–

134,125

1,232,427

1,263,422–¥6,807,778–
65,286¥5,787,893–
599,890$53,182,882

Ranges of unobservable inputs
Valuation techniques

Equity securities
Market comparable companies

Discounted cash flow

Derivative financial assets
Discounted cash flow

Other
Discounted cash flow

Notes:
1. IPO scenario was considered.

The valuation techniques and the inputs are as follows.

As of March 31,
2019

As of March 31,
2020

Revenue multiple
Gross merchandise value
multiple

X1.8 – X5.0

X1.5 – X8.5

–

X0.8

Cost of capital
EBITDA ratio3
Permanent growth rate

16.0%
–
4.4%

15.0% – 40.0%
X6.0 – X13.2–

Cost of capital
EBITDA ratio3

–
–

40.0%
X8.0

Cost of capital
EBITDA ratio3

–
–

40.0%
X8.0

Unobservable inputs

3. EBITDA ratio of market comparable companies is used for recurring measurement of fair value.
Ranges of unobservable inputs

Valuation techniques

Discounted cash flow

Unobservable inputs

Cost of capital
EBITDA ratio2
Revenue multiple2
Gross merchandise value
multiple2
Price to earnings ratio2
Permanent growth rate

Market comparable companies EBITDA ratio
Revenue multiple

As of March 31,
2019

As of March 31,
2020

11.0% – 50.0%
X3.7 – X22.0
X2.0 – X15.0

11.0% – 85.7%
X8.0 – X25.6
X1.5 – X11.0––
1.4% – 3.1%

X0.6 – X1.5
X9.0 – X30.0
0.0% – 3.2%–
X1.5

X10.5 – X21.0
X0.4 – X5.5

2. EBITDA ratio, revenue multiple, gross merchandise value multiple or price to earnings ratio of market comparable companies
are used for recurring measurement of fair value.

(b) Financial assets including “Other financial assets” and “Investment securities”
For Level 3 fair value measurements of investments, the price of recent investments is mainly
adopted considering the rights and preferential rights of shares. The following table shows
information about the other valuation techniques used and the significant unobservable inputs
used in the fair value measurement.

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b. Sensitivity Analysis
Of the above unobservable inputs, EBITDA ratio, revenue multiples, gross profit margin, price toearnings ratio, and permanent growth rate have a positive correlation with the fair value ofequity securities, whereas the cost of capital and the cost of debt have a negative correlation
with the fair value of equity securities.
c. Valuation processes(a) Valuation processes at SoftBank Vision Fund and Delta FundThe valuations are prepared by the valuation team of SBIA in accordance with the SBIA Global
Valuation Policy and International Private Equity and Venture Capital Valuation Guidelines on aquarterly basis, using the most appropriate valuation techniques and inputs that reflect thenature, characteristics and risks of the financial instruments that are subject to fair value
measurement. The valuation team of SBIA may engage external specialists with a high level ofknowledge and experience as needed, in determining the fair value of certain complex financial
instruments. The valuations are then reviewed by the Valuation and Financial Risk Committee(“VFRC”), established as a committee of SBIA, which reports the result of their review to SBIA’s
Board of Directors on a quarterly basis. The VFRC reviews the reasonableness of significant
inputs and assumptions as well as the valuation results. In addition, the VFRC considers theappropriateness of the choice of valuation methodology.

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(b) Valuation processes at entities other than SoftBank Vision Fund and Delta Fund
Fair value is measured by the Company’s personnel in the finance, treasury and accounting
departments based on internal guidelines on a quarterly basis, using the most appropriate
valuation techniques and inputs that reflect the nature, characteristics and risks of the financial
instruments subject to fair value. For the fair value measurements of the financial instrumentsthat require both high level of knowledge and experiences, and that has a significance inamount, the Company may engage external specialists. Thereafter, management responsible forthe valuation processes approves the results of fair value measurements by the Company’s
personnel and the valuation by the external specialists performed at the end of each quarter
after reviewing the analysis of fair value changes and other content.

For the fiscal year ended March 31, 2020
(Millions of yen)

Financial assets

Investments from
SoftBank Vision
Fund and other
SBIA-managed
funds accounted
for using FVTPL

Equitysecurities

Bonds andloans

As of April 1, 2019������������

¥ 6,807,778¥ 321,308¥133,144(1,510,902)(113,201)
1,814,220(25,585)–(439,644)(4,001)
443,459(16,917)–

104,500(1,288,917)¥ 393,156(26,130)(3,403)
1,110(771)
20,473(71,925)
1–––(201,497)(6,383)390,031(25,832)–(104,500)(11,556)

–
–

–
–

–
–

–
–
As of March 31, 2020�������� ¥ 5,787,893

352,049
93,959¥ 634,157(94,358)
26,759¥ 56,824–
89,659¥ 17,937(257,691)(11,174)¥ 280,610

Gains or losses recognized in net
income on financial instruments
held at March 31, 2020�������������� ¥(1,413,025)¥(455,201)¥ (14,783)¥ (76,259)¥(167,585)

Gains or losses
Net income��������������������
Other comprehensive income��Sales����������������������������������

For the fiscal year ended March 31, 2019
(Millions of yen)
Investments from
SoftBank Vision
Fund and other
SBIA-managed
funds accounted
for using FVTPL

Equitysecurities

As of April 1, 2018������������ ¥2,108,981¥2,206,134

Financial assets¥

Derivative
financial assets

Other

3,942

¥5,474¥ 94,302

Gains or losses

1,367,746
66,0201,576,440(421,921)(37,530)
94,425254,231(45,379)(6,347)
1,665
21,742
(940)

115
(54)
–
–

5,522
2,063
278,955(11,432)

2,201,137–(2,178,879)–(16,925)
186,579(5,333)––––(123,455)

–

–

–

–
135,477(90,625)(3,904)
Other��������������������������������
–20,188
As of March 31, 2019�������� ¥6,807,778 ¥ 321,308––(56,572)¥133,144

–
–
–
¥ 202

–
–
23,746¥393,156

Gains or losses recognized in net
income on financial instruments heldat March 31, 2019���������������������������� ¥1,213,633¥ (7,490)

¥ 115

¥

Net income��������������������
Other comprehensive income ��
Purchases��������������������������
Sales����������������������������������
Investments transferred or agreed to
be transferred from the Company to
SoftBank Vision Fund ����������������
Loans��������������������������������
Transfer relating to applying theuse of the equity method��������
Transfer relating to discontinuing theuse of the equity method������������
Transfers to Level 1 due to listing������

SoftBank Group Corp. ANNUAL REPORT 2020¥

15,175

Table of Contents

Loans��������������������������������
Investments transferred or agreed to
be transferred from the Company to
SoftBank Vision Fund ����������������
Transfers to Level 1 due to listingConversions into equity
securities��������������������������
Other��������������������������������

Bonds and
loans

¥

Other

202

Purchases��������������������������

d. Roll forward of financial instruments categorized as Level 3
Roll forward of financial instruments categorized as Level 3 is as follows:

Derivative
financial assets(Millions of yen)
Financial liabilities

As of April 1, 2019������������
Gains or losses
Net income��������������������
Other comprehensive income��
Other��������������������������������
As of March 31, 2020��������
Losses recognized in net income
on financial instruments held at
March 31, 2020��������������������������

Derivative financial
liabilities

Other

¥ –

¥

–

222
(1)
–
221

99
–
16,335
16,434

¥222

¥

99

6,296

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(Thousands of U.S. dollars)

Financial assets

Investments from
SoftBank Vision
Fund and other
SBIA-managed
funds accounted
for using FVTPLAs of April 1, 2019������������ $62,554,241
Gains or losses
Net income�������������������� (13,883,139)
Other comprehensive income��(1,040,164)
Purchases��������������������������
16,670,220
Sales����������������������������������
(235,091)
Loans��������������������������������
–Investments transferred or agreed to
be transferred from the Company to960,213
SoftBank Vision Fund ����������������
Transfers to Level 1 due to listing(11,843,399)
Conversions into equity–
securities��������������������������
Other��������������������������������
–As of March 31, 2020�������� $53,182,881
Gains or losses recognized in net
income on financial instruments
held at March 31, 2020�������������� $(12,983,782)

Equitysecurities

Bonds andloans

$ 2,952,384$1,223,413

Derivative
financial assets

$

1,856

Other

$ 3,612,570(4,039,732)(36,764)
4,074,786(155,444)–(240,099)(31,269)
10,199(7,084)
188,119$(660,893)
9–––(1,851,484)(58,651)
3,583,856(237,361)–(960,213)(106,184)

–
–

–
–

–
–

3,234,853
863,356$ 5,827,042(867,022)
245,878$ 522,135–
823,844$ 164,816(2,367,831)(102,673)$ 2,578,426$(4,182,679)$ (135,836)$(700,717)$(1,539,879)(Thousands of U.S. dollars)
Financial liabilities

As of April 1, 2019����������
Gains or losses
Net income������������������
Other comprehensive income
Other������������������������������
As of March 31, 2020������
Losses recognized in net income
on financial instruments held at
March 31, 2020�����������������������

Derivative financial
liabilities

$

–

2,040
(9)
–
$2,031translating foreign operations” in the consolidated statement of comprehensive income.
(3) Carrying amounts and fair values of financial instruments
The table below presents carrying amounts and fair values of financial instruments.
As of March 31, 2019
(Millions of yen)
Fair value
Carrying amount

Level 1

Level 2

Level 3

Total

Interest bearing debt
(Non-current)Long-term
borrowings ������� ¥ 5,102,091
Corporate bonds�
6,538,785
Lease obligations�
557,955
Installment
payables �����������
5,315
Total���������������� ¥12,204,146¥1,225,008
2,431,566–¥3,137,252
4,334,799
164¥ 779,132–
565,647¥ 5,141,392
6,766,365
565,811–¥3,656,574–¥7,472,215

5,513¥1,350,292

5,513¥12,479,081

The Company does not apply IFRS 16 to leases of intangible assets. Accordingly, liabilities associatedwith the aforementioned transactions are accounted for as financial liabilities under IFRS 9 and areincluded in “Long-term borrowings.”
As of March 31, 2020
(Millions of yen)

Other

$

–

Fair value

Interest bearing debt
(Non-current)Long-term
borrowings���������

910–
150,096$151,006

Corporate bonds �
Total �����������������

$2,040$Carrying amount

Level 1

Level 2

Level 3Total

¥3,821,473
5,268,883¥9,090,356

¥–
–
¥–

¥3,095,567
4,888,602¥7,984,169¥707,064–¥707,064¥3,802,631
4,888,602¥8,691,233

910(Thousands of U.S. dollars)
Fair value

Gains or losses recognized in net income are included in “Other operating loss,” “Operating
income from SoftBank Vision Fund and other SBIA-managed funds,” “Derivative gain (loss),”and “Gain (loss) from financial instruments at FVTPL” in the consolidated statement of income.
Gains or losses recognized in other comprehensive income, net of tax, are included in “Equity
financial assets at FVTOCI,” “Debt financial assets at FVTOCI” and “Exchange differences on

Interest bearing debt
(Non-current)Long-term
borrowings ���������
Corporate bonds �
Total �����������������

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

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Who We Are

Carrying amount

Level 1

Level 2

Level 3

Total

$35,114,151
48,413,884$83,528,035

$–
–
$–

$28,444,059
44,919,618$73,363,677$6,496,959–$6,496,959$34,941,018
44,919,618$79,860,636

Financial Section

Corporate Information

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth198

Financial instruments whose carrying amounts are reasonably similar to fair values are not includedin the table above. Financial instruments that are measured at fair value on a recurring basis are also
excluded because their fair values are the same as their carrying amounts.
The major valuation techniques for fair value measurements of the above financial liabilities are as
follows:
a. Long-term borrowings
Fair values of the non-current portion of long-term borrowings are measured using quoted
prices in active markets if such prices are available, and the measurement is categorized as Level
1. Where 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. Fairvalues of the non-current portion of long-term borrowings are measured based on the
discounted cash flow method using an interest rate including the credit spread that would be
used for a borrowing with the same terms and maturity. Those borrowings are categorized as
Level 3.
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. Lease obligations
Fair values of the non-current portion of lease obligations are mainly measured based on the
discounted cash flow method using an interest rate considering the period until payment andcredit risk, and are categorized as Level 3. Also, the fair value amount of the non-current portionof lease obligations which are categorized as Level 2 is insignificant.
d. Installment payables
Fair values of the non-current portion of installment payables are measured based on the
discounted cash flow method using an interest rate adjusted for the remaining repayment period
and credit risks, and the measurement are categorized as Level 3.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

32. 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 acquired cash
and a subordinate interest in the transferred receivables for financing purposes. The receivables sold are
not derecognized because in each transaction, the Company retains a subordinate interest and,
therefore, substantially retains all the risks and rewards of ownership of the transferred assets. Cashreceived from transferring the receivables are included in “Interest-bearing debt” under current
liabilities and non-current liabilities.
The following table presents the carrying amount of financial assets and related liabilities that aretransferred but do not meet the derecognition criteria, as well as the fair value where related liabilities
have recourse only to the transferred assets:

Carrying amount of transferred assets�����������
Carrying amount of related liabilities�������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥1,070,696(949,374)¥ 794,514(706,091)$ 7,300,505(6,488,018)(Fair value of financial assets and financial liabilities where related liabilities have recourse only to thetransferred assets)
Fair value of transferred assets ���������������������
Fair value of related liabilities �����������������������
Net position ���������������������������������������������

¥1,070,696(948,688)¥ 122,008¥ 794,514(706,015)¥ 88,499$ 7,300,505(6,487,319)$ 813,186

The difference between transferred assets and related liabilities is the subordinate interest which theCompany retains on securitization.
In addition, the Company enters into securitization transactions involving a part 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 derecognized criteria. Cash received from transferring the receivables are included in“Interest-bearing debt” under current liabilities.
Carrying amount of the receivables transferred and related liability in financial assets transferred by
the method not to meet the derecognized criteria as of March 31, 2020 is ¥1,361 million ($12,506
thousand) and ¥60,000 million ($551,319 thousand,) respectively. The liability is settled without
significant delay when a debtor pay for receivables transferred, but the Company cannot use thereceivables transferred until the settlement of the liability or payment from the debtor are completed.
The discrepancy between receivables transferred and related liabilities are mainly due to the amount ofloan collection in card business.

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Financial Section

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199

33. Offsetting financial assets and liabilities
The following table presents the amount of financial assets and liabilities offset in the consolidated statement of financial position, as well as the amount of financial assets and liabilities that are under enforceable
master netting agreements or similar contracts, but are not offset as they do not meet certain or all criteria of offsetting.
Rights to offset based on the enforceable master netting agreements or similar contracts are enforceable only in certain events such as bankruptcy or obligation default of the counterparty.
As of March 31, 2019
(Millions of yen)

Financial assets

Trade and other receivables��������������������������������������������������������������������������������������������
Other 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 offinancial position¥169,649
8,338¥177,987¥(91,150)(462)¥(91,612)¥78,499
7,876¥86,375

Gross amount offinancial liabilities

Gross amount of financial
assets offset against
financial liabilities

Net amount of financial
liabilities presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount¥297,005
137,000
294¥434,299¥(91,150)(462)–¥(91,612)¥205,855
136,538
294¥342,687¥(32,986)(7,272)(125)¥(40,383)¥172,869
129,266
169¥302,304

Gross amount offinancial assets

Gross amount of financial
liabilities offset against
financial assets

Net amount of financial
assets presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount¥202,518
30,855¥233,373¥(90,066)–¥(90,066)¥112,452
30,855¥143,307¥(17,110)(30,660)¥(47,770)¥95,342
195¥95,537

Gross amount offinancial liabilities

Gross amount of financial
assets offset against
financial liabilities

Net amount of financial
liabilities presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount¥294,143
121,707713¥416,563¥(90,066)––¥(90,066)¥204,077
121,707713¥326,497¥(16,552)(30,691)(527)¥(47,770)¥187,525
91,016
186¥278,727

Amount not offset in the
consolidated statement offinancial position

Net amount¥(33,156)(7,227)¥(40,383)¥45,343649¥45,992(Millions of yen)

Financial liabilities

Trade and other payables ����������������������������������������������������������������������������������������������
Derivative financial liabilities������������������������������������������������������������������������������������������
Other financial liabilities ������������������������������������������������������������������������������������������������
Total��������������������������������������������������������������������������������������������������������������������������

As of March 31, 2020
(Millions of yen)

Financial assets

Trade and other receivables��������������������������������������������������������������������������������������������
Other financial assets ����������������������������������������������������������������������������������������������������
Total��������������������������������������������������������������������������������������������������������������������������

(Millions of yen)

Financial liabilities

Trade and other payables ����������������������������������������������������������������������������������������������
Derivative financial liabilities������������������������������������������������������������������������������������������
Other financial liabilities ������������������������������������������������������������������������������������������������
Total��������������������������������������������������������������������������������������������������������������������������

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Financial Section

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200

(Thousands of U.S. dollars)

Gross amount offinancial assets

Gross amount of financial
liabilities offset against
financial assets

Net amount of financial
assets presented in the
consolidated statement offinancial position$1,860,865
283,516$2,144,381$(827,584)–$(827,584)$1,033,281
283,516$1,316,797

Gross amount offinancial liabilities

Gross amount of financial
assets offset against
financial liabilities

Net amount of financial
liabilities presented in the
consolidated statement offinancial position

Amount not offset in the
consolidated statement offinancial position

Net amount$2,702,775
1,118,322
6,552$3,827,649$(827,584)––$(827,584)$1,875,191
1,118,322
6,552$3,000,065$(152,090)(282,009)(4,842)$(438,941)$1,723,101
836,313
1,710$2,561,124

Financial assets

Trade and other receivables��������������������������������������������������������������������������������������������
Other financial assets ����������������������������������������������������������������������������������������������������
Total��������������������������������������������������������������������������������������������������������������������������

Amount not offset in the
consolidated statement offinancial position

Net amount$(157,217)(281,724)$(438,941)$876,064
1,792$877,856(Thousands of U.S. dollars)

Financial liabilities

Trade and other payables ����������������������������������������������������������������������������������������������
Derivative financial liabilities������������������������������������������������������������������������������������������
Other financial liabilities ������������������������������������������������������������������������������������������������
Total��������������������������������������������������������������������������������������������������������������������������

34. Foreign currency exchange rates
Exchange rates of the major currencies used for translating the financial statements of foreign
operations are as follows:

For the fiscal year ended March 31, 2020
(Yen)(1) Rate at the end of the period(Yen)

U.S. dollars������������������������������������������������������������������������������������
British pound ��������������������������������������������������������������������������������
Chinese yuan ��������������������������������������������������������������������������������As ofMarch 31, 2019

As ofMarch 31, 2020

¥110.99¥144.98¥ 16.47¥108.83¥133.32¥ 15.31(2) Average rate for the quarter
For the fiscal year ended March 31, 2019
(Yen)

U.S. dollars������������������
British pound ��������������
Chinese yuan ��������������

Three-month
period ended
June 30, 2018

Three-month
period ended
September 30, 2018

Three-month
period ended
December 31, 2018

Three-month
period ended
March 31, 2019¥108.71¥147.54¥ 16.97¥111.55¥145.84¥ 16.40¥112.83¥144.48¥ 16.31¥110.46¥143.99¥ 16.37

U.S. dollars������������������
British pound ��������������
Chinese yuan ��������������

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¥140.88¥ 16.13¥107.70¥132.73¥ 15.37¥108.98¥139.55¥ 15.46¥109.22¥140.20¥ 15.56(3) Foreign exchange sensitivity analysis for exchange differences on translating foreign
operations
The table below presents the effect of a 1% appreciation of the Japanese yen against the U.S. dollar,
British pound and Chinese yuan, which are the main foreign currencies of the Company, regarding thetranslation of assets, liabilities, and interests in net assets of foreign operations into the presentation
currency, assuming that all other factors are constant.
Impact of exchange differences on translating foreign operations (decrease in equity)

U.S. dollar�����������������������������������������������������
British pound �����������������������������������������������
Chinese yuan �����������������������������������������������
SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued Growth(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(38,583)(36,275)(20,625)¥(64,180)(33,010)(28,609)$(589,727)(303,317)(262,878)

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

201

35. Equity(1) Common stocka. Shares authorized
The number of shares authorized to be issued is as follows:(Thousands of shares)

Ordinary shares3 ����������������������������������������������������������������As ofMarch 31, 2019

As ofMarch 31, 2020

3,600,000

7,200,000

b. Shares issued
Changes in the number of shares issued are as follows:(Thousands of shares)

Balance at the beginning of the year����������������������������������
Increase during the year3����������������������������������������������������
Decrease during the year4��������������������������������������������������
Balance at the end of the year ������������������������������������������

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

1,100,660––
1,100,660

1,100,660
1,044,907(55,753)
2,089,814(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, 2019a. In August, 2018, SoftBank Corp. acquired Z Holdings Corporation shares mainly from Altaba Inc.
for ¥221.0 billion (ownership percentage 10.78%). In addition, Z Holdings Corporation acquired
its own shares from SoftBank Group Japan Corporation, a wholly-owned subsidiary of theCompany, for ¥220.0 billion (ownership percentage 10.73%). As a result of the transaction, theownership percentage in Z Holdings Corporation by the Company changed from 42.95% to48.17%. Along with the transaction, ¥56,632 million was deducted from “Capital surplus” as“Changes in interests in subsidiaries.”b. On December 19, 2018, a portion of SoftBank Corp. shares (ownership percentage 33.50%)
held by SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company, wasdisposed of. As a result, the ownership percentage in SoftBank Corp. by the Company haschanged from 99.99% to 66.49%.
Associated with this transaction, ¥1,221,363 million, the amount equivalent to the gain on thedisposal of interests in subsidiaries, was recorded in “Changes in interests in subsidiaries” under“Capital surplus.”

Notes:
1. Shares issued by the Company is common stock with no par value.
2. Shares 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. For 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.

For the fiscal year ended March 31, 2020
On June 27, 2019, Z Holdings Corporation issued 1,511,478,050 new shares for ¥456.5 billion($4,194,615 thousand) 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 common shares of Z Holdings Corporation, held by its wholly-owned subsidiary SoftBank
Group Japan Corporation. As a result, 1,792,819,200 of these shares (equivalent to ¥514.5 billion($4,727,557 thousand)) 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 ($840,127 thousand) was increased in “Changes
in interests in subsidiary” under “Capital surplus.”

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(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 theCompany has the option to defer interest payments, the notes have no maturity date, and theCompany has an unconditional right to avoid delivering cash or another financial asset except for
distribution of residual assets on liquidation.
Payments of interest were completed on the interest payment dates, July 19, 2019 and January 21,
2020, and “Retained earnings” decreased by ¥15,344 million ($140,991 thousand) and ¥15,727
million ($144,510 thousand) (for the fiscal year ended March 31, 2019: decreased by ¥16,087 millionand ¥15,649 million on July 19, 2018 and January 22, 2019), respectively, as “Distribution to owners ofother equity instruments” in the consolidated statement of changes in equity.
In addition, accrued interest, which is not recognized as a distribution to owners of other equity
instruments because the payment has not yet been determined, is ¥6,210 million ($57,061 thousand)as of March 31, 2020 (¥6,333 million as of March 31, 2019).
(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 of 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.

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents(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, 2019

Fiscal year ended
March 31, 2020

11,162
36,713(1,048)46,827

46,82733,340(58,349)
21,818

Balance at the beginning of the year����������������������������������������������
Increase during the year1,2��������������������������������������������������������������
Decrease during the year3��������������������������������������������������������������
Balance at the end of the year ������������������������������������������������������

Notes:
1. The number of shares of treasury stock acquired based on the resolution passed at the Board of Directors’ meeting for the fiscal year
ended March 31, 2019 was 36,709 thousand and total acquisition cost was ¥384,068 million.
2. For the fiscal year ended March 31, 2020, due to purchases of treasury stock under the resolutions passed at the Board of Directors
meetings held on February 6, 2019 and March 13, 2020, the number of treasury stock increased by 19,044 thousand shares (amountpurchased ¥215,931 million ($1,984,113 thousand)) and by 4,720 thousand shares (amount purchased ¥16,028 million ($147,276
thousand,) respectively. In addition, under the resolution passed at the Board of Directors meeting held on May 9, 2019, the Company
conducted a share split at a ratio of two-for-one effective June 28, 2019 and the number of treasury stock increased by 9,573 thousand
shares.
3. Under the resolution passed at the Board of Directors meeting held on May 30, 2019, the Company 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 ($5,128,512 thousand), respectively.

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(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, 2018���������������������������������������������������������������
Effect of retrospective adjustments due to adoption of
new standards*���������������������������������������������������������������
As of April 1, 2018 (after adjustments) ���������������������������������
Other comprehensive income(attributable to owners of the parent)�����������������������������
Transfer to retained earnings���������������������������������������������
As of March 31, 2019�����������������������������������������������������������
Other comprehensive income(attributable to owners of the parent)�����������������������������

¥(55,286)¥ 309,545¥ 317,959

11,127
11,12741
41–(55,286)(5,296)304,249(57,828)
260,131–––(4,191)(275)¥ 6,661

226
–
¥267

9,495
–
¥(45,791)

24,882–¥ 329,131

29,036
1,101¥ 290,268

–
–

(207)
(1,339)313–

55,465–(501,064)–(464,011)
17,179–––¥ 5,115

–
¥580

3,454
¥ 13,128(209,149)¥(381,082)(205,695)¥(362,259)

Debt financial assets at
FVTOCI

Cash flow hedges

Exchange differenceson translating foreign
operations

Total

61,206$2,453$(420,757)$ 3,024,267$ 2,667,169(1,902)(12,303)

2,876–

509,648–(4,604,099)–(4,263,632)
157,852(1)
47,000–$5,32931,738$ 120,629(1,921,795)$(3,501,627)(1,890,058)$(3,328,669)

Equity financial assets at
FVTOCI–¥ 63,700¥––(63,700)–(1,376)
1,376
¥
–

¥

As of March 31, 2020�����������������������������������������������������������

–Available-for-salefinancial assets¥(18,518)
18,518Transfer to retained earnings���������������������������������������������
Transfer of accumulated other comprehensive income
directly relating to assets classified as held for sale�����������Cash flow hedges

Exchange differenceson translating foreign
operations

–
–

¥

–

Debt financial assets at
FVTOCI¥

Total(Thousands of U.S. dollars)Remeasurements ofdefined benefit plan

As of April 1, 2019���������������������������������������������������������������
Other comprehensive income(attributable to owners of the parent)�����������������������������

$Transfer to retained earnings���������������������������������������������
Transfer of accumulated other comprehensive income
directly relating to assets classified as held for sale�����������
As of March 31, 2020�����������������������������������������������������������

$Available-for-salefinancial assets–$–(170,155)
170,155

–
–

–
–

–
$–

Equity financial assets at
FVTOCI$$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 49. Other comprehensive income.”
Note:* In accordance with the adoption of IFRS 9, “Financial Instruments,” and IFRS 15, “Revenue from Contracts with Customers,” cumulative effects of retrospective adjustments are recognized as adjustments to the opening balance of retained earnings and accumulated othercomprehensive income.

SoftBank Group Corp. ANNUAL REPORT 2020

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

20436. 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, 2019
Resolution

Class of shares

Shareholders’ meeting held on June 20, 2018������������������� Common stock
Board of directors’ meeting held on October 31, 2018����� Common stock

Dividends per share

Total dividends(Yen)(Millions of yen)

¥22*
22*

¥23,969
23,982

Record date

Effective date

March 31, 2018
September 30, 2018

June 21, 2018
December 10, 2018

Record date

Effective date

March 31, 2019
September 30, 2019

June 20, 2019
December 9, 2019

Record date

Effective date

March 31, 2020

June 26, 2020

For the fiscal year ended March 31, 2020
Dividends per share
Resolution

Class of shares

Shareholders’ meeting held on June 19, 2019������������������� Common stock
Board of directors’ meeting held on October 16, 2019����� Common stock

Total dividends

(Yen)

(USD)

(Millions of yen)(Thousands of U.S. dollars)

¥22*
22

$0.20
0.20

¥23,184
45,567$213,029
418,699

Note:* The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Dividends per share” is calculated assuming that the share split was conducted at the beginning of the fiscal year.

Dividends which will become effective during the fiscal year ending March 31, 2021 are as follows:
Dividends per share
Resolution

Class of shares

Shareholders’ meeting held on June 25, 2020������������������� Common stock

SoftBank Group Corp. ANNUAL REPORT 2020

Total dividends

(Yen)

(USD)

(Millions of yen)(Thousands of U.S. dollars)

¥22

$0.20

¥45,496$418,046

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20537. Share-based payment transactions
The Company grants stock options and restricted stock units (“RSUs”) 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 payment

Equity-settled�����������������������������������������������
Cash-settled�������������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥12,950
5,771¥18,721¥7,612
334¥7,946$69,944
3,069$73,103(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥12,246
91¥2,49164$22,889
588

Liability arising from share-based payment

Liability arising from share-based payment ���Liability vested in the above �������������������������

(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, 2019 and 2020 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.

SoftBank Group Corp. ANNUAL REPORT 2020

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Message from Our CEO

Year issued/Name

Grant dateDue date for exercise

2016 July Stock Acquisition Rights1
2017 February Stock Acquisition Rights1
2017 July Stock Acquisition Rights1
2018 August Stock Acquisition Rights2
2019 July Stock Acquisition Rights3
2019 November Stock Acquisition Rights4

July 28, 2016
February 27, 2017
July 28, 2017
August 31, 2018
August 13, 2019
December 23, 2019

July 31, 2022
February 28, 2023
July 31, 2023
August 31, 2025
August 31, 2025
December 31, 2026

Notes:
1. 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 acquisitionrights are forfeited.
2. Vesting 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 “a” through “d” 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.
a. from September 1, 2021 through August 31, 2022: 25% of the allocated amount of stock acquisition rightb. from September 1, 2022 through August 31, 2023: 50% of the allocated amount of stock acquisition rights along with thestock acquisition rights exercised in the period “a” abovec. from September 1, 2023 through August 31, 2024: 75% of the allocated amount of stock acquisition rights along with thestock acquisition rights exercised in the period “a” and “b” aboved. 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 “a” through “c” above
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.
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 “a” through “d” 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.
a. from September 1, 2021 through August 31, 2022: 25% of the allocated amount of stock acquisition rights
b. from September 1, 2022 through August 31, 2023: 50% of the allocated amount of stock acquisition rights along with thestock acquisition rights exercised in the period “a” abovec. from September 1, 2023 through August 31, 2024: 75% of the allocated amount of stock acquisition rights along with thestock acquisition rights exercised in the period “a” and “b” aboved. 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 “a” through “c” above
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.
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 acquisitionrights are forfeited.

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

206

(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.

(c) Z Holdings Corporation
Z Holdings Corporation grants stock options to its directors and employees. Shares grantedby the exercise of stock options are those issued by Z Holdings Corporation.

Year issued/Name

Grant dateDue date for exercise

Year issued/Name

Grant dateDue date for exercise

2018 March Stock Acquisition Rights*

March 30, 2018

March 31, 2025

20081

From May 9, 2008
through February 10, 2009
From May 12, 2009
through February 10, 2010
From May 11, 2010
through February 8, 2011
From June 3, 2011
through February 17, 2012

From April 25, 2018
through January 27, 2019
From April 28, 2019
through January 27, 2020
From April 27, 2020
through January 25, 2021
From May 20, 2021
through February 3, 2022

May 16, 2012
March 1, 2013

May 2, 2022
February 28, 2023

May 17, 2013
November 19, 2013

May 16, 2023
November 18, 2023

May 26, 2014

May 25, 2024

Note:
*Vesting condition
In case the common stock of SoftBank Corp. are newly listed on the financial instruments market established by the financial
instruments exchange by March 31, 2020, an entitled person is able to exercise these rights.
Also, the number of these rights which an entitled person is able to exercise is as follows
i. where the total number of shares granted by the stock acquisition rights initially allotted is from 3,000 to less than 12,000
shares, the number of the stock acquisition rights which an entitled person is able to exercise is limited to the following
number during the following period.
a. up to 30% of the total allotted rights is exercisable from April 1, 2020 to March 31, 2021.
b. up to 60% of the total allotted rights including the rights exercised during the period of (a) is exercisable from April 1,
2021 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 exercisable from
April 1, 2022 to March 31, 2025.
ii. i. 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 exercisable from April
1, 2022 to March 31, 2023.
d. up to 80% of the total allotted rights including the rights exercised during the period of (a), (b), and (c) is exercisable from
April 1, 2023 to March 31, 2024.
e. up to 100% of the total allotted rights including the rights exercised during the period of (a), (b), (c), and (d) is exercisablefrom April 1, 2024 to March 31, 2025.
When an eligible person (director, employee or executive officer) retires, the unexercised acquisition rights are forfeited. However,this shall not apply in the case of a good cause, such as resignation due to expiration of the term or mandatory retirement.

20091
20101
20111
2012
1st1
2nd2
2013
1st3
2nd4
2014
1st4

Notes:
1. Vesting condition
Rights are mainly starting to vest in stages after 2 years from the grant date. One-half of the total grant vests after 2 years
from the grant date, and one fourth grant vests per year for the subsequent 2 years. Vesting requires continuous service fromthe grant date to the vesting date. When an eligible person retires, vested acquisition rights are forfeited.
2. Vesting condition
Rights vest according to the amount of operating income achieved as specified in either (i) or (ii) below in the period from thefiscal year ended in March 2014 through the fiscal year ending in March 2019.
i. If the operating income exceeds ¥250 billion
Period of achievement: By fiscal year March 2016 Exercisable ratio: 20%
Period of achievement: By fiscal year March 2017 Exercisable ratio: 14%
Period of achievement: By fiscal year March 2018 Exercisable ratio: 8%
Period of achievement: By fiscal year March 2019 Exercisable ratio: 2%
ii. If the operating income exceeds ¥330 billion
Period of achievement: By fiscal year March 2016 Exercisable ratio: 80%
Period of achievement: By fiscal year March 2017 Exercisable ratio: 56%
Period of achievement: By fiscal year March 2018 Exercisable ratio: 32%
Period of achievement: By fiscal year March 2019 Exercisable ratio: 8%
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.
3. Vesting condition
Rights vest according to the amount of operating income achieved as specified in either (i) or (ii) below in the period from thefiscal year ended in March 2014 through the fiscal year ending in March 2019.
i. If the operating income exceeds ¥250 billion Exercisable ratio: 20%
ii. If the operating income exceeds ¥330 billion Exercisable ratio: 80%
Vesting requires continuous service from the grant date to the vesting date. When an eligible person retires, vested acquisitionrights are forfeited.

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4. Vesting condition
Rights vest once the operating income for the fiscal year exceeds ¥330 billion in either of the period from the fiscal year ended
in March 2015 through the fiscal year ending in March 2019. Vesting requires continuous service from the grant date to thevesting date. When an eligible person retires, vested acquisition rights are forfeited.

b. Fair value of stock options granted during the period
Weighted-average fair value and fair value measurement at the measurement date of the stock
options granted during the period are as follows:(a) SoftBank Group Corp.
The weighted-average fair value at the measurement date of the stock options granted
during the period is ¥4,768 ($43.81) (for the fiscal year ended March 31, 2019: ¥5,052).
Fair value is measured as follows:(b) SoftBank Corp.
There are no stock options granted during the fiscal years ended March 31, 2019 and 2020.
(c) Z Holdings Corporation
There are no stock options granted during the fiscal years ended March 31, 2019 and 2020.
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:(a) SoftBank Group Corp.
Fiscal year ended March 31, 2019

Fiscal year ended March 31, 2020

Number ofshares

Weightedaverage
exercise price(Yen)

Number ofshares

Weightedaverage
exercise price
(Yen)
(USD)

18,384,000
1,439,400(165,400)(2,096,800)–¥4,016
1
3,573
3,080
–

17,561,200
267,000(170,300)(3,140,200)–¥3,802
1
3,007
3,206
–

$34.94
0.01
27.63
29.46
–

17,561,200¥3,802

14,517,700¥3,871$35.57

6,368,000¥3,121

12,902,000¥4,355$40.02

Fiscal year ended March 31, 2019Year issued/Name
Valuation method used2018 August stock acquisition rights

Beginning balance –Unexercised ����������������
Granted ������������������������
Forfeited������������������������
Exercised������������������������
Matured������������������������
Ending balance –Unexercised ����������������

Black-Scholes model(Yen)
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�������

¥5,150¥1
33.89 – 36.54%
3 – 6 years¥22/per share(0.09) – (0.03)%

Ending balance –Exercisable ������������������

The unexercised options as of March 31, 2020 are as follows:

Fiscal year ended March 31, 2020

Year issued/Name
Valuation method used
Key inputs and assumptions:
Weighted-averagestock price ������������������������
Weighted-average
exercise price������������������������
Volatility of stock price* ������
Estimated residual period ����
Estimated dividend��������������
Risk-free interest rate ����������

2019 July stockacquisition rights

2019 November stockacquisition rights

Black-Scholes model

(USD)

(Yen)

(USD)

¥4,895$44.98¥4,663$42.85¥1$0.01
32.10 – 36.44%
2 – 5 years¥22/$0.20/
per share(0.31) – (0.26)%

1
3,080
4,446
4,791

$ 0.01
28.30
40.85
44.02

Black-Scholes model(Yen)

per share(Yen)

Range ofexercise price
(USD)

¥1
31.90%
3 years¥22/
per share

$0.01

¥

Number of shares

Total����������������������������

1,615,700
3,255,000
150,000
9,497,000
14,517,700(Yen)

Weighted-average
exercise price
(USD)

¥

1
3,080
4,446
4,791
¥3,871$ 0.01
28.30
40.85
44.02
$35.57Weightedaverage remaining
contract period(year)

5.5
2.3
2.9
3.3
3.3

$0.20/
per share(0.09)%

Note:*Volatility of the stock price is calculated based on the performance of the stock price for the most recent period depending on
the period to maturity.
SoftBank Group Corp. ANNUAL REPORT 2020

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208

(b) SoftBank Corp.

The unexercised options as of March 31, 2020 are as follows:
Fiscal year ended March 31, 2019

Number ofsharesBeginning balance –Unexercised ���������������� 120,002,300
Granted ������������������������
–Forfeited������������������������
(2,226,200)
Exercised������������������������
–Ending balance –Unexercised ���������������� 117,776,100

Fiscal year ended March 31, 2020

Weightedaverage
exercise price(Yen)

Number ofshares

¥623
–
623
–

117,776,100–(2,682,600)
–

¥623
–
623
–

$5.72
–
5.72
–

623

115,093,500

623

5.72

Weighted-average
exercise price
(Yen)
(USD)

–

¥

–

–

¥

–

$

¥201–¥300$1.85–$2.76
301– 400
2.77– 3.68
Total�������������������������������������������

(c) Z Holdings Corporation
Fiscal year ended March 31, 2019Year issued/
Name

2016 July Stock
Acquisition
RightsNumber ofshares exercised

2,096,800

Fiscal year ended March 31, 2020

Number ofshares

Weightedaverage
exercise price(Yen)

Number ofshares55,987,100–(8,171,800)(86,100)(483,000)

¥430
–
420
306
424

47,246,200–(45,951,600)(131,900)(345,300)

¥431
–
435
305
305

$3.96
–
4.00
2.80
2.80

47,246,200

431

817,400

303

2.78

1,393,200¥305

817,400

¥303

$2.78

Weighted-average
exercise price
(Yen)
(USD)

(Yen)

469,500
347,900
817,400

¥271
345
¥303

Weighted-averageremaining contract period(USD)(year)

$2.49
3.17
$2.78

Weightedaveragestock priceat exercise(Yen)

Fiscal year ended March 31, 2020

Year issued/
Name

2016 – July Stock
Acquisition¥4,781 Rights
2017 – February
Stock
Acquisition
Rights2017 – July Stock
Acquisition
Rights2,900,800¥5,278$48.5040,000

5,250

48.24

199,400

5,366

49.31

(c) Z Holdings Corporation

Number ofshares exercised

Weightedaverage stock
price at exercise
(Yen)

2012

17,70018,100
5,300
30,00015,000

¥444
429
481
364
387

Who We Are

Our Path to Continued Growth

2008
2009
2010
2011

Message from Our CEO

Weighted-averagestock price at exercise
(Yen)
(USD)

Number ofshares exercised

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2019

Table of Contents

1.4
0.3
1.0

(b) SoftBank Corp.
There was no applicable information.

Year issued/Name

SoftBank Group Corp. ANNUAL REPORT 2020

Number ofsharesd. 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.

–

Of the ending balance exercisable, the weighted-average exercise price as of March 31, 2020was ¥623 ($5.72) and the weighted average remaining contract period was 5 years.

Ending balance –Exercisable ������������������

Range ofexercise price(USD)

Fiscal year ended March 31, 2019

Ending balance –Exercisable ������������������

Beginning balance –Unexercised ����������������
Granted ������������������������
Forfeited������������������������
Exercised������������������������
Matured ����������������������
Ending balance –Unexercised ����������������

(Yen)

Year issued/Name

Number ofshares exercised

2008
2009
2010
2011
2012

Management: The Foundation Supporting Our Growth–
14,10052,10063,1002,600

Financial Section

Weighted-averagestock price at exercise
(Yen)
(USD)

¥ –
352
415
358
401

$ –
3.23
3.81
3.29
3.68

Corporate Information

209

(2) Restricted stock unit plan
The Company adopts restricted stock unit (“RSU”) plans where the Company grants stocks, the transfer
of which is restricted for a certain period until vested, and is accounted for as equity-settled share-based
payment.
The details of the Company’s RSU plans for the years ended March 31, 2020 are as follows:

38. Net sales(1) Breakdown of net sales
The components of net sales are as follows.

Arm
In December 2019, Arm granted shares of Arm Limited as RSUs to all employees of Arm and its
group companies (the “Arm Group”.)
RSUs vest upon the achievement of certain performance thresholds of the enterprise value. The fairvalue of the RSUs is measured using the Monte Carlo option pricing model at the time of grant. The
RSUs are forfeited if the employee leaves the Arm Group before the RSUs vest. The cliff vesting period is
4.5 years. The RSUs are accounted for as equity-settled share based payment. However, they will be
accounted for as cash-settled share based payment under certain future conditions based on the termsof the RSUs.
The number of RSUs granted for the fiscal year ended March 31, 2020 was 16,596,749 units. The
weighted-average fair value of RSUs granted for the fiscal year ended March 31, 2020 was £10.66 per
unit.

SoftBank segment
Telecommunications
Retail consumer
Telecom service revenue
Wireless telecom services�������������������
Broadband services ���������������������������
Products and other sales �������������������
Business���������������������������������������������
Distribution�����������������������������������������������
Yahoo
Advertising �������������������������������������������
Business�������������������������������������������������
Personal�������������������������������������������������
Other�����������������������������������������������������
Other �������������������������������������������������������
Subtotal�������������������������������������������������
Arm segment
License revenue�����������������������������������������
Royalty revenue�����������������������������������������
Other �������������������������������������������������������
Subtotal�������������������������������������������������
Brightstar segment
Products and other sales���������������������������
Service revenue�����������������������������������������
Subtotal�������������������������������������������������
Other �������������������������������������������������������
Total �����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥1,591,009
361,076
690,759
615,496
377,051¥1,649,551
383,783
636,059
626,795
439,674$15,157,135
3,526,445
5,844,519
5,759,395
4,040,007

323,272
396,827
201,792
1,648
67,667
4,626,597

340,693472,655
215,544
2,585
76,318
4,843,657

3,130,506
4,343,058
1,980,557
23,753
701,259
44,506,634

60,823
122,725
19,068
202,616

60,567
120,725
24,985206,277

556,529
1,109,299
229,578
1,895,406

385,901
696,768
1,082,669
181,666¥6,093,548

369,788585,627
955,415
179,744¥6,185,093

3,397,850
5,381,117
8,778,967
1,651,603$56,832,610

The above amount of net sales for the fiscal year ended March 30, 2020 includes ¥121,149 million($1,113,195 thousand) (for the fiscal year ended March 31, 2019: ¥101,659 million) of revenue fromother withholdings, excluding those arising from IFRS 15.

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(2) Contract balance
The components of contract balances are as follows.
As of March 31, 2020, contract balance of Sprint is not included as Sprint is reclassified as a disposalgroup classified as held for sale.

Receivables arising fromcontracts with customers ��������
Contract assets������������������������
Contract liabilities��������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofApril 1, 2018

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥1,312,989
72,484
253,101¥1,336,584
140,586
274,252¥999,951
66,538167,615$9,188,193
611,394
1,540,154

Contractual assets generally increase when the Company transfers goods or services to a customer(excluding claims for which the right to remuneration is unconditional) before the customer pays theconsideration or before the payment becomes due and decrease when the Company bills the customer.
Contractual liabilities generally increase when the Company receives consideration from a customer
prior to the transfer of goods or services to the customer and decrease when the Company meets its
performance obligations.
For the year ended March 31, 2020, impairment loss on receivables related to revenue fromcontracts with customers was ¥13,412 million ($123,238 thousand) (for the fiscal year ended March
31, 2019: ¥15,371 million.)
Of the amount of net sales recognized for the year ended March 31, 2020, ¥91,174 million($837,765 thousand) was included in the beginning balance of contract liabilities as of that date (forthe fiscal year ended March 31, 2019: ¥92,129 million.)(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, 2020 is ¥157,100 million ($1,443,535 thousand) (as of March 31,
2019: ¥798,528 million.)
As of March 31, 2020, transaction price allocated to remaining performance obligation in thecontract of Sprint are reclassified as a disposal group classified as held for sale.
The unsatisfied performance obligations arise primarily from mobile communications services andmobile device rental services in the enterprise business, and are expected to be recognized as revenue
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.

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39. Cost of sales and selling, general and administrative expenses
The components of cost of sales and selling, general and administrative expenses are as follows:

Cost of goods sold���������������������������������������
Depreciation and amortization ���������������������
Employees benefit cost���������������������������������
Sales commissions and sales promotion
expenses�����������������������������������������������������
Service outsourcing expenses �����������������������
Telecommunications equipment usage fees���Amortization of contract acquisition cost andcontract performance cost �������������������������
Operating lease expenses�����������������������������
Other�����������������������������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(2,180,837)(653,229)(591,653)¥(2,039,336)(832,017)(622,265)$(18,738,730)(7,645,107)(5,717,771)(442,401)(228,292)(215,662)(483,367)(261,948)(216,304)(4,441,487)(2,406,947)(1,987,540)(175,151)(157,317)(835,155)¥(5,479,697)(191,585)–(948,865)¥(5,595,687)(1,760,406)–(8,718,781)$(51,416,769)“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.
The operating costs, which are included in “Operating income from SoftBank Vision Fund and other
SBIA-managed funds” in the consolidated statement of income, are included in the amounts above.
Details are described in “Note 8. SoftBank Vision Fund and other SBIA-managed funds business.”
As a result of the adoption of IFRS 16, the “Operating lease expenses” that were previously
accounted and recorded as expenses are recorded as depreciation of the right-of-use assets recognized.
For the fiscal year ended March 31, 2020, ¥345,525 million ($3,174,906 thousand) of depreciationof the right-of use assets were recorded in “Depreciation and amortization”
40. Gain relating to loss of control over subsidiaries
For the fiscal year ended March 31, 2019
On June 26, 2018, Arm Limited, a British subsidiary of the Company, sold a 51% equity interest in its
Chinese subsidiary, Arm Technology (China) Co., Ltd. (“Arm China”), for $845 million to entities
representing certain institutional investors and certain of Arm’s ecosystem partners in order to form ajoint venture for Arm’s semiconductor technology IP business in China.
As a result of the transaction, Arm China is no longer considered a subsidiary of the Company andhas become an associate accounted for using the equity method. Gain relating to loss of control oversubsidiaries arising from the transaction is ¥176,261 million.

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The components of other operating income and loss are as follows:

Fiscal year ended
March 31, 2019

SoftBank segment
Impairment loss on assets�������������������������
Gain from remeasurement relating tobusiness combination �����������������������������
Other �������������������������������������������������������
Other
Loss relating to investment fund business
in Latin America �������������������������������������
Impairment loss on assets1�������������������������
Loss on equity method investments at
Fortress���������������������������������������������������
Loss on liquidation of a subsidiary2 �����������
Other �������������������������������������������������������
Total �����������������������������������������������������

¥ (6,669)(Millions of yen)(Thousands of
U.S. dollar)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥

(3,404)$(31,278)

3,751
(81)

–
–

–
–

–
–

(62,212)(46,044)(571,644)(423,082)(1,473)(14,842)–¥(19,314)(14,442)–
5,051¥(121,051)(132,702)–
46,412$(1,112,294)

Notes:
1. The primary component for the fiscal year ended March 31, 2020 was the amount of ¥25,710 million ($236,240 thousand) of
impairment loss for the management contracts, which was recognized because the recoverable amounts of management contracts
were less than the carrying amounts.
2. This is due to the realization of a foreign currency translation adjustment resulting from the liquidation of Kahon 2 Oy for the fiscal year
ended March 31, 2019.

42. Finance cost
The components of finance cost are as follows:

Interest expenses* ���������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020¥(341,937)¥(300,948)$(2,765,304)

43. Income on equity method investments
For the fiscal year ended March 31, 2020
Alibaba received newly-issued share (a 33% equity interest) of Ant Small and Micro Finance Services
Group Co., Ltd. (“Ant Financial”) in September 2019, pursuant to the 2014 share and asset purchaseagreement, 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 andassets 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, net of its corresponding deferred tax
effect.
As a result, the Company recognized ¥286,473 million ($2,632,298 thousand) of income on equity
method investments.
44. Dilution gain from changes in equity interest
For 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 ($2,678,958 thousand)of dilution gain from changes in equity interest related to Alibaba.
45. Derivative gain (loss)
For the fiscal year ended March 31, 2019
Derivative gain of ¥177,373 million was recorded in SoftBank Vision Fund. The details are described in“b. Income and loss arising from the SoftBank Vision Fund and Delta Fund business” in “(1) Income
and loss arising from the SoftBank Vision Fund and other SBIA-managed funds business included in the
consolidated statement of income” under “Note 8. SoftBank Vision Fund and other SBIA-managed
funds business.”

Note:* “Interest expenses” are incurred mainly by financial liabilities measured at amortized cost. For the fiscal year ended March 31, 2020. The
amount of lease expenses incurred from lease liabilities which was recorded in “Interest expenses” was ¥ (20,268) million ($ (186,235)
thousand.)

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46. Gain relating to settlement of variable prepaid forward contract using Alibaba shares
On June 3, 2019, a variable prepaid forward contract, which WRH LLC, a wholly-owned subsidiary of
the Company, entered into with Mandatory Exchangeable Trust (the “Trust”) in June 2016, in order tosell 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 ($11,196,609 thousand) of “Gainrelating to settlement of variable prepaid forward contract using Alibaba shares” was recorded for the
fiscal year ended March 31, 2020.
Alibaba shares held by WRH LLC were pledged as collateral under the variable prepaid forward
contract and subsequently, the relevant collateral contract was terminated. Alibaba shares pledged ascollateral were recorded as “Assets classified as held for sale” of ¥224,201 million and “Investments
accounted for using the equity method” of ¥39,256 million, were included in the consolidated
statement of financial position as of March 31, 2019.
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 the Trust 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 Trust Securities.
The settlement of the Alibaba shares based on the variable prepaid forward contract is conductedconcurrently with the exchange of Trust Securities. At the exchange date (June 3, 2019), Trust Securities
are exchanged for a certain number of ADSs, determined by reference to the trading price of the ADSs
at that time, and the number of Alibaba shares sold by the variable prepaid forward contract isdetermined by this number of ADSs. A cap and a floor are set for the number of shares settled, and thevariable 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 of shares through the variable prepaid forward contractand ¥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.

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Outline of the transaction

Wholly-owned subsidiary

SubsidiaryWest Raptor Holdings, LLC
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

Third party to
SoftBank

Mandatory Exchangeable Trust$6.6 billion for the total
issuance amount ofTrust Securities

Offering of Mandatory
Exchangeable Trust Securities(“Trust Securities”)

Investors

47. Gain (loss) from financial instruments at FVTPL
For the fiscal year ended March 31, 2019
Gain and loss from financial instruments at FVTPL mainly consists of dividend income, interest income,gain and loss on sales, and valuation gain and loss arising from financial assets classified as financial
assets at FVTPL.
For the fiscal year ended March 31, 2020
The amount of ¥488,479 million ($4,488,459 thousand) of loss was recognized due to the decline infair value of WeWork shares held by the WeWork Investment Subsidiary.
In addition, gain and loss on valuation of WeWork shares held by SoftBank Vision Fund are included
in “Operating income from SoftBank Vision Fund and other SBIA-managed funds” under the consolidated statement of income.

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48. Other non-operating loss
The components of other non-operating income and loss are as follows:

Interst income�����������������������������������������������
Provisions for allowance for doubtful
accounts1 ���������������������������������������������������
Provisions for allowance for loan
commitment losses2 �����������������������������������
Impairment loss onequity method investments1 �����������������������
Provisions for allowance for financial
guarantee contract losses3���������������������������
Gain from remeasurement relating todiscontinuing the use of the equity
method4 �����������������������������������������������������
Loss on redemption of corporate bonds �������
Other�����������������������������������������������������������
Total �����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥ 14,016¥ 34,587(357)(102,947)(945,943)–(90,210)(828,907)(54,977)(73,721)(677,396)–(59,902)(550,418)

24,842(14,538)(2,178)¥(33,192)

–
–
6,631
¥(285,562)––
60,929$(2,623,927)$

317,808

4. Gain from remeasurement relating to discontinuing the use of the equity method was recorded for ¥ 21,903 million related to PT
Tokopedia in Indonesia, previously accounted for by the equity method. In September 2018, a voting proxy deed was entered into
between the Company and a shareholder of PT Tokopedia. As a result, the number of voting rights in PT Tokopedia exercisable by theCompany decreased and the Company had no significant influence over PT Tokopedia. Consequently, PT Tokopedia was no longer
qualified as an equity method associate and equity interests in PT Tokopedia, continuously held by the Company on the date the use of
the equity method was discontinued, was remeasured. All investments in PT Tokopedia were subsequently transferred from theCompany to SoftBank Vision Fund in the three-month period ended December 31, 2018.
As a result of the discontinuing the use of the equity method for PT Tokopedia, and subsequent to the transfer of PT Tokopedia shares
to SoftBank Vision Fund, ¥21,903 million arising from the difference between the carrying amount before discontinuing the use of theequity method and the transferred amount was recorded as “Gain from remeasurement relating to discontinuing the use of the equity
method,” and ¥67,306 million arising from the difference between the transferred amount and the fair value on the date ofdiscontinuing the use of the equity method was recorded as “Operating income from SoftBank Vision Fund and other SBIA-managed
funds” in the consolidated statement of income for the fiscal year ended March 31, 2019.

Notes:
1. For the fiscal year ended March 31, 2019, the Company conducted an impairment test for the equity method investments in OneWeb
Global Limited because the financial results and the most recent business plan have declined below is original business plan. As a result,
the Company recorded an impairment loss on equity method investments of ¥49,549 million for investments made to OneWeb Global
Limited. On 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 impairment loss of ¥49,198 million($452,063 thousand) was recorded. In addition, loan receivable of ¥65,913 million ($605,651 thousand) from the entity was estimatedto be difficult to recover and the allowance for doubtful accounts was fully provided. In addition, the fair value of the entity’s warrants
convertible into shares was measured to be zero and ¥54,455 million ($500,368 thousand) was recorded as “loss arising from financial
instrument at FVTPL” in the consolidated statement of income for the fiscal year ended March 31, 2020.
2. For the fiscal year ended March 31, 2020, ¥90,210 million ($828,907 thousand) 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 lessaccumulated amortization after the initial recognition. The details are described in “Note 27. Other financial liabilities (current) (Notes
1).”
3. For the fiscal year ended March 31, 2020, ¥52,349 million ($481,016 thousand) 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 werehigher than the amount less accumulated amortization after the initial recognition. The details are described in “Note 27. Other
financial liabilities (current) (Notes 2).”

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49. 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, 2019
(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

Before tax effect

Income tax effect

After tax effect¥ (2,094)(5,934)(8,028)¥–––¥ (2,094)(5,934)(8,028)

¥ 890
2,270
3,160

¥ (1,204)(3,664)(4,868)

1,775(10,312)
11,491
15,536
18,490¥10,462(124)
16,29816,470–32,644¥32,644

1,651
5,986
27,961
15,536
51,134¥43,106

(506)
2,780
(733)
(130)
1,411
¥4,571

1,145
8,766
27,22815,40652,545¥47,677

Amount arisingduring the year

Reclassification
adjustments

For the fiscal year ended March 31, 2020
(Millions of yen)

Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan��������������������������������������������������������������������
Equity financial assets at FVTOCI��������������������������������������������������������������������������������
Total ����������������������������������������������������������������������������������������������������������������������
Items that may be reclassified subsequently to profit or loss
Debt financial assets at FVTOCI����������������������������������������������������������������������������������Cash flow hedges������������������������������������������������������������������������������������������������������
Exchange differences on translating foreign operations����������������������������������������������
Share of other comprehensive income of associates���������������������������������������������������
Total ����������������������������������������������������������������������������������������������������������������������
Total other comprehensive income ��������������������������������������������������������������������������������

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Before tax effect

Income tax effect

After tax effect¥  (27,264)(10,658)(37,922)¥–––¥ (27,264)(10,658)(37,922)¥ 5,983
4,413
10,396¥ (21,281)(6,245)(27,526)(1,501)
20,879(574,539)
3,989(551,172)¥(589,094)(516)
43,8178–43,309¥43,309(2,017)64,696(574,531)
3,989(507,863)¥(545,785)

515(8,539)52,911923
45,810¥56,206(1,502)56,157(521,620)
4,912(462,053)¥(489,579)

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(Thousands of U.S. dollars)
Amount arisingduring the year

Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan��������������������������������������������������������������������
Equity financial assets at FVTOCI��������������������������������������������������������������������������������
Total ����������������������������������������������������������������������������������������������������������������������
Items that may be reclassified subsequently to profit or loss
Debt financial assets at FVTOCI����������������������������������������������������������������������������������Cash flow hedges������������������������������������������������������������������������������������������������������
Exchange differences on translating foreign operations����������������������������������������������
Share of other comprehensive income of associates���������������������������������������������������
Total ����������������������������������������������������������������������������������������������������������������������
Total other comprehensive income ��������������������������������������������������������������������������������

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Reclassification
adjustments

Before tax effect

Income tax effect

After tax effect$ (250,519)(97,933)(348,452)

$

–
–
–

$ (250,519)(97,933)(348,452)$ 54,975
40,55095,525$ (195,544)(57,383)(252,927)(13,792)
191,850(5,279,234)
36,653(5,064,523)$(5,412,975)(4,741)
402,61874–
397,951$397,951(18,533)
594,468(5,279,160)
36,653(4,666,572)$(5,015,024)

4,732(78,461)
486,180
8,481
420,932$516,457(13,801)
516,007(4,792,980)
45,134(4,245,640)$(4,498,567)

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21650. Earnings per share
Basic earnings per share and diluted earnings per share are as follows:(2) Diluted earnings per share(1) Basic earnings per share

Fiscal year ended
March 31, 2019

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 parent2���������������������
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, 2020

¥1,411,199¥(961,576)$(8,835,578)(32,007)(30,948)(284,370)¥1,379,192¥(992,524)$(9,119,948)¥1,370,749¥(960,975)$(8,830,057)

8,443¥1,379,192(31,549)¥(992,524)(289,892)$(9,119,949)(Thousands of shares)

Weighted-average number of ordinary
shares���������������������������������������������������������

Basic earnings per share
Continuing operations�������������������������������
Discontinued operations���������������������������
Total �����������������������������������������������������

2,175,123¥630.19
3.89¥634.082,074,225
(Yen)

(USD)

¥(463.29)(15.21)¥(478.50)$(4.26)(0.14)$(4.40)

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�������������������������������������������������
Effect of dilutive securities issued bysubsidiaries and associates�����������������������
Subtotal ���������������������������������������������������
Total �����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥1,370,749¥ (960,975)$(8,830,057)(10,087)¥1,360,662(14,151)¥ (975,126)(130,028)$(8,960,085)¥¥(31,549)$ (289,892)–¥ (31,549)¥(1,006,675)–$ (289,892)$(9,249,977)

8,443

(134)
¥
8,309
¥1,368,971(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 rights3�������������������������
Total �����������������������������������������������������

Diluted earnings per share
Continuing operations�������������������������������
Discontinued operations���������������������������
Total �����������������������������������������������������

2,175,123

2,074,225

3,844
2,178,967–
2,074,225¥624.453.82¥628.27

(Yen)

(USD)

¥(470.12)(15.21)¥(485.33)$(4.32)(0.14)$(4.46)

Notes:
1. The 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. Net income not-attributable to ordinary shareholders of the parent represents net income attributable to owners of other equity
instruments.
3. Stock acquisition rights are not included in the calculation for “Diluted earnings per share” as it has an antidilutive effect for the
calculation for the fiscal year ended March 31, 2020.

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21751. 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.
(2) Income taxes paid and income taxes refunded
For the fiscal year ended March 31, 2019
Refund of the withholding income tax of ¥87,094 million is included in “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 ($4,321,042 thousand), payment of income tax mainly related to gain on sales of SoftBank
Corp. shares held by SoftBank Group Japan Corporation in December 2018 of ¥321,290 million($2,952,219 thousand), and payment of income tax related to deemed dividends on sales of Z Holdings
Corporation shares held by SoftBank Group Japan Corporation due to an acquisition of its own sharesthrough the Tender Offer by Z Holdings Corporation of ¥78,801 million ($724,074 thousand) are
included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies of¥422,648 million ($3,883,562 thousand) million is included in “Income taxes refunded.”(3) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests
For the fiscal year ended March 31, 2019
¥2,349,832 million of proceeds received from sales of SoftBank Corp. shares is included in “Proceedsfrom the partial sales of shares of subsidiaries to non-controlling interests.”(4) Changes in liabilities arising from financing activities
Changes in liabilities arising from financing activities are as follows:
For the fiscal year ended March 31, 2019
(Millions of yen)

As of April 1, 2018���������������������������������������
(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���������
Contributions into SoftBank Vision Fundand other SBIA-managed funds fromthird-party investors �����������������������������
Distribution/repayment from SoftBank
Vision Fund and other SBIA-managed
funds to third-party investors ���������������
Other (Payments for cancellation)�������������(b) The effect of changes in foreign exchange
rates �������������������������������������������������������
(c) Changes in fair values �����������������������������(d) Changes in third-party interests in
SoftBank Vision Fund and other SBIAmanaged funds������������������������������������(e) Non-cash transactions *���������������������������
(f) Other changes �����������������������������������������
As of March 31, 2019�����������������������������������

Interest-bearing debt

Derivatives related tocorporate bondThird-party interests in
SoftBank Vision Fundand other SBIAmanaged funds¥17,042,188¥139,191¥1,844,679(65,411)6,189,112(7,128,379)

–
–
–

–
–
–

–

–

2,133,682–––(24,098)(486,388)–

277,581––377

58,840––(621,938)(8,047)¥15,685,106–––¥115,470

586,152––¥4,136,965

Note:* Non-cash transactions are incurred by utilizing the NVIDIA shares for the repayment of borrowings. The details are described in “(6)Significant non-cash transactions.”

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For the fiscal year ended March 31, 2020
(Millions of yen)

As of April 1, 2019���������������������������������������������������������������������������������������������������������������������������������������������������
Effect of retrospective adjustments due to adoption of new standards ���������������������������������������������������������������������
As of April 1, 2019 (after adjustments)���������������������������������������������������������������������������������������������������������������������
(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 SoftBank Vision Fund and other SBIA-managed funds from third-party investors���������������������
Distribution/repayment from SoftBank Vision Fund and other SBIA-managed funds to third-party investors ���������
(b) Changes from acquisition or loss of control over subsidiaries and other businesses1���������������������������������������������
(c) The effect of changes in foreign exchange rates���������������������������������������������������������������������������������������������������(d) Changes in fair values �����������������������������������������������������������������������������������������������������������������������������������������(e) Changes in third-party interests in SoftBank Vision Fund and other SBIA-managed funds�������������������������������������
(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�����������������������������������������������������������������������������������������������������������������������������������������������

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Interest-bearing debt

Lease liabilities

Derivatives related tocorporate bondThird-party interests in
SoftBank Vision Fund andother SBIA-managed funds¥15,685,106(892,472)¥14,792,634¥–
2,341,798¥2,341,798¥115,470–¥115,470¥4,136,965–¥4,136,965

133,172
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

Who We Are

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Financial Section

Corporate Information

219

(Thousands of U.S. dollars)

As of April 1, 2019���������������������������������������������������������������������������������������������������������������������������������������������������
Effect of retrospective adjustments due to adoption of new standards ���������������������������������������������������������������������
As of April 1, 2019 (after adjustments)���������������������������������������������������������������������������������������������������������������������
(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 SoftBank Vision Fund and other SBIA-managed funds from third-party investors���������������������
Distribution/repayment from SoftBank Vision Fund and other SBIA-managed funds to third-party investors ���������
(b) Changes from acquisition or loss of control over subsidiaries and other businesses1���������������������������������������������
(c) The effect of changes in foreign exchange rates���������������������������������������������������������������������������������������������������(d) Changes in fair values �����������������������������������������������������������������������������������������������������������������������������������������(e) Changes in third-party interests in SoftBank Vision Fund and other SBIA-managed funds�������������������������������������
(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�����������������������������������������������������������������������������������������������������������������������������������������������

Third-party interests in
SoftBank Vision Fund andother SBIA-managed funds

Interest-bearing debt

Lease liabilities

Derivatives related tocorporate bond$144,124,837(8,200,607)$135,924,230$–
21,517,945$21,517,945$1,061,013–$1,061,013$38,013,094–$38,013,094

1,223,679
79,040,026(51,885,758)–––
202,049(1,337,361)––(6,570,284)(36,053,092)
120,685$120,664,174–––(6,389,507)––
197,528(772,535)––
2,991,399(7,223,109)
156,327$10,478,048

–
–
–
–
–
–
–
–
(248,158)–––(90,573)$ 722,282––––
16,940,733(7,087,035)–(771,790)–(4,970,413)–––$42,124,589

Notes:
1. As a result of the consolidation of ZOZO, Inc. The details are described in “Note 9. Business combinations.”
2. The decrease of interest-bearing debt was made due to the delivery the Alibaba shares for the repayment of current portion of long-term borrowings . The details are described in “(6) 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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220

(5) Cash outflows related to lease
The total amount of cash outflows related to lease was ¥787,726 million ($7,238,133 thousand.)(6) Significant non-cash transactions
Significant non-cash transactions and financing activities are as follows:

Transfer of leased devices from inventories toproperty, plant and equipment �������������������
Increase in right-of-use assets related to leasetransactions �����������������������������������������������

For the fiscal year ended March 31, 2019

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥547,491¥548,375$5,038,822–

332,066

3,051,236

In addition to the above, for the fiscal year ended March 31, 2019, SoftBank Vision Fund executed anearly unwind of the collar transactions and elected to deliver the NVIDIA shares for the repayment of
current portion of long-term borrowings. This transaction includes a non-cash transaction since
long-term borrowings was settled with the NVIDIA shares and the remaining portion involved cash
settlement. In the consolidated statements of cash flows for the fiscal year ended March 31, 2019,¥2,634 million was recorded as “Other” in cash flows from financing activities, which is the net amountof the proceeds from disposal of shares of ¥466,270 million, the proceeds from collar options
settlement amount of ¥171,449 million, loan repayment amount of ¥(621,938) million, and interest
paid amount of ¥(13,147) million.
Also, for the fiscal year ended March 31, 2020, ¥715,044 million ($6,570,284 thousand) of current
portion of financial liabilities relating to sale of shares by variable prepaid forward contract and¥474,468 million ($4,359,717 thousand) of derivative financial liabilities (current) recognized for sale of
Alibaba shares by variable prepaid forward contract were settled with Alibaba shares. The details aredescribed in “Note 46. Gain relating to settlement of variable prepaid forward contract using Alibaba
shares.”SoftBank Group Corp. ANNUAL REPORT 2020

52. Related party transactions(1) Related party transactions and balances
Related party transactions of the Company were as follows:

Table of Contents

a. Incentive program	The Company loaned a total of ¥22,220 million, which was designated for use for the purchase of
SoftBank Group Corp. shares in August 2018 to certain executives of the Company as a part of the
incentive plan. The transactions between the Company and the related parties regarding thistransaction were as follows.
(Millions of yen)
Name of the company
or individual

Nature of relationship

Nature of transaction

Marcelo Claure

Director

Lending of loans
receivable(net of receipt)1, 3, 4, 5Interest receipt1, 3, 4, 5
Lending of loans
receivable(net of receipt)2, 3, 5Interest receipt2, 3, 5
Borrowing of loans
payable2
Interest payment2
Lending of loans
receivable(net of receipt)2, 3, 5Interest receipt2, 3, 5

Katsunori Sago

Ken Miyauchi

Message from Our CEO

Who We Are

Director

Director

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Amount oftransaction

Balance at period-end¥11,109213¥11,109
213

5,554
52

5,554
52

3,000
27

3,000
27

5,555
52

5,555
52

Financial Section

Corporate Information

221

Notes: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 forthe loans is May 31, 2028, and the borrower is required to make a single payment at maturity. However, SoftBank Group Corp. and theborrower 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 ofcash equal to or less than the then-outstanding principal amount of the loan, and SoftBank Group Corp. will account for the deposit asloan 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 forthe loans is May 31, 2023, and the borrowers are required to make a single payment at maturity. However, SoftBank Group Corp. andthe borrowers may agree to extend the term of the loan for two additional five-year periods to May 31, 2033, and the borrowers may
prepay all or any portion of the loans at any time voluntarily. Additionally, the borrowers may deposit with SoftBank Group Corp. any
amount of cash equal to or less than the then-outstanding principal amount of the loans, and SoftBank Group Corp. will account forthe 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 (such rights to receive the asset, “Additional Rights”).
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 Additional Rightsfrom all amounts that become due and payable by the borrowers is guaranteed by Masayoshi Son, who is Chairman & CEO of
SoftBank Group Corp.

Other than the preceding, the Company loaned ¥5,555 million to a non-Director executive of theCompany. The executive is not a related party who needs to be disclosed herein according to IAS 24.
The amount of the transactions between the Company and the executive recognized for the fiscal
year ended March 31, 2019 and the outstanding balance were as follows.

b. Other related party transactions(Millions of yen)(Thousands of U.S. dollars)Name of the company
or individual

Nature of relationship

Nature of transaction

WeWork6

Associate

Masayoshi Son(Son AssetManagement
LLC and 4 othercompanies)

Chairman & CEO of
SoftBank Group
Corp. and related
entities of which
he holds more than
one-half of thevoting rights

Lending of loans by
convertible notes
Advance payment forinvestment
Dividend paid from
SoftBank Group
Corp.
Advance payment for
temporary expense
Payment forequipment usage8
Guarantee deposits
refundedReceipt of capital
contribution from
Mistletoe to a
subsidiary10

Mistletoe VenturePartners, Inc.
(“Mistletoe”)9For the fiscal year ended March 31, 2019
(Millions of yen)
Nature of transaction

Amount oftransaction

Balance atperiod end

Lending of loans receivable (net of receipt)2, 3, 5Interest receipt2, 3, 5

¥5,55452¥5,554
52

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Related entity ofwhich a closefamily member ofChairman & CEO
of SoftBank Group
Corp. holds morethan one-half of thevoting rights

Fiscal year ended
March 31, 2019

As ofMarch 31, 2019

Amount oftransaction

Balance atperiod end¥111,550($1,000,000)7
165,690($1,500,000)7¥108,992($1,000,000)
166,485($1,500,000)

11,487

–

296

24

42

–

–

174

75

7611

6. The Company and WeWork, an associate of the Company that develops office sharing services, entered into an agreement for theCompany to acquire issued and to-be-issued share capital of WeWork in the fiscal year ended March 31, 2019. The total acquisition
price is $6.0 billion. Of this amount, the Company invested $2.5 billion by March 31, 2019 and made a payment of $2.0 billion in April,
2019. Transaction price was determined based on negotiation with reference to the corporate valuation by a third-party valuation
agency.
The impact of this agreement on the operating results as of March 31, 2020, has not been determined at present.
7. 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.
8. Equipment usage fees are determined based on the ratio of usage.
9. Taizo Son, relative of Chairman & CEO Masayoshi Son, holds over half of the voting rights of this company.
10. This represents the received amount of contribution to DEEPCORE TOKYO 1, and the terms and conditions of the transaction aredetermined as same as other limited liability union members.
11. The balance at period end represents the sum of the total investment amount and the cumulative investment partnership gains as ofMarch 31, 2019.

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For the fiscal year ended March 31, 2020

(Thousands of U.S. dollars)a. 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 ($101,002 thousand) in February 2020 as apart 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.

Name of the company
or individual

Nature of relationship

Nature of transaction

Marcelo Claure

Director

Lending of loans
receivable(net of receipt)1, 3, 4, 5Interest receipt1, 3, 4, 5
Lending of loans
receivable(net of receipt)2, 3, 5Interest receipt2, 3, 5
Repayment ofborrowing2
Interest payment2
Lending of loans
receivable(net of receipt)1, 3, 4, 5Interest receipt1, 3, 4, 5
Lending of loans
receivable(net of receipt)2, 3, 5Interest receipt2, 3, 5

Katsunori Sago

Director(Millions of yen)

Name of the company
or individual

Nature of relationship

Nature of transaction

Marcelo Claure

Director

Lending of loans
receivable(net of receipt)1, 3, 4, 5Interest receipt1, 3, 4, 5
Lending of loans
receivable(net of receipt)2, 3, 5Interest receipt2, 3, 5
Repayment ofborrowing2
Interest payment2
Lending of loans
receivable(net of receipt)1, 3, 4, 5Interest receipt1, 3, 4, 5
Lending of loans
receivable(net of receipt)2, 3, 5Interest receipt2, 3, 5

Katsunori Sago

Rajeev Misra

Ken Miyauchi

Director

Director

Director

SoftBank Group Corp. ANNUAL REPORT 2020

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod-end

¥

–
327

¥11,109
274

–
81

5,554
67

3,000
42

–
–

10,992
43

10,992
43

–
81

5,555
67

Table of Contents

Rajeev Misra

Ken Miyauchi

Director

Director

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod-end

–
3,005

$102,077
2,518

–
744

51,034616

27,566386––

101,002395

101,002395–
744

51,043616$

Notes:
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 forthe loans is May 31, 2028, and the borrower is required to make a single payment at maturity. However, SoftBank Group Corp. and theborrower 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 ofcash 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. 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 forthe loans is May 31, 2023, and the borrowers are required to make a single payment at maturity. However, SoftBank Group Corp. andthe borrowers may agree to extend the term of the loan for two additional five-year periods to May 31, 2033, and the borrowers may
prepay all or any portion of the loans at any time voluntarily. Additionally, the borrowers may deposit with SoftBank Group Corp. any
amount of cash equal to or less than the then- outstanding principal amount of the loans, and SoftBank Group Corp. will account forthe 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 (such rights to receive the asset, “Additional Rights”).
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 Additional Rightsfrom 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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Financial Section

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223

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)

Nature of transaction

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod-end¥¥5,55467700
7Lending of loans receivable (net of receipt)2, 3, 5Interest receipt2, 3, 5
Borrowing of loans payable2
Interest payment2

–
81
700
7

(Thousands of
U.S. dollars)

Nature of transaction

Lending of loans receivable (net of receipt)2, 3, 5Interest receipt2, 3, 5
Borrowing of loans payable2
Interest payment2

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod-end$$51,034
616
6,432
64

–
744
6,432
64

(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 ($303,005 thousand) in the same month. 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, 2020 and the outstandingbalance were as follows.
(Millions of yen)

Name of the company
or individualMarcelo Claure(Claure Holdings
LLC)

Rajeev Misra

Nature of relationship

Nature of transaction

Director and related
entities of which
he holds more than
one-half of thevoting rights
Director

Lending of loans
receivable(net of receipt)6, 7, 8, 9Interest receipt6, 7, 8, 9

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod-end¥16,488¥16,48843

43

16,48843

16,48843

Lending of loans
receivable(net of receipt)6, 7, 8, 9Interest receipt6, 7, 8, 9(Thousands of U.S. dollars)Name of the company
or individualMarcelo Claure(Claure Holdings
LLC)

Rajeev Misra

Nature of relationship

Nature of transaction

Director and related
entities of which
he holds more than
one-half of thevoting rights
Director

Lending of loans
receivable(net of receipt)6, 7, 8, 9Interest receipt6, 7, 8, 9

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod-end$151,502$151,502

395

395

151,502395

151,502
395

Lending of loans
receivable(net of receipt)6, 7, 8, 9Interest receipt6, 7, 8, 9

6. The 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 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 (such rights to receive the asset, “Additional Rights”).
9. Total shortfall calculated by deducting the amount received through fully exercised rights in respect to collateral and Additional Rightsfrom all amounts that become due and payable by the borrowers is guaranteed by Masayoshi Son, who is Chairman & CEO of
SoftBank Group Corp.
SoftBank Group Corp. ANNUAL REPORT 2020

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Financial Section

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224

b. Other related party transactions
Related party transactions of the Company were as follows:(Millions of yen)

Name of the company
or individual

Nature of relationship

Nature of transaction

WeWork1

Associate

Conversion of convertible

Fiscal year ended
March 31, 2020

As ofMarch 31, 2020

Amount oftransaction

Balance atperiod end(Thousands of U.S. dollars)Name of the company
or individual

Nature of relationship

Nature of transaction

WeWork1

Associate

Conversion of convertible

note into preferredstock2¥–stock2–

into preferred stock3–

payment for investment

141,674

44,161

investment4––

Ken Miyauchi

Taizo Son(SON Financial
Inc. and 3 othercompanies)10

SoftBank Group Corp. ANNUAL REPORT 2020–

1,200,0007–

1,300,0007

405,780

–

–

–

–

158,320

–

3,299

1,167

358

–

–

1,599

9

–

946

–

14,151

–

1,590

–

689

1,34212of credit facility5
Receipt of WeWork warrants

with exercise price of USD

Dividend paid from
SoftBank Group Corp.
Advance payment for
temporary expense
Payment forequipment usage8
Guarantee deposits
refunded
Guarantee forintergroup loans
Director
Dividend paid from
SoftBank GroupCorp.
Exercise of stockacquisition rights
Relative of Chairman &Dividend paid fromCEO of SoftBank Group SoftBank Group
Corp. and relatedCorp.
entities of which the
Receipt of capital
relative holds more than contribution fromone-half of the voting
Mistletoe to arightssubsidiary11

1,500,0007

Credit support for letter

Receipt of WeWork warrants

Chairman & CEO of
SoftBank Group
Corp. and related
entities of which
he holds more than
one-half of thevoting rights–

Advance payment for

Credit support for letter

Masayoshi Son(Son AssetManagement
LLC and 4 othercompanies)$

stock by advance

131,796

Advance payment for0.01 per share6$1,000,0007

Investment in preferredstock by advanceof credit facility5

Balance atperiod end

payment for investment

161,550

Investment in preferredinvestment4

Amount oftransaction

Conversion of advancepayment for investment

payment for investment

As ofMarch 31, 2020

note into preferred¥107,700

Conversion of advanceinto preferred stock3

Fiscal year ended
March 31, 2020

with Exercise Price of USD––

17,230

–

359

127

39

–

–

174

9

–

0.01 per share6

Masayoshi Son(Son AssetManagement
LLC and 4 othercompanies)

Ken Miyauchi

103

–

1,540

–

173

–

75

14612

Table of Contents

Taizo Son(SON Financial
Inc. and 3 othercompanies)10

Message from Our CEO

Who We Are

Dividend paid from
SoftBank Group Corp.
Advance payment for
temporary expense
Payment forequipment usage8
Guarantee deposits
refunded
Guarantee forintergroup loans
Director
Dividend paid from
SoftBank GroupCorp.
Exercise of stockacquisition rights
Relative of Chairman &Dividend paid fromCEO of SoftBank Group SoftBank Group
Corp. and relatedCorp.
entities of which the
Receipt of capital
relative holds more than contribution fromone-half of the voting
Mistletoe to arightssubsidiary11
Chairman & CEO of
SoftBank Group
Corp. and related
entities of which
he holds more than
one-half of thevoting rights

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

225

1. As 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. For 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 wasconverted into preferred stock for the fiscal year ended March 31, 2020.
4. The advance payment for investment which is not converted into preferred stock as of March 31, 2020. The outstanding balance is thefair 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 21. Investments
accounted for using the equity method” and in “(2) Credit guarantees” under “Note 53. Contingency.”
6. WeWork 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 21. Investments accounted for using the equity
method” and in “(b) Price risk, ii. Option contracts” in “(2) Financial risk management, a. Market risk” under “Note 30. Financial
instruments.”
7. 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.
8. Equipment usage fees are determined based on the ratio of usage.
9. Masayoshi Son has given a payment undertaking to a subsidiary of the Company in relation to a loan (the “guaranteed loan”) made bysuch 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. The balance ofthe guaranteed loan including accrued interest thereon as of March 31, 2020 is ¥181,215 million ($1,665,120 thousand.) Following thewinding up of the incentive scheme, if there is any outstanding balance of the guaranteed loan after other repayment obligations aremet, 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.
10. Taizo Son, relative of Chairman & CEO Masayoshi Son, holds over half of the voting rights of this company.
11. 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.
12. The balance at period end represents the total investment amount less cumulative investment partnership losses.as of March 31, 2020.

(2) Remuneration for executives
Remuneration for executives is as follows:

Short-term benefits���������������������������������������
Share-based payments ���������������������������������
Retirement benefits���������������������������������������
Total���������������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥5,4553,979
34¥9,468¥6,0776
16¥6,099$55,83955
148$56,042

Note:* Remuneration for major executives represents remuneration for the directors of SoftBank Group Corp. (including external directors).

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.
SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

With regard to the distributions made by the fund for the fiscal year ended March 31 2020, theexecutives are each exempt from paying any performance fees which are, in aggregate, equivalent to¥964 million ($8,858 thousand.)53. Contingency(1) Lending commitments
The components of lending commitments are as follows.
The lending commitments that the Company is engaged in are mainly shopping and cashing credit
limits provided to the credit card members in the SoftBank segment.

Lending commitments ���������������������������������
Funded���������������������������������������������������������
Unfunded�����������������������������������������������������

(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥4,184,284
327,376¥3,856,908¥5,083,157
511,092¥4,572,065$46,707,314
4,696,242$42,011,072

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 unfunded lending commitments are within 1 year because they are payable on
demand.
Expected credit loss that could arise resulting from the execution of the above loan commitments
are described in “b. Credit risk” in “(2) Financial risk management” under “Note 30. Financial
instruments.”
In addition, WeWork Investment Subsidiary will acquire the unsecured notes of up to $2.2 billion
which will be issued by WeWork on or after April 2020. As of March 31, 2020, the Company recorded
allowance for loss on valuation of ¥145,133 million ($1,333,575 thousand) (as of March 31, 2019: none)
for the loan commitment under “Other financial liabilities (current)” in the consolidated statement offinancial position. The details are described in “(3) Details and progress of the agreement between the
Company and WeWork.” under “Note 21. Investments accounted for using the equity method.”(2) Credit guarantees
Guarantees that the Company provides are as follows:

Total amount of financial guarantee
contract �����������������������������������������������������
Guarantee balance���������������������������������������

Message from Our CEO

Who We Are

Our Path to Continued Growth(Millions of yen)(Thousands of
U.S. dollars)

As ofMarch 31, 2019

As ofMarch 31, 2020

As ofMarch 31, 2020

¥15,030
7,810¥304,478
244,482$2,797,740
2,246,458

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

226

The Company has provided credit support (financial guarantee contract) for a $1.75 billion letter ofcredit facility to WeWork by financial institutions from the fiscal year ended March 31, 2020. As of
March 31, 2020, the Company recorded ¥190,453 million ($1,750,005 thousand) (as of March 31,
2019: none) of the total amount of the guarantee contract related to the financial guarantee contractand ¥145,338 million ($1,335,459 thousand) (as of March 31, 2019: none) of the guarantee balance.
In addition, as of March 31, 2020, the Company recorded allowance for financial guarantee
contract losses of ¥89,202 million ($819,645 thousand) (as of March 31, 2019: none) 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 21. Investments accounted for using the equity method.”
In addition, the Company’s wholly owned subsidiaries provide credit guarantees when financial
institutions and others provide funds.
Also, maturities of guarantee balance for credit guarantee are within 1 year because they arepayable on demand.
(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, filed a complaint in
the Court of Chancery 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. et al., 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
held by 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 October 22,
2019, by and among WeWork, SoftBank Group Corp., SoftBank Vision Fund (AIV M1) L.P.,
Adam Neumann and We Holdings LLC, 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 Courtof Chancery 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 ofcontract 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

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

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 in both actions seek declaratory relief, specific performance to close the WW
Tender Offer (or, in the alternate, compensatory damages) and an award of attorneys’ fees andcosts. The Company believes these actions are without merit and intends to vigorously contest
the plaintiffs’ claims.
b. Legal and administrative proceedings to which Sprint and its subsidiaries are 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 carryout, among other services, installation services for telecommunication lines for Japan Post
Group’s business sites existing countrywide. SoftBank Corp. performed such services, andupon JPiT’s request, SoftBank Corp. also performed services that exceeded the scope ofservices 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. andJPiT were unable to arrive at a settlement. Accordingly, SoftBank Corp. duly filed the lawsuit,claiming for payment of remuneration, for such additional services.
(b) O n April 30, 2015, JPiT filed a lawsuit against SoftBank Corp. and Nomura Research Institute,Ltd. (herein after referred to as “NRI”) as co-defendants.
In such lawsuit, JPiT alleges that SoftBank Corp. and NRI delayed performance, of the orderedservices related to the project for migration to the 5th PNET mentioned in (a) above, andalleges 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 claims in this lawsuit.
The order to consolidate lawsuit (b) above with lawsuit (a) above was made on July 29, 2015.
As a result of 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 in a purchase price of telecommunication line provided to JPiT.

Who We Are

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Financial Section

Corporate Information

227

(c) Legal and administrative proceedings to which Brightstar Corp. and its subsidiaries are party
Brightstar Corp. and its subsidiaries are party to various legal and administrative proceedings
globally and particularly in Latin American countries, including disputes relating to tax, labor,
contract, and other matters currently pending. These mainly consist of administrative
proceedings and lawsuits between tax authorities in Brazil and the subsidiary of Brightstar
Corp. involving failure by such entity to pay a portion of taxes owed due to, e.g., differencesin understanding between such entity and the tax authorities, for which such authorities haveclaimed an aggregate of approximately $110 million.
(4) Others
The Company may indemnify Sprint, T-Mobile and its subsidiaries against any losses incurred by Sprint
and its subsidiaries due to the cessation of T-Mobile’s and its subsidiaries’ access to the frequencies ofSprint and its subsidiaries under certain circumstances based on the business combination agreement inprinciple (the “Business Combination Agreement”, which the Company entered into with the parties,
including Sprint, T-Mobile 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 and February 20, 2020). The Company did not record any provision for this event as of March 31,
2020.
54. Purchase commitments
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 in November, 2019, but as several of
the closing conditions were not satisfied by the deadline of April 1, 2020, the Company withdrew andterminated the Tender Offer at that time. The details are described in “(3) Details and progress of theagreement between the Company and WeWork.” Under “21. Investments accounted for using theequity method.”
SoftBank Corp., NAVER Corporation, Z Holdings Corporation (a consolidated subsidiary of SoftBank
Corp.), and LINE Corporation (a consolidated subsidiary of NAVER Corporation), have on December 23,
2019 entered into a business integration agreement, which is the legally-binding agreement regarding
the Business Integration between ZHD and its subsidiaries and LINE Corporation and its subsidiaries(“Business Integration”). SoftBank Corp. and NAVER Corporation have 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, the Company and
NAVER Corporation or its wholly owned subsidiary will implement the joint tender offer for the purposeof taking LINE Corporation private, and an absorption-type merger will be conducted between
Shiodome Z Holdings Co., Ltd.* (the “Merger”) as the company ceasing to exist in the Merger and LINE
Corporation as the surviving company, and 180,882,293 new LINE Corporation shares will be issued inconsideration of the Merger, all of which will be allocated to SoftBank Corp.
The Business Integration is subject to receipt of required competition law and foreign exchange law

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

and other clearances and permits.
The details are described in “55. Additional Information (Business Integration of Z Holdings
Corporation and LINE Corporation).”Note:* Shiodome Z Holdings Co., Ltd. was reorganized into a limited liability company as of March 31, 2020.

Other than the above, the Company had commitments to purchase services and goods of¥1,244,242 million ($11,432,895 thousand) as of March 31, 2020 (¥3,044,846 million as of March 31,2019). Purchase commitments are mainly outstanding contracts related to investments, purchases oftelecommunications equipment, and purchases of mobile devices. There were no leases not yet
commenced to which the Company is committed in the balance of purchase commitment. The details
are described in “(4) Leases not yet commenced to which the Company is committed” under “Note 19.
Leases”
As of March 31, 2020, purchase commitments of Sprint are reclassified as a disposal groupclassified as held for sale.
55. Additional information(Business Integration of Z Holdings Corporation and LINE Corporation)
SoftBank Corp., NAVER Corporation (“NAVER”, and SoftBank and NAVER are collectively referred to as
the “Proposing Parties”), Z Holdings Corporation, a consolidated subsidiary of SoftBank (“ZHD”), andLINE Corporation, a consolidated subsidiary of NAVER (“LINE”), have been discussing and evaluating abusiness integration between ZHD and its subsidiaries (the “ZHD Group”) and LINE and its subsidiaries(the “LINE Group”) (the “Business Integration”.)
On December 23, 2019, the four companies have entered into a business integration agreement,
which is a definitive and legally-binding agreement regarding the Business Integration (the “Definitive
Integration Agreement”), and on the same day, the Proposing Parties have entered into a legallybinding transaction agreement regarding the Definitive Integration Agreement and joint ventureagreement (the “Joint Venture Agreement”).
As one step in the series of transactions to realize the Business Integration, the Proposing Parties
have decided to jointly conduct a tender offer in Japan and the United States (the “Joint Tender Offer”).
ZHD, the publicly listed integrated company following the Business Integration (the “Combined
Company”), is expected to be a consolidated subsidiary of the Company. The Business Integration isconditioned on the receipt of required competition law and foreign exchange law approvals and otherclearances and permits required by applicable law and regulation, which it is expected to be completed
by October, 2020. The details of the method of Business Integration is described in “(2) Summary of theBusiness Integration.”

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(1) Purpose of the Business Integration
The Business Integration will be conducted on an equal basis by ZHD and LINE with the aim of forminga business group that can overcome fierce domestic and global competition through the ZHD Groupand the LINE Group bringing together their business resources and through the Combined Company
group, following the Business Integration, pursuing synergies in their respective business areas as wellas implementing business investment targeting growth in the areas of AI, commerce, Fintech1,
advertising, and O2O2 and other new business areas.
Notes:
1. Fintech is a term made up of “finance” and “technology,” and it refers to activities to attempt to resolve inefficiencies in existing
financial services and to innovate financial services through the utilization of smart devices including smartphones and tablets andtechnologies that utilize big data.
2. O2O stands for “Online to Offline,” and it refers to measures for online (internet)-based information to influence offline (real world)purchasing activities(2) Summary of the Business Integration
In the Definitive Integration Agreement, SoftBank, NAVER, ZHD, and LINE agreed broadly on thefollowing method of Business Integration. Please also refer to “Attachment 1 Schematic Diagram of theBusiness Integration” for the method of Business Integration.
① SoftBank and NAVER or its wholly owned subsidiary (a Japanese entity) (NAVER and such wholly
owned subsidiary, the “NAVER Offerors”) will implement the Joint Tender Offer for the purposeof taking LINE private.
② In the event that, following the completion of the Joint Tender Offer, a portion of the Target
Shares 1 have not been tendered and acquired, SoftBank and the NAVER Offerors will implement
squeeze-out procedures (with the intended result that post-squeeze out, SoftBank and the
NAVER Offerors shall be the only shareholders of LINE) using a reverse share split or othermethods permitted by law to take LINE private (the “Squeeze-out”, and together with the Joint
Tender Offer, the “Transaction to Take LINE Private”), and deliver consideration for the Squeezeout in the same amount as the tender offer price to LINE shareholders in the Joint Tender Offer.
③ LINE will make a tender offer for ZHD shares (the “Tender Offer for ZHD Shares”)2 for the
purpose of acquiring all of ZHD shares (the “Shares to be Tendered”) held by Shiodome Z
Holdings Corporation (“Shiodome Z Holdings”), which is a consolidated subsidiary of SoftBank3.
④ Prior to the settlement of the Tender Offer for ZHD Shares, LINE will issue a corporate bond with
SoftBank as the underwriter for the underwriting amount equivalent to the aggregate amountof the purchase price for the Tender Offer for ZHD Shares in order to secure the purchase funds
for Tender Offer for ZHD Shares (the “Bond Issuance”).

SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO⑤ After completion of the settlement for the Tender Offer for ZHD shares, an absorption-typemerger (the “Merger”) will be conducted between Shiodome Z Holdings as the company
ceasing to exist in the Merger and LINE as the surviving company. Assuming the total number ofissued and outstanding LINE Shares and shares of ZHD are those of September 30, 2019(excluding treasury shares), 180,882,293 new LINE Shares will be issued in consideration of the
Merger4, all of which will be allocated to SoftBank, which is the parent of Shiodome Z Holdings.
⑥ One day prior to the date of commencement of settlement for the Tender Offer for ZHD shares,
SoftBank and the NAVER Offerors will undertake a shareholding adjustment transaction in orderto make the ratio of voting rights in LINE held by SoftBank and the NAVER Offerors 50:50
immediately after the Merger becomes effective, which transaction shall take the form of atransfer of a portion of LINE Shares held by SoftBank from SoftBank to the NAVER Offerors (the“JV Conversion Transaction”). Through the Merger and the JV Conversion Transaction, LINE will
become a consolidated subsidiary of SoftBank.
⑦ At the same time the Merger becomes effective, LINE will contribute all of its business (except
for its shares in ZHD and the status, rights, and obligations in connection with the contracts
entered into by LINE with respect to the Business Integration and any other rights and obligations specified in the absorption-type demerger agreement) to a newly formed wholly owned
subsidiary (the “LINE Successor”) in an absorption-type demerger (the “Corporate Demerger”).
⑧ After the Corporate Demerger becomes effective, a share exchange will be conducted with ZHD
shares as consideration whereby ZHD becomes the wholly owning parent company and the LINE
Successor becomes the wholly owned subsidiary company (the “Share Exchange”).
Notes:
1. Line common shares, share options and the convertible bonds, and American depositary receipts (excluding the shares held by
NAVER and the treasury shares held by Line are collectively referred to as “Target Shares.”
2. As disclosed in the announcement dated November 18, 2019, by SoftBank titled “Announcement of Transfer of Shares of Z
Holdings Corporation through Secondary Distribution to Shiodome Z Holdings Co., Ltd.”, in connection with the Business
Integration, SoftBank transferred its shares in ZHD to its wholly owned consolidated subsidiary Shiodome Z Holdings, with an
execution date of December 18, 2019. In addition, Shiodome Z Holdings Co., Ltd. was reorganized into a limited liability
company as of March 31, 2020.
3. Because the Tender Offer for ZHD Shares is scheduled to be conducted approximately nine months after today and will be
conducted in accordance with an agreement between SoftBank and NAVER to transfer the Shares to be Tendered from
Shiodome Z Holdings to LINE, the method and terms of the transfer of the Shares to be Tendered from Shiodome Z Holdings
to LINE may change to the extent permitted by applicable law and regulation. In addition, the Tender Offer for ZHD Shares will
not be conducted, directly or indirectly, in the United States, and will not be extended to, or for the benefit of, shareholders in
the United States, who are definitively excluded from the Tender Offer for ZHD Shares.
4. However, based on the result of the Squeeze-out or if there is any other reason that requires reasonable adjustment, SoftBank
and NAVER intend to make appropriate adjustments according to such result or reason through a separate agreement.

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229

The details of the method of Business Integration are described in “Schematic Diagram of theBusiness Integration” below.

① The Joint Tender Offer (Joint tender offer for LINE shares, etc.) and ② the Squeeze-out
ZHD Minority
Shareholders

Schematic Diagram of the Business Integration

100%

As of December 23, 2019
ZHD Minority
Shareholders

SoftBank

LINE Minority
Shareholders

Shiodome Z
Holdings

72.6%

55.4%

LINE

NAVER Offerors

86.3%
LINE

44.6%

ZHD

100%

44.6%

55.4%

13.7%

Shiodome Z
Holdings

NAVER

27.4%

100%

LINE Minority
Shareholders

SoftBank

Yahoo Japan
Corporation

ZHD① SoftBank and the NAVER Offerors will jointly conduct the Joint Tender Offer for the purpose of
taking LINE private. The commencement of the Joint Tender Offer is targeted to occur during theperiod from May to June 2020, and the Tender Offer Period is intended to be at least 30
business days, but it is difficult to accurately predict the amount of time required for procedures.
with the competition authorities in Japan and abroad, and therefore the detailed schedule of the
Joint Tender Offer will be announced as soon as it is finalized. The aggregate amount of thepurchase price is expected to be approximately ¥372.0 billion ($3,418 million), with SoftBank
and the NAVER Offerors each purchasing 50%.

100%
Yahoo Japan
Corporation② In the event that the Joint Tender Offer is completed and all of the Target Shares have not beenacquired in the Joint Tender Offer, the Squeeze-out using a reverse share split or other methods
will be deployed to take LINE private and to make SoftBank and the NAVER Offerors the only
shareholders of LINE, and will provide LINE shareholders with the same amount as the Tender
Offer Price in the Joint Tender Offer.

SoftBank Group Corp. ANNUAL REPORT 2020

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Corporate Information230

③ The Tender Offer for ZHD Shares and ④ the Bond Issuance (Issuance of corporate bond by LINE)ZHD Minority
Shareholders

SoftBank

NAVER Offerors

13.7%
Shiodome Z
Holdings⑤ The Merger (Merger of Shiodome Z Holdings and LINE) and ⑥ the JV Conversion Transaction(Transaction to adjust the voting rights ratio in LINE held by SoftBank and the NAVER Offerors to
50:50)

86.3%

ZHD Minority
Shareholders

SoftBank

LINE

50%
Shiodome Z
Holdings

55.4%

NAVER Offerors

50%
LINE

44.6%
ZHD

55.4%

100%

ZHD

Yahoo Japan
Corporation

100%③ LINE will conduct the Tender Offer for ZHD Shares for the purpose of acquiring all ZHD shares
held by Shiodome Z Holdings. The commencement of the Tender Offer for ZHD Shares istargeted to occur in early September 2020, but it is difficult to accurately predict the amount oftime required for procedures with the competition authorities in Japan and abroad, andtherefore, the detailed schedule of the Tender Offer for ZHD Shares will be announced as soon
as it is finalized. In addition, the aggregate amount of the purchase price will be the number ofshares to be purchased (2,125,366,950 shares) multiplied by the tender offer price pertaining to
the Tender Offer for ZHD Shares (¥348 ($3.2) (or, if the lesser of (i) the closing price of ZHD
shares on the First Section of the Tokyo Stock Exchange on the business day before the date ofcommencement of the Tender Offer for ZHD Shares and (ii) the simple average closing price overthe past one month to the same date, discounted by 5% (rounded down to the nearest yen), is
below ¥348 ($3.2), then the amount of (i) or (ii), whichever is less than ¥348 ($3.2)); however,the specific amount is still to be finalized).
④ Prior to the settlement of the Tender Offer for ZHD Shares, LINE will issue bonds with SoftBankas the underwriter in order to secure the purchase funds for the Tender Offer for ZHD Shares.
SoftBank and NAVER have agreed that the amount to be paid for the Bond Issuance will beequivalent to the aggregate amount of the purchase price in the Tender Offer for ZHD Shares.

SoftBank Group Corp. ANNUAL REPORT 2020

44.6%

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Yahoo Japan
Corporation⑤ After completion of the settlement of the Tender Offer for ZHD Shares, the Merger will be
conducted with Shiodome Z Holdings as the company ceasing to exist in the Merger and LINE as
the surviving company. Assuming the total number of issued and outstanding LINE Shares andshares of ZHD is that of September 30 2019 (excluding treasury shares), 180,882,293 new LINE
Shares will be issued in consideration of the Merger, all of which will be allocated to SoftBank,
which is the parent of Shiodome Z Holdings.
⑥ One day prior to the settlement start date of the Tender Offer for ZHD Shares, SoftBank and the
NAVER Offerors will undertake a shareholding adjustment transaction in order to make the ratioof voting rights in LINE held by SoftBank and the NAVER Offerors 50:50 immediately after the
Merger becomes effective, which transaction shall take the form of a transfer by SoftBank of a
portion of the LINE Shares held by SoftBank to the NAVER Offerors immediately after the Merger
becomes effective. Through the Tender Offer for ZHD Shares and the JV Conversion Transaction,
LINE will become a consolidated subsidiary of SoftBank.

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⑧ The Share Exchange (Share exchange between ZHD and LINE)⑦ The Corporate Demerger (Demerger by LINE of all of its business to the LINE Successor)
ZHD Minority
Shareholders

SoftBank

ZHD Minority
Shareholders

NAVER Offerors

50%

50%

SoftBank

NAVER Offerors

50%

JV(LINE)JV(LINE)

34.7%
55.4%

44.6%
ZHD

100%
100%

Yahoo Japan
Corporation

LINE Successor⑦ At the same time the Merger becomes effective, LINE will contribute all of its business (except
for its shares in ZHD and the status, rights, and obligations in connection with the contracts
entered into by LINE with respect to the Business Integration and any other rights and obligations specified in the absorption-type demerger agreement) to the LINE Successor to be newly
established by LINE in the Merger.

SoftBank Group Corp. ANNUAL REPORT 2020

65.3%

ZHD

100%
Yahoo Japan
Corporation

50%

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Message from Our CEO

100%
LINE Successor⑧ After the Corporate Demerger becomes effective, a share exchange will be conducted with ZHD
shares as consideration whereby ZHD becomes the wholly owning parent company and the LINE
Successor becomes the wholly owned subsidiary company. The exchange ratio for the Share
Exchange (allotted ratio of ZHD Shares to be exchanged for one share of the LINE Successor) is
11.75, and the Share Exchange is scheduled to be effective in October 2020.

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After the Business Integration

b. Parties to the Merger(a) Company ceasing to exist in the Merger
SoftBank

NAVER Offerors

50%
ZHD Minority
Shareholders

50%
JV(LINE)⑥M
 ajor shareholders and shareholding
ratios (as of September 30, 2019)

65.3%

34.7%

Yahoo Japan
Corporation

Shiodome Z Holdings Co., Ltd.
1-9-1, Higashi-Shinbashi, Minato-ku, Tokyo
Kazuhiko Fujihara, Representative Director
Business preparation company¥10 million ($92 thousand)(as of March 31, 2019)
SoftBank Corp. 100%

Note:
Shiodome Z Holdings Co., Ltd. was reorganized into a limited liability company as of March 31, 2020.

ZHD(Combined Company)

100%① Name② Address③ Name and title of representative④ Nature of business⑤ Share capital

100%
LINE Successor(b) Surviving company in the Merger
For an overview of LINE, which will be the surviving company in the Merger, please refer to“(a) Outline of subsidiary subject to change” in “a. Parties involved in the Business
Integration” under “(3) Outline of the Parties.”(c) Status of the surviving company after the Merger(3) Outline of the Parties
a. Parties involved in the Business Integration(a) Outline of subsidiary subject to change① Name② Address③ Name and title of representative④ Nature of business⑤ Share capital⑥ Major shareholders and shareholding
ratios (as of June 30, 2019)

SoftBank Group Corp. ANNUAL REPORT 2020

① Name② Address③ Name and title of representative
LINE Corporation
4-1-6 Shinjuku, Shinjuku-ku, Tokyo
Takeshi Idezawa,
Representative Director and President
Advertising service based on the mobile
messenger application “LINE,” core businesses
including the sales of stamp and game service,and strategic businesses including Fintech, AI,
and commerce service.
¥96,535 million ($887,026 thousand)(as of September 30, 2019)
NAVER
72.64%MOXLEY & CO LLC
3.64%
JAPAN TRUSTEE SERVICES BANK, LTD. 2.11%

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Message from Our CEO④ Nature of business⑤ Share capitalLINE Corporation
4-1-6 Shinjuku, Shinjuku-ku, Tokyo
Takeshi Idezawa,
Representative Director and President
Advertising service based on the mobile
messenger application “LINE,” core businesses
including the sales of stamp and game service,and strategic businesses including Fintech, AI,
and commerce service.
¥96,535 million ($887,026 thousand)(as of September 30, 2019)

Note:
The status prior to the Corporate Demerger becoming effective is shown. LINE plans to transfer all of its business to the LINE
Successor through the Corporate Demerger, and after the Corporate Demerger becomes effective, LINE (the JV) will hold ZHD(the Combined Company) shares in order to run the business that controls and manages ZHD business activities and to run
associated operations. In addition, the name of LINE (the JV) will be changed after the Corporate Demerger becomes effective,
but the name after the change has not yet been decided.

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c. Outline of the parties(a) Wholly owning parent company in the Share Exchange and the wholly owned subsidiary in
the Share Exchange① Company
name② Address

Wholly owned subsidiarycompany in Share Exchange
Preparatory corporation for
demerger of LINETokyo Garden Terrace Kioi-cho Kioi
4-1-6 Shinjuku Shinjuku-ku,
Tower, 1-3, Kioicho, Chiyoda-ku, Tokyo
Tokyo
Kentaro Kawabe, Representative Director, Takeshi Idezawa, Representative
President and CEO
Director① Company name
② Address

Wholly owning parent company
in Share Exchange
Z Holdings Corporation③ Name andtitle ofrepresentative④ Nature ofManagement of group companies andbusinessrelated operations⑤ Capital¥237,404 million ($2,181,421 thousand)(as of September 30, 2019)⑥ Majorshareholders
andshareholding
ratios*(as of
September
30, 2019)(b) Outline of the wholly owning parent company in share exchange after the Share Exchange

Company for preparation ofoperations¥150 million ($1,378 thousand)(as of the founding date ofDecember 13, 2019)
SoftBank Corp.
44.6% LINE Corporation
100%
STATE STREET BANK AND TRUST 3.0%
COMPANY 505325
SSBTC CLIENT OMNIBUS
1.9%
ACCOUNTJAPAN TRUSTEE SERVICES BANK, 1.8%
LTD. (Trust account)
The Master Trust Bank of Japan,
1.8%
Ltd. (Trust account)
GOLDMAN, SACHS & CO. REG
1.7%
JP MORGAN BANK
1.5%
LUXEMBOURG S. A. 1300000
JP MORGAN CHASE BANK
1.2%
385632BBH FOR FIDELITY LOW- PRICED
1.1%
STOCK FUND (PRINCIPAL ALL
SECTOR SUBPORTFOLIO)
JAPAN TRUSTEE SERVICES BANK, 1.0%
LTD. (Trust account 9)③N ame and title ofrepresentative④ Nature of business⑤ Share capital

Z Holdings Corporation
Tokyo Garden Terrace Kioi-cho Kioi Tower, 1-3, Kioicho,
Chiyoda-ku, Tokyo
Takeshi Idezawa, Representative Director and Co-CEO
Kentaro Kawabe, Representative Director, President and Co-CEO
Management of group companies and related operations
Not yet finalized.

(4) Impact on the future performance
Impact on the results of our business and operations due to the Joint Tender Offer and the Business
Integration are not determined.
56. Subsequent events(1) Completion of merger of Sprint and T-Mobile
On April 1, 2020, the merger of Sprint and T-Mobile in an all-stock transaction (“the Transaction”)) wascompleted under a definitive agreement which the Company, Sprint, T-Mobile, Deutsche Telekom AG(“Deutsche Telekom”), and the other parties entered into (the “Business Combination Agreement”.)
In connection with the completion of the Transaction, the parties waived the condition to closing
set forth in the Business Combination Agreement with respect to the final consent of the California
public utility commission (the “CPUC”), to the extent required such that all regulatory approvals
required for the Transaction to be completed on April 1, 2020 were satisfied or waived as of such date.
Subsequently, the CPUC approved the Transaction on April 16, 2020.
Upon completion of the Transaction, from April 1, 2020, Sprint is no longer a subsidiary of theCompany and the combined company T-Mobile US, Inc. (“New T-Mobile”) became an equity method
associate of the Company with an approximately 24% shareholding (fully diluted basis).

Note:*ZHD is also holding 60,021,000 treasury shares in addition to the above.

a. Purpose of merger
The Company assumes that the transaction will benefit the Company’s shareholders by giving
the Company an equity interest in a stronger and more competitive combined company thatitself will benefit from significant expected synergies.
The Company assumes that New T-Mobile will be a force for positive change in the U.S.
wireless, video, and broadband industries, and will have lower costs, greater economies of scale,and the resources to provide U.S. consumers and businesses with lower prices, better quality,
unmatched value, and greater competition.
b. The Transaction details
The Transaction is structured as an all-stock transaction involving two consecutive and related
mergers.

SoftBank Group Corp. ANNUAL REPORT 2020

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(b) Post-transaction(a) Merger
SoftBank GroupCorp.

T-Mobile Public=

Sprint Public

Starburst I, Inc. &Galaxy Investment
Holdings, Inc.

Deutsche
Telekom AG

Deutsche TelekomAGapprox.
43% ==T-Mobile US, Inc.

Former
T-Mobile Public

T-Mobile US, Inc.
(“New T-Mobile”)

Huron Merger Sub LLC(“T-Mobile Merger Co.”)

2

FormerSprint Public

approx.
24% =1

Sprint Corporation

Huron Merger Sub LLC(“T-Mobile Merger Co.”)

Superior Merger Sub Corp.
(“T-Mobile Merger Sub”)

Sprint Corporation

Beneficial ownership represented by: =Beneficial ownership represented by: =On April 1, 2020, each of Starburst I, Inc. and Galaxy Investment Holdings, Inc. merged with andinto Huron Merger Sub LLC, a U.S. subsidiary owned directly by T-Mobile (“T-Mobile MergerCo.”), with T-Mobile Merger Co. as the surviving company (the “HoldCo Mergers”).
Immediately following the HoldCo Mergers, Superior Merger Sub Corp. (“T-Mobile MergerSub”), a U.S. subsidiary owned directly by T-Mobile Merger Co., merged with and into Sprint,
with Sprint as the surviving company (such merger together with the HoldCo Mergers, the“Merger Transactions”).
As a result of the Merger Transactions:• Sprint became an indirect wholly-owned subsidiary of New T-Mobile.
• Each option to purchase Sprint common shares (other than under Sprint’s employee stock
purchase plan) was converted into an option to purchase common stock of New T-Mobile.

SoftBank Group Corp. ANNUAL REPORT 2020

SoftBank
Group Corp.

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Message from Our CEO

Under the Transaction, the share exchange ratio is approximately at 9.75 Sprint shares for each
T-Mobile share. In the meantime, the Company surrendered to New T-Mobile an aggregate of
48,751,557 shares of New T-Mobile common stock, of the 353,357,607 shares to be received
from the Transaction, effective immediately following the closing of the Transaction. Immediately
following the closing, and after giving effect to such surrender, Deutsche Telekom and theCompany hold approximately 43% and 24%, respectively, of New T-Mobile common shares,
with the remaining approximately 33% held by public shareholders (each percentage is based on
fully diluted basis and indirect holdings are included). This resulted in an effective exchange ratio,
immediately following the closing of the Transaction, of the equivalent of approximately 11.00
Sprint shares (approximately 11.31 shares for Sprint stock owned by the Company and its
subsidiaries) for each share of T-Mobile common stock. If the trailing 45-day volume-weighted
average price per share of New T-Mobile common stock on the NASDAQ Global Select Market isequal 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, New T-Mobile will re-issue tothe Company, for no additional consideration, a number of shares of New T-Mobile common
stock equal to the abovementioned number of shares to be surrendered (the “contingent
consideration”), subject to the terms and conditions included as part of the Business
Combination Agreement.
New T-Mobile Board of Directors consists of 14 directors, 9 nominated by Deutsche Telekom,
and 3 nominated by the Company, however after New T-Mobile’s 2020 annual meeting ofshareholders, it is expected to be 9 nominated by Deutsche Telekom and 4 nominated by theCompany.
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Subject to certain exceptions, (i) New T-Mobile shares beneficially owned by the Company
and its subsidiaries will be subject to a proxy granted to Deutsche Telekom (pursuant to which
the Company will exercise the voting rights in respect of the shares of New T-Mobile held directly
or indirectly by the Company as directed by Deutsche Telekom), in order to enable Deutsche
Telekom to consolidate New T-Mobile into Deutsche Telekom’s consolidated financial statements
following the consummation of the Merger Transactions, certain transfer restrictions, and a rightof first refusal in favor of Deutsche Telekom; and (ii) New T-Mobile shares beneficially owned by
Deutsche Telekom and its controlled affiliates will be subject to a right of first refusal in favor of
the Company and certain transfer restrictions. Furthermore, the Company and Deutsche Telekom(in each case, including certain of their respective affiliates) will be subject to certain noncompete restrictions until such time as their respective ownership in New T-Mobile has been
reduced below an agreed threshold.
The Company has also agreed to indemnify New T-Mobile and its subsidiaries following theclosing of the Transaction against (i) any monetary losses arising out of or resulting from certain
specified matters and (ii) the loss of value to New T-Mobile and its subsidiaries arising out of or
resulting from cessation of access to spectrum of Sprint or its subsidiaries under certain
circumstances.
c. About New T-Mobile(a) Name(b) Headquarters(c) Name and title of representative(d) Nature of business(e) Major shareholders and their holdings(fully diluted basis*)

T-Mobile US, Inc.
Bellevue, Washington
Overland Park, Kansas (second headquarters)
Chief Executive Officer
Mike Sievert
Telecommunications
Deutsche Telekom: approximately 43%
approximately 24%
The Company:

Note:*The figures are calculated based on number of shares including fully diluted shares (including indirect holdings).

e. Impact on the consolidated financial results
Upon completion of the Transaction, for the fiscal year ending March 31, 2021, the amount of¥750,000 million ($6,891,482 thousand) before tax effect arising from the difference between
the total fair value of acquired New T-Mobile shares (304,606,049 shares) and contingent
consideration (48,751,557 shares) as of April 1, 2020 and the carrying amount of Sprint in the
consolidated statement of income of the Company will be recorded as a gain relating to loss ofcontrol in “Net income from discontinued operations.”(2) Partial implementation of the ¥4.5 trillion ($41 billion) program to repurchase treasury
stock and reduce debt
As announced in “SoftBank announces ¥4.5 trillion ($41 billion) program to repurchase shares andreduce debt” on March 23, 2020 (the “Announcement”,) the Company decided on a policy of the saleor monetization of up to ¥4.5 trillion ($ 41 billion) of assets held by the Company over the four quarters
following the Announcement.
As a part of this program, the Company executed “a. Conclusion of the prepaid forward contracts
using Alibaba shares,” “c. Implementation of the partial transfer of SoftBank Corp.’s shares,” “d.
Commencement of the transactions to transfer T-Mobile shares” for the purpose of selling or monetizing of the assets held by the Company.
As described in the Announcement, the Company plans to use the funds raised from the abovetransactions for the repurchase of up to ¥2 trillion ($18.4 billion) of its common stock (including “b.
Approval to repurchase of treasury stock”) with the balance to be used for debt redemptions, bondbuybacks and increase cash reserves. Until they are used for the planned share repurchase and debt
reductions, the Company may invest the funds raised in high quality, highly liquid securities and other
instruments in addition to holding in cash and deposits, while being firmly committed to its existing
financial policies on LTV and cash on hand. In addition, of those acquired funds, approximately ¥1trillion ($9.2 billion) is invested in highly liquid stocks as of the Company’s filing date of the securities
report for the fiscal year ended March 31, 2020.

d. Number of shares held by the Company before and after the Merger Transactions(a) Number of shares of Sprint held
before the Merger Transactions(as of March 31, 2020)(b) N umber of shares of New T-Mobile
held after the Merger Transactions1

3,445,374,483 shares(number of voting rights: 3,445,374,483)(voting ratio: 83.7%)
304,606,049 shares(number of voting rights: 304,606,049)2(voting ratio: approximately 24% (fully diluted
basis))

Notes:
1. Figures are calculated based on number of shares including indirect holdings (including fully diluted shares related to
warrants).
2. The voting rights will be subject to proxy arrangements granted in favor of Deutsche Telekom.

SoftBank Group Corp. ANNUAL REPORT 2020

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Message from Our CEO

a. Conclusion of the prepaid forward contracts using Alibaba shares
From April to June, 2020, West Raptor Holdings 2, LLC (“WRH2 LLC”), Skybridge LLC, andSkylark 2020 Holdings Limited (“Skylark Limited”) wholly-owned subsidiaries of the Company,
entered into several prepaid forward contracts using Alibaba shares with financial institutions
and procured aggregated amount of $13.7 billion.
(a) Forward Contract: Procured amount $1.5 billion
The settlement is expected in April, 2024. The share price and the number of Alibaba shares
settled by the prepaid forward contract are fixed regardless of changes in market share price inthe future.
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(b) Floor Contract: Procured amount $1.5 billion
The settlement is expected in December, 2023 and January, 2024. The number of Alibaba shares
settled by the prepaid forward contract is determined by reference to the market price of theshares at the valuation dates prior to the settlement dates. A floor is set for the price of shares
settled.

b. Approval to repurchase of treasury stock
On May 15, 2020, SoftBank Group Corp., at the Board of Directors meeting, resolved therepurchase of its treasury stock pursuant to Article 156 of the Companies Act of Japan as
applied pursuant to Article 165, Paragraph 3. The details are as follows:
Details of the repurchase(c) Collar Contract: Procured amount $8.5 billion
The settlement is expected from January, 2022 to September 2022. The number of Alibaba
shares settled by the prepaid forward contract is determined by reference to the market price ofthe shares at the valuation dates prior to the settlement dates. A cap and a floor are set for the
price of shares settled.
(d) Collar Contract and Call Spread Procured amount $2.2 billion
The settlement is expected from May, 2024 to June 2024. The number of Alibaba shares settled
by the prepaid forward contract is determined by reference to the market price of the shares atthe 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 contract, the Call Spread (combination of longposition of call option and short position of call option with different strike prices) contract isentered into in preparation for Alibaba shares price rise. A portion of the procured amount isused for the payment of option premium.
The above prepaid forward contracts are classified as hybrid financial instruments withembedded derivatives and the embedded derivatives are measured at fair value and the Call
Spread is measured at fair value as well.
WRH2 LLC, Skybridge LLC, and Skylark Limited have the option (“cash settlement option”) to
settle all of the prepaid forward contracts by either delivering cash or a combination of cash andAlibaba shares. If WRH2 LLC, Skybridge LLC, and Skylark Limited elect the cash settlement
option, the cash equivalent to the fair value of the number of shares for the settlement, which isdetermined by the market price of the shares, will be paid.
Alibaba shares held by WRH2 LLC, Skybridge LLC, and Skylark Limited are pledged ascollateral in accordance with all of the prepaid forward contracts, and the Company granted theright of use to financial institutions, however the collateral can be released by cash settlement at
the Company’s discretion. 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. The carrying amount of Alibaba shares pledged as collateral by
the Company as of March 31, 2020 is ¥364,170 million ($3,346,228 thousand.)The impact of the transactions on the Company’s consolidated financial results for the fiscal
year ending March 31, 2021 has not been determined.

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Message from Our CEO(a) Class of shares to be repurchased(b) Total number of repurchased shares(c) Total repurchase amount(d) Repurchase period

Common stock of SoftBank Group Corp.
135,000,000 shares (maximum)(6.70% of the total number of shares issued(excluding treasury stock))¥500.0 billion ($4,594.3 million) (maximum)
From May 18, 2020 to March 31, 2021

c. Implementation of the partial transfer of SoftBank Corp.’s shares
SoftBank Group Corp. decided to transfer 240,000,000 shares, a portion of 3,182,919,470
shares of common stock of its subsidiary SoftBank Corp. (the “Transfer”) which it holds throughits wholly owned subsidiary SoftBank Group Japan Corporation (“SBGJ”).
The closing of the sale was completed on May 22, 2020 at the transfer price of ¥310,200 million($2,850,317 thousand.)(a) Outline of SoftBank Corp.
(a) Name(b) Headquarters(c) Name and title of representative(d) Nature of business(e) Major shareholders and their holdings(fully diluted basis*)

SoftBank Corp.
1-9-1 Higashi-shimbashi, Minato-ku, Tokyo
Ken Miyauchi, President & CEO
Provision of mobile communications services,sale of mobile devices, provision of fixed-line
telecommunications and Internet Service
Providers (“ISPs”)¥204,309 million ($1,877,322 thousand)(as of March 31, 2020)(b) N umber of shares to be transferred and number of shares indirectly held by SoftBank Group
Corp. through SBGJ before/after the Transfer(a) Number of shares held before theTransfer(b) Number of shares planned to betransferred(c) Number of shares to be held after theTransfer

Who We Are

Our Path to Continued Growth

3,182,919,470 shares(Shareholding ratio: 67.1%)
240,000,000 shares(Shareholding ratio: 5.0%)
2,942,919,470 shares(Shareholding ratio: 62.1%)

Management: The Foundation Supporting Our Growth

Financial Section

Corporate Information

237

Note:* Shareholding ratios indicate the ratio of the number of shares to the total number of shares outstanding (excluding treasury
stock) of 4,741,145,170 as of March 31, 2020, as disclosed by SoftBank Corp. at “Consolidated financial report for the fiscal
year ended March 31, 2020.”(b) Number of shares to be transferred and transaction price(i) Shares to be transferred in the U.S.
public offering by T-Mobile andtransaction price thereof(c) Impact on consolidated financial results
As SoftBank Corp. will continue to be a subsidiary of SoftBank Group Corp. after theTransfer, the amount equivalent to the gain on sale (after taxation) from the Transfer will berecorded as additional paid-in capital in the consolidated statement of financial position. In
addition, there will be an effect of lowering corporate income taxes, which will be recognized
as a positive impact on net income. This is due to the use of loss carryforwards at SBGJ,
which had not been recognized as deferred tax assets, against the gain on sale of SoftBank
Corp. shares upon the Transfer. The impact of the transactions on the Company’s consolidated financial results for the fiscal year ending March 31, 2021 has not been determined.

(ii) Shares to be transferred to the Trustfrom T-Mobile in a private offering
through the Trust and transaction
price thereofd. Commencement of the transactions to transfer T-Mobile shares
On June 23, 2020, the Company decided to commence transactions to transfer shares ofcommon stock of T-Mobile, an equity method associate of the Company, which it holds throughits subsidiary.
(a) Outline of the Transfer
The Company is expected to transfer to T-Mobile up to 198,314,426 shares of common stockof T-Mobile (the “Released Shares”) through its subsidiary (the “Transfer”).
T-Mobile will dispose of the shares transferred from its subsidiary through a public offeringin 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, withthe proceeds being transferred to the Company’s subsidiary (collectively, the “Related
Transactions”).
In connection with the consummation of the Transfer and Related Transactions, theCompany has agreed to pay T-Mobile $300 million and reimburse all of T-Mobile’s fees andexpenses for the Related Transactions.
The aggregate transaction price for the Transfer is equal to the proceeds received by
T-Mobile in the Related Transactions, which is equal to the sum of the aggregate transaction
price in each Related Transaction (up to $20,115 million) as described below (b), lessunderwriting discount and commission and certain other expenses.
Note:* The Company, Deutsche Telekom, Marcelo Claure and certain of their respective affiliates have agreed to waive their rights toparticipate in the rights offering.

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Message from Our CEO(iii) Shares to be transferred to theshareholders in the rights offering by
T-Mobile and transaction price thereof 2(iv) S hares to be transferred to Marcelo
Claure, a director of T-Mobile andtransaction price thereof

143,392,582 shares(up to 154,147,026 shares if the underwriters
exercise in full their option to purchaseadditional shares)
Transaction price per share $103.00
Aggregate transaction price $14,769 million(up to $15,877 million if abovementioned
option is exercised)
18,062,698 shares(up to 19,417,400 shares if the Initialpurchasers in this offering exercise in full theiroption to purchase additional securities)
Aggregate transaction price $1,570 million(up to $1,689 million if abovementioned
option is exercised) 1
Up to 19,750,000 shares
Transaction price per share $103.00 3
Aggregate transaction price $2,034 million
5,000,000 shares
Transaction price per share $103.00 3
Aggregate transaction price $515 million

Notes:
1. As part of the transaction price, T-Mobile will receive notes and T-Mobile, in turn, will pay by transferring such notes to theCompany’s subsidiary.
2. The subscription rights will expire at 5:00 p.m., EST, on July 27, 2020, unless extended.
3. At the same price per share as the common stock sold in the U.S. public offering by T-Mobile.

(c) Outline of the Transfer of shares upon exercise of call options by Deutsche Telekom
As part of the transactions, Deutsche Telekom will receive call options (the “Call Options”)
over 101,491,623 shares of common stock of T-Mobile which the Company holds through its
subsidiary:(i) For a call option over 44,905,479 shares out of the 101,491,623 shares, a strike price ofthe call option is equal to the lower of the market price per share of T-Mobile’s common
stock at the close of the market on June 19, 2020 and the volume-weighted average priceof the offer price of the Released Shares sold in underwritten public offerings.
(ii) F or a call option 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 20-day volume-weighted average price of theshares of T-Mobile common stock immediately prior to exercise.

Who We Are

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Financial Section

Corporate Information

238

Note:For the call option described in item (i) above, the Company’s subsidiary has issued a call option to T-Mobile Agent LLC(“T-Mobile Agent”), a wholly owned subsidiary of T-Mobile, and T-Mobile Agent has issued a back-to-back call option to
Deutsche Telekom. Upon exercise of such options, Deutsche Telekom will acquire from T-Mobile Agent the same number ofshares on the same economic terms as T-Mobile Agent is entitled to acquire from the Company’s subsidiary. For the call option
described in item (ii) above, the Company’s subsidiary has issued a call option to Deutsche Telekom, and Deutsche Telekom will
acquire the relevant number of shares upon exercise. The Call Options expire on June 22, 2024, unless certain events occur thattrigger an earlier expiration date.

(d) 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(i) Number of shares held before the Transfer(ii) Number of the Released Shares(iii) Number of shares held after the Transfer1(iv) Number of shares subject to the Call Options(v) N umber of shares held after the Call Options are
exercised2

304,606,049 shares
Up to 198,314,426 shares
106,291,623 shares
101,491,623 shares
4,800,000 shares

Notes:
1. Calculated on the assumption that the maximum shares as referred to in (ii) are transferred.
2. Calculated on the assumption that the Call Options are fully exercised.

(e) Outlook and Impact on the Company’s Consolidated Financial Results
The Company expects the delivery of the shares of T-Mobile common stock to T-Mobile throughits subsidiary to be completed on June 26, 2020 (EST,) however, the transactions presented in (iii)and (iv) under “(b) Number of shares to be transferred and transaction price” are expected to becompleted in or after July, 2020. After the completion of the Transfer on June 26, 2020,
T-Mobile will no longer be an equity method associate of the Company. The Impact of the gainor loss on sale of shares of associates related to the Transfer and revaluation gain or loss of theshares that continues to be held by the Company in its consolidated financial results for the fiscal
year ending March 31, 2021 has not been determined.
57. Approval of consolidated financial statements
The consolidated financial statements have been approved by the Company’s CEO, Masayoshi Son, as
of June 24, 2020.

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Independent Auditor’s Report
SoftBank Group Corp. and its Consolidated Subsidiaries

Deloitte Touche Tohmatsu LLC
Marunouchi Nijubashi Building
3-2-3 Marunouchi
Chiyoda-ku, Tokyo 100-8360
Japan
Tel: +81 (3) 6213 1000
Fax: +81 (3) 6213 1005
www.deloitte.com/jp/en

To the Board of Directors of SoftBank Group Corp.:

OpinionWe have audited the consolidated financial statements of SoftBank Group Corp. and its
subsidiaries (the “Group”), which comprise the consolidated statement of financial position asof March 31, 2020, and the consolidated statement of income, consolidated statement ofcomprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies, all expressed in Japaneseyen.
In our opinion, the accompanying consolidated financial statements present fairly, in allmaterial respects, the consolidated financial position of the Group as of March 31, 2020, andits consolidated financial performance and its consolidated cash flows for the year then endedin accordance with International Financial Reporting Standards (“IFRSs”).
Convenience Translation
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar
amounts and, in our opinion, such translation has been made in accordance with the basis
stated in Note 2 (3) to the consolidated financial statements. Such U.S. dollar amounts arepresented solely for the convenience of readers outside Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Consolidated Financial Statements section of our report. We are
independent of the Group in accordance with the provisions of the Code of Professional Ethics
in Japan, and we have fulfilled our other ethical responsibilities as auditors. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

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Emphasis of Matters– As discussed in Note 56. Subsequent events (1), Sprint Corporation, a subsidiary of theCompany merged with T-Mobile US, Inc. on April 1, 2020 and T-Mobile US, Inc. became an
equity method associate of the Company.
– As discussed in Note 56. Subsequent events (2) d., On June 23, 2020, the Company decided
to commence transactions to transfer a portion of T-Mobile shares. After the transactions,T-Mobile will no longer be an equity method associate of the Company.
– As discussed in Note 56. Subsequent events (2) a., the Company executed a series offinancing transactions which involve monetizing a portion of the ordinary shares of Alibaba
Group Holding Limited held by its wholly-owned subsidiaries, West Raptor Holdings 2, LLC,
Skybridge LLC, and Skylark 2020 Holdings Limited.
Our opinion is not modified in respect of these matters.
Responsibilities of Management and Audit & Supervisory Board Members and the
Audit & Supervisory Board for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with IFRSs, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern, disclosing, as applicable, matters related togoing concern in accordance with IFRSs and using the going concern basis of accounting unlessmanagement either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Audit & Supervisory Board members and the Audit & Supervisory Board are responsible foroverseeing the Directors’ execution of duties relating to the design and operating effectivenessof the controls over the Group’s financial reporting process.

Message from Our CEO

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Financial Section

Corporate Information

240

Independent Auditor’s Report
SoftBank Group Corp. and its Consolidated Subsidiaries

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, andto issue an auditor’s report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with auditing
standards generally accepted in Japan will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.

• Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance ofthe group audit. We remain solely responsible for our audit opinion.

As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:

We also provide Audit & Supervisory Board members and the Audit & Supervisory Board with astatement that we have complied with relevant ethical requirements regarding independence,and communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, related safeguards.

• Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks. The procedures selected depend on the auditor’s judgement. In addition, we
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain, when performing risk assessment procedures, an understanding of internal control
relevant to the audit in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theGroup’s internal control.

We communicate with Audit & Supervisory Board members and the Audit & Supervisory Board
regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during
our audit.

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group whichis required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.

June 25, 2020

• Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Group to cease tocontinue as a going concern.
• Evaluate whether the overall presentation and disclosures of the consolidated financial
statements are in accordance with IFRSs, as well as the overall presentation, structure andcontent of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

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Message from Our CEO

Member of
Deloitte Touche Tohmatsu Limited

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

241

Major Subsidiaries and Associates
As of March 31, 2020

Subsidiaries
Company name

CapitalVoting rights(Millions of yen)(%)

Main businesses

SoftBank Vision Fund and Other SBIA-Managed Funds Segment
SB Investment Advisers (UK) Limited

$576K

100

Management of SoftBank Vision Fund

204,309

67.1

Provision of mobile communications services; sale of mobile devices; provision of broadband and other fixed-line communications
services in Japan

SoftBank Segment
SoftBank Corp. *1
SB C&S Corp.

500

100

Manufacture, distribution, and sale of IT-related products and provision of IT-related services

Wireless City Planning Inc.

18,89932.2

Planning and provision of mobile broadband services

SB Technology Corp. *2

1,176

53.3

Solutions and services for online businesses

ITmedia Inc.

1,735

52.8

Operation of comprehensive IT information site ITmedia

Vector Inc.

1,018

42.4

PC software downloads and advertising

Z Holdings Corporation *237,42245.5

Holding company

Yahoo Japan Corporation *3

199,250

100

Internet advertising and e-commerce business

ValueCommerce Co., Ltd.

1,728

52.0

Affiliate advertising marketing service; StoreMatch online advertising distribution service

3

ZOZO, Inc.

1,359

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

37,25046.6

Banking

ASKUL Corporation

21,18945.1

Mail-order sale of stationery and services

900

43.5

E-book distribution

eBOOK Initiative Japan Co., Ltd.
Arm Segment
Arm Limited

GBP 1,025K

100

Design of microprocessor intellectual property and related technology; sale of software tools and provision of software services

Arm PIPD Holdings One, LLC *4 *5

GBP 500,166K

100

Holding company

Arm PIPD Holdings Two, LLC * *GBP 343,203K

100

Holding company

Brightstar Global Group Inc.

$3K

89.9

Holding company

Brightstar Corp.

$0K

100

Distribution of mobile devices outside Japan

25

100

Holding company$5,508K

100

Holding company

$0K

100

Management of overseas investment

4

5Brightstar Segment

Company-wide
SoftBank Group Japan Corporation
SoftBank Group Capital Limited
SB Group US, Inc.

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Major Subsidiaries and Associates
As of March 31, 2020

Company name

CapitalVoting rights(Millions of yen)

(%)

–

100

Alternative investment management business

100

100

Ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and othersports facilities; distribution of video, voice, and data content via media

Main businesses

Others
Fortress Investment Group LLC *5 *6
Fukuoka SoftBank HAWKS Corp.
SLA ADVISERS CORP.

$0K

100

Management of fund in Latin America

SB Energy Corp.

4,770

100

Generation of electricity from renewable energy sources; supply and sale of electricity

PayPay Corporation

81,000100

Smartphone payment business

Boston Dynamics, Inc.
SoftBank Robotics Group Corp.

$256,805K

100

Design and development of mobile robots

20,60074.5

Holding company

Skywalk Finance GK *5 *7

0100

Holding company

SoftBank Ventures Asia Corp.

KRW 18,000M

100

Management of fund in Asia

SoftBank Korea Corp.

KRW 2,200M

100

Holding company

SB Pan Pacific Corporation

48,248100

Holding company

STARFISH I PTE. LTD.

101,386

100

Holding company

Starburst I, Inc. *9

$216K

100

Holding company$1,251,768K

100

Holding company

77,842

100

Holding company

West Raptor Holdings, LLC *4 *5 *8
Hayate Corporation

Sprint (business as a disposal group classified as held for sale)
Sprint Corporation *9$41,161K

Sprint Communications, Inc. *9$1,180,954K

83.7

Holding company

100

Provision of mobile communications services in the U.S.; sale and lease of mobile devices and sale of accessories in the U.S.; provisionof fixed-line telecommunications services in the U.S.

*1 On May 22, 2020, the Company’s wholly owned subsidiary SoftBank Group Japan Corporation (“SBGJ”) sold a portion of its holdings of SoftBank Corp. (“SB”) shares, which resulted in the Company holding voting rights of 62.1%.
*2 On October 1, 2019, SoftBank Technology Corp. changed its name to SB Technology Corp.
*3	Yahoo Japan Corporation (currently Z Holdings Corporation, “Yahoo Japan”) implemented a tender offer for its own shares from May 9, 2019 to June 5, 2019 (the “Tender Offer”). SBGJ tendered entire shares and sold a portion of shares in Yahoo Japan. On June 27, 2019, Yahoo
Japan issued new shares to SB through a third-party allotment (the “Third-Party Allotment,” and together with the Tender Offer, the “Transactions”), where SB purchased all shares. As a result of the Transactions, the voting rights held by SBG in Yahoo Japan became 45.5% from
48.2%. Yahoo Japan then became a subsidiary of SB, as SB was deemed to effectively control Yahoo Japan by dispatching officers as board members and other activities to Yahoo Japan, in conjunction with the Transaction. Subsequently on October 1, 2019, for the purpose oftransitioning to a holding company structure, Yahoo Japan made a company split (absorption-type company split) by transferring its business to Kioicho Bunkatstujunbi Kabushiki Kaisha and Kioicho Kin’yu Bunkatstujunbi Kabushiki Kaisha, and changed its own trade name to Z
Holdings Corporation. On the same date, Kioicho Bunkatstujunbi Kabushiki Kaisha and Kioicho Kin’yu Bunkatstujunbi Kabushiki Kaisha were renamed Yahoo Japan Corporation and Z Financial Corporation, respectively.
*4 Capital represents the amount of capital contribution.
*5 The voting rights represent SBG’s entire contributions as percentage of capital.
*6 Since Fortress Investment Group LLC does not prepare stand-alone financial statements, no capital amounts are presented.
*7 Skywalk Finance GK uses its holdings of Alibaba shares as collateral for its borrowings.
*8 On June 3, 2019, West Raptor Holdings, LLC sold a portion of its holdings of Alibaba shares.
*9	On April 1, 2020 (ET), Sprint and T-Mobile completed the merger in an all-stock transaction (the “Transaction”). Upon completion of the Transaction, the combined company T-Mobile US, Inc. became an equity method associate of SBG, and Sprint ceased to be a subsidiary of SBG.
	Starburst I, Inc. (“Starburst”) and Galaxy Investment Holdings, Inc. (“Galaxy”), which owned shares of Sprint, merged with Huron Merger Sub LLC, a U.S. subsidiary owned directly by T-Mobile, with Huron Merger Sub LLC being a surviving entity and Starburst and Galaxy being
dissolved.
	On June 23, 2020, SBG announced to commence transactions to transfer shares of common stock of T-Mobile US, Inc., which it holds through its subsidiary (the “Transactions”). In the Transactions, SBG is expected to transfer a portion of its shares to T-Mobile US, Inc. (the“Transfer”). On June 26, 2020 (ET), each of the transactions under the Transfer was completed by T-Mobile for the public offering and private placement through the trust regarding T-Mobile shares in the U.S., resulting in the exclusion of T-Mobile from SBG’s equity method
associates. In the Transactions, Deutsche Telekom AG received call options (the “Call Options”) over a portion of shares of T-Mobile US, Inc. held by SBG. The relevant shares will be transferred to Deutsche Telekom upon exercise of the Call Options. The Call Options expire on June22, 2024, unless certain events occur that trigger an earlier expiration date.

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Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

243

Major Subsidiaries and Associates
As of March 31, 2020

Associates
Company name

Capital(Millions of yen)

Voting rights (%)

Main businesses

SoftBank Segment
32.1

Provision of Internet marketing support services using the personalized engine deqwas for e-commerce business operators andretailers

Scigineer Inc.

800

Geniee, Inc.

1,545

31.3 Advertising technology business

SRE Holdings Corporation

3,538

24.3 Real estate business; IT platform business; AI solution business

OthersAlibaba Group Holding Limited *7 *8

CNY 1,000K

25.1 Investor company of companies operating e-commerce business; cloud computing; digital media and entertainment

The We Company$197K

20.1 Provision of co-working space service

InMobi Pte. Ltd.

$379K

45.0 Mobile advertising services

Foxconn Ventures Pte. Ltd.

$46K

36.4 Holding company

Main Overseas Fund Data
Subsidiaries
Fund name

Capitalaccepted

Investment ratio

Main businesses(%)

SoftBank Vision Fund and Other SBIA-Managed Funds Segment
SoftBank Vision Fund L.P. *10

$73B

33.6

Investment activities by SoftBank Vision Fund

*10 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 SoftBank Vision Fund.

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Corporate Data
As of March 31, 2020

Organizational structure

Corporate
name

SoftBank Group Corp.

Founded

September 3, 1981

Corporate
headquarters

1-9-1 Higashi-shimbashi, Minato-ku,
Tokyo 105-7303

Telephonenumber+81-3-6889-2000

Representatives

Masayoshi Son, Chairman & CEO

Share capital¥238.8 billion

Number ofsubsidiaries

1,475

Executive Vice President & COO
Marcelo Claure

Number of
associates

455

Executive Vice President & CSO
Katsunori Sago

Number of joint
ventures27

Number of
employees

224 (consolidated basis: 80,909)

Main business

Pure holding company

Independent
auditor

Deloitte Touche Tohmatsu LLC

As of June 25, 2020

General Meeting of Shareholders

CEO Office
CEO Project Office

Board of Directors
Global Business Unit
Chairman & CEO
Masayoshi Son

CSO Office
Investment Strategy Unit

Investment Planning Department
Principal Investment Department

Vice Chairman
Ronald D. Fisher

CFO OfficeFinance Planning Department
Finance Unit

Capital Market Department
Investor Relations Department

Executive Vice President
Rajeev Misra
Senior Vice President, CFO,CISO & CSusO
Yoshimitsu Goto

Group Management Department
Human Resources Department
Administration Unit

General Administration Department
Information System Department
Accounting Department

Audit & Supervisory Board

Accounting Unit
Tax Management Office

Audit & Supervisory
Board Members

Compliance Department
Legal Unit

Audit & Supervisory Board Office

Legal Projects Department
Corporate Legal Department

Corporate Communications Unit

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SoftBank Group Corp. ANNUAL REPORT 2020

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

245

Stock Information
As of March 31, 2020

Shareholder
registrar

Mitsubishi UFJ Trust and Banking
Corporation

Major shareholders

Stock exchange
registration

TSE First Section

Stock code

9984

Masayoshi Son
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
JP MORGAN CHASE BANK 385632
J. P. MORGAN BANK LUXEMBOURG S. A. 1300000
Japan Trustee Services Bank, Ltd. (Trust Account 5)
SSBTC CLIENT OMNIBUS ACCOUNT
JP MORGAN CHASE BANK 380763
JP MORGAN CHASE BANK 385151
CITIBANK, N.A.-NY, AS DEPOSITARY BANK FOR DEPOSITARY SHARE HOLDERS
Top 10 Shareholders

Number of shares
Shares authorized 7,200,000,000
Shares issued
2,089,814,330(including 21,818,471 of treasury stock)

Number ofshareholders

218,820(%)

Number of shares held
(thousands)

Percentage of total
shares issued (%)

439,409
211,993
121,332
58,99037,67831,71730,90829,06628,352
23,617
1,013,062

21.25
10.25
5.87
2.85
1.82
1.53
1.49
1.41
1.37
1.14
48.99

Notes:
1. On June 10, 2019, SoftBank Group Corp. retired 55,753,200 shares of the treasury stock.
2. On June 28, 2019, SoftBank Group Corp. conducted a share split at a ratio of two-for-one.
3. Percentage of total shares issued is calculated by deducting treasury stock (21,818,471 shares).
4. Of the above numbers of shares held, those held by The Master Trust Bank of Japan, Ltd. and Japan Trustee Services Bank, Ltd. are all related to trust operations.
5.	As for major shareholders, the number of shares held effectively by Masayoshi Son, verified by SoftBank Group Corp., is presented as has been hitherto on a combined basis (by meansof name-based aggregation), while those held by other major shareholders are presented precisely as reported in the register of shareholders.

Shareholding structure
100

Name of shareholders

2.7
4.2

1.9
5.2

1.3
5.2

1.3
5.1

2.1
5.0

20.6

22.4

22.8

23.3

23.7

Stock price and trading volume
75

33.7

31.7

31.2

32.9

30.5

50

25

0

38.8

’15

38.8

’16

Overseas institutions and individuals
Domestic financial institutions
Financial instrument firms

SoftBank Group Corp. ANNUAL REPORT 2020

39.5

’17

37.4

38.7

’18

Domestic individuals and others
Domestic other companies

’19

(FYE)

(Yen)
6,000

(Yen)
30,0005,500

27,5005,000

25,0004,500

22,5004,000

20,0003,500

17,5003,000

15,0002,500

12,500

2,000
1,500

10,000(Million shares)
7,500

1,000

50

500
0

25

’10

’11

’12

’13

’14

’15

’16

’17

’18

’19

’20

(CY) 0Stock price (left)
Trading volume (right)
Nikkei 225 (right)
Note: Stock prices and trading volumes are averages for each month. The above stock price and trading volume data have been adjusted to take into account the share split on June 28, 2019.

Table of Contents

Message from Our CEO

Who We Are

Our Path to Continued GrowthManagement: The Foundation Supporting Our Growth

Financial Section

Corporate Information

246

Stock code: TSE 9984

https://group.softbank/en/

Published on July 29, 2020
Copyright © 2020 SoftBank Group Corp. All Rights Reserved.