SoftBank Group Report

ANNUAL REPORT 2024

Disclaimers
This Annual Report provides relevant information about SoftBank Group Corp. (“SBG”) and its subsidiaries (including together with SBG, the “Company”) and its affiliates (together with the Company, the “Group”) and does not constitute or form any
solicitation of investment including any offer to buy or subscribe for any securities in any jurisdiction.
This Annual Report contains forward-looking statements, beliefs or opinions regarding the Group, such as statements about the Group’s future business, future position and results of operations, including estimates, forecasts, targets and plans for theGroup. Without limitation, forward-looking statements often include the words such as “targets,” “plans,” “believes,” “hopes,” “continues,” “expects,” “aims,” “intends,” “will,” “may,” “should,” “would,” “could,” “anticipates,” “estimates,” “projects”
or words or terms of similar substance or the negative thereof. Any forward-looking statements in this Annual Report are based on the current assumptions and beliefs of the Group in light of the information currently available to it as of the date hereof. Suchforward-looking statements do not represent any guarantee by any member of the Group or its management of future performance and involve known and unknown risks, uncertainties and other factors, including but not limited to, the success of theGroup’s business model; the Group’s ability to procure funding and the effect of its funding arrangements; key person risks relating to the management team of SBG; risks relating to and affecting the Group’s investment activities; risks relating to SB Fund(defined as below), its investments, investors and investees; risks relating to SoftBank Corp. and the success of its business; risks relating to law, regulation and regulatory regimes; risks relating to intellectual property; litigation; and other factors, any of which
may cause the Group’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward-looking statements. For more
information on these 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 Groupnor its management gives any assurances that the expectations expressed in these forward-looking statements will turn out to be correct, and actual results, performance, achievements or financial position could materially differ from expectations. Persons
viewing this Annual Report should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements contained in this Annual Report or any other forward-looking statements
the Company may make. Past performance is not an indicator of future results, and the results of the Group in this Annual Report may not be indicative of, and are not an estimate, forecast or projection of, the Group’s future results.
The Company does not guarantee the accuracy or completeness of information in this Annual Report regarding companies (including, but not limited to, those in which SB Funds have invested) other than the Group which has been quoted from public andother sources.
Regarding Trademarks
Names of companies, products and services that appear in this Annual Report are trademarks or registered trademarks of their respective companies. “Co., Ltd.,” “Ltd.,” “Corporation” and “Inc.” have been omitted from company names except in certain
circumstances.
Important Notice – Trading of SBG Common Stock, Disclaimer Regarding Unsponsored American Depository Receipts
SBG encourages anyone interested in buying or selling its common stock to do so on the Tokyo Stock Exchange, which is where its common stock is listed and primarily trades. SBG’s disclosures are not intended to facilitate trades in, and should not be relied
on for decisions to trade, unsponsored American Depository Receipts (“ADRs”). SBG has not and does not participate in, support, encourage or otherwise consent to the creation of any unsponsored ADR programs or the issuance or trading of any ADRs
issued thereunder in respect of its common stock. SBG does not represent to any ADR holder, bank or depositary institution, nor should any such person or entity form 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 LY 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 orcomparable limited liability equity interests in any fund managed by a subsidiary of SBG, including SB Global Advisers Limited (“SBGA”), SB Investment Advisers (UK) Limited (“SBIA”) and any of their respective affiliates thereof (collectively, the “SB FundManagers” and each an “SB Fund Manager”) (such funds together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle or alternative investment vehicle collectively, the “SB Funds” and each an “SB Fund”). For the avoidanceof doubt, the SB Funds include, among other funds, SoftBank Vision Fund L.P. (together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle or alternative investment vehicle, the “Vision Fund I”), which are managed by SBIA
and its affiliates; SoftBank Vision Fund II-2 L.P. (together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle or alternative investment vehicle, the “Vision Fund II”), which are managed by SBGA and its affiliates; and SBLA
Latin America Fund LLC (together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle or alternative investment vehicle, the “SoftBank Latin America Fund”), which are managed by SBGA and its affiliates.
None of the SB Funds (including the Vision Fund I , Vision Fund II and SoftBank Latin America Fund), the SB Fund Managers, any successor or future fund managed by an SB Fund Manager, SBG 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 presentation, or future performance of any successor or the future fund managed by an SB Fund Manager.
Information relating to the performance of the SB Funds or any other entity referenced in this Annual Report has been included for 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 fund managed 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 and should not be construed as a recommendation of any particular investment or security. The performance of individual investments of an SB Fund may vary, and the performance of the selected transactions is notnecessarily 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 no assumption
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 thetime of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which the relevant SB Fund Manager’s valuations are based.
Past performance is not necessarily indicative of future results. The performance of an SB Fund or any future fund managed by an SB Fund Manager may be materially lower than the performance information presented in this Annual Report. There can be noassurance that each SB Fund or any future fund managed by the relevant SB Fund Manager will achieve comparable results as those presented 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 FundManager, an SB Fund’s portfolio companies, any future portfolio companies of a future fund managed by an SB Fund Manager or SBG will work with any of the firms or businesses whose logos are included in this Annual Report in the future.
SBGA and SBIA manage separate and independent operations and processes from each other and those of SBG in the management of Vision Fund I, Vision Fund II and SoftBank Latin America Fund, respectively. Any SB Funds managed by SBGA or SBIA are
solely managed by SBGA or SBIA respectively.

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Table of Contents
Adoption of IFRSs
The Company has prepared the consolidated financial statements in accordance with the International Financial ReportingStandards (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 beenpresented based on IFRS.
Definition of Terms“Fiscal 2023” refers to the fiscal year ended March 31, 2024, and other fiscal years are referred to in a corresponding mannerin this Annual Report. “FYE” denotes the fiscal year-end. For example, “FYE2023” denotes March 31, 2024, the last day offiscal 2023.

2

Who We Are
2 Our Unchanging 志 Kokorozashi (Mission),
Information Revolution —Happiness for Everyone
4 Our Vision for a Better World
6 A Business Model with Three Capital Inputs
8 Evolving Ahead of the Times Under		
Our Unchanging 志 Kokorozashi (Mission)
10 SoftBank’s Next 30-Year Vision: A Story of Value Creation

12 Message from Our CEO

Notice Regarding PFIC Status
See “IR Disclaimers” on our website for details.
Company Names
Company names and abbreviations used in this Annual Report, unless otherwise stated or interpreted differently in thecontext, are as follows.
Company names and abbreviations

Definition

SoftBank Group Corp. or SBG▶ SoftBank Group Corp. (stand-alone basis)

The Company▶ SoftBank Group Corp. and its subsidiaries

The Group▶ SoftBank Group Corp., its subsidiaries and associates

SB Northstar or asset management subsidiaries▶ SB Northstar LP

SoftBank Vision Fund 1 or SVF1▶

SoftBank Vision Fund 2 or SVF2

▶ SoftBank Vision Fund II-2 L.P.

SoftBank Latin America Funds or LatAm Funds▶ SBLA Latin America Fund LLC

SoftBank Vision Funds or SVF▶ SVF1, SVF2, and LatAm Funds

SBIA▶ SB Investment Advisers (UK) Limited

SBGA▶ SB Global Advisers LimitedArm▶ Arm Holdings plc or Arm Limited*

Alibaba▶ Alibaba Group Holding Limited

SoftBank▶ SoftBank Corp.

Sprint▶ Sprint Corporation

T-Mobile▶ T-Mobile US, Inc. after merging with Sprint

SoftBank Vision Fund L.P. and its alternative investment
vehicles* A corporate reorganization was undertaken in August 2023, pursuant to which Arm Holdings Limited, a former subsidiary of Arm
Limited, acquired all the issued ordinary shares of Arm Limited, thereby making it a wholly owned subsidiary. Subsequently, Arm
Holdings Limited changed its name to Arm Holdings plc and was listed on the Nasdaq Global Select Market through an initial public
offering on September 14, 2023.

16 Message from Our CFO
20 Growth Assets
20
22
23
26
28

NAV (Net Asset Value) & LTV (Loan to Value)
Calculation of Equity Value of Holdings and Net Debt
Message from Arm CEO
Message from SoftBank Vision Funds Management
SoftBank Vision Funds In Focus

32 Foundation for Our Growth
32
38
42
46
58
60
62
63
64

Our Sustainability
Sustainability: Environment
Sustainability: Social
Sustainability: Governance
Message from External Board Director
Compliance
Risk Management
Message from Our Chief Risk Officer (CRO)
Risk Factors

71 Financial Section
72
73
75
76

Graphs: Key Consolidated Financial Data
Eleven-Year Key Consolidated Financial Data
NAV & LTVManagement’s Discussion and Analysis of Results of Operations, Financial Position,
and Cash Flows

111 Corporate Information
111 Major Subsidiaries and Associates
114 Stock Information
115 Corporate Data
For consolidated financial statements and notes, see “Financial Report 2024” on our website.
SoftBank Group Report 2024

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Our Unchanging 志 Kokorozashi (Mission)

Information Revolution—Happiness for Everyone
Information Revolution—Happiness for everyone
Since its founding, the Group has always remained true toits goal of accelerating the Information Revolution to make the world a happier place.
Just what is happiness?
Some might say happiness is to love and be loved in return, or to make the most of each day. Others might derivehappiness from self-expression. Still others might find happiness in something as simple as a smile. Above all,the Group equates happiness with inspiration. Through our business, we strive to bring emotional meaning andhappiness to lives. In everything we do, we aim to drive the Information Revolution and build a more connected,
empowered, and joyful world. This unchanging kokorozashi (mission) is encapsulated in our philosophy,
Information Revolution—Happiness for everyone.
Humankind stands on the cusp of the digital Big Bang. Computing performance is increasing dramatically, and we are
getting ever closer to an age of super-intelligent machines that will surpass human ability. Our mission is to harness
the raw, unlimited power of the Information Revolution and channel it in a direction that makes people happier.
This aspiration will continue to drive our organization toward further growth for many years to come.

SoftBank Group Report 20242

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

A two-line design—the banner of the Information Revolution that
the Group hoists as we sail toward a new dawn

Kaientai banner

SoftBank Group Report 2024

SoftBank brand symbol

Imagine a group of visionaries who share the sameunshakable spirit (kokorozashi). They act with one
mind to achieve their ideals, braving all dangers tousher in a new era amid upheaval. The Group draws
inspiration from one such group—the Kaientai, an
enterprising shipping company founded in 1865 by thevisionary Sakamoto Ryoma. Supplied with the best
intelligence and possessing abundant knowledge andwisdom, the Kaientai and its founder rejected ageworn feudalistic values in favor of free thinking andbold action. In this way, they led a revolution that
resulted in the modernization of Japan. Our corporate
logo derives from the Kaientai’s flag. It represents ouradmiration for and belief in the Kaientai’s singleminded pursuit of their vision, which imagined a Japan
100 years into the future. The Group is a fleet ofsimilar visionaries. Our vessels fly the banner of the
21st-century Kaientai, symbolizing our own singleminded pursuit of a vision: Information Revolution—
Happiness for everyone.

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Our Vision for a Better World—Help shape the next 300 years for
our future generations and the planet
To realize our core philosophy and vision, we invest in the Information Revolution.
The Information Revolution has advanced to a new stage with the increasing
sophistication of AI. AI has the potential to create a safer, more prosperous,
and all-round better future by addressing social and environmental challenges,
including climate change, the education gap, and economic inequality.
SBG accelerates the Information Revolution through the responsible use of AI. In thisway we are helping to realize the world we have always envisioned since our founding.

Autonomous driving forsafer roads
Imagine a world where self-drivingcars travel to their destination
without human input, a world whereself-driving technology preventsroad accidents by sensing blind spots
and monitoring hazardous
situations, enabling anyone to gofrom A to B with peace of mind.

SoftBank Group Report 2024

Remote learning for
educational equality
Imagine a world where all children canaccess a better education regardless of
where they were born and raised, aworld where remote learning programs
are available everywhere, offering
quality education to all.

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Using AI toprevent disease
Imagine a world where we canpredict and prevent any diseaseusing AI-driven genetic data analysis
etc., a world where AI accelerates
the search for drug candidates,
enabling early treatment.

An enriched life for all
Imagine a world of seamless
commerce where business
transactions defy borders, a world of
universal connectivity where all canaccess financial services,
entertainment, and all manner ofother services and content.

More creativity at
work
Imagine a world where workplaces
are more human-centric and full ofauthentic, life-affirming experiences,a world where AI automates
mundane and monotonous tasks,
freeing up time for more creative
pursuits.
SoftBank Group Report 2024

Technological solutions toenvironmental issues
Imagine a world where technologicalinnovation makes renewable andclean energy ubiquitous, a world
where we have the technology toreverse climate change andsafeguard biodiversity.

5Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

A Business Model with Three Capital Inputs
SBG is a Strategic Investment Holding Company
Driving the Information Revolution—Building an ecosystem of industry-leading businesses aiming to grow for the next 300 years

Business Model
SBG =A strategic investment holding
company
SBG provides capital to companies around theworld that show excellent potential for AI-driven
growth, contributing to the Information Revolution
and a more connected, empowered, and joyful
world for all.
Such companies have innovative ideas for truly
world-changing goods and services. These ideas cansolve social issues and make people happier.
By providing them with capital, we accelerate
their business growth and unleash the potential of
our core philosophy and vision: Information
Revolution—Happiness for everyone.

SoftBank Group Report 2024

Cluster of No. 1 Strategy
Our strategy is to build a strategically synergizedecosystem of companies. The strategy envisages thisgroup as a symbiotic ecosystem of companies withindustry-shaping technologies and business models.
In this ecosystem, we work with visionary
entrepreneurs who pioneer new industries.
Although we help these business leaders in theirdecision-making, we respect their autonomy and do
not find it necessary to hold a majority stake in theircompanies. However, we do encourage them toidentify with our core philosophy and vision and towork with us in unlocking synergistic growth.
Under this strategy, we have developed anecosystem of entrepreneurial leaders in AI. These
include subsidiaries and Group companies such as
Arm, companies in which SBG invests directly with aview to creating value over the longer term, andover 400 portfolio companies within SoftBank
Vision Funds and other funds.

Three capital inputs that deliver
sustainable growth
When a company invests capital into businessactivities, the resulting value is expected to exceed
the initial capital commitment. The company willthen reinvest that capital for an even higher return.
When this cycle occurs on an ever-greater scale,
capital will keep accumulating, generating
sustainable growth.
We have three key sources of capital: an
ecosystem of portfolio companies, financial capital,and human capital. This capital is both an input andan output. In implementing our business model, we“input” capital, and this capital is then “output”
back to us in an amount larger than the initial
input.

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

We aim for sustainable growth by perpetuating andaccumulating our three capital inputs.

1. E cosystem of
portfolio companies
This input is the ecosystem of portfolio companies wehave developed. The ecosystem includes subsidiaries
such as Arm, companies in which SBG invests directly,
and over 400 portfolio companies within SoftBank
Vision Funds and other funds. Members of thisecosystem pursue growth independently, but in doing
so, they produce a stream of innovation and unleash
synergies that enable the growthof the entire ecosystem.

3. Human capital
2. Financial capitalThis input refers to the financial assets that fund ourinvestments. We aim to grow our financial assets overthe medium- to long-term, gaining high returns on
investments and then reinvesting the profits. Our key
performance measure for the growth of our financial
capital is our Net Asset Value (NAV).* Our NAV hasgrown over the medium- to long-term in line with
our investments and other activities. We aim to growit even larger.

This input is our talent. It includes ourinvestment professionals who identify
attractive investment opportunities, aswell as finance and accounting staff,
legal and compliance experts, and manyother employees who support ouractivities. Our human capital grows as
our diverse pool of employees pursue
their own professional development
while increasingly aligning themselveswith our unique company culture, whichemphasizes decisiveness and dedication.

*NAV = Equity value of holdings – Net debt
See page 20 for details of NAV.

SoftBank Group Report 2024

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Evolving Ahead of the Times Under
Our Unchanging 志 Kokorozashi—Our history
Our story begins in 1981, when Masayoshi Son
founded SOFTBANK Japan. He envisioned thecompany as a “software bank” that would build
infrastructure for the information-driven society.
At the time, PC software led the Information
Revolution, but the focus shifted to the Internet,
then to broadband, and later to smartphones.
We have always stood on the frontlines of such
shifts. Adjusting swiftly to market and industry
changes, we have always partnered with theparadigm-defining companies of the time andredeployed capital into new investment areas.

1981
Founded as a
distributor of
packaged software
for PCs

1994
Founded SoftBank Holdings
Inc. in the U.S. for the
purpose of strategic
investment in Internetcompanies

2001
Launched Yahoo! BB broadband service
2004
Acquired JAPAN TELECOM
and entered fixed-line
telecommunications

2000
Invested in Alibaba
1996
Launched Yahoo! JAPAN1982
Launched a publishing business

The Information Revolution has now enteredanother new phase, with AI completely redefining
every industry. We invest in AI businesses withworld-changing ideas. The aim of theseinvestments is to accelerate groundbreaking
technological innovations that can build a moreconnected, empowered, and joyful world. Believingthat the next few decades of AI innovation will
surpass all the technological progress of the last
three centuries, we work with portfolio companies
and subsidiaries around the world who share ouraspiration to forge this exciting future.

2006
Acquired Vodafone K.K. andentered mobile
telecommunications in Japan2010
Announced SoftBank’s Next
30-Year Vision2013
Acquired U.S.-based carrier
SprintMobileBroadband

The Internet

PC Software
SoftBank Group Report 20248

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2016
Acquired U.K. chip designer Arm

Who We Are

2017
Launched SVF1

Message from Our CEO

Message from Our CFO

Growth Assets

2018
SoftBank listed on the First Section of the Tokyo
Stock Exchange

Foundation for Our Growth2020
Sprint and T-Mobile merged

Financial Section

Corporate Information

2023
Arm listed on the Nasdaq Global Select Market*

AI

SoftBank Group Report 2024

Photo: Nasdaq, Inc.

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

SoftBank’s Next 30-Year Vision:
A Story of Value Creation

Sustainable development is imperative for businesses.
Companies are expected not only to make short-term
profits but also to create social value for stakeholders.
In 2010, we unveiled SoftBank’s Next 30-Year Vision,
which looks 100 years into the future. Five years later, theUN adopted the 17 Sustainable Development Goals. Thus,
even before the sustainable development agenda took off,
we already had our own sustainability-focused philosophy
and vision. We were also already integrating this philosophy
and vision into our strategy and business model.
Announcement of SoftBank’s Next 30-Year Vision (2010)

SoftBank Group Report 202410

Table of Contents

Who We Are

Ecosystem of portfolio
companies

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

The world in 30 years

Core philosophy

Technological innovations
More happiness, less sadness

Build an ecosystem of companies
with industry-shaping technologies
and business models

Information Revolution—Happiness for everyone

Financial capital

VisionFinancial outcomes

A diverse funding toolbox

To become the world’s mostessential corporate groupContinued growth in
Net Asset Value (NAV)

Human capital
Professionalism and a uniquecompany culture

SoftBank Group Report 2024

Message from Our CEO

Strategy
Strategic synergy group

Managing global risks
The next 300 years for future
generations and for the planet

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CEO

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

indicator, Net Asset Value (NAV), every day

Throughout our 43-year history since its

without fail. NAV represents shareholder

foundation in 1981, SBG has experienced

value, calculated as the equity value

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

journey can be divided into six distinct

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

maximize NAV. How do we achieve this?

business of distributing packaged software

We focus on two key strategies: evolution

for PCs and founding Yahoo Japanand multiplication. Evolution involves

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

SoftBank Group Report 202412

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CEO

acquisition of Sprint in 2013. After the

Figure 2: Results of investment in Arm

Figure 1: Shareholder value (NAV)

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

has become the world’s largest telecom
company by market capitalization*1 and we

Borrowings(Pro forma; as of June 20, 2024)

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

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

already widespread in the U.S. and Japan to

10 X(Equity IRR 34%)

¥14 tnfourth stage involved our collaboration with

MOIC

55%

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

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

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

25%

T-Mobile /Deutsche Telekom

2016. With Arm’s share price surging since
its public listing in September 2023 our

SVF1 / SVF2 /LatAm Funds

Yahoo Japan*

SoftBank
Other

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 (FY)

9%

5%

6%

¥3.3tn¥2.3tnInvestment

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

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

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CEO

we announced plans to double the number

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

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

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

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

confidence, and I was filled with self-doubt.

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

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

environments, could be scaled to different

immediately increase. However, the increased

ever because I realized our ultimate mission:

investment in engineers enabled significant

the evolution of humanity. What greater

culmination of a network of AGI models

expansions from smartphones into new end

cause could there be? This mission will be

stimulating each other to rapidly accelerate

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

their evolution. While expert opinions may

performance cloud servers and network

automobiles, and the Internet of Things

artificial super intelligence (ASI) —AI that

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

(IoT). Ultimately, these strategic investments

is ten thousand times more intelligent

times more intelligent than humans andShipments of Arm-based chips continue

solidified Arm’s position as a cornerstone inthan human wisdom. Ever since, I haverealized in about ten years. The realization of

to grow, with approximately 287 billion

the AI industry.

been grappling daily with the challenge of

ASI, which will far surpass human wisdom,

shipped to date.*3 With its outstanding

realizing ASI. It feels like solving an intricate

will mark a turning point in human history.

design prowess, Arm has created processor

set of simultaneous equations.

All conventional wisdom will be overturned.

technology that combines high compute

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

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

and multiplication involves a succession of

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

performance with low power consumption.

challenges. While we have made missteps

birth of humans. Unlike other species,

the next ten years will be a critical juncture.

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

we invented tools and technologies that

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

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

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

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

as Leonardo da Vinci and Albert Einstein

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

emerged, sparking new ways of thinking and

ASI-powered smart robots will perform

so, we would now be a major shareholder

driving the evolution of humanity. Currently,

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

develop artificial general intelligence (AGI)

construction, and housework. In anticipation

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

opportunity today to buy either Arm orthat enables it to autonomously perform ain various robotics projects. In 2024, we

NVIDIA, I would choose Arm in a heartbeat

wide range of learning and problem-solving

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

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

While evolution and multiplication are vital

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

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

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

is to build an autonomous driving system

Our mission: Evolution ofhumanity

SoftBank Group Report 2024

14

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CEO

Driving innovation in chips,
data centers, androbotics with partners

interest-bearing debt divided by the equity

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

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

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

pandemics that have afflicted our species for

As great as Arm is, no single company
can realize ASI on its own. In recent years,
in addition to NVIDIA, which is rapidly
growing as a chipmaker for generative AI,
hyperscalers (large-scale cloud providers)such as Amazon Web Services, Alibaba,

200,000 years.

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

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

Microsoft, and Google have been developing

Once ASI is realized, we will see dramatic

Revolution—Happiness for everyone. All

Arm-based chips one after another. Similarly,changes in our lifestyles, and in socialthat has changed is the means to achieve

SBG plans to collaborate with various

rules and systems. This may raise some

this end. As technology evolves, so too

companies to realize the AI chips necessary

fundamental questions—what does it mean

must our methods. ASI is the latest means

for ASI. ASI will also require AI data centers

to work? What does it mean to be human?

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

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

ancient Greek philosophers did, we should

thank our shareholders for their faith in our

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

the advancement of AI will lead to surges increate ASI.

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

Last year, I lost my father to cancer.
Grief-stricken, I wept day in and day out. On

will be working as one to achieve this

top of that, my mother suffered a stroke.

goal, we will not be acting alone. In both

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

diseases. It could be difficult to provide aseek to collaborate with partners who sharesolution to these conditions with AGI as

our aspirations. We will take a dynamic

it simply substitutes human intelligence.

approach, accepting that the journey will not

However, ASI, with ten thousand times

be entirely smooth. We will never skimp on

the human wisdom, could surely find ways

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

is to keep Loan to Value (LTV: adjusted net

behalf of human drivers? ASI could reduce

SoftBank Group Report 2024

June 21, 2024
Representative Director,
Corporate Officer, Chairman & CEO
Masayoshi Son

15

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CFO

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

Avoiding change is
our greatest risk

has consistently adapted its core business to

We have consistently evolved our businessthe changing times. Our current focus is on

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

investment company is best measured by our

Revolution—Happiness for everyone. As a

Net Asset Value (NAV). At the end of Marchleader in the cutting-edge technology field,

2024, our NAV had grown to ¥27.8 trillion,

avoiding change is our greatest risk. Fromalmost double the value at the end of the

our founding to our public offering in 1994

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

listed, our main business was software

went public in September 2023 and remains

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

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

forward to our ongoing evolution with Arm,

Revolution means something very different

as we continue to enhance corporate value.

than it did 40 years ago when Mr. Son

See page 20 for details of NAV.

(Masayoshi Son, Representative Director,
Corporate Officer, Chairman & CEO)founded the company. Back around 2000,
when everyone was just starting to get theirown communication devices, we foresaw theinevitable AI revolution and predicted that it
would be unprecedented in scale. With

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

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

SoftBank Group Report 202416

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CFO

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

in the future. Investors have various

Mr. Son has stated, “AI will redefine all

stagnation poses a risk. This mindset has

through has turned out to be a significant

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

benefit, as it ultimately preserved a valuable

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

position to understand and appreciate these

designs, will continue to see the expanded

expectations.

shipments of Arm-based chips and grow as a

NVIDIA is a company with significant

Supporting Arm’s successful
IPO

growth potential, but even for them, Arm

The process leading to the IPO

has become an indispensable part of their

which held 24.99% of Arm’s shares,

companies, we can generate synergies thatstrategy. Having Arm, which is positioned at

proposed that SBG purchase these shares.

will lead to the creation of new businesses,

Looking back at fiscal 2023, Arm’s IPO on

the top of the semiconductor supply chain,

Although some stakeholders questioned theindustries, and ecosystems. Arm is at the

the Nasdaq Global Select Market in

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

heart of this transformation, and we aim to

September 2023 was undoubtedly the

our AI strategy. If the NVIDIA deal had gone

¥2.3 trillion that was ultimately about 20%

continue to be a hub that connects Arm tohighlight. Amid the economic uncertainty

through, the increase in NVIDIA’s share pricehigher than Arm’s IPO price, we consideredbusinesses and industries around the world,

caused by the COVID-19 pandemic in 2020,

would have boosted our NAV beyond its

the price reasonable, as we believe in Arm’s

while also leading the way in changing

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

future growth potential more than anyone

lifestyles through the Information Revolution.

defensive strategy by monetizing ¥4.5 trillion

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

I personally look forward to growing

worth of assets. This decision ultimately led

portfolio might well surpass the potential

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

gains from the NVIDIA deal. We feel that this

IPO, and we believe that those who werestakeholders by enhancing investment

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

initially skeptical are now pleased with our

performance.

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

Prior to Arm’s IPO, SoftBank Vision Fund 1,

company. By collaborating with other Groupdecision. Meanwhile, the deal was also

Steady rise in Arm’s share pricesince the IPO

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

Arm was also part of this monetization

Arm priced its IPO price at $51 per ADS,

plan. Considering the future potential ofwhich I believe is a reasonable level. While

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

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

AI investment strategies andchallenges
In fiscal 2023, we doubled down on ourbelief that AI will redefine all industries andincorporates its future value, I question theCreating a new ecosystem withArmstock and cash transaction. Although theinclusion of uncertainty factors in potential

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

deal ultimately did not receive regulatory

future outcomes, as this can lead toits own future growth strategies andlives, such as logistics, robotics, andapproval and did not go through, we still

overvaluation. Therefore, I believe that theambitions. We are confident that the world’s

autonomous driving. On the other hand,

believe that our decision at that uncertain

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

time was the right one. Now, a few years

Arm’s strategies that are likely to be realized

AI to advance in their respective fields. As

the AI world, including hyperscalers, now

SoftBank Group Report 2024

sought investment opportunities in areas17

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CFO

face greater challenges. While generative AI

Key indicators

March 31, 2023

March 31, 2024

¥14.1tn¥27.8tn

provides a road map for a rapid technologicaland theoretical growth trajectory, existingdata centers are unable to provide the

NAV(Net Asset Value)immense computing power required to
power the actual services. In addition, we areentering an era that will require an
unprecedented amount of electricity, far

LTV(Loan to Value)

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

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

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

11.0 %¥5.1tn

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

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

Investment
trusts¥2,141tn¥106 tn

As of Dec 31, 2023

Currency anddeposits¥1,127tn

Equity, etc.

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

our NAV doubled over the year to a record

commitment to financial security wasestimated ¥2.1 quadrillion in household

high level, while maintaining strong financial

reinforced by our offensive approach.

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

deposits, while less than 20% is invested in

As an investment company, we are often

trillion, our Loan to Value (LTV) improved by*2 Consolidated net interest-bearing debt – Net interest-bearing
debt of self-financing entities, etc. – Other adjustments.
Bank deposits and cash position at PayPay Bank Corporation
are excluded.

seen as being all about offense. However, as

2.6 ppt to 8.4%, and we maintained a

Mr. Son himself has said, “I’m good at

consistently safe cash position* of ¥4.7

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

Fundraising on track

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

that the Japanese bond market is about 20

ability to halt offensive moves in order toinvestments that boost NAV. Therefore, incompleted bond issuances of ¥550 billion to

years behind global markets. For two

strengthen our defense. In fiscal 2023, we

fiscal 2023, we invested nearly $4 billion

retail markets in March 2024 and ¥100

decades, I have been dedicated to offering

shifted from the defense-first approach we

without deteriorating our financial position,

billion to wholesale markets in April 2024.

products that enhance investment

adopted in fiscal 2022 to a balanced

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

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

With our bond issue, JCR upgraded our

defense. As a result of this shift in strategy,

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

SoftBank Group Report 2024

debt*2 increased by ¥0.8 trillion to ¥2.6

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

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

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

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our CFO

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

A+

Acquisition of
Acquisition
Japan Telecom of Vodafone KK

Acquisition
of Sprint

Acquisition Listingof Arm of SoftBank

Listingof Arm

JCR

A

First
upgrade in(Stable) 12 years​

A
ABBB+
BBB

S&P

BBB-

Fiscal 2024 financial strategy

Financial
Principles

BB+

BB+
BB

(Stable)BBB+

Financial management
synchronized withinvestment strategy

Financial
Philosophy

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

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

April 2024, and S&P upgraded by one notch

Of course, it is crucial to calmly analyze

increasing our future NAV while maintaining

Financial strategies for fiscal2024

significantly fluctuating external factors, suchfinancial stability and continuing an

as the economic and market conditions, andaggressive investment stance.

their recognition of our activities since

Financial strategies should not change

to create specific action plans. The ongoing

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

and unfortunate conflicts around the world,

stable financial management. We havemanagement with our investment strategy,

rising diplomatic tensions, and the numerous

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

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

fiscal 2024 will influence the politicaldisciplined financial management has now

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

our financial policies. In other words,

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

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

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

SoftBank Group Report 2024

19

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

NAV (Net Asset Value) & LTV (Loan to Value)

NAV hits

near-record highs

Boosting NAV Growth by Investing in
the Information Revolution

As of March 31, 2024

NAV

¥27.8 tn

As of March 31, 2024

NAV (Net Asset Value) is the most important indicator for assessing the value of SBG and is calculated

2019
Launched SVF2

as equity value of holdings minus SBG’s adjusted net interest-bearing debt (net debt). SBG aims tomaximize NAV over the medium- to long-term through an increase in the equity value of holdings.
Equity value ofholdings¥30.3 tn-

SBG’s net debt

¥2.6 tn

=

NAV

2016
Acquired Arm
2014
Alibaba listed on the New York Stock Exchange

2013
Acquired U.S.-based carrier Sprint (currently T-Mobile)

SVF1/SVF2/LatAm Funds
T-Mobile / Deutsche Telekom
SoftBank
Other
Alibaba

2017
Launched SVF1

¥27.8 tn

Arm

2023
Arm listed on the
Nasdaq Global
Select Market

2018
SoftBank listed on the Tokyo Stock Exchange（Net Asset Value）

See page 22 for the assumptions used to calculate the equity value of holdings and net debt.

Corporate Information

2006
Acquired Vodafone K.K.
(currently SoftBank)

2004
Acquired JAPAN TELECOM CO., LTD.
(currently SoftBank)

Yahoo Japan*

2000 Invested in Alibaba

1981

1995

2000

PC Software//

The Internet

2005
Broadband

2010
Mobile

2015

2020

(FY)

AI

Note: N
 AV data for each quarter-end. The NAV data are the Company estimates based on the information available to it, and the accuracy or completeness of the information is not guaranteed as the figures are not audited. NAV trends are not a guarantee of future figures andare not indicative of the price of SBG’s common shares or any securities held by the Company and should not form the basis of investment decisions. The figures are based on data before considering taxes unless otherwise stated. In the calculation of NAV, the equity value ofholdings and SBG’s net debt each exclude amounts to be settled at maturity or borrowings that are part of asset-backed finance. See page 22 for the assumptions used to calculate the equity value of holdings and net debt.
* Yahoo Japan Corporation (currently LY Corporation) became a subsidiary of SoftBank in June 2019.

SoftBank Group Report 2024

20

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

NAV (Net Asset Value) & LTV (Loan to Value)

An Important Indicator for Stable Financial Management: LTV
100%

LTV (Loan to Value) is a financial indicator that is calculated as SBG’s adjusted net
interest-bearing debt (net debt) divided by the equity value of holdings. SBG’s financepolicy is to maintain LTV below 25% in normal times with an upper threshold of 35%
that the equity value of holdings is more than sufficient to repay the debt.

SBG’s net debt

÷Equity value ofholdings=

90%

Increased
equity value of holdings
led LTV toeven in times of emergency. An LTV below 25% is a very high level of safety indicating

LTV（Loan to Value）

80%

a historically low level

LTV as of March 31, 2024

70%

60%

100%
50%

40%

35.0%

¥30.3
tn

30%

LTV
8.4 %

25.0%
20%

8.4 %

25.0%

¥2.6 tn
Equity value of holdings

10%

8.4%
0%

SBG’s net debt

See page 22 for the assumptions used to calculate the equity value of holdings and net debt.

Q4

Q1

FY2021

FY2022

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2023

Note: LTV data for each quarter-end

Note: T he equity value of holdings and SBG’s net debt each exclude amounts to be settled at maturity or borrowings that are part ofasset-backed finance.

SoftBank Group Report 2024

21

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Calculation of Equity Value of Holdings and Net Debt
As of March 31, 2024

Equity value of holdings¥30.3 tn

Equity value of holdings
Arm: the number of shares held by SBG × Arm share price – the payableamount of the consideration for Arm shares acquired from SVF1 through an
intragroup transaction – the equivalent amount of outstanding liabilities for
margin loans using Arm shares

Net debt¥2.6 tn

Net debt

Alibaba: the number of Alibaba ADSs equivalent to the number of shares heldby SBG × Alibaba ADS price – the sum of the outstanding maturity settlement
amounts (calculated by using the Alibaba share price) of the prepaid forward
contracts (collar contracts, forward contracts, and call spread) using Alibaba shares
SoftBank: the number of shares held by SBG × SoftBank share price – the equivalentamount of outstanding liabilities for margin loans, etc. using SoftBank sharesArm¥14.4 tn

Alibaba¥0.01tn

SoftBank¥3.2 tn

SVF1¥3.4 tn

SVF2¥4.4 tn

LatAm Funds
Deutsche Telekom¥1.0 tn¥1.8 tn¥0.3 tnOther¥1.9 tn

SVF1: SBG’s share of SVF1’s NAV + accrued performance fees, etc.
SVF2: SBG’s share of SVF2’s NAV, etc.
LatAm Funds: SBG’s share of LatAm Funds’ NAV + accrued performance fees, etc.
T-Mobile: (a) – (b) – (c)(a) The number of T-Mobile shares held by SBG, including the number of sharessubject to call options held by Deutsche Telekom × T-Mobile share price(b) The amount of derivative financial liabilities related to unexercised call
options held by Deutsche Telekom.
(c) Maturity settlement amount of the prepaid forward contracts (collar contracts)
using T-Mobile shares (calculated by using the T-Mobile share price).
Deutsche Telekom: the number of Deutsche Telekom shares held by SBG
× Deutsche Telekom share price - the maturity settlement amount of a collartransaction using Deutsche Telekom shares
Other: (d) + (e) + (f)(d) Listed shares: the number of shares held by SBG multiplied by the share priceof each listed share.
(e) Unlisted shares: calculated based on the fair value (or the carrying amount in
SBG’s balance sheet for those not measured at fair value) of unlisted shares,
etc. held by SBG.
(f) SB Northstar: SBG’s share of SB Northstar’s NAV + the fair value of NVIDIA
Corporation shares. Cash and cash equivalents, bond investments, and apart of interest-bearing debt except for margin loans and prime brokerageloans are treated as a part of the net interest-bearing debt of SBG andtherefore not included in the calculation of SB Northstar’s NAV.

SoftBank Group Report 2024

T-Mobile¥27.8 tn NAV• Net debt = SBG net interest-bearing debt
• SBG net interest-bearing debt = consolidated net interest-bearing
debt – net interest-bearing debt at self-financing entities, etc. –other adjustments
Consolidated net interest-bearing debt: excludes bank deposits
and cash position at PayPay Bank Corporation• Net interest-bearing debt at self-financing entities, etc.: the sumof gross interest-bearing debt – the sum of cash positions ofself-financing entities, such as SoftBank (including its subsidiaries
such as LY Corporation and PayPay Corporation), SVF1, SVF2,
LatAm Funds, and Arm, as well as SB Northstar. Cash and cash
equivalents, bond investments, and a part of interest-bearing
debt except for margin loans and prime brokerage loans of SB
Northstar are included in the net interest-bearing debt of SBG.
• Other adjustments: the sum of adjustments of (g) to (m) below(g) Among the hybrid bonds and hybrid loans with a redemption
date, the entire amount is recorded as interest-bearing debt
in consolidated accounting. Therefore, 50% is deducted fromthe interest-bearing debt (to be treated as equity).
		 Applicable bonds: 4th JPY-denominated hybrid bonds, 5th JPYdenominated hybrid bonds, 6th JPY-denominated hybrid bonds(h) Among the hybrid bonds, the perpetual bonds without aredemption date are recorded in their entirety as equity inconsolidated accounting. Therefore, 50% is included in theinterest-bearing debt.
		 Applicable bond: USD-denominated NC10 undated hybrid notes(i) Deduction of financial liabilities related to prepaid forward
contracts (collar contracts and forward contracts) using
Alibaba shares.
(j) Deduction of the equivalent amount of outstanding liabilities
for margin loans, etc. using SoftBank shares.
(k) Deduction of financial liabilities related to prepaid forward
contracts (collar contracts) using T-Mobile shares.
(l) Deduction of financial liabilities recorded as borrowings
related to collar transactions using Deutsche Telekom shares.
(m) Deduction of the amount equivalent to the outstandingbalance of the borrowings made through margin loans using
Arm shares.

22

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Arm CEO

Arm Technology Is Defining the Future of AI Computing
The world’s most pervasive
compute platform
Arm is a global leader in the development ofdesigner, and over 1,000 companies thatedge computing. Through our focus on

Access agreements are signed for threepartner with Arm to create billions of digitalenergy efficiency and our history ofyears, and then renewed, providing for Arm

electronics products.

continuous innovation, we have enabledlicense revenue for many years to come.

We fueled the smartphone revolution, andnew categories of “smart” consumer

The value of the royalty fee can be related

semiconductor technology, and we are

now we are redefining what is possible inelectronics. Today, power efficiency is notto the selling price of the chip and willdefining the future of computing. A future

cloud computing, transforming theonly important for enterprises andtypically increase as more Arm processors arethat is being built by one of the mostautomotive industry, enabling a thriving IoT

consumers reducing their energy bills but

included on the chip and as Arm’s mostsuccessful technology ecosystems in theeconomy, and making artificial intelligencealso critical in achieving sustainability for ouradvanced processors are included. As anworld combining Arm, the leading CPU(AI) a reality everywhere from data centers toplanet. This makes Arm’s CPU technology

example, Arm’s latest CPU technology,

ideal for computing applications everywhere

Armv9, is gradually replacing the previous

as the demands for increasing performance

generation Armv8*, especially inare insatiable, especially as more applications

smartphones and data center servers. For

adopt AI, while the need for energy

fiscal 2023, the typical royalty fee for Armv9

efficiency remains critical.

was around double the fee for Armv8.
Each Arm technology design is suitable forArm’s business model

Rene Haas
Board Director, SoftBank Group Corp.
CEO and Director, Arm Holdings plc

a range of end applications and can bereused in a variety of products to address

Arm licenses CPU designs to leading

multiple markets. Each new producttechnology companies that incorporate

generates a new stream of royalties. An Arm

Arm’s design into their computer chips.

design can be used in many different chips,

Customers pay a license fee to gain access toand certain Arm-designed products continue

our technology and a royalty on every chipto generate royalty revenue 25 years afterthat uses one of our technology designs.

their initial development.

The value of the license fee typicallydepends on the amount of Arm technology
being licensed, how advanced the*For the quarter ended March 2024, Arm estimates that Armv9
provided around 20% of royalty revenues, Armv8 around50%, and older architectures around 30%.

technology is, and the period over whichaccess is being granted. In recent years, Arm
introduced Arm Total Access, a
subscription-like business model where
customers get access to a large proportion ofArm’s technology portfolio. Most Arm Total
SoftBank Group Report 202423

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Arm CEO

Investing for the long term

• Expand access to Arm products throughour flexible business model, creating newtechnology can provide.

In our fast-paced world, new applications,ways for customers to include Arm

down slightly year on year as a decline in thedevice categories, and markets aretechnology in their products.

number of smartphones sold was offset by

their capabilities. In contrast, it can takemany years to develop the technology that isused in these new devices. Arm is investing

Revenues today are frominvestments made many
years agocurrently for products that it expects

It takes Arm’s customers time to develop theconsumers and enterprises will start using incomplex chips that contain Arm technology.

5 –10 years.

Licenses signed today are not expected to

Arm has been investing to develop newtechnology toyield royalty revenue for at least 2–3 years.
successful, they can bring additional royalty

growth markets, such as smartphones,

revenue streams that could last for years, andconsumer electronics, cloud servers,

even decades, to come.
investments, in fiscal 2023 Arm saw record

every smart device by providing

revenue growing 13.6% year on year

additional functionality, higher(U.S. dollar–based) as its latest products

performance, higher efficiency, and morecame to market.
Arm’s license and other revenue in fiscal• Expand our product offerings to include

2023 grew 38.5% year on year as leading

more complete systems, such astechnology companies aligned their future

Compute Subsystems (CSS), which are aroadmaps with Arm’s product portfolio,

pre-integrated platform of Arm IP, thatmany signing long-term, high-value Arm

further increase the value of our products

Total Access agreements. This demand has

to our customers.

been accelerated by the need for• Invest in next-generation technologies

energy-efficient AI capability across a widesuch as artificial intelligence and machinerange of end markets, from servers tolearning.

smartphones to sensors, which only Arm’s

SoftBank Group Report 2024

being deployed in high-end smartphones,
and market share gains in automotive
applications and cloud servers.

$2,817 mn$1,431 mn$1,034 mn

After several years of accelerated• Increase the value of Arm processors inspecialized designs.

$3,198 mn

command a higher royalty fee per chip,

However, if the chips are commercially• Gain or maintain share in long-term

automotive, and embedded computing.

Royalty revenue
License and other revenue

Arm’s latest technologies, which typicallycontinually emerging, many of which require
advanced semiconductor chips to provide

RevenueArm’s royalty revenue in fiscal 2023 was$1,783 mn$1,767mn

Fiscal 2022

Fiscal 2023

Note: Revenue refers to the Arm segment’s net sales (IFRSs).

24

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Arm CEO

Royalty revenue split
within end markets
Cloud

Automotive
Automotive

Cloud

IoT
MobileConsumerElectronics

IoT
MobileConsumerElectronics

Fiscal 2023

Fiscal 2015

Photo: Nasdaq, Inc.

Starting a new chapter inArm’s story

Representative Director, Corporate Officer,

provide leadership to Arm’s strategy. Also,
SBG currently holds a large proportion oflisted on the Nasdaq Global Select Market.

Arm shares and so will directly benefit from

This was a historic event for the company

any appreciation in Arm’s valuation.

and its employees, one that we celebrated

Together, we will benefit from the growthacross all our offices around the globe. Armof the semiconductor industry, the increasing

has been developing leading technology for

deployment of AI capability in chips fromover 30 years, but so much has changed incloud to edge computers, and the higher

just the past few years since SBG acquired

value per chip from the latest Arm

Arm in 2016.

technology. These are trends that enable

SoftBank Group Report 2024

$3.2bnposition as Arm’s Chair and continues to

Arm IPO on September 14, 2023, when we

Arm’s future. Masa (Masayoshi Son,

Revenue

Chairman & CEO of SBG) maintains his

For me, the highlight of the year was the

SBG will continue to play a major role in

Note: Based on royalty reports reported to Arm by customers. Differs from royalty revenue reported by Arm. License revenue notincluded. Reference material to explain image

Arm to grow for years, if not decades tocome.

Engineers
Non-Engineers

7,096

Headcount

4,064

Headcount$1.5bnFiscal 2015

Personnel

Fiscal 2023

Note: Based on accounting standards and fiscal year at thetime. Revenue refers to revenue reported by Arm.

FYE2015

FYE2023

Note: Personnel (the number of employees) is as of March 31, 2016,
and March 31, 2024. “Engineers” and “Non-Engineers” arebased on job type. Engineers in fiscal 2015 includes
program management, technical support, and othertechnical positions. Engineers in fiscal 2023 does not include
those positions.

25

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from SoftBank Vision Funds Management

Global Uncertainty: Remaining Flexible and Resilient
We have been an early and long-timeworld of venture capital. Higher rates

the “Magnificent Seven”—continued theirchampion of AI and have continued totranslated to higher cost of capital forstrong performance in 2023, driven bybelieve AI will redefine the world as we

execute a disciplined global investment

cash-intensive start-ups looking to expand.

excitement about AI’s endless possibilities.

know it. We have waited a long time to getstrategy in 2023—a year characterized by

These effects were compounded through aAmid mixed performance for the rest of theto this moment, and we are looking forward

persistent uncertainty in private and publicmore challenging funding environment inmarket, these top stocks helped drive up theto witnessing the true power of AI.

markets. Geopolitical tensions persevered

2023, with the December quarter marking

S&P 500 by more than 20% for the year.

and, in some cases, escalated during the year,

the slowest quarter for new private venture

We have invested in the AI megatrend forbackdrop, we continued to strike a careful

including between the U.S. and China, in

capital funding rounds, both in number ofyears and are true believers in the power ofbalance between maintaining strict financial

Ukraine, and across the Middle East. Inflation

rounds and volume of capital invested, in

AI to unlock growth and efficiencies anddiscipline and remaining nimble whencontinued to weigh on growth, and central

more than six years.*1

make the world a better place. Recent andcompelling investment opportunities arose.

significant developments in AI vindicate our

In fiscal 2023, we invested in a handful ofbright spots in the public markets. The

belief that we are on the cusp of a newcompanies that we believe have compellinghighest-performing stocks—referred to as

dawn of technology—all driven by AI.

long-term value creation potential, such as

banks across the globe held interest rates atmultiyear high levels.
The higher-rate environment impacted the

Rajeev Misra
Co-CEO, SoftBank Investment Advisers

SoftBank Group Report 2024

Despite these challenges, there were a few

Just as the Internet did in the 1990s, we

Against a changing macroeconomic

Alex Clavel
Co-CEO, SoftBank Investment Advisers
CEO, SoftBank Global Advisers26

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from SoftBank Vision Funds Management

Tractable, Cato Networks, and TravelPerk.

position in Arm,*5 which completed its IPO in

We also participated in 32 follow-on rounds

September 2023.

in existing portfolio companies,

Notwithstanding, the broader market for

demonstrating our conviction in the long-

new listings remained tepid and is expected

term growth of the portfolio.

to stay that way for much of 2024. Our

The hard work behind the scenes in

Equity Capital Markets teams continue tohelping portfolio companies weather

closely monitor market conditions, while oursustained volatility continues to yield results.

operational teams work with portfolio

We saw performance stabilize across thecompanies to ensure they are best positioned

funds, with a combined investment gain of

to enter the public markets at the right time.

$4.8 billion*2 for fiscal 2023. Our investment

Our late-stage portfolio constitutes aand operating teams continue to work closely

combined fair value of $32 billion*4 inwith our portfolio companies to encouragecompanies that are ready to list when thecapital-efficient growth. Specifically, we aretime is right. We know the IPO window will

focused on helping them solidify their market

reopen, and when it does, we believe we’ll

positions and grow revenues in a sustainable

be in a position to take full advantage.

way. With the cost of capital at elevatedHistory has taught us that market cycles

levels, we have worked constructively withcome and go, but our strategy remains theour portfolio management teams to maintainsame: Identify and invest in the nascentstrong cash positions. We are encouraged bymegatrends that will shape the future.

our portfolio companies’ ability to manage

This conviction is underpinned by ourthis environment, a sign of their enduringcommitment to financial discipline. We areresilience.

encouraged by early signs that the tide isContinued progress was also made in

beginning to turn, strengthening ourmonetizing assets at constructive prices.

confidence in our investment principles andDuring fiscal 2023, we monetized more thanin our portfolio company founders, who$22 billion*3 from investments. Total grossappreciate our long-term partnership. We areproceeds now stand at more than $68 billion

committed to generating sustainable returns,

since inception,*4 at a gross MOIC of 1.71x.

and, looking forward to fiscal 2024, we areThis is a strong achievement against a

optimistic for what is to come.

choppy market backdrop, in part realized bysuccessfully exiting SoftBank Vision Fund 1’s
SoftBank Group Report 2024

TODAY

AI
Revolution

Information
Industrial Revolution
Revolution

Agricultural
Revolution

SoftBank Vision Funds fiscal 2024 priorities
01-

Investing in the AI
Revolution

02-

Unlocking Portfolio Value

03-

Disciplined & Consistent
Monetization*1 Source: State of Venture 2023 Report. CB Insights. January
2024.
*2 Based on gain (loss) on investments at SVF1, SVF2, and
LatAm Funds recorded in the SoftBank Vision Funds
segment. All other figures in this section are on an SVF
stand-alone basis. Before deducting third-party interests, tax,
and expenses.
*3 Net total of gross consideration from monetization in fiscal
2023, including derivatives, dividend income and interest.
Includes deferred proceeds from Arm transaction - payments
to be made in installments over a two-year period.
*4 As of March 31, 2024
*5 This gain is eliminated in consolidation, as it resulted from an
intragroup transaction of subsidiary shares.

27

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

SoftBank Vision Funds In Focus

Crystallizing a Long-Term Investment Strategy
See SoftBank Vision Funds’ website for further details.

While we are not immune to broader market

from our broad exposure to businesses$52.4 billion, with a total cumulative

challenges, the current conditions have

utilizing AI technology.

return*2 of $33.1 billion. Despite a grossunderscored the importance of constructing

SoftBank Vision Funds primarily invest

loss primarily due to markdowns of a

Performance snapshot

a diversified portfolio centered on resilientacross nine key sectors to maintain exposure

wide range of private investments, fiscal

As of March 31, 2024

business models and clear paths to value

to the technologies that are powering secular

2023 saw the loss partially offset bycreation. These conditions have also

growth. We also continue to balance ourincreased fair values from a recovery invalidated our decision to maintain caution in

geographic exposure while prioritizing

public assets and private up rounds.

the near term. Although we largely remained

investments in the U.S., EMEA, and India.

– SoftBank Latin America Funds havein “defensive mode,” in fiscal 2023,

Notably, in India, SoftBank Vision Funds

invested in 105 companies at an

SoftBank Vision Funds executed a handful ofcompanies accounted for 50% of all growthacquisition cost of $7.4 billion, with aselect investments with an eye toward

capital invested in fiscal 2023 and 60% of all

total cumulative return*2 of $6.3 billion.

continued diversification of our AI portfolio

capital raised at IPOs since 2021.

LatAm Funds demonstrated continued

LatAm Funds
SVF2
SVF1

$149.4 bn $145.7bn$7.4 bn$6.3bnacross a spectrum of geographies, sectors,$52.4 bn

$33.1bn$89.6bnby the investment performance ofinvestment gain. We were able to unlock the

Nubank and VTEX, as well as strategic

from businesses deploying AI as a corevalue of our funds through notable exits,

M&A, including the acquisition of Pismo

service offering to customers— including

including Arm and Zomato.

by Visa for $1 billion.

We have invested across the full AI stack,

From inception through March 31, 2024,

developed by companies such as Picsart and

SoftBank Vision Funds have built an

Labelbox—to other companies utilizing AI in

unprecedented portfolio ecosystem of moretheir normal-course business operations tothan 470 investments (including exited

help increase profitability and efficiency, suchinvestments), at an acquisition cost ofas Klarna. Though the creative capabilities of$149.4 billion:

generative AI have driven the most buzz, we– SoftBank Vision Fund 1 has made 94

believe we are still in the early stages of theinvestments at an acquisition cost of

era of AI and that the vast potential of its$89.6 billion, with a total cumulative
return*2 of $106.3 billion. It benefitted

applications is still emerging. With a

SoftBank Group Report 2024

Cumulative
investment return(Fair value + Sale price)*1 Source: Goldman Sachs. Generative AI could raise global
GDP by 7%. April 2023.
*2 Includes the fair value of investments held as of March 31,
2024 and the sale price of exited investments.
Note: The figures in this section are based on gain (loss) on
investments at SVF1, SVF2, and LatAm Funds recorded in the
SoftBank Vision Funds segment. Figures in subsequent
sections are presented on an SVF stand-alone basis. Before
deducting third-party interests, tax, and expenses. The
classification of public/private investments is as of March 31,2024.

Green shoots on the horizon

projected global GDP uplift of up to 7%,*from strong performances across certain

the economic impact of AI will be

public and private investments, notably

Our financial results reflect broader trends intremendous. As AI grows and its applications

ByteDance and Coupang.

the market. We have seen growing revenue

become more universal, we anticipate– SoftBank Vision Fund 2 has invested inin public companies, generating high cash

significant benefits for ourselves and our LPs

277 companies at an acquisition cost offlow and creating strong cash positions

1

Investment cost

momentum in fiscal 2023, in part driven

fiscal 2023, with a cumulative $4.8 billion

and technologies.

pioneering generative AI technologies$106.3bn

Fund performance stabilized markedly in28

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

SoftBank Vision Funds In Focus
Top 10 public investments by fair value
As of March 31, 2024

Current Investments*1

45

Unrealized FV – Public*2$21.0 bn

% of Total Unrealized FV*3

27%

SVF
1
SVF
1
SVF
2
SVF
1
SVF
1
SVF
2
SVF
1
SVF
1
SVF
1
SVF
1

OthersFV($ bn)*2

NTM CONSENSUS
REVENUE GROWTH*4

CURRENT MARKET CAP($ bn)*4

PEAK MARKET CAP($ bn)*4

6.2

17%

31.9

86.5

3.7
2.4
1.3
1.2
0.9
0.8
0.8
0.4
0.4
2.8

9%
9%
17%
22%
42%
18%
26%
20%
-2%
10%*5

18.4
6.2
12.4
7.8
26.5
55.6
8.5
3.9
4.7

79.1
18.0
33.7
23.3
31.6
84.4
10.4
6.3
31.3

*1 Current Investments includes publicly listed portfolio companies that had not been fully realized as of March 31, 2024.
*2 “Unrealized FV” and “FV” are the unrealized value of SoftBank Vision Funds’ stakes as of March 31, 2024. Full Truck Alliance is both an SVF1 and SVF2 investment. Total figures may differ due to rounding.
*3 % of Total Unrealized FV is the sum of the current public portfolio companies’ Unrealized FV divided by SoftBank Vision Funds’ total Unrealized FV.
*4 Source: Capital IQ*5 Median NTM consensus revenue for other publicly listed portfolio companies

across our portfolio companies,

drivers of success, such as strong product-

Overall, improvement in the quality of thedemonstrating signs of recovery for themarket fit and notable commercial traction.

portfolio, particularly in SoftBank Vision Fund

broader market.

As evidence of our disciplined approach:2, reflects a successful strategy marked by

We are cautiously optimistic that even theContinued focus on exit
opportunities —for the rightprice– The median reduction in cash burn

positive developments within the businesses

valuations of public companies, which haveacross our private portfolio companies

and beneficial industry headwinds. We have

The total value of our late-stage portfolio

dipped recently, will recover. We believe

was 43% year over year.*3

continued to invest prudently where we haveamounted to $32 billion as of March

there is significant upside to be realized, and– 41%*4 of our private portfolio

seen opportunities at appropriate valuations.

31, 2024, including a strong pipeline of

we remain vigilant in seeking monetizationcompanies achieved year-over-year
revenue growth of more than 40%.

warrant.

– 53%*4 of our private portfolio*3 Source: SBIA Analysis. Includes latest available year-over-year
quarterly cash burn data comparisons for private portfolio
companies. As of March 31, 2024.
*4 Based on portfolio company fair value. Source: SBIA
Analysis. Includes latest available year-over-year quarterly
revenue data comparisons for private companies. As of
March 31, 2024.
*5 Based on portfolio company fair value. Source: SBIA
Analysis. Excludes portfolio companies where cash runway
data is unavailable and investments in funds. As of March
31, 2024.

established businesses with well-tested

opportunities when market conditions
Looking back at fiscal 2023, we arecompanies achieved year-over-year

revenue flows and customer bases. For
example, e-scooter maker Ola Electric isseeking to raise $662 million through its

pleased to see our commitment to capital-

revenue growth of more than 25%.

efficient growth and financial discipline has– More than 90%*5 of our private portfolio

helped us weather volatility and positioned

companies maintain a cash runway in

us well for future success. We are focused on

excess of 12 months, ensuring stability and

The market anticipates a potentially moreinvesting in companies that demonstrate key

strategic maneuverability in the market.

consistent flow of public offerings in 2024,

SoftBank Group Report 2024

planned initial public offering expected later
this year—a float predicted to be India’s
largest offering to date.*629

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

SoftBank Vision Funds In Focus
with companies eyeing public listings being

connectivity for financial institution clients

stand at more than $68 billion, with 50

and public markets in fiscal 2023, we feelviewed as indicators of the state of the IPO

across Latin America, Asia-Pacific, andportfolio companies publicly listed on global

well-positioned to adapt to the changes thatlandscape. We will remain highly selective

Europe. In addition, it was announced in

exchanges. We have demonstrated an ability

fiscal 2024 will undoubtedly bring. Throughabout the opportunities we pursue andFebruary 2024 that Cohesity intended toto pick winners and identify potential early inour diversified portfolio, disciplined approachensure that our portfolio companies have themerge its data protection business withthe company life cycle. We remain focused

to investing, and strong track record of asset

right controls in place before going public.

Veritas to become a market leader in dataon identifying transformative leaders andmonetization, we believe our investment

security and management, valued at $7

helping them scale sustainably, all with anplatform is well-equipped to identify andbillion.

eye toward maximizing gains for our LPs,

capitalize on growth opportunities acrossincluding SBG.

AI-enabled verticals.

M&A represents an additional pathway toreturns beyond public listings. As of the endof fiscal 2023, 14 of our portfolio companies

We remain disciplined with respect

were sold or merged with other businesses.

to monetization, with gross proceeds ofWhile remaining cautiously optimistic

For example, Pismo completed a $1 billion

more than $22 billion in fiscal 2023. The

about the encouraging signs we are starting

merger with Visa to provide support andtotal gross proceeds since inception now

to see emerge from the uncertainty in private

Achieved listings & late-stage portfolio

50

As of March 31, 2024

45

CUMULATIVE PUBLIC LISTINGS SINCE INCEPTION*1

38+5
Listings*6 Ola Electric Prospectus: https://cdn.olaelectric.com/sites/
evdp/pages/investor/Ola_Electric_Mobility_Limited_DRHP.pdf$32 bnLate-Stage Portfolio*2
SELECT COMPANIES

*3

SVF1

SVF2

13

LatAm Funds

8
1
2017

3
2018

2019

2020

2021

2022

2023

2024 & Beyond*1 Listings since inception include companies invested in on the IPO / public listing date. WeWork and Full Truck Alliance are both SVF1 and SVF2 investments.
*2 Includes portfolio companies that have raised as Series E or equivalent late-stage round as of March 31, 2024, or are likely to publicly list in the near term based on SBIA Analysis.
*3 SVF1 continues to hold one ordinary share of Arm Holdings plc.
Note: S elect investments presented herein are solely for illustrative purposes and have been selected in order to provide examples of investments made by SVF1, SVF2, and LatAm Funds that have gone public or, in the opinion of SBIA, may go public in the future and do not
purport to be a complete list of investments. References to investments included herein should not be construed as a recommendation of any particular investment or security. It should not be assumed that investments made in the future will be comparable in quality or
performance to the investments described herein. Past performance is not indicative of future results.

SoftBank Group Report 202430

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

SoftBank Vision Funds In Focus

Outline of SoftBank Vision Funds
As of March 31, 2024

SVF1

SVF2

$98.6 billion$59.8 billion*$7.8 billion*1

Limited partner

The Company, external investors

The Company, management*2

The Company, management*2

Fund manager

SB Investment Advisers (UK) Limited(SBG’s wholly owned foreign subsidiary)

SB Global Advisers Limited(SBG’s wholly owned foreign subsidiary)

SB Global Advisers Limited(SBG’s wholly owned foreign subsidiary)

2017

2019

2019

Fund life

Until 2029
+ Up to two 1-year extensions by SBIA

Until 2032
+ Up to two 1-year extensions by SBGA

Until 2032
+ Up to two 1-year extensions by SBGA

Current cycle

Value creation and realization period

Investment period

Investment period

Total committed capital

Start of operation

Returned nearly 70%of the preferreddrawn capital

Capital Structure of SVF1
Preferred equity (fixed distribution)• A fixed rate of 7% on outstanding
preferred equity contributions is
distributed in proportion to theinvestment principal, regardless of
the investment performance

Ongoing coupon payment
is significantly reduced• SBG is positioned for agreater share of future
returns•$98.6 bn
$40.0 bn

• Prioritized over equity upon distribution$49.9 bn
$13.3 bn$59.8 bn

Equity (performance-based distribution)• Distribution to limited partners is fully
dependent on investment performance$57.3 bn

$58.6 bn

• Has lower priority during distribution,compared to preferred equity interest
SBG has committed to equity interests

LatAm Funds
1$36.6 bn
$28.1 bn*3

(48% of equity)

Committed capital$17.5 bn*3

(48% of equity)

Outstanding capitalCommitted capital

Drawn capital$7.8 bn$7.4 bn

Committed capital

Drawn capital*1 Effective September 27, 2023, SBGA, the manager of SVF2 and LatAm Funds, may allocate the remaining committed capital from SVF2 to LatAm Funds up to the amount of $4 billion and in such circumstances, the total commitment to SVF2 will be reduced.
*2 A co-investment program has been introduced for SBG’s management. An investment entity for the co-investment program participates in both funds.
For further details of the program, see “a. Co-investment program with restricted rights to receive distributions” in “(1) Related party transactions and balances” under “Note 45. Related party transactions” in “Notes to Consolidated Financial Statements” in “Financial Report 2024.”*3 Excludes committed capital for an incentive scheme related to SVF1.

SoftBank Group Report 2024

31

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Our Sustainability

Sustainability Vision “Help Shape the Next 300 Years for
Our Future Generations and the Planet”
The SoftBank Group’s philosophy, Information Revolution—Happiness for everyone, embodies our determination to bring happiness to everyone, even to future generations 300 years from now.
To create a world where people can live in harmony with the earth, we will fulfill our responsibility as a leader of the Information Revolution to realize a sustainable society.

Sustainability principles

Material issues relating to sustainability

SBG has established The SoftBank Group

Based on our view of double materiality, SBG classifies issues to be addressed from two perspectives: the importance to stakeholders and to the

Sustainability Principles as a guideline for theGroup. Among these issues, we identify material issues relating to sustainability that should be addressed with priority, determined by the Board ofCompany’s sustainability, so as to achieve

Directors.

sustainable growth by meeting the

The eight material issues that we identified in fiscal 2020 have been updated to ten issues in January 2024, in consideration of social andexpectations of shareholders, creditors,

business environmental changes surrounding the Group. As for the importance to the Group, issues in the major business sectors in which thecustomers, business partners, employees,

Group is engaged are analyzed to determine the order of priority.

local communities, and all other stakeholders.

(“Material Issues”) reflecting the businessResponsible AI
Corporate governanceDigital inclusion

Supply chain
sustainability

Human rights

Conservation ofnatural capital

Climate change
Human capital

Privacy protection &information security
Portfolio companies’
sustainability(Important)Group company.

Importance to stakeholders

characteristics and social demands of each(Very important)material issues relating to sustainability(Extremely important)

Based on these principles, we identify(Important)(Very important)(Extremely important)

Importance to the GroupSoftBank Group Report 2024

32

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Our Sustainability

Concept of each Material Issue

Identification and review of Material Issues

Material Issues

Concept

Responsible AI

Stand at the forefront of the Information Revolution, and create
new value through the utilization of responsible AI to build amore connected, empowered and joyful world.

Climate change

Challenge issues of global climate change through businessactivities of a diverse group of companies.

Human capital

Strive for sustainable growth by creating an internal environment
in which employees, who are the source of value creation, canchallenge themselves and play an active role.

Privacy protection &information security

As a leader of the Information Revolution, sincerely deal withprotection of information assets, and lead to realization of a safe
and secure digital society.

Portfolio companies’ sustainability

As a strategic investment holding company, contribute to therealization of a sustainable society through investment, together
with portfolio companies.

Corporate governance

Under the fundamental concept of “free, fair, and innovative,”strengthen governance structure ensuring transparency andeffectiveness.

Digital inclusion

Promote the Information Revolution, strive to eliminate thedigital divide to realize a world in which everyone can benefit
from technology.

Human rights

Respect human rights for everyone in all aspects of our businessactivities, including those who belong to our supply chains.

Conservation of natural capital

As a global citizen, take serious efforts to conserve the global
environment.

Supply chain sustainability

Pursue to build sustainable supply chains by cooperating withstakeholders in all business activities.

The following process is performed to identify our Material Issues. In addition, Material Issues
are reviewed at least once in two years to reflect changes in social environments, theexpectations of stakeholders, and the business operations within each Group company.

STEP 1

STEP 2

Identification ofissuesMateriality
analysis

Identify social issues
in the social andbusiness environments
surrounding theGroup’s main businesssectors by referring toexternal guidelines andexperts’ opinions.

Analyze importancefrom two perspectives
based on our view of
double materiality:“importance tostakeholders” and“importance to theGroup.”STEP 3

STEP 4

STEP 5

Identification ofMaterial Issues

Setting andmonitoringof goals

Periodic
review

Exchange opinions
between relevant
members inside andoutside of the Group,and external experts.
Identify Material Issues
through discussion
at the Sustainability
Committee, andapproval of the Boardof Directors.

Set the goals / actionplans for the MaterialIssues based on theirimportance.
Continuously monitor
the progress of thegoals/action plans.

Review at least
once in two years
to reflect changes insocial environments,
the expectations ofstakeholders, and thebusiness operations
within each Group
company.

Goals or action plans
For the Material Issues that should be addressed with priority, we set the following goals / actionplans and will continuously monitor their progress.
Responsible AI
We aim for the establishment of an appropriate AI governance structure through discussions tobe held in our working group.
For further details on responsible AI initiatives, see page 45.

Climate change
We promote initiatives to achieve our Group target to “Achieve Carbon Neutrality by fiscal 2030.”
For further details on our initiatives related to climate change, see page 38.

Human capital
We regard human resources as a source of value creation and important stakeholders forsupporting our sustainable growth. Accordingly, we will continuously work on creating an internal
environment in which employees can challenge themselves and play an active role while making
the most of their individuality and abilities, as well as attracting autonomous and professional
human resources and supporting their growth and advancement.
For further details on our initiatives related to human capital, see page 42.
SoftBank Group Report 2024

33

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Our Sustainability

Sustainability governance

Sustainability risk management

Sustainability governance structure

At SBG, the Risk Management Office is responsible for the integrated management ofGroup-wide risks in accordance with the Risk Management Policy. As for sustainability-relatedrisks, the Sustainability Department under the CSusO collects information through reports frommajor Group companies and each department of SBG, and identifies risks taking into accountdiscussions in the Sustainability Committee. In addition, the Sustainability Department reports
the identified risks, countermeasures, and their status to the Risk Management Office under theframework of the Group-wide risk management process referenced above.
The Risk Management Office analyzes and assesses various risks including sustainability andtheir countermeasures. For material risks that could have a significant impact on the sustainablegrowth of the Group, the Risk Management Office collaborates with the parties involved in eachrisk in order to consider countermeasures and monitor the effectiveness of suchcountermeasures. Material risks and the status of countermeasures are reported to and discussed
by the Board of Directors and the Group Risk and Compliance Committee (GRCC) that consistsof the Board Director and the Corporate Officers of SBG. Based on the results of discussions, theRisk Management Office strives to strengthen the Group’s risk management system.

SBG’s Board of Directors has appointed the Chief Sustainability Officer (CSusO), who is
responsible for the promotion of Group-wide sustainability, and established the Sustainability
Committee for the purpose of promotion of the sustainability-related activities of the Group.
The Sustainability Committee continuously discusses overall policies such as the sustainability
vision and basic policies, policies of individual activities such as sustainability-related issues, goal
setting, and information disclosure, as well as sustainability promotion systems and operation
policies. The Committee is chaired by the CSusO (head of Investor Relation Department & headof Sustainability Department) and composed of three members including Board Director,
Corporate Officer, Senior Vice President, CFO & CISO (head of Finance Unit & head of
Administration Unit); Corporate Officer, Senior Vice President (head of Accounting Unit); andCorporate Officer, CLO & GCO (head of Legal Unit). The CSusO reports the details of discussionsof the Sustainability Committee to the Board of Directors for supervision.

Sustainability Committee
SBG’s Sustainability Committee was established in June 2020 and schedules meetings on a
flexible quarterly basis. In addition to the Committee members, the heads of relevant
departments attend the meetings to engage in cross-functional discussions based on specialized
knowledge and multiple perspectives.
The Committee met three times in fiscal 2023 (April, October, and December). The
discussions involved a variety of matters such as reviewing material issues relating tosustainability (”Material Issues”), integrating ESG factors into the investment process,developing an approach to responsible AI, advancing mandated non-financial information
disclosure, and responding to climate change.
Committee members

As of March 31, 2024

Chairperson

Yotaro Agari (CSusO, Head of Investor Relations Department & Head of Sustainability Department)

Othermembers

Yoshimitsu Goto (Board Director, Corporate Officer, Senior Vice President, CFO & CISO, Head ofFinance Unit, Head of Administration Unit)

See page 62 for our risk management.

Sustainability governance and risk management structure
Board of Directors of SBG
Supervise

Supervise

ReportSustainability Committee
Chairperson: Chief Sustainability Officer(CSusO)Supervise

Sustainability Department

Fiscal 2023: 3 (11 since established)Main
discussion
matters infiscal 2023

•Reviewing Material Issues•Developing an approach to responsible AI•Integrating ESG factors into the investment process•Advancing mandated non-financial information disclosure

SoftBank Group Report 2024

Promoting sustainability-related activities

ReportChief Risk Officer(CRO)
Risk Management Office
Manage, support

Tim Mackey (Corporate Officer, CLO & GCO, Head of Legal Unit)

Meetings held

Group Risk Compliance Committee(GRCC)
Supervise

Continuously discussing/addressing sustainability-related issues
and response policies

Kazuko Kimiwada (Corporate Officer, Senior Vice President, Head of Accounting Unit)

Committee activity

ReportReportReport, cooperate
Manage, support

Report, cooperate

Each department of SBG,
Each Group company•Responding to climate change•Addressing human rights risks•Strengthening sustainability information disclosure•Establishing sustainability-related Group policies
34

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Our Sustainability

Message from Our Chief Sustainability Officer (CSusO)

External evaluations of sustainability (as of June 30, 2024)

When we look at the external business environment, we can see that the AI

The main external evaluations of the Group’s sustainability are shown below.

revolution (a revolution in AI-powered technology) has made rapid strides, but
we also find sources of concern that will require greater attention, including

Inclusion in ESG indexes

geopolitical tensions and climate change. Amid this volatile and complex
backdrop, it is imperative that we continue to step up our sustainability efforts.
SBG has always remained true to its core philosophy: Information Revolution—
Happiness for everyone. This philosophy embodies our commitment tosustainability. We believe that the Information Revolution, as well as driving
business growth in the medium- to long-term, will deliver the vision ofautonomous driving for safer roads, remote learning for educational
Yotaro AgariCSusO,
Head of Investor Relations Department
Head of Sustainability Department

Index nameCompany name

Dow Jones Sustainability World Index (DJSI World)

SoftBank
LY Corporation

Dow Jones Sustainability Asia Pacific Index(DJSI Asia Pacific)

SoftBank
LY Corporation

FTSE4Good Index Series*2
FTSE Blossom Japan Index*3
FTSE Blossom Japan Sector Relative Index*4

SBG
SoftBank
LY Corporation

MSCI Japan ESG Select Leaders Index*5

SoftBank
LY Corporation

MSCI Japan Empowering Women Index (WIN)*5

SBG
SoftBank
LY Corporation

equality, and many other visions of a more sustainable world.
When it comes to sustainability, an important step we took during theyear under review was to revise our set of strategic material issues inlight of changes in both the internal and external business environment.

Two issues in particular remain paramount concerns: climate change and human capital. Climate

Major evaluations and accreditations
Sustainability Yearbook Member

change is an increasingly pressing challenge. SBG has committed to targets for reducing
greenhouse gas emissions as part of its climate-related goal:*1 Achieve Carbon Neutrality by fiscal

Eruboshi

SBG,*6 SoftBank,*7 LY Corporation*8

SBG
SoftBank

Selected as a “Sustainability Yearbook Member” by
S&P Global in “The Sustainability Yearbook 2024,” alisting of companies with outstanding sustainability.

Granted “Eruboshi” Level 3 (highest grade) certification
as a company promoting women’s advancement (2024,
Ministry of Health, Labour and Welfare)

CDP

Science-Based
Targets (SBTs)

2030. We have also started quantifying our Scope 3 emissions (which encompasses portfolio
companies) with intentions to present a road map for reaching net zero in Scope 3 emissions assoon as possible. As for human capital, it goes without saying that this is of crucial importance toour organization, which invests in AI and other innovative technologies. We are committed tolaying down the infrastructure to empower people to take on challenges and excel.
Another top priority is ensuring responsible AI. With the rapid progress in the AI revolution,
lively debates have ensued about the hidden risks of AI and what measures are needed to control
these risks. As an organization at the forefront of the AI revolution, SBG recognizes theparamount importance of building frameworks for responsible AI —frameworks that will control
the risks but also leverage the opportunities of AI to create new value.

SBG, SoftBank
LY Corporation

SoftBank

Earned a Climate Change Response Score of A- by the
CDP (a global environmental NGO). SoftBank Groupand SoftBank also earned a Supplier Engagement
Rating of A.

The goals detailed in SoftBank’s “Carbon Neutral 2030
Declaration” were certified as Science-Based Targets(SBTs) as they are based on scientific evidence.

Disclosing sustainability information is another priority. We will provide statutory disclosure andpresent a model that is most appropriate to SBG, an approach that reorganizes our previous

For further details, see each company’s website:

disclosures into non-financial information presented in clear, effective language.

*2

Finally, as an investment company, we recognize the need to promote sustainability throughour investment activities. Accordingly, we have introduced into our investment process a

*3

*4

SBG

SoftBank

framework for evaluating sustainability-related risks and opportunities.

*5*1 Applies to greenhouse gas emissions (Scope 1 and 2) from the business activities of SBG and its major subsidiaries (in principle,“Principal Subsidiaries” in the Annual Securities Report, but there are some exceptions for reasons such as regulations)*6 SBG was selected as among the top 15% companies in its industry.
*7 SoftBank was awarded a “Top 10% S&P Global CSA Score” in its industry.
*8 LY Corporation was awarded a “Top 10% S&P Global CSA Score” in its industry.

SoftBank Group Report 2024

LY Corporation

FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that SoftBank Group Corp., SoftBank Corp., and LY Corporation have been independently assessed according to the FTSE4Good
criteria, and have satisfied the requirements to become constituents of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies
demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.
FTSE Russell confirms that SoftBank Group Corp., SoftBank Corp., and LY Corporation have been independently assessed according to the index criteria, and have satisfied the requirements to become constituents of the FTSE
Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG)
practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.
FTSE Russell confirms that SoftBank Group Corp., SoftBank Corp., and LY Corporation have been independently assessed according to the index criteria, and have satisfied the requirements to become constituents of the FTSE Blossom
Japan Sector Relative Index. The FTSE Blossom Japan Sector Relative Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.
THE INCLUSION OF SoftBank Group Corp., SoftBank Corp., and LY Corporation IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION OF SoftBank Group Corp., SoftBank Corp., and LY Corporation BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMESAND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

35

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Our Sustainability

Portfolio companies’ sustainability

Investing in businesses that help address environmental andsocial challenges

Considering sustainability standards in investment activities, we support the sustainable

SBG believes that investing in companies with innovative technology and business models candevelopment of society at large while also enhancing the performance of our investments overhelp address global challenges such as climate change and economic inequalities, thereby

the medium- to long-term. Under this belief, we are undertaking the following initiatives.

contributing to a more sustainable world. SoftBank Vision Funds and other investment
businesses of the Group have already invested in many businesses that contribute to social andIntegrating ESG into the investment processenvironmental sustainability using AI.

SBG revised its Portfolio Company Governance and Investment Guidelines Policy in May 2021,
which originally set forth criteria on the governance of portfolio companies to be considered in
the investment process. The revised Policy clearly states that environmental and social risks andInvestments that help address environmental and social challenges

opportunities, in addition to governance, are to be assessed in the selection of investees and in
post-investment monitoring. The Policy applies to SBG and its subsidiaries.*9 SBG and each
investment subsidiary decide and implement their own specific investment plans. SBG willcontinue to actively integrate ESG into the investment process.
*9 Includes SoftBank Vision Funds and other investment subsidiaries managed by subsidiaries of SBG but excludes listed subsidiaries andsubsidiaries that the Group is restricted from controlling for regulatory reasons and their subsidiaries.

ClimatechangeIntegrating ESG into SoftBank Vision Funds’ investments
Described below are ways in which SoftBank Vision Funds integrate ESG into their investments.

Environment

Pre-Investment: assessing the risks of potential investments
SoftBank Vision Funds recognize four material themes in environmental and social fields thatmatter to the international community and to the Company’s investment business: responsible

Higher work
satisfaction andproductivity

CirculareconomyNaturalcapitalSociety

Health,safety, andsecurityAI, climate change, human rights (forced labor), and discrimination/harassment. As part of its
due diligence, SoftBank Vision Funds evaluate the potential investment’s status in addressingthese material themes in environmental and social fields, as well as governance, to assess the

Cybersecurity

Closing gaps
and improving
accessrisks, and use the results for investment decision-making.
Post-Investment: monitoring and engagement
After investing, SoftBank Vision Funds continually monitor the portfolio companies to prevent
risks from materializing. They also engage with the portfolio companies in their efforts toaddress important tasks. Through such post-investment monitoring and engagement, SoftBank

Note: These are examples of portfolio companies that help address environmental and social challenges (as of December 2023).

Vision Funds help drive sustainable development and enhance the performance of the portfolio
companies over the medium- to long-term.

SoftBank Group Report 202436

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Our Sustainability

Addressing environmental and social challenges through our businesses
As a company that primarily engages in investment, SBG works through its portfolio companies to address environmental and social challenges.
The portfolio companies of SoftBank Vision Funds
Harnesses technology to empower fish andshrimp farmers

eFisheryeFishery is the largest aqua-tech company in Southeast Asia. The
company offers affordable software and hardware, improving
farmers’ economics end-to-end. One major innovation is theeFeeder, which automatically dispenses the appropriate feed
in a timely manner improving farming efficiency by reducing
manpower and wastage. This enables sustainable farming
as it reduces water pollution caused by over feeding, while
concurrently improving farmers’ yield by ～23%.

Makes green energy accessible to everyone

Enpal

Improves patient outcomes by connecting
surgical care

ProximieProximie’s digital surgery software facilitates live sharing of the
Operating Room for a connected surgical care ecosystem. The
company enables hospitals, surgeons, and medical devicecompanies to capture data, share information from anywhere in
real time, and generate new insights to improve productivity andpatient outcomes. Proximie directly contributes to improving
healthcare for patients and medical education for the next
generation of doctors.

Swell Energy

Helps small-scale farmers maximize their profits andfarm more sustainably

Swell Energy is creating a smarter grid through cost-effective,

Apollo Agriculture is an agri-fintech platform, empoweringclean, and flexible energy solutions. The company uses its
AI-enabled software modules to aggregate energy resources suchas battery storage systems to provide Virtual Power Plant services
to both utilities and end consumers. Swell helps homeowners andbusinesses achieve total energy security and independence fromrising energy costs through cutting-edge, smart energy
technology that leverages a distributed clean energy network.

small-scale farmers across Africa to increase their profits andfarm more sustainably. Apollo uses artificial intelligence andautomated operations to unlock the massive, untappedsmall-scale farming market, enabling farmers to access the
optimized financing, high-quality farm products, expert digital
advice, and risk management solutions they need to invest andscale their businesses in Kenya and Zambia.

SoftBank Group Report 2024

AI Medical Service

AI Medical Service develops AI-powered endoscopes, enhancing earlygastric cancer detection and patient survival rates. Its productsoftware was recently approved by regulators (Japan and Singapore).
The company represents a commitment to improving public healthand healthcare access. Through partnerships with leading medical
institutions, the company ensures responsible AI and patient dataprotection, promoting equitable healthcare. The initiatives embody ESG
values, focusing on social well-being and wider healthcare access.

Enpal provides a subscription-based decentralized solar energy
solution for residential consumers in Europe. The company offers
customers an all-in-one solar leasing and financing solution
including a photovoltaic (PV) solar energy system, energy
storage/ batteries, heat pumps, and EV charging. Its mission is tobuild renewable communities by making green energy accessible
and affordable for everyone.

Creates a smarter energy

Uses AI to detect early-stage cancer

Apollo Agriculture37

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Environment

Initiatives for the Maintenance andPreservation of the Global Environment
Maintenance and preservation of the global environment are our responsibility as global citizens and represent an important foundation supporting the Group’s sustainable development and growth.
We are working to reduce the negative impact of our business activities on the environment. We are also leveraging the strengths and advanced technologies of each Group company to address climatechange and other environmental issues.

Basic policy on environmental
initiatives

Climate change

Risk management

Department reports the countermeasures and

At SBG, the Risk Management Office istheir status to the Risk Management Office.

In May 2021, SBG established the

Climate-related information
disclosures in accordance with the
TCFD recommendations (Summary)Environmental Policy as a set of principles for

SBG recognizes the impact of climate change

As for sustainability-related risks including

conducting corporate activities inon our businesses and discloses its responseclimate change, the Sustainability Department

SBG identifies, analyzes, and develops

consideration of the global environment. The

to climate change in line with the TCFD

under the CSusO collects information throughactions to manage climate-related risks andCompany’s activities are in accordance withrecommendations.

reports from major Group companies and each

opportunities for the Investment Business ofdepartment of SBG, and identifies risks taking

Holding Companies and the SoftBank Vision

into account discussions in the Sustainability

Funds business (the “Company’s Investment

Committee. In addition, the Sustainability

Business”).

Environmental Policy

the Policy, which stipulates, among otherguidance, that we comply with environment-

For the full text of our TCFD disclosures, see “Environment
Initiatives” under “Sustainability” on our website.

related laws and regulations, respond toclimate change, reduce environmental impact,conserve resources, and preserve biodiversity.

responsible for the integrated management ofFor further details on our sustainability risk management,see page 34.

Group-wide risks in accordance with the Risk
Management Policy.

Strategy

Governance
SBG’s Board of Directors deliberates andmakes decisions on overall climate-related

Risks and opportunities in the Company’s Investment Business and our responses

actions, including identifying climate-related

Summary of risks and opportunities

risks and opportunities, developing

The following table shows a summary of the anticipated climate-related risks and opportunities

Supplier Code of Conduct

countermeasures, and setting the Group’s

for the Company’s Investment Business.

SBG sets out our Supplier Code of Conduct,target for greenhouse gas emissions

including compliance with environmental

reduction. In addition, the Sustainability

laws and regulations, managing andCommittee, chaired by the CSusO, discusses

reducing waste, avoiding wasteful use ofand examines climate-related actions, reports

resources, and consideration of biodiversity,

its findings to the Board of Directors, and isand requires our suppliers to work insupervised by the Board as required.

For the full text of the Policy, see “Environment Initiatives”
under “Sustainability” on our website.

accordance with the Code.
For the full text of the Code, see “Social Initiatives” under“Sustainability” on our website.
SoftBank Group Report 2024

For further details on our sustainability governance, seepage 34.

Opportunities

Risks

Expected returns from new investments
in companies that provide climate-related
technologies and services (e.g., climate tech)

Reduced investment opportunities due topotential portfolio companies’ reluctance toaccept the Company’s investments if its climatechange response is inadequate

Existing
investments

Enhanced enterprise value of existing portfolio
companies from their adequate response to
climate change

Decline in enterprise value of existing portfolio
companies due to their inadequate response to
climate change

Financing

Expansion of financing opportunities by
gaining investors’ support for the Company’s
steady responses to climate change

Decline in financing opportunities due to lower
evaluation from investors if the Company’s
climate change response is inadequateNew
investments

38

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Environment
Our recognized impact of risks andopportunities

Responses to risks and opportunities

Although it is true that the Company could

and opportunities through the following

lose investment and financing opportunities

measures:

To achieve the Group target

We are addressing the climate-related risks

to achieve the Group target, which is reviewed when required. SBG and its major subsidiaries
are undertaking greenhouse gas emissions reduction initiatives in accordance with this plan.

if its response to climate change is deemedgrossly inadequate, we are confident that it
is possible to avoid those risks by maintaining

Investments in climate tech

P.37

steady efforts to reduce greenhouse gas

Invest in companies that provide climate-related
technologies and services

emissions. Also, both the transition andResponses in the investment process

physical risks of the Company’s existing

Incorporate climate-related risk/opportunity
assessments into the investment process

portfolio companies are expected to belimited as they include many AI companies

production or complex supply chains.

Greenhouse gas emissions reduction

philosophy, Information Revolution—
Happiness for everyone, we aim to

Achieve Carbon Neutrality by fiscal 2030

Targets and record of performance at SBG and its major subsidiaries
Targets
SBG
SoftBank

Portfolio company engagement

relatively low and that have no large-scale
Meanwhile, under our corporate

Group target*1

P.36

Engage with portfolio companies on climatechange, including holding workshops for thosecompanies

for which greenhouse gas emissions are

In March 2024, SBG formulated and disclosed a plan for reducing greenhouse gas emissions*1

Reduce greenhouse gas emissions from ourbusiness activities, including switching toelectricity derived from renewable energy sources

Record of performance

Achieved Carbon Neutrality from fiscal 2020*2
Achieve Carbon Neutrality in its group by fiscal 2030*2
Achieve Net Zero in its group by fiscal 2050*3

Converted 81.6% of electricity
used at base stations torenewable energy (fiscal 2023)

LY Corporation Achieve net-zero greenhouse gas emissions in LY
Corporation by fiscal 2025*2
Achieve net-zero greenhouse gas emissions in its group by
fiscal 2030*2
Arm

Convert 100% of electricity used by its group to
renewable energy by 2023
Achieve Net Zero in its group by 2030*3

Converted 62.4% of energy
used by its group to renewableenergy (fiscal 2023)
100% of electricity used byits group was converted torenewable energy (fiscal 2022)

contribute to the well-being of people

Greenhouse gas reduction plan to achieve the Group target*1

through the superstructure of the ecosystem(t-CO2)600,000

with entrepreneurs who possess new

591,508534,246*4

Metrics and targets

technologies and business models. In a world

Seeking to further reduce greenhouse gas

increasingly beset by natural disasters andemissions from our business activities, SBG

other climate risks, we can meet the demand

set a Group target to “Achieve Carbon

for climate action and fulfill our corporate

Neutrality by fiscal 2030”*1 in June 2022. To

philosophy by proactively investing inachieve the target, the entire Group isbusinesses that offer the innovative climate

working on switching to electricity derived

solutions the world needs.

from renewable energy sources, using
energy-efficient measures, and othermeasures.

(As of July 2024)

530,255

516,062492,019

466,930

442,828400,000

200,000

0
0

FY2022

FY2023

FY2024FY2025

FY2026FY2027

FY2028FY2030(base year)(result)(plan)(plan)(plan)(plan)(plan)(target)*1 Applies to greenhouse gas emissions (Scope 1 and 2) from the business activities of SBG and its major subsidiaries (in principle,“Principal Subsidiaries” in the Annual Securities Report, but there are some exceptions for reasons such as regulations)*2 Applies to greenhouse gas emissions (Scope 1 and 2)*3 Applies to greenhouse gas emissions (Scope 1, 2, and 3)*4 Some Group companies are being audited as of the date of publication of this Annual Report.

SoftBank Group Report 2024

39

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Environment

Promoting and expanding the use of renewable energy
U.S. solar power project

SB Energy Global Holdings

To promote renewable energy, SB Energy Global Holdings and its subsidiaries operate a power
generation business that boasts one of the largest solar power businesses in the U.S. The
business has six solar farms,* which collectively generate 1,430 MW.* SB Energy Global
55Holdings is currently constructing three additional solar farms in the U.S., which will collectively
generate 2,130 MW.*5

AMEA PowerAMEA Power is an SBG portfolio company that develops
and operates renewable energy projects in Africa, theMiddle East, and Asia. Its projects contribute to thedecarbonization of these regions and driving socioeconomic
development. Founded in 2016, AMEA Power is one of
the fastest growing renewable energy companies in these*5 Generation capacity in AC, as of March 2024

Providing electricity services that contribute to
CO2 reduction

Renewable energy investments in Africa,
the Middle East, and Asia

regions. AMEA Power has more than 1,600 MW of clean
energy projects in operation and under/near
SB Power

SB Power is an electricity retailer that runs Shizen Denki, a service that discharges net-100%
renewable energy*6 to households. In fiscal 2023, the service contributed to reducing carbon
emissions by 39,000 tons.*7
Households that subscribe to SB Power’s SoftBank Denki service get free access to the Eco
Denki App. They can use the app to monitor their past electricity bills and forecast their electricity

construction.*9 In addition, AMEA Power has a clean energy pipeline of more than 6 GW
across 20 countries.*9 AMEA Power is also developing green hydrogen projects in Africa,
leveraging its expertise in the development of renewable energy projects. In November 2022,
AMEA Power signed a Framework Agreement with the Egyptian government to develop a
1-GW green hydrogen project. Through its activities and project development, AMEA Poweris actively supporting the clean energy transition of the countries.
*9 As of December 2023

bill for the month. They can also easily take advantage of the household energy-saving service
where they can earn PayPay Points based on the amount of electricity they save at specified times.
Through this service, SB Power supports users to reduce their electricity usage. In fiscal 2023, theservice reduced household energy consumption by 14.12 million kWh, thereby cutting carbon
emissions by 7,104 tons. Currently, more than half ofDeveloping energy-efficient technology
Semiconductor architecture that improves energy
efficiency

SoftBank Denki subscribers use this service.*8*6 By combining electricity supplied to customers with Non-fossil Fuel Energy
Certificates that have a renewable energy designation, the service can supply
electricity with a net-100% renewable energy ratio and net-zero CO2 emissions.
*7 This figure is calculated by multiplying the amount of electricity used by Shizen
Denki customers by the national average CO2 emission factor and adding theamount of J-credits retired through support for forest conservation organizations.
*8 As of the end of April 2024

Arm

With accelerated growth in shipments of Arm-based chips, Arm architecture is found in anever-greater range of applications, from smartphones and home appliances to vehicles andservers. Arm recognizes its responsibility to develop energy-efficient designs and believes that it
could be one of the solutions for helping to cut global energy consumption. Arm has developed
Eco Denki App screenshots

numerous technologies that combine exceptional processing with energy efficiency. One
example is Arm Ethos-U55, which provides up to 90% energy reduction for machine learning
workloads on IoT devices compared to its predecessor. Another is Arm Cortex-A715, which
delivers 20% power efficiency improvements to consumer markets compared to its predecessor.

SoftBank Group Report 2024

40

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Environment

Promoting decarbonization through initiatives
Participation in the One Planet Sovereign WealthFund (OPSWF) Network

Conserving natural capital
SBG, SBIA

SBG and SBIA participate in the One Planet Sovereign WealthConserving natural capital is an increasingly urgent task. The Group therefore makes sustained
efforts to reduce water consumption and other environmental impacts in accordance with its
Environmental Policy.

Fund (OPSWF) Network, which was established as a Working
Group in July 2018. That same year, the OPSWF’s founding

Addressing water challenges

members developed the OPSWF Framework to advance theintegration of climate change risks and opportunities into large
and diversified asset pools. The Abu Dhabi Investment

Water treatment technologies that safeguard water
infrastructure in times of disaster

Authority, the Kuwait Investment Authority, the New Zealand

In May 2021, SoftBank entered a capital and business tie-up

Superannuation Fund, the Public Investment Fund and the
Qatar Investment Authority currently lead the OPSWF’s Steering Group. In July 2019, the One
Planet Asset Manager (OPAM) Initiative was launched to allow for asset managers to support
the OPSWF Framework. Similarly, in July 2020, the One Planet Private Equity Funds (OPPEF)
Initiative was founded by Ardian, The Carlyle Group, Global Infrastructure Partners, Macquarie
Asset Management, and SBIA.
SBIA and the OPPEF Group, now comprising 11 members, actively engage in the OPSWF's
programs and discussions, including the CEO Summits and Peer Exchanges.

SoftBank

with WOTA, which owns proprietary technology forautonomous water treatment. The purpose of this partnershipis to develop a decentralized system of water circulation, onethat is independent of water infrastructure. This system will
enable water reuse and serve as sustainable water infrastructure. It will also safeguard water
access in evacuation centers during a disaster, contributing to a more sanitary environment.
WOTA has developed the WOTA BOX, a portable system for water reuse. Capable ofreclaiming 98% of wastewater for reuse, the WOTA BOX provides a source of water in areas
with no water supply. It can also be combined with WOTA’s other expansion units such as tents

Establishment and operation of the Renewable Energy
Council and the GDC Renewable Energy Council

SBG

to provide up to a hundred showers with just 100 liters of water, which is typically only enoughfor two showers. The system is simple and quick to set up as long as you can connect it to a

Together with local governments, SBG established the Renewable Energy Council and thepower supply. As such, it can serve as a shower unit in evacuation centers when the water

Government-Designated Cities Renewable Energy Council in 2011. Led by 34 prefectures

supply is cut off due to a disaster.

throughout Japan and the local governments of 20 designated cities, the two Councils
share information to promote and expand the use of renewable energy and make policy
recommendations to the Japanese government. As their secretariat, SBG works with affiliatedlocal governments to drive the net-zero transition in Japan.

Promotion of a circular economy
E-commerce services that contribute to a circular
economyLY Corporation

To learn more about the Renewable Energy Council, visit the Council’s website (Japanese language only).
To learn more about the Government-Designated Cities Renewable Energy Council, visit the Council’s website (Japanese language only).

Yahoo! Auctions
Since 1999, Yahoo! Auctions has provided one of Japan’s largest online auction and flea
market services. It has played a part in building a circular economy by providing a way forusers to sell the things they no longer need to people who do need them.
Yahoo! Flea Market
Yahoo! Flea Market is a dedicated online flea market app, which provides a simple way
for users to trade goods for a fixed price. We believe that this app, together with Yahoo!
Auctions, can lead to further growth of a sustainable secondhand market.

SoftBank Group Report 2024

41

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Social

How We Serve People and Society as a Leader of
the Information Revolution
We strive to create a diverse, inclusive workforce and a positive, respectful workplace.
As a leader of the Information Revolution, we channel the various strengths of our Group companies into addressing the social challenges of this age of information and globalization.

Initiatives related to humancapitalThe Group regards human resources as asource of value creation and important
stakeholders for supporting its sustainablegrowth. Accordingly, we believe thatcreating an internal environment in which
employees can challenge themselves andplay an active role while making the most of
their individuality and abilities will increase
corporate value.

Human resource strategy
SBG’s human resource strategy is to attract
autonomous and professional humanresources and support their growth andadvancement, and we are making ongoing
efforts to achieve these goals. For specificinitiatives, see “Diverse human capitalmanagement” and thereafter.
The human resource strategies ofsubsidiaries and Group companies are
determined by each company, based on the
Cluster of No. 1 Strategy of growing together
in a symbiotic ecosystem where decisions
made by each company are respected.

SoftBank Group Report 2024

Diverse human capital management
Professional recruitment emphasizingcore competencies
SBG hires professionals based on three corecompetencies: professionalism, smart, andrelation. We work to attract excellent anddiverse human resources under a basic policyof assigning the most suitable person to eachposition, regardless of age, gender,
nationality, or disability.
Three core competencies we seek in our
employees
Professionalism
High level of expertise in a relevant fieldnationality, or disability, thereby creating aworkplace rich in diversity where everyone
can play an active role.
As of March 31, 2024, 46.2% of all
employees and 25.0% of managers were
women. Each of them is engaged in theirprofession by making the best use of theiradvanced expertise. We will continue
promoting the advancement of women. In
March 2024, we earned “Eruboshi” Level 3(highest grade) certification under the Act on
the Promotion of Women’s Participation andAdvancement in the Workplace.
Human resources data by gender

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

Relation
Communication skills required to engage in business withleading companies in the world

As of March 31, 2024

Men

Women

Ratio of employees

53.8%

46.2%

Average age (years)

42.7

40.1

Average length of
employment (years)

10.4

10.3

Ratio of managers

75.0%

25.0%

Diversity and inclusion
SBG is committed to assignments that allow
employees, who are the driving force behind
corporate growth, to make the most of theirindividuality and abilities. We promote thehiring of human resources and appointmentof managers regardless of age, gender,

As of March 31, 2024, 2.8% of ouremployees were people with disabilities,
compared to the legally mandated ratio of
2.3%. We are continuing our hiring activities
with the aim of further improving the ratioof employees with disabilities.

Evaluation and compensation
SBG respects employees who actively take onchallenges. To properly reward employees fortheir achievements, we conduct personnel
evaluations and reflect the results of thoseevaluations in employees’ salaries and bonuses
under the principle of reward and punishment.
We also encourage employees to workwith a sense of ownership. Accordingly, ourhuman resource policy emphasizes
contribution to enhancement of corporate
value and includes providing stock-based
compensation based on personnel
evaluations.
In fiscal 2023, the indexed compensationlevels for regular employees by gender wereas follows. Women in managerial positions
received approximately 68% of thecompensation that their male counterparts
received. Women in non-managerial
positions received approximately 85%, andoverall, women received approximately 52%of the compensation that men received.

Human resource development forautonomous and continuous growth
Career development
SBG emphasizes the importance of selfdriven career development. By providing
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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Social
opportunities for individual awarenessthrough ongoing one-on-one meetings withline managers and multifaceted 360-degree
feedback from peers, we encourage
employees to grow through self-review andself-reflection.
Education and training
SBG provides an environment allowing
individual employees to voluntarily acquire
the knowledge and skills necessary for theirwork. For example, we offer training
programs, such as English conversation
classes, that can be taken freely at any time,and SoftBank University, which operates
within the Group. We have also allocated atalent development budget to eachdepartment so employees can take external
training courses.
We also provide support for theadvancement of professional personnel, suchas lawyers, patent attorneys, Certified Public
Accountants, and certified tax accountants,
by covering expenses related to theregistration and maintenance of various
professional qualifications required for job
execution. In fiscal 2023, we provided suchsupport to approximately 12% of ouremployees.

Group human resource development
systemThe Group offers a wide variety ofopportunities for employees to play an activerole within our organization. These include
SoftBank Group Report 2024

the Free Agent System, which allows
employees to voluntarily arrange personnel
transfers; SoftBank Academia, designed to
discover and develop the next generation ofGroup management talent; and SoftBank
InnoVenture, a program to train internal
entrepreneurs to create a strategic assemblyof synergistic group companies.
Dual employment
SBG also allows employees to engage in dual
employment (side jobs) as an opportunity
for personal growth through diverse
experiences.

Work-style reform
Improving workplace environments
SBG respects and supports the efforts of
employees to find a good work-life balance.
Therefore, we introduced a “super-flex timesystem” with no core hours and allow
working from home to provide environments
where employees can work regardless oftime and place. This allows employees tochoose their optimal work styles andmaximize their individual performances.
Childcare support
It is extremely important to provide working
parents with opportunities to be involved intheir children’s development, and we believe
proactive efforts must be made to foster thedevelopment of society. Among SBG’s maleregular employees whose spouses gave birth,around 117% took leave of absence forchildcare in fiscal 2023, which is consistent
with the percentage of female regular
employees who took leave of absence forchildcare.

Our efforts to support employees’ worklife balance have achieved some success, andwe aim to make further improvements inchildcare support. To this end, we are taking
measures to alleviate income-related
concerns, such as subsidizing childcare andother expenses through Children andFamilies Agency (previously Cabinet Office)babysitter coupons and letting employees
accumulate and carry over unused annual
leave for pre-natal and post-natal leave,
leave of absence for childcare, and leave ofabsence for childcare at birth. To help
employees who have taken such leave toreturn to work as soon as possible, we have
implemented shared use of company-led
nursery schools. Alongside this, we provide
opportunities for employees with childcarecommitments to engage and interact with
one another.
Well-being
As a pure holding company, SBG takes
various initiatives to manage, maintain, andpromote the health of its employees, who
represent its greatest asset. In addition toregular medical examinations, in fiscal 2023
we introduced a system that allows
employees to undergo optional medical
examinations tailored to age group at theCompany’s expense. About 38% of
employees have used the system.
Meanwhile, we continue encouraging
employees to take annual leave. In fiscal
2023, the annual leave utilization rate wasapproximately 64% (14.6 days). For fiscal
2024 and beyond, we will set targets for ahigher utilization rate in our “generalemployer action plan.” In April 2024, westarted providing leave for women’s healthconditions and leave for infertility treatment
or menopausal conditions regardless ofgender.
Employee engagement
The Group conducts an annual satisfaction
survey of all employees, and 32 domestic
Group companies, including SBG,
participated in the survey in fiscal 2023. Thissurvey was developed to reflect thecharacteristics of the Group. Accordingly,
responses regarding satisfaction with theorganization (job, workplace, and supervisor)
and the company each respondent belongs
to are scored by item to identify issues at an
early stage. Continuous monitoring of theseresults helps us build a strong organizationand increase employee motivation.
A total of 86% of SBG employees
responded to the survey in fiscal 2023 andindicated a continued high level ofsatisfaction. We will continue actively working
to improve employee engagement to realize
more comfortable work environments.

Respect for human rights
SBG has established the Human Rights Policy
and has programs in place to instill humanrights awareness throughout ourorganization, from officers to employees.
Our HR, compliance, risk management, andsustainability teams, along with otherspecialized teams, manage human rights
risks relevant to the Group.
See the full article of the Policy in "Social Initiatives" on
our website.

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Social

Addressing social issues

Smartphone classes for elderly people

SBG has established the sustainability vision: Help shape the next 300 years for our future

At SoftBank shops, SoftBank-certiﬁed expert Smartphone

generations and the planet. Under this vision, SBG and its Group companies engage in social-

Advisors ®*1 help customers find the best price plan andimpact initiatives, drawing on the Group’s strengths.

device, handle the initial setup for the device, and provide

SoftBank

repair services. In SoftBank’s smartphone classes, which are

Digital inclusion

open to all, Smartphone Advisors give attendees an easy-to-

Guided by our corporate philosophy, Information Revolution—Happiness for everyone, we arefollow tutorial on how convenient and fun smartphones cancommitted to leading an Information Revolution that benefits all humankind. Technologicalbe. SoftBank has also partnered with Tokyo’s Minato Ward

progress has benefitted many people, but the benefits are unevenly distributed and a digital

to offer elderly residents free smartphone rentals and classes on how to use them. Since 2022,

divide has emerged. We have identified digital inclusion as one of our material issues and will

SoftBank, in partnership with MONET Technologies, has worked with local governments to run

contribute to the realization of a world where everyone can enjoy the benefits of thethe Smartphone All-Around Support Vehicle, a van equipped to provide mobile smartphone

Information Revolution.

classes. The vehicle is equipped with monitors and tablets through which attendees canGroup companies’ initiatives

rural communities and other areas with poor access to public transport.

The Company’s efforts to close the digital divide target the causal problems, including lack of*1 Support specialist store staff certiﬁed by SoftBank who conduct smartphone classes and provide guidance on using smartphones.
Smartphone Advisor ® is a registered trademark of SoftBank.

communicate with Smartphone Advisors. With this equipment, the initiative reaches remote

access to the Internet and other information sources and lack of knowledge about information
technology. To address these problems, the Company has provided ICT-powered educational
opportunities, smartphone classes for elderly people and other groups, and educational
programs for children designed to foster digital literacy and ethical digital citizenship.

Equipping the next generation with digital literacy

LY Corporation

To prepare the next generation for the world of tomorrow, it
is essential to provide children with digital literacy education

Closing the digital divideArmand safe access to the Internet. With communication tools
becoming increasingly diverse, children are increasingly

Arm’s commitment to Closing the Digital Divide involves working with private and public sector

exposed to online dangers. Against this backdrop, LY

partners on social impact initiatives that leverage technology to address inequalities and provide

Corporation offers education for ethical digital citizenship sotechnology access to underserved populations. One example of this is its partnership with thethat people can enjoy safe and secure online communication.

UNHCR, the UN Refugee Agency. Arm is providing technical and capacity-building support to

Responding to requests from schools and local governments in Japan, official instructors fromthe UNHCR’s Innovation Service, which works to ensure the agency’s humanitarian response is

the LINE MIRAI Foundation visit schools to deliver free online classes. The official instructors

fit for the future and covers a range of areas, including data, digital inclusion, refugee-led

teach children about the nature of online communication, the risks to be aware of, and theinnovation, and environmental resilience. Additionally, Arm Education aims to help close

information literacy necessary for participation in the information society. They also give parents

education and skills gaps in computer engineering and STEM. As part of the initiative, Armtips on how to protect their children from online dangers and offer teachers insights aboutprovides teaching and learning resources, IP tools, and other support to universities, and works

children’s online behavior and how to foster ethical digital citizenship. LY Corporation also

closely with academic and industry partners on research collaborations. Since 2013, Arm has

provides schools with a free textbook, GIGA Workbook, covering topics such as ethical digital

supported and collaborated with over 2,500 universities worldwide and enabled more thancitizenship and information literacy. GIGA Workbook has been introduced as an official

10,000 Arm-based classes.

textbook by many local governments in Japan.

For further details on Arm Education, see Arm’s corporate website.

SoftBank Group Report 2024

44

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Social
a membership that includes representatives

Responsible AI

from related divisions (e.g., CEO Office,Group companies’ initiatives
Objective and effective AI governance

SoftBank

The Group’s mission is to stay at theLegal, Information System) and from major

forefront of the Information Revolution andGroup companies (e.g., Arm, SoftBank, LY

SoftBank has a dedicated team leading efforts to build an effective system of AI governanceensure that the revolution builds a more

Corporation, SBIA), the working groupto ensure that the company’s AI-driven services are safe and secure for customers to use. For

connected empowered, and joyful world. At

convenes regularly to share information

example, in July 2022, the company established the SoftBank AI Ethics Policy.*2 To ensure thethe core of the Information Revolution today

about best practices and discuss an AI

effectiveness of the governance structure, the company has also set specific rules and checklists

lies AI. Aspiring to become a world leader

governance model for SBG to adopt. We

for AI-related planning, application, development, and outsourcing. SoftBank also takes activein the use of AI, we are committed towill continue efforts to build a governancesteps to raise awareness of AI governance in the workplace. It provides a basic training course

promoting responsible AI so that AI benefits

structure that balances proactive and secure

for all employees along with practical training for employees involved in AI-related planning,

everyone.

approaches to manage the breakneck

development, and application. Employees can also access information about AI governanceadvancements in AI.

initiatives on the company’s web portal. During March 2024, which was the company’s “AI

Establishing AI governanceFor further details on our material issues, see page 32.

SBG’s approach to AI governance
SBG has identified “Responsible AI” as thegovernance strengthening month,” the company issued an e-mail newsletter with information
about AI governance and organized a lecture delivered by an external expert. In April 2024, theProactive and secure use of AI

company established the AI Ethics Committee, a panel that outside experts join, which discusses

most important material issue relating to

Aspiring to become a world leader in the use

and advises the company on matters related to AI ethics. SoftBank will remain committed tosustainability that should be addressed withof AI, we focus on both proactive and securedelivering objective and effective AI governance, incorporating the advice of the AI Ethics

priority and is aiming to establish an

aspects in our approach to AI governance. We

Committee and user feedback.

appropriate group AI governance structure.

established guidelines on generative AI in April*2 As of April 2024, the policy applies to 72 group companies of SoftBank.

As part of this effort, we have established2023, and in April 2024 we added Action

the AI Governance Working Group under theStatements on responsible AI to the SoftBank

Group Risk and Compliance Committee

Group Code of Conduct, that apply to officers

LY Corporation’s precursor, Z Holdings, established an(GRCC) to discuss an approach to AI

and employees of the Company to promote

expert panel on AI ethics, and this panel continues togovernance. Chaired by the CSusO and withthe active but responsible use of AI. One way

function in LY Corporation. In 2022, the Basic Policy

in which we have promoted the active use of

on AI Ethics was established to declare its approach

AI across the Group is to organize a contest in

to AI governance. When the company launched anwhich employees pitch ideas for using

internal chat-based generative AI tool in July 2023,

ChatGPT and other generative AI technologies.

employees were briefed on the proper use of

AI Governance Working Group structure
Board of Directors of SBG

Initiatives to encourage use of generative AI

LY Corporation

Educational manga about AI on Yahoo! JAPAN Kids

generative AI and access was granted upon passing an
Supervise

Report/submit

e-learning test. LY Corporation has also focused on training. As well as providing regularGroup Risk and Compliance Committee(GRCC)
Direct/advise/guidetraining to its engineers, it provides training courses to all employees, including training on AI
governance and training on effective prompt engineering.*3 To help foster AI literacy among

Report/submit

children, the company has published an educational manga about AI on its web portal Yahoo!

AI Governance Working GroupJAPAN Kids. In February 2024, the company held a press briefing about its internal and public

Sub working group(theme-specific)

SoftBank Group Report 2024

Sub working group(theme-specific)

generative AI applications to generate media attention for these initiatives.
ChatGPT usage contest awards ceremony*3 Process of designing a prompt (a question or instruction) that can be acted upon by an AI model.

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance

Effective Governance—the Key to Realizing Our Vision
See “Corporate Governance” on our website for the latest
information.

The following information is based on the
Corporate Governance Report filed with theTokyo Stock Exchange on June 26, 2024.

Basic views

SBG’s path to strengthening governance1994 Registered as an OTC stock with the Japan Securities Dealers Association

2015 Japan’s Corporate Governance Code entered into force
2019 Established the Group Risk and Compliance Committee
2020 Formulated the Portfolio Company Governance and Investment Guidelines
Policy; increased the number of External Board Directors; appointed thefirst female Board Director; established the Nominating & Compensation
Committee and the Sustainability Committee; appointed a CSusO and CRO*1;
revised the Board of Directors structure (separation of the management
decision-making function from the business execution function)
2021 Added environmental and social items to the above policy; achieved a
55.6% external ratio of Board Directors and a 100% external ratio of Audit& Supervisory Board members
2022 Transitioned from the First Section of the Tokyo Stock Exchange (TSE) to thePrime Market of the TSE

1995 Appointed the first foreign national Board Director
1998 Listed on the First Section of the Tokyo Stock Exchange
1999 Invited a Board Director from outside the company (equivalent to a
current External Board Director); transitioned to a pure holding company
2002 External board directors system introduced in the Commercial Code(currently the Companies Act) of Japan
Started livestreaming of earnings results briefings

The Company is guided by a fundamental

2003 Started livestreaming of the Annual General Meeting of Shareholders

concept of “free, fair, and innovative” and a

2006 Companies Act of Japan enacted

corporate philosophy of Information2012 Introduced a Corporate Officer system

Revolution—Happiness for everyone. We aim
to be a provider of essential technologies
and services to people around the world*1 Chief Risk Officer

Corporate governance system

Internal Board Director

General Meeting of Shareholders

while maximizing our enterprise value. SBG
recognizes that it is vital to maintain effective
corporate governance to realize this vision.
We continue to strengthen governance by
establishing a charter and regulations: the
SoftBank Group Charter to share the Group’s
fundamental concept and corporate
philosophy, the Group Company
Management Regulations of the SoftBank

Nominating & Compensation Committee
Ratio of External Board Directors
2/3

Separating
management
decision-making
from businessexecution

Elect /
dismiss members of Audit& Supervisory Board

Elect /
dismiss Board Directors

Recommend

Directors and employees.

Audit & Supervisory
Board

Brief

Independent
AuditorCooperate
ReportReportReportReportElect members /delegate partial
authority

Elect chairperson /delegate partial
authority

Investment
Committee*5

Supervise

Brand
Committee

Group Risk andCompliance
Committee

Supervise

Sustainability
Committee

Corporate Officers*2 Special Directors are put in place in accordance with Paragraph 1, Article 373 of the Companies Act.
*3 Of the five External Board Directors, four are designated as Independent Officers.
SoftBank Group Report 2024

Audit

Ratio of External Board Directors*3
5/9

and framework for Group companies, andfollowed by the Company and its Board

Elect /
dismiss
Independent
AuditorReportBoard of Directors*2

Group to set forth the management policy
the SoftBank Group Code of Conduct to beExternal Board Director / External Audit & Supervisory Board member

Call /
report on
execution
situation

Supervise /elect /
dismiss

Representative
Director,
Corporate Officer,
Chairman & CEO

Ratio of External
Audit & Supervisory
Board members*4
4/4

Brief
ReportReportCooperate

Brief /
cooperate

Audit &
Supervisory
Board OfficeInternal Audit
Office*4 Of the four External Audit & Supervisory Board members, three are designated as Independent Officers.
*5 Supervisory Committee is separately put in place to supervise matters such as investments and loans of certain subsidiaries.
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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: GovernanceApproach to and policy concerning group management

Status of Board of Directors

Based on its unique organizational strategy, the Cluster of No. 1 Strategy, SBG is working to

SBG’s Board of Directors had a total of ninebuild a corporate group that operates a diverse range of businesses in the information andmeetings in fiscal 2022 and seven meetingstechnology sectors and increase its Net Asset Value (NAV). This is enabled by direct investments

in fiscal 2023 (both totals exclude meetings(including investments made through its subsidiaries) such as in SoftBank, Arm, and otherconducted by written resolution). During

Group companies, as well as investments in investment funds such as SVF1, SVF2, and LatAm

these meetings, the members mainly

Funds. In this process, each investee company will seek self-sustained growth. At the same time,

discussed the following topics.

Number of Board resolutions / reports
16
25

20

Fiscal 2023 36

6
9

SBG, as a strategic investment holding company, will help each investee company improve its

17(outside)Fiscal 2022
(inside)corporate value by utilizing the Group’s network of companies while promoting collaboration

16

among investee companies.

19

17

15

Furthermore, the Company will confirm, or make reasonable efforts to ensure, that eachCategory

investee company is operating under environmental, social, and corporate governancestandards that are substantially equivalent to those set forth in the Policy on Governance andInvestment Guidelines for Portfolio Companies of SBG.

Governance(including the managementof subsidiaries)

Compliance (oversight over conflict-of-interest transactions, fiscal year compliancereports), risk management, internal control and internal audits, approval oftransactions by subsidiaries, etc.

Internal management

Board of Directors

Key topics
Compensation of Board Director candidates and Board Directors, reports from eachcommittee, evaluation of the effectiveness of the Board of Directors, opinions andreports from the Audit & Supervisory Board Members Audit Report

Business reports

Reporting on the status of the portfolio and the status of individual business segments

SBG’s Board of Directors consists of members with a wealth of knowledge and experience inFinanceFund procurement, shareholder returns

business management and a global perspective, in consideration of their nationality, ethnicity,

Investment

Consideration of investment projects (e.g., Arm's IPO)

gender, or age. The maximum number of Board Directors is set at 11 under the Articles of

OthersGeneral Meeting of Shareholders, information disclosure, sustainability

Incorporation. As of June 21, 2024, the Board of Directors consisted of nine members (five ofwhom are External Board Directors) and included two foreign nationals and one female.
Agenda items for discussion at the Board of Directors meetings are set forth in the Board of

Summary of results of Board of Directors evaluation

Directors Regulations. The Board discusses statutory matters, as well as critical matters related to

From December 2023 to April 2024, SBG evaluated the overall effectiveness of its Board ofbusiness management, such as investments, loans, and borrowings that exceed a certain

Directors in the following manner.

amount. In addition, Special Directors are put in place in accordance with Paragraph 1, Article
373 of the Companies Act, and matters related to disposal and acceptance of important assets
and borrowing in a significant amount are resolved by the Board of Special Directors meetingfor the purpose of prompt decision-making.

SoftBank Group Report 2024

Subjects

The Representative Director, Corporate Officer, Chairman & CEO, all Board Directors, and all Audit& Supervisory Board members

Evaluation
methodQuestionnaire surveys and interviews were conducted with the target officers by a third-party
institution evaluator about topics that included the composition and operation of the Board and its
support systems.

Evaluation
results

According to the officers, board effectiveness is underpinned by a positive board culture. This
culture includes the trust and the check-and-balance relationship between Representative Director,
Corporate Officer, Chairman & CEO, and the Board of Directors. It also includes active discussions
held by the diverse board. The officers underscored the importance of preserving this board culture.
As for priority issues going forward, it was confirmed that the Board of Directors should contributeto bringing the vision, Information Revolution–Happiness for everyone to life by deepening theinsight of the Board on the AGI revolution and conducting repeated discussions on building an
ecosystem surrounding Arm.
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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance

Skill Matrix of Board Directors and Audit &Supervisory Board members
SBG believes it is important for the Board Directors and Audit & Supervisory Board members tohave a wide range of viewpoints and experience, as well as a high level of expertise, to ensure
diversity and active discussions and decision-making of the Board of Directors. As of June 21,2024, the Skill Matrix (skill set expected by SBG) of the Board Directors and Audit & Supervisory
Board members was as follows.

Board Directors

As of June 21, 2024 (numbers of shares owned are as of March 31, 2024)

Nominating & Compensation
Committee member

Sep 1981
Jan 1996
Oct 2005
Apr 2006
Jun 2015
Sep 2016
Jun 2017
Nov 2020
		
Apr 2021
Aug 2023

Representative Director,
Corporate Officer,
Chairman & CEO

Masayoshi Son
Years in office:42 years 9 months
Number of shares owned in SBG:

Founded SOFTBANK Corp. Japan (currently SoftBank Group Corp.), Chairman & CEO
President & CEO, Yahoo Japan Corporation (currently LY 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 LY Corporation)
Chairman and Executive Director, ARM Holdings plc
Chairman & CEO, SoftBank Group Corp.
Representative Director, Corporate Officer, Chairman & CEO,SoftBank Group Corp. (to present)
Board Director, Founder, SoftBank Corp. (to present)
Chairman and Director, Arm Holdings plc (to present)

426,661 thousand shares
Areas of expertise particularly expected by SBG (up to three areas)
Name
Board
Director

Masayoshi Son

Corporate Banking /management
M&A

Finance /Law /Academic
Technology
Accounting Governancebackground

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

Yoshimitsu Goto

Yoshimitsu Goto
Ken Miyauchi
Rene Haas

Years in office:Masami Iijima

Number of shares owned in SBG:

Yutaka Matsuo
Keiko Erikawa

4 years*6
379 thousand shares
Board Director

Ken Miyauchi

Kenneth A. Siegel
David Chao
Audit &
Supervisory
Board
member

Maurice Atsushi Toyama
Yuji Nakata

Years in office:36 years 4 months
Number of shares owned in SBG:

Soichiro Uno

574 thousand shares

Keiichi Otsuka

Board Director

Rene Haas

Years in office:1 yearNumber of shares owned in SBG:-

SoftBank Group Report 2024

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

Joined The Yasuda Trust and Banking Co., Ltd. (currently Mizuho Trust & Banking Co., Ltd.)
Joined SoftBank Corp. (currently SoftBank Group Corp.)
Head of Finance Department, SoftBank Corp. (currently SoftBank Group Corp.)
Director, Vodafone K.K. (currently SoftBank Corp.)
Corporate Officer, Senior Vice President, SoftBank Corp. (currently SoftBank Group Corp.)
President & CEO and acting owner, Fukuoka SoftBank HAWKS Corp. (to present)
Board Director, SoftBank Corp. (currently SoftBank Group Corp.)
Corporate Officer, Senior Vice President, SoftBank Corp. (currently SoftBank Group Corp.)
Corporate Officer, Senior Vice President, SoftBank Group Corp.
Corporate Officer, Senior Vice President & CFO & CISO, SoftBank Group Corp.
Board Director, Senior Vice President, CFO, CISO & CSusO, SoftBank Group Corp.
Board Director, Corporate Officer, Senior Vice President, CFO, CISO & CSusO,
SoftBank Group Corp.
Jun 2022 Board Director, Corporate Officer, Senior Vice President, CFO & CISO,		SoftBank Group Corp. (to present)*CISO: Chief Information Security Officer *CSusO: Chief Sustainability Officer

Feb 1977
Oct 1984
Feb 1988
Apr 2006
Jun 2007Jun 2012
Jun 2013
Apr 2015
Apr 2018
Jun 2018
Apr 2021
Apr 2023
Apr 2024
Jun 2024

Joined Japan Management Association
Joined SOFTBANK Corp. Japan (currently SoftBank Group Corp.)
Board Director, SOFTBANK Corp. Japan (currently SoftBank Group Corp.)
Executive Vice President, Director & COO, Vodafone K.K. (currently SoftBank Corp.)
Representative Director & COO, SoftBank Mobile Corp. (currently SoftBank Corp.)
Director, Yahoo Japan Corporation (currently LY Corporation)
Representative Board Director, Senior Executive Vice President, SoftBank Corp.
(currently SoftBank Group Corp.)
President & CEO, SoftBank Mobile Corp. (currently SoftBank Corp.)
Board Director, SoftBank Group Corp. (to present)
President & CEO, SoftBank Corp.
Representative Director & Chairman, SoftBank Corp.
Director & Chairman, SoftBank Corp.
Director & Special Advisor, SoftBank Corp.
Special Advisor, SoftBank Corp. (to present)

Jan 1999 Vice President of Sales, Tensilica
Aug 2004 Vice President of Sales and Marketing, Scintera Networks
Oct 2006 Vice President & General Manager, Computing Products Business Unit,
NVIDIA Corporation
Oct 2013 Vice President of Strategic Alliances, ARM Holdings plc
Jan 2015 Executive Vice President & Chief Commercial Officer, ARM Holdings plc
Jan 2017 President of Arm’s IP Product Groups (IPG), ARM Holdings plc
Feb 2022 CEO, Arm Limited (to present)
Jun 2023 Board Director, SoftBank Group Corp. (to present)
Aug 2023 Director, Arm Holdings plc (to present)

Note: “Years in office” refers to the number of years until the conclusion of the General Meeting of Shareholders on June 21, 2024.
*6 Mr. Yoshimitsu Goto has been a Board Director for four years since June 2020 but has served as Board Director for a total of five years,
including one year as Board Director from June 2014.

48

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance
External Board Directors

Independence standards and qualifications forExternal Board Directors
SBG elects Independent External Board Directors in accordance with the independence criteria

Independent
Nominating & Compensation
Committee member

set by the Tokyo Stock Exchange. The Board of Directors elects Independent External Board

External Board Director,
Independent Officer

Director candidates who can contribute to increasing enterprise value through their

Masami Iijima

qualifications, ability, and deep knowledge in their fields of expertise. SBG also elects candidates
for their ability to participate actively in constructive discussions and express their opinions
frankly. SBG ensures adequate independence of each of the External Board Directors, who bringa wealth of knowledge and experience to the Board related to business management and othermatters. Each of them actively participates in discussions at the Board meetings, and SBG makes
management judgments and decisions based on these discussions.

Years in office:6 years
Number of shares owned in SBG:

1 thousand shares
Independent
Nominating & Compensation
Committee member
External Board Director,
Independent Officer

Major activities

Apr 2021 Director, MITSUI & CO., LTD.
Jun 2021 Counselor, MITSUI & CO., LTD.
(to present)
Jun 2021 Director (Audit & Supervisory
Committee member),		
Takeda Pharmaceutical Company
LimitedJun 2022 Director, Takeda Pharmaceutical
Company Limited (to present)
Jun 2023 Director, KAJIMA CORPORATION(to present)

Apr 2002
Aug 2005
Oct 2007
Apr 2019
Jun 2019

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

Jul 1978Apr 1994
Jun 2001
May 2007Jun 2013
Jun 2013
Jun 2014
		
Apr 2015
Jun 2021

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

Aug 1986
Jan 1994
Aug 1996
		
Jan 2009
Jan 2009
Jun 2021

Joined Morrison & Foerster LLP
Partner, Morrison & Foerster LLP
Managing Partner, Morrison & Foerster Tokyo Office (Morrison & Foerster Gaikokuho
Jimu Bengoshi Jimusho) (to present)
Member of Executive Committee, Morrison & Foerster LLP
Board Director, Member of Executive Committee, Morrison & Foerster LLP (to present)
Board Director, SoftBank Group Corp. (to present)

Jun 1988
Jun 1989
Aug 1993
May 1996
Jan 1997
Jun 2022

Joined Recruit Co., Ltd. (currently Recruit Holdings Co., Ltd.)
Joined Apple Computer, Inc. (currently Apple Japan, Inc.)
Joined McKinsey & Company, Inc.
Co-Founder and CTO, Japan Communications Inc.
Co-Founder and General Partner, DCM Ventures (to present)
Board Director, SoftBank Group Corp. (to present)

Yutaka Matsuo

Major activities of External Board Directors

Name

As of June 21, 2024 (numbers of shares owned are as of March 31, 2024)

Apr 1974 Joined MITSUI & CO., LTD.
Apr 2008 Executive Managing Officer, MITSUI & CO., LTD.
Jun 2008 Representative Director, Executive Managing
Officer, MITSUI & CO., LTD.
Oct 2008 Representative Director, Senior Executive
Managing Officer, MITSUI & CO., LTD.
Apr 2009 Representative Director, President and Chief
Executive Officer, MITSUI & CO., LTD.
Apr 2015 Representative Director, Chairman of the Board of
Directors, MITSUI & CO., LTD.
Jun 2016 Director, Ricoh Company, Ltd.
Jun 2018 Board Director, SoftBank Group Corp. (to present)
Jun 2019 Counselor, Bank of Japan (to present)
Jun 2019 Director, Isetan Mitsukoshi Holdings Ltd.

Attendance rate andattendance at Board of
Directors meetings forfiscal 2023

Masami Iijima

Makes remarks to supervise business judgments and decision-making based on his
extensive knowledge and broad global experience in corporate management andgovernance. Also, as Chairperson of the voluntary Nominating & Compensation
Committee, leads objective discussions from an independent standpoint and plays animportant role in consulting with the Board of Directors.

Yutaka Matsuo

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

Keiko Erikawa

Makes remarks to supervise business judgments and decision-making based on her
extensive knowledge and experience in corporate management and technology,
acquired through her career as corporate manager and finance manager of a global
digital entertainment company.

100%
7 of 7 meetings

Kenneth A. Siegel*7

Makes remarks to supervise business judgments and decision-making based on his
extensive knowledge and experience in corporate M&As and strategic alliances, acquired
through his career as an attorney at an international law firm.

100%
7 of 7 meetings

David Chao

Makes remarks to supervise business judgments and decision-making based on his
extensive knowledge and broad experience in investment, technology, and corporate
management, acquired through his long career as a manager of an investment company.

100%
7 of 7 meetings

100%
7 of 7 meetings

Years in office:5 years
Number of shares owned in SBG:

Independent
External Board Director,
Independent Officer

Keiko Erikawa
Years in office:100%
7 of 7 meetings

3 years
Number of shares owned in SBG:

303 thousand shares
External Board Director*7 Mr. Siegel concurrently holds positions with Morrison & Foerster Gaikokuho Jimu Bengoshi Jimusho and Morrison & Foerster LLP.
SBG did not submit notifications to designate him as an Independent Officer as the amount of compensation to be paid to thesefirms in the future is yet to be determined, regardless of whether there are any transactions between SBG and those firms.

Kenneth A. Siegel

Years in office:3 years
Number of shares owned in SBG:

Independent
External Board Director,
Independent Officer

David Chao
Years in office:2 years
Number of shares owned in SBG:

SoftBank Group Report 2024

Note: “Years in office” refers to the number of years until the conclusion of the General Meeting of Shareholders on June 21, 2024.

49

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance
Organizational chart

Corporate Officer system
SBG adopted a Corporate Officer system in July 2012 to further strengthen its business

As of June 21, 2024

General Meeting of Shareholders

CEO Office

execution functions. In November 2020, SBG clarified the individuals responsible for businessexecution by separating the management decision-making function from the business executionfunction.

Corporate Officers

CEO Project Office
Board of Directors
New Business Office
Representative Director,
Corporate Officer, Chairman & CEO
Masayoshi Son

As of June 21, 2024

CFO OfficeFinance Planning Department
Capital Market Department

Audit & Supervisory Board

Finance Unit
Investor Relations Department
Group Management Department

Audit & Supervisory Board members

Investment Planning Department
Representative Director,
Corporate Officer,
Chairman & CEO

Audit & Supervisory Board Office

Human Resources Department

Masayoshi Son

General Administration Department
Administration Unit
Information System Department
Sustainability Department

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

Accounting Department
Accounting Unit

*CISO: Chief Information Security Officer

Corporate Officer,
Senior Vice President,
Head of Accounting Unit

Yoshimitsu Goto

Kazuko Kimiwada

Tax Management OfficeInternal Control OfficeCompliance Department
CLO Office

Legal Unit
Legal Projects Department
Corporate Legal Department

Corporate Officer,
CLO & GCO,
Head of Legal Unit

Corporate
Communications Unit

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

Corporate Officer,
Head of CFO Office,Finance Unit

Tim Mackey

Seiichi Morooka

SoftBank Group Report 2024

Corporate Communications Office
Risk Management OfficeInternal Audit Office50

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance
Audit & Supervisory Board members

Audit & Supervisory Board members andthe Audit & Supervisory Board

Independent

The Audit & Supervisory Board members attend Board of Directors meetings, allowing them tomonitor and verify decision-making of the Board and fulfillment of the Board’s obligation tosupervise the execution of duties by each Board Director. Moreover, the Audit & Supervisory
Board members receive regular reports from Board Directors, employees, Audit & Supervisory
Board members and other personnel of major subsidiaries and conduct hearings, as necessary,

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

Maurice Atsushi
Toyamaconsists of four External Audit & Supervisory Board members (two full-time members and two-reported to part-time members. The Audit & Supervisory Board explains details of the audit planfor each fiscal year, interim audit status, and audit results to the Board of Directors.
Furthermore, the Audit & Supervisory Board determines whether or not the reappointment ofJoined Nomura Securities Co., Ltd.
Executive Managing Director, Nomura Securities Co., Ltd.
COO, Nomura Asia Holding N.V.
Executive Managing Director, Nomura Holdings, Inc.
Senior Managing Director, Nomura Securities Co., Ltd.
Executive Managing Director, Nomura Holdings, Inc.
Representative Executive Officer and Deputy President, Nomura Securities Co., Ltd.
Executive Managing Director and Chief Risk Officer, Nomura Holdings, Inc.
Senior Adviser, Nomura Institute of Capital Markets Research
Full-time Audit & Supervisory Board member, SoftBank Group Corp. (to present)

Apr 1988
		
Nov 1993
Jan 1997
Jun 2004
		Jun 2018
Jun 2019

Joined Nagashima & Ohno Law Office (currently Nagashima Ohno & Tsunematsu),
admitted to practice law in Japan
Passed the bar examination of the State of New York, U.S.
Partner, Nagashima & Ohno Law Office (currently Nagashima Ohno & Tsunematsu; to present)
Audit & Supervisory Board member, SoftBank Corp.
(currently SoftBank Group Corp.; to present)
Director (Audit & Supervisory Committee Member), Dream Incubator Inc.
Director (Audit & Supervisory Committee Member), Terumo Corporation (to present)

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

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

Number of shares owned in SBG:

part-time members) and is chaired by Maurice Atsushi Toyama, who has served as a full-time

details of various internal and external meetings attended only by full-time members are

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

Years in office:9 yearsa month, in principle. At these meetings, in addition to formulating the audit policy and plan,

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

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

to audit the execution of duties by the Board Directors of SBG. The Audit & Supervisory Board

Audit & Supervisory Board member since June 2015. The Audit & Supervisory Board meets once

As of June 21, 2024 (numbers of shares owned are as of March 31, 2024)

Sep 1977
Aug 1981
Jun 2006
Jun 2015
		

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

Yuji Nakata
Years in office:3 years
Number of shares owned in SBG:-

the Independent Auditor is appropriate, each term.
External Audit &Supervisory Board member

Soichiro Uno

Major activities of External Audit & Supervisory Board members

LawyerAttendance rate and attendance for fiscal 2023
Audit & Supervisory
Board meetings

Years in office:

20 years

Name

Major activities

Board of Directors
meetings

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

85.7%
6 of 7 meetings100%
12 of 12 meetings

Yuji Nakata

Makes remarks based on his extensive knowledge andexperience, acquired through his career as head of risk
management at a financial institution.

100%
7 of 7 meetings100%
12 of 12 meetings

External Audit &Supervisory Board member,
Independent Officer

Soichiro Uno*8

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

100%
7 of 7 meetings100%
12 of 12 meetings

Keiichi Otsuka

Keiichi Otsuka

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

100%
7 of 7 meetings100%
12 of 12 meetings

Years in office:Number of shares owned in SBG:

Independent*8 Although SBG judged that there is no potential conflict of interest between Mr. Soichiro Uno and ordinary shareholders, SBG did notdesignate him as an Independent Officer in accordance with the rules set by the firm (Nagashima Ohno & Tsunematsu) to which hebelongs.

Certified Public Accountant

3 years
Number of shares owned in SBG:

Note: “Years in office” refers to the number of years until the conclusion of the General Meeting of Shareholders on June 21, 2024.

SoftBank Group Report 2024

51

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: GovernanceIndependent Auditor
Status of audit by the Independent Auditor
SBG concluded an independent audit agreement with Deloitte Touche Tohmatsu LLC based on
the Financial Instruments and Exchange Act. The names of the Certified Public Accountants
who executed audit duties in fiscal 2023, the consecutive auditing period, the number ofassistants for the audit duties, the policy for selection of the audit corporation, and evaluationof the audit corporation by the Audit & Supervisory Board for fiscal 2023 are as follows.
Names of Certified Public Accountants who executed audit duties
Designated Limited Liability Partner and Engagement Partners: Nozomu Kunimoto, Ayato
Hirano, Yusuke Masuda
Consecutive auditing period

Compensation for audits and other duties (fiscal 2023)
Compensation for auditing Certified Public Accountants and other assistantsCompensation for audit certification duties
SBG

Certified Public Accountants: 35, Others: 52
Policy for selection of audit corporation and evaluation of audit corporation by
the Audit & Supervisory Board
The Audit & Supervisory Board sets forth criteria for appropriately selecting an Independent
Auditor and appropriately evaluating the Independent Auditor in the Audit & Supervisory Board
Members Audit Regulations. In accordance with such criteria, the Audit & Supervisory Board
takes into account the system to ensure the proper execution of duties by the Independent
Auditor, the independency required by the Independent Auditor, and its expertise, including thepossession of worldwide network resources, and determines whether the reappointment of the
Independent Auditor is appropriate each fiscal year. The Audit & Supervisory Board has
determined that reappointment was appropriate for fiscal 2023. In the event that the Audit &Supervisory Board determines that reappointment is inappropriate, it considers other candidates
for Independent Auditor in accordance with such criteria, upon taking into account factors suchas audits at other companies.
The Audit & Supervisory Board has resolved, as its decision-making policy of dismissal or not
reappointing of the Independent Auditor, that the Independent Auditor may be dismissed by
the Audit & Supervisory Board with unanimity of Audit & Supervisory Board Members when the
Independent Auditor corresponds to any of Paragraph 1, Article 340 of the Companies Act, andthat, other than those cases above, the Audit & Supervisory Board shall submit a proposal on
dismissal or not reappointing of the Independent Auditor to the Annual General Meeting of
Shareholders when it is acknowledged that the execution of appropriate audit is difficult due to theoccurrence of an event which impairs the qualification or independency of the Independent Auditor.
SoftBank Group Report 2024

(Millions of yen)

920

16

Consolidated subsidiaries

4,547

83

Total

5,467

99

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

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

18 yearsComposition of assistants who supported audit duties

Compensation for non-audit duties(Millions of yen)Compensation for audit certification duties

Compensation for non-audit duties(Millions of yen)

SBG

(Millions of yen)–0

Consolidated subsidiaries

5,510

116

Total

5,510

116

Note: The non-audit duties for SBG consist of advisory services for taxation. The non-audit duties for the consolidated subsidiaries of
SBG mainly consist of consulting services for system construction support.

Other material compensation for audit certification duties
Not applicable.
Reason(s) why the Audit & Supervisory Board gave its consent to the compensation of
the Independent Auditor, etc.
The Audit & Supervisory Board, based on the “Practical Guidelines for Cooperation withAccounting Auditors” published by the Japan Audit & Supervisory Board Members
Association, reviewed and examined the plan details of the audit conducted by the
Independent Auditor, the performance status of accounting audit duties, and the basis forcalculating compensation estimates, and from the results, has given the consent prescribed in
Paragraph 1, Article 399 of the Companies Act for the compensation paid to the Independent
Auditor.

52

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance

Cooperation between the Audit & Supervisory Board members,
the Independent Auditor, and the Internal Audit Office
The Audit & Supervisory Board members receive regular briefings from the Independent Auditor(Deloitte Touche Tohmatsu LLC) on the audit plan, quarterly reviews, audit results, and othermatters. The Audit & Supervisory Board Members and the Independent Auditor also cooperate
as necessary by exchanging information and opinions, among other measures. Furthermore, theAudit & Supervisory Board members receive regular briefings from the Internal Audit Office,which is responsible for SBG’s internal audits. The briefings include the audit plan and theresults of internal audits performed on each department of SBG and its major subsidiaries. The
Audit & Supervisory Board Members and the Internal Audit Office also cooperate as necessary
by exchanging information and opinions, among other measures.
The Independent Auditor receives briefings from the Internal Audit Office on the audit planand, when necessary, on the results of internal audits and other matters. The Internal Audit
Office receives regular briefings from the Independent Auditor regarding audit results and othermatters. Moreover, both parties cooperate with each other as necessary by exchanging
information and opinions, among other measures.

Committees that make decisions on matters delegated by
the Board of Directors
Investment Committee
The Investment Committee has the purpose of making decisions on matters for which it has beendelegated authority by the Board of Directors, to carry out corporate activities flexibly.
The Committee comprises four Board Directors or Corporate Officers elected by the Board(Masayoshi Son, Yoshimitsu Goto, Kazuko Kimiwada, and Tim Mackey). The agenda items fordiscussion in the Investment Committee are set forth in the Regulations of the Investment Committee.
Such items include investments, loans, and borrowings under a certain amount. Resolutions of theCommittee are only approved by majority agreement. If a proposal is rejected, it is brought to theBoard of Directors. All resolutions of the Committee are reported to the Board of Directors.
Brand Committee
The Brand Committee is a committee that has been delegated authority by the Board of Directors tomake decisions on and properly manage matters related to the SoftBank brand. The Committee
comprises five members including the chairman (Board Director, Corporate Officer, Senior Vice
President, CFO and CISO), who has been selected by the Board of Directors, and four members(Corporate Officer, Senior Vice President Kazuko Kimiwada, the head of CLO Office Natsuko Oga,the head of the Corporate Communications Office Takeaki Nukii, and the head of the General
Administration Department Tatsuya Iida), who have been appointed by the chairman. The Committee
resolves matters set forth in the Regulations of the Brand Committee, including the licensing of the
SoftBank brand. Resolutions of the Committee are only approved by unanimous agreement from all
members, and all decisions made by the Committee are reported to the Board of Directors.
SoftBank Group Report 2024

Voluntary committees
Nominating & Compensation Committee
The Nominating & Compensation Committee is a voluntary advisory body to the Board of
Directors deliberating on matters related to nomination and compensation, and provides advice
and support to the Board of Directors and other appropriate approval organizations. Nominating& Compensation Committee members are elected from among Board Directors, and a majority ofits members are Independent External Board Directors to ensure their independence andobjectivity. The Committee has three members: Masami Iijima (Committee Chairperson,
Independent External Board Director), Yutaka Matsuo (Independent External Board Director), andMasayoshi Son (Representative Director, Corporate Officer, Chairman & CEO). During meetings,
the members discuss the criteria for appointing and dismissing important officers and employees,
candidates for nominating, general compensation policy, individual compensation proposals, andother important matters. It also conducts discussions on successors on an ongoing basis. The
Committee holds regular meetings in April as well as special meetings when necessary. In fiscal
2023, it held two meetings, each with full attendance.
Group Risk and Compliance Committee (GRCC)
The purpose of the Group Risk and Compliance Committee (GRCC) is to supervise the risk
management and compliance program of SBG and its Group companies and discuss important
issues, promotion policies, and other matters on an ongoing basis. The Committee has threemembers, including its chairperson, Tim Mackey (Corporate Officer, Chief Legal Officer (CLO) &Group Compliance Officer [GCO]), who was appointed by the Board of Directors; Yoshimitsu Goto
(Board Director, Corporate Officer, Senior Vice President, CFO and CISO); and Kazuko Kimiwada(Corporate Officer, Senior Vice President). The GRCC deliberates on matters related to the risk
management and compliance activities of SBG and its Group companies as set forth in the GRCC
Operation Regulations. Its decisions are only approved by majority agreement. The Committee’s
agenda items and discussion results are reported to the Board of Directors on a regular basis (atleast once a year) based on the Board of Directors Regulations.
Sustainability Committee
The purpose of the Sustainability Committee is to discuss sustainability-related issues andpromotion policies of SBG and its Group companies on an ongoing basis. The Committee comprises
four members including the chairperson (the head of the Investor Relations Department and theSustainability Department, Yotaro Agari), who has been appointed as Chief Sustainability Officer by
the Board of Directors, and three members (Board Director, Corporate Officer, Senior Vice President
and CFO & CISO Yoshimitsu Goto; Corporate Officer, Senior Vice President Kazuko Kimiwada; andCorporate Officer and CLO & GCO Tim Mackey). The Committee deliberates on matters related tosustainability as set forth in the Sustainability Committee Operation Regulations. The Committee’s
agenda items and discussion results are reported to the Board of Directors as appropriate inaccordance with the provisions of the Board of Directors Regulations..

53

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance

Policy on determining compensation amounts andcalculation methods
Overview of the executive compensation system
The executive compensation policy of SBG is decided by a resolution of the Board of Directors,
accounting for the societal and relative status of each officer, as well as the degree of theirrespective contributions to SBG, while referring to compensation survey results conducted byprofessional organizations, so that the system provides compensation that is reasonablycompetitive and can attract global talent who share the same aspirations. The individual amountof compensation is determined pursuant to the procedure described in “Organization andprocedures for deciding executive compensation.” For Board Directors whose main duties are as
officers of subsidiaries and Group companies, compensation is determined by the compensation
policy of each company, based on the Cluster of No. 1 Strategy, and such compensation is paidby subsidiaries and Group companies. The Compensation for External Board Directors and Audit& Supervisory Board Members consists exclusively of fixed compensation because they are
independent of business execution.
Components of executive compensation
Component

Details

Fixedcompensation

Basic
compensation

Overview

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

Organization and procedures for deciding executive compensation
Executive compensation is paid within the range of the aggregate amount of compensation
approved by the resolution of the General Meeting of Shareholders, subject to confirmationthat it is in line with the aforementioned compensation policy and is found to be both rationaland reasonable. The aggregate amount of compensation for Board Directors was capped at ¥5billion in monetary compensation and ¥5 billion in share-based compensation,*11 while that for
Audit & Supervisory Board members was capped at ¥160 million.*12
The compensation of the Board Directors for fiscal 2023 has been decided by Representative
Director, Corporate Officer, Chairman & CEO (Masayoshi Son), based on the contents ofdiscussions by the Nominating & Compensation Committee, which is a voluntary advisory bodyto the Board of Directors, within the range of authority entrusted to him by resolution of theBoard of Directors. The Nominating & Compensation Committee shall review proposedcompensation from multiple viewpoints, including consistency with the SBG compensation
policy and make a report to the Board of Directors on its deliberation details. The Board of
Directors reconfirms that the deliberations are in line with the SBG compensation policy. To
ensure independence, compensation for Audit & Supervisory Board members for fiscal 2023
was decided through consultation among Audit & Supervisory Board members after theconclusion of the Annual General Meeting of Shareholders in June 2023.
*11 Resolved at the 38th Annual General Meeting of Shareholders on June 20, 2018. SBG was served by 12 Board Directors (including
three External Directors) at the time of the resolution.
*12 Resolved at the 41st Annual General Meeting of Shareholders on June 23, 2021. SBG was served by four Audit & Supervisory Board
Members (all four being External Audit & Supervisory Board Members) at the time of the resolution.

Total amount of compensation by title (fiscal 2023)
Subtotals for each type of compensation (Millions of yen)
Number ofpeopleTitle
Aggregatecompensationfor Board
Directors*9

Incentive for short-term performance
Cash bonuses

Performancebased
compensation*10

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

Incentive to improve corporate value over the medium- to long-term
Share-based
payment

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

*9 Excludes compensation for External Board Directors*10 The amount of cash bonuses and the number of stock acquisition rights allotted as stock compensation are decided based on multiple
performance indicators for adequately rewarding the results achieved through business activities. Specifically, it is decided on an
individual basis and shall take into consideration individual performance based on each officer’s ability and achievements, as well ascompany performance including consolidated results, the stock price, and NAV (Net Asset Value).

SoftBank Group Report 2024

Fixed compensation
Performance-based(Basic compensation) compensation (Bonus)

Total amount ofcompensation
Others (Millions of yen)

Board Directors (excluding External Board Directors)

3

168

344

1

513

External Board Directors

5

193

–

–

193

External Audit & Supervisory Board members

4

90

–

–

90

Total

12

451

344

1

795

Total consolidated compensation paid to respective Board Directors whose total
consolidated compensation is ¥100 million or more (fiscal 2023)

Name

Amount ofconsolidated
compensation(Millions of yen)

Subtotals for each type of consolidated compensation(Millions of yen)
Title

Basic
compensation

Bonus

Share-based
payment

Others

SBG

12

78

–

–

SoftBank Corp.

–

–

10

–

Company name

Masayoshi Son

100

Board Director

Yoshimitsu Goto

351

Board Director

SBG

84

266

–

1

Ken Miyauchi

844

Board Director

SoftBank Corp.

84

726

34

–

Rene Haas

3,458

Board Director

SBG

72

–

–

–

Arm Limited

154

1,237

1,993

2
54

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance

Information security

while working to improve security-relatedInformation Technology Federation of Japan,

education for officers and employees.

Japan’s biggest IT association. Of the Nikkei
500 Stock Average constituent companies

As a strategic investment holding company,
SBG promotes initiatives to strengthen
information security in the Group to realize
and lead a safe and secure digital society.
Constructing an information security
governance system

Initiatives to strengthen
information security
Collaboration with Group companies
and portfolio companies
SBG regularly exchanges information onwhich were rated, SBG was among the 14
companies that were awarded two stars.
For the latest information on SBG’s information security,
see “Information Security” on our website.
For more information about the Information Technology
Federation of Japan’s rating program, see “External
Evaluation” on our website.

information security threats and countermeasures

security in the Group, we have establishedwith Group companies and investee companies

an information security governance systemthat do business globally. In addition towith the appointment of Yoshimitsu Goto

keeping abreast of the latest security-related(Board Director of SBG) as Chief Information

technologies, we act quickly to introduce

To encourage constructive dialogue with

Security Officer (CISO).

advanced services and systems offered by eachshareholders and investors (investors in stocks

company to ensure secure work environments.

and bonds), SBG assigns IR duties to theGroup Information
Security Committee

CISOs of each Group company

In the event of a serious information security

Fiscal 2022
661

Fiscal 2023
762

Main themes of dialogue andshareholder concerns
1. Capital allocation
2. Investment strategy
3. NAV discount
4. Arm
5. SoftBank Vision Funds

Policy for constructive
dialogue with shareholders- Video interview with CFO (short video format)- Transcription of Q&A sessions at various earnings
eventsInvestor Relations Department, which had 17

Information Security Governance Structure

Chief Information Security Officer(CISO)

Fiscal 2021
624

Communication withinternational investors

To promote and strengthen information

Board of Directors of SBG

Number of meetings withinstitutional investors / analysts:

NIST CSF compliance and externalorganization assessments

members including the head of thedepartment as of June 1, 2024. Under thethat the management and the departments

SBG implements measures that comply withsupervision of Board Director, Corporate

will make the necessary changes in their

NIST CSF,*13 a cybersecurity framework

Officer, and Senior Vice President, theinitiatives, disclosures, or messaging. Alongside

adopted by organizations and enterprises

department conducts IR activities in close

this feedback cycle, the Board of Directors

around the world, and has received

coordination with related departments,

regularly hears reports on stakeholder

security-related assessments by external

including Accounting, Finance, Legal, andfeedback and shareholders’ holding trends.

organizations with expertise in the U.S. andGeneral Administration. Dialogue withother countries.

shareholders and investors is the responsibility*13 NIST CSF is a cybersecurity framework (CSF) established by
the National Institute of Standards and Technology (NIST)
that consolidates standards, guidelines, and best practices
for cybersecurity risk management.

of the Investor Relations Department andsenior management, including Board Director,
Corporate Officer, and Senior Vice President.

incident in the Group, the department in

For the latest IR information, see “Investor Relations” on
our website.

Status of implementation of shareprice-conscious management

Relaying stakeholders’ feedback to the
management and the Board of Directors

In accordance with the request it received

control of the CISO. To prevent any recurrence,Two-star certification (highest level) by
the Information Technology Federationof JapanTo create a positive cycle of feedback, opinions

31, 2023, SBG has disclosed the status of

we analyze the causes of information security

SBG’s Group-wide efforts related to cybersecurity

and concerns from shareholders and investors

implementation on our website.

incidents to identify possible issues and reflect

and information disclosure earned a two-star

are conveyed to the management and thethem in our information security strategy

certification (the highest level) by thedepartments concerned in a timely fashion, so

charge shall respond to and restore thesituation quickly and appropriately under the

SoftBank Group Report 2024

from the Tokyo Stock Exchange on March

See “Status of Implementation of Share Price-Conscious
Management” on our website.

55

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: GovernanceInitiatives for taxation

Compliance with laws and regulations
The Group will comply with all relevant tax-related laws and regulations when conducting

Tax Policy (enforced from July 29, 2022)

business activities, and take measures based on the “Action Plan on Base Erosion and Profit

The Group’s Tax Policy sets out the principles concerning taxation affairs to be observed by SBG

Shifting” (BEPS Action Plan) set forth by the Organisation for Economic Co-operation andand its subsidiaries when conducting business activities. The Policy was decided by a resolution

Development (OECD) to ensure appropriate payment of taxes. We will also take measures withof SBG’s Board of Directors. It states the Group’s system for the execution of operations and risk

respect to transfer pricing taxation to ensure compliance with OECD Transfer Pricing Guidelines,

management related to taxation affairs, compliance with all relevant tax-related laws andincluding the arm’s length principle.

ordinances when conducting business activities, endeavor to ensure appropriate payment oftaxes and optimization of tax costs, and establishing favorable relationships with tax authorities.

Appropriate payment of taxes and optimization of tax costs

The Group will conduct its business activities in accordance with the laws and ordinances of

The Group will comply with all tax-related laws and regulations related to its business, andeach country and fulfill its tax obligations appropriately, thereby contributing to the economic

endeavor to ensure appropriate payment of taxes and optimization of tax costs by taking

and social development of the countries in which we operate.

measures such as utilizing preferential tax treatment allowed under the tax laws of each country

See the full text of our Tax Policy on our website.

in which we operate and eliminating double taxation, thereby improving the Group’s corporate
value.

PolicyGovernance

Relationship with tax authorities

The Head of the Accounting Unit of SBG is the person responsible for the taxation affairs of the

The Group will establish sound and favorable relationships with tax authorities in Japan andGroup, and the Accounting Unit of SBG (the “Accounting Unit”) shall be the organization

overseas (“Authorities”) and will sincerely explain the Group’s tax status to the Authorities in a

responsible for overseeing operations related to the taxation affairs of the Group. Each Groupfactual manner. In the event that any difference of opinion arises between the Group and thecompany shall establish a department or appoint personnel specializing in taxation affairs

Authorities with respect to any particular matter, we will strive to resolve such differences of(“Tax-related Department”) and work closely with the Accounting Unit to conduct day-to-day

opinion through constructive discussions.

management of taxation affairs. The Accounting Unit will regularly report on the status ofexecution of duties related to the Group’s taxation affairs to the Board of Directors and the
Audit & Supervisory Board of SBG, and will be supervised to ensure an appropriate system forCompetent department
The Accounting Unit of SBG is in charge of this Policy.

the execution of operations related to taxation affairs.
Revision or repeal
Tax risk management

Any material revision or repeal of this Policy requires a resolution of the Board of Directors of

The Accounting Unit and the Tax-related Departments of Group companies will effectively utilizeSBG.

the knowledge of external experts to constantly stay abreast of the latest information on
tax-related laws and regulations in Japan and overseas, and international standards and the like,and endeavor to proactively foresee tax risks. In addition, they will strive to minimize risks byconsidering countermeasures for any foreseen tax risks. In the event that a significant tax risk of
the Group materializes, each Group company shall immediately report to the Accounting Unit,
and the Accounting Unit will promptly report to SBG’s Board of Directors and Audit &Supervisory Board, and coordinate with Group companies as required, and endeavor to takeappropriate action.
SoftBank Group Report 2024

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Sustainability: Governance

Characteristics of the Group’s Taxation

Income taxes paid on a consolidated basis (net)

Income on the consolidated statement of profit or loss is not directly
connected to SBG’s stand-alone tax payment amount.

(Billions of yen)

Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023

The consolidated statement of profit or loss of SBG presents the operating results for SBG and
its subsidiaries as a group, while the stand-alone statement of profit or loss presents SBG’s

ConsolidatedJapan

operating results as a stand-alone company. Moreover, the income on SBG’s stand-alonestatement of profit or loss is only the income for accounting purposes, which differs from theincome used as the basis for calculating income taxes (taxable income). SBG has not introduced
the Consolidated Tax Return Filing System (Japanese Group Relief System).

Overseas

The majority of SBG’s stand-alone operating revenue is dividends received
from affiliates, a significant portion of which is non-taxable.
As a pure holding company, the majority of SBG’s stand-alone operating revenue is dividends
received from its subsidiaries and associates. These subsidiaries and associates pay income taxes
on their respective income and then pay dividends from the remaining income. Therefore, a

324.5

589.3

525.9

816.8

189.5

551.2

469.7

717.0

SBG and holding companies(wholly owned subsidiaries)(85.3)

200.0

214.2

443.3

Operating companies, mainly SoftBank
and LY Corporation

274.8

351.2

255.5

273.7

135.0

38.1

56.2

99.8

Notes:
1. The amounts are the net amount of tax payments and tax refunds.
2. Income taxes paid on a consolidated basis match the net amount of “income taxes paid” and “income taxes refunded” in the
consolidated statement of cash flows.
3. Income taxes paid by SBG and intermediate holding companies in Japan for fiscal 2020 was negative due to the refund of JPY 143
billion in withholding income tax paid in fiscal 2019.
4. SBG and intermediate holding companies in Japan have paid JPY 443.3 billion in income taxes for fiscal 2023, including an interim
payment of JPY 118 billion, of which JPY 76.3 billion is expected to be refunded in fiscal 2024.

substantial portion of the dividends received falls outside the scope of taxation for SBG. On theother hand, one-time gains from the sale of shares owned by SBG are taxable.
Illustration for calculation of SBG’s stand-alone income before income tax and income taxes
Calculation of stand-alone income before
income tax in corporate accounting
Gain onsale ofshares,etc.

Dividends
received,
etc.

Calculation of taxable income andincome taxes

Expenses/lossesTaxableincomeIncomebeforeincometaxes

Taxadjustments
Deductdividends
received

× tax rate =Incometaxes

To avoid double taxation,a significant portion is
non-taxable

Note: Loss carryforwards, if any, can be used to partially reducetaxable income.

Taxes related to SoftBank Vision Funds investment business are compliant
with the tax systems of the relevant jurisdictions, including Japan.

SoftBank Group Report 2024

57

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from External Board Director

Harnessing Organizational Patience to
Maximize AI-driven Business Opportunities
across Japan, the U.S., and China. Back then,aligned with my own thinking. Since joining

the more diverse the board, the better. We

venture capitalists (VCs) typically focused on

SBG as an external director two years ago, I

are witnessing an unprecedented AI

their domestic markets, operating in “silos”

see my role as leveraging my Silicon Valley

revolution that will impact people in all

My connection with SBG goes back 23 to 24

with U.S. VCs investing in the U.S. andand global investment experience to enhancecorners of the world in a more profound way

years, when I first met Son-san (Masayoshi

Japanese VCs investing in Japan. I always felt

SBG’s corporate value, going beyond thethan the industrial and mobile revolutions.

Son, Representative Director, Corporatethat this silo mentality was somewhat

typical responsibility of overseeing

Therefore, having a diverse range of skills

Officer, Chairman and CEO of SBG). At that

limiting. So, whenever I exchanged ideas

management decisions.

and expertise to navigate this revolution istime, I had already founded DCM Ventureswith Son-san, his global investment

and was investing in technology companies

perspective truly resonated with me andDynamic discussions with adiverse Board

David Chao
External Board Director, Independent Officer

SoftBank Group Report 2024

At the Board meetings, we thoroughly
discuss various topics, including strategic

crucial and we can continue to do better.
In addition, developing a succession planmatters. What I find particularly unique andfor the unique entrepreneur Son-san is a

excellent about SBG is that after each Board

challenge. However, with the AI revolution

meeting, the directors always gather for an

unfolding very rapidly before us, thisinformal discussion that lasts two to threemoment is crucial for SBG’s future growth.

hours. In these sessions, we freely exchange

Usually, the larger a company gets, it

opinions on a variety of topics, including

becomes less agile and flexible. This is why

Son-san’s vision, new projects, market

small nimble start-ups can sometimes

perspectives, and more, sometimes engaging

become giant-killers. Son-san has provenin heated debates. For me, these informal

over the years that he can continue to leadgatherings also play a meaningful part in the

SBG, a very large organization, and at therole of the Board at SBG because they allow

same time, be nimble. Therefore, what we

us to delve deeper into the topics covered inneed most right now is the swift decision-

the formal meetings. Son-san often comesmaking of Son-san, the founder, and theup with surprising new ideas, but because

agile and flexible actions of SBG as an

we have discussed the underlying concepts

organization. Finding a successor is not easy,in these informal settings, we can quickly see

and while we understand the necessity of ahow his ideas fit into the overall strategy.

succession plan, at this pivotal moment, I

Another strength of our Board is the highly

believe our higher priority is to attract greatinteractive discussions that arise from having

talent and ensure sustainable growth aroundmembers with diverse industry backgrounds.

the nimble founder who is also the soul of

We all share the common understanding thatthe company.
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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from External Board Director

The art of patience in venture
investment

stakeholders that this process takes time. We

with promising business models for growth.

need to be patient and continue to support
our portfolio companies from within.

missing the timing. This perfectly exemplifies
the saying: “Chance favors the prepared

The power of reinvention:
What sets SBG apartmind.”In Board discussions, I often share my views

Ultimately, I believe the track record of theon technology trends. Additionally, given myhundreds of companies we have invested inexperience as both an entrepreneur and awill reveal winning trends and help highlight

I think that Son-san and SBG, which heComputer (mainframes, server-client andventure capitalist, I frequently emphasize thethe key companies and areas to focus on. I

founded, are exceptional in their ability toPCs), the Internet, Mobile, and now AI.

need for patience. The nature of venture

hope that we can learn a lot, not only fromboldly transform with the times andWhile PCs are now affordable for personal

investing varies significantly from early tothe successes but also from the failures,“reinvent” themselves to deliver results inuse, the development of the PC market was

middle to late stages. When I first joined, Iembracing new challenges and turning them

new fields. Starting as a software wholesaler,initially driven by B2B, while the growth andwas struck by the view held by some, that

into successes.

then moving into PCs, the Internet, mobile,

proliferation of the Internet and mobile werethe majority of the investments would do

Looking back on the technology revolution
to date, there have been four waves:

Looking ahead at the VC market, my sense

and now AI, they have repeatedly createdpropelled by B2C. So how will the fourth

reasonably well. This expectation, along withis that the industry, aside from AI, is about a

new businesses in entirely different fields. I

wave, AI, unfold? Like the computer

the tendency to seek quick results, needed toyear away from bottoming out. About 12 tohave worked with many successful

revolution, I envision AI initially creating

be addressed. In the venture world, start-ups

18 months ago, when fundraising wastechnology CEOs and corporations globally,

added value in the B2B sector and thenthat go out of business appear earlier in the

difficult and the market was sluggish, manybut Son-san and his team’s ability to

making a significant leap forward from there.

investment cycle. In contrast, companies thatexisting investors made additional

continuously reinvent is rare. It is challenging

In this regard, Son-san’s experience with the

do well in the long run take time to matureinvestments in the form of bridge loans or

enough to venture into new businesses andcomputer revolution, where technology

and the winners are not obvious for manyrounds that propped up the valuations. The

achieve results, but Son-san has successfully

growth was initially centered on B2B, will be

years. In baseball terminologies, there areindustry standard at that time was to provide

and positively reinvented SBG multiple times.

a tremendous advantage in capturing future

strikeouts and hits, and occasionally, a grandone more round of funding that would allow

The recent IPO of Arm is another example.

growth opportunities.

slam home run like Alibaba, which took 15

companies to survive one to two years longer

Within SBG, there is a culture of constantly

years since the company was founded toand see what happens. Therefore, in the next

embracing new challenges. Even though thecompanies emerging as likely core players in

IPO. In venture investing, we need to

12 to 18 months, there will be a clear

future is uncertain, Son-san and SBG are full

the future AI space, and the next-generation

understand this and be patient as an

distinction between companies that canof enthusiasm to create new businesses andAI ecosystem is being built around them.

organization over the long term.

survive and those that cannot. In any case,contribute to society.

Arm is one of these core players. Arm has

In general, venture capital return follows aonce the market goes down, it would takeJ-curve, where the IRR is negative for the first

three to four years to recover, as we saw

three or four years. Some of SoftBank Vision

with the dot-com bubble.

We are already seeing six or sevenalways fortified itself by creating an

SBG’s growth potential in the
AI eraecosystem, expanding into areas such as
mobile, automotive, and servers. This

Funds’ investments have shown early positive

On the other hand, AI companies withresults, making it difficult to see the typicalstrong teams continue to attract funding and

AI is now broadly categorized into machine

Arm’s DNA and will help them maintain its

J-curve pattern. However, it takes a long time

maintain their valuations. Still, over the next

learning and generative AI. SBG has been

competitive advantage to fuel their growth.

for the upward trend of a J-curve to emerge.

two years or so, we will likely see a clearer

involved in AI for the past six to seven years,

With Arm, which provides foundational AI

SBG is investing in promising companies, anddivision within the AI sector, with some areas

closely following the evolution of machinetechnologies, I believe SBG is well-positioned

I believe we will eventually see some home

experiencing growth and others not. Thislearning. This has allowed us to quickly adapt

to capture future growth opportunities andruns. It is crucial to communicate to external

period will be crucial for selecting companies

to the emergence of generative AI without

lead in the AI era.

SoftBank Group Report 2024

ecosystem business model is embedded in59

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Compliance

Commitment to Integrity
Compliance as the foundationof our businessGroup compliance structure
Board of Directors of SBG
OverseeWe believe that our commitment to integrity,
which goes beyond legal and regulatorycompliance, must be the foundation of ourOverseea Group Compliance Officer (GCO) as thechief officer responsible for compliance

ReportGroup Compliance Officer (GCO)
Oversee

conduct in every action they take.

The Board of Directors of SBG has appointed

Appoint

Updatewhere every officer and employee
demonstrates the highest degree of ethicalOversight of program· Leadership· Governance

UpdateGroup Risk and Compliance Committeeof SBG (GRCC)

business. We aim to create an organization

Organizational structure

Structure of SBG’s ethics and compliance program

Report /consult
Report / assist

Group Compliance OfficeDirect / advise / guide

ReportChief Compliance Officer (CCO)of SBG

Direct / advise / guide
Coordinate

Report / consult

Employee of SBG

Risk assessment∙ Company-wide assessment∙ Oversee risk mitigations

Standards and controls∙ Code of Conduct∙ Group Policies∙ Controls

ReportChief Compliance Officer (CCO)of subsidiaries
Report / consult

Employee of subsidiaries

Monitoring, oversight,
and review∙ Ethics and compliance helplines∙ Employee surveys∙ Internal audits

Training and awareness∙ E-learning∙ Face-to-face training∙ Regular communications

across the Company, and similarly, eachsubsidiary appoints a Chief Compliance
Officer (CCO). The GCO and CCOs have theresponsibility to implement systems designed
to ensure compliance with applicable laws
and regulations and to promote ethical

Ethics and complianceprogram and oversightconduct. The GCO and CCOs periodically

The Group Risk and Compliance Committee

report material incidents and risks together(GRCC) consists of Board Directors andwith activities of their ethics and complianceCorporate Officers of SBG and provides

programs to their respective board ofoversight of the risk management anddirectors.

ethics and compliance programs of the

SoftBank Group Report 2024

of noncompliance. SBG’s Board of Directors

and staff across various areas such asreceives regular separate reports on, andanti-corruption, prohibition on discrimination,

evaluates and supervises the effectiveness of,confidentiality, conflicts of interest, antitrust

the ethics and compliance programs.

laws, money laundering, insider trading,working environment, and whistleblowing.

Code of conduct and Group
policies

In April 2024, SBG updated the SoftBank
Group Code of Conduct to proactively
integrate AI into our operations. This

Company. The GRCC assesses the key

SBG has established the “SoftBank Group

update reflects our belief in the future

performance indicators that measure theCode of Conduct” as the standard that allhappiness that AI can bring. It also outlines

effectiveness of the risk management andthe Company’s officers and staff should

the necessary considerations for promoting

ethics and compliance programs such as risk

follow. Our Code of Conduct sets out

the ethical and responsible use of AI by ourassessments, risk mitigation, and incidents

standards to guide the Company’s officers

employees, aiming for the achievement
60

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

ComplianceTop page of the SoftBank Group Code of Conduct website

behaviors. The use of visually memorable
contents is designed to be easily understood.

Monitor, audit, and review
SBG has established a global ethics andTop screen of intranet site, Compliance Awareness Month 2023

compliance helpline to receive reports andconsultations regarding compliance violations
involving the Company or its officers andemployees, from our officers, employees,
business partners, and other third parties.
Reports and consultations can be madeanonymously to the extent permitted bylaws and regulations. We received frequent
reports and requests for advice in fiscal

See the full text of our Supplier Code of Conduct on our website.
See the SoftBank Group Code of Conduct on our website for further details.

Compliance e-learning

2023 from across the Company. The CCOs
are responsible for setting up helplines
for their respective companies. Significant

of responsible AI practices. SBG has also

investment-focused subsidiaries, SBG revisedand staff regarding high-risk areas such as

substantiated cases must be escalated to theestablished the “Supplier Code of Conduct”

the related policies in fiscal 2023 to further

conflicts of interest. SBG has introduced a

GCO.

to clarify the ethical standards we would likestrengthen the management structure.

global training system, which, in addition

SBG conducts an employee survey

SBG conducts an annual review of all theto providing the Code of Conduct training,

to measure its ethical culture and theour suppliers to follow.
SBG has implemented a full suite of Group

Group Policies and made certain revisions asprovides Group companies in Japan andeffectiveness of its compliance program. SBG

Policies that establish Group-wide minimum

appropriate. We will continue to periodicallyabroad with training that addresses different

uses the results of the survey to improve its

requirements for all subsidiaries and theirreview and revise them.

areas of risk for each of them.

ethics and compliance programs for the next

officers and staff across key risk areas such as

As one example of the awareness-raisinganti-corruption, competition law, conflicts ofinterest, insider trading, economic sanctions,information security, privacy, human rights,

activities, SBG holds the ComplianceTraining and awareness

Awareness Month annually for officers
and staff of SBG and those at its major

brand management, corporate governance,

The Company conducts training andsubsidiaries in Japan and overseas. SBG also

the environment, risk management, andawareness-raising activities to ensure that

periodically delivers communications throughtaxes. In line with the actual operation

officers and staff recognize risk areas andanimated videos and comics featuring actualof the centralized management systemhave the information they need to make thecases and familiar compliance issues tofor insider information and investmentright choices.

enable its officers and staff to refresh andconflicts, introduced in 2022 for SBG and its
SoftBank Group Report 2024

year.

The Company provides training for officers

consolidate their knowledge about ethical61

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Risk Management

Mitigating Impediments to Sustainable Growth
Risk management system

Risk management initiatives

At SBG, the Risk Management Office spearheads Group-wide risk management activities cooperating

The Risk Management Office works to strengthen risk management activities by identifying and addressing

with each Group company and department. The office is supervised by the Chief Risk Officer (CRO),risks, with the aim of mitigating factors that adversely affect the Group’s sustainable growth.

who is appointed by the Board of Directors with responsibility for Group-wide risk management.
SBG established the Risk Management Policy to ensure a Group-wide understanding of the

Identifying risks

purpose of risk management and to clarify the basic roles of officers, employees, and risk

The Risk Management Office is pursuing the following initiatives to gain a comprehensive

managers. This policy applies to all officers and employees of SBG and the Group companies tounderstanding of financial and non-financial risks facing the entire Group.

encourage their active involvement in risk management activities. In accordance with SBG’s Risk
Management Regulations and the Group Company Management Regulations, which are set
under the Risk Management Policy, SBG and the Group companies appoint risk managers. The
risk managers are responsible for comprehensively identifying financial and non-financial risks
that might arise during business activities and for monitoring both the countermeasures taken
to address these risks and the status of their implementation.
The Risk Management Office ensures the effectiveness of Group-wide risk management byreceiving reports on important matters from the risk managers and confirming compliance with theregulations. The policy and regulations are periodically reviewed and approved by the Board of
Directors of SBG and other bodies. The Risk Management Office quarterly reports identified risks thatare material to the Group and their countermeasures to the Board of Directors and the Group Risk
and Compliance Committee (GRCC), respectively. Accordingly, both governance bodies supervise theRisk Management Office. The GRCC consists of Board Directors and Corporate Officers of SBG andprovides oversight of the risk management and ethics and compliance programs of the Company.

Key agenda confirmation
When important matters are to be resolved by SBG’s Board of Directors, the Investment
Committee, and other bodies, the Risk Management Office confirms the agenda items in advanceand consults with the relevant departments, if necessary. It also ensures that risk-related
information that needs to be considered is reflected in the agenda.
Portfolio risk analysis
The Risk Management Office performs risk analysis over the entire Group’s investment portfolio
from various perspectives. For example, the Risk Management Office monitors the impacts on
SBG’s financial ratios that are caused by changes in the external environment such as economic
and monetary policies and other political conditions. The concentration of investments in specificcountries, regions, and sectors is also monitored continuously.
Risk information gathering
The Risk Management Office gathers information on various risks from the major Group companies
and each department of SBG. When the risks materialize, the relevant Group companies anddepartments of SBG escalate the issues to the Risk Management Office in a timely manner.

Risk management system
Board of Directors of SBG
Supervise
Appoint /supervise

ReportResponding to risks

ReportBased on the information gathered through the above initiatives, the Risk Management OfficeGroup Risk and Compliance Committee of SBG(GRCC)
Supervise

analyzes and assesses various risks and countermeasures. For material risks that could have asignificant impact on the Group’s sustainable growth, the Risk Management Office collaborates with

Reportthe parties involved in each risk in order to consider countermeasures and monitor the effectivenessChief Risk Officer (CRO)
Risk Management Office
Manage / assist

Report / cooperate

Each department of SBG

SoftBank Group Report 2024of such countermeasures. Material risks and the status of countermeasures are reported to andManage / assist

Report / cooperate

Each Group company

discussed by the Board of Directors and the GRCC. Based on the results of those discussions,
the Risk Management Office strives to strengthen the Group’s risk management system.
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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Message from Our Chief Risk Officer (CRO)Supporting Sustainable Growth Through Adaptive
Risk Management
It has been three years since you
took over as CRO. Looking back,what are your reflections?

sources, including each division andbeing transformed into a group of

subsidiary, to identify material risks andAI-empowered companies, with Arm at thethe early stages, and the risks we need toconsider how to address them. In fiscal 2023,

core. Sparked by ChatGPT, AI in 2023 evolved

monitor could change depending on future

When I joined SBG in 2020, our investment

we made progress in shifting our holdings toand spread rapidly and had a significant impact

business developments. It is essential tobusiness, especially SVF, was thriving andan AI-centric portfolio and resumedon the economy and financial markets. At theunderstand the business situation of eachposted the highest consolidated net income

investments aimed at moving to offense

same time, concerns about AI risk have also

company, work closely with all parties

ever recorded by a Japanese company.

mode. Meanwhile, our business environment

grown, and many countries and regions,involved, and provide support as needed.

However, the situation has changed drasticallyremains highly uncertain due to the turmoil in

including the European Union, the U.S., andIn addition, I believe it is crucial to manage

since then, and a period of significant deficits

international affairs. I am dedicated toJapan, are actively discussing rulemaking on theexisting investments in SVF. SVF has developed

followed. The composition of our holdings

considering risks from all aspects and support

development and use of AI. In light of this, wea strategic portfolio management policy thathas also changed. In 2020, Alibaba was thethe Company’s sustainable growth.

are working to strengthen our AI governanceincludes helping portfolio companies increaseby monitoring regulatory trends and enhancing

their corporate value through effective

cooperation among Group companies.

engagement. The Risk Management Office1cornerstone of our portfolio, but Arm, once
targeted for sale to NVIDIA, went public in
2023 and is now our core holding.

2

How have the risks changed
following the transition of thecomposition of holding assets?

Currently, many of our investments are in

actively considers the impact of these efforts

seen many companies, and it is hard to find a

Alibaba used to be a major holding, and SVF

company that changes on such a scale andalso had many other investments in Chinese

Are there any particular risks you
are watching closely as
investments are resumed?

with such speed. In addition, as ancompanies, so the Risk Management Office

We are focusing on strategic investments that

accountant, I found it unprecedented thathas focused on swiftly identifying various risks,

have been gradually increasing. Unlike SVF,

understanding a company required more thansuch as tightening regulations in China and its

which is based on financial investments, theseanalyzing financial statements. Typically, I canconflict with the U.S. We have reported to theare business investments with a longer-term

understand the substance of a company by

Board of Directors and GRCC the percentage

perspective. Therefore, we need to consider

looking at its accounting profits and assets,of our total portfolio that is invested in China

various risks, such as the possibility that a

but in our case, that is not enough toand the impact on the Company if the value

portfolio company’s business might notdecipher the true nature of the company.

of our holdings were to plummet. Currently,

perform well and how to manage a portfolio
company that has become a subsidiary.

Throughout my tenure as an auditor, I have3

and continuously monitors the status.

In this context, I became acutely aware of

our holding in Alibaba is virtually zero, and ourthe complexity and importance of the Group’s

Chinese investments as a percentage of total

risk management. I began by analyzing ourholdings have dropped. Therefore, I believe

assets and liabilities to understand the actual

the China risk has been significantly mitigated.

Kiyoshi Ichimurasituation. I then gathered information from all

However, there are new risks. Our portfolio is

CRO,
Head of Risk Management Office

SoftBank Group Report 2024

63

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Risk Factors

Risk Factors
The material risks that the Company (SBG and its subsidiaries) believes could significantly affect investors’
investment decisions as of June 21, 2024 are outlined below. The materialization of these risks could have an
adverse effect on:· NAV (Net Asset Value): equity value of holdings – adjusted net interest-bearing debt*1· LTV (Loan to Value): adjusted net interest-bearing debt ÷ equity value of holdings*1; The ratio of debt toasset holdings.
· Financial condition and results of operations· Distributable amount of SBG
These risks do not include all the risks that the Company could face, nor is there a guarantee that measures
to address such risks will be fully effective. Forward-looking statements were determined as of June 21, 2024,
unless otherwise stated.
*1 See pages 20-21 for details on the calculation method of NAV and LTV.

(1) Group Overall
Under the Company’s management system, the Company is engaged in a wide range of investment activities
based on the investment theme of artificial intelligence (AI), with SBG, a strategic investment holding
company, exercising overall control over its investment portfolio comprising SBG’s subsidiaries, associates, andportfolio companies (hereinafter “portfolio companies”). The Company’s material risks in the execution of its
business are stated in subsections a. through c. below.
Additionally, please refer to “(2) SoftBank Vision Funds business,” “(3) SoftBank business,” and “(4) Arm
business” for the material risks in the SoftBank Vision Funds segment, SoftBank segment, and Arm segment,
respectively.
a. Investment Activities Overall(a) Market environment
The Company invests mainly in information and technology companies that leverage AI; however, thevaluation of these companies can vary significantly depending on the outlook for technological progressand market growth. Therefore, the Company’s equity value of holdings may be affected by these typesof sector-specific factors, in addition to macroeconomic, monetary policy, and stock market trends. In
addition, private portfolio companies are also affected by trends in the venture capital and IPO markets.
Since Arm continues to be a consolidated subsidiary after its listing in September 2023, its stock
price change does not affect the Company’s financial condition and results of operations. However, thestock price change has a substantial effect on the Company’s equity value of holdings since Arm shares
represent a large portion of the Company’s equity value of holdings.
Moreover, the Company may be affected by foreign exchange rate movements in connection with its
ownership of foreign currency-denominated assets and liabilities.
The Company aims to conduct stable financial management to withstand the impacts of market
volatility. For details, see “Message from Our CFO” on pages 16-19.

SoftBank Group Report 2024(b) International conditions and regulatory trends
The Company invests in companies and other entities that operate not only in Japan, but also incountries and regions overseas, such as the U.S., China, India, Europe, and Latin America. Therefore,
due to changes in political, military, or social circumstances and to the establishment of new laws,
regulations, systems and other rules (hereinafter “laws and regulations”) and the strengthening
thereof (including changes in interpretation and implementation) in those countries and regions, theinvestment activities of the Company and the business activities of portfolio companies may not develop
as expected. Laws and regulations include, besides those related to investment, laws and regulations
related to businesses such as AI, telecommunications services, internet advertising, e-commerce,
automated driving, robotics, logistics, financial services and payments, and to other corporate businessactivities (including, but not limited to, laws and regulations related to business permits and licenses,
economic security, import and export, personal information and privacy protection, the environment,
product liability, fair competition, consumer protection, prohibition of bribery, labor management,
intellectual property rights, prevention of money laundering, taxation, and foreign exchange). The
investment activities of the Company and the business activities of portfolio companies are directly
or indirectly affected by those laws and regulations. Recently, countries have been taking steps to
implement stricter regulations from an economic security perspective, against the backdrop of factors
such as the Russia-Ukraine conflict, the situation in the Middle East, and intensified U.S.-China rivalry.
For example, the introduction of laws and regulations to restrict investment in specific countries orcompanies could constrain the Company’s investment activities, as well as cause the realization of
investments to be delayed or the terms and conditions for the realization of investments to deteriorate.
In addition, if heightened geopolitical risk results in supply chain disruptions, or if stricter trade
regulations restrict the import or export of specific products and technologies, and other items, thebusinesses and operating results of portfolio companies may be adversely affected.
Moreover, the investment activities of the Company may require approvals and permissions from theregulatory authorities of relevant countries, or the Company’s involvement with portfolio companies
may be restricted. If the necessary approvals and permissions cannot be obtained or other restrictions
cannot be avoided, the Company may be unable to successfully implement its investment or divestment
plans as it expects.
The Company collects information about the changes in the external environment described above
and assesses the impact they may have on investment activities, while receiving advice from outsideadvisers. Concurrently, the Company works to address each of these regulations. In addition, theCompany continuously monitors the concentration of investments in specific countries or regions, andbusiness sectors, within its investment portfolio. By doing so, the Company identifies risks and reflects
them in its management decisions.
(c) Business development of portfolio companies
The Company aims to maximize returns from a medium- to long-term perspective by making
investments in information and technology companies that leverage AI. However, portfolio companies

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Risk Factors

may be unable to develop businesses as envisioned at the time of the investment decision, due
to factors including the obsolescence of portfolio companies’ technologies and business models,and intensified competitive environments. This may lead to a significant deterioration in businessperformance or a drastic revision of their business plans. Moreover, the Company may provide loans,loan guarantees, additional investment or other forms of financial support as deemed necessary to
improve their shareholder value, if they are unable to develop businesses as anticipated. Providing
such support could increase the Company’s exposure to those portfolio companies. Nevertheless, theCompany has a general policy of not making investments solely for the purpose of providing relief.
Even after making investments, the Company continuously monitors major risk factors of portfolio
companies, including financial and management information, key performance indicators, differences
between business plans at the time of the investment decision and actual progress, and the statusof corporate governance. To address these risk factors, the Company implements measures suchas providing advice and dispatching officers to improve the management of portfolio companies asnecessary.
(d) Investment decisions
In the investment decision-making process, the Company may make investment decisions while
misjudging the risks concerning such factors as the technology, business model, competitiveenvironment, financial condition, compliance, and governance of an investment target, or the integrityof the founders and managers who have critical influence. In particular, the transparency, accuracy, andcompleteness of information on which the Company bases its investment decisions are relatively more
likely to be inadequate at private companies.
In the investment decision-making process, the Company seeks to assess investment-related risks
by conducting due diligence on important factors of the target, while obtaining the cooperation of,for example, outside financial, legal and tax advisers as necessary, in addition to referring to researchand reviews by the relevant internal departments. Based on the results of such procedures, investment
decisions are made by either the Board of Directors of SBG, the Investment Committee to whichauthority is delegated by the Board of Directors, or the Investment Committee of the fund management
subsidiary.
b. Fund procurement
The Company utilizes a diverse range of procurement methods, such as loans from financial institutions andthe issuance of bonds, as well as raising funds through asset-backed financing and selling assets.
For loans from financial institutions and bonds, if the procurement environment deteriorates due to factors
such as changes in interest rates or credit rating, the Company may be unable to raise funds at the planned
timing, scale, or conditions. In addition, various covenants may be attached to the debts. If these covenants
are breached, the Company may forfeit the benefit of the term with respect to such obligations. Furthermore,in connection with this forfeiture, the Company may be requested to make lump-sum repayments withrespect to other obligations.
For asset-backed financing (excluding prepaid forward contracts) using public equities such as Arm shares,or private equities, if the value of eligible equity holdings declines, the Company may be required to post
additional cash collateral or incur prepayment obligations. The Company may also face difficulties in raising
new funds and refinancing.
Regarding fundraising through the sale of asset holdings, the Company may be unable to sell assets at

SoftBank Group Report 2024

anticipated prices when necessary due to factors such as sluggish market liquidity, contractual restrictions on
asset sales, and delays in scheduled IPOs.
To control risks related to fund procurement, the Company raises funds with timing and methods that are
deemed appropriate based on careful monitoring of market conditions. In particular, when borrowing fromfinancial institutions, issuing corporate bonds, and conducting asset-backed financing, the Company increase
the stability of each type of fund procurement by conducting prior reviews and implementing measures
based on various anticipated scenarios. Through these measures, the finance departments strive to maintain asufficient cash position with financial discipline.
c. Management team
The Company’s major subsidiaries and investment funds are run autonomously, the subsidiaries by theirrespective CEOs and other leaders, and the investment funds by the CEOs of fund operating subsidiaries
described below. However, unforeseen situations with respect to Representative Director, Corporate Officer,
Chairman & CEO Masayoshi Son, who plays a pivotal role in the Company’s management, could impede theoverall activities of the Company.
If such an unforeseen situation were to occur, the decision-making process could be affected. To minimize
this impact, the Company has drawn up contingency plans. In addition, the Nominating & Compensation
Committee periodically discusses succession plans.
(2) SoftBank Vision Funds business
SoftBank Vision Funds (SVF1, SVF2 and LatAm Funds, hereinafter “SVF”) aim to maximize returns overthe lifecycle of each of the funds by making investments in technology companies primary leveraging AI
that are deemed to have high growth potential. SBG invests in these investment funds as a limited partner.
Additionally, the Company’s wholly owned subsidiaries who manage these funds (SBIA, which manages
SVF1, as well as SBGA, which manages SVF2 and LatAm Funds, hereinafter the “Managers”) are respectively
entitled to receive management fees, performance-linked management fees, and performance fees, each ofwhich is measured by reference to the investment activities of the investment funds.
The material risks at SVF and their Managers are stated in subsections a. through d. below. In this section(2), the phrase “portfolio companies” refers to the investees of SVF.
a. Business execution risks of portfolio companies
Many portfolio companies are seeking to leverage new technologies such as AI and big data to create new
business models. There are various risks involved for these companies to develop their businesses as planned,
earn profits, and establish a solid business foundation.
In particular, these risks include: that they may not be able to develop technologies or implement businessmodels as expected, or provide products and services that meet customer needs and market practices; theirunit economics may not be strong enough to fully cover the cost of the platform and continued investment intechnological advancement; they lose out to other new entrants with the latest technologies or to incumbents
with strong business foundations; they are unable to adjust themselves to their expansion into adjacentbusinesses or different geographies and to changes in the economic or business environment; they are notable to secure profits if the customer acquisition costs, such as advertising and sales staffing, significantly
exceed their original plans; and, they are unable to respond to growing compliance complexity and/or manage
the costs for privacy and AI across varying jurisdictions.
In addition, as the strategic importance of advanced technology in national security has been growing

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Risk Factors

in recent years, and with a backdrop of a worsening relationship between the U.S. and China, it is possiblethat stricter regulations in various countries will be introduced, which may adversely affect the businessdevelopment of the portfolio companies.
Furthermore, many portfolio companies have funding needs for business development. If the fund-raising
environment deteriorates, it may not be possible to raise funds on the expected terms, resulting in the need to
cut costs materially, which may impede growth, or to raise funds on terms that dilute the Company’s share in
the portfolio company.
At the Managers, the investment risk team plays a central role in identifying these risks early and mitigatingthem through the investment approval process and ongoing post-investment monitoring.
b. Lack of opportunity to exit from investments
Due to the illiquid nature of many of the investments that SVF may acquire, as well as economic, legal,
political, or other factors, there can be no assurance that SVF will be able to monetize such investments asoriginally planned. Additionally, SVF may be prohibited by contract or other limitations from selling certain
securities for a period, which may mean that SVF is unable to sell investments at favorable market prices.
Approval of an exit strategy is a key part of the Managers’ Investment Committees’ considerations. Exit
strategies are regularly reviewed and updated by the Managers’ investment teams. Exit strategies are alsostress tested under various market conditions by the investment risk team to allow for forward planning. In
setting up a long-term fund structure, it was anticipated that multiple economic downturns could occur andthat some investments may take longer to exit than others.
c. Securities issued by public companies
SVF’s investment portfolios may contain securities issued by public companies. Such asset holdings are subject
to risks that include increased obligations to disclose information regarding such companies, limitations on theability of SVF to dispose of such securities at their discretion, increased likelihood of shareholder litigation andinsider trading allegations being brought against such companies’ executives and board members, including
employees of the Managers. In addition, there may be increased costs associated with addressing each of theaforementioned risks.
The primary mechanism employed to mitigate the market risk following a liquidity event is to follow adeliberate plan for selling down the positions to minimize the market impact and to maximize the value of theproceeds. The Managers also examine whether to hedge the foreign-exchange risk should the securities bedenominated in a currency whose exchange rate relative to USD is volatile.
Additionally, the operational and compliance risks that arise while managing SVF’s public securities
positions are managed through an appropriate control framework spanning the Managers’ operational,
compliance and enterprise risk activities including, policies, staff training, whistleblower helpline, pre-tradeapproval processes (including the approval of trading counterparties), and post-trade reconciliations andexception monitoring.
d. Securing and retaining human resources
The Managers seek to maximize the equity value of SVF funds that they respectively manage, by carefully
selecting investments and promoting growth after investment through the provision of a wide range of
support. For the success of these investment activities, it is essential to secure and retain capable personnel
who possess broad knowledge of technology and financial markets as well as specialized skills in managing
investment businesses. A failure of the Managers to secure or retain an adequate number of capable

SoftBank Group Report 2024

personnel could have an adverse effect on the maintenance or expansion of the investment scale and future
investment performance of the investment funds they manage.
In order to maintain their broad investment and management capabilities, the Managers provide various
HR support programs and ensure the human capital in the firm has the requisite skill sets to meet businessobjectives. The Managers conduct a range of efforts including regularly reviewing performance, organization
design, and training and development, as well as moving staff across the organization to ensure they fulfil
their potential.
(3) SoftBank business
SoftBank Corp. and its subsidiaries (hereinafter the “SoftBank Corp. Group”) engage in its core businessof telecommunications, in addition to providing services such as Yahoo! JAPAN, LINE, and PayPay, anddeveloping its business in various fields within the information and technology domain. The material risks at
the SoftBank Corp. Group are stated in subsections a. through f. below.
a. Changes in the market environment and competition
The telecommunications-related market has seen major changes in the business environment, mainly driven by
the strengthening of pro-competitive policies and new entrants from different industries, and users have also been
increasingly seeking more inexpensive and varied services. In order to address the market environment describedabove, the SoftBank Corp. Group deploys services, products and sales methods that fit consumer preferences.
However, if the SoftBank Corp. Group is unable to meet the expectations of consumers for price plans, voice anddata communications quality and so forth, or if the service and products provided by the SoftBank Corp. Group
have significant defects, there are no assurances that the SoftBank Corp. Group will be able to maintain its current
number of subscribers. Moreover, the introduction, amendment, or change in interpretation or application oflaws, regulations, systems, and so forth, could result in the effective restriction of services and products that the
SoftBank Corp. Group can deliver to its customers, or of sales methods and price plans, etc., causing the SoftBank
Corp. Group to experience a decline in revenue and to incur a larger financial burden.
In certain instances, the SoftBank Corp. Group’s competitors may have a competitive advantage over the
SoftBank Corp. Group in terms of capital, services and products, technology development capabilities, pricecompetitiveness, customer base, sales capability, brands, public recognition, or overall capability in all of these,for example. If these competitors were to sell services and products that harness these competitive advantages
to a greater extent than at present, the SoftBank Corp. Group may be placed at a disadvantage in sales
competition, including price competition, may be unable to provide services and products, or acquire or retain
customers, as anticipated, or may experience a decrease in Average Revenue Per User (ARPU). Furthermore,
the services and products of newly established startup companies and new entrants could raise competition
with the SoftBank Corp. Group’s services and products. Alternatively, it may be costly for the SoftBank Corp.
Group to develop the newly emergent services and products needed to demonstrate competitiveness.
The SoftBank Corp. Group may conduct internal realignment for purposes such as streamlining
overlapping business resources, speeding up decision-making, and generating greater synergies among
businesses. However, if the SoftBank Corp. Group is unable to sufficiently capture the expected benefits of
the realignment, problems such as trouble with and delays in services to be rolled out, adverse effects on
strategies and synergies, and disruptions associated with the realignment could arise.
b. Response to technology and business models
The SoftBank Corp. Group’s primary business domain is the information technology industry, which is subject

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Risk Factors

to rapid changes in technology and business models. Notably, the field of generative AI has been evolving
dramatically and has significantly impacted existing business models. The SoftBank Corp. Group is constantly
undertaking measures such as surveying the latest technology and market trends, conducting verification trials
to introduce services with highly competitive technologies, and considering alliances with other companies.
However, there are no assurances that the development of new technologies will proceed on time or results
will be delivered as planned, or that common standards or specifications will be established and commercial
viability will be achieved. Even if the aforementioned measures are undertaken, the SoftBank Corp. Groupmay be unable to develop or introduce outstanding services, technologies and business models in keepingwith market trends due to the inability to appropriately adapt to changes in the market environment in atimely manner, such as the emergence of new technologies and business models, or due to the inability
to deploy equipment and facilities rapidly and efficiently. In this case, the SoftBank Corp. Group’s service
offerings could lose competitiveness in the market, possibly curtailing the number of subscribers that the
SoftBank Corp. Group is able to acquire or retain, or reducing ARPU.
c.	Leakage or inappropriate use of information and inappropriate use of products and services
supplied by the SoftBank Corp. Group.
In its business operations, the SoftBank Corp. Group handles customer information (including personal
information) and other confidential information. The SoftBank Corp. Group strives to build a framework
to protect and manage information assets appropriately, including the appointment of a Chief Information
Security Officer and education and training sessions on information security for officers and employees.
However, this information could be leaked, lost, or involved in a similar incident, either intentionally or
accidentally by the SoftBank Corp. Group (including officers and employees of the SoftBank Corp. Group andpeople related to subcontractors), or through a malicious cyber-attack, hacking, computer virus infections, orother form of unauthorized access or other means by a third party.
Moreover, if the products and services supplied by the SoftBank Corp. Group are used inappropriately forcrimes and so forth such as fraud and the like, it could impair public trust in the SoftBank Corp. Group andthe SoftBank Corp. Group’s credibility.
Such an occurrence could reduce the SoftBank Corp. Group’s competitiveness, and give rise to significant
costs to the SoftBank Corp. Group for payment of damages and modification of security systems, in addition
to having an adverse impact on the SoftBank Corp. Group’s credibility or corporate image and making it
difficult to acquire or retain customers.
Furthermore, on October 1, 2023, LY Corporation completed an intra-group reorganization involving
mainly Z Holdings Corporation as the surviving company and two of its core wholly owned subsidiaries, LINE
Corporation and Yahoo Japan Corporation, and its trade name was changed from Z Holdings Corporation
to LY Corporation. LY Corporation is working to develop and strengthen a framework to ensure the efficientand proper functioning of its group companies’ overall data governance. While such efforts will be continued,
if the countermeasures and measures to strengthen governance fail to function effectively, this could lead toadministrative sanctions on the SoftBank Corp. Group from the authorities, impairment of public trust in the
SoftBank Corp. Group, a decrease in demand for the SoftBank Corp. Group’s services, the formulation andimplementation of additional countermeasures, or the occurrence of data leaks.
Furthermore, LY Corporation has submitted reports concerning the incident of unauthorized accessit announced on November 27, 2023 to the Ministry of Internal Affairs and Communications (MIC) and
the Personal Information Protection Commission of Japan (PPC). LY Corporation received administrative
guidance from MIC on March 5 and April 16, 2024, and it received a recommendation and request for a

SoftBank Group Report 2024

report, etc. from PPC on March 28, 2024. Currently, LY Corporation is implementing measures in responseto this administrative guidance and recommendation. It submitted a report regarding measures to prevent a
recurrence, etc. to MIC on April 1, 2024, and a report summarizing the implementation status of measures
to prevent a recurrence to PPC on April 26, 2024, and is moving forward with these measures. However,if the measures of LY Corporation and the SoftBank Corp. are judged to be inadequate or insufficient, this
could lead to impairment of trust in the SoftBank Corp. Group, a decrease in demand for the SoftBank Corp.
Group’s services or other such consequences. Such outcomes could have an impact on the SoftBank Corp.
Group’s businesses.
d. Consignment of operations
The SoftBank Corp. Group consigns in whole or part to subcontractors customer sales activities, acquisition
and retention of customers, and telecommunications network construction and maintenance for various
services and products, along with the execution of other related operations. In addition, the SoftBank Corp.
Group’s information search services make use of other companies’ search engines and paid search advertising
distribution systems. While the SoftBank Corp. Group strives to reduce risks in the supply chain, if these
subcontractors (including their directors and employees, or related parties) are unable to execute operations
in line with the SoftBank Corp. Group’s expectations, or if a human rights infringement-related issue occurs,such as a case where the information of the SoftBank Corp. Group’s or its customers is obtained withoutauthorization, it could have an impact on the SoftBank Corp. Group’s business.
Moreover, any damage to the credibility or corporate image of these subcontractors as a result of the kindof incident described above would also have an impact on the SoftBank Corp. Group’s credibility or corporate
image. Furthermore, if these subcontractors should fail to comply with laws and regulations, the SoftBank
Corp. Group could receive a warning or administrative guidance from the regulatory authorities, or beinvestigated for non-fulfillment of its supervisory responsibility, and the SoftBank Corp. Group’s credibility or
corporate image could deteriorate as a result, making it difficult to acquire and retain customers.
e. Service disruptions or decline in quality due to faults in related systems and other factors
In the provision of various services by the SoftBank Corp. Group, including telecommunications networks and,systems for customers such as, Yahoo! JAPAN, LINE and PayPay, there is a possibility that a major problem could
occur if the SoftBank Corp. Group were to become unable to continuously provide the services, or were to
suffer a decline in the quality of the services, due to human error or serious problems with equipment or systems(including factors due to natural disasters and other unpredictable events), or cyber-attack, hacking or otherform of unauthorized access or other causes by a third party. The SoftBank Corp. Group has built redundancy
into its networks, along with clearly defining restoration procedures in preparation for systems faults and otherincidents. In the event of a system fault or other incident, the SoftBank Corp. Group conducts restoration
activities with appropriate capabilities in place, such as setting up an Incident Response Headquarters according
to the scale of the incident. Even with these measures in place, the SoftBank Corp. Group may be unable to
avoid disruptions of services or declines in quality. If such disruptions of services or declines in quality were to
become widespread or significant time were required to restore services, the SoftBank Corp. Group’s credibility
or corporate image could deteriorate, making it difficult to acquire and retain customers.
f. Economic security
In accordance with the Act on the Promotion of Ensuring National Security through Integrated
Implementation of Economic Measures (hereinafter, the “Economic Security Promotion Act”), the SoftBank

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Risk Factors

Corp. and LY Corporation were designated as specified social infrastructure providers (core infrastructure
providers) in the telecommunications business on November 16, 2023. From May 17, 2024, this new
regulatory framework became effective. If the SoftBank Corp. or LY Corporation fail to comply with anational government review mandated by the Economic Security Promotion Act, the authorities may impose
administrative measures against them, such as recommendations or orders for business improvement orsuspension. These administrative measures may potentially cause temporary business suspensions, delays,or additional capital expenditures, as well as extra measures and costs, and impairment of public trust in the
SoftBank Corp. Group. Such outcomes could have an impact on the SoftBank Corp. Group’s businesses,
financial position, and results of operations.
(4) Arm businessArm’s operations primarily consist of licensing semiconductor intellectual property (IP), including the design ofenergy-efficient microprocessors and associated technologies. Arm licenses its CPU and related technologies
to semiconductor companies to design into computer chips. These chips are built into end products such as
smartphones, digital TVs and electronics for cars, by systems companies. Arm’s revenue includes licensing feesfor Arm’s technology, and royalty received on chips with Arm’s products that the licensees have shipped. The
material risks at Arm are stated in subsections a. through j. below.
a. Change in the industry business dynamic
Demand for Arm’s technology and services is largely dependent on the semiconductor and electronics
industries, which are volatile and intensely competitive. The revenue Arm generates from licensing activities
is also largely dependent on the rate at which semiconductor and systems companies develop and adopt
new generations of Arm’s products, which is affected by the demand for these companies’ chips and otherproducts. Decreasing demand from systems companies for chips based on Arm’s products would directly andadversely affect the amount of royalty revenues Arm receives.
Arm’s success depends substantially on the acceptance of its products and services by semiconductor andsystems companies. There are competing architectures in the market and there is no certainty that the market
will continue to accept Arm’s products.
The semiconductor and electronics industries have also become increasingly complex and subject toincreasing design and manufacturing costs. Many of Arm’s customers utilize third-party vendors for electronic
design automation tools and the manufacture of their semiconductor designs. Arm works closely with thosethird parties to ensure that its technology is compatible with their design tools and manufacturing processes.
However, if Arm fails to optimize its products appropriately or if Arm’s access to such tools and processes ishampered, then Arm’s products may become less desirable.
In order to mitigate against these risks, Arm’s management team regularly reviews its strategy andlong-term product development plans to test that Arm is developing products to meet future needs. Armworks with many partners and companies in the semiconductor and electronics industries and is well
positioned to detect any change and act accordingly.
b. Competition
The market for Arm’s products is intensely competitive and characterized by rapid changes in design andmanufacture technologies, end-user requirements, industry standards, and new products. Arm anticipatescontinued challenges from current and new competitors, including established technologies, such as the x86
architecture, and free, open-source technologies, such as the RISC-V architecture.

SoftBank Group Report 2024

Arm’s competitors may devote greater resources to the development, promotion and sale of products andservices, they may offer lower pricing and different customer engagement models, and their performance,features and product quality may be more desirable than those of Arm. Arm may therefore have to invest
substantial resources to further develop its ecosystem that allows it to compete with alternative architectures.
To remain competitive, Arm must continue to innovate and develop new products and services, as well as
enhancements to existing products and services, in response to expressed or anticipated customer demand
and market opportunities. If Arm is unable to anticipate or react to these competitive challenges, itscompetitive position could weaken.
Arm mitigates against these risks by working closely with leading semiconductor companies. Arm’s
established ecosystem includes many software and chip design engineers who understand how to build Armbased chips and write software optimized for Arm processors. Arm invests in this ecosystem to help further
reduce the total cost of developing and maintaining a portfolio of Arm-based chips.
c. Customer concentration
A significant portion of Arm’s total revenue is generated from a limited number of key customers. As a resultof this customer concentration, Arm is particularly susceptible to adverse developments affecting its key
customers and their respective businesses.
In order to mitigate against this risk, Arm typically develops multiple processors each year, reducing theimpact of a customer deciding not to move forward with Arm.
d. Fragmentation of the global market
The global market for Arm’s products may be impacted by geopolitical factors. A shift towards geopolitical
rivalry could lead to the fragmentation of the global semiconductor market, as certain countries want more
end-to-end control of architecture, leading to increased architectural fragmentation and a reduced role for a
global architecture. For Arm, this could lead to increased costs to support region specific products, reduced
revenue as a result of lost investment in territories that no longer use Arm products and loss of potential
markets and future licensing opportunities.
Arm mitigates against this risk by working with trade authorities to reduce the risk of any impact of new
trade barriers and reviewing its strategy to ensure that it is developing products in line with the future needsof the industry.
e. Concentration on China
A significant portion of Arm’s revenues are derived from Chinese semiconductor companies and original
equipment manufacturers, or OEMs, and from non-Chinese semiconductor companies and OEMs thatutilize Arm’s products in chips and end products sold into China. A failure of Arm to maintain China-sourced
revenues, access new and existing markets in China or gain traction for new business areas in China, or aloss of Arm’s market share in China, could materially and adversely affect Arm’s results of operations andcompetitive position.
China is a significant source of semiconductor industry revenues. However, the near-term growth prospectsof the Chinese semiconductor industry and related industries are unclear due to the uncertain effects of tradeand national security policies, continued elevated levels of indebtedness, and related policies. A prolonged
downturn or slow recovery in the Chinese semiconductor industry or economy generally could materially andadversely affect Arm.
In addition, political actions including trade protection and national security policies of the U.S. and Chinese

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Risk Factors

governments currently do and could in the future limit or prevent Arm from transacting business in China orwith Chinese customers or suppliers.
Arm mitigates against these risks by ensuring that any U.S/China policy changes are kept under close
review. In addition, Arm regularly reviews Arm China’s*2 sales pipeline and any requests from Arm China
to deviate from standard licensing contracts in order to monitor and manage developments in the Chinese
market.

regarding the outcome of the litigation or how the litigation will affect Arm’s relationship with Qualcomm,which is currently a major customer of Arm. Arm’s involvement in such litigation could cause significant
reputational damage in the industry, in its relationship with Qualcomm and/or other third-party partners.
Arm mitigates against these risks by closely monitoring developments in relevant jurisdictions in relation topatents, litigation trends and incidence of claims.

*2 Arm China is a joint venture between SBG’s subsidiary and Chinese investors, through which Arm accesses the Chinese market.

h. Infringement of proprietary rights
Arm has in the past been and it may in the future be subject to claims by third parties alleging infringement,
misappropriation or other violation of third-party intellectual property rights. Under Arm’s customer
agreements, it agrees in some cases to indemnify customers if a third party files a claim asserting that its
products infringe such third party’s intellectual property rights. Such claims can result in costly andtime-consuming litigation, require Arm to enter into royalty or licensing arrangements, subject Arm todamages or injunctions restricting the sale of its products, result in invalidation of a patent or family of
patents, require Arm to refund license fees to its customers or to forgo future payments or require Arm toredesign or rebrand certain of its products.
Arm mitigates against these risks by designing and implementing its products without the use of
intellectual property belonging to third parties, except under strictly maintained procedures and with thebenefit of appropriate license rights.

f. Changes in business model
Arm has in the past made and may in the future make changes to its business model. Arm can provide
no assurance that customers will accept these changes. In such case, Arm may not realize the anticipatedfinancial benefits of such changes as anticipated, on the expected timeline or at all.
In addition, increases in the number or value of licenses signed in the future may not materialize in thesame way or at all under a new business model and, therefore, licensing revenue and royalty revenue may belower than expected. Further, the use of a new business model may have unexpected consequences for Arm,
including making Arm’s products less attractive to customers.
Arm actively considers the impact of next generation technology adopted by market participants, whichmight result in Arm exploring new markets and/or different solutions for existing and prospective customers.
To that end, Arm has begun allocating resources and maintains dialogues with ecosystem partners to explore
the viability of new products including, without limitation, new products in its IP portfolio, as well as solutions
beyond individual IP designs such as compute subsystems, chiplets and complete end chip solutions. To theextent that Arm pursues entry into new markets or offerings of different solutions, such enterprise may be
unsuccessful for any number of reasons. It may also result in Arm competing with certain existing customers,
which may result in such customers seeking alternative architectures or products from competitors.
In order to mitigate against these risks, Arm undertakes extensive reviews in relation to its new businessmodels, including undertaking discussions with its customers in advance of implementing key changes, inorder to ensure that any risks are identified and managed appropriately.
g. Protection of IP rights
Arm’s success and ability to compete depends significantly on protecting its intellectual property rights. Arm
primarily relies on patent, copyright, trade secret and trademark laws, trade secret protection and contractual
protections, such as confidentiality, invention assignment and license agreements with its employees,
customers, partners and others to protect its intellectual property rights. The steps Arm takes to protect its
intellectual property rights may be inadequate. Arm also may not be able to obtain desired patents. Arm’s
exposure to different legal jurisdictions may also impact its ability to exercise its contractual and other rights
around intellectual property in such jurisdictions. If Arm is unable to successfully navigate the relevant legal
and regulatory environment and/or enforce its intellectual property and/or contractual rights in relevant
jurisdictions, its business, results of operations, financial condition and prospects could be materially andadversely impacted.
Litigation has been and may be necessary to enforce Arm’s patents and other intellectual property rights.
Any such litigation could be costly and would divert the attention of management and technical personnel
from normal business operations.
Arm is involved in pending litigation, including but not limited to lawsuits with Qualcomm, Inc. andQualcomm Technologies, Inc. (together “Qualcomm”) and Nuvia, Inc. Arm can provide no assurances

SoftBank Group Report 2024

i. Brand and reputation
Arm’s brand and reputation are critical factors in its relationships with customers, employees, governments,
suppliers, and other stakeholders. Arm’s reputation can be impacted by catastrophic events, incidents
involving unethical behavior or misconduct, product quality, security or safety issues, allegations of legal
noncompliance, internal control failures, corporate governance issues, security incidents, workplace incidents,
climate issues, the use of its technology for illegal or objectionable applications, marketing practices, theconduct of suppliers or representatives, and other issues that result in adverse publicity. Additionally, concerns
about Arm’s practices related to artificial intelligence, or AI, and machine learning, or ML, or the ultimate
uses of Arm’s products in conjunction with AI and ML technologies, even if unfounded, could damage
Arm’s reputation. If Arm fails to respond quickly and effectively to these corporate crises and other similar
threats, the ensuing negative public reaction could significantly harm its brand and reputation. Arm’s brandand reputation may also be damaged by the actions of third parties that are imputed to Arm, for example,
through Arm China.
Arm mitigates against these risks by investing in the verification and validation of its products. Arm has
rigorous quality assurance and verification and validation processes to reduce the risk of faults or bugs. Arm
regularly gathers feedback from its customers and partners to determine whether the perception of Arm ischanging, and ensure that corrective action can be taken early if customers are becoming less satisfied with its
products or behavior.
j. Export restrictions and trade barriers
Arm’s headquarters are in the U.K., and it currently operates in jurisdictions around the world, including
the U.S., China, India, South Korea, Japan, Taiwan and Europe. Risks associated with these international
operations include exposure to political, economic and financial conditions and expected and unexpectedchanges in legal and regulatory environments.
Arm is subject to governmental export and import requirements that could subject Arm to liability or restrict

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Risk Factors

its ability to license its products. If the U.S. Department of Commerce were to broaden U.S. export restrictions
on foreign-origin items, this could subject more of Arm’s products to U.S. export controls and restrictions.
Furthermore, if the U.S. Government implemented expanded economic sanctions on specific countries orregions where certain customers and trading partners are based, that could impact Arm’s freedom to license
its products to designated countries or entities.
Trade relations between countries where Arm does business or where Arm’s customers have end customers
have recently been volatile, and the U.S. government has imposed export sanctions on certain of Arm’s
trading partners and entities. These measures may increase costs and/or reduce distribution in key markets.
Arm mitigates against these risks by maintaining strong relationships with the U.S., U.K. and EU export
control authorities in order to effectively monitor any policy and regulatory developments.
(5) Othersa. Compliance
The Company conducts investment activities pursuant to laws and regulations in each country. If theCompany and its portfolio companies (including officers and employees) conduct activities in breach of thoselaws and regulations, regardless of whether they were aware of the breach or not, the Company and its
portfolio companies may be subject to administrative sanctions or legal measures. As a result, the credibility
and corporate image of the Company and its portfolio companies may be impaired, their contracts may becanceled by business partners, or a financial burden may be incurred. Furthermore, in countries and regions inwhich the Company and its portfolio companies conduct business activities, tax laws and regulations may be
newly introduced or amended, or their interpretation or enforcement may be revised, leading to additional tax
burdens. Views differing with those of tax authorities may also give rise to additional tax burdens.
The Company has established the SoftBank Group Code of Conduct, which applies to all officers andemployees, in order to go beyond compliance with laws and regulations and conduct corporate activities
based on a high ethical standard. The Company also works to strengthen the Group compliance structure andcarries out activities to increase the knowledge and awareness of officers and employees, such as training. In
addition, the legal departments collect information on new or revised laws and regulations, while receiving
advice from outside advisers.
b. 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 the intellectual propertyof subsidiaries and portfolio companies by a third party could have a negative impact on these companies’
business development and results of operations. On the other hand, if the Company and its portfolio
companies were to unintentionally infringe on intellectual property rights held by a third party, the Company
and such portfolio companies may be prevented from using the intellectual property or subjected to claims forcompensatory damages, license fees, and so forth from the third party.
In light of the importance of SBG’s brands in supporting sustained business growth, SBG strives tostrategically obtain trademarks worldwide, while evaluating the intellectual property activities and strategies
of subsidiaries and forming intellectual property partnerships with them. Through these and other efforts, SBG
aims to protect and utilize intellectual property throughout the Group as a holding company.

infringement of rights or benefits. These third parties may comprise shareholders, portfolio companies,business partners, and employees (including current and past shareholders and employees of portfolio
companies). Such lawsuits could hinder the Company’s investment activities or may impair the Company’s
corporate image, as well as create a financial burden.
d. Sustainability
The Company believes that it is crucial to take the lead and implement essential activities to address
sustainability. However, the Company’s sustainability activities may diverge significantly from the expectationsof internal and external stakeholders, including investors; for example, investors may judge that sustainability
factors are not sufficiently integrated into the Company’s governance structure and management strategy, orthat the Company’s measures are inadequate for addressing identified material issues related to sustainability,
especially issues with higher priorities such as responsible AI, climate change, or human capital. In these cases,
the Company’s evaluation by stakeholders may deteriorate and adversely affect its investment and financing
activities.
In addition, the Company may be unable to adequately assess the risks and opportunities associatedwith the sustainability aspects of portfolio companies. In these cases, portfolio companies may be unable todevelop their businesses as expected by the Company. Additionally, if sustainability-related regulations over
the Company’s investment activities and its portfolio companies’ business activities are tightened, the pace ofinvestment may slow down or the cost to address such regulations may increase.
The SoftBank Corp. Group has a Sustainability Committee, which is chaired by the Chief Sustainability
Officer (“CSusO”) appointed by the Board of Directors. The Sustainability Committee regularly discusses
sustainability-related issues and countermeasures, along with strengthening sustainability-related response
measures and disclosures. In investment activities, each investment entity analyzes the risks and opportunities
associated with the sustainability aspects of portfolio companies and carries out comprehensive investment
evaluations.
e. Information security
Amid the rising threat of cyber-attacks around the world in response to recent international conditions, theCompany and its portfolio companies may be unable to completely prevent cyber-attacks, hacking, computervirus infections, or other forms of unauthorized access or internal misconduct. The inability to prevent such
events could lead to the leakage, alteration, or loss of information, or cause other such security incidents.
Such occurrences may impair the credibility and corporate image of the Company and its portfolio companies
and may hinder their business activities. The Company and its portfolio companies may also incur financial
losses or additional cost outlays or other responses may be needed to address such occurrences.
The Chief Information Security Officer (CISO), who is appointed by the Board of Directors, is responsible forthe information security of the Company. Under the leadership of the CISO of SBG, the Company endeavors
to protect information assets by identifying vulnerabilities and risk factors that could threaten information
security and by implementing information security measures focused on organizational, physical, technical,
and human dimensions according to risk.

c. Litigation
The Company faces the possibility of lawsuits by third parties claiming compensatory damages for the alleged

SoftBank Group Report 2024

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Financial Section

For consolidated financial statements and notes, see “Financial Report 2024” on our website.

SoftBank Group Report 2024

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

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

Gain (loss) on investments

Income before income tax(Billions of yen)
8,000(Billions of yen)
6,000

Net income attributable to owners of the parent / Basic EPS■■ Net income attributable to owners of the parent (left) ■ Basic EPS (right)

7,529.0(Billions of yen)
6,000

5,670.5

(Yen)
4,500

4,988.0
4,000

4,000

2,000

2,000

2,619.61

3,000

4,000

0

-835.1-1,410.2-559.4

’19

’20

0

-478.50-469.1-869.6-3,434.7-4,000-227.6

57.8

50.0

0

’22

’23

’19

’20

’21

’23

’22

FY2023

0.3

’20

0

-170.99-1,500

’21

’22

’23

(FY)

FY2023Gain (loss) on investments

+¥

’19

(FY)

-652.37-970.1-1,708.0-2,000(FY)

FY2023-1,018.58-961.6-2,000’21

1,500

Income before income tax+¥

tn YoY

0.5

Net income attributable to owners of the parent+¥

tn YoY

0.7

tn YoY

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

Total assets■■ Total equity attributable to owners of
the parent (left)(Billions of yen)(Billions of yen)

60,00012,00045,750.5

47,544.7

45,00043,936.4■ Ratio of equity attributable to owners of
the parent to total assets (right)(%)

11,162.1 40
10,213.1

46,724.2

9,975.7
9,029.8

9,000

30

37,257.3
30,0006,000

15,0003,000

5,913.6

23.9
22.3

21.0

20

20.6

15.9

0

10

0

0

’19

’20

’21

FYE2023

’23

’19

(FYE)

’20

’21

’23

’22

(FYE)

FYE2023

Total assets+
SoftBank Group Report 2024

’22

6.3

% YoY

Total equity attributable toowners of the parent

+

23.6

% YoY

Ratio of equity attributable toowners of the parent to total assets

23.9

%

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

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

(Millions of yen)

Net sales �����������������������������������������������������������������������������������������������������������������������������������������������
Operating income*1 �������������������������������������������������������������������������������������������������������������������������������
Income before income tax ���������������������������������������������������������������������������������������������������������������������
Gain (loss) on investments*1 ���������������������������������������������������������������������������������������������������������������
Net income attributable to owners of the parent �����������������������������������������������������������������������������������
Total assets �������������������������������������������������������������������������������������������������������������������������������������������
Total equity attributable to owners of the parent �����������������������������������������������������������������������������������
Interest-bearing debt*2 �������������������������������������������������������������������������������������������������������������������������
Net interest-bearing debt*3 �������������������������������������������������������������������������������������������������������������������
Net cash provided by operating activities �����������������������������������������������������������������������������������������������
Net cash used in investing activities �������������������������������������������������������������������������������������������������������
Net cash provided by 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*4(Units)Basic EPS ����������������������������������������������������������������������������������������������������������������������������������
Diluted EPS ������������������������������������������������������������������������������������������������������������������������������
Equity per share attributable to owners of the parent ����������������������������������������������������������������
Dividend per share ��������������������������������������������������������������������������������������������������������������������

%
%
%
¥
¥
¥
¥

(Units)OthersNumber of shares outstanding (excluding treasury stock) ���������������������������������������������������������� ’000
Number of subsidiaries ���������������������������������������������������������������������������������������������������������������������������
Number of associates �����������������������������������������������������������������������������������������������������������������������������
Number of employees (consolidated basis) ���������������������������������������������������������������������������������������������

SoftBank Group Report 2024

FY2013

FY2014FY2015FY2016FY2017

6,666,651
1,077,044
924,049−
520,250
16,690,127
1,930,441
9,170,053
7,059,286
860,245(2,718,188)
2,359,375
524,433
1,963,490

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

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
13,617,255
1,088,623(4,484,822)
4,626,421
1,151,548
3,334,650

4.4
29.5
11.6

3.5
28.0
13.5

2.3
17.4
12.6

6.3
46.0
14.6

3.7
23.7
16.6

218.48217.34812.1720.00

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

1,188,456
756
105
70,336

1,189,197
769
120
66,154

1,146,900
739
122
63,591

1,089,282763
130
68,402

1,089,498
1,141
385
74,95273

Table of Contents

Who We Are

Message from Our CEO(Millions of yen)

Net sales ���������������������������������������������������������������������������������������������������������������
Operating income*1 �����������������������������������������������������������������������������������������������
Income before income tax �������������������������������������������������������������������������������������
Gain (loss) on investments*1 �������������������������������������������������������������������������������
Net income attributable to owners of the parent ���������������������������������������������������
Total assets �����������������������������������������������������������������������������������������������������������
Total equity attributable to owners of the parent ���������������������������������������������������
Interest-bearing debt*2 �����������������������������������������������������������������������������������������
Net interest-bearing debt*3 �����������������������������������������������������������������������������������
Net cash provided by operating activities ���������������������������������������������������������������
Net cash provided by (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*4(Units)Basic EPS ��������������������������������������������������������������������������������������������������
Diluted EPS ����������������������������������������������������������������������������������������������
Equity per share attributable to owners of the parent ��������������������������������
Dividend per share ������������������������������������������������������������������������������������

%
%
%
¥
¥
¥
¥

(Units)OthersNumber of shares outstanding (excluding treasury stock) �������������������������� ’000
Number of subsidiaries �������������������������������������������������������������������������������������������
Number of associates ���������������������������������������������������������������������������������������������
Number of employees (consolidated basis) �������������������������������������������������������������

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

FY2018FY2019FY2020

FY2021

FY2022

FY2023

6,093,548
2,073,636
1,682,673−
1,411,199
36,096,476
7,621,481
15,685,106
12,056,031
1,171,864(2,908,016)
2,202,291
523,868
3,858,518

5,238,938−
50,038(1,410,153)(961,576)
37,257,292
5,913,613
14,272,208
11,027,565
1,117,879(4,286,921)
2,920,863(489,503)
3,369,015

5,628,167−
5,670,456
7,529,006
4,987,962
45,750,453
10,213,093
19,547,976
14,016,812
557,250(1,468,599)
2,194,077
1,293,710
4,662,725

6,221,534−(869,562)(3,434,742)(1,708,029)
47,544,670
9,975,674
22,323,580
17,100,637
2,725,450(3,018,654)
602,216
506,276
5,169,001

6,570,439–(469,127)(835,059)(970,144)
43,936,368
9,029,849
20,315,191
13,589,693
741,292
547,578
191,517
1,756,152
6,925,153

6,756,500−
57,801(559,350)(227,646)
46,724,243
11,162,125
21,362,031
14,885,247
250,547(841,461)(606,222)(738,279)
6,186,874

4.2
22.0
21.1

(2.6)
(14.2)
15.9

12.0
61.9
22.3

(3.7)
(16.9)
21.0(2.1)(10.2)
20.6

(0.5)
(2.3)
23.9

634.08628.273,380.33
22.00(478.50)(485.33)
2,619.32
44.00

2,619.61
2,437.29
5,588.80
44.00(1,018.58)(1,025.67)
5,755.92
44.00(652.37)(662.41)
5,888.94
44.00(170.99)(174.20)
7,479.43
44.00

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

2,067,996
1,475
455
80,9091,738,517
1,408
535
58,786

1,646,790
1,316
565
59,721

1,463,048
1,280
573
63,3391,465,925
1,254
571
65,352

Notes: 1. The Company adopted IFRIC 21 “Levies” in FY2014. The figures for FY2013 have been retrospectively adjusted.
2. As of June 1, 2015, GungHo Online Entertainment, Inc. (“GungHo”) no longer qualified as a subsidiary and became an equity method associate. Accordingly, GungHo’s net income and loss for the period from April 1, 2015 to June 1, 2015 are presented as discontinued
operations. Its net income and loss for FY2014 were revised retrospectively and presented under discontinued operations. Furthermore, as of August 16, 2016, GungHo no longer qualified as an equity method associate.
3. The Company sold all of its shares in Supercell Oy (“Supercell”) to an affiliate of Tencent Holdings Limited on July 29, 2016. Accordingly, Supercell’s net income until July 29, 2016 is presented as discontinued operations. Net income of Supercell for FY2015 was revised
retrospectively and presented under discontinued operations.
4. The Company adopted IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” in FY2018, and IFRS 16 “Leases” in FY2019. The information for each previous fiscal year is not restated.
5. Sprint and Brightstar Global Group Inc. (“Brightstar”) ceased to be a subsidiary of the Company in FY2020. Operating results of Sprint and Brightstar are excluded from FY2018 and FY2019, respectively.
*1 From FY2020, “operating income” is no longer presented and “gain (loss) on investments” is newly presented. Information for FY2019 is restated in the same manner.
*2 Includes lease liabilities from FY2019. Deposits for the banking business of PayPay Bank Corporation are not included in interest-bearing debt.
*3 Calculated by subtracting cash position (cash and cash equivalents + short-term investments recorded as current assets + bond investments (excluding those of PayPay Bank Corporation)) from the presented interest-bearing debt
*4 Basic EPS and diluted EPS are calculated based on net income attributable to owners of the parent.
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.

SoftBank Group Report 2024

74

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

NAV & LTVFY2023

FY2022June 30

September 30

December 31

March 31

June 30

September 30

December 31

March 31

Equity value of holdings (asset-backed finance adjusted)�����������������

21.7

19.7

16.9

15.9

16.9

18.4

21.7

30.3

Alibaba �����������������������������������������������������������������������������������������������

4.5

3.0

2.0

0.7

0.0

0.0

0.0

0.0

SoftBank Corp. �����������������������������������������������������������������������������������

2.4

2.2

2.3

2.4

2.4

2.7

2.8

3.2

SVF1 ���������������������������������������������������������������������������������������������������

3.4

3.3

2.8

2.8

3.0

3.3

3.2

3.4

SVF2 ���������������������������������������������������������������������������������������������������

4.5

4.2

3.7

3.5

4.0

3.9

4.1

4.4

LatAm Funds ���������������������������������������������������������������������������������������

1.0

1.0

0.9

0.8

0.9

0.9

0.9

1.0

T-Mobile �����������������������������������������������������������������������������������������������

1.0

1.2

1.2

1.2

1.2

1.3

1.6

1.8

Deutsche Telekom �������������������������������������������������������������������������������

0.2

0.1

0.2

0.3

0.2

0.2

0.3

0.3

Arm �����������������������������������������������������������������������������������������������������

3.0

3.1

2.6

2.9

3.7

4.3

6.9

14.4

(Trillions of yen)

Others �������������������������������������������������������������������������������������������������

1.8

1.6

1.3

1.3

1.4

1.7

1.8

1.9

Net interest-bearing debt (asset-backed finance adjusted)���������������

3.1

3.0

3.1

1.7

1.4

1.9

2.5

2.6

Consolidated net interest-bearing debt�������������������������������������������������

17.9

14.1

13.5

13.6

14.7

14.7

14.8

14.9

Net interest-bearing debt at self-financing entities, etc. �����������������������

5.9

5.6

5.4

5.4

5.8

4.7

4.7

4.5

Other adjustments �������������������������������������������������������������������������������

8.9

5.5

5.0

6.5

7.6

8.0

7.5

7.8

NAV�������������������������������������������������������������������������������������������������������

18.5

16.7

13.9

14.1

15.5

16.4

19.2

27.8

11,64010,791

9,472

9,656

10,616

11,196

13,11918,961

14.5

15.0

18.2

11.0

8.0

10.6

11.5

8.4

Share price (yen) �������������������������������������������������������������������������������������

5,235

4,900

5,644

5,182

6,773

6,335

6,293

8,962

Total number of shares issued (excluding treasury stock) (thousands)���������

1,590,724

1,549,888

1,462,458

1,463,048

1,464,039

1,465,716

1,465,796

1,465,925

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

136.68144.81132.70133.53144.99149.58141.83151.41(Yen)

NAV per share���������������������������������������������������������������������������������������
(%)

LTV���������������������������������������������������������������������������������������������������������

(Reference)

Note: For the details of NAV and LTV, see pages 20-21.

SoftBank Group Report 2024

75

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Management’s Discussion and Analysis of Results of Operations,
Financial Position, and Cash Flows
As of June 21, 2024

Results of Operations
1. Listing of Arm on the Nasdaq Global Select Market– Arm was listed on the Nasdaq Global Select Market on September 14, 2023. In the IPO, a wholly owned subsidiary of the Company disposed of 102,500,000 American depositaryshares (ADSs), representing 10% of Arm’s outstanding ordinary shares,*1 and received proceeds of $5.12 billion.
– No gain on the disposal is recorded in the consolidated statement of profit or loss as Arm continues to be a subsidiary of the Company after the disposal. However, in the consolidated
statement of financial position, ¥674.4 billion ($4.65 billion), which represents the gain on disposal, was recorded as capital surplus.

2. Acquisition of T-Mobile 48.8 million shares for no additional consideration upon satisfaction of contingent consideration condition
The Company acquired 48.8 million shares of T-Mobile stock equivalent to $7.74 billion (¥1.1 trillion) for no additional consideration on December 28, 2023, following the satisfactionof the contingent consideration condition on December 22, 2023. This was part of the consideration the Company received for the merger between T-Mobile US and the Company’s
then-U.S. subsidiary Sprint, which closed on April 1, 2020.

3. Results highlights¥559.4 billion investment loss (¥835.1 billion loss for fiscal 2022)– ¥459.0 billion investment loss at Investment Business of Holding Companies•R ealized and unrealized valuation losses on Alibaba shares of ¥959.9 billion exceeded
an investment gain of ¥371.1 billion on T-Mobile shares.
		 Note: T he ¥959.9 billion realized and unrealized valuation losses on Alibaba shares were offset by a derivative gain of¥1,517.4 billion, which arose from prepaid forward contracts using Alibaba shares and is recorded separately as“derivative gain (excluding gain or loss on investments).”– ¥167.3 billion investment loss at SoftBank Vision Funds (excluding gains associated with
SVF’s investments in the Company’s subsidiaries)
		 Note: T he SoftBank Vision Funds segment recorded ¥724.3 billion gain on investments, which included gains associated with
SVF’s investments in Arm and other subsidiaries of the Company.

•U nrealized valuation losses from decreases in the fair values of investments, notably
including WeWork stocks and notes, were partially offset by the fair value increases of
select companies, such as ByteDance, Coupang, and DoorDash.
• S ince inception, the gross performance was a gain of $16.7 billion for SVF1 and a lossof $19.3 billion for SVF2.*2

		
Note: S ince Arm, SoftBank Corp., and other subsidiaries are consolidated, changes in the fair value of their shares are notrecorded in the Company’s consolidated statement of profit or loss.

SoftBank Group Report 2024

¥57.8 billion gain before income tax (improvement of ¥526.9 billion YoY)
		 reflecting the recordings of:– Finance cost of ¥556.0 billion– Foreign exchange loss of ¥703.1 billion due to the impact of the weaker yen. This
resulted from a net excess of U.S. dollar-denominated liabilities over its U.S. dollardenominated cash and cash equivalents and loans receivable, primarily within SBG– Derivative gain (excluding gain or loss on investments) of ¥1,502.3 billion, arising from again relating to prepaid forward contracts using Alibaba shares following a fall in
Alibaba’s share price, which offset the previously mentioned realized and unrealized
valuation losses on these shares¥227.6 billion net loss attributable to owners of the parent (improvement of¥742.5 billion YoY)
		 reflecting the recordings of:– Negative income tax of ¥151.4 billion (profit)– Net income attributable to non-controlling interests of ¥436.9 billion76

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

4. Continued monetization of assets and new investments
Monetization of assets– Raised $4.39 billion through prepaid forward contracts using Alibaba shares– Received proceeds of $5.12 billion through the disposal of 10% of Arm’s outstanding
shares in its IPO– Received proceeds totaling $6.33 billion from sales of investments by SVF,*3 after
adjusting for the proceeds from the sale of Arm shares to another subsidiary of theCompany, which were eliminated in consolidation

New investments– $1.50 billion for acquisition of investments by SVF,*3 net of investments in subsidiariesof the Company that were eliminated in consolidation– ¥348.8 billion primarily for strategic investments by SBG and its wholly owned
subsidiaries*4

5. Refinance of bonds
Completed refinance of USD-denominated NC6 undated hybrid notes
In April 2023, the Company issued domestic hybrid bonds totaling ¥222.0 billion,
followed by a hybrid loan*5 of ¥53.1 billion in May 2023. These funds were used torefinance USD-denominated NC6 undated hybrid notes ($2.0 billion), with the first
voluntary call date in July 2023. In addition, in September 2023, the Company refinanced
domestic hybrid bonds (¥15.4 billion), coinciding with their first voluntary call date in thesame month.

Notes: Abbreviations for Management’s Discussion and Analysis of Results of Operations, Financial Position, and Cash FlowsThe fiscal year / Fiscal 2023: Twelve-month period ended March 31, 2024
The first quarter: Three-month period ended June 30, 2023
The second quarter: Three-month period ended September 30, 2023
The third quarter: Three-month period ended December 31, 2023
The fourth quarter: Three-month period ended March 31, 2024
The previous fiscal year / Fiscal 2022: Twelve-month period ended March 31, 2023
The fiscal year-end: March 31, 2024
The previous fiscal year-end: March 31, 2023

SoftBank Group Report 2024

Refinance of domestic straight bonds
The Company redeemed domestic straight bonds of ¥399.9 billion that matured in March2024 and issued domestic straight bonds of ¥550.0 billion to retail markets in the samemonth. The Company also issued domestic straight bonds of ¥100.0 billion to wholesalemarkets in April 2024 and domestic straight bonds of ¥550.0 billion to retail markets inJune 2024, and redeemed domestic straight bonds of ¥450.0 billion that matured in June2024.

*1 The calculation is based on the 1,025,234,000 company shares issued and outstanding on September 30, 2023.
*2 Gross amounts before deductions, such as third-party interests and taxes*3 The amounts recorded in the consolidated statement of cash flows*4 The amount comprises the investment outlay by SBG and its primary wholly owned subsidiaries (excluding investments in U.S. Treasury
Bonds), as accounted for under “Acquisition of investments” in the consolidated statements of cash flows, combined with the amount
paid to third-party shareholders in connection with the subsidiary acquisitions of Berkshire Grey, Inc. in July 2023 and Balyo SA in October
2023, net of cash and cash equivalents held by these companies.
*5 The hybrid loan is eligible for 50% equity treatment for the drawn down amount by Japan Credit Rating Agency, Ltd. and S&P Global
Ratings Japan Inc.

77

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Intragroup Transaction of Arm Shares and IPO of Arm
1. Intragroup transaction of Arm shares(2) Primary impact on consolidated financial statements(1) Transaction overview

SVF1 recorded an investment gain of $6.9 billion, derived from the discounted present value ofPrior to Arm’s initial public offering (the “IPO”), in August 2023, a wholly owned subsidiary

the Transaction Consideration of $15.1 billion as of August 2023, after deducting the investmentof the Company acquired substantially all of the ordinary shares of Arm held by SVF1

cost of $8.2 billion. Additionally, over the course of two years up to August 2025, SVF1 will(equivalent to 24.99% of Arm’s outstanding shares)* (the “Transaction”) for $16.1 billion

recognize investment gains from the difference between $16.1 billion and $15.1 billion.

(the “Transaction Consideration”). The Transaction Consideration was established by

In the SoftBank Vision Funds segment, a realized gain of ¥1,074,039 million ($7.4 billion),reference to the terms of a prior contractual arrangement between the parties. The

an unrealized loss of ¥189,817 million ($1.8 billion) (reclassified to realized gain recorded inTransaction Consideration is being paid in four installments, with the first installment of

the past fiscal years), and a loss of ¥76,902 million as the effect of foreign exchange$4.1 billion paid upon completion of the Transaction in August 2023, and the remaining

translation were recorded under gain on investments at SoftBank Vision Funds for fiscal

three installments to be paid over the course of two years up to August 2025. SVF1 used

2023. These investment gains were and will be eliminated in consolidation, as they resulted

the entire $4.1 billion received from the first installment to repay its borrowings. The

from an intragroup transaction of subsidiary shares.

proceeds from the second and subsequent installments will be used primarily to make

Income for the SoftBank Vision Funds segment is represented by the net amount,payments to limited partners, including the Company, in accordance with the allocation

calculated by deducting the gains attributable to third-party investors from the total

method specified in the Limited Partnership Agreement.

investment gains. The gains attributable to third-party investors are also reflected in the
consolidated statement of profit or loss, recorded as an increase in third-party interests in SVF.

Timing and amount of installments of the Transaction Consideration
Timing

1st

2nd

3rd

4th

August 2023

August 2024

February 2025

August 2025

Difference between segment information and the consolidated
statement of profit or loss

(Millions of yen)

SoftBank Vision Funds
Segment

Reconciliations

Consolidated
statement of profit
or loss

Gain/loss on investments at SoftBank Vision
Funds

724,341(891,631)(167,290)

Data”), both of which were previously spun out from Arm. The total consideration for theGain on investments in subsidiaries, etc.

891,631(891,631)–

intragroup transaction, including the acquisition of interests in these two companies, was

Including gain on investments in Arm
sharesLoss on investments other than in
subsidiaries, etc.

807,320(807,320)–(167,290)–(167,290)(390,137)–(390,137)

Amount$4.1 billion$4.1 billion$4.1 billion$3.8 billion

In addition to the Transaction, an agreement was also reached to acquire interests in
Arm Technology (China) Co., Ltd. (“Arm China”) and Treasure Data, Inc. (“Treasure$16.4 billion.
* Following the completion of Arm’s pre-IPO corporate reorganization, SVF1 continued to hold one ordinary share of Arm
Holdings plc, which wholly owns Arm Limited.

SoftBank Group Report 2024

Change in third-party interests in SVF

78

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Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

2. IPO of Arm(2) Primary impact on consolidated financial statements(1) Transaction overview

The Company did not recognize a gain on disposal in its consolidated statement of profit or

Arm was listed on the Nasdaq Global Select Market on September 14, 2023, under theloss as Arm remains a subsidiary of the Company after the disposal. However, ¥674,370

ticker symbol “ARM.” In the IPO, a wholly owned subsidiary of the Company disposed ofmillion ($4.65 billion), representing the gains on disposal, was recorded as capital surplus in

102,500,000 ADSs, representing 10% of Arm’s outstanding ordinary shares, at a price tothe consolidated statement of financial position. In the consolidated statement of cash

the public of $51.00 per ADS.

flows, proceeds of ¥745,082 million ($5.12 billion) from the partial sales of shares ofsubsidiaries to non-controlling interests were recorded under cash flows from financing
activities.
Since Arm continues to be a consolidated subsidiary of the Company, changes in the fairvalue of its shares are not recorded in the Company’s consolidated statement of profit orloss.

Acquisition of 48.8 Million T-Mobile Shares for No Additional Consideration Upon Satisfaction of Contingent Consideration Condition(1) Transaction overview(2) Primary impact on consolidated financial statements

The Company received the right (the “Contingent Consideration”) to acquire 48,751,557

Upon the closing of the Merger on April 1, 2020, the Company recorded the fair value ofshares of T-Mobile stock (the “Shares”) for no additional consideration, contingent upon the

the Contingent Consideration of $1,825 million (¥196,313 million) as part of the gains on

satisfaction of a certain condition, which was part of the consideration under the Letterthe sale of Sprint in the consolidated statement of profit or loss and as derivative financial

Agreement, dated as of February 20, 2020, by and among T-Mobile US, Inc., SBG, andassets in the consolidated statement of financial position. Subsequently, changes in its fair

Deutsche Telekom AG (“Deutsche Telekom”) in connection with the merger between

value have been recorded under gains and losses on investments at Investment Business of

T-Mobile US, Inc. and the Company’s then-U.S. subsidiary Sprint, which closed on April 1,

Holding Companies as derivative gains and losses on investments in the consolidated

2020 (the “Merger”). Following the satisfaction of the Contingent Consideration condition

statement of profit or loss.

on December 22, 2023, the Company acquired the Shares (equivalent to $7,744 million or¥1,098,435 million) for no additional consideration on December 28, 2023.

On December 28, 2023, the acquisition date of the Shares, the Company derecognized
the abovementioned derivative financial assets (fair value as of that date: $7,744 million(¥1,098,435 million)) and recorded the acquired Shares as investment securities at the sameamount in the consolidated statement of financial position. In the consolidated statement of
profit or loss for fiscal 2023, the Company recorded a derivative gain on investments of¥227,012 million as part of investment gains at Investment Business of Holding Companies.
In addition, also as part of investment gains at Investment Business of Holding Companies,
the Company recorded an unrealized gain of ¥154,538 million on valuation of T-Mobile
shares, including preexisting holdings. Of this gain, ¥31,440 million is attributed to the
Shares received on December 28, 2023.

SoftBank Group Report 2024

79

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Wework’s Filing for Protection Under Chapter 11 of the United States Bankruptcy Code(Millions of yen)

On November 6, 2023, WeWork Inc. (“WeWork”), a portfolio company of SVF, filed forConsolidated statement of profit and loss

protection under Chapter 11 of the United States Bankruptcy Code. The following table

Account

elucidates the gains and losses associated with the investment and financial support

Loss on investments at
SoftBank Vision Funds(115,796)

Loss on equity method
investments/Other loss

(5,082)

WeWork convertible bonds with a face value of $0.46
billion held by SVF2

Loss on investments at
SoftBank Vision Funds(25,924)

WeWork unsecured notes with a face value of $1.65
billion, previously held by SBG/SVF2 (exchanged for the

Other loss

provided to WeWork, as recognized in the consolidated statement of profit or loss forfiscal 2023. The amounts are the same as those recorded for the nine-month period

WeWork stocks and warrants held by SVF1 and SVF2

ended December 31, 2023.
As of December 31, 2023, the carrying amounts of the stocks and warrants held by
SVF1 and SVF2 and the notes held by SVF2 have been written down to zero yen. The
amount of credit support by SVF2 for a letter of credit facility provided by financial
institutions to WeWork had been fully accrued by September 30, 2023, including theunfulfilled portion, as an allowance for financial guarantee contract losses. The guarantee
was fulfilled during the three-month period ended December 31, 2023. On June 11,2024, WeWork announced that it had completed the Chapter 11 process.

stocks and convertible bonds in Q1)

WeWork senior secured notes with a face value of$0.30 billion, previously held by SVF2 (redeemed in Q1)
WeWork notes with a face value of $0.30 billion heldby SVF2 (acquired in Q2; a loan commitment for notes purchaseat end of Q1)

Credit support by SVF2 for a letter of credit facility up
to $1.43 billion provided to WeWork by financial
institutions (the guarantee was fulfilled in Q3)

SoftBank Group Report 2024

Amount recorded
for fiscal 2023

(as loss on derecognition of
unsecured notes issued by
WeWork)(21,579)

Gain on investments at
SoftBank Vision Funds

439

Other gain

16

Loss on investments at
SoftBank Vision Funds(41,810)

Other loss
(as loss relating to credit support
for WeWork)(42,072)

Total(251,808)

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Message from Our CEO

Message from Our CFO

Overall results for fiscal 2023

Foundation for Our Growth

Financial Section

Corporate Information

Investment loss of ¥459,045 million was recorded at Investment Business of Holding(Millions of yen)

Net sales
Gross profit
Gain on investments
Gain (loss) on investments at Investment
Business of Holding Companies
Loss on investments at SoftBank Vision
Funds

Growth Assets

Companies. This primarily reflected realized and unrealized valuation losses on Alibaba shares,

Fiscal 2022

Fiscal 2023

ChangeChange %totaling ¥959,935 million. These losses significantly outweighed an investment gain of

6,570,439
3,328,042

6,756,500
3,542,392

186,061214,3502.8%
6.4%¥371,108 million on T-Mobile shares. The gain included derivative gains and unrealized
valuation gains, which followed an increase in the fair value of the Contingent Consideration up
to the receipt of 48.8 million T-Mobile shares. For details, see “Investment Business of Holding
Companies Segment” on page 85.

4,560,500(459,045)(5,019,545)−(5,322,265)(167,290)

5,154,975−(73,294)

66,985140,279−

losses of ¥37,903 million at SVF1 and ¥231,329 million at SVF2, as well as gains of ¥73,862(835,059)(559,350)

275,709−

million at LatAm Funds and ¥28,080 million on other investments.

(2,695,328)(555,902)(2,982,383)(556,004)(287,055)
(102)

10.7%
0.0%

(772,270)(96,677)(703,122)(38,641)

69,14858,036−−54,256
1,127,949(24,138)(469,127)(320,674)(789,801)

1,502,326(390,137)
242,72057,801
151,416
209,217

1,448,070(1,518,086)
266,858
526,928
472,090
999,018

−
−
−
−
−
−

(180,343)(436,863)(256,520)−(970,144)(227,646)

742,498−

Total comprehensive income

468,140

2,241,441

1,773,301

378.8%

Comprehensive income attributable toowners of the parent

293,116

1,809,984

1,516,868

517.5%

Gain (loss) on other investments
Total gain on investments
Selling, general and administrative
expensesFinance cost
Foreign exchange loss
Loss on equity method investments
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF
Other gain (loss)
Income before income tax
Income taxes
Net income
Net income attributable to non-controllinginterests
Net income attributable to owners of theparentInvestment loss of ¥167,290 million was recorded at SoftBank Vision Funds. This comprised

SVF1 recorded a realized gain on investments (net) of ¥19,892 million, due to full exits fromseven portfolio companies and partial exits from several other portfolio companies.*1
Meanwhile, SVF1 recorded unrealized valuation losses (net) totaling ¥77,693 million forinvestments held at the fiscal year-end. This comprises an unrealized gain (net) totaling ¥42,648
million for public portfolio companies, attributed to higher share prices, and an unrealized loss

Gain (loss) on investments(Billions of yen)

6,000

3,000

1. Net Sales

4,560.50-559.4-835.167.0-167.3-459.0-5,322.3-3,000Net sales increased ¥186,061 million (2.8%) year on year to ¥6,756,500 million. Net sales
increased in the SoftBank segment and the Arm segment.

-73.3-6,0002. Loss on investments
Total loss on investments was ¥559,350 million.
SoftBank Group Report 2024

’22

’23

(FY)

■ Investment Business of Holding Companies ■ SoftBank Vision Funds
Total■ Other investments

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Message from Our CEO

Message from Our CFO(net) totaling ¥120,341 million for private portfolio companies, mainly due to markdowns ofGrowth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Foreign exchange loss of ¥703,122 million (net), an improvement of ¥69,148 million year on

weaker-performing companies, which offset the fair value increases of select companies,

year, was recorded due to the weaker yen. This was mainly because SBG and domestic

including ByteDance Ltd.

subsidiaries used for fund procurement had U.S. dollar-denominated liabilities, such as

SVF2 recorded a realized loss on investments (net) of ¥107,912 million, primarily resulting
from full exits from seven portfolio companies and partial exits from several other portfolio
companies.*1 Additionally, SVF2 recorded unrealized valuation losses (net) totaling ¥261,865

borrowings from subsidiaries and foreign currency-denominated senior notes, that exceeded
their U.S. dollar-denominated cash and cash equivalents and loans receivable.
The depreciation of the yen in exchange rates used for translation resulted in an increased

million for investments held at the fiscal year-end. This was largely due to writing down

yen-translated value of net assets of foreign subsidiaries and associates, such as SoftBank Vision

WeWork’s fair value to zero yen, following its filing for protection under Chapter 11 of theFunds, whose functional currency is primarily U.S. dollars, rather than Japanese yen. However,United States Bankruptcy Code in November 2023, and the reduced fair values of private

this positive impact is not reflected as a foreign exchange gain; instead, it is accounted for in theportfolio companies, mainly reflecting markdowns due to their weaker performances.

¥2,009,461 million increase in exchange differences from the translation of foreign operations.

LatAm Funds recorded unrealized valuation gains (net) totaling ¥67,227 million, mainly due
to share price increases of public portfolio companies.

This amount is recorded under accumulated other comprehensive income in equity on the
consolidated statement of financial position.

Gains and losses on investments at SoftBank Vision Funds in the consolidated statement of
profit or loss do not include investment gains and losses related to SoftBank Vision Funds’
investments in Arm, PayPay Corporation, and other subsidiaries of the Company.
For details, see “SoftBank Vision Funds Segment” on page 89.

Loss on equity method investments improved by ¥58,036 million year on year to ¥38,641
million. In fiscal 2022, a loss of ¥25,394 million*3 on equity method investments related to
Alibaba was recorded. Alibaba was, however, excluded as an associate beginning in the second
quarter of fiscal 2022.

Gain on other investments amounted to ¥66,985 million. This included a valuation gain on
Symbotic Inc. (“Symbotic”) shares acquired by a wholly owned subsidiary of the Company in
July 2023, primarily resulting from an increase in the company’s share price.

Derivative gain (excluding gain (loss) on investments) increased by ¥1,448,070 million year on
year to ¥1,502,326 million. Derivative gain of ¥1,517,350 million was recorded for the prepaid
forward contracts and associated contracts using Alibaba shares.

3. Income before income tax

Gains and losses arising from derivatives related to investment activities, such as the

Income before income tax was ¥57,801 million, an improvement of ¥526,928 million year on

acquisition and sale of shares, are included under “Investment gain/loss.” For example, thisyear. Major changes other than gain (loss) on investments are as follows.

applies to derivative gains and losses arising from changes in the fair value of the Contingent
Consideration up to the receipt of 48.8 million T-Mobile shares. On the other hand, gains andFinance cost increased by ¥102 million year on year, to ¥556,004 million. Interest expenses atlosses arising from non-investment activities, in particular from derivatives associated with

SBG*2 increased by ¥6,781 million year on year, totaling ¥403,021 million. The increase wasfinancing, are included in “Derivative gain/loss (excluding gain or loss on investments).” For

primarily due to higher interest expenses associated with financings using Arm shares, which

example, this applies to derivative gains and losses on prepaid forward contracts using Alibaba

were affected by increased base rates and the depreciation of Japanese yen in the foreign

shares and T-Mobile shares.

exchange rate used for translations. Conversely, the expenses decreased partly due to the full
repayment of margin loans using Alibaba shares in the second quarter of the previous fiscal

The change in third-party interests in SVF represents the gains and losses attributable toyear, the repurchase of foreign currency-denominated straight bonds in the third quarter ofthird-party investors, calculated based on the gains and losses on investments at SoftBank

fiscal 2022, and the redemption of foreign currency-denominated straight bonds at maturity in

Vision Funds, net of management and performance fees payable to the fund managers, which

the first quarter of fiscal 2023.

are wholly owned subsidiaries of the Company, and operating and other expenses of SoftBank
Vision Funds. In the consolidated statement of profit or loss, gains on investments at SoftBank
Vision Funds typically contribute to an increase in third-party interests, which negatively impacts

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Who We Are

Message from Our CEO

Message from Our CFO

profit; conversely, losses on investments result in a decrease in third-party interests and have apositive impact on profit.
However, for fiscal 2023, the change in third-party interests in SVF was negative by ¥390,137
million, despite an investment loss of ¥167,290 million at SVF being recorded. This was mainly
due to an investment gain of ¥807,320 million recorded in August 2023 as a result of the sale

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information*1 Includes share exchanges, acquisitions, and disposals as a result of restructuring of portfolio companies*2 Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement.
*3 Until Alibaba was excluded from the associates of the Company in the second quarter of fiscal 2022, the Company had applied theequity method to Alibaba’s consolidated financial statements for the reporting periods staggered by the previous three months
because it was impracticable to align the reporting periods with Alibaba due to various factors, such as contracts with Alibaba.
Necessary adjustments were made to reflect significant transactions and events announced by Alibaba during the staggered
three-month period.

of Arm shares held by SVF1 to a wholly owned subsidiary of the Company. As this transaction
was an intragroup transfer of shares in a subsidiary of the Company, the relevant investment
gain was eliminated in consolidation. On the other hand, the gain attributable to third-party
investors from this investment gain is recognized in the consolidated statement of profit or loss
as an increase in third-party interests.
For details, see “1. Intragroup transaction of Arm shares” under “Intragroup Transaction of
Arm Shares and IPO of Arm” on page 78.
Other gain increased by ¥266,858 million year on year to ¥242,720 million. A gain of¥108,832 million relating to loss of control over subsidiaries was recorded mainly because of thesale of 85% of the shares in SB Energy Corp., a wholly owned subsidiary of the Company. In
addition, interest income increased by ¥62,171 million year on year to ¥130,854 million
primarily driven by higher interest rates on USD-denominated deposits. For a further
breakdown, see “41. Other gain (loss)” in “Notes to Consolidated Financial Statements” in“Financial Report 2024.”
4. Net loss attributable to owners of the parent
Net loss attributable to owners of the parent was ¥227,646 million, an improvement of¥742,498 million year on year.
Income taxes decreased by ¥472,090 million year on year to ¥151,416 million. This wasprimarily due to recording deferred income taxes of ¥580,486 million (a credit of income taxes),
while SoftBank Corp. and other operating companies recorded current tax expenses of¥429,070 million.
The deferred income taxes were recorded as a credit, primarily due to the completion of thephysical settlement of a portion of the prepaid forward contracts using Alibaba shares. The
settlement had been phased in since October 2021 by Skybridge LLC, the Company’s wholly
owned financing subsidiary. The settlement of all contracts held by Skybridge LCC wascompleted in January 2024, leading to the reversal of deferred tax liabilities that had previously
been recognized at the previous fiscal year-end. This was based on the future tax estimates
related to the Alibaba shares and associated derivatives.
SoftBank Group Report 2024

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Summary of Segment Information
Net sales

Segment income (income before income tax)

(Billions of yen)(Billions of yen)

7,500

7,500

244.8
381.7

6,570.4

6,756.5

Overview of reportable segments
Segments

Main businesses

Core companies• Investment activities by SBG and its• SoftBank Group Corp.

Investment
subsidiaries
Business of
Holding Companies

225.0
464.0

• SoftBank Group Capital Limited• SoftBank Group Japan Corporation• SoftBank Group Overseas GK• SB Northstar LP

SoftBank Vision
Funds

5,000

5,000

• Investment activities by SVF1, SVF2, and

LatAm Funds• SoftBank Vision Fund II-2 L.P.
• SBLA Latin America Fund LLC

SoftBank*

1

6,083.8
2,500

2,500

3,349.8
51.4
0

-12.7

-16.4
’22

’23

57.8 835.1

128.2
-33.2
-97.5
-826.10(FY)-469.1-4,308.3-2,500

Arm
-75.3
-76.9
-5,000’22
Investment Business of Holding Companies*1
SoftBank Vision Funds*1
Other*2
Reconciliations○ Consolidated• SoftBank Vision Fund L.P.
• SB Global Advisers Limited

48.7
592.8
5,956.5• SB Investment Advisers (UK) Limited

SoftBank

’23

(FY)

Arm

• Consumer business: Provision of mobile• SoftBank Corp.

services, sale of mobile devices, andprovision of broadband services to retailcustomers in Japan• Enterprise business: Provision of mobile
communications and solutions services toenterprise customers in Japan• Distribution business: Provision of ICT(Information and Communication
Technology) services products to enterprisecustomers and provision of communication
device-related products and IoT (Internet ofThings) equipment to retail customers• Media & EC (e-commerce) business:
Provision of media-related services,
advertising and commerce-related services• Financial business: Provision of payment andfinancial services• LY Corporation*2• Design of microprocessor intellectual• Arm Holdings plc• PayPay Corporation

property and related technology• Sale of software tools and provision ofrelated services*1 From the first quarter, within the management categories of the SoftBank segment, the category previously called “Yahoo & LINE” hasbeen renamed “Media & EC.”
*2 On October 1, 2023, Z Holdings Corporation completed the scheduled intragroup reorganization procedures, including the merger
primarily among the company and its core wholly owned subsidiaries, LINE Corporation and Yahoo Japan Corporation, as well aschanging its trade name to LY Corporation.

*1 Net sales are not recorded for this segment as it is not engaged in the sale of goods and services.
*2 Includes the business results of Fortress Investment Group LLC and Fukuoka SoftBank HAWKS Corp., among others. On May 14, 2024,
SoftBank Group Corp. sold all its shares in Fortress Investment Group LLC, held through its subsidiary, to a subsidiary of Mubadala Investment
Company PJSC. With the completion of this transaction, Fortress Investment Group LLC is no longer a subsidiary of SoftBank Group Corp.

SoftBank Group Report 2024

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Investment Business of Holding Companies Segment
1. Investment gain of ¥371.1 billion on T-Mobile shares– The Company acquired 48.8 million shares of T-Mobile stock equivalent to $7.74 billion (¥1.1 trillion) for no additional consideration on December 28, 2023, following the satisfaction of
the Contingent Consideration condition on December 22, 2023. This was part of the consideration the Company received for the merger between T-Mobile US and the Company’s
then-U.S. subsidiary Sprint, which closed on April 1, 2020.
– ¥227.0 billion derivative gain on investments was recorded due to an increase in the fair value of the Contingent Consideration. Additionally, an unrealized valuation gain of ¥154.5
billion was recorded on T-Mobile shares, including preexisting holdings. Of this gain, ¥31.4 billion was attributable to the shares acquired on December 28, 2023.
2. Investment loss of ¥459.0 billion was recorded, primarily because the gains associated with T-Mobile were overshadowed by realized and unrealized valuation losses on
Alibaba shares, which totaled ¥959.9 billion.
3. Segment loss amounted to ¥97.5 billion, primarily driven by finance cost of ¥473.8 billion and foreign exchange loss of ¥703.4 billion, which exceeded a derivative gain
(excluding gain or loss on investments) of ¥1,500.0 billion that was significantly greater than the investment losses mentioned above.

Overview

These derivatives are measured at fair value every quarter, with any change recorded in theThis segment is led by SBG, which conducts investment activities either directly or through its

consolidated statement of profit or loss as a derivative gain or loss (excluding gain or loss on

subsidiaries, acting as a strategic investment holding company. The segment comprises SBG,

investments).

SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SoftBank Group Overseas
GK, the asset management subsidiary SB Northstar, and certain other subsidiaries engaged ininvestment and financing activities. Gains and losses on investments at Investment Business ofthrough its subsidiaries, excluding gains and losses on investments pertaining to subsidiaries’

Segment income(income before income tax) /gain (loss) on investments

shares, such as dividend income from subsidiaries or impairment losses related to subsidiaries’(Billions of yen)

Holding Companies encompass gains and losses on investments held by SBG either directly or

shares.

6,000This segment holds investments in portfolio companies, such as Alibaba, T-Mobile, andDeutsche Telekom, most of which are classified as financial assets at FVTPL (Fair Value Through4,560.6
4,000

Profit or Loss). Investments classified as financial assets at FVTPL are measured at fair value every
quarter, with any change in fair value recorded in the consolidated statement of profit or loss as
gains and losses on investments.
Alibaba

3,349.8

2,000

0

-97.5
-459.0

The Company classified its holdings of Alibaba shares as financial assets at FVTPL. These sharesare measured at fair value every quarter, with any change in fair value recorded in the
consolidated statement of profit or loss as a gain or loss on investments. Additionally, derivative
financial assets and liabilities are recognized for prepaid forward contracts using Alibaba shares.
SoftBank Group Report 2024

-2,000

’22

’23

(FY)

■ Segment income (income before income tax)
■ Gain (loss) on investments

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Investment in listed stocks, corporate bonds, and other instruments by asset
management subsidiaries
SB Northstar engages in the acquisition and sale of listed stocks, corporate bonds (primarily
those of investment grades with short time to maturity), and other instruments, utilizing thesurplus funds of SBG. Investment loss at asset management subsidiaries for fiscal 2023
amounted to ¥69.6 billion, bringing the cumulative investment loss since inception to ¥962.0
billion.* The balance of investments at the fiscal year-end stood at ¥347.7 billion, including¥264.9 billion in corporate bonds.
SBG indirectly holds a 67% stake in SB Northstar, while SBG’s Representative Director,
Corporate Officer, Chairman & CEO Masayoshi Son, indirectly holds a 33% interest. The portion
corresponding to Masayoshi Son’s interest is deducted from the gains and losses on investments
at SB Northstar as a non-controlling interest; therefore, 67% of the gains and losses oninvestments impact net income attributable to owners of the parent. In the event that, at theend of the fund life (12 years + 2-year extension), SB Northstar has any unfunded repayment
obligations to SBG, Masayoshi Son will cover his pro rata share of any such unfunded
obligations based on his relative ownership percentage in SB Northstar.
* The figures for cumulative investment loss exclude the impact of SB Northstar’s investments in three Special Purpose Acquisition
Companies (SPACs) controlled by SB Investment Advisers (US) Inc.

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Who We Are

Message from Our CEO

Message from Our CFO

Financial results

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

A Loss on investments at Investment Business of Holding Companies: ¥459,045 million(Millions of yen)

Fiscal 2022

Gain (loss) on investments at Investment
Business of Holding Companies
4,560,568
Gain relating to settlement of prepaid
forward contracts using Alibaba shares
4,838,251
Gain relating to sales of T-Mobile shares
24,842
Realized loss on investments at asset
management subsidiaries(73,950)
Unrealized gain (loss) on valuation of
investments at asset management subsidiaries(67,054)
Derivative loss on investments at asset
management subsidiaries(5,102)
Realized loss on investments*1(235,617)
Unrealized loss on valuation of investments(144,198)
Change in valuation for the fiscal year
(132,423)
Reclassified to realized gain (loss) recorded in
the past fiscal years*1(11,775)
Derivative gain on investments
205,506
Effect of foreign exchange translation*2–
Other
17,890
Selling, general and administrative expenses(73,796)
Finance cost
(398,541)
Foreign exchange loss
(772,053)
Income (loss) on equity method investments(22,836)
Derivative gain
(excluding gain (loss) on investments)
Mainly due to prepaid forward contracts
using Alibaba shares
65,732Other gain (loss)(9,228)Segment income(income before income tax)
3,349,846

Fiscal 2023

Change(459,045) (5,019,613)

Change %− A−−(4,838,251)(24,842)−−(90,360)(16,410)−

12,692

79,746−(792)(38,429)(611,627)(647,414)

4,310
197,188(467,429)(514,991)−−−−

35,787226,050
6,532
36,889(89,285)(473,811)(703,438)
1,904

47,562
20,544
6,532
18,999(15,489)(75,270)
68,61524,740−10.0%−
106.2%
21.0%
18.9% B− C−

• Unrealized loss of ¥611,627 million was recorded on valuation of investments, primarily due
to a ¥913,156 million loss on Alibaba shares arising from a decrease in its share price. The
loss was partially offset by a gain of ¥154,538 million on T-Mobile shares, due to an increase
in its share price.
• Derivative gain of ¥226,050 million on investments was recorded, which mainly included again of ¥227,012 million related to the T-Mobile Contingent Consideration.
B Finance cost: ¥473,811 million (increase of ¥75,270 million year on year)
SBG* saw a slight increase in interest costs to entities outside of the group, totaling ¥403,021
million, which is ¥6,781 million higher than fiscal 2022. Meanwhile, an amortized cost of¥67,390 million was recognized for the unpaid portion of the consideration for the acquisitionof Arm shares from SVF1 in August 2023. This amortized cost is eliminated in consolidation.
C Foreign exchange loss: ¥703,438 million
Foreign exchange loss of ¥703,438 million (net) was recorded due to the weaker yen. This wasprimarily because U.S. dollar-denominated liabilities (such as borrowings from subsidiaries andforeign currency-denominated senior notes) of SBG and domestic subsidiaries used for fundprocurement exceeded their U.S. dollar-denominated cash and cash equivalents and loans
receivable.
D Derivative gain (excluding gain or loss on investments): ¥1,500,015 million
Derivative gain of ¥1,517,350 million was recorded for the prepaid forward contracts andassociated contracts using Alibaba shares.

1,500,015
126,134

1,434,283
135,362(97,526) (3,447,372)− D−* Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement.

−*1 Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in fiscal
2023 are reclassified as “Realized gain (loss) on investments.”*2 Unrealized gains and losses on valuation of investments are translated using the average exchange rate for the quarter in which thegains and losses were incurred, while realized gains and losses on investments are translated using the average exchange rate for thequarter in which the shares were disposed. “Effects of foreign exchange translation” are amounts that arose due to the use of different
foreign currency exchange rates for these unrealized and realized gains and losses.

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Message from Our CEO

Message from Our CFO

Impact of the asset management subsidiaries on the company’s consolidated
statement of financial position

Growth Assets

Foundation for Our Growth

Financial Section

Main interest-bearing debt and lease liabilities in this segment(Millions of yen)March 31, 2024

Cash and cash equivalents
Investments from asset management subsidiaries
including corporate bonds
Derivative financial assets in asset management subsidiaries
Other financial assets
Other
Total assets
Other financial liabilities
Other
Total liabilities
Investments from the Delaware subsidiaries*1
Equivalent amount of cash investments by SBG in the Delaware subsidiaries
Equivalent amount of loans to the Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware
subsidiaries
Retained earnings
Exchange differences
EquityCorporate Information

794,508
347,679
264,854
11
3,672
4,660
1,150,530
3,672
521
4,193
1,971,699
39,786

Borrower

Type

SBG

Borrowings

Balance as of March 31, 2024
in the consolidated statementof financial position

Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries
conducting fundprocurement*¥463.0 billion¥6,147.6 billion¥9.4 billion¥176.5 billion

Borrowings using Arm shares(margin loan)¥1,274.9 billion

Prepaid forward contracts using
Alibaba shares (collar and forward
contracts)¥4,676.6 billion

Borrowings using SoftBank Corp.
shares (margin loan)¥498.8 billion

1,912,020

Prepaid forward contracts using
T-Mobile shares (collar contracts)¥432.2 billion

19,893(994,680)
169,318
1,146,337

Collar transactions using Deutsche
Telekom shares¥496.9 billion

A
B* Borrowings of wholly owned subsidiaries conducting fund procurement are nonrecourse to SBG.

C

*1 Investments from the Company’s subsidiaries, Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3
L.L.C. (the “Delaware subsidiaries”), to SB Northstar, the asset management subsidiary.

Calculation of non-controlling interests
Equivalent amount of cash investments by Masayoshi Son
in Delaware subsidiaries
Cumulative loss attributable to non-controlling interests*2
Exchange differences on translating foreign operations
Non-controlling interests (interests of Masayoshi Son)

(Millions of yen)

19,893A(331,460)
64,557(247,010)

D*2 One-third of B in the above table

Interests in equity (C above)
Interests of SBG
Non-controlling interests (interests of Masayoshi Son)
EquitySoftBank Group Report 2024

(Millions of yen)

1,393,347(247,010)
1,146,337

DC

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

SoftBank Vision Funds Segment(As of March 31, 2024; in billions of U.S. dollars)
1. Since inception, SVF1 had a gross gain of $16.7 billion; SVF2 had a gross loss of $19.3 billion.*1
Since Inception
Fiscal 2023*5
SVF1: $106.3 billion in cumulative returns*2 on $89.6 billion investments, with $16.7 billion
Investment
Gain/loss
Gain/loss
gross gain
cost*6 Returns*6 Gain/loss
Jan - MarYTD
• Investment gain was $5.3 billion (¥768.9 billion) for fiscal 2023, including an investment gain
SVF1
of $5.6 billion (¥807.3 billion) arising from the sale of Arm shares to a wholly owned subsidiary
Exited investments
38.0
64.1
26.1
0.4
7.3
Investments before exit 51.6
39.9
(11.7)(0.1)(0.6)
of the Company.
Reversal of valuation gain/loss recorded in prior• The fair value of investments held at the fourth quarter-end decreased by 0.4% from theperiods for exited investments in fiscal 2023
(0.2)
(1.4)
3
previous quarter-end.*
Derivatives/Interests/–U p 0.9% QoQ for public portfolio companies,*4 mainly due to an increase in the share prices
Dividends
(0.0)
2.3
2.3
(0.1)
(0.0)
of Coupang and DoorDash
Total
89.6
106.3
16.7
0.0
5.3
¥1.5 billion¥768.9 billion–D own 1.2% QoQ for private portfolio companies,*4 mainly due to markdowns of certain
weaker-performing companies
SVF2
SVF2: $33.1 billion in cumulative returns on $52.4 billion investments, with $19.3 billion
Exitedinvestments
3.0
3.4
0.4
(0.2)
(0.7)
gross loss
Investments
before
exit
49.4
29.9
(19.5)(0.3)(1.2)• Investment loss was $1.0 billion (¥146.5 billion) for fiscal 2023.
Reversal of valuation gain/loss recorded in prior• The fair value of investments held at the fourth quarter-end decreased by 1.1% from theperiods for exited investments in fiscal 2023
0.2
0.8
previous quarter-end.
Derivatives/Interests/
Dividends
(0.0)
(0.2)
(0.2)
0.0
0.1
–D
 own 10.3% QoQ for public portfolio companies, mainly due to a decrease in the share
Total
52.4
33.1
(19.3)(0.3)(1.0)
prices of AutoStore and Symbotic¥(49.7) billion ¥(146.5) billion–U p 0.4% QoQ for private portfolio companies, mainly reflecting share price increases amongmarket comparable companies
	Investment gains and losses on SVF’s investments in shares in the Company’s subsidiaries (mainly Arm) are recorded in this segment under “Gain (loss) on investments at SoftBank Vision
Funds.” However, these are eliminated in consolidation and hence, not included in “Gain (loss) on investments at SoftBank Vision Funds” in the consolidated statement of profit or loss.

2. Continue monetization and investment under a disciplined approach■ SVF2 made investments totaling $2.14 billion in fiscal 2023.*7■ 
SVF1 and SVF2 sold investments for a total of $21.99 billion in fiscal 2023, including full exits from 17 portfolio companies, including Arm, and partial exits from several portfolio companies.*7*1 Cumulative gross gains and proceeds from realized investments are before deducting third-party interests, taxes, and expenses. The same applies to the presentation of cumulative investment performance hereinafter.
*2 Exit price, etc., plus fair value of investments held. The same applies hereinafter.
*3 Represents changes in U.S. dollar-based fair values, excluding those from investments or exits made during the fourth quarter. The classification of portfolio companies as public/private is based on their status as of the fourth quarter-end. For portfolio companies with a change in theclassification of public/private during the fourth quarter, comparisons are made by adjusting their status at the third quarter-end to that of the fourth quarter-end. The same applies to the change in fair value of investments held at the quarter-end in this section.
*4 Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are those that do not fall under the category of public portfolio companies. The same applies hereinafter.
*5 The amount of gains and losses for exited investments in fiscal 2023 represents the exit price, net of the investment cost of such investments. Unrealized valuation gains and losses of such investments, recorded in prior years or in or before the third quarter of fiscal 2023, arepresented as a reversal of valuation gain/loss recorded in prior periods for exited investments in fiscal 2023. Therefore, the total amount of gains and losses for each quarter disclosed in or before the third quarter of fiscal 2023 and the gains and losses for the fourth quarter (Jan - Mar)for “Investments before exits” may not align with the amount of gains and losses for fiscal 2023 (YTD).
*6 For derivatives, the investment costs represent the costs of the derivatives. Investment returns represent the exit price for exited investments, the fair value for investments before exits, the settlement amount of settled contracts or the fair value of open contracts for derivatives, andthe respective amounts received for interest or dividends.
*7 Includes share exchanges, acquisitions, and disposals as a result of restructuring of portfolio companies

SoftBank Group Report 2024

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Overview

Segment income

Segment results mainly include the results of the investment and operational activities of

A Gain on investments at SoftBank Vision Funds: ¥724,341 million

SoftBank Vision Fund 1 (SVF1), SoftBank Vision Fund 2 (SVF2), and SoftBank Latin America(Millions of yen)Funds (LatAm Funds).
Financial results
Gain (loss) on investments at SoftBank
Vision Funds*1
Gain (loss) on investments at SVF1,
SVF2, and LatAm Funds
Realized gain on investments*2
Unrealized loss on valuation of
investments
Change in valuation for fiscal 2023
Reclassified to realized gain (loss)
recorded in the past fiscal years*2
Interest and dividend income frominvestments
Derivative gain (loss) on investments
Effect of foreign exchangetranslation
Gain on other investments
Selling, general and administrative
expensesFinance cost
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF
Other loss
Segment income (income before income
tax)(Millions of yen)

Fiscal 2022

Fiscal 2023

Change(5,279,494)

724,341

6,003,835−(5,298,458)
78,616696,261
984,409

5,994,719
905,793−−(5,267,270)(4,978,591)(144,835)(189,604)

5,122,435
4,788,987−−(288,679)

44,769333,448−

1,512
14,537

21,668(7,337)

20,156(21,874)−−(125,853)
18,964(157,644)
28,080(31,791)
9,116

−
48.1%

(65,999)(81,181)(84,986)(74,322)(18,987)
6,859

28.8%
(8.4%)

907
1,127,949(10,473)−(390,137)(46,717)(907)(1,518,086)(36,244)−−−(4,308,291)

128,179

4,436,470−

Change %A

Gain (loss) on investments at SVF1
Loss on investments at SVF2
Gain (loss) on investments at LatAm Funds
Gain on other investments, etc.
Gain (loss) on investments at SoftBank Vision
Funds (A)Gain on SVF’s investments in shares of theCompany’s subsidiaries, etc. (B)Loss on investments at SoftBank Vision Funds inthe consolidated statement of profit or loss(A) - (B)Fiscal 2022

Fiscal 2023

Change(2,311,213)(2,445,427)(541,818)
18,964

768,891(146,472)
73,862
28,0603,080,104
2,298,955
615,680
9,096(5,279,494)

724,341

6,003,835

42,771

891,631

848,860(5,322,265)(167,290)

5,154,975“Gain on SVF’s investments in shares of the Company’s subsidiaries, etc.” for fiscal 2023
primarily comprises an investment gain of ¥807,320 million ($5.6 billion) associated with theinvestment in Arm. As a result of the sale of Arm shares held by SVF1 to a wholly owned
subsidiary of the Company in August 2023, a realized gain of ¥1,074,039 million ($7.4 billion),an unrealized loss (reclassified to realized gain recorded in the past fiscal years) of ¥189,817
million ($1.8 billion), and a loss of ¥76,902 million as the effect of foreign exchange translation
were recorded in the SoftBank Vision Funds segment. For details of this sale, see “Intragroup
Transaction of Arm Shares and IPO of Arm” on page 78.
B Change in third-party interests in SVF: ¥(390,137) million
B*1 Gains and losses on investments associated with the change in valuation of SoftBank Vision Funds’ investments in shares in the Company’s
subsidiaries (mainly Arm and PayPay Corporation) are included in segment income of the SoftBank Vision Funds segment as gains andlosses on investments at SoftBank Vision Funds but are eliminated in consolidation and not included in gains and losses on investments at
SoftBank Vision Funds in the consolidated statement of profit or loss.
*2 Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in fiscal 2023
are reclassified to “Realized gain (loss) on investments.”

SoftBank Group Report 2024

Corporate Information

This represents the gains and losses attributable to third-party investors, which are calculated
based on the gains and losses on investments at each fund, net of (i) management andperformance fees payable to SBIA from SVF1; (ii) management and performance-linked
management fees payable to SBGA from SVF2; (iii) management fees, performance-linked
management fees, and performance fees payable to SBGA from LatAm Funds; and (iv)
operating and other expenses of SVF. For details, see “(2) Third-party interests in SVF” under“7. SoftBank Vision Funds business” in “Notes to Consolidated Financial Statements” in“Financial Report 2024.”

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Who We Are

Message from Our CEO

Investments and disposals by SVF1 and SVF2 in fiscal 2023
Investments

SVF1
SVF2
Total

Message from Our CFO(Billions of U.S. dollars)

Disposals*

Q1

Q2

Q3

Q4

YTD

Q1

Q2

Q3

Q4

YTD

−
1.56
1.56

−
0.37
0.37

−
0.09
0.09

−
0.12
0.12

−
2.14
2.14

0.56
0.33
0.89

16.36
0.12
16.48

2.04
0.12
2.16

2.41
0.05
2.46

21.37
0.62
21.99

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Fair value measurement of investments
SVF1, SVF2, and LatAm Funds calculate the fair value of their investments at eachquarter-end in accordance with IFRS 13 Fair Value Measurement and based on the
SBIA Global Valuation Policy and the International Private Equity and Venture Capital
Valuation Guidelines (IPEV Guidelines). For public portfolio companies, fair values ofNote: Investments include new and follow-ons.
* After deducting transaction fees, etc.

portfolio companies that are traded on stock exchanges are determined using quoted
prices, while fair values of those traded on over-the-counter markets are determined

Financing at SVF

using single or multiple factors, such as quoted prices and other observable inputs. For

SVF1, SVF2, and LatAm Funds may independently engage in borrowings that are nonrecourse

private portfolio companies, one or more valuation methods are used, including theto SBG, with the aim of leveraging and maintaining liquidity. Such borrowings include asset-

market approach using figures of market comparable companies, the income approachbacked finance, which utilizes held assets to enhance returns and distribute to limited partners.

using estimated future cash flows, and the recent transactions method using prices ofrecent funding rounds and similar transactions.

Segment income(income before income tax) /gain (loss) on investments at
SoftBank Vision Funds

Market Approach
Comparable Company Multiples(Billions of yen)

2,000

724.3
128.2

0

Triangulationof Valuation
Methodologies-2,000-4,000-4,308.3-5,279.5-6,000

’22

’23

(FY)

Income Approach

Recent Transaction Approach

Discounted Cash Flows

Rounds of Financing, etc.

■ Segment income (income before income tax)
■ Gain (loss) on investments at SoftBank Vision Funds

SoftBank Group Report 2024

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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Co-investment program of SVF2

in effect at the time of liquidation was applied throughout the life of SVF2 LLC, then any

In the second quarter of fiscal 2021, SVF2 introduced a co-investment program withsuch excess amounts will be subject to clawback from MgmtCo.

restricted rights to receive distributions (the “Program”). Under the Program, the Company’s
management makes joint investments with the Company and shares both the profits andrisks associated with the investments. The Program aims for the Company’s management tofurther focus on SVF2 and contribute to the Company’s earnings growth.
The Program targets an approved selection of SVF2’s investments, including investments
in private portfolio companies held or intended to be held by SVF2 as of June 23, 2021,
and any new investments executed on or after June 24, 2021 (excluding any follow-on

In parallel with the introduction of the Program, the Company has decided to invest in
SVF2 LLC in the form of preferred equity, which generates a fixed distribution of 8% perannum, to enhance the efficiency of recovery of investment funds. The preferred equity
interests have a priority right over the equity interests held by the Company and MgmtCo
under the Program in terms of distributions and return of contributions. SBG continues
to hold 100% of the equity for the investments in portfolio companies outside of theProgram’s scope.

investments in the portfolio companies outside of the Program’s scope). Target investments
are indirectly held by SVF II Investment Holdings LLC (“SVF2 LLC”), a subsidiary of
the Company established beneath SVF2. SVF2 LLC issued equity to the Company and
MgmtCo.* Accordingly, the Company holds 82.75% and MgmtCo holds 17.25% of thetotal equity interests. These equity interests are entitled to performance-based distributions

As of March 31, 2024

SBG

Equity interests of third-party interests

MgmtCo*$– (¥– )that are allocated based on the proportion of respective equity contributions.
Distributions from SVF2 LLC to MgmtCo are subject to certain restrictions. Specifically,(B) Distribution: $173mn(Return of capital)

distribution will not be made to MgmtCo until the sum of proceeds received by SVF2
LLC from realized investments plus the aggregate fair market value of all of SVF2 LLC’s
unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition costof all of SVF2 LLC’s investments. After the ratio exceeds 130%, restrictions on distributions
to MgmtCo will be released proportionately in increments of 10%. When the ratio reaches

100%
Equity: 82.75%
Preferred
EquityEquity: 17.25%(A) Equity acquisition amount: $2,923mn( i ) Acquisition costs: $2,594mn
		 (committed capital: $2.6bn)(ii) Adjustments etc.: $329mn+
Premium receivable: $215mn

200%, all restrictions will be released and MgmtCo will be entitled to receive the fullamount of the distribution.
MgmtCo is entitled to make full or partial payment of its capital contribution in SVF2 LLC
at any point in time and is required to pay a premium calculated at 3% per annum on theoutstanding receivables of SVF2 LLC. Any distributable amount from SVF2 LLC to MgmtCo
is offset against receivables at the time of the distribution notice and no distribution
payment will be made to MgmtCo until SVF2 LLC’s receivables are paid in full. Furthermore,in the event that, upon the liquidation of SVF2 LLC, the amount of the distributions receivedby MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio

SoftBank Group Report 2024

Investments outside
the scope of theProgram

SVF2 LLC
Investments within
the scope of theProgram

Balance of the receivables ((A) – (B))
$2,965mn (¥448.9bn)* As of the fiscal year-end, only Masayoshi Son, SBG’s Representative Director, Corporate Officer, Chairman & CEO, invests in MgmtCo.
Participation by management other than Masayoshi Son has not been determined as of the date hereof, but is expected in the future.
For further details of the Program, see “a. Co-investment program with restricted rights to receive distributions” in “(1) Related
party transactions and balances” under “Note 45. Related party transactions” in “Notes to Consolidated Financial Statements”
in “Financial Report 2024.”

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Status of SVF1 investments
As of March 31, 2024

Total ((1) + (2) + (3) + (4) below)(Billions of U.S. dollars)

Cumulative
number ofinvestments

Cumulative
investment
cost

Cumulative
investment
returnCumulative
gain*1Jan - Mar

YTD

102

89.6

106.3

16.7

0.0

5.3

Number ofinvestments

Investment
cost

Exit price

Cumulative
realized
gain*1

Partial exit
Full exit*2

–
34

7.6
30.4

16.9
47.2

9.3
16.8

Total

34

38.0

64.1

26.1

(1) Exited investments
Realized gainrecorded for fiscal 2023
Jan - Mar

YTD

0.6
6.7
0.4

7.3

(2) Investments before exit (investments held at the fiscal year-end)*3
Unrealized
valuation gain (loss)
recorded for fiscal 2023

Number ofinvestments

Investment
cost

Fair value

Cumulative
unrealized
valuation
loss*5Jan - Mar

YTD

Public*4
Private

21
47

26.4
25.2

16.0
23.9

(10.4)
(1.3)

0.1
(0.2)

0.3
(0.9)

Total

68

51.6

39.9

(11.7)

(0.1)

(0.6)

Derivative
cost

Fair value /settlement
price

Cumulative
derivative
gain (loss)

Unsettled
Settled

(0.0)
0.0

(0.0)
1.4

(0.0)
1.4

Total

(0.0)

1.4

1.4

Interest anddividend
incomeCumulative
income0.9

0.9(3) Derivatives
Derivative loss
recorded for fiscal 2023
Jan - Mar

YTD

(0.0)
(0.0)
(0.1)

(0.0)

(4) Interest and dividend income from investments

Total

SoftBank Group Report 2024

(Reference)

Investment gainrecorded for fiscal 2023

Interest and dividend income
recorded for fiscal 2023
Jan - Mar

YTD

–

–

Effects of share exchanges*6
Effects of dividends in kind*7
Net of the above effects(Billions of U.S. dollars)

Cumulative
number ofinvestments

Cumulative
investment
cost

Cumulative
investment
returnCumulative
gain*1

(4)
(4)
94

(2.0)
–
87.6

(2.0)
–
104.3

–
–
16.7

Note: The total and the sum of the breakdown in the table may not match as the amount of each item is rounded to the nearest unit.
*1 Before deducting third-party interests, taxes, and expenses*2 Includes disposals (sales) as a result of share exchanges and restructuring of portfolio companies*3 The classification of portfolio companies as public/private is based on their status as of the fiscal year-end.
*4 Includes DiDi Global Inc. and WeWork, which are traded in the over-the-counter market. The carrying amount of WeWorkstocks has been written down to zero U.S. dollars; this decision was based on the Restructuring Support Agreement thecompany entered into with its major debt investors on November 6, 2023.
*5 For a certain investment that was initially determined to be transferred from the Company to SVF1, but later canceled, any unrealized
valuation gains and losses incurred for fiscal 2023 leading up to the decision to cancel the transfer are excluded in this section.
*6 For investments in which share exchanges occurred, the acquisition costs of new investments and disposal prices (sale prices) ofinvestments initially held are deducted for the purpose of presenting the cumulative net investment performance. These include
share exchanges between Uber Advanced Technologies Group and Aurora Innovation Inc., PT Tokopedia and PT GoTo Gojek
Tokopedia Tbk, Grofers International Pte. Ltd. and Zomato Limited, Zymergen, Inc. and Ginkgo Bioworks Holdings, Inc., andCandy Digital, Inc. and Fanatics Holdings, Inc. (an existing portfolio company). In addition, SVF1 exchanged all shares in two
portfolio companies for shares in their affiliated companies in prior years, which are also existing portfolio companies. The
acquisition costs and disposal prices (sale prices) of these investments are also deducted in this section.
*7 Investments acquired through dividends in kind from existing portfolio companies are deducted from the investment count.
These include two investments acquired from Arm (Treasure Data and Acetone Limited (an intermediate holding company thatowns approximately 48% of the equity interest in Arm China)) and two investments acquired from Reef Global Inc. (REEF
Proximity Aggregator LLC and Parking Aggregator LLC).

Capital deployment of SVF1
As of March 31, 2024

Committed capital (A)Drawn capital*1 (B)Return of capital (non-recallable) (C)Outstanding capital*2 (D) = (B) – (C)Remaining committed capital (E) = (A) – (B)(Billions of U.S. dollars)

Total

The Company

Third-party
investors

98.6
87.2
37.3
49.9
11.4

33.1
29.9
9.2
20.7
3.2

65.5
57.3
28.1
29.2
8.2

Note: The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that was satisfied by using Arm
shares (all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1.
*1 Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after
the capital was drawn.
*2 At the fiscal year-end, $13.3 billion of the $29.2 billion of outstanding capital from third-party investors was attributable topreferred equity commitment.

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Status of SVF2 investments
As of March 31, 2024

Total ((1) + (2) + (3) + (4) below)(Billions of U.S. dollars)

Cumulative
number ofinvestments

Cumulative
investment
cost

Cumulative
investment
returnCumulativeloss*1Jan - Mar

YTD

283

52.4

33.1

(19.3)

(0.3)

(1.0)

Number ofinvestments

Investment
cost

Exit price

Cumulative
realized
gain (loss)*1

Partial exit
Full exit

–
11

0.4
2.6

0.3
3.1

(0.1)
0.5

Total

11

3.0

3.4

0.4

(1) Exited investments
Realized loss
recorded for fiscal 2023
Jan - Mar

YTD

(0.0)
(0.7)
(0.2)

(0.7)

(2) Investments before exit (investments held at the fiscal year-end)*2
Unrealized
valuation gain (loss)
recorded for fiscal 2023

Number ofinvestments

Investment
cost*4

Fair value*4

Cumulative
unrealized
valuationloss

Jan - Mar

YTD

Public*Private

16
256

8.6
40.8

4.0
25.9

(4.6)
(14.9)

(0.4)
0.1

(1.0)
(0.2)

Total

272

49.4

29.9

(19.5)

(0.3)

(1.2)

3

(Reference)

Investment loss
recorded for fiscal 2023

Effects of financial support to WeWork*5
Effects of share exchanges*6
Net of the above effects(Billions of U.S. dollars)

Cumulative
number ofinvestments

Cumulative
investment
cost

Cumulative
investment
returnCumulativeloss*1

(4)
(2)
277

–
(0.0)
52.4

–
(0.0)
33.1

–
–
(19.3)

Note: The total and the sum of the breakdown in the table may not match, as the amount of each item is rounded to the nearest unit.
*1 Before deducting third-party interests, taxes, and expenses*2 The classification of portfolio companies as public/private is based on their status as of the fiscal year-end.
*3 Includes Pear Therapeutics, Inc. and WeWork, which are traded in the over-the-counter market. The carrying amount of
WeWork stocks has been written down to zero U.S. dollars; this decision was based on the Restructuring Support Agreement
the company entered into with its major debt investors on November 6, 2023.
*4 The investment cost and fair value of investments before exit in SVF2 include those related to minor ownership percentage inanother portfolio company that was received as part of the consideration for SVF2’s investment in a certain portfolio company.
*5 WeWork senior secured notes (i) purchased by SVF2 in accordance with an agreement between the Company and WeWork in
October 2019 (redeemed by WeWork in the first quarter), the convertible bonds (ii and iii) and notes with a face value of $0.30
billion (iv) held by SVF2 in accordance with an agreement made in March 2023 among WeWork, its principal bondholders,
SVF2, and others to support the restructuring of WeWork’s debt, are deducted from the investment count.
*6 For investments in which share exchanges occurred, the acquisition costs of new investments and disposal prices (sale prices) ofinvestments initially held are deducted for the purpose of presenting the cumulative net investment performance. During thesecond quarter, SVF2 exchanged a portion of its shares in XCOM Labs, Inc. for shares in Globalstar, Inc; during the fourth
quarter, SVF2 exchanged its shares in ODA Group Holding AS for shares in Mathem Holdings AB.

Capital deployment of SVF2
As of March 31, 2024

(3) Derivatives

Total
Derivative
cost

Fair value /settlement
price

Cumulative
derivative
gain (loss)

Unsettled
Settled

(0.0)
–

0.0
(0.3)

0.0
(0.3)

Total

(0.0)

(0.3)

(0.3)

Derivative gain (loss)
recorded for fiscal 2023
Jan - Mar

0.0

YTD

Interest anddividend
incomeCumulative
income0.1

0.1

Committed capital (A)Drawn capital (B)Remaining committed capital (C) = (A) – (B)

(0.0)
0.0

Note: Remaining committed capital includes recallable return of capital.

0.0(Reference: Breakdown of committed capital as of March 31, 2024)(4) Interest and dividend income from investments

Total(Billions of U.S. dollars)Interest and dividend income
recorded for fiscal 2023
Jan - Mar

YTD

–

0.1

Total committed capital
The Company’s equity commitment to investments outside the scope ofthe co-investment program
The Company’s preferred equity commitment to SVF2 LLC*
The Company’s equity commitment to SVF2 LLC
MgmtCo’s equity commitment to SVF2 LLC

59.8
57.3
2.5

(Billions of U.S. dollars)

59.8
12.5
32.3
12.4
2.6

Note: At the fiscal year-end, no capital has been paid by MgmtCo.
* SVF2 LLC (SVF II Investment Holdings LLC) is a subsidiary of the Company established under SVF2 and indirectly holds investments
subject to the co-investment program.

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Status of LatAm Funds investments

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Capital deployment of LatAm Funds

As of March 31, 2024

At the fiscal year-end, LatAm Funds posted $6.3 billion in cumulative returns on $7.4 billion

At the fiscal year-end, total committed capital for LatAm Funds was $7.8 billion, with drawn

in investments, with a gross loss of $1.1 billion since inception. Of this, investment gain for

capital totaling $7.4 billion.

fiscal 2023 was $0.5 billion (¥73.9 billion).

Outline of principal funds in the segment
As of March 31, 2024

The funds aim to maximize returns from a medium- to long-term perspective throughSVF1 distribution waterfall

investments in high-growth-potential companies leveraging AI. SVF1’s investment period

Payment of Preferred
Equity Coupons

has ended, and the remaining undrawn capital is reserved for fixed distributions andoperating expenses.
SVF1

SVF2

LatAm Funds

Primary limited
partnership

SoftBank Vision Fund
L.P.

SoftBank Vision FundII-2 L.P.

SBLA Latin America Fund
LLC

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

98.6

59.8*2

7.8*2

The Company: 33.1*1
Third-party investors:
65.5

The Company: 57.2
Third-party investor(MgmtCo): 2.6*3

The Company: 7.4
Third-party investor(MgmtCo): 0.4*3

Manager

SBIA(The Company’s wholly
owned U.K. subsidiary)

SBGA(The Company’s wholly owned U.K. subsidiary)

Investment
periodEnded onSeptember 12, 2019

To be determined by the manager

Fund life

Until November 20,
2029 + up to
Until October 4, 2032 + up to
two one-year extensions two one-year extensions option by SBGA
option by SBIA

Preferred equity investors

1

Return of Preferred
Equity Contributions
Preferred equity investors

2

Return of Equity
Contributions
Equity investors

3

Payment of Equity
Preferred Return
Equity investors

4
Return of Contributions & Hurdle Return

Payment of
Performance
Fees

Payment of
Remaining Gain

SBIA

Equity investors

5
Sharing Gains Above Hurdle*1 The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that was satisfied by using Arm shares (all said shares have been contributed) and $2.5 billion to be used for an incentive scheme related to SVF1.
*2 Effective September 27, 2023, SBGA, the manager of SVF2 and LatAm Funds, may allocate the remaining committed capital from SVF2 to LatAm Funds up to the amount of $4 billion and, in such circumstances, the total commitment to SVF2 will be reduced.
*3 A co-investment program has been introduced for SVF2 and LatAm Funds for the Company’s management. MASA USA LLC (“MgmtCo”), an investment entity for the co-investment program, participates in two funds. The interest attributable to MgmtCo is treated as athird-party interest in the Company’s consolidated financial statements. For details, see “a. Co-investment program with restricted rights to receive distributions” in “(1) Related party transactions and balances” under “Note 45. Related party transactions” in “Notes toConsolidated Financial Statements” in “Financial Report 2024.”

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

SoftBank Segment
1. Segment income increased by 40.9% YoY, driven primarily by a reversal in the consumer business’s income decline and sustained growth in the Media & EC business and theenterprise business.
2. Mobile services revenue increased for the first time in three years, primarily due to the waning impact of reduced communication charges and an increase in the number ofsmartphone subscribers.

Overview
Segment results include the business activities of SoftBank Corp. and its subsidiaries mainly
in Japan, such as the provision of mobile services and sale of mobile devices, as well as theprovision of broadband, advertising and commerce services. Under its Beyond Carrier strategy,
SoftBank Corp. aims to achieve sustainable growth in its core telecommunications business,while expanding its domains beyond telecommunications through internet services, such asYahoo! JAPAN and LINE, and the development of businesses that utilize advanced technologies
including AI, IoT, and FinTech, the latter encompassing the cashless payment service PayPay.
Financial results
Segment income was ¥835,076 million, an increase of ¥242,294 million (40.9%) year on
year. This was mainly due to the continued income growth in the Media & EC business andthe enterprise business along with a reversal of the income decline in the consumer business.
Other gains and losses also improved significantly. Although SoftBank Corp. recorded a gain of¥294,843 million from the remeasurement relating to business combination in the third quarterof fiscal 2022 for its consolidation of PayPay Corporation, this gain is not reflected on SBG’sconsolidated financial statements, as PayPay Corporation has consistently been classified as a
subsidiary of SBG.
In the consumer business, the increase in income was mainly due to increases in productsales, mobile service revenue, and broadband service revenue. Among these, mobile service
revenue increased for the first time in three years, primarily due to an increase in the numberof smartphone subscribers and the waning impact of the reduction in mobile service charges
implemented in the spring of 2021. In the Media & EC business, the increase in income wasdue to an increase in commerce sales and growth in account advertising, which increased media
sales. Additionally, reductions in sales promotion and advertising expenses also contributed to arise in income, among other factors. In the enterprise business, the increase was due to higher
sales of cloud services and other products, driven by the accelerated digitalization of enterprises.
The improvement in other gains and losses was primarily due to the complete reversal ofa ¥19,176 million provision recorded in fiscal 2022. This provision was related to a litigation
over telecommunication line installation and other items awarded by the Japan Post Group.
The reversal occurred in fiscal 2023 following the appeal court’s March 2024 decision, which
SoftBank Group Report 2024

overturned the initial trial court ruling that had ordered SoftBank Corp. to pay damages. The
improvement also reflected the recording of dilution gain from changes in equity interest of¥20,299 million in fiscal 2023, mainly for equity method associate, Webtoon Entertainment Inc.
Other factors driving the change include the recording of impairment loss on equity method
investments of ¥31,304 million in fiscal 2022 and ¥22,345 million in fiscal 2023 in relation
to DEMAE-CAN CO., LTD. For details on other gains and losses, see “41. Other gain (loss)” in“Notes to Consolidated Financial Statements” in “Financial Report 2024.”
PayPay Corporation and PayPay Card Corporation saw a reduction in losses mainly due toincreases in sales from the expansion of gross merchandise volume and interest income fromthe expansion of the revolving balance. A new fee structure introduced for a certain balance
top-up method (SoftBank, Y!mobile Pay on One Bill) along with cost reductions arising from thenarrowing the target audience for campaigns, also contributed to loss reduction.
For more information on SoftBank Corp.’s financial results and business operations, see its website.

Net sales(Billions of yen)

6,000

Segment income(income before income tax)
5,956.5(Billions of yen)

6,083.8

1,000

835.1
750

4,500

592.8
3,000

500

1,500

250

0

’22

’23

(FY)

0

’22

’23

(FY)

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Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Arm Segment
Arm’s business continues to benefit from technology companies increasing investments in AI. Arm recorded the highest net sales (U.S. dollar-based) in both the fourth quarterand fiscal 2023.
Net sales increased by 13.6% YoY in U.S. dollar terms, driven by the highest-ever license and other revenue and very strong royalty revenue, which was only slightly
below fiscal 2022’s record level. In yen terms, net sales increased by 21.6%.
		 – Royalty revenue decreased slightly by 0.9% YoY (U.S. dollar-based) as weak chip sales in the first half of fiscal 2023 were offset by a recovery in the second half, boosted by higher
royalties per chip from Arm’s latest Armv9 technology and culminating in record royalty revenue in the fourth quarter.
		 – License and other revenue increased by 38.5% YoY (U.S. dollar-based) with Arm signing high value, long-term deals with major technology companies developing chips for a wide range
of applications, including future smartphones, automotive, consumer electronic devices, and AI applications.
Segment loss of ¥33.2 billion, with strong net sales being offset by an increase in expenses related to stock compensation schemes combined with an increase inheadcount to enhance R&D capability

Overview

Net sales

Segment income(income before income tax)*(Billions of yen)(Billions of yen)Arm’s operations primarily consist of licensing semiconductor intellectual property (IP), including
the design of energy-efficient microprocessors and associated technologies.
Semiconductor industry trends can have a significant impact on Arm’s financial results, both

500

positively and negatively. Industry growth benefits Arm’s royalty revenue, which can grow alongwith industry sales. Industry growth can also encourage Arm’s customers to increase design
activity, creating new opportunities for Arm to license its latest technologies, and thus driving

375

50

464.0
381.7

48.7

25

license and other revenue.
Arm will continue to increase investments in R&D in order to build the future of computing.

250

0

125

-25

0

-50

Arm is creating CPUs and related technologies, such as graphics processors, AI accelerators,
and integrated subsystems, that will enable its customers to develop the next generation ofcomputing devices.

-33.2
’22

’23

(FY)

’22

’23

(FY)

* Segment income included amortization expenses of ¥65,581 million for fiscal 2023 and ¥61,467 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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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Financial results

consumer electronic devices, and AI applications. The current strong demand for licensing lays

Net sales in U.S. dollars

the foundation of a future royalty stream from chips that are to be developed and introduced to

Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based on U.S.

the market in the coming years.

.
dollars.
(Millions of U.S. dollars)

Fiscal 2022

Fiscal 2023

ChangeChange %Royalty revenue

1,783

1,767

(16)

(0.9%)

License and other revenue

1,034

1,431

397

38.5%

Total

2,817

3,198

381

13.6%

Note: F rom the first quarter, the names of sales categories have been changed from “Technology royalty” and “Technology non-royalty”
to “Royalty revenue” and “License and other revenue,” respectively. The aggregation method remains unchanged.

Net sales reached a record high, increasing by $381 million (13.6%) year on year.

Segment income
Segment loss was ¥33,215 million, deteriorating by ¥81,878 million year on year. This was
mainly due to an increase in expenses related to stock compensation schemes as well as anincrease in the number of employees, particularly technology-related personnel, as Arm rapidly
increases its R&D capability. In fiscal 2023, Arm’s headcount increased by 1,133 people (19%)
with more than 80% of the net new hires being in engineering roles.
* The World Semiconductor Trade Statistics, November 2023. Includes memory and analogue chips that do not contain processor
technologies.

Royalty revenue
Royalty revenue fell slightly short of fiscal 2022’s record high, decreasing by $16 million(0.9%). In the first half of fiscal 2023, weak sales in the semiconductor industry, particularly insmartphones and other consumer electronic devices, continued from fiscal 2022 and impacted

Operations
Royalty units*(Billion)royalty revenue. However, this was largely offset by strong growth in royalty revenue in thesecond half, driven by an industry recovery and increased penetration of Armv9 technology,
which commands a higher royalty fee. On a quarterly basis, Arm achieved another recordin royalty revenue. According to the World Semiconductor Trade Statistics (WSTS), global
semiconductor sales are expected to increase by 13.1% year on year in 2024.* A recovery
in industry sales could boost Arm’s royalty revenue. Furthermore, Arm’s focus on gaining its
market share in automotive and cloud servers, along with the accelerated adoption of advanced

Royalty units as reported by Arm’s
licensees

Fiscal 2022

Fiscal 2023

ChangeChange %

30.6

28.6

(2.0)

(6.5%)* This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for twelve
months ended December 31, 2023, as reported by licensees in the royalty reports. Arm’s licensees report their actual shipments ofroyalty units one quarter in arrears, and therefore, the royalty unit analysis in this report is based on chips shipped for twelve months
ended December 31, 2023. In contrast, royalty revenues are accrued in the same quarter the chips are shipped based on estimates.
Royalty unit data for 2022 has been restated based on updated information received from its licensees in the first quarter.

technologies such as Armv9 and compute subsystems (CSS) that integrate multiple Arm IPs, isanticipated to be a major driver of future royalty revenue growth.

Arm’s licensees reported shipments of 28.6 billion Arm-based chips for the 12 months fromJanuary 1 to December 31, 2023, a decrease of 6.5% year on year. This largely reflects the

License and other revenue

approximately 4.7% decline in the number of smartphones sold in 2023 compared to the priorLicense and other revenue increased by $397 million (38.5%) year on year, reaching a record

year.*

high. This was due to increasing investment by Arm’s customers into AI technologies and due

The decline in the number of smartphones sold was largely offset by an increase in theto more companies moving from a licensing technology one at a time to a subscription license

penetration of Armv9-based CPUs into high-end smartphones as well as market share gains inmodel where the customer accesses a wider range of technologies in return for a higher license

automotive applications and cloud servers. The net result being relatively flat royalty revenue

fee. In fiscal 2023, Arm signed high value, long-term deals with major technology companies

year on year.

developing chips for a wide range of applications, including future smartphones, automotive,* S&P Global, March 2024

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Message from Our CFO

Technology development
Arm and its licensees made the following technology-related announcements during fiscal

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Informationand networking equipment.
• In March 2024, Arm announced a new family of technologies to advance the progress

2023. For details on each technology development, please refer to the press releases posted on

towards fully autonomous vehicles. This includes new Armv9-based processors and subsystems

the websites of the announcing companies.

purpose-built for automotive, as well as virtual development platforms that can reduce thedevelopment of automotive solutions by up to two years.

• In May 2023, Arm announced its latest Total Compute Solutions for mobile applications
processors, TCS23, a platform for premium mobile computing devices, which will power

In addition, below technology development was announced after the end of fiscal 2023.

immersive games, real-time 3D experiences, and next-gen AI applications.
• In May 2023, NVIDIA Corporation announced a supercomputer built on the NVIDIA Grace• In April 2024, Google LLC announced Google Axion Processors, its first custom Arm-based

CPU Superchip, adding to a wave of new energy-efficient supercomputers based on the ArmCPUs designed for the data center, which provide up to 50% better performance and up to

Neoverse platform.

60% better energy-efficiency than comparable current-generation x86-based processors.

• In May 2023, NVIDIA Corporation and SoftBank Corp. announced that they are collaborating
on a pioneering platform for generative AI and 5G/6G applications that is based on the

For more information about Arm, its business, and its technology, see its website.

NVIDIA GH200 Grace Hopper Superchip and which SoftBank Corp. plans to roll out at new,
distributed AI data centers across Japan.
• In August 2023, Arm announced a new technology family for licensing, the Arm Neoverse
Compute Subsystems (CSS). These are pre-integrated and validated configurations ofinfrastructure products that will reduce development costs and improve time-to-market forcompanies developing chips for servers and networking equipment.
• In October 2023, Renesas Electronics Corporation announced the world’s most powerfulfamily of microcontrollers, the RA8 series, based on the Arm Cortex-M85 processor. The
Cortex-M85 integrates Arm Helium technology that provides four times more performanceacceleration for machine learning algorithms and is essential as AI becomes increasingly
important in edge and end-point devices.
• In November 2023, MediaTek Inc. announced the Dimensity 9300, its latest mobile chip with aone-of-a-kind All Big Core design targeting flagship smartphones. The Dimensity 9300 is
powered by four Arm Cortex-X4 cores, four Arm Cortex-A720 cores and Arm
Immortalis-G720. It is designed for significantly improved performance for on-device
generative AI processing, including running large language models on a smartphone.
• In November 2023, Microsoft Corporation announced the Azure Cobalt CPU, Microsoft’s first
custom silicon for servers. The Azure Cobalt CPU is based on 128 Arm Neoverse processors
and delivers 40% higher performance per watt than the current generation of Azure server
chips.
• In February 2024, Arm announced two new processors for the infrastructure needed for AI,
Arm Neoverse V3 and Neoverse N3, as well as the CSS, Arm Neoverse CSS V3 and CSS N3,
that will help accelerate the development of chips for AI in the data center, supercomputers,
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Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Financial Position
1. Status of investment assets
Carrying amount of investments from SVF (FVTPL)*1 increased by ¥524.8 billion

Carrying amount of investment securities increased by ¥1,355.5 billion fromfrom the previous fiscal year-end to ¥11,014.5 billion.*2

the previous fiscal year-end to ¥9,062.0 billion,*2 which included the following		 – This increase occurred despite a decrease in the U.S. dollar balance, reflecting thedepreciation of the yen against the U.S. dollar.
		 – ¥68.5 billion decrease at SVF1: The balance decreased by $5.86 billion on a U.S. dollar

carrying amounts:
		 – Alibaba shares of ¥3,757.1 billion (a decrease of ¥1,085.2 billion)
		 – T-Mobile shares of ¥2,275.8 billion (an increase of ¥1,506.6 billion): Following thebasis, due to decreases of $5.27 billion from divestments and $0.59 billion in the fairsatisfaction of the Contingent Consideration condition, the Company acquired 48.8

value of investments held at the fiscal year-end.

million T-Mobile shares for no additional consideration. These shares amounted to		 – ¥450.6 billion increase at SVF2: The balance decreased by $0.25 billion on a U.S.
dollar basis, mainly due to decreases of $1.83 billion in the fair value of investments
held at the fiscal year-end and $0.53 billion from divestments.*3 This occurred despite¥1,204.8 billion at the fiscal year-end.
		 – Bonds and other asset management products held by PayPay Bank of ¥512.0 billion (anincrease of ¥223.2 billion)

new*3 and follow-on investments totaling $2.14 billion.

2. Changes in liabilities associated with financing activities
Interest-bearing debt of SBG increased by ¥491.2 billion from the previous fiscal

Interest-bearing debt of wholly owned subsidiaries conducting fund procure-year-end.

ment increased by ¥1,114.1 billion from the previous fiscal year-end.*2

		 – SBG issued domestic hybrid bonds of ¥222.0 billion in April 2023. Together with		 – Raised $4.39 billion through the new conclusion of prepaid forward contracts using¥53.1 billion raised through a hybrid loan in May 2023, SBG successfully refinanced

Alibaba shares, while $2.49 billion in financial liabilities relating to sale of shares by

the USD-denominated NC6 undated hybrid notes of $2.0 billion (which were classified

prepaid forward contracts was derecognized following the physical settlement of aas equity), which it voluntarily redeemed on the first call date in July 2023.
		 – SBG redeemed domestic straight bonds of ¥399.9 billion that became due in March2024 and issued domestic straight bonds of ¥550.0 billion in the same month.

portion of such contracts previously entered into.
Interest-bearing debt of SVF decreased by ¥774.8 billion from the previous fiscal
year-end.
		 – SVF1 and SVF2 repaid borrowings totaling $6.35 billion made through asset-backed
finance.

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Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

3. Changes in equity
Total equity increased by ¥2,588.0 billion from the previous fiscal year-end.
		 – Disposal of Arm shares upon its IPO resulted in recording of ¥674.4 billion in capital

Ratio of equity attributable to owners of the parent (equity ratio) was 23.9% at
the fiscal year-end, compared with 20.6% at the previous fiscal year-end.

surplus (amount equivalent to gain on sale). Non-controlling interest in Arm at the
fiscal year-end was ¥236.8 billion.
		 – Other equity instruments decreased by ¥220.9 billion following the voluntary
redemption of USD-denominated NC6 undated hybrid notes.
		 – Retained earnings decreased due to a ¥227.6 billion net loss attributable to owners of
the parent.
		 – Exchange differences from the translation of foreign operations increased by ¥2,009.5
billion due to the weaker yen.
		 – Increase in non-controlling equity interest of SoftBank due to issuance of bond-typeclass shares in the amount of ¥120.0 billion*1 Investments from SVF (FVTPL) do not include SVF’s investments in the Company’s subsidiaries (primarily PayPay Corporation) or investments that were transferred from the Company to the funds and continue to be accounted for using the equity method (and are included in“Investments accounted for using the equity method”) prior to and after such transfer.
*2 Includes increases in the carrying amount due to a 13.4% depreciation of the yen against the U.S. dollar in the foreign currency exchange rate used for translations at the fiscal year-end*3 Includes share exchanges, acquisitions, and disposals as a result of restructuring of portfolio companies(Millions of yen)

Total assets
Total liabilities
Total equity

SoftBank Group Report 2024

March 31, 2023

March 31, 2024

ChangeChange %43,936,368
33,287,153
10,649,215

46,724,243
33,487,074
13,237,169

2,787,875
199,9212,587,954

6.3%
0.6%
24.3%

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Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Assets(Millions of yen)March 31, 2023

March 31, 2024

ChangeCash and cash equivalents

6,925,153

6,186,874(738,279)

Trade and other receivables

2,594,736

2,868,767

274,031

Derivative financial assets

249,414852,350

602,936

A

Other financial assets

371,313

777,996406,683

B

Inventories

163,781

161,863(1,918)Other current assets

282,085

550,984

268,899

Components

Main reasons for changes from the previous fiscal year-end

Current assets
A Derivative
financial assets• Derivative financial assets related to the prepaid forward contracts using
Alibaba shares increased by ¥644,078 million. The increase was due to a
decline in the share price and the depreciation of the yen, as well as thereclassification of those contracts due for settlement within one year as
current assets, despite the physical settlement of a portion of the contracts.
• Contingent value rights, which were received in June 2020 in relation to thedisposal of T-Mobile shares and recorded as derivative financial assets at theprevious fiscal year-end in the balance of ¥67,308 million, were vested onJune 1, 2023 and were derecognized after the Company received 3.6 million
T-Mobile shares. The shares are recorded as investment securities in the samemanner as the existing holdings of T-Mobile shares.

B Other financial
assetsInvestments from asset management subsidiaries increased by ¥259,735
million due to the acquisition of corporate bonds (primarily those ofinvestment grades with short time to maturity).

−

42,55942,559Total current assets

10,586,482

11,441,393

854,911

Property, plant and equipment

1,781,142

1,895,289

114,147

858,577

746,903(111,674)

Goodwill

5,199,480

5,709,874

510,394

Intangible assets

2,409,641

2,448,840

39,199Costs to obtain contracts

332,856

317,650(15,206)

Non-current assets

Investments accounted for using the equity method

730,440

839,208

108,768

C Goodwill

Arm’s goodwill increased by ¥423,325 million due to a 13.4% depreciation of
the yen against the U.S. dollar in the foreign currency exchange rate used fortranslations at the fiscal year-end. The entire amount of goodwill remains
attributable to SBG, even after the sale of a 10% stake in conjunction with
the IPO of Arm.

D Investments from
SVF (FVTPL)The carrying amount of investments at SVF increased mainly due to a 13.4%
depreciation of the yen against the U.S. dollar in the foreign currency
exchange rate used for translations at the fiscal year-end.
• The carrying amount of investments at SVF1 decreased by ¥68.5 billion. On a
U.S. dollar basis, the carrying amount decreased by $5.86 billion. The result
reflected decreases of $5.27 billion due to divestments and $0.59 billion due
to a decrease in the fair value of investments held at the fiscal year-end.
• The carrying amount of investments at SVF2 increased by ¥450.6 billion. On a
U.S. dollar basis, the carrying amount decreased by $0.25 billion. The result
mainly reflected decreases of $1.83 billion in the fair value of investments
held at the fiscal year-end and $0.53 billion due to divestments.*1 Thisoccurred despite new*1 and follow-on investments totaling $2.14 billion.
• The carrying amount of investments at LatAm Funds increased by ¥142.7
billion. On a U.S. dollar basis, the carrying amount increased by $0.29 billion.
The result reflected increases of $0.47 billion in the fair value of portfolio
companies held at the fiscal year-end*2 and $0.08 billion due to follow-on
investments. These increases were partially offset by a decrease of $0.26
billion due to divestments.
For details, see “SoftBank Vision Funds Segment” on page 89.

Assets classified as held for sale

Right-of-use assets

10,489,722

11,014,487

524,765

SVF1

6,110,527

6,042,046(68,481)

SVF2

Investments from SVF (FVTPL)C

D3,646,305

4,096,880

450,575

LatAm Funds

732,890875,561

142,671

Investment securities

7,706,501

9,061,972

1,355,471

Derivative financial assets

1,170,845

385,528(785,317) F

Other financial assets

2,303,620

2,424,282

120,662

Deferred tax assets

210,823

245,954

35,131Other non-current assets

156,239

192,863

36,624

Total non-current assets

33,349,886

35,282,850

1,932,964

Total assets

43,936,368

46,724,243

2,787,875

SoftBank Group Report 2024

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Message from Our CFO

Components

Main reasons for changes from the previous fiscal year-end

E Investment
securities• The carrying amount of Alibaba shares decreased by ¥1,085,242 million($11.45 billion), with the balance at the fiscal year-end being ¥3,757,063
million ($24.81 billion). This decrease is mainly attributable to a $10.57 billion
reduction in fair value due to the decline in the company’s share price(Reference: a fall from $102.18 per ADR as of March 31, 2023 to $72.36 per
ADR as of March 31, 2024). Additional factors included a decrease of¥125,307 million ($0.88 billion) following the physical settlement of a portionof the prepaid forward contracts using the company’s shares in the third andfourth quarters.
• The carrying amount of T-Mobile shares increased by ¥1,506,621 million($9.27 billion), with the balance at the fiscal year-end being ¥2,275,827
million ($15.03 billion). This increase mainly reflected the receipt of 48.8
million shares of T-Mobile, valued at ¥1,204,804 million at the fiscal year-end,following the satisfaction of the condition for the Contingent Consideration.
The increase in the company’s share price also contributed to the increase in
the carrying amount (Reference: a rise from $144.84 per share as of March
31, 2023 to $163.22 per share as of March 31, 2024).
• The carrying amount of the three stocks combined—Symbotic,*3 NVIDIA
Corporation, and Deutsche Telekom,*4—increased by ¥359,042 million.
The carrying amounts of stocks mentioned above also reflected an increasecaused by a 13.4% depreciation of the yen against the U.S. dollar in the foreign
currency exchange rate used for translations at the fiscal year-end.
• The carrying amount of bonds and other asset management products held by
PayPay Bank Corporation increased by ¥223,211 million, with the balance at
the fiscal year-end being ¥511,994 million.

F Derivative
financial assets• The Contingent Consideration related to the acquisition of T-Mobile shares
was derecognized upon the receipt of the shares (balance at the previous
fiscal year-end: ¥833,770 million).
• Derivative financial assets related to prepaid forward contracts using Alibaba
shares decreased by ¥131,974 million. This was due to reclassifying assets
with a remaining term of one year or less as current assets, despite a decreasein the Alibaba’s share price and the depreciation of the yen.

*1 Includes share exchanges, acquisitions, and disposals as a result of restructuring of portfolio companies*2 Includes the impact from the stronger local currencies against the U.S. dollar*3 The shares of Symbotic are also included in “Investments from SVF (FVTPL)” for those held by SVF2, and in “Other Financial Assets(Current)” for those held by SB Northstar.
*4 Includes the impact from the weaker euro against the U.S. dollar, as the shares of Deutsche Telekom are held by a U.S. subsidiary of theCompany

SoftBank Group Report 2024

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information(Reference) Cash and cash equivalents by entity
Consolidated cash and cash equivalents decreased by ¥738.3 billion from the previous
fiscal year-end to ¥6,186.9 billion. Of this, cash and cash equivalents of SBG and wholly
owned subsidiaries conducting fund procurement, etc. decreased by ¥1,061.0 billion to¥3,024.0 billion. For details, see “Cash Flows” on page 107.
(Millions of yen)

SBG and wholly owned subsidiaries
conducting fund procurement, etc.*1
SBG*1
Wholly owned subsidiaries conducting
fund procurement
SB Northstar
SoftBank Vision Funds segment
SVF1
SVF2
LatAm Funds
SBIA, SBGA, SBLA Advisers Corp.
SoftBank segment
SoftBank Corp.
LY Corporation*2
PayPay Corporation, PayPay Bank
Corporation,*3 PayPay Card Corporation
Others*2
Arm segment*4
Arm Holdings plc and its subsidiaries
Others*1, 4
Total

March 31, 2023

March 31, 2024

Change4,085,004
3,523,393

3,023,961
2,198,869(1,061,043)(1,324,524)

543,380
18,23130,584
794,508(512,796)
776,277

72,15936,9302,818
97,54665,748102,063
3,084
58,992(6,411)
65,133
266(38,554)

280,768
443,424

482,763
325,391

201,995(118,033)

857,430
477,545739,759444,960(117,671)(32,585)

207,484
364,045
6,925,153

291,127
649,026
6,186,874

83,643284,981(738,279)*1 As of September 21, 2023, the Company merged with the Company’s former wholly owned subsidiary Shiodome Project 9
GK in an absorption-type merger. Amounts at the previous fiscal year-end have been restated retrospectively to reflect themerger.
*2 As of October 1, 2023, Z Holdings Corporation completed an intragroup reorganization, which included a merger primarily
involving the three companies: the company itself, LINE Corporation, and Yahoo Japan Corporation, and changed its tradename to LY Corporation. Amounts at the previous fiscal year-end have been restated retrospectively in accordance with theintragroup reorganization.
*3 Cash and cash equivalents of PayPay Bank Corporation at the fiscal year-end were ¥248,298 million.
*4 “Arm segment” previously included in “Others” has been independently presented and amounts at the previous fiscal
year-end have been restated retrospectively.

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Liabilities(Millions of yen)March 31, 2023

March 31, 2024

Change5,129,047

8,271,143

3,142,096

184,105

149,801(34,304)

Deposits for banking business

1,472,260

1,643,155

170,895

Trade and other payables

2,416,872

2,710,529

293,657

Derivative financial liabilities

82,612

195,090

112,478

Other financial liabilities

180,191

31,801(148,390) A

Income taxes payable

367,367

163,226(204,141)

Provisions

72,35044,704(27,646)

Other current liabilities

675,920801,285

125,365Interest-bearing debt
Lease liabilities

Liabilities directly relating to assets
classified as held for sale

–

9,561

9,561

Total current liabilities

10,580,724

14,020,295

3,439,571

Interest-bearing debt

14,349,147

12,296,381(2,052,766)

Components

Main reasons for changes from the previous fiscal year-end*See page 105 for a breakdown of interest-bearing debt.
Current liabilities
A Otherfinancial liabilities

By the end of the second quarter, an allowance (allowance for financial
guarantee contract losses) was recorded for the entire credit support for aletter of credit facility provided by financial institutions totaling $1.43 billion
to WeWork (the beginning balance of the allowance was ¥152,365 million).
In the third quarter, the allowance was allocated to the loan that wasrecognized as a result of the fulfillment of the guarantee obligations, resulting
in a ¥152,365 million decrease in the allowance for financial guarantee
contract losses from the beginning balance. At the fiscal year-end, thecarrying amount of the loan was zero yen, as the allowance has been
allocated.

B Income taxes
payableSBG paid income taxes during the first quarter. This payment was accrued infiscal 2022 based on taxable income, including gains on the sale of Alibaba
shares to subsidiaries conducting fund procurement, which was carried out inrelation to the early physical settlement of prepaid forward contracts using
Alibaba shares.

B652,892

644,706(8,186)

Third-party interests in SVF

4,499,369

4,694,503

195,134

Derivative financial liabilities

899,351

41,238(858,113) D

Non-current liabilities

Other financial liabilities

58,54557,017(1,528)Provisions

163,627

167,902

4,275

C Third-party
interests in SVF

The carrying amount increased due to a 13.4% depreciation of the yen
against the U.S. dollar in the foreign currency exchange rate used fortranslations at the fiscal year-end. For details, see “(2) Third-party interests in
SVF” under “7. SoftBank Vision Funds business” in “Notes to Consolidated
Financial Statements” in “Financial Report 2024.”

D Derivative
financial liabilities

Derivative financial liabilities related to prepaid forward contracts using
Alibaba shares decreased by ¥805,039 million, primarily as a result of adecline in Alibaba’s share price.

E Deferred tax
liabilities

Following the completion of the physical settlement of a portion of the
prepaid forward contracts using Alibaba shares in January 2024, which had
been conducted in phases since October 2021 by Skybridge LLC, theCompany’s wholly owned financing subsidiary, and constituted all suchcontracts held by Skybridge LLC, the deferred tax liabilities recognized at theprevious fiscal year-end were reversed. These liabilities were based on the
future tax estimates related to the Alibaba shares and associated derivatives.

Lease liabilities

1,828,557

1,253,039(575,518)

Other non-current liabilities

254,941

311,993

57,052

Total non-current liabilities

22,706,429

19,466,779(3,239,650)

Total liabilities

33,287,153

33,487,074

199,921

Deferred tax liabilities

SoftBank Group Report 2024

C

E

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Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information(Reference) Interest-bearing debt and lease liabilities (current and non-current)(Millions of yen)March 31, 2023

SBG and wholly owned subsidiaries
conducting fund procurement, etc.
SBG
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries conducting
fund procurement*1
Borrowings
Financial liabilities relating to sale of sharesby prepaid forward contracts
SB Northstar
Borrowings
SoftBank Vision Funds segment
SVF1
Borrowings
SVF2
Borrowings
SBIA, SBGA, SBLA Advisers Corp.
Lease liabilities
SoftBank segment
SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
LY Corporation*2
Borrowings
Corporate bonds
Lease liabilities
PayPay Corporation, PayPay Bank
Corporation,*3 PayPay Card Corporation
Other*2
Arm segment*4
Arm Holdings plc and its subsidiaries
Lease liabilities
OthersOther interest-bearing debt
Lease liabilities*4
Total

SoftBank Group Report 2024

March 31, 2024

Change12,635,554

14,239,518

6,306,590
381,851
5,753,022
10,717161,000

6,796,406
462,977
6,147,578
9,351
176,500

489,816
81,126 A
394,556 B(1,366)
15,5006,328,964
2,065,361

7,443,112
2,270,601

1,114,148
205,240 C

4,263,603––

5,172,511––

908,908 D––

552,681552,681770,004
770,004
14,95014,950––547,894
547,894
15,94815,948(552,681)(552,681) E(222,110)(222,110) E
998
998

4,149,812
3,080,878
578,684
490,249
1
1,268,867
608,177
578,987
81,703

4,373,826
2,994,039
827,781
466,005
86,001
1,122,485
591,338
469,270
61,877224,014(86,839)
249,097(24,244)
86,000(146,382)(16,839)(109,717)(19,826)

396,075
319,937

503,714321,069

107,639
1,132

28,70928,70934,63034,630

5,921
5,921

130,01448,588133,442
69,505

3,428
20,917

20,315,191

21,362,031

1,046,840

1,603,964

Components

Details

SBG and wholly owned subsidiaries conducting fund procurement, etc.
SBG
A Borrowings

In the first quarter, ¥53.1 billion was borrowed through a hybrid loan.

B Corporate bonds• In the first quarter, domestic hybrid bonds with a face value of ¥222.0 billion were issued.
• In the first quarter, foreign currency-denominated senior notes with face values of $0.16 billion
and 0.63 billion euros and domestic straight bonds with a face value of ¥19.5 billion wereredeemed upon maturity.
• In the second quarter, domestic hybrid bonds with a face value of ¥15.4 billion were prematurely redeemed.
• In the fourth quarter, domestic straight bonds with a face value of ¥399.9 billion wereredeemed upon maturity.
• In the fourth quarter, domestic straight bonds with a face value of ¥550.0 billion were issued.
• Foreign currency-denominated senior notes with face values of $0.10 billion and 0.07 billion
euros, as well as domestic straight bonds with a face value of ¥2.1 billion and domestic subordinated bonds with a face value of ¥20.9 billion, were repurchased from the market.
• The carrying amount of foreign currency-denominated straight bonds increased due to a
13.4% depreciation of the yen against the U.S. dollar in the foreign currency exchange rateused for translations at the fiscal year-end.

Wholly owned subsidiaries conducting fund procurement
C Borrowings

Borrowings of $8.50 billion (balance at the previous fiscal year-end: ¥1,126.6 billion) madethrough asset-backed finance using Arm shares were repaid prior to Arm’s IPO in September
2023. After the IPO, new borrowings of $8.50 billion were secured through a margin loan using
Arm shares (balance at the fiscal year-end: ¥1,274.9 billion).
For details, see “(1) Components of interest-bearing debt” under “22. Interest-bearing debt” in“Notes to Consolidated Financial Statements” in “Financial Report 2024.”

D Financial liabilities
relating to sale ofshares by prepaid
forward contracts• In the first quarter, $4.39 billion was raised through prepaid forward contracts (forward
contracts) using Alibaba shares.
• Financial liabilities relating to sale of shares by prepaid forward contracts of ¥356,925 million($2.49 billion) were derecognized due to the physical settlement of a portion of the prepaid
forward contracts using Alibaba shares in the third and fourth quarters.
• The carrying amount increased due to a 13.4% depreciation of the yen against the U.S. dollar
in the foreign currency exchange rate used for translations at the fiscal year-end.
For details, see “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under“22. Interest-bearing debt” in “Notes to Consolidated Financial Statements” in “Financial Report
2024.”SoftBank Vision Funds segment
SVF1 and SVF2
E Borrowings• SVF1 fully repaid $4.16 billion in borrowings made through asset-backed financing.
• SVF2 repaid $2.19 billion in borrowings made through asset-backed financing.

*1 The interest-bearing debt of wholly owned subsidiaries engaged in fund procurement is nonrecourse to SBG.
*2 As of October 1, 2023, Z Holdings Corporation completed the intragroup reorganization, which included a merger primarily
involving the three companies: the company itself, LINE Corporation, and Yahoo Japan Corporation, and changed its trade nameto LY Corporation. Amounts at the previous fiscal year-end have been restated retrospectively in accordance with thereorganization.
*3 Deposits for banking business of PayPay Bank Corporation are not included in interest-bearing debt.
*4 “Arm segment” previously included in “Others” has been independently presented and amounts at the previous fiscal year-end
have been restated retrospectively.

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Equity(Millions of yen)March 31, 2023

March 31, 2024

ChangeCommon stock

238,772

238,772–

Capital surplus

2,652,790

3,326,093

673,303A(220,856)

B

Other equity instruments
Retained earnings
Treasury stock

414,055

193,199

2,006,238

1,632,966(373,272) C(38,791)(22,725)

16,066

Accumulated other comprehensive income

3,756,785

5,793,820

2,037,035

Total equity attributable to owners of the parent

9,029,849

11,162,125

2,132,276

Non-controlling interests

1,619,366

2,075,044

455,678

Total equity

10,649,215

13,237,169

2,587,954

SoftBank Group Report 2024

D

Components

Main reasons for changes from the previous fiscal year-end

A Capital surplus

In the second quarter, ¥674,370 million ($4.65 billion) was recorded,
representing the gain on the sale of Arm shares at the IPO. For details of thetransaction, see “Intragroup Transaction of Arm Shares and IPO of Arm” onpage 78.

B Other equity
instruments

In the second quarter, the Company redeemed USD-denominated NC6undated hybrid notes ($2.00 billion) on the first voluntary call date. The notes
had been classified as equity instruments under IFRSs.

C Retained earnings

Net loss of ¥227,646 million attributable to owners of the parent wasrecorded.

D Accumulated
othercomprehensive
incomeExchange differences from the translation of foreign operations, which arosefrom translating foreign subsidiaries and associates into yen, increased by¥2,009,461 million mainly due to the weaker yen against the U.S. dollar in
the foreign currency exchange rate used for translations.

E Non-controllinginterests• At the fiscal year-end, the amount of non-controlling interests in Arm was¥236,849 million.
• SoftBank Corp. issued bond-type class shares in the amount of ¥120,000
million.

E

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Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Cash Flows
1. Cash flows from operating activities resulted in net cash inflow of ¥250.5 billion, despite outlays for income taxes amounting to ¥885.6 billion.
2. Cash flows from investing activities: ¥841.5 billion cash outflow (net)Payments totaling ¥800.9 billion were made for investment acquisitions, primarily driven by the expansion of strategic investments by SBG and its wholly owned subsidiaries. Additionally, there was an increase in investments in bonds and other asset management products by PayPay Bank.
Monetization and investments continued at SVF– Payments for acquisition of investments by SVF: ¥212.0 billion– Proceeds from sales of investments by SVF: ¥922.0 billion
Outlays of ¥622.6 billion for the purchase of property, plant and equipment and intangible assets due to capital expenditure mainly at SoftBank

3. Cash flows from financing activities: ¥606.2 billion cash outflow (net)
The Company received proceeds from the disposal of Arm shares and conducted financing through prepaid forward contracts using Alibaba shares, while repaying
borrowings made by SVF through asset-backed finance. Distributions and repayments to third-party investors were made at SVF1.
– Proceeds from interest-bearing debt: ¥5,914.1 billion
			•	Main proceeds at SBG: ¥1,361.2 billion				(from issuance of domestic hybrid bonds with a face value of ¥222.0 billion anddomestic straight bonds with a face value of ¥550.0 billion, short-term borrowingsof ¥536.1 billion, and a hybrid loan of ¥53.1 billion)			•	Proceeds at wholly owned subsidiaries conducting fund procurement: ¥1,841.9 billion				($8.50 billion through a margin loan using listed Arm shares, $4.39 billion throughprepaid forward contracts using Alibaba shares)– Repayment of interest-bearing debt: ¥5,889.2 billion
			•	Main outlays at SBG: ¥1,087.2 billion				(for redemption and repurchase of bonds totaling ¥580.6 billion, including domestic
straight bonds with a face value of ¥399.9 billion that matured in March 2024, andrepayment of short-term borrowings of ¥506.6 billion)			•	Main outlays at wholly owned subsidiaries conducting fund procurement: ¥1,236.2
billion				(for repayment of asset-backed finance using Arm shares of $8.50 billion)			•	Outlays at SVF: ¥922.4 billion				(for repayment of borrowings totaling $6.35 billion made through asset-backed
finance at SVF1 and SVF2)– Distributions and repayments to third-party investors at SVF: ¥783.5 billion– Proceeds from the partial sales of shares of subsidiaries to non-controlling interests:¥747.6 billion
			• Proceeds of $5.12 billion from the disposal of Arm shares upon its IPO– Payment for redemption of other equity instruments: ¥277.8 billion
			• Redemption of USD-denominated NC6 undated hybrid notes of $2.00 billion

4. Balance of cash and cash equivalents at the fiscal year-end and its changes
The balance of cash and cash equivalents stood at ¥6,186.9 billion at the fiscal year-end, a decrease of ¥738.3 billion from the previous fiscal year-end, as a result ofcash flows from operating, investing, and financing activities, combined with the effect of exchange rate changes on cash and cash equivalents, etc. of ¥458.9 billion
reflecting the weaker yen.

SoftBank Group Report 2024

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Who We Are

Message from Our CEO

Message from Our CFO(Millions of yen)

Fiscal 2022

Fiscal 2023

ChangeCash flows from operating activities

741,292

250,547(490,745)

Cash flows from investing activities

547,578(841,461)(1,389,039)

Cash flows from financing activities

191,517(606,222)(797,739)

Effect of exchange rate changes on cash andcash equivalents, etc.

275,765

458,857

183,092

Increase (decrease) in cash and cash equivalents

1,756,152(738,279)(2,494,431)

Cash and cash equivalents at the beginning of the year

5,169,001

6,925,153

1,756,152

Cash and cash equivalents at the end of the year

6,925,153

6,186,874(738,279)

Growth Assets

Foundation for Our Growth(Billions of yen)

1,000

741.3

Cash flows from operating activities
Cash flows from operating activities resulted in a net inflow of ¥250,547 million. This wasachieved despite outlays for income taxes amounting to ¥885,617 million and the acquisition of
corporate bonds (primarily those of investment grades with short time to maturity) by SB
Northstar for the purpose of investing surplus funds.
The amount of income taxes paid included the payment of ¥368,632 million in income taxes
by SBG. This was primarily due to the payment in the first quarter of income taxes on taxable
income for fiscal 2022 arising in conjunction with the physical settlement of the prepaid
forward contracts using Alibaba shares and an interim payment of income taxes of ¥118,026
million in the third quarter.

Components

Primary details

Payments for acquisition of
investments¥(800,925) million• SBG and its wholly owned subsidiaries acquired mainly strategic
investments for ¥311,870 million.
• PayPay Bank Corporation acquired bonds and other asset
management products for ¥308,414 million.

Payments for acquisition of
investments by SVF¥(212,045) million

SVF invested $1.50 billion in total.

Proceeds from sales ofinvestments by SVF¥922,020 million

SVF sold investments for a total of $6.33 billion.

Payments for acquisition ofcontrol over subsidiaries¥(104,484) million• SoftBank Corp. acquired Cubic Telecom Ltd. as a subsidiary.
• SBG’s wholly owned subsidiary acquired Berkshire Grey, Inc. andBalyo SA as subsidiaries.
The figure to the left excludes cash and cash equivalents held by theacquired companies at the time of acquisition of control.

Proceeds from loss of control
over subsidiaries¥96,755 million

Primarily from the sale of 85% of the shares of SB Energy Corp.,
which was previously a wholly owned subsidiary of the Company.

Purchase of property, plant andequipment, and intangible
assets¥(622,612) million

SoftBank Corp. purchased property, plant and equipment, such as
telecommunications equipment, and intangible assets, such assoftware.

Payments for loan receivables¥(313,686) million

SVF2 fulfilled the guarantee obligations for the credit support for aletter of credit facility of $1.43 billion to WeWork provided byfinancial institutions.

547.6
500

250.5

0

-500

-606.2-841.5-1,000’22■ Cash flows from operating activities

SoftBank Group Report 2024

’23
■ Cash flows from investing activities■ Cash flows from financing activities

Corporate Information

Cash flows from investing activities

Cash flows from operating activities / Cash flows from investing activities /Cash flows from financing activities

191.5

Financial Section

(FY)

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Foundation for Our Growth

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Corporate Information

Cash flows from financing activities
Components

Primary details

Proceeds in short-term interestbearing debt, net¥182,874 million*1• Short-term borrowings increased by ¥151,145 million (net) at
SoftBank Corp.
• Short-term borrowings increased by ¥10,983 million (net) at LY
Corporation and its subsidiaries.

(Proceeds and payments for interest-bearing
debt (current liabilities) with quick turnoverand short maturities)

Components

B Redemption of corporate
bonds¥(700,618) million

Proceeds from interest-bearing debt (total of A through C below)¥5,914,090 million
A Proceeds from borrowings¥4,276,463 million*2

B Proceeds from issuance ofcorporate bonds¥1,032,000 million• SBG made short-term borrowings of ¥536,136 million andprocured ¥53,100 million through a hybrid loan.
• A wholly owned subsidiary conducting fund procurement raised
a total of ¥1,236,240 million ($8.50 billion) through a marginloan using listed Arm shares.
• SoftBank Corp. procured ¥964,409 million, primarily throughthe securitization of installment sales receivable and saleleaseback transactions. The company also issued commercial
paper for ¥233,000 million.
• A subsidiary of LY Corporation made short-term borrowings of¥732,900 million associated with an increase in demand for
personal unsecured loan services.
• SBG issued domestic hybrid bonds totaling ¥222,000 million
and domestic straight bonds totaling ¥550,000 million.
• SoftBank Corp. issued domestic straight bonds totaling¥260,000 million.
All of the above amounts are face values.

C Proceeds from procurement
Wholly owned subsidiaries conducting fund procurement raised aby prepaid forward contracts total of $4.39 billion through prepaid forward contracts (forward
using sharescontracts) using Alibaba shares.
¥605,627 million
Repayment of interest-bearing debt¥(5,889,186) million
A Repayment of borrowings¥(5,183,435) million*2

SoftBank Group Report 2024

• SBG repaid short-term borrowings of ¥506,600 million.
• A wholly owned subsidiary conducting fund procurement repaid
borrowings of ¥1,236,240 million ($8.50 billion) made throughasset-backed finance using Arm shares.
• SVF1 and SVF2 repaid ¥604,823 million ($4.16 billion) and¥317,547 million ($2.19 billion), respectively, in borrowings
made through asset-backed finance.
• SoftBank Corp. repaid ¥1,215,104 million in borrowings madeprimarily through the securitization of installment salesreceivable and sale-leaseback transactions. It also redeemed¥147,000 million in commercial paper.
• A subsidiary of LY Corporation repaid short-term borrowings of¥713,700 million made in association with an increase indemand for personal unsecured loan services.

Primary details• SBG repurchased foreign currency-denominated senior notes of$0.10 billion and 0.07 billion euros, domestic straight bonds of¥2,100 million, and domestic subordinated bonds of ¥20,900
million and redeemed foreign currency-denominated seniornotes of $0.16 billion and 0.63 billion euros and domestic
straight bonds of ¥419,412 million upon maturity, and carriedout an early redemption of domestic hybrid bonds amounting
to ¥15,400 million.
• SoftBank Corp. redeemed domestic straight bonds of ¥10,000
million upon maturity.
• LY Corporation redeemed domestic straight bonds of ¥110,000
million upon maturity.
All of the above amounts are face values.

Distribution/repayment from
SVF to third-party investors¥(783,522) million

SVF1 made distributions and repayments to third-party investors.

Proceeds from the partial sales ofshares of subsidiaries
to non-controlling interests¥747,565 million

The Company received the proceeds of $5.12 billion from thedisposal of Arm shares at its IPO.

Redemption of other equity
instruments¥(277,760) million

The Company redeemed USD-denominated NC6 undated hybrid
notes with a face value of $2.00 billion. These notes wereclassified as equity instruments under IFRSs. The effects arisingfrom forward exchange contracts are recorded in “Other” undercash flows from financing activities.

Proceeds from the issuance ofother equity instruments in
subsidiaries¥120,000 million

SoftBank Corp. issued bond-type class shares in the amount of¥120,000 million.

Cash dividends paid¥(64,356) million

SBG paid dividends.

Cash dividends paid to
non-controlling interests¥(288,119) million

SoftBank Corp., LY Corporation, and other subsidiaries paid
dividends to non-controlling interests.

*1 “Proceeds in short-term interest-bearing debt, net” represents cash flows from financing activities that meet the requirement of“Reporting cash flows on a net basis” under IFRSs.
*2 “Proceeds from borrowings” and “Repayment of borrowings” include proceeds of ¥1,813,733 million and outlays of ¥1,721,319
million related to borrowings with a contracted term of one year or less.

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Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Significant Non-cash Transactions
During fiscal 2023, the Company settled a portion of the prepaid forward contracts using
Alibaba shares in physical form and acquired 48.8 million T-Mobile shares with no additional
consideration after satisfying the condition for the Contingent Consideration. None of thesetransactions were cash transactions; therefore, they had no impact on the consolidated cash
flows. For details, see “(12) Significant non-cash transactions” under “44. Supplemental
information to the consolidated statement of cash flows” in “Notes to Consolidated Financial
Statements” in “Financial Report 2024.”

Exchange rates used for translations
Average rate for the quarter
Fiscal 2023

Fiscal 2022
Q1

USD / JPY

Q2

Q3

Q4

¥129.04 ¥138.68 ¥141.16 ¥133.26

Q1

Q2

Q3

Q4

¥138.11 ¥145.44 ¥147.00 ¥147.87

Rates at the end of the period
USD / JPY

SoftBank Group Report 2024

March 31, 2023

March 31, 2024

¥133.53¥151.41110

Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Major Subsidiaries and Associates

Foundation for Our Growth

Financial Section

Corporate Information

As of March 31, 2024

Corporation
Subsidiaries
Company name

CapitalVoting rights (%)

Main businesses

Investment Business of Holding Companies Segment
SoftBank Group Overseas GK*1,11

100.0

Holding company

SoftBank Group Capital Limited*1$5,508 K

100.0

Holding company

SoftBank Group Japan Corporation¥188,798 mn

100.0

Holding company

$0 K

100.0

Management of overseas investment¥101 mn

100.0

Holding company

STARFISH I PTE. LTD.

¥101,540 mn

100.0

Holding company

Hayate Corporation¥77,843 mn

100.0

Holding company

SB Pan Pacific Corporation¥48,249 mn

100.0

Holding company$1,139 K

100.0

Management of SVF1

$310 K

100.0

Management of SVF2 and LatAm Funds

SoftBank Corp.

¥214,394 mn

40.7

Provision of mobile communications services; sale of mobile devices; provision of broadband communications services
and solution services in JapanA Holdings Corporation
LY Corporation*3¥100 mn¥248,145 mn

50.0
64.4

Holding company of shares of LY Corporation

SB Group US, Inc.
Shiodome Project 17 GK*2

¥2 mn

SoftBank Vision Funds Segment
SB Investment Advisers (UK) Limited
SB Global Advisers Limited

SoftBank Segment

Cybertrust Japan Co., Ltd.

Development of online advertising business, e-commerce business, members services business, and other businesses,
and management of group companies of LY Corporation¥820 mn

57.6

IoT business, certification service business, security solution business, and Linux / OSS business

SB Technology Corp.*4¥1,271 mn

54.0

ICT service business focusing on cloud, security, IoT and AI

ITmedia Inc.

¥1,883 mn

53.4

Operation of comprehensive IT information site ITmedia¥328 mn

41.2

Internet advertising agency business

eMnet Japan.co.ltd.

Subsidiaries of LY Corporation
Z Intermediate Holdings Corporation

¥1 mn

100.0

Holding company

PayPay Corporation¥94,180 mn

100.0Development and provision of mobile payments and other electronic payment services

Z Financial Corporation¥36,604 mn

100.0Management of group companies of Z Financial Corporation

LINE SOUTHEAST ASIA CORP.PTE.LTD.

$220,500 K

100.0

Holding company

Alpha Purchase Co., Ltd.

¥557 mn

62.8

Sales of indirect materials such as consumable supplies; facility management

ValueCommerce Co., Ltd.*5
ZOZO, Inc.

¥1,728 mn¥1,360 mn

51.9
51.5

Affiliate advertising marketing service; StoreMatch online advertising distribution service
Planning and operation of fashion e-commerce website; operational support of brands’ own e-commerce website;
operation of fashion coordination app

PayPay Bank Corporation¥72,217 mn

46.6

Banking

ASKUL Corporation¥21,234 mn

45.0

Mail-order sale of stationery and services

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Table of Contents

Company nameWho We Are

Message from Our CEO

CapitalMessage from Our CFO

Growth Assets

Foundation for Our Growth

Voting rights (%)

Financial Section

Corporate Information

Main businesses

Arm Segment
Arm Holdings plc*6$1,311 K

88.7

Design of microprocessor intellectual property and related technology; sale of software tools and provision of related
services

Arm PIPD Holdings One, LLC*2,7$620,855 K

100.0

Holding company

Arm PIPD Holdings Two, LLC*2,7$426,016 K

100.0

Holding company

Other
Fortress Investment Group LLC*2,8
Fukuoka SoftBank HAWKS Corp.

–¥100 mn

100.0
100.0

Alternative investment management business
Ownership of professional baseball team; operation of baseball games; management and maintenance of baseballstadium and other sports facilities; distribution of video, voice, and data content via media

SoftBank Robotics Group Corp.

¥54,601 mn

87.8

Holding company

Balyo SA€ 2,749 K

73.5

Providing solutions for autonomous forklifts

Associates
Company name

CapitalVoting rights (%)

Main businesses

SoftBank Segment
Geniee, Inc.
C Channel Corporation¥1,553 mn

31.3

Advertising technology business¥10 mn29.0

E-commerce business; internet advertising and marketing¥100 mn

36.8

Operation of food delivery service Demae-can

Associates of LY Corporation
DEMAE-CAN CO., LTD

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Fund
子会社
Fund Name

Capital accepted

Investment ratio (%)

Main businesses

Investment Business of Holding Companies Segment
SB Northstar LP*9$34 bn100(66.7)

Investment in listed stocks and other financial instruments

SoftBank Vision Funds Segment
SoftBank Vision Fund L.P.*10$87 bn33.6

Investment fund in the technology sector

SoftBank Vision Fund II-2 L.P.*11,12$57 bnInvestment fund in the technology sector

SBLA Latin America Fund LLC*12

$7 bn

100.0
(82.8)
100.0(82.8)

Investment fund in the technology sector*1 Effective November 27, 2023, SBG transferred to SoftBank Group Overseas GK, by contribution in kind, the entire tracking shares in SoftBank Group Capital Limited, which were linked with the value of SoftBank Group Capital Limited’s overseas investment portfolio.
*2 The voting rights represent the Company’s entire contributions as a percentage of capital.
*3 On October 1, 2023, Z Holdings Corporation completed the scheduled intragroup reorganization procedures, including the merger primarily among the company and its core wholly owned subsidiaries, LINE Corporation and Yahoo Japan Corporation, as well as changing its
trade name to LY Corporation.
*4 SoftBank implemented a tender offer from April 26, 2024, to June 11, 2024, through which it intends to acquire the equity interest (common shares and stock acquisition rights) in SB Technology Corp., in order to make SB Technology Corp. a wholly owned subsidiary.
SoftBank will undertake a series of procedures to make SB Technology Corp. a wholly owned subsidiary following the tender offer.
*5 ValueCommerce Co., Ltd., implemented a tender offer for its own shares from March 12, 2024, to April 9, 2024. Z Intermediate Holdings Corporation tendered and sold a portion of shares in ValueCommerce Co., Ltd. As a result of the completion of the tender offer, on May
2, 2024, ValueCommerce Co., Ltd., ceased to be a consolidated subsidiary of SBG and became an equity method affiliate.
*6 A corporate reorganization was undertaken in August 2023, pursuant to which Arm Holdings Limited, a former subsidiary of Arm Limited, acquired all the issued ordinary shares of Arm Limited, thereby making it a wholly owned subsidiary. Subsequently, Arm Holdings Limitedchanged its name to Arm Holdings plc and was listed on the Nasdaq Global Select Market through an initial public offering on September 14, 2023.
*7 Capital represents the amount of capital contribution.
*8 Fortress Investment Group LLC has not prepared stand-alone financial statements, thus a capital amount is not listed. On May 14, 2024, SBG sold its entire interest in Fortress Investment Group LLC, held through a subsidiary of SBG, to a subsidiary of Mubadala Investment
Company PJSC. Upon the completion of the sale, Fortress Investment Group LLC ceased to be a consolidated subsidiary of SBG.
*9 A figure in parentheses in the investment ratio represents the Company’s indirect investment ratio.
*10 The capital accepted of SoftBank Vision Fund L.P. includes the capital accepted by alternative investment vehicles. The investment ratio of SoftBank Vision Fund L.P. includes an incentive scheme related to SVF1.
*11 Effective November 30, 2023, SBG transferred to SoftBank Group Overseas GK, by contribution in kind, the entire equity interest in SoftBank Vision Fund II-2 L.P.
*12 The capital accepted and investment ratio include equity and preferred equity contributions under a co-investment program with MASA USA LLC, a company controlled by Masayoshi Son (Representative Director, Corporate Officer, Chairman & CEO of SBG) with restricted
rights to receive distributions. Figures in parentheses in the investment ratio represent the ratio of the Company’s equity interest in the co-investment program. The ratio of MASA USA’s equity stake in the co-investment program is 17.25%.

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Table of Contents

Who We Are

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

Number of shares held
(thousands)

Percentage of total
shares issued (%)

426,661
244,984
105,686
29,066
19,863
19,82819,152
19,06018,504
13,449916,253

29.11
16.71
7.21
1.98
1.35
1.35
1.31
1.30
1.26
0.92
62.50

Stock Information
Shareholder registrar

Mitsubishi UFJ Trust and Banking
Corporation

Stock exchange registration Tokyo Stock Exchange, Prime Market
Securities code

9984

Number of shares
As of March 31, 2024

Shares authorized

7,200,000,000

Shares issued

1,469,995,230(including 4,069,831 of treasury stock)

Number of shareholders

191,559

As of March 31, 2024

Distribution by shareholder type
(%)

100

1.4
3.5

2.1
5.1

2.2
3.7

23.2

23.7

25.5

75

26.7

27.3

38.7

50

2.8
5.3

1.9
5.3

27.8

26.0

23.9

28.9

Major shareholders

As of March 31, 2024

Name
Masayoshi Son
The Master Trust Bank of Japan, Ltd. (Trust Account)
Custody Bank of Japan, Ltd. (Trust Account)
JP MORGAN CHASE BANK 380763
HSBC HONG KONG-TREASURY SERVICES A/C ASIAN EQUITIES DERIVATIVESSTATE STREET BANK WEST CLIENT-TREATY 505234
SSBTC CLIENT OMNIBUS ACCOUNTSON CORPORATION LLCSON ASSETS MANAGEMENT LLC
JP MORGAN CHASE BANK 385781
Top 10 Shareholders

Notes:
1. Percentage of total shares issued is calculated by deducting treasury stock (4,069,831 shares).
2. Of the above numbers of shares held, those held by The Master Trust Bank of Japan, Ltd., and Custody Bank of Japan, Ltd., are all related to trust operations.
3. As for major shareholders, the number of shares held effectively by Masayoshi Son, verified by SBG, is presented as has been hitherto on a combined basis (by means of namebased aggregation), while those held by other major shareholders are presented precisely as reported in the register of shareholders.

Stock price and trading volume(Yen)
12,000(Yen)
48,00011,00044,00010,00040,0009,000

36,0008,000

32,0007,000

28,0006,000

24,0005,000

20,0004,000

16,000

3,000
1,000

25

36.9

39.7

37.6

29.4
4.4

1.0
2019

0

25

2014

Stock price (left)

16.8
0(Million shares)
50

2,000

28.4

2020

Treasury stock
Overseas institutions and individuals
Domestic other companies

2021

0.5
2022

2016

Trading volume (right)

2017

2018

2019

2020

2021

2022

2023

2024

(CY)

0

Nikkei 225 (right)

0.3

Note: Stock prices are average prices for each month, and trading volumes are average daily trading volumes for each month. The stock prices and trading volumes have been adjusted to reflect the share split on June 28, 2019.

(FYE)

Market capitalization

2023

Domestic individuals and others
Domestic financial institutions
Financial instrument firms

2015Market capitalization (Trillions of yen)

(FYE)

2019

2020

2021

2022

2023

7.8

16.2

9.2

7.6

13.1

Note: Market capitalization is calculated by multiplying the stock price by the total number of shares issued (excluding treasury stock after adjusting for the aforementioned share
split) as of the end of each fiscal year.

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Table of Contents

Who We Are

Corporate Data
Corporate name

SoftBank Group Corp.

Founded

September 3, 1981

Corporate headquarters

1-7-1, Kaigan, Minato-ku,
Tokyo 105-7537, Japan

Telephone number+81-3-6889-2000

Representative

Masayoshi Son
Representative Director,
Corporate Officer,
Chairman & CEO

Share capital¥238.8 billion

Number of subsidiaries

1,254

Number of associates

571

Number of joint ventures

27

Number of employees

255(consolidated basis: 65,352)

Main business

Pure holding company

Independent auditor

Deloitte Touche Tohmatsu LLC*1 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that SoftBank Group
Corp. has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements tobecome a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, theFTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental,
Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants tocreate and assess responsible investment funds and other products.
*2 FTSE Russell confirms that SoftBank Group Corp. has been independently assessed according to the index criteria, andhas satisfied the requirements to become a constituent of the FTSE Blossom Japan Index. Created by the global index
and data provider FTSE Russell, the FTSE Blossom Japan Index is designed to measure the performance of companies
demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE Blossom Japan Index is used bya wide variety of market participants to create and assess responsible investment funds and other products.
*3 FTSE Russell confirms that SoftBank Group Corp. has been independently assessed according to the index criteria, andhas satisfied the requirements to become a constituent of the FTSE Blossom Japan Sector Relative Index. The FTSE
Blossom Japan Sector Relative Index is used by a wide variety of market participants to create and assess responsible
investment funds and other products.
*4 THE INCLUSION OF SoftBank Group Corp. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS,SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION
OF SoftBank Group Corp. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF
MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITSAFFILIATES.
*5 As of the date of the publication of this Annual Report

SoftBank Group Report 2024

Message from Our CEO

Message from Our CFO

Growth Assets

Foundation for Our Growth

Financial Section

Corporate Information

As of March 31, 2024

Selection for major indices

Investor Relations

Nikkei Stock Average• JPX-Nikkei Index 400• TOPIX Core 30 / TOPIX 100 / TOPIX 500 / TOPIX 1000
• Nikkei 500 Stock Average• Nikkei Stock Index 300• FTSE4Good Index Series*1• FTSE Blossom Japan Index*2• FTSE Blossom Japan Sector Relative Index*3• MSCI Japan Empowering Women Index (WIN)*4• S&P/JPX Carbon Efficient Index

We provide videos and related materials of the latest earnings results
briefings and IR-related news, among others.

•

Sustainability
We feature our various environmental, social, and governance (ESG)
efforts, as well as our ESG Data collection.

Credit ratings
Rating agency

Long-term bondStandard & Poor’s

BB+*5

Short-term bond—Japan Credit Rating Agency

A*5

J –1

External evaluations on sustainability•••

Selected as “The Sustainability Yearbook Member” as a company in the top 15%
of each industry in “The Sustainability Yearbook 2024,” a listing of companies withoutstanding sustainability performance. (2024, S&P Global)
Received an A- score in the overall rating in the field of climate change and an A
(Supplier Engagement Rating Leader), the highest rating, in the Supplier Engagement
Rating. (2023, CDP)
Granted “Eruboshi” Level 3 (highest grade) certification as a company promoting
women’s advancement (2024, Ministry of Health, Labour and Welfare)

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Published on July 29, 2024 Copyright © 2024 SoftBank Group Corp. All Rights Reserved. Printed in Japan