This English translation of the financial report was prepared for reference purposes only and is qualified in its entirety by the original
Japanese version. The financial information contained in this report is derived from our unaudited consolidated financial statements
appearing in item 2 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023 (IFRS)Tokyo, August 8, 2023

1.

Financial Highlights(Millions of yen; amounts are rounded to the nearest million yen)

(1) Results of Operations(Percentages are shown as year-on-year changes)

Net sales

Three-month period ended
June 30, 2023
Three-month period ended
June 30, 2022

Incomebefore income tax

Net income
Amount%

Net income
attributable toowners of the parent

Amount%Amount¥1,557,507(0.9)¥(176,194)-¥(316,194)-¥(477,616)-¥935,862-¥1,572,030

6.3¥(3,292,455)-¥(3,096,321)-¥(3,162,700)-¥(1,043,151)-

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)Three-month period ended
June 30, 2023¥(332.75)¥(333.97)

Three-month period ended
June 30, 2022¥(1,949.55)¥(1,950.29)%

Amount%Total
comprehensive
incomeAmount%(2) Financial Position2.

Total assets

Total equity

Equityattributable toowners of theparentRatio of equity
attributable toowners of the parent
to total assets (%)

As of June 30, 2023

¥45,680,967¥11,449,758¥9,785,488

21.4

As of March 31, 2023

¥43,936,368¥10,649,215¥9,029,849

20.6

Dividends
Dividends per shareFirst quarter

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

Fiscal year ended
March 31, 2023

-

22.00

-

22.00

44.00

Fiscal year ending
March 31, 2024

22.00

-

22.00

44.00

Fiscal year ending
March 31, 2024 (Forecasted)

Note:* Revision of the latest forecasts on the dividends: No

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): No
Newly consolidated: None
Excluded from consolidation: None
Note:
* Foreign subsidiaries prepare stand-alone financial statements only under circumstances where it is necessary under their local
laws and practices. Applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph(10), Item (i) to (iii), is determined by using the financial statements.
On the other hand, for foreign subsidiaries that do not prepare stand-alone financial statements, information on the capital andnet assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) is used to determine whether the companies are the specified subsidiaries.
The applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is
determined based on the percentage of total amount of purchase from SoftBank Group Corp. and dividend paid to SoftBank
Group Corp. to total amount of operating revenue of SoftBank Group Corp.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of Corporate
Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: No[2] Changes in accounting policies other than those in [1]: No[3] Changes in accounting estimates: No(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):
As of June 30, 2023:
1,469,995,230 shares
As of March 31, 2023:
1,469,995,230 shares[2] Number of shares of treasury stock:
As of June 30, 2023:
As of March 31, 2023:

5,956,040 shares
6,947,599 shares[3] Number of average shares outstanding during the three-month period (April-June):
As of June 30, 2023:

1,463,178,016 shares

As of June 30, 2022:

1,627,687,814 shares* This condensed interim consolidated financial report is not subject to interim review procedures by certified public
accountants or an audit firm.
* Note to forecasts on the consolidated results of operations and other items
Descriptions regarding the future are estimated based on the information that the Company is able to obtain at the present point intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On August 8, 2023 (JST), the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcasted live on the Company’s website in both Japanese and English athttps://group.softbank/en/ir. The data sheet will also be posted on the website in a few days at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(Appendix)
Contents

1. Results of Operations .....................................................................................................................................

P.3(1) Overview of Results of Operations ..........................................................................................................

P.3

a. Consolidated Results of Operations .......................................................................................................

P.4

b. Results by Segment ................................................................................................................................

P.7(a) Investment Business of Holding Companies Segment .....................................................................

P.8(b) SoftBank Vision Funds Segment ...................................................................................................... P.13
(c) SoftBank Segment ............................................................................................................................ P.21(d) Arm Segment .................................................................................................................................... P.23
(2) Overview of Financial Position ................................................................................................................ P.26
(3) Overview of Cash Flows .......................................................................................................................... P.35
(4) Forecasts ................................................................................................................................................... P.38
2. Condensed Interim Consolidated Financial Statements and Primary Notes .................................................. P.40
(1) Condensed Interim Consolidated Statement of Financial Position .......................................................... P.41
(2) Condensed Interim Consolidated Statement of Profit or Loss
and Condensed Interim Consolidated Statement of Comprehensive Income .......................................... P.43
(3) Condensed Interim Consolidated Statement of Changes in Equity .......................................................... P.45
(4) Condensed Interim Consolidated Statement of Cash Flows ..................................................................... P.49
(5) Significant Doubt about Going Concern Assumption .............................................................................. P.51
(6) Notes to Condensed Interim Consolidated Financial Statements ............................................................. P.51

Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable
limited liability equity interests in any funds (including SoftBank Vision Fund 1, SoftBank Vision Fund 2, and SoftBank Latin
America Funds) managed by any of the subsidiaries of SoftBank Group Corp. (“SBG”), including SB Global Advisers Limited, SB
Investment Advisers (UK) Limited, or their respective affiliates, or any securities in any jurisdiction, nor should it be relied upon as
such in any way.
In addition, this material does not constitute an offer to sell, or a solicitation of an offer to buy, any securities of Arm Limited.
Any offers to sell, solicitations of offers to buy, or sales of securities will be made in accordance with the registration requirementsof the U.S. Securities Act of 1933, as amended, and other applicable securities laws.
Notice Regarding PFIC Status
It is possible that SBG (and certain subsidiaries of SBG) may be a “passive foreign investment company” (“PFIC”) under the U.S.
Internal Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its
income. We recommend that U.S. holders of SBG’s shares consult their tax advisors with respect to the U.S. federal income tax
consequences to them if SBG and its subsidiaries are classified as PFICs. SBG is not responsible for any tax treatments orconsequences thereof with respect to U.S. holders of SBG’s shares.

1

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Definition of Company Names and Abbreviations Used in This Appendix

Company names and abbreviations used in this appendix, unless otherwise stated or interpreted differently in thecontext, are as follows:
Company names/Abbreviations
Definition
SoftBank Group Corp. or SBG
SoftBank Group Corp. (stand-alone basis)
The Company
SoftBank Group Corp. and its subsidiaries*Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar or
SB Northstar LP
asset management subsidiaries
SoftBank Vision Fund 1 or SVF1
SoftBank Vision Fund L.P. and its alternative investment vehicles
SoftBank Vision Fund 2 or SVF2
SoftBank Vision Fund II-2 L.P.
SoftBank Latin America Funds or
SBLA Latin America Fund LLC
LatAm Funds
SoftBank Vision Funds or SVF
SVF1, SVF2, and LatAm Funds
SBIA
SB Investment Advisers (UK) Limited
SBGA
SB Global Advisers Limited
Arm
Arm Limited
Alibaba
Alibaba Group Holding Limited
MgmtCoMASA USA LLC
The first quarter
Three-month period ended June 30, 2023
The first quarter-end
June 30, 2023
The fiscal year
Fiscal year ending March 31, 2024
The previous fiscal year
Fiscal year ended March 31, 2023
The previous fiscal year-end
March 31, 2023
Exchange Rates Used for Translations

USD/JPY
Average rate for the quarter
Rate at the end of the period

Q1¥129.04

Fiscal year ended March 31, 2023
Q2
Q3
Q4¥138.68¥141.16¥133.26¥133.53

2

Fiscal year ending
March 31, 2024
Q1
¥138.11¥144.99

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

1. Results of Operations(1) Overview of Results of Operations
1. Results highlights◆ ¥699.0 billion investment loss (¥2,834.4 billion loss for the same period of the previous fiscal year)- ¥689.7 billion investment loss at Investment Business of Holding Companies, which includes realized gainof ¥17.7 billion, unrealized valuation loss of ¥620.4 billion, and derivative loss on investments of ¥97.0
billion· ¥553.4 billion unrealized valuation loss on Alibaba shares included in the unrealized valuation loss above
was offset by derivative gain of ¥769.9 billion relating to prepaid forward contracts using Alibaba shares(recorded as derivative gain (excluding gain or loss on investments)).
- ¥13.0 billion investment loss at SoftBank Vision Funds (excluding gains associated with SVF’s investmentsin the Company’s subsidiaries)
Note: The SoftBank Vision Funds segment recorded ¥159.8 billion gain on investments, however, this included gains
associated with SVF’s investments in shares of the Company’s subsidiaries (mainly Arm).

· ¥38.7 billion loss at SVF1, ¥46.9 billion loss at SVF2, and ¥47.5 billion gain at LatAm Funds*1· For the investments held at the first quarter-end, the fair value of public portfolio companies increased*1
due to rising share prices, while the fair value of private portfolio companies decreased, mainly reflecting
markdowns of weaker-performing companies.
◆ Loss before income tax of ¥176.2 billion (improvement of ¥3,116.3 billion yoy)reflecting the recordings of:- Finance cost of ¥139.6 billion- Foreign exchange loss of ¥464.6 billion due to the impact of the weaker yen amid an excess of U.S. dollardenominated liabilities (net) mainly at SBG over its U.S. dollar-denominated cash and cash equivalents andloans receivable- Derivative gain (excluding gain or loss on investments) of ¥849.6 billion due to recording a gain relating toprepaid forward contracts using Alibaba shares following a fall in the share price, which offset unrealized
valuation loss on the shares◆ Net loss attributable to owners of the parent of ¥477.6 billion (improvement of ¥2,685.1 billion yoy)reflecting the recordings of:- Income tax of ¥140.0 billion- Net income attributable to non-controlling interests of ¥161.4 billion
2. Balancing defense and offense*2◆ LTV improved from the previous fiscal year-end as a result of continued monetization- Raised $4.39 billion through prepaid forward contracts using Alibaba shares- SVF sold investments for a total of $0.92 billion, including full exits of four portfolio companies and partial
1
exits of several public portfolio companies.
◆ Expanded investments- SVF invested a total of $1.58 billion.
- SBG and its wholly owned subsidiaries invested a total of ¥120.0 billion, mainly in strategic investments.
3. SVF*3
Gross performance since inception was $12.4 billion in gain for SVF1 and $18.6 billion in loss for SVF2.
4. Completed replacement of USD-denominated NC6 undated hybrid notes
The Company issued domestic hybrid bonds of ¥222.0 billion in April 2023. Together with funds procured*4
through the hybrid loan of ¥53.1 billion in May 2023, the Company completed the replacement of USDdenominated NC6 undated hybrid notes ($2.0 billion) with the first voluntary call date in July 2023. The
Company also plans to replace JPY-denominated hybrid bonds (¥15.4 billion) in September 2023 with the first
voluntary call date in the same month.
5. Confidential submission of draft registration statement on Form F-1 by Arm
Arm announced in April 2023 that it had confidentially submitted a draft registration statement on Form F-1 to
the U.S. Securities and Exchange Commission relating to the proposed initial public offering of American
depositary shares representing Arm’s ordinary shares. The Company intends that Arm will continue to be aconsolidated subsidiary following the completion of the proposed initial public offering. The Company does
not expect that any such offering would have a material effect on its consolidated results or financial position.
3

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Notes:
1. Public portfolio companies are shares traded on stock exchanges or over-the-counter markets. Private portfolio companies are thosethat do not fall under the category of public portfolio companies. The same applies hereinafter.
2. Loan-to-Value; the ratio of liabilities to holding assets, calculated as adjusted net interest-bearing debt divided by the equity value ofholdings. Equity value of holdings and adjusted net interest-bearing debt each exclude amounts to be settled at maturity or
borrowings that are part of asset-backed finance. The calculation of adjusted net interest-bearing debt excludes interest-bearing debt
and cash and cash equivalents, etc., attributable to entities managed on a self-financing basis, such as SoftBank Corp. (including its
subsidiaries such as Z Holdings Corporation and PayPay Corporation), SVF1, SVF2, LatAm Funds, and Arm. Also excludes a partof SB Northstar’s interest-bearing debt and short-term investments included in its cash position.
3. Gross amounts before deductions, such as third-party interests and taxes
4. 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.

a. Consolidated Results of Operations(Millions of yen)Three months ended June 30
2022
2023
Net sales
Gross profit
Gain on investments

ChangeChange %1,572,030
883,791

1,557,507
832,075(14,523)(51,716)(0.9%) A(5.9%)

111,223(689,697)(800,920)-

B(2,919,130)(26,533)(2,834,440)(13,043)
3,783(698,957)

2,906,087
30,3162,135,483-

C

Selling, general and administrative
expensesFinance cost
Foreign exchange loss

(626,513)(114,139)(819,969)(648,080)(139,601)(464,642)(21,567)(25,462)355,327

3.4%
22.3%
-

D
E

Loss on equity method
investments(158,370)(18,319)

140,051-

F

Derivative gain (loss)(excluding gain (loss) on investments)
Change in third-party interests in SVF
Other gain
Income before income tax
Income taxes
Net income(259,250)
631,367
5,068(3,292,455)
196,134(3,096,321)

849,629(58,081)
169,782(176,194)(140,000)(316,194)

1,108,879(689,448)
164,714
3,116,261(336,134)
2,780,127-G

Net income attributable to owners of
the parent(3,162,700)(477,616)

2,685,084-

Total comprehensive income(1,043,151)

935,862

1,979,013-

Comprehensive income attributable toowners of the parent(1,094,795)

779,754

1,874,549-

Gain (loss) on investments at Investment
Business of Holding Companies
Loss on investments at SoftBank
Vision Funds
Gain (loss) on other investments
Total gain on investments

4

H
ＩSoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

The following is an overview of the primary and noteworthy components.
A Net Sales
Net sales increased in the SoftBank segment but declined in the Arm segment. For details, see “(c) SoftBank
Segment” and “(d) Arm Segment” under “b. Results by Segment.”
B Loss on Investments at Investment Business of Holding Companies
Investment loss of ¥689,697 million was recorded at Investment Business of Holding Companies. This mainlyreflected the recording of a loss on valuation of investments of ¥620,356 million due to declines in the share prices
of Alibaba, Deutsche Telekom AG (“Deutsche Telekom”), and T-Mobile US, Inc. (“T-Mobile”). Among these, theloss of ¥553,354 million on Alibaba was offset by a derivative gain of ¥769,852 million related to prepaid forward
contracts using Alibaba shares. For details, see “(a) Investment Business of Holding Companies Segment” under“b. Results by Segment.”
C Loss on Investments at SoftBank Vision Funds
Investment loss of ¥13,043 million was recorded at SoftBank Vision Funds. This included losses of ¥38,749 million
at SVF1 and ¥46,860 million at SVF2, as well as gains of ¥47,496 million at LatAm Funds and ¥25,070 million onother investments.
SVF1 recorded a realized loss on investments (net) of ¥86,940 million, mainly due to the full exits of two private
1

portfolio companies and the partial exits of several public portfolio companies. Meanwhile, SVF1 recorded
unrealized valuation losses (net) totaling ¥45,870 million for investments held at the first quarter-end. This
comprises an unrealized gain (net) totaling ¥51,479 million for public portfolio companies due to rising share prices
and an unrealized loss (net) totaling ¥97,349 million for private portfolio companies, mainly reflecting markdownsof weaker-performing companies.
SVF2 recorded unrealized valuation losses (net) totaling ¥53,195 million as a result of fair value decrease in
private portfolio companies, mainly reflecting markdowns due to their weaker performances, despite share priceincreases of Symbotic Inc. (“Symbotic”) and other public portfolio companies.
LatAm Funds recorded unrealized valuation gains (net) totaling ¥47,136 million, mainly due to share priceincreases of public portfolio companies. For details, see “(b) SoftBank Vision Funds Segment” under “b. Results by
Segment.”
Primarily as a result of B through C, the total loss on investments was ¥698,957 million.
D Finance Cost
2

Interest expenses at SBG increased by ¥17,363 million year on year to ¥96,650 million. This mainly reflected
increases in interest expenses due to higher interest rates on prepaid forward contracts using Alibaba shares and theasset-backed finance using Arm shares, despite a decrease in interest expenses following the full repayment of amargin loan using Alibaba shares in the second quarter of the previous fiscal year and the repurchase of foreign
currency-denominated senior notes in the third quarter of the previous fiscal year. Since the majority of SBG’s

2

interest-bearing debt is on fixed interest rates, the impacts of short-term interest rate increases on interest expenses
are limited.

5SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

E Foreign Exchange Loss
Foreign exchange loss of ¥464,642 million (net) was recorded due to the weaker yen. This was mainly because U.S.
dollar-denominated liabilities (such as borrowings from subsidiaries and foreign currency-denominated seniornotes) of SBG and domestic subsidiaries used for fund procurement exceeded their U.S. dollar-denominated cash
and cash equivalents and loans receivable.
The weaker yen in exchange rates used for translation increased the yen-translated value of net assets of foreignsubsidiaries and associates, such as SoftBank Vision Funds, whose functional currency is not Japanese yen(primarily U.S. dollar). However, this positive impact is not included in foreign exchange gains; instead, it isincluded in the increase in exchange differences from the translation of foreign operations of ¥1,256,968 million,
which is recorded under accumulated other comprehensive income in equity on the Condensed Interim
Consolidated Statement of Financial Position.
F Loss on Equity Method Investments
3

In the same period of the previous fiscal year, loss on equity method investments of ¥135,517 million was recorded
in relation to Alibaba; however, the company was excluded from the associates in the second quarter of theprevious fiscal year.
G Derivative Gain (Excluding Gain or Loss on Investments)
Derivative gain of ¥769,852 million was recorded, mainly for the prepaid forward contracts using Alibaba shares.
H Other Gain
Gain relating to loss of control over subsidiaries of ¥108,832 million was recorded mainly as a result of selling 85%
of shares in SB Energy Corp., then a wholly owned subsidiary of the Company. In addition, interest income
increased by ¥48,528 million year on year to ¥57,146 million mainly due to an increase in interest rates on USDdenominated deposits. For a further breakdown, see “11. Other gain” under “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary
Notes.”
Primarily as a result of A through H, loss before income tax was ¥176,194 million, an improvement of¥3,116,261 million year on year.
I Income Taxes
Income taxes were ¥140,000 million, mainly due to income taxes recorded at SBG and SoftBank Corp.
Primarily as a result of A through I, net loss attributable to owners of the parent was ¥477,616 million, an
improvement of ¥2,685,084 million year on year.

6SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource
allocation and assessments of performance are made. As of the first quarter-end, there are four reportable segments:
Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, and Arm.
The following is a summary of the reportable segments.
Segments
Reportable segments
Investment Businessof Holding
Companies

Main businesses

Core companies·Investment activities by SBG and its
subsidiaries

SoftBank Group Corp.
SoftBank Group Capital Limited
SoftBank Group Japan Corporation
SB Northstar LP

SoftBank Vision
Funds·Investment activities by SVF1, SVF2, and
LatAm Funds

SB Investment Advisers (UK)
Limited
SoftBank Vision Fund L.P.
SB Global Advisers Limited
SoftBank Vision Fund II-2 L.P.
SBLA Latin America Fund LLC

SoftBank·Consumer business: Provision of mobile
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 equipment
to retail customers·Media & EC (e-commerce) business:
Provision of internet advertising and ecommerce services·Financial business: Provision of payment
and financial services

SoftBank Corp.
Z Holdings Corporation
Yahoo Japan Corporation
LINE Corporation
PayPay Corporation

Arm·Design of microprocessor intellectual
property and related technology·Sale of software tools and provision ofrelated services

Arm Limited·Alternative investment managementbusiness·Fukuoka SoftBank HAWKS-related
businesses

Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

Other

7

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(a) Investment Business of Holding Companies Segment
1. Investment loss of ¥689.7 billion was recorded, mainly due to declines in the share prices of Alibaba,
Deutsche Telekom, and T-Mobile.
2. Segment loss was ¥394.5 billion as foreign exchange loss of ¥466.1 billion was recorded, although theabove investment loss was offset by ¥848.8 billion derivative gain (excluding gain or loss on investments).

OVERVIEWThis segment is led by SBG, which conducts investment activities, either directly or through its subsidiaries, as a
strategic investment holding company. The segment consists of SBG, SoftBank Group Capital Limited, SoftBank
Group Japan Corporation, the asset management subsidiary SB Northstar, and certain other subsidiaries engaged ininvestment and financing activities. Gains and losses on investments at Investment Business of Holding Companies
comprise gains and losses on investments held by SBG either directly or through its subsidiaries but do not include
gains and losses on investments pertaining to subsidiaries’ shares, such as dividend income from subsidiaries or
impairment losses related to subsidiaries’ shares.
This segment has approximately 120 portfolio companies, including Alibaba, T-Mobile, and Deutsche Telekom,
as well as investees of SB Northstar, most of which are investments classified as financial assets at FVTPL.
Investments classified as financial assets at FVTPL are measured at fair value every quarter, and any change in fairvalue is recorded in the Consolidated Statement of Profit or Loss as gains and losses on investments.
Alibaba
Alibaba shares held by the Company are classified as financial assets at FVTPL. They are measured at fair value
every quarter, and any change in fair value is recorded in the Consolidated Statement of Profit or Loss as gain orloss on investments. In addition, derivative financial assets and liabilities are recognized for prepaid forward
contracts using Alibaba shares. These are measured at fair value every quarter, and any change is recorded in theConsolidated Statement of Profit or Loss as derivative gain or loss (excluding gain or loss on investments).
Investment in listed stocks and other instruments by asset management subsidiaries
SB Northstar acquires and sells listed stocks and other instruments using surplus funds of SBG. Investment gain at
asset management subsidiaries for the first quarter was ¥0.9 billion, which brings the cumulative investment loss
1

since inception to ¥891.5 billion.* The balance of its shareholdings and other instruments as of the first quarter-end
was ¥85.8 billion.
SBG indirectly holds 67% and SBG’s Representative Director, Corporate Officer, Chairman & CEO Masayoshi
Son indirectly holds 33% of interests in SB Northstar. Masayoshi Son’s interest is deducted from the gains andlosses 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. If, at the end of the fund life (12 years + 2-year
extension), SB Northstar has any unfunded repayment obligations to SBG, Masayoshi Son will pay his pro rata
share of any such unfunded obligations based upon his relative ownership percentage of SB Northstar.
Note:
1. The cumulative investment loss amounts exclude the impact of SB Northstar’s investments in three Special
Purpose Acquisition Companies (“SPACs”) controlled by SB Investment Advisers (US) Inc.

8

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

FINANCIAL RESULTS(Millions of yen)Three months ended June 30
2022
2023
Gain (loss) on investments at Investment Businessof Holding Companies
Gain relating to settlement of prepaid
forward contracts using Alibaba shares
Gain relating to sales of T-Mobile shares
Realized gain (loss) on investments at asset
management subsidiaries
Unrealized gain (loss) on valuation of
investments at asset management
subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries*1
Realized gain (loss) on investments
Unrealized loss on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized gain (loss)*1
recorded in the past fiscal years
Derivative gain (loss) on investments
Other
Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Loss on equity method investments
Derivative gain (loss)(excluding gain (loss) on investments)
Mainly due to prepaid forward contracts using
Alibaba shares
Other gain (loss)
Segment income (income before income tax)

Change Change %111,233(689,697)(800,930)-

A

97,263
24,842-(97,263)(24,842)

-

7,176

(59)

(7,235)-(69,479)

906

70,385-(5,246)(400)(27,605)(27,941)

18
17,686(620,356)(620,343)

5,264
18,086(592,751)(592,402)-

336
73,60911,073(16,657)(80,029)(822,035)(139,782)(13)(97,024)
9,132(19,633)(97,256)(466,107)(1,581)(349)(170,633)(1,941)(2,976)(17,227)355,928
138,201(17.5%)
17.9%
21.5% B
- C
- D

(244,986)(5,797)

848,775
30,959

1,093,761
36,756-(1,198,053)(394,540)

803,513

-

E

Note:
1. Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in thefirst quarter are reclassified as “realized gain (loss) on investments.”

A Loss on investments at Investment Business of Holding Companies: ¥689,697 million· Unrealized loss of ¥620,356 million was recorded on valuation of investments. This mainly included unrealized
valuation losses of ¥553,354 million for Alibaba shares, ¥77,200 million for Deutsche Telekom shares, and¥31,869 million for T-Mobile shares, due to declines in their share prices.
· Derivative loss of ¥97,024 million on investments was recorded, mainly due to a loss of ¥105,377 million
recorded pertaining to the right to acquire T-Mobile shares for no additional consideration if certain conditions aremet.
B Finance cost: ¥97,256 million (increase of ¥17,227 million year on year)
2

Interest expenses at SBG increased by ¥17,363 million year on year to ¥96,650 million, mainly due to higher
interest expenses on prepaid forward contracts using Alibaba shares and the asset-backed finance using Arm shares,
both of which were affected by rising interest rates. This was partially offset by a decrease in interest expenses

9SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

following the full repayment of a margin loan using Alibaba shares in the second quarter of the previous fiscal year
and the repurchase of foreign currency-denominated senior notes in the third quarter of the previous fiscal year.
2

Since the majority of SBG’s interest-bearing debt is on fixed interest rates, the impacts of short-term interest rateincreases on interest expenses are limited.
C Foreign exchange loss: ¥466,107 million
Foreign exchange loss of ¥466,107 million (net) was recorded due to the weaker yen, mainly because the U.S.
dollar-denominated debts (such as borrowings from subsidiaries and foreign currency-denominated senior notes) of
SBG and domestic subsidiaries used for fund procurement exceeded their U.S. dollar-denominated cash and cash
equivalents and loans receivable.
D Loss on equity method investments: ¥1,581 million (improvement of ¥138,201 million year on year)
3

In the same period of the previous fiscal year, loss on equity method investments of ¥135,517 million on Alibaba
was recorded. The company was excluded from the associates in the second quarter of the previous fiscal year.
E Derivative gain (excluding gain or loss on investments): ¥848,775 million
Derivative gain of ¥769,852 million was recorded mainly for the prepaid forward contracts using Alibaba shares.

10SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Reference: Impact of the asset management subsidiaries on the Company’s Condensed Interim Consolidated
Statement of Financial Position

Cash and cash equivalents
Investments from asset management subsidiaries
Securities pledged as collateral in asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other financial assets
Other
Total assets
Interest-bearing debt
Derivative financial liabilities in asset management subsidiaries
Other financial liabilities
Other
Total liabilities*1

Investments from Delaware subsidiaries
Equivalent amount of cash investments by SBG in Delaware subsidiaries
Equivalent amount of loans to Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Retained earnings
Exchange differences on translating foreign operations
Equity(Millions of yen)
June 30, 2023
248,330
80,802
4,959
44
5,800
1,641
341,576
5,014
5,228
12,4702,405
25,117
1,114,259
39,786
1,054,580
19,893 A(905,259) B
107,459
316,459 C

Note:
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*2
Cumulative loss attributable to non-controlling interests
Exchange differences on translating foreign operations
Non-controlling interests (interests of Masayoshi Son)

(Millions of yen)
19,893 A(301,657)
42,750(239,014) D

Note:
2. One-third of B in the above table(Interests in equity (C above))(Millions of yen)
555,473(239,014) DInterests of SBG
Non-controlling interests (interests of Masayoshi Son)
Equity316,459

11

C

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Main interest-bearing debt and lease liabilities in this segment
Balance as of June 30, 2023
in Condensed Interim
Consolidated Statement of
Financial Position¥429.0 billion¥5,950.4 billion¥10.4 billion¥189.0 billion

Borrower
SBG

Type
Borrowings
Corporate bonds
Lease liabilities
Commercial paper

Wholly owned subsidiaries*1
conducting fund procurement

Borrowings using Arm shares(asset-backed finance)¥1,225.3 billion

Prepaid forward contracts using Alibaba
shares (floor contracts, collar contracts,and forward contracts)¥4,764.7 billion

Borrowings using SoftBank Corp. shares(margin loan)¥497.8 billion

Prepaid forward contracts using
T-Mobile shares (collar contracts)¥409.8 billion

Collar transactions using Deutsche
Telekom shares¥481.5 billion

Note:
1. Borrowings of wholly owned subsidiaries conducting fund procurement are non-recourse to SBG.

12

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(b) SoftBank Vision Funds Segment
1. Gross performance since inception was $12.4 billion in gain for SVF1 and $18.6 billion in loss for
*1
SVF2.
*2
SVF1: $102.0 billion in cumulative returns on $89.6 billion investments, with $12.4 billion gross gain
· Investment gain was $0.9 billion (¥131.2 billion) for the first quarter.
· The fair value of investments held at the first quarter-end increased by 1.6% from the previous*3
quarter-end.
*4- Up 1.9% for public portfolio companies, mainly due to rise in share prices of Coupang, Grab, andRoivant, partially offset by decline in share prices of Chinese portfolio companies such as DiDi, and othercompanies*4- Up 1.5% for private portfolio companies, mainly reflecting markups of a number of portfolio companies
due to share price rises among market comparable companies, partially offset by markdowns of certain
weaker-performing companies, consistent with private valuation methodologies adopted
SVF2: $33.2 billion in cumulative returns on $51.8 billion investments, with $18.6 billion gross loss
· Investment loss was $0.3 billion (¥44.0 billion) for the first quarter.
· The fair value of investments held at the first quarter-end increased by 0.2% from the previous quarter-end.
- Up 1.6% for public portfolio companies, mainly due to rise in share price of Symbotic, partially offset by
decline in share prices of WeWork and other companies- Flat for private portfolio companies. Markups of a number of portfolio companies mainly due to shareprice rises among market comparable companies, consistent with private valuation methodologies
adopted, were offset by markdowns of select portfolio companies due to their weaker performances.
Investment gains or losses associated with SVF’s investments in shares in the Company’s subsidiaries(mainly Arm) are included in “Gain (loss) on investments at SoftBank Vision Funds” under this segment but
are eliminated in consolidation and not included in “Gain (loss) on investments at SoftBank Vision Funds”
in the Consolidated Statement of Profit or Loss.
(As of June 30, 2023; in billions of U.S. dollars)

The Fiscal*5
Year

Since Inception*6

Gain/loss

Gain/loss
Apr - Jun

Exited investments
25.2
43.3
Investments before exit
64.4
56.3
Reversal of valuation gain/loss recorded in prior periods for exitedinvestments in the fiscal year
0.0
2.4
Derivatives/Interests/Dividends

18.1

(0.7)

(8.1)

0.9

2.4

(0.0)

Total

12.4

0.9

SVF1

Investment*6
cost

Returns

89.6

102.0

0.7

¥131.2 billion

SVF2
Exited investments
1.8
3.0
Investments before exit
50.0
30.4
Reversal of valuation gain/loss recorded in prior periods for exitedinvestments in the fiscal year
Derivatives/Interests/Dividends
(0.2)

Total

51.8

33.2

1.2

0.1

(19.6)

(0.4)

(0.0)
(0.2)

(18.6)

0.0(0.3)¥(44.0) billion

2. Expanding investments while continuing to monetize investments under a disciplined approach· SVF2 made investments totaling $1.56 billion in the first quarter· SVF1 and SVF2 sold investments for a total of $0.89 billion in the first quarter, including full exits of three1
portfolio companies and partial exits of several public portfolio companies.

13

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Notes:
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 first quarter. The
classification of portfolio companies as public/private is based on their status as of the fiscal year-end. For portfolio companies witha change in the classification of public/private during the first quarter, comparisons are made by adjusting their status at the previous
fiscal year-end to that of the first 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 thosethat 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 the fiscal year represents the exit price, net of the investment cost of suchinvestments. Unrealized valuation gains and losses of such investments recorded in prior years are presented as a reversal ofvaluation gain/loss recorded in prior periods for exited investments in the fiscal year.
6. For derivatives, the investment costs represent the costs of the derivatives. Investment returns represent the exit price for exitedinvestments, the fair value for investments before exits, the settlement amount of settled contracts or the fair value of open contracts
for derivatives, and the respective amounts received for interest or dividends.

OVERVIEW
Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund 1(SVF1), SoftBank Vision Fund 2 (SVF2), and SoftBank Latin America Funds (LatAm Funds).

Outline of principal funds in the segment
As of June 30, 2023
SVF1 and SVF2
SVF1 and SVF2 aim to maximize returns from a medium- to long-term perspective through large-scale investments
4

in high-growth-potential companies leveraging AI, particularly in “unicorns.” SVF1’s investment period has
ended, and the remaining undrawn capital is reserved for follow-on investments in existing portfolio companies(including investments in joint ventures with them), fixed distributions, and operating expenses.

Primary limited partnership
Total committed capital(billions of U.S. dollars)Manager

Investment period
Fund life

SVF1
SoftBank Vision Fund L.P.
98.6
*1

The Company: 33.1
Third-party investors: 65.5
SBIA
(The Company’s wholly owned
U.K. subsidiary)Ended on September 12, 2019
Until November 20, 2029 + Up to two
1-year extensions option by SBIASVF2SoftBank Vision Fund II-2 L.P.
60.0
The Company: 57.4
*2
Third-party investor (MgmtCo): 2.6
SBGA(The Company’s wholly owned
U.K. subsidiary)
To be determined by the manager
Until October 4, 2032 + Up to two
1-year extensions option by SBGA

Notes:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that is 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. A co-investment program has been introduced for SVF2 for the Company’s management. MASA USA LLC (“MgmtCo”), an
investment entity for the co-investment program, participates in this fund. The interest attributable to MgmtCo is treated as a thirdparty interest in the Company’s consolidated financial statements. For details, see “(1) Transactions between SVF2 and relatedparties” under “13. Related party transactions regarding a co-investment program with restricted rights to receive distributions” in“(6) Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements
and Primary Notes.”

14

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

LatAm Funds
LatAm Funds invests in companies harnessing the power of data and technology to redefine industries within
rapidly developing Latin America.
LatAm Funds
Primary limited liability company
Total committed capital(billions of U.S. dollars)Manager
Investment period
Fund life

SBLA Latin America Fund LLC
7.6

*1

SBGA
(The Company’s wholly owned U.K. subsidiary)
To be determined by the manager
Until October 4, 2032
+ Up to two 1-year extensions option by SBGA

Note:
1. A co-investment program has been introduced for LatAm Funds for the Company’s management. MgmtCo participates in this fund.
The interest attributable to MgmtCo is treated as a third-party interest in the Company’s consolidated financial statements. For
details, see “(2) Transactions between LatAm Funds and related parties” under “13. Related party transactions regarding a coinvestment program with restricted rights to receive distributions” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary Notes.”

Financing at SVF
SVF1, SVF2, and LatAm Funds may independently make borrowings that are non-recourse to SBG for the purposeof leveraging and maintaining liquidity. Types of borrowings include asset-backed finance, which utilizes assets
held to enhance returns and distribute to limited partners.

Fair value measurement of investments
SVF1, SVF2, and LatAm Funds calculate the fair value of their investments at each quarter-end in accordance withIFRS 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 of
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 using single or multiple factors, such as quoted prices andother observable inputs. For private portfolio companies, one or more valuation methods are used, including themarket approach using figures of market comparable companies, the income approach using estimated future cash
flows, and the recent transactions method using prices of recent funding rounds and similar transactions.

15SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

FINANCIAL RESULTS(Millions of yen)

Gain (loss) on investments at SoftBank*1
Vision Funds
Gain (loss) on investments at SVF1, SVF2,
and LatAm Funds*2

Three months ended June 30
2022
2023

ChangeChange %(2,933,845)

159,773

3,093,618-(2,935,030)(26,722)

134,703(68,179)

3,069,733(41,457)-

212,237
120,887

3,128,132
3,002,359-

91,350125,773

-

1,491
2,453
(13,299)
25,070(18,299)(23,628)

1,076(35,197)
17,17923,885605(8,227)259.3%(93.5%)(3.2%)
53.4%(58,081)
1,276

(499)
(689,448)(4,258)- B(76.9%)

61,0412,391,791-

Realized loss on investments
Unrealized gain (loss) on valuation of
investments(2,915,895)
Change in valuation for the fiscal year
(2,881,472)
Reclassified to realized gain (loss) recorded*2(34,423)in the past fiscal years
Interest and dividend income frominvestments
415
Derivative gain on investments
37,650Effect of foreign exchange translation(30,478)
Gain on other investments
1,185
Selling, general and administrative expenses(18,904)
Finance cost
(15,401)
Derivative gain (excluding gain (loss) on
investments)
499
Change in third-party interests in SVF
631,367
Other gain
5,534

Segment income (income before income tax)

(2,330,750)

A

Notes:
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 and losses 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 thefiscal year are reclassified as realized gains and losses on investments.

Investments and disposals by SVF1 and SVF2
(Billions of U.S. dollars)
5

SVF1

Investments madeduring the first quarter-

Disposals madeduring the first quarter
0.56

SVF2

1.56

0.33

Total

1.56

0.89

Note: Investments include new and follow-ons.

16

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Segment income
A Gain on investments at SoftBank Vision Funds: ¥159,773 million(Millions of yen)Three months ended June 30
2022
2023

ChangeGain (loss) on investments at SVF1
Loss on investments at SVF2
Gain (loss) on investments at LatAm Funds
Gain on other investments(1,313,041)(1,297,053)

131,175(43,968)

1,444,216
1,253,085(324,936)

372,432

1,185

47,49625,070Gain (loss) on investments at SoftBank Vision Funds (A)(2,933,845)

159,773

3,093,618(14,715)

172,816

187,531(2,919,130)(13,043)2,906,087

Gain (loss) on SVF’s investments in shares of
the Company’s subsidiaries, etc. (B)Loss on investments at SoftBank Vision Funds
in the Consolidated Statement of Profit or Loss (A) - (B)23,885B Change in third-party interests in SVF: ¥(58,081) million
This indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions
and performance-based distributions, which are based on the gains and losses on investments at each fund, net of (i)management and performance 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, andperformance 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 “3. SoftBank Vision Funds business” in “(6) Notes to Condensed
Interim Consolidated Financial Statements” in “2. Condensed Interim Consolidated Financial Statements andPrimary Notes.”

17

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Investment performance
As of June 30, 2023
SVF1
(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
102

Cumulative
investment
cost
89.6

Cumulative
investment
return102.0

Cumulative
*1
gain
12.4

Cumulative
number ofinvestments(4)(4)

Cumulative
investment
cost
(2.0)
-

Cumulative
investment
return(2.0)-

Cumulative
*1
gain
-

94

87.6

100.0

12.4

Investment gainrecorded for the
fiscal year
Apr - Jun
0.9

(Reference)*2

Effects of share exchanges*3
Effects of dividends in kindNet of effects of share exchanges
and dividends in kind(1) Exited investments

Partial exit
*4
Full exit
Total

Number ofinvestments
26
26

Investment
cost
4.2
21.0
25.2

Exit price
13.2
30.1
43.3

(2) Investments before exit (investments held at the first quarter-end)*6

PublicPrivate
Total

Number ofinvestments
23
53
76

Cumulative*1
realized gain
9.0
9.1
18.1

Realized gain
(loss)
recorded for the
fiscal year
Apr - Jun
0.0
(0.7)
(0.7)

Unrealized
valuation gainrecorded for the
fiscal year
Apr - Jun
0.4
0.5
0.9

*5

Investment
cost
30.2
34.2
64.4

Fair value
20.5
35.8
56.3

Cumulative
unrealized
valuation gain
*7
(loss)
(9.7)
1.6
(8.1)

Derivative
cost
(0.0)
0.0
0.0

Fair value /settlement
price
(0.0)
1.5
1.5

Cumulative
derivative gain
(loss)
(0.0)
1.5
1.5

Derivative loss
recorded for the
fiscal year
Apr - Jun
(0.0)
(0.0)

Cumulative
income0.9Interest anddividend income
recorded for the
fiscal year
Apr - Jun-

(3) Derivatives

Unsettled
SettledTotal(4) Interest and dividend income from investments
Interest anddividend
income0.9

Total
Notes:* 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. 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 shareexchanges 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., and Candy Digital,
Inc. and Fanatics Holdings, Inc. (an existing portfolio company). In addition, SVF1 exchanged all shares in two portfolio companies

18SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

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.
3. 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, Inc. and Acetone Limited (equity interest in Arm China JV)) and two
investments acquired from Reef Global Inc. (REEF Proximity Aggregator LLC and Parking Aggregator LLC).
4. Includes disposals (sales) as a result of share exchanges and restructuring of portfolio companies.
5. The classification of portfolio companies as public/private is based on their status as of the first quarter-end.
6. Includes DiDi Global Inc., which is traded in the over-the-counter market
7. 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 the period leading up to the decision to cancel the transfer are not included in thepresentation.

SVF2(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
277

Cumulative
investment
cost
51.8

Cumulative
investment
return33.2

Cumulative*1
loss(18.6)

Cumulative
number ofinvestments(4)

Cumulative
investment
cost-

Cumulative
investment
return-Cumulative
*1
loss
-

273

51.8

33.2

(18.6)

Exit price
0.1
2.9
3.0

Cumulative
realized gain
*1
(loss)
(0.1)
1.3
1.2

Investment loss
recorded for the
fiscal year
Apr - Jun
(0.3)

(Reference)

Effects of financial support to WeWork
Net of effects of financial support to
WeWork*2(1) Exited investments

Partial exit
Full exit
Total

Number ofinvestments
55Investment
cost
0.2
1.6
1.8

(2) Investments before exit (investments held at the first quarter-end)*4

PublicPrivate
Total

Number ofinvestments
14
258
272

Realized gainrecorded for the
fiscal year
Apr - Jun
0.0
0.1
0.1

*3

Investment
*5
cost
8.7
41.3
50.0

Fair value
4.9
25.5
30.4

Unrealized
valuation gain
Cumulative (loss) recorded for
unrealized
the fiscal year
valuation loss
Apr - Jun
(3.8)
0.0
(15.8)(0.4)(19.6)(0.4)

Derivative
cost-

Fair value /settlement
price
(0.1)
(0.1)
(0.2)

Derivative gain
(loss) recorded for
Cumulative
the fiscal year
derivative loss
Apr - Jun
(0.1)
0.0
(0.1)
(0.0)
(0.2)
0.0

Interest anddividend
income0.0Interest anddividend income
recorded for the
fiscal year
Apr - Jun
0.0*5(3) Derivatives

Unsettled
SettledTotal(4) Interest and dividend income from investments

Total

19

Cumulative
income0.0SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Notes:* 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. WeWork senior secured notes (1) purchased by SVF2 in accordance with an agreement between the Company and WeWork in
October 2019 (redeemed by WeWork in May 2023), the convertible bonds (2 and 3) held by SVF2 in accordance with an agreement
among WeWork, its principal bondholders, SVF2, and others to support the restructuring of WeWork’s debt, and a new loan
commitment agreement (4) with WeWork for the purchase of notes to be issued by WeWork, are deducted from the investment
count.
3. The classification of portfolio companies as public/private is based on their status as of the first quarter-end.
4. Includes Zhangmen Education Inc. and Pear Therapeutics, Inc., which are traded in the over-the-counter market
5. The investment cost and fair value of investments before exit in SVF2 include those related to a minor SVF2 ownership percentage
in another portfolio company received as part of the consideration for SVF2’s investment in a portfolio company.

LatAm Funds
As of the first quarter-end, LatAm Funds posted $6.0 billion in cumulative returns on $7.3 billion in investments,
with a gross loss of $1.3 billion since inception. Of this, investment gain for the first quarter was $0.3 billion (¥47.5
billion).
Capital deployment
As of June 30, 2023
SVF1
(Billions of U.S. dollars)

Total

The Company

Third-party investors

Drawn capital (B)Return of capital (non-recallable) (C)Outstanding capital (D) = (B) – (C)

98.6
87.2
33.7
53.5

33.1
29.9
9.2
20.7

65.5
57.3
24.5
32.8

Remaining committed capital (E) = (A) – (B)

11.4

3.2

8.2

Committed capital (A)6Note: The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation that is 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.

SVF2(Billions of U.S. dollars)

Total
60.0
52.7
7.3

Committed capital (A)Drawn capital (B)Remaining committed capital (C) = (A) – (B)Note: Remaining committed capital includes recallable return of capital.

(Reference: Breakdown of committed capital as of March 31, 2023)
Total committed capital
The Company’s equity commitment to investments outside the scope of the co-investment program
The Company’s preferred equity commitment to SVF2 LLC*1
The Company’s equity commitment to SVF2 LLC
MgmtCo’s equity commitment to SVF2 LLC

60.0
9.8
35.2
12.4
2.6

Notes:*As of the first quarter-end, no capital has been paid by MgmtCo.
1. 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.

As of the first quarter-end, total committed capital for LatAm Funds was $7.6 billion, with drawn capital totaling$7.3 billion.
For a complete list of portfolio companies and historical quarterly results of SVF1, SVF2, and LatAm Funds, see the Data Sheets
under “Earnings Results Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.

20

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(c) SoftBank Segment
Segment income increased by 14.7% yoy mainly due to increases in income for the Media & EC businessand the enterprise business, despite a decrease in income in the consumer business, which was affected bya fall in mobile service charges.
(Millions of yen)Three months ended June 30
2022
2023
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain on investments
Finance cost
Loss on equity method investments

ChangeChange %1,380,802
222,214(184,156)
1,133(15,341)(10,351)

1,430,067
254,987(181,576)
2,217(16,140)(7,599)49,26532,773
2,580
1,084
(799)
2,752

3.6%
14.7%
(1.4%)
95.7%
5.2%
-

901
7,769

824
30,265(77)
22,496(8.5%)
289.6%

Derivative gain
(excluding gain (loss) on investments)
Other gain

Note: Since PayPay Corporation became a subsidiary of SoftBank Corp. and Z Holdings Corporation in October 2022, its operating
results are no longer included in “Other,” but are presented within the SoftBank segment starting from the third quarter of theprevious fiscal year, with the results retrospectively adjusted and presented for the same period of the previous fiscal year.

OVERVIEW
Segment results include the results of business activities of SoftBank Corp. mainly in Japan, such as provision ofmobile services and sale of mobile devices, as well as provision of broadband and e-commerce services. Under its
Beyond Carrier strategy, SoftBank Corp. aims to achieve sustainable growth in its core telecommunications
business, while expanding its business in domains outside of telecommunications through internet services, such asYahoo! JAPAN and LINE, and the development of businesses that utilize advanced technologies, including AI, IoT,
and FinTech, which includes the cashless payment service PayPay.
FINANCIAL RESULTS
Segment income was ¥254,987 million, an increase of ¥32,773 million (14.7%) year on year. This was mainly due
to increases in income in the Media & EC business (formerly the Yahoo! JAPAN/LINE business) and the enterprisebusiness, despite a decrease in income in the consumer business. The increase also reflected a significant
contribution from a ¥19,739 million dilution gain from changes in equity interest recorded (under other gain in theabove table) mainly for Webtoon Entertainment Inc., the equity method associate.
Income in the consumer business decreased mainly due to a fall in mobile service charges. In the Media & EC
business, income increased mainly due to recording a gain of ¥10,459 million on the sale of AI-related business at
LINE Corporation. In the enterprise business, income increased due to higher sales of cloud services and otherproducts as the digitalization of enterprises accelerates.

21

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

GROUP REORGANIZATION PRIMARILY AMONG Z HOLDINGS AND ITS CORE WHOLLY OWNEDSUBSIDIARIES, LINE AND YAHOO JAPANIn February 2023, Z Holdings Corporation resolved on a policy for reorganization, including a merger primarily
among the company and its core wholly owned subsidiaries, LINE Corporation and Yahoo Japan Corporation (the"Reorganization"), in order to build an organizational structure that puts more emphasis on products, to accelerate
the expansion of synergies from the business integration and obtain funds for investment that will support asustainable profit growth from the fiscal year ending March 2024 onward and the creation of the future.
Furthermore, in April 2023, Z Holdings Corporation resolved to change its trade name to "LY Corporation" as of
the completion date of the Reorganization, which is expected to be October 1, 2023.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

22

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(d) Arm Segment
1. Both net sales and segment income decreased against a backdrop of a slowdown in semiconductor
industry sales◆ Net sales decreased by 10.8% yoy (U.S. dollar-based) as semiconductor industry revenues slowed due
to inventory correction and a slowdown in consumer spending. In yen terms, net sales decreased by
4.6% due to the weaker yen exchange rate used for translation in the preparation of the Company’s
consolidated financial statements.
- Royalty revenue decreased by 19.3% yoy (U.S. dollar-based) as sales of chips into markets such as
smartphones declined.
- License and other revenue increased by 3.6% yoy (U.S. dollar-based) with Arm signing major deals withcompanies developing chips for future smartphone, automotive, embedded, and AI applications.
◆ Segment loss of ¥9.5 billion due to a decrease in net sales and an increase in expenses related to stockcompensation schemes combined with increased headcount to enhance R&D capability
2. Confidential submission of draft registration statement on Form F-1 by Arm
Arm announced in April 2023 that it had confidentially submitted a draft registration statement on Form F-1
to the U.S. Securities and Exchange Commission relating to the proposed initial public offering of American
depositary shares representing Arm’s ordinary shares. The Company intends that Arm will continue to be aconsolidated subsidiary following the completion of the proposed initial public offering. The Company does
not expect that any such offering would have a material effect on its consolidated results or financial position.
(Millions of yen)Three months ended June 30
2022
2023
Net sales

92,751
29,846*1

Segment income (income before income tax)

88,502(9,508)ChangeChange %(4,249)(39,354)(4.6%)-Note:
1. Segment income included amortization expenses of ¥15,659 million for the first quarter and ¥14,630 million for the same period of
the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the time of theacquisition of Arm.

OVERVIEW
Arm’s operations primarily consist of licensing semiconductor intellectual property (IP), including the design ofenergy-efficient microprocessors and associated technologies.
Semiconductor industry trends can have a significant impact on Arm’s financial results, both positively andnegatively. Industry growth benefits Arm’s royalty revenue, which can grow along with industry sales. Industry
growth can also encourage Arm’s customers to increase design activity, creating new opportunities for Arm tolicense its latest technologies and thus driving license and other revenue.
As Arm prepares for a potential public offering, it is continuing to increase investments in R&D to develop
solutions to meet customers’ future technology needs.

23SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

FINANCIAL RESULTS
Net sales in U.S. dollars
Net sales in this section are presented in U.S. dollars as Arm’s revenue is primarily based on U.S. dollars.
(Millions of U.S. dollars)
Three months ended June 30
2022
2023

Change Change %Royalty revenue
License and other revenue

453
266

365
276

(88)
10

(19.3%)
3.6%

Total net sales

719

641

(78)

(10.8%)

Note: From the first quarter, the names of sales categories have been changed from “Technology royalty” and “Technology nonroyalty” to “Royalty revenue” and “License and other revenue,” respectively. The aggregation method remains unchanged.

Net sales decreased by $78 million (10.8%) year on year due to slowing industry growth impacting royalty
revenues, partially offset by license and other revenue.
Royalty revenue
Royalty revenue decreased by $88 million (19.3%) year on year. Royalty revenues were impacted by slowing
industry revenue mainly in smartphones and other consumer facing markets such as IoT devices for the home,partially offset by growth in chips for cloud servers and automotive applications.
License and other revenue
License and other revenue increased by $10 million (3.6%) year on year. In the first quarter, strong demand forArm’s technology continued as its licensees look to develop new products beyond industry cycle. As a result, Armsigned a number of high value deals with leading companies who intend to build chips for smartphones,
automotive, embedded and AI applications.
Segment income
Segment loss of ¥9,508 million, which is a deterioration of ¥39,354 million year on year, was recorded due to lower
net sales and an increase in expenses related to stock compensation schemes as well as an increase in the number of
employees as Arm strives to increase its R&D capability.
OPERATIONS
7
Royalty units(Billion)
Three-month period ended June 30
2022
2023
Royalty units as reported by Arm’s licensees

7.3

6.8

Change Change %(0.5)(6.4%)In the first quarter, Arm’s licensees reported shipments of 6.8 billion Arm-based chips for the three months fromJanuary 1 to March 31, 2023, a decrease of 6.4% year on year.

24SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

TECHNOLOGY DEVELOPMENT
Arm and its licensees made the following technology-related announcements in the first quarter. For details of eachtechnology development, please refer to the press releases posted on the websites of the announcing companies.
· Arm announced in May 2023 its latest Total Compute Solutions for mobile applications processors, TCS23, a
platform for premium mobile computing devices which will power immersive games, real-time 3D experiences
and next-gen AI applications.
· NVIDIA Corporation announced in May 2023 a supercomputer built on the NVIDIA Grace CPU Superchip,adding to a wave of new energy-efficient supercomputers based on the Arm Neoverse platform.
· NVIDIA Corporation and SoftBank Corp. announced in May 2023 that they are collaborating on a pioneering
platform for generative AI and 5G/6G applications that is based on the NVIDIA GH200 Grace Hopper Superchip
and which SoftBank Corp. plans to roll out at new, distributed AI data centers across Japan.

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

25

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(2) Overview of Financial Position
1. Status of investment assets*1◆ Carrying amount of investments from SVF (FVTPL) increased by ¥987.8 billion from the previous*2fiscal year-end to ¥11,477.5 billion, which reflected the following:- ¥403.0 billion increase at SVF1: The balance decreased by $0.33 billion due to a decrease in the fair1value of investments held at the first quarter-end and by $0.51 billion due to divestments.
- ¥474.4 billion increase at SVF2: The balance increased by $1.51 billion due to new and follow-on
investments, despite decreases of $0.14 billion due to a decrease in the fair value of investments held at
the first quarter-end and $0.26 billion due to divestments.
- ¥110.3 billion increase at LatAm Funds◆ Carrying amount of investment securities decreased by ¥215.4 billion from the previous fiscal year*2
end to ¥7,491.1 billion, which included the following carrying amounts:- Alibaba shares of ¥4,289.0 billion (a ¥553.4 billion decrease from the previous fiscal year-end)- T-Mobile shares of ¥872.8 billion (a ¥103.6 billion increase from the previous fiscal year-end)- Deutsche Telekom shares of ¥711.0 billion (a ¥18.4 billion decrease from the previous fiscal year-end)
2. Changes in liabilities associated with financing activities◆ Interest-bearing debt of SBG increased by ¥272.5 billion from the previous fiscal year-end.
- SBG issued domestic hybrid bonds and executed the hybrid loan to replace the USD-denominated NC6undated hybrid notes ($2.0 billion) with the first voluntary call date in July 2023. The replacement is now
complete.
◆ Interest-bearing debt of wholly owned subsidiaries conducting fund procurement increased by*2¥1,113.8 billion from the previous fiscal year-end.
- Raised $4.39 billion through the new conclusion of prepaid forward contracts using Alibaba shares.
3. Changes in equity◆ Total equity increased by ¥800.5 billion from the previous fiscal year-end.
- Retained earnings decreased due to a ¥477.6 billion net loss attributable to owners of the parent.
- Exchange differences from the translation of foreign operations increased by ¥1,257.0 billion due to theweaker yen.
◆ Ratio of equity attributable to owners of the parent (equity ratio) was 21.4% at the first quarter-end,
compared with 20.6% at the previous fiscal year-end.
Notes:
1. Investments from SVF (FVTPL) do not include SVF’s investments in the Company’s subsidiaries (primarily Arm and 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 an 8.6% depreciation of the yen against the U.S. dollar in the foreign currency
exchange rate used for translations at the first quarter-end.

(Millions of yen)March 31, 2023

June 30, 2023

ChangeChange %Total assets
Total liabilities

43,936,368
33,287,153

45,680,967
34,231,209

1,744,599
944,056

4.0%
2.8%

Total equity

10,649,215

11,449,758

800,543

7.5%

26

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(a) Assets(Millions of yen)March 31, 2023

June 30, 2023

ChangeCash and cash equivalents
Trade and other receivables
Derivative financial assets
Other financial assets
Inventories
Other current assets
Total current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts

6,925,153
2,594,736
249,414371,313
163,781
282,085
10,586,482
1,781,142
858,577
5,199,480
2,409,641
332,856

7,316,147
2,450,124
279,144424,637
162,184
345,170
10,977,406
1,785,699
835,201
5,467,430
2,435,397
333,076

390,994(144,612)
29,730 A
53,324(1,597)63,085
390,924
4,557(23,376)
267,950 B

Investments accounted for using
the equity method
Investments from SVF (FVTPL)
SVF1
SVF2
LatAm Funds
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets

730,440
10,489,722
6,110,527
3,646,305
732,890
7,706,501
1,170,845
2,303,620
210,823
156,239
33,349,886

826,508
11,477,480
6,513,575
4,120,725
843,180
7,491,060
1,368,033
2,312,737
204,696
166,244
34,703,561

96,068987,758 C
403,048
474,420
110,290(215,441) D
197,188 E
9,117 F
(6,127)
10,005
1,353,675

Total assets

43,936,368

45,680,967

1,744,599

25,756220

Reasons for changes by primary component
Components
Current assets
A Derivative financial assets

Main reasons for changes from the previous fiscal year-end· Derivative financial assets related to the prepaid forward contracts using
Alibaba shares increased by ¥84,913 million, mainly due to a fall in
Alibaba share price.
· Contingent value rights, which were received in June 2020 in relation to
the disposal of T-Mobile shares and recorded as derivative financial assets
at the previous fiscal year-end in the amount of ¥67,308 million, werevested on June 1, 2023, and the Company received 3.6 million T-Mobile
shares. The shares are recorded as investment securities in the same way
as existing holdings of T-Mobile shares.

27SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Components
Non-current assets
B Goodwill

Main reasons for changes from the previous fiscal year-end

C Investments from SVF(FVTPL)· The main factor of the increases in the carrying amount of investments at
SVF1, SVF2, and LatAm Funds is an 8.6% depreciation of the yen against the
U.S. dollar in the foreign currency exchange rate used for translations at thefirst quarter-end.
· The carrying amount of investments at SVF1 increased by ¥403.0 billion. On
a U.S. dollar basis, the carrying amount decreased by a total of $0.84 billion,
reflecting a decrease of $0.33 billion due to a decrease in the fair value ofinvestments held at the first quarter-end and a decrease of $0.51 billion due to1divestments.
· The carrying amount of investments at SVF2 increased by ¥474.4 billion. On
a U.S. dollar basis, the carrying amount increased by a total of $1.11 billion,
reflecting an increase of $1.51 billion due to new and follow-on investments,
despite decreases of $0.14 billion due to a decrease in the fair value ofinvestments held at the first quarter-end and $0.26 billion due to divestments.
· The carrying amount of investments at LatAm Funds increased by ¥110.3
billion. On a U.S. dollar basis, the carrying amount increased by a total of$0.33 billion, reflecting increases of $0.34 billion in the fair value of portfolio*1
companies held at the first quarter-end and $0.02 billion due to new andfollow-on investments, which were partially offset by a decrease of $0.03
billion due to divestments.

Goodwill of Arm increased by ¥271,303 million due to an 8.6% depreciation of
the yen against the U.S. dollar in the foreign currency exchange rate used fortranslations at the first quarter-end.

For details on the status of investments at SVF1, SVF2, and LatAm Funds, see“(b) SoftBank Vision Funds Segment” under “b. Results by Segment” in “(1)Overview of Results of Operations.”
D Investment securities· The carrying amount of Alibaba shares decreased by ¥553,354 million ($6.68
billion) due to a fall in the share price. The balance at the first quarter-end was¥4,288,951 million ($29.58 billion).
· The carrying amount of T-Mobile shares increased by ¥103,587 million ($0.26
billion) (balance at the first quarter-end: ¥872,793 million ($6.02 billion)).
This mainly reflected the receipt of 3.6 million shares of the company(balance at the first quarter-end: ¥71,824 million) upon vesting contingent
value rights received in June 2020 in relation to the disposal of T-Mobile
shares, despite a fall in the share price.
· The carrying amount of Deutsche Telekom shares decreased by ¥18,439*2
million ($0.56 billion ), due to a fall in the share price (balance at the firstquarter-end: ¥711,044 million ($4.90 billion)).
The carrying amount of Alibaba shares, T-Mobile shares, and Deutsche
Telekom shares as of the first quarter-end also included the increase caused byan 8.6% depreciation of the yen against the U.S. dollar in the foreign currency
exchange rate used for translations.

Notes:
1. Includes the impact from the stronger local currencies against the U.S. dollar
2. Includes the impact from the stronger euro against the U.S. dollar as the shares are held by a U.S. subsidiary28

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Components
E Derivative financial assets

Main reasons for changes from the previous fiscal year-end· Derivative financial assets related to prepaid forward contracts using Alibaba
shares increased by ¥150,165 million, mainly due to a fall in Alibaba shareprice.
· The fair value of the contingent consideration related to T-Mobile shares
decreased by ¥39,069 million (balance at the first quarter-end: ¥794,701
million).

F Other financial assets

During the first quarter, WeWork unsecured notes (face value: $1.65 billion)
were transferred to SVF2. The notes were recorded in the amount of ¥110,735
million at the previous fiscal year-end (carrying amount of ¥181,826 million
less allowance for doubtful accounts of ¥71,091 million). Subsequently, thenotes were exchanged for WeWork shares and convertible bonds, which arerecorded under Investments from SVF (FVTPL).

29

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Reference: Cash and cash equivalents by entity
Consolidated cash and cash equivalents increased by ¥391.0 billion to ¥7,316.1 billion from the previous fiscal
year-end. Of this, cash and cash equivalents of SBG and wholly owned subsidiaries conducting fund procurement,
etc. increased by ¥777.4 billion to ¥4,793.5 billion. For details, see “(3) Overview of Cash Flows.”(Millions of yen)March 31, 2023

June 30, 2023

Change4,016,085
3,454,474

4,793,506
4,528,441

777,421
1,073,967

543,380
18,231

16,735248,330(526,645)
230,099

72,15936,9302,818
97,54645,09064,442
3,348
46,039(27,069)
27,512
530(51,507)

280,768
89,821

276,737
33,605(4,031)(56,216)

857,430
298,277
532,871
640,448734,204
263,796
530,011525,369(123,226)(34,481)(2,860)(115,079)

6,925,153

7,316,147

390,994

SBG and wholly owned subsidiaries
conducting fund procurement, etc.
SBG
Wholly owned subsidiaries conducting fundprocurement
SB Northstar
SoftBank Vision Funds segment
SVF1
SVF2
LatAm Funds
SBIA, SBGA, SBLA Advisers Corp.
SoftBank segment
SoftBank Corp.
Z Holdings Corporation
PayPay Corporation, PayPay Bank
*1
Corporation, PayPay Card Corporation
Yahoo Japan Corporation
OthersOthersTotal

Note:
1. Cash and cash equivalents of PayPay Bank Corporation at the first quarter-end were ¥324,950 million.

30

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(b) Liabilities(Millions of yen)March 31, 2023

June 30, 2023

ChangeInterest-bearing debt
Lease liabilities
Deposits for banking business
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SVF
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

5,129,047
184,105
1,472,260
2,416,872
82,612
180,191
367,367
72,350675,920
10,580,724
14,349,147
652,892
4,499,369
899,351
58,545
163,627
1,828,557
254,941
22,706,429

6,413,717
170,567
1,533,675
2,166,056
89,113241,044
100,698
76,983572,624
11,364,477
14,674,390
649,792
4,822,520
343,389
46,819170,037
1,878,615
281,170
22,866,732

1,284,670(13,538)
61,415(250,816)
6,501
60,853(266,669) A
4,633(103,296)
783,753
325,243(3,100)323,151(555,962) B(11,726)
6,410
50,05826,229160,303

Total liabilities

33,287,153

34,231,209

944,056

Reasons for changes by primary component
Components
Main reasons for changes from the previous fiscal year-end*See “Reference” on the following page for a breakdown of interest-bearing debt.
Current liabilities
A Income taxes payable
SBG paid income taxes during the first quarter. This payment was based on
taxable income, including gains on the sale of Alibaba shares to subsidiaries
conducting fund procurement, which was carried out in relation to the early
physical settlement of prepaid forward contracts using Alibaba shares,
which was accrued in the previous fiscal year.
Non-current liabilities
B Derivative financial liabilities

Derivative financial liabilities related to prepaid forward contracts using
Alibaba shares decreased by ¥491,618 million mainly due to a fall in
Alibaba share price.

31

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Reference: Interest-bearing debt and lease liabilities (total of current and non-current)
March 31, 2023

June 30, 2023

(Millions of yen)
Change12,635,554
6,306,590
381,851
5,753,022
10,717161,000

14,026,571
6,578,775
429,046
5,950,350
10,379189,000

1,391,017
272,185
47,195 A
197,328 B(338)
28,0006,328,964
2,065,361

7,442,782
2,204,581

1,113,818
139,220

4,263,603-

5,238,201
5,014
5,014

974,598
5,014
5,014

552,681552,681770,004
770,004
14,873
14,873590,620590,620829,296829,296
15,916
15,91637,93937,93959,29259,292
1,043
1,043

4,149,812
3,080,878
578,684
490,249
1
1,064,457
485,470
578,987

4,369,381
3,180,568
578,748
480,564
129,501
1,015,995
516,928
499,067

219,569
99,69064(9,685)
129,500(48,462)
31,458(79,920)

396,075
111,386
412,961

342,139
112,462400,660(53,936)
1,076(12,301)130,014
77,374

138,456
66,970

8,442(10,404)

20,315,191

21,908,466

1,593,275

SBG and wholly owned subsidiaries
conducting fund procurement, etc.
SBG
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries conducting*1
fund procurement
Borrowings
Financial liabilities relating to sale of sharesby prepaid forward contracts
SB Northstar
Borrowings
SoftBank Vision Funds segment
SVF1
Borrowings
SVF2
Borrowings
SBIA, SBLA Advisers Corp.
Lease liabilities
SoftBank segment
SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Z Holdings Corporation
Borrowings
Corporate bonds
PayPay Corporation, PayPay Bank
*2
Corporation, PayPay Card Corporation
Yahoo Japan Corporation
Other
OthersOther interest-bearing debt
Lease liabilities
Total

Notes:
1. The interest-bearing debt of wholly owned subsidiaries engaged in fund procurement is non-recourse to SBG.
2. Deposits for banking business of PayPay Bank Corporation are not included in interest-bearing debt.

32

C
D

E
E

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Reasons for changes from the previous fiscal year-end at core companies
Components

Details

SBG and wholly owned subsidiaries conducting fund procurement, etc.
SBG
A Borrowings¥53.1 billion was borrowed through the hybrid loan in the first quarter.
B Corporate bonds· Domestic hybrid bonds with a face value of ¥222.0 billion were issued in the firstquarter.
· 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 first quarter.
· Foreign currency-denominated senior notes with face values of $0.04 billion and 0.04
billion euros, as well as domestic straight bonds with a face value of ¥2.1 billion anddomestic subordinated bonds with a face value of ¥20.9 billion, were repurchased in thefirst quarter.
· The carrying amount of foreign currency-denominated straight bonds increased due to an
8.6% depreciation of the yen against the U.S. dollar in the foreign currency exchange
rate used for translations at the first quarter-end.

Wholly owned subsidiaries conducting fund procurement
C Borrowings
The carrying amount of foreign currency-denominated debt increased due to an 8.6%
depreciation of the yen against the U.S. dollar in the foreign currency exchange rate used
for translations at the first quarter-end.
D Financial liabilities
relating to sale ofshares by prepaid
forward contracts· $4.39 billion was raised in the first quarter by concluding prepaid forward contracts(forward contracts) using Alibaba shares. For details, see “(2) Transactions for sale of
Alibaba shares by prepaid forward contracts” under “4. Interest-bearing debt” in “(6)Notes to Condensed Interim Consolidated Financial Statements” in “2. Condensed
Interim Consolidated Financial Statements and Primary Notes.”· The carrying amount increased due to an 8.6% depreciation of the yen against the U.S.
dollar in the foreign currency exchange rate used for translations at the first quarter-end.

SoftBank Vision Funds segment
SVF1 and SVF2
E Borrowings· Borrowings made through asset-backed finance decreased by $0.07 billion at SVF1 and$0.05 billion at SVF2.
· The balance of the borrowings increased due to an 8.6% depreciation of the yen against
the U.S. dollar in the foreign currency exchange rate used for translations at the firstquarter-end.

33

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(c) Equity(Millions of yen)March 31, 2023

June 30, 2023

ChangeCommon stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income

238,772
2,652,790
414,055
2,006,238(38,791)
3,756,785

238,772
2,655,326
414,055
1,495,376(33,255)
5,015,214

2,536(510,862) A
5,536
1,258,429 B

Total equity attributable to owners of
the parent
Non-controlling interests

9,029,849
1,619,366

9,785,488
1,664,270

755,639
44,904

Total equity

10,649,215

11,449,758

800,543

Reasons for changes by primary component
Components
A Retained earnings

Main reasons for changes from the previous fiscal year-end
Net loss attributable to owners of the parent of ¥477,616 million was recorded.

B Accumulated othercomprehensive income

Exchange differences from the translation of foreign operations, which arose fromtranslating foreign subsidiaries and associates into yen, increased by ¥1,256,968
million mainly due to the weaker yen against the U.S. dollar in the foreign
currency exchange rate used for translations.

34

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(3) Overview of Cash Flows
1. Cash flows from operating activities◆ Income taxes paid: ¥437.9 billion
2. Cash flows from investing activities◆ Payments for acquisition of investment of ¥212.5 billion mainly due to strategic investments by SBG
and its wholly owned subsidiaries◆ Monetization of assets continued at SVF while expanding investments- Payments for acquisition of investments by SVF: ¥123.9 billion- Proceeds from sales of investments by SVF: ¥134.9 billion◆ Proceeds from loss of control over subsidiaries of ¥93.2 billion was recorded mainly as a result of
selling 85% of the shares of SB Energy Corp., formerly a wholly owned subsidiary of the Company.
◆ Outlays of ¥191.2 billion for purchase of property, plant and equipment and intangible assets due tocapital expenditure mainly at SoftBank Corp.
◆ The above resulted in net cash outflow of ¥307.8 billion from investing activities.
3. Cash flows from financing activities◆ Net cash inflow from financing activities was ¥529.6 billion. The Company procured funds throughprepaid forward contracts using Alibaba shares and domestic hybrid bonds, and the hybrid loan.
Bond redemptions, dividend payouts, and distributions/repayments to third-party investors of SVF
were also carried out.
- Proceeds from interest-bearing debt: ¥1,601.2 billion· Main proceeds at SBG: ¥380.6 billion(from issuance of domestic hybrid bonds with a face value of ¥222.0 billion, short-term borrowings of¥105.5 billion, and the hybrid loan of ¥53.1 billion)· Proceeds at wholly owned subsidiaries conducting fund procurement: ¥605.6 billion($4.39 billion through prepaid forward contracts using Alibaba shares)- Payments for interest-bearing debt: ¥794.8 billion· Main outlays at SBG (redemption of bonds and repayment of short-term borrowings): ¥262.5 billion- Distributions and repayments to third-party investors at SVF of ¥118.1 billion- Payments of ¥172.0 billion for dividends at SBG and for dividends to non-controlling interests in
subsidiaries, such as SoftBank Corp.
4. Balance of cash and cash equivalents at the first quarter-end and its changes◆ The balance of cash and cash equivalents stood at ¥7,316.1 billion at the first quarter-end, an increaseof ¥391.0 billion from the previous fiscal year-end, as a result of cash flows from operating, investing,and financing activities, as well as the effect of exchange rate changes on cash and cash equivalents of¥341.8 billion reflecting the weaker yen.
(Millions of yen)

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate changes on cash andcash equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginningof the period
Cash and cash equivalents at the end of the period

35

Three months ended June 30
2022
2023

Change140,805
286,098
175,926(172,574)(307,791)
529,565(313,379)(593,889)
353,639

298,834
901,663341,794
390,994

42,960(510,669)

5,169,001
6,070,664

6,925,153
7,316,147

1,756,152
1,245,483

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(a) Cash Flows from Operating Activities
Cash flows from operating activities resulted in a net outflow of ¥172,574 million from a net inflow of ¥140,805
million in the same period of the previous fiscal year. This was mainly due to an increase in income taxes paid from¥201,600 million to ¥437,878 million, as well as a decrease in cash inflows primarily from sale of investments at
SB Northstar, from ¥71,784 million to ¥5,748 million, accompanying the downsizing of its business.
The increase in the amount of income taxes paid was mainly due to the payment in the first quarter of ¥229,215
million income taxes on taxable income for the previous fiscal year arising at SBG, primarily in association withthe physical settlement of the prepaid forward contracts using Alibaba shares.
(b) Cash Flows from Investing Activities
Primary components
Components
Payments for acquisition of
investments¥(212,528) million

Primary details
SBG and its wholly owned subsidiaries made mainly strategic investmentsfor ¥119,973 million.

Payments for acquisition of
investments by SVF¥(123,916) million· SVF2 invested ¥121,662 million ($0.88 billion) in total.
· LatAm Funds invested ¥2,253 million ($0.02 billion) in total.

Proceeds from sales of investments SVF sold investments for a total of ¥134,853 million ($0.98 billion),by SVF
including full exits of four portfolio companies and partial exits of several
1¥134,853 million
public portfolio companies .
Proceeds from loss of control oversubsidiaries¥93,206 million

Mainly from the sale of 85% of the shares of SB Energy Corp., formerly awholly owned subsidiary of the Company.

Purchase of property, plant andequipment, and intangible assets¥(191,183) million

SoftBank Corp. purchased property, plant and equipment, such as
telecommunications equipment, and intangible assets, such as software.

36

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(c) Cash Flows from Financing Activities
Primary components
Components
Proceeds in short-term interestbearing debt, net*1¥48,128 million(Proceeds and payments for interest-

Primary details· Short-term borrowings and commercial paper increased by ¥103,150
million (net) at SoftBank Corp.
· Short-term borrowings and commercial paper decreased by ¥52,299
million (net) at Z Holdings Corporation and its subsidiaries.

bearing debt (current liabilities) with
fast turnover and short maturities)

Proceeds from interest-bearing debt (total of A through C below)¥1,601,228 million
A Proceeds from borrowings · SBG made short-term borrowings of ¥105,506 million and procured*2¥53,100 million through the hybrid loan.
¥773,601 million· SoftBank Corp. procured ¥208,911 million mainly through thesecuritization of installment sales receivable and sale-and-leaseback
transactions. The company also issued commercial paper for ¥91,500
million.
· A subsidiary of LINE Corporation made short-term borrowings of¥162,200 million associated with an increase in demand for personal
unsecured loan services.
B Proceeds from issuance of SBG issued domestic hybrid bonds totaling ¥222,000 million.
corporate bonds¥222,000 million
C Proceeds fromprocurement by prepaid
forward contracts using
shares¥605,627 million

Wholly owned subsidiaries conducting fund procurement raised a total of$4.39 billion through prepaid forward contracts (forward contracts) using
Alibaba shares.

Repayment of interest-bearing debt (total of A and B below)¥(794,809) million
A Repayment of borrowings*2¥(561,804) million· SBG repaid short-term borrowings of ¥109,450 million.
· SVF1 and SVF2 repaid ¥9,443 million ($0.07 billion) and ¥7,044 million($0.05 billion), respectively, in borrowings made through asset-backed
finance.
· SoftBank Corp. repaid ¥175,218 million in borrowings made mainly
through the securitization of installment sales receivable and sale-andleaseback transactions.
· A subsidiary of LINE Corporation repaid short-term borrowings of¥155,000 million made in association with an increase in demand for
personal unsecured loan services.

37

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Components
B Redemption of corporatebonds¥(233,005) million

Primary details· SBG repurchased foreign currency-denominated senior notes with facevalues totaling $0.04 billion and 0.04 billion euros, domestic straightbonds with face value of ¥2,100 million, and domestic subordinated bonds
with face value of ¥20,900 million and redeemed foreign currencydenominated senior notes with face values of $0.16 billion and 0.63 billion
euros and domestic straight bonds with a face value of ¥19,500 million
upon maturity.
· Z Holdings Corporation redeemed domestic straight bonds of ¥80,000
million upon maturity.

Distribution/repayment from
SVF to third-party investors¥(118,091) million

SVF1 made distributions to third-party investors.

Cash dividends paid¥(31,423) million

SBG paid dividends.

Cash dividends paid to
non-controlling interests¥(140,535) million

SoftBank Corp., Z Holdings Corporation, and other subsidiaries paid
dividends to non-controlling interests.

Notes:
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 ¥462,961 million and outlays of ¥350,884 million
related to borrowings with a contracted term of one year or less.

(4) Forecasts
The Company does not provide forecasts of consolidated results of operations as they are difficult to project due tonumerous uncertainties affecting earnings.

38

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Notes to “1. Results of Operations”
1
2
3

4
5
6
7

Includes disposals as a result of restructuring of portfolio companies.
Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement.
Up until Alibaba was excluded from associates of the Company in the second quarter of the previous fiscal year, the Company
had applied the equity method to Alibaba’s consolidated financial statements for the reporting periods staggered by theprevious three months because it was impracticable to align the reporting periods with Alibaba due to various factors, such as
contracts with the company. Necessary adjustments were made to reflect significant transactions and events announced by
Alibaba during the staggered three-month period.
Private companies valued at over $1 billion at the time of investment
After deducting transaction fees, etc.
Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after
the capital was drawn.
This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees forthree months ended March 31, 2023, as reported by licensees in the royalty reports. Arm’s licensees report their actual
shipments of royalty units one quarter in arrears, and therefore, the royalty unit analysis in this report is based on chips
shipped for three months ended March 31, 2023. In contrast, royalty revenues are accrued in the same quarter the chips areshipped based on estimates. Royalty unit data for 2022 has been restated based on updated information received from its
licensees in the first quarter.

39

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

2. Condensed Interim Consolidated Financial Statements and Primary Notes(Definitions of company names and abbreviations used in the condensed interim consolidated financial statements
and primary notes)
Company names and abbreviations used in the condensed interim consolidated financial statements and primarynotes, unless otherwise stated or interpreted differently in the context, are as follows:
Company names / Abbreviations

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

SoftBank Group Corp. and its subsidiaries* Each of the following names or abbreviations indicates the respective company and its subsidiaries, if any.
SB Northstar or the asset management
subsidiary

SB Northstar LP

SVF1

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

SVF2

SoftBank Vision Fund II-2 L.P.

SVF2 LLC

SVF II Investment Holdings LLC

LatAm Funds

SBLA Latin America Fund LLC

SLA LLCSLA Holdco II LLC

SVF

SVF1, SVF2, and LatAm Funds

SBIA

SB Investment Advisers (UK) Limited

SBGA

SB Global Advisers Limited

Arm

Arm Limited

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

MgmtCoMASA USA LLC

40

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(1) Condensed Interim Consolidated Statement of Financial Position(Millions of yen)

As ofMarch 31, 2023

As ofJune 30, 2023

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Derivative financial assets
Other financial assets
Inventories
Other current assets
Total current assets

6,925,153
2,594,736
249,414371,313
163,781
282,085
10,586,482

7,316,147
2,450,124
279,144424,637
162,184
345,170
10,977,406

Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity method
Investments from SVF (FVTPL)
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

1,781,142
858,577
5,199,480
2,409,641
332,856
730,440
10,489,722
7,706,501
1,170,845
2,303,620
210,823
156,239
33,349,886
43,936,368

1,785,699
835,201
5,467,430
2,435,397
333,076
826,508
11,477,480
7,491,060
1,368,033
2,312,737
204,696
166,244
34,703,561
45,680,967

41

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(Millions of yen)

As ofMarch 31, 2023

As ofJune 30, 2023

Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities

5,129,047
184,105
1,472,260
2,416,872
82,612
180,191
367,367
72,350675,920
10,580,724

6,413,717
170,567
1,533,675
2,166,056
89,113241,044
100,698
76,983572,624
11,364,477

Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SVF
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities

14,349,147
652,892
4,499,369
899,351
58,545
163,627
1,828,557
254,941
22,706,429
33,287,153

14,674,390
649,792
4,822,520
343,389
46,819170,037
1,878,615
281,170
22,866,732
34,231,209

EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Total equity attributable to owners of the parent

238,772
2,652,790
414,055
2,006,238(38,791)
3,756,785
9,029,849

238,772
2,655,326
414,055
1,495,376(33,255)
5,015,214
9,785,488

Non-controlling interests
Total equity
Total liabilities and equity

1,619,366
10,649,215
43,936,368

1,664,270
11,449,758
45,680,967

42

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated
Statement of Comprehensive Income
Condensed Interim Consolidated Statement of Profit or Loss
(Millions of yen)Three-month period ended
June 30, 2022

Three-month period ended
June 30, 2023

1,572,030(688,239)
883,791

1,557,507(725,432)
832,075

111,223(689,697)(2,919,130)(26,533)(2,834,440)(13,043)
3,783(698,957)(626,513)(114,139)(819,969)(158,370)(648,080)(139,601)(464,642)(18,319)

Net sales
Cost of sales
Gross profit
Gain on investments
Gain (loss) on investments at Investment Businessof Holding Companies
Loss on investments at SoftBank Vision Funds
Gain (loss) on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Loss on equity method investments
Derivative gain (loss) (excluding gain (loss) on
investments)
Change in third-party interests in SVF
Other gain
Income before income tax
Income taxes
Net income(259,250)

849,629

631,367
5,068(3,292,455)
196,134(3,096,321)(58,081)
169,782(176,194)(140,000)(316,194)

Net income attributable to
Owners of the parent
Non-controlling interests
Net income(3,162,700)
66,379(3,096,321)(477,616)
161,422(316,194)

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)(1,949.55)(1,950.29)(332.75)(333.97)43

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
June 30, 2022

Three-month period ended
June 30, 2023

(3,096,321)(316,194)

9,493

8,306

9,493

8,306

(504)
(34,049)

268(5,807)

2,092,984

1,252,844(14,754)(3,555)2,043,677

1,243,750

2,053,170(1,043,151)

1,252,056
935,862(1,094,795)
51,644(1,043,151)

779,754
156,108
935,862

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Equity financial assets at FVTOCI
Total items that will not be reclassified to profit orloss
Items that may be reclassified subsequently to
profit or loss
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income ofassociates
Total items that may be reclassified subsequently to
profit or loss
Total other comprehensive income, net of tax
Total comprehensive income
Total comprehensive income attributable to
Owners of the parent
Non-controlling interests
Total comprehensive income

44SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the three-month period ended June 30, 2022
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2022

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
incomeTotal

238,772

2,634,574

496,876

4,515,704(406,410)

2,496,158

9,975,674

Comprehensive income
Net income
Other comprehensive income

-

-

-

(3,162,700)--

2,067,905(3,162,700)
2,067,905

Total comprehensive income

-

-

-

(3,162,700)-

2,067,905(1,094,795)

-

-

-

(36,229)--(36,229)

-

-

-

1,774

-

(1,774)

-

-

-

-

(283)

(292,252)-(292,535)

-

-

-

-

-

-

-

-

776

-

-

-

-

776

-

9,457

-

-

-

-

9,457

-

31

-

-

-

-

31

-

34

-

-

-

-

34

-

-

-

-

-

-

-

-

10,298-(34,738)(292,252)(1,774)(318,466)

238,7722,644,872

496,876

1,318,266(698,662)

4,562,289

8,562,413

Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2022

45

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023
(Millions of yen)

As of April 1, 2022

Noncontrollinginterests

Total equity

1,732,088

11,707,762

66,379(3,096,321)

Comprehensive income
Net income
Other comprehensive income(14,735)

2,053,170

Total comprehensive income

51,644(1,043,151)(141,959)(178,188)---(292,535)

992

992

8,378

9,154

-

9,457

-

31

6,542
(45,500)

6,576(45,500)(171,547)(490,013)

1,612,185

10,174,598

Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in associates’ interests intheir subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2022

46

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

For the three-month period ended June 30, 2023
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2023

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
incomeTotal

238,772

2,652,790

414,055

2,006,238(38,791)

3,756,785

9,029,849

Comprehensive income
Net income
Other comprehensive income

-

-

-

(477,616)--

1,257,370(477,616)
1,257,370

Total comprehensive income

-

-

-

(477,616)-

1,257,370

779,754---(32,187)--(32,187)---(1,059)

-

1,059

-

-

322

-

-

5,536

-

5,858

-

-

-

-

-

-

-

-

3,192

-

-

-

-

3,192

-

(91)

-

-

-

-

(91)

-

(887)

-

-

-

-

(887)

-

-

-

-

-

-

-

-

2,536

-

(33,246)

5,536

1,059

(24,115)

238,772

2,655,326

414,055

1,495,376(33,255)

5,015,214

9,785,488

Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2023

47

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023
(Millions of yen)

As of April 1, 2023

Noncontrollinginterests

Total equity

1,619,366

10,649,215

Comprehensive income
Net income
Other comprehensive income

161,422(316,194)(5,314)

1,252,056

Total comprehensive income

156,108

935,862(143,357)(175,544)

-

-

-

5,858

(6,297)(6,297)

13,90517,097-(91)

23,144
1,401

22,2571,401(111,204)(135,319)

1,664,270

11,449,758

Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control
Changes in interests in
subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2023

48

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(4) Condensed Interim Consolidated Statement of Cash Flows(Millions of yen)

Cash flows from operating activities
Net income
Depreciation and amortization(Gain) loss on investments at Investment Business of
Holding Companies
Loss on investments at SoftBank Vision Funds
Finance cost
Foreign exchange loss
Loss on equity method investments
Derivative loss (gain) (excluding (gain) loss on
investments)
Change in third-party interests in SVF
Loss (gain) on other investments and other gain
Income taxes
Decrease in investments from asset management
subsidiaries
Increase/decrease in derivative financial assets andderivative financial liabilities in asset management
subsidiaries
Decrease (increase) in restricted cash in asset
management subsidiaries(Decrease) increase in borrowed securities in asset
management subsidiaries
Decrease in trade and other receivables
Decrease in inventories
Decrease in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by (used in) operating activities

49

Three-month period
ended June 30, 2022

Three-month period
ended June 30, 2023

(3,096,321)
220,852(316,194)209,860(157,196)

691,665

2,919,130
114,139
819,969
158,370

13,043
139,601
464,642
18,319259,250(849,629)(631,367)
21,465(196,134)

58,081(173,565)
140,000

66,612

1,756

49,196

4,962

134,637(5,524)(131,796)

11,8788,610
3,321(167,749)
18,042413,030
19,304(93,582)(201,600)
3,653
140,805

123,162
2,631(185,794)(37,426)
311,468
46,008(108,342)(437,878)
16,170(172,574)

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(Millions of yen)

Cash flows from investing activities
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SVF
Proceeds from sales of investments by SVF
Proceeds from loss of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Purchase of property, plant and equipment, andintangible assets
Payments for loan receivables
Collection of loan receivables
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SVF from third-party investors
Distribution/repayment from SVF to third-party
investors
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

50

Three-month period
ended June 30, 2022

Three-month period
ended June 30, 2023

(64,795)
364,526(306,365)
344,210-(212,528)
35,920(123,916)
134,853
93,206(20,701)(26,223)

26,50021,564(170,156)(191,183)(9,637)65,28657,230286,098(47,926)
49,486(41,044)(307,791)

15,6302,728,946(1,732,623)(74,029)
7,712

48,1281,601,228(794,809)(60,984)-(255,264)(118,091)(293,486)(35,288)(139,309)(46,363)
175,926(2)(31,423)(140,535)
26,053
529,565

298,834

341,794

901,663
5,169,001
6,070,664

390,994
6,925,153
7,316,147

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.

(6) Notes to Condensed Interim Consolidated Financial Statements
1. Material accounting policies
Material accounting policies applied to the condensed interim consolidated financial statements are consistent
with the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31,
2023. In addition, income taxes for the three-month period ended June 30, 2023 are calculated based on theestimated effective tax rate for the fiscal year.
Material accounting policies for the SoftBank Vision Funds segment are consistent with the accounting policies
applied to the consolidated financial statements for the fiscal year ended March 31, 2023. The details aredescribed as follows.
(Material accounting policies for the SoftBank Vision Funds segment)
For SVF1, SVF2, and LatAm Funds, the Company applies the following accounting policies.
a. Consolidation of SVF1, SVF2, and LatAm Funds by the Company
SVF1 and SVF2 are limited partnerships established by their respective general partners which are whollyowned subsidiaries of the Company (SVF2 owns limited liability companies including SVF2 LLC) and are
qualified as structured entities by their forms of organization. SVF1 and SVF2 are consolidated by theCompany for the following reasons.
As of June 30, 2023, SVF1 and SVF2 are managed by SBIA and SBGA, respectively, which are whollyowned subsidiaries of the Company in the UK. SVF1 and SVF2 make investment decisions through each
investment committee, which was established in SBIA and SBGA, respectively. As such, the Company has
power as defined under IFRS 10 “Consolidated Financial Statements” over SVF1 and SVF2. Furthermore,
SBIA receives performance fees and SBGA receives performance-linked management fees. The Company
receives distributions attributable to limited partners based on the investment performance as returns from
SVF1 and SVF2. The Company has the ability to affect those returns through its power over SVF1 and SVF2,
and therefore, the Company is deemed to have control as stipulated in IFRS 10 “Consolidated Financial
Statements” over SVF1 and SVF2.
LatAm Funds is a limited liability company in which a wholly-owned subsidiary of the Company invests(LatAm Funds owns limited partnerships and the other forms of entities). LatAm Funds is consolidated by theCompany as it holds more than one-half of the voting rights of LatAm Funds.
Inter-company transactions, such as management fees and performance fees to SBIA paid or to be paid, asapplicable, from SVF1, and management fees, performance-linked management fees, and performance fees to
SBGA paid or to be paid, as applicable, from SVF2 or LatAm Funds, are eliminated in consolidation.

51

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

b. Portfolio company investments made by SVF1, SVF2, and LatAm Funds(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1, SVF2, and LatAm Funds, the portfolio companies that
the Company is deemed to control under IFRS 10 “Consolidated Financial Statements” are subsidiaries of theCompany. Accordingly, their results of operations, assets, and liabilities are included in the Company’s
condensed interim consolidated financial statements.
Gain and loss on investments in the subsidiaries of the Company which are recognized in SVF1, SVF2, and
LatAm Funds are eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1, SVF2, and LatAm Funds, the portfolio companies overwhich the Company has significant influence under IAS 28 “Investments in Associates and Joint Ventures”
are associates of the Company, and the portfolio companies that are joint ventures of the Company when, as
defined under IFRS 11 “Joint Arrangements,” SVF1, SVF2, and LatAm Funds have joint control with otherinvestors under contractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1, SVF2, and LatAm Funds
are accounted for as financial assets at FVTPL in accordance with Paragraph 18 of IAS 28 “Investments in
Associates and Joint Ventures” and presented as “Investments from SVF (FVTPL)” in the condensed interim
consolidated statement of financial position. The payments for these investments are presented as “Payments
for acquisition of investments by SVF” and the proceeds from sales of these investments are presented as“Proceeds from sales of investments by SVF” under cash flows from investing activities in the condensed
interim consolidated statement of cash flows.
If the investments in associates and joint ventures that were transferred from SoftBank Group Corp. and its
subsidiaries to SVF1, SVF2, or LatAm Funds were accounted for using the equity method prior to thetransfer, these investments continue to be accounted for using the equity method after the transfer to SVF1,
SVF2 or LatAm Funds and presented as “Investments accounted for using the equity method” in thecondensed interim consolidated statement of financial position.
Gain and loss on the investments which were recognized in SVF1, SVF2, or LatAm Funds are eliminated inconsolidation and gain and loss on the investments accounted for using the equity method are presented as“Income (loss) on equity method investments” in the condensed interim consolidated statement of profit orloss.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by SVF1, SVF2, and
LatAm Funds are accounted for as financial assets at FVTPL. The presentation of these investments in thecondensed interim consolidated statement of financial position and the condensed interim consolidated
statement of cash flows is the same as the above “(b) Investments in associates and joint ventures.”52

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

c. Contribution from limited partners in SVF1 and SVF2, and investors in LatAm Funds, SVF2 LLC, and SLA
LLC (collectively “SVF Investors”)(a) Contribution from SVF Investors other than the Company (“Third-Party Investors,” and each a “Third-Party
Investor”)
The interests attributable to Third-Party Investors in SVF1, SVF2, and LatAm Funds are classified as
financial liabilities, “Third-party interests in SVF” in the condensed interim consolidated statement offinancial position, due to the predetermined finite life and contractual payment provision to each of ThirdParty Investors at the end of the finite life within the constitutional agreements relating to SVF1, SVF2, and
LatAm Funds. The liabilities are classified as “financial liabilities measured at amortized cost” upon initialrecognition. The carrying amounts attributable to Third-Party Investors represent the amounts that would be
distributed in accordance with the constitutional agreements in a theoretical liquidation scenario at the end ofeach quarter.
Third-Party Investor in SVF2 and LatAm Funds is entitled to make full or partial payments of its investments
and related adjustments at any point in time, at its discretion, from the date it became an investor in SVF2
LLC or SLA LLC to the end of company life of SVF2 LLC or SLA LLC, and as of June 30, 2023, theCompany has recognized receivables from Third-Party Investor. The receivables are included in “Other
financial assets (non-current)” in the condensed interim consolidated statement of financial position.
“Third-party interests in SVF” fluctuates due to the results of SVF1, SVF2, and LatAm Funds in addition tocontributions from Third-Party Investors and distributions and repayments of investments to Third-Party
Investors. The fluctuations due to the results of SVF1, SVF2, and LatAm Funds are presented as “Change inthird-party interests in SVF” in the condensed interim consolidated statement of profit or loss.
Contributions from Third-Party Investors are included in “Contributions into SVF from third-party investors”
under cash flows from financing activities in the condensed interim consolidated statement of cash flows. The
distributions and repayments of investments to Third-Party Investors are included in “Distribution/repayment
from SVF to third-party investors” under cash flows from financing activities in the condensed interim
consolidated statement of cash flows. No cash contributions into SVF2 and LatAm Funds from Third-Party
Investors and no cash distributions/repayments from SVF2 and LatAm Funds to Third-Party Investors weremade as of June 30, 2023.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9 “Financial Instruments,” and,
therefore, such amount is not recorded in the condensed interim consolidated statement of financial position.
(b) Contribution from the Company
Contributions to SVF1, SVF2, and LatAm Funds from the Company are eliminated in consolidation.

53

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

2. Segment information(1) Description of reportable segments
The Company’s reportable segments are components of business activities for which discrete financial
information is available, and such information is regularly reviewed by the Company’s Board of Directors inorder to make decisions about the allocation of resources and assess its performance.
The Company has four reportable segments, the Investment Business of Holding Companies segment, theSoftBank Vision Funds segment, the SoftBank segment, and the Arm segment. In addition, PayPay
Corporation, which was previously included in “Other,” is classified in the SoftBank segment from the threemonth period ended December 31, 2022, since PayPay Corporation became a subsidiary of SoftBank Corp.
and Z Holdings Corporation. Segment information for the three-month period ended June 30, 2022 ispresented based on the reportable segments after the aforementioned change.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. asa strategic investment holding company, investment activities in a wide range of sectors in Japan and overseas
directly or through subsidiaries of the Company. The Investment Business of Holding Companies segment
consists of SoftBank Group Corp., SoftBank Group Capital Limited, SoftBank Group Japan Corporation, SB
Northstar that is an asset management subsidiary, and certain subsidiaries of the Company that conduct
investment or funding. Gain and loss on investments at Investment Business of Holding Companies consist ofgain and loss arising from investments held directly by SoftBank Group Corp. or through subsidiaries of theCompany. However, gain and loss on investments relating to investments in subsidiaries, including dividend
income from subsidiaries and impairment loss on investments in subsidiaries, are excluded.
The SoftBank Vision Funds segment conducts, mainly through SVF1, SVF2, and LatAm Funds investment
activities in a wide range of technology sectors. Primarily, gain and loss on investments at SVF1, SVF2,
LatAm Funds, and others consist of gain and loss arising from investments held by SVF1, SVF2, and LatAm
Funds including the investment in the Company’s subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile services, sale of mobile devices,
broadband services, and solution services in Japan, through Yahoo Japan Corporation and LINE Corporation,internet advertising and e-commerce services, and through PayPay Corporation, payment and financial
services.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related
technology, sale of software tools, and related services.
Information on business segments, which is not included in the reportable segments, is classified as “Other.”“Other” includes mainly Fortress and the Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain andloss on the investment in shares in Arm and PayPay Corporation, subsidiaries of the Company, and WeWork,an equity method associate, and others, which are included in segment income of the SoftBank Vision Funds
segment.

54

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Income before income tax.” As in the condensed interim
consolidated statement of profit or loss, “Gain (loss) on investments” included in segment income includes
realized gain and loss from investments in financial assets at FVTPL for which investment performance ismeasured at fair value, unrealized gain and loss on valuation of investments, dividend income frominvestments, derivative gain and loss relating to investments in financial assets at FVTPL, and realized gain
and loss from investments accounted for using the equity method. The Investment Business of Holding
Companies segment calculates its segment income by eliminating gain and loss on investments relating toinvestments in subsidiaries, including dividend income from subsidiaries and impairment loss on investments
in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied forexternal customers.

55

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

For the three-month period ended June 30, 2022
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,379,955
847

92,751
-

Total

-

-

1,380,802

92,751(1,198,053)(2,330,750)

222,214

29,846(1,075)(168)(184,156)(21,341)

111,233(2,933,845)

1,133

39

(80,029)(15,401)(15,341)(272)(822,035)

76

196

1,658

(139,782)-(10,351)(85)(244,986)

499

901

(1,302)

Segment income
Depreciation andamortization
Gain (loss) on
investments
Finance cost
Foreign exchange gain
(loss)
Loss on equity method
investments
Derivative gain (loss)(excluding gain (loss) on
investments)

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,472,706
847

99,3242,301(3,148)

1,572,030-

Total

1,473,553

101,625(3,148)

1,572,030

Segment income
Depreciation and(3,276,743)(19,275)

3,563(3,292,455)(206,740)(14,112)-(220,852)(2,821,440)(27,705)

14,705(2,834,440)(111,043)(4,166)

1,070(114,139)(820,105)

136-(819,969)(150,218)(3,707)(4,445)(158,370)(244,888)(14,362)-(259,250)

amortization
Gain (loss) on
investments
Finance cost
Foreign exchange gain
(loss)
Loss on equity method
investments
Derivative gain (loss)(excluding gain (loss) on
investments)

56

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

For the three-month period ended June 30, 2023
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision*
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,429,118
949

88,502
-

Total

-

-

1,430,067

88,502(394,540)

61,041

254,987(9,508)

(790)

(492)

(181,576)(22,213)(689,697)

159,7732,217

86(97,256)(23,628)(16,140)(314)(466,107)

(75)

(241)

1,153

(1,581)-(7,599)(23)

848,775

-

824

30

Segment income
Depreciation andamortization
Gain (loss) on
investments
Finance cost
Foreign exchange gain
(loss)
Loss on equity method
investments
Derivative gain
(excluding gain (loss) on
investments)

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,517,620
949

39,887
4,015(4,964)

1,557,507-

Total

1,518,569

43,902(4,964)

1,557,507(88,020)88,962(177,136)(176,194)(205,071)(4,789)-(209,860)(527,621)

1,480(172,816)(698,957)(137,338)(3,613)1,350(139,601)(465,270)

628-(464,642)(9,203)(8,888)(228)(18,319)

849,629--

849,629

Segment income
Depreciation andamortization
Gain (loss) on
investments
Finance cost
Foreign exchange gain
(loss)
Loss on equity method
investments
Derivative gain
(excluding gain (loss) on
investments)

Note:* The details of the difference between “Gain (loss) on investments” in the SoftBank Vision Funds segment and “Gain (loss) on
investments at SoftBank Vision Funds” in the condensed interim consolidated statement of profit or loss are described in “(1) Income
and loss arising from the SoftBank Vision Funds business” under “Note 3. SoftBank Vision Funds business.”

57

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

3. SoftBank Vision Funds business(1) Income and loss arising from the SoftBank Vision Funds businessa. Overview
Segment income arising from the SoftBank Vision Funds business (income before income tax) represents thenet profits of the SoftBank Vision Funds business, after deducting the net profits attributable to Third-Party
Investors. The net profits attributable to Third-Party Investors are the amount after deducting management
fees, performance-linked management fees, and performance fees, as applicable, that SBIA receives from
SVF1, and that SBGA receives from SVF2 and LatAm Funds.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income
is presented as “Change in third-party interests in SVF.”
b. Segment income arising from the SoftBank Vision Funds business
The components of segment income arising from the SoftBank Vision Funds business are as follows:(Millions of yen)Three-month period
Three-month period
ended June 30, 2022
ended June 30, 2023
Gain (loss) on investments at SoftBank Vision Funds
Gain (loss) on investments at SVF1, SVF2, and
LatAm Funds*1

Realized loss on investments
Unrealized gain (loss) on valuation of
investments*2

Change in valuation for the fiscal year
Reclassified to realized gain (loss) recorded in*3

the past fiscal years
Interest and dividend income from investments
Derivative gain on investments*4

Effect of foreign exchange translation
Subtotal

Gain on other investments
Total gain (loss) on investments at SoftBank
Vision Funds
Selling, general and administrative expenses
Finance cost (interest expenses)
Derivative gain (excluding gain (loss) on investments)
Change in third-party interests in SVF
Other gain
Segment income arising from the SoftBank Vision
Funds business (income before income tax)

58

(26,722)(68,179)(2,881,472)

120,887(34,423)

91,350415
37,650

1,491
2,453

(30,478)(13,299)(2,935,030)
1,185

134,703
25,070(2,933,845)

159,773(18,904)(15,401)
499
631,367
5,534(18,299)(23,628)(58,081)
1,276(2,330,750)

61,041

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Notes:
1. The amount of realized gain and loss on investments is the exit price net of the investment cost. In addition to the realized
gain and loss on sales by cash consideration, the realized gain and loss by disposals as a result of share exchange andrestructuring of portfolio companies are included.
2. For the three-month period ended June 30, 2023, ¥175,532 million of the unrealized gain (net) on valuation arising fromshares of the Company’s subsidiaries held by SVF1 and SVF2 (mainly Arm and PayPay Corporation) is included in “Gain(loss) on investments at SoftBank Vision Funds” (in Change in valuation for the fiscal year under Unrealized gain (loss) on
valuation of investments) in the above-mentioned segment income. However, the unrealized gain on valuation is eliminatedin consolidation.
For the three-month period ended September 30, 2021, a wholly-owned subsidiary of the Company other than SVF1 wastransferred through sales from the Company to SVF2. As a result of the transaction, WeWork shares held by SVF2 include
common shares and the common shares are continuously accounted for using the equity method on a consolidation basis
after the transfer. For the three-month period ended June 30, 2023, ¥3,350 million of the unrealized loss on valuation arisingfrom WeWork common shares held by SVF2 is included in “Gain (loss) on investments at SoftBank Vision Funds” (inChange in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in the above-mentioned
segment income. However, the unrealized loss on valuation is eliminated in consolidation as WeWork is an equity method
associate of the Company.
The unrealized gain and loss on valuation, that are eliminated in consolidation, are not included in “Gain (loss) on
investments at SoftBank Vision Funds” in the condensed interim consolidated statement of profit or loss.
3. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SoftBank
Vision Funds” in the past fiscal years, which are reclassified to “Realized loss on investments” due to the realization for thethree-month period ended June 30, 2023.
4. Unrealized gain and loss on valuation of investments are translated using the average exchange rate for the quarter in which
the gain and loss were recognized, while realized gain and loss on investments are translated using the average exchange rate
for the quarter in which the shares were disposed. “Effect of foreign exchange translation” is arising from the different
foreign currency exchange rates used for unrealized gain and loss on valuation and realized gain and loss.

59

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(2) Third-party interests in SVF
a. Terms and conditions of contribution from/ distribution to SVF Investors
Contributions by SVF Investors are classified as “Equity” and “Preferred Equity” depending on the terms andconditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.
Performance-based distributions attributed to SVF Investors, consisting of the Company and Third-Party
Investors, are calculated using the net proceeds from the investment performance, as applicable, of SVF1,
SVF2, and LatAm Funds. The net proceeds from SVF1 and LatAm Funds are also allocated to theperformance fees attributed to SBIA and SBGA, respectively, using the method specified in the limited
partnership agreement. The amount of performance-based distribution attributed to SVF Investors is allocatedto each of the SVF Investors based on the proportion of their respective Equity contribution. The amount of
performance-based distributions is paid to each of the SVF Investors after each of SVF1, SVF2, and LatAm
Funds, as applicable, receive cash through dividend, or disposition or monetization of investments.
In SVF1, fixed distributions are defined as distributions of Preferred Equity holders which are calculated
equal to a 7% rate per annum based on their contributions. The fixed distributions are made every lastbusiness day of the months of June and December.
The details of the terms and conditions of the Equity contributed by Third-Party Investor in SVF2 and LatAm
Funds are described in “Note 13. Related party transactions regarding a co-investment program with restricted
rights to receive distributions.” There are no Third-Party Investors who contributed to Preferred Equity in
SVF2 and LatAm Funds.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-Party Investors contributing Preferred Equity are defined as“Investors entitled to fixed distribution.”

60

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

b. Changes in interests attributable to Third-Party Investors(a) Third-party interests in SVF1
Changes in interests attributable to Third-Party Investors in SVF1 (included in “Third-party interests in SVF”
in the condensed interim consolidated statement of financial position) are as follows:(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Third-party interests in
SVF1(Total of current liabilities
and non-current liabilities)

Consolidated
Consolidated
statement
statement of cashof profit or loss
flows
(Negative figures (Negative figures
represent
represent
expenses)
payments)(Breakdown)
As of April 1, 2023
Contributions from Third-Party
Investors
Changes in third-party interests
Attributable to investors entitled to
fixed distribution
Attributable to investors entitled toperformance-based distribution
Distribution/repayment to Third-Party
Investors
Exchange differences on translating*
third-party interests
As of June 30, 2023

4,470,717---

61,286(61,286)-(118,091)-(118,091)

380,862--

40,71820,5684,794,774

Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim
consolidated statement of comprehensive income.

61SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(b) Third-party interests in SVF2 and receivables
There is no balance of interests attributable to Third-Party Investor in SVF2 (included in “Third-party
interests in SVF” in the condensed interim consolidated statement of financial position) as of March 31, 2023
and June 30, 2023. There are no changes in interests attributable to Third-Party Investor in SVF2 for thethree-month period ended June 30, 2023. Third-Party Investor in SVF2 is the investor entitled toperformance-based distribution.
The Company has receivables from Third-Party Investor in SVF2. The changes in the receivables from ThirdParty Investor in SVF2 (included in “Other financial assets (non-current)” in the condensed interim
consolidated statement of financial position) are as follows: The details of the receivables from Third-Party
Investor in SVF2 are described in “(1) Transactions between SVF2 and related parties” under “Note 13.
Related party transactions regarding a co-investment program with restricted rights to receive distributions.”

As of April 1, 2023
Increase in receivables from accrued premiums charged to ThirdParty Investor
Exchange differences on receivables
As of June 30, 2023

(Millions of yen)
Receivables from Third-Party
Investor in SVF2
384,870
2,841
33,172420,883(c) Third-party interests in LatAm Funds and receivables
Changes in interests attributable to Third-Party Investor in LatAm Funds (included in “Third-party interests in
SVF” in the condensed interim consolidated statement of financial position) are as follows: Third-Party
Investor in LatAm Funds is the investor entitled to performance-based distribution.
(Millions of yen)(For reference purposes only)
Links with the condensed interim
consolidated financial statements
Third-party interests in
LatAm Funds(Total of current liabilities
and non-current liabilities)

As of April 1, 2023
Changes in third-party interests
Exchange differences on translating*
third-party interests
As of June 30, 2023

Consolidated
Consolidated
statement
statement of cashof profit or loss
flows
(Negative figures (Negative figures
represent
represent
expenses)
payments)

28,652(3,205)

3,205

-

2,299

-

-

27,746Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim
consolidated statement of comprehensive income.

62SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

The Company has receivables from Third-Party Investor in LatAm Funds. The changes in the receivablesfrom Third-Party Investor in LatAm Funds (included in “Other financial assets (non-current)” in thecondensed interim consolidated statement of financial position) are as follows: The details of the receivablesfrom Third-Party Investor in LatAm Funds are described in “(2) Transactions between LatAm Funds andrelated parties” under “Note 13. Related party transactions regarding a co-investment program with restricted
rights to receive distributions.”(Millions of yen)
Receivables from Third-Party
Investor in LatAm Funds
As of April 1, 2023
90,606
Increase in receivables from accrued premiums charged to Third671
Party Investor
Exchange differences on receivables
7,809
As of June 30, 2023
99,086c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of June 30, 2023 was $8.2 billion.
(3) Management fees and performance fees
Terms and conditions of management fees, performance-linked management fees, and performance fees,
included in segment income from the SoftBank Vision Funds business, are as follows.
a. Management fees and performance fees in SVF1
Management fees to SBIA from SVF1 are, in accordance with the limited partnership agreement, calculated
by multiplying 1% per annum by Equity contributions used to fund investments and paid to SBIA by SVF1
quarterly. A clawback provision is attached to the management fees received, which is triggered under certain
conditions based on future investment performance.
Same as the performance-based distributions, the amount of the performance fees to SBIA from SVF1 iscalculated using the allocation method as specified in the limited partnership agreement. SBIA is entitled toreceive the performance fees when SVF1 receives cash through disposition, dividend, and monetization of aninvestment. The performance fees received are subject to clawback provisions which are triggered undercertain conditions based on future investment performance.
From the inception of SVF1, the cumulative amount of performance fees paid to SBIA was $454 million. For
the three-month period ended June 30, 2023, the performance fee (net of tax) was distributed to the limited
partners in accordance with the clawback provisions.
b. Management fees and performance-linked management fees in SVF2
Management fees to SBGA from SVF2 are, in accordance with the constitutional agreements, calculated bymultiplying 0.7% per annum by the acquisition cost of investments and paid to SBGA by SVF2 quarterly.
The amount of the performance-linked management fees to SBGA from SVF2 is determined, based on the63SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

investment performance for certain periods specified in the constitutional agreement, according to the agreed
principle. SBGA is entitled to receive the performance-linked management fees after certain periods for theinvestment performance measurement specified in the constitutional agreement, provided that there areavailable cash proceeds through disposition, dividend, and monetization of an investment in SVF2.
From the inception of SVF2 to June 30, 2023, no performance-linked management fees were paid to SBGA.
c. Management fees, performance-linked management fees, and performance fees in LatAm Funds
Management fees to SBGA from LatAm Funds are, in accordance with the constitutional agreements,
calculated based on the acquisition cost of investments and paid to SBGA by LatAm Funds quarterly.
LatAm Funds introduced the performance-linked management fees in July 2022. The amount of theperformance-linked management fees to SBGA from LatAm Funds is determined, based on the investment
performance for certain periods specified in the constitutional agreement, according to the agreed principle.
SBGA is entitled to receive the performance-linked management fees after certain periods for the investment
performance measurement specified in the constitutional agreement, provided that there are available cash
proceeds through disposition, dividend, and monetization of investments in LatAm Funds.
Same as the performance-based distributions, the amount of the performance fees to SBGA from LatAm
Funds is calculated using the allocation method as specified in the constitutional agreements. SBGA isentitled to receive the performance fees when LatAm Funds receives cash through disposition, dividend, andmonetization of an investment.
From the inception of LatAm Funds to June 30, 2023, neither performance fees nor performance-linked
management fees were paid to SBGA.

64

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

4. Interest-bearing debt
(1) Components of interest-bearing debt
The components of interest-bearing debt are as follows:(Millions of yen)

As ofMarch 31, 2023

As ofJune 30, 2023

Current
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of financial liabilities relating to*sale of shares by prepaid forward contracts
Current portion of installment payables
Total

Non-current
Long-term borrowings
Corporate bonds
Financial liabilities relating to sale of shares by*

prepaid forward contracts
Installment payables
Total

900,502
283,001
2,955,480
653,237

920,483
419,501
3,116,019
888,653

336,730

1,068,904

97

157

5,129,047

6,413,717

4,164,682
6,257,455

4,365,402
6,139,513

3,926,873

4,169,296

137

179

14,349,147

14,674,390

Note:* These are primarily financial liabilities relating to sale of shares by prepaid forward contracts using Alibaba shares. The
details are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts.”(2) Transactions for sale of Alibaba shares by prepaid forward contracts
Wholly-owned subsidiaries of the Company entered into prepaid forward contracts with financial institutions
to procure funds using Alibaba shares, which are held by the subsidiaries.
In the prepaid forward contracts, the number of Alibaba shares settled by the prepaid forward contracts isfixed regardless of changes in market share price in the future in a forward contract or determined byreference to market price of the shares at the valuation dates prior to the settlement date. The latter type ofcontract includes floor contract that a floor is set for the price of shares settled and collar contract that a cap
and a floor are set for the price of shares settled. A part of wholly-owned subsidiaries of the Company
entering into prepaid forward contracts with financial institutions to procure funds using Alibaba shares(“Entities for fund procurement by using Alibaba shares”), in addition to the prepaid forward contracts, enters
into the call spread (combination of long position of call option and short position of call option with different
strike prices) contracts in preparation for Alibaba shares price rise.
The aforementioned prepaid forward contracts are classified as hybrid financial instruments with embedded
derivatives. The Company accounts for the contracts by bifurcating the main contracts and embedded

65

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

derivatives, and the main contracts are recognized as financial liabilities relating to sale of shares by prepaid
forward contracts then measured at amortized cost while the embedded derivatives are measured at fair value.
Also, the call spread contracts are measured at fair value as well. In addition, for the derivative financial
assets and the derivative financial liabilities recognized from the prepaid forward contracts and the call spread
contracts, a tax effect is recognized. The ending balance of the derivative financial assets and the derivative
financial liabilities recognized from the prepaid forward contracts and the call spread contracts are describedin “Note 5. Financial instruments.”
Entities for fund procurement by using Alibaba shares have the option to settle all of the prepaid forward
contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If Entities for fundprocurement by using Alibaba shares elect cash settlement, Entities for fund procurement by using Alibaba
shares will pay the cash equivalent to the fair value of the number of shares subject to the settlement, as
determined by reference to the market price of the shares.
Alibaba shares held by Entities for fund procurement by using Alibaba shares are pledged as collateral inaccordance with all of the prepaid forward contracts, and except for a certain contract, the Company granted
the right of use to the financial institutions with respect to such shares. However, the collateral can bereleased by cash settlement at the discretion of Entities for fund procurement by using Alibaba shares.
Entities for fund procurement by using Alibaba shares procured ¥605,627 million ($4.4 billion) in total byentering into forward contracts for the three-month period ended June 30, 2023.
As of June 30, 2023, the Company set ¥4,285,986 million of Alibaba shares, which is recognized as“Investment securities” in the condensed interim consolidated statement of financial position, as collateral for¥659,083 million of current portion of financial liabilities relating to sale of shares by prepaid forward
contracts and ¥4,105,575 million of financial liabilities relating to sale of shares by prepaid forward contracts.

66SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(3) Components of proceeds in and repayment of short-term interest-bearing debt, net
The components of “Proceeds in short-term interest-bearing debt, net” in the condensed interim consolidated
statement of cash flows are as follows:(Millions of yen)

Net increase in short-term borrowings
Net increase in commercial paper
Total

Three-month period
ended June 30, 2022

Three-month period
ended June 30, 2023

3,430
12,20034,62813,50015,63048,128(4) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)

Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement by prepaid forward*

contracts using shares
Total

Three-month period
ended June 30, 2022

Three-month period
ended June 30, 2023

1,375,246-

773,601
222,000

1,353,700

605,627

2,728,946

1,601,228

Note:* The amount was procured under the prepaid forward contracts using Alibaba shares. The details of prepaid forward contracts
using Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts.”(5) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)

Repayment of borrowings
Redemption of corporate bonds
Total

67

Three-month period
ended June 30, 2022

Three-month period
ended June 30, 2023

(1,676,420)(56,203)(561,804)(233,005)(1,732,623)(794,809)

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

5. Financial instruments
The details of derivative contracts are mainly as follows:(Millions of yen)
As ofMarch 31, 2023

As ofJune 30, 2023

Carrying amount(fair value)

Carrying amount(fair value)

Assets
Prepaid forward contracts using Alibaba shares*1(Option contracts)
Call spread contracts relating to prepaid forward*1

contracts using Alibaba shares
Prepaid forward contracts using Alibaba shares

Liabilities*2

T-Mobile shares
Short call option for T-Mobile shares to Deutsche
TelekomContingent value rights relating to sale of TMobile shares*3

Liabilities

397,127-

522,021

-

590

-

167

-

-

(805,039)

110,606(313,420)

833,770-

794,701--(55,056)-(52,024)

67,308

-

-

-

*1

(Forward contracts)
Contingent consideration relating to acquisition ofAssets

Notes:
1. The details of prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward contracts using
Alibaba shares are described in “(2) Transactions for sale of Alibaba shares by prepaid forward contracts” under “Note 4.
Interest-bearing debt.”
2. Acquired due to the merger transaction with Sprint Corporation (“Sprint”) and T-Mobile US, Inc. on April 1, 2020 and theCompany has the right to acquire 48,751,557 shares of T-Mobile for no additional consideration if certain conditions are met. In
addition, “T-Mobile” indicates T-Mobile US, Inc. after merging with Sprint.
3. Contingent value rights were received in relation to the disposal of T-Mobile shares in a private placement through a trust. In
addition, the rights were vested on June 1, 2023 and the Company received 3,566,400 shares of T-Mobile.

68

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

6. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as
follows:(1) Rate at the end of the period
(Yen)
As of
March 31, 2023
USD

As of
June 30, 2023

133.53144.99(2) Average rate for the quarter
For the three-month period ended June 30, 2022
(Yen)
Three-month period ended
June 30, 2022
USD
CNY

*

129.0419.60

For the three-month period ended June 30, 2023
(Yen)
Three-month period ended
June 30, 2023
USD

138.11Note:* For the three-month period ended September 30, 2022, Alibaba ceased to be an equity method associate of the Company. As aresult, exchange rates of Chinese yuan are not presented for the three-month period ended June 30, 2023, since it is no longer
considered as a major currency used for translating financial statements of foreign operations.

69

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

7. Equity(1) Other equity instruments
On July 19, 2017, the Company issued $2.75 billion of USD-denominated Undated Subordinated Non-Call 6
years Resettable Notes and $1.75 billion of USD-denominated Undated Subordinated Non-Call 10 years
Resettable Notes (collectively, the “Hybrid Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has theoption to defer interest payments, the notes have no maturity date, and the Company has an unconditional rightto avoid delivering cash or another financial asset except for distribution of residual assets on liquidation.
In addition, on October 12, 2022, the Company purchased a portion of the above USD-denominated Undated
Subordinated Non-Call 6 years Resettable Notes (the face value of $0.75 billion) and retired them on the samedate. Subsequently, on July 19, 2023, the first optional redemption date, the remaining amount (the face valueof $2.0 billion) was fully redeemed.
(2) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)Three-month period
ended June 30, 2022

Three-month period
ended June 30, 2023

Increase during the period
Decrease during the period

76,16456,298
(232)

6,948
0
(992)

Balance at the end of the period

132,230

5,956

Balance at the beginning of the period(3) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2023
Equity financial assets at FVTOCI
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign*

operations
Total

As of
June 30, 2023

43,201
142(71,598)

49,826
148(76,768)

3,785,040

5,042,008

3,756,785

5,015,214

Note:* The increase was primarily due to a weaker yen against the U.S. dollar compared with the exchange rate as of March 31,
2023.

70

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

8. Gain on investments(1) Gain and loss on investments at Investment Business of Holding Companies
The components of gain and loss on investments at Investment Business of Holding Companies are as follows:(Millions of yen)Three-month period
ended June 30, 2022
Gain relating to settlement of prepaid forward*1

contracts using Alibaba shares
Gain relating to sales of T-Mobile shares
Realized gain (loss) on investments at asset
management subsidiaries
Unrealized gain (loss) on valuation of investments at
asset management subsidiaries
Derivative gain (loss) on investments at asset
management subsidiaries*2

Realized gain (loss) on investments*2
Unrealized loss on valuation of investments*3
Derivative gain (loss) on investments
Other
Total

Three-month period
ended June 30, 2023

97,263-

24,842

-

7,176

(59)

(69,489)906(5,246)18(400)(27,605)
73,60911,073

17,686(620,356)(97,024)
9,132

111,223(689,697)

Notes:
1. During the course of the physical settlement under the board resolution in August 2022, the Company lost significant
influence over Alibaba because the voting power against Alibaba held by the Company decreased to below 20%, and for thethree-month period ended September 30, 2022, Alibaba ceased to be an equity method associate of the Company. At the sametime, Alibaba shares held by the Company as of the date the Company lost significant influence over Alibaba (“remaining
Alibaba shares”) were remeasured based on the stock price of that day and were included in “Investment securities” in thecondensed interim consolidated statement of financial position.
“Gain relating to settlement of prepaid forward contracts using Alibaba shares” is composed of gain on settlement of prepaid
forward contracts using Alibaba shares which a settlement is completed before Alibaba ceases to be an equity method
associate of the Company.
2. Effects of stock price changes for the remaining Alibaba shares after being remeasured are included in “Realized gain (loss)
on investments” or “Unrealized gain (loss) on valuation of investments” rather than “Gain relating to settlement of prepaid
forward contracts using Alibaba shares.” For the three-month period ended June 30, 2023, ¥553,354 million of unrealized loss
on valuation of investments was recognized related to the remaining Alibaba shares.
3. For the three-month period ended June 30, 2023, ¥105,377 million of derivative loss on investments was recorded due tochanges in the fair value of contingent consideration related to the acquisition of T-Mobile shares through the merger
transaction with Sprint and T-Mobile US, Inc. The details of contingent consideration are described in “Notes 2” under “Note
5. Financial instruments.”(2) Gain and loss on investments at SoftBank Vision Funds
The details of gain and loss on investments at SoftBank Vision Funds are described in “(1) Income and loss
arising from the SoftBank Vision Funds business” under “Note 3. SoftBank Vision Funds business.”

71SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

9. Finance cost
The components of finance cost are as follows:(Millions of yen)Three-month period
ended June 30, 2022

Three-month period
ended June 30, 2023

(114,139)(139,601)Interest expenses

10. Derivative gain (loss) (excluding gain (loss) on investments)
For the three-month period ended June 30, 2023, derivative gain of ¥769,852 million was recorded for the
prepaid forward contracts using Alibaba shares and the call spread contracts relating to prepaid forward contracts
using Alibaba shares. The details of the contracts are described in “(2) Transactions for sale of Alibaba shares by
prepaid forward contracts” under “Note 4. Interest-bearing debt.”

11. Other gain
The components of other gain and loss are as follows:(Millions of yen)Interest income
Gain relating to loss of control over subsidiaries
Dilution gain from changes in equity interest*1

Loss on derecognition of unsecured notes issued byThree-month period
ended June 30, 2022
8,618

Three-month period
ended June 30, 2023
57,146

10,406

108,832

4,656

19,739WeWorkOther-(21,579)(18,612)

5,644

Total

5,068

169,782*2

Notes:
1. For the three-month period ended June 30, 2023, primarily, as a result of the sale of 85 % of shares in SB Energy Corp., awholly-owned subsidiary of the Company, the gain arising from the loss of control over the entity was recorded.
Subsequently, SB Energy Corp. (currently, Terras Energy Corporation) has become an associate of the Company after thetransaction.
2. For the three-month period ended June 30, 2023, unsecured notes issued by WeWork were exchanged into shares andconvertible bonds newly issued by WeWork. The unsecured notes were derecognized and ¥21,579 million of loss wasrecorded.

72SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

12. Supplemental information to the condensed interim consolidated statement of cash flows
Income taxes paid and income taxes refunded
For the three-month period ended June 30, 2023, payment of withholding income tax related to dividends within
the group companies of ¥83,953 million is included in “Income taxes paid.” In addition, refunded withholding
income tax related to dividends within the group companies of ¥15,563 million is included in “Income taxes
refunded.”

13. Related party transactions regarding a co-investment program with restricted rights to receive
distributions
MgmtCo, which is the investor in SVF2 LLC (a subsidiary of the Company under SVF2) and the investor in SLA
LLC (a subsidiary of the Company under the LatAm Funds), is a company controlled by Masayoshi Son,
Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group Corp., and a related party of
the Company. The co-investment program with restricted rights to receive distributions to SVF2 and LatAm
Funds has been introduced from the three-month period ended September 30, 2021 for the purpose of enabling
Masayoshi Son to make a co-investment in SVF2 and LatAm Funds with the Company, sharing risk of losses aswell as benefit of profits in the success of SVF2 and LatAm Funds and leading to enhanced focus on the
management of investments held by them, which in turn is intended to contribute to increases in the Company’s
earnings. In making a co-investment in SVF2 and LatAm Funds under the terms of the program, MgmtCo both
receives the benefit of profits and assumes the risk of losses from SVF2 and LatAm Funds, and MgmtCo’s rightto receive distributions from its investment is subject to certain restrictions.
Contributions to SVF2 LLC and SLA LLC are classified as “Equity” and “Preferred Equity” depending on theterms and conditions of distribution. SVF2 LLC and SLA LLC each have issued Equity entitled to performancebased distributions that are allocated to the Company and MgmtCo based on the proportion of their respective
contributions. The Company’s Equity interest in each of SVF2 LLC and SLA LLC is 82.75%, and MgmtCo’s
Equity interest in each of SVF2 LLC and SLA LLC is 17.25%. The Company’s investment in SVF2 LLC is
made through SoftBank Vision Fund II-2 L.P. and its subsidiaries, and its investment in SLA LLC is madethrough SBLA Latin America Fund LLC and its subsidiaries.

73

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

Related party transactions of the Company are as follows:(1) Transactions between SVF2 and related parties(Millions of yen)
Name of thecompany orindividual

Masayoshi Son(MASA USA
LLC (MgmtCo))

Nature ofrelationship

Chairman &CEO of SoftBank
Group Corp. andrelated entities ofwhich he holds
more than onehalf of the voting
rightsNature of transaction

For the three-month
period ended June30, 2023
Amount oftransaction

Receipt of capital
contribution in SVF2
LLC and related*1,2
adjustments-

The premium received
on SVF2 LLC’s
receivables

2,841($21 million)

As ofJune 30, 2023
Balance atperiod end*3,4

MgmtCo’s Equity*5,6
interests in SVF2 LLC

Net balance at period end(Receivables in SVF2 LLC less*7
MgmtCo’s Equity interests in SVF2 LLC)

420,883($2,903 million)

*3

-

-

420,883($2,903 million)

Notes:
1. Restrictions on rights to receive distributions to MgmtCo
MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Distributions from SVF2 LLC to
MgmtCo are fully restricted and are not paid until the sum of proceeds received by SVF2 LLC from realized investments plus
the aggregate fair value of all of SVF2 LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregateacquisition cost of all of SVF2 LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo arereleased proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo isentitled to receive the full amount of the distribution. In the event that, upon the liquidation of SVF2 LLC, the amount of the
distributions received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at thetime of liquidation was applied throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawbackfrom MgmtCo.
2. Nature of the Equity contribution by MgmtCo
The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separatelyby the Company to SVF2 LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of
fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SVF2 LLC, then
MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity
contributions and the distributions received by MgmtCo.
3. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments
Balance at period end is the balance of SVF2 LLC’s receivables which consists of the balance related to receipt of capital
contribution, related adjustments, and premiums received from MgmtCo, less any decrease in receivables due to offsetting
settlement with distributions to MgmtCo. The amount of the transaction for “Receipt of capital contribution in SVF2 LLC andrelated adjustments” at the inception of the program is MgmtCo’s Equity Acquisition Amount in SVF2 LLC, which consists of
the amount calculated based on MgmtCo’s Equity interests of 17.25% in the SVF2’s initial acquisition costs of the relevant
portfolio companies held by SVF2 LLC and related adjustments calculated based on 17.25% interest in the increase in the74SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

portfolio companies’ fair value from the initial acquisition costs at SVF2 to June 30, 2021, and the adjustment equivalent tointerests for the period from the Company’s contribution to SVF2 until June 30, 2021.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time, at its discretion, fromthe date it became an investor in SVF2 LLC to the end of the company life of SVF2 LLC. MgmtCo is required to pay a premiumof 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on
SVF2 LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to makefull or partial payment of the premium at any point in time, at its discretion, on the same terms and conditions as Equity
Acquisition Amount.
Any distributable amount from SVF2 LLC to MgmtCo is offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SVF2 LLC’s receivables are paid in full.
4. Collateral and other credit protection for receivables
In order to secure the receivables of SVF2 LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SVF2 LLC held by MgmtCo are pledged as collateral. In the event that MgmtCo pays into the receivables or offsets
such receivables with distributions due to it from SVF2 LLC, the collateral is released to the extent that the cumulative amountsof payments and offsets exceed the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also
provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of June 30, 2023, 8,897,100
shares of SoftBank Group Corp. are deposited in SVF2 LLC by Masayoshi Son. The deposited shares of SoftBank Group Corp.
will be released only when the entire amount of receivables is settled. SVF2 LLC may acquire the deposited SoftBank Group
Corp. shares without consideration where there are any unpaid receivables in SVF2 LLC after the enforcement of the collateraland personal guarantees by SVF2 LLC.
5. MgmtCo’s Equity interest in SVF2 LLC
The amount represents SVF2 LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF” in the condensed interim consolidated statement of financial position.
6. Management fee and performance-linked management fees to be charged to MgmtCo
The terms of the management fee and performance-linked management fee to be charged to MgmtCo are the same as those to be
charged to the Company as an Equity investor in SVF2 LLC.
7. Net balance at period end
Net balance at period end is the balance of receivables held by SVF2 LLC less MgmtCo’s Equity interest in SVF2 LLC.

75

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

(2) Transactions between LatAm Funds and related parties(Millions of yen)
Nature ofrelationship

Masayoshi Son(MASA USA
LLC (MgmtCo))

Chairman &CEO of SoftBank
Group Corp. andrelated entities ofwhich he holds
more than onehalf of the voting
rightsNature of transaction

For the three-month
period ended June30, 2023
Amount oftransaction

Receipt of capital
contribution in SLA
LLC and related*1, 2
adjustments
The premium received
on SLA LLC’s
receivables
MgmtCo’s Equity
interests in SLA
*5,6
LLC

As of
June 30, 2023
Balance atperiod end*3,4-

99,086($683 million)*3671($5 million)

Net balance at period end(Receivables in SLA LLC less*7
MgmtCo’s Equity interests in SLA LLC)-

27,746($191 million)

71,340($492 million)

Notes:
1. Restrictions on rights to receive distributions to MgmtCo
MgmtCo’s right to receive distributions from its investment is subject to certain restrictions. Distributions from SLA LLC to
MgmtCo are fully restricted and are not paid until the sum of proceeds received by SLA LLC from realized investments plus theaggregate fair value of all of SLA LLC’s unrealized investments (net of borrowings) exceeds 130% of the aggregate acquisition
cost of all of SLA LLC’s investments. After the ratio exceeds 130%, restrictions on distributions to MgmtCo are released
proportionately in increments of 10%, and when the ratio reaches 200%, all restrictions are released and MgmtCo is entitled toreceive the full amount of the distribution. In the event that, upon the liquidation of SLA LLC, the amount of the distributions
received by MgmtCo exceeds the amount that would have been distributed to MgmtCo if the ratio in effect at the time ofliquidation was applied throughout the life of SVF2 LLC, then any such excess amounts will be subject to clawback from
MgmtCo.
2. Nature of the Equity contribution by MgmtCo
The Equity interests contributed by the Company and MgmtCo are subordinated to the Preferred Equity contributed separatelyby the Company to SLA LLC. If there is a shortfall in the amount of return of Preferred Equity contributions and the amount of
fixed distributions to be received by the Preferred Equity holders at the time of the final profit distribution by SLA LLC, then
MgmtCo is obligated to pay the shortfall proportional to Equity interests’ ratio up to the total amount of return of Equity
contributions and the distributions received by MgmtCo.
3. Balance at period end of receivables from MgmtCo for receipt of capital contribution and related adjustments
Balance at period end is the balance of SLA LLC’s receivables which consists of the balance related to receipt of capital
contribution, related adjustments, and premiums received. The amount of the transaction for “Receipt of capital contribution in
SLA LLC and related adjustments” at the inception of the program is MgmtCo’s Equity Acquisition Amount in SLA LLC,
which consists of the amount calculated based on MgmtCo’s Equity interests of 17.25% in the LatAm Funds’ initial acquisition
costs of the portfolio companies held by LatAm Funds and related adjustments calculated based on 17.25% interest in theincrease in the portfolio companies’ fair value from the initial acquisition costs at LatAm Funds to June 30, 2021, and theadjustment equivalent to interests for the period from the Company’s contribution to LatAm Funds until June 30, 2021.
MgmtCo is entitled to make full or partial payment of its Equity Acquisition Amount at any point in time, at its discretion, from76SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2023

the date it became an investor in SLA LLC to the end of the company life of SLA LLC. MgmtCo is required to pay a premiumof 3% per annum on the unpaid Equity Acquisition Amount until the unpaid amount is paid in full. “The premium received on
SLA LLC’s receivables” refers to the amount of such premium accrued in the current period. MgmtCo is also entitled to makefull or partial payment of the premium at any point in time, at its discretion, on the same terms and conditions as Equity
Acquisition Amount.
Any distributable amounts from SLA LLC to MgmtCo are offset against the receivables at the time of the distribution notice andno distribution payments to MgmtCo are made until the SLA LLC’s receivables are paid in full.
4. Collateral and other credit protection for receivables
In order to secure the receivables of SLA LLC related to Equity Acquisition Amount and the premium thereon, all of the Equity
interests in SLA LLC held by MgmtCo are pledged as collateral. In the event that MgmtCo pays into the receivables or offsets
such receivables with distributions due to it from SLA LLC, the collateral is released to the extent that the cumulative amountsof payments and offsets exceed the balance of the receivables after deduction of such cumulative amounts. Masayoshi Son also
provides a personal guarantee to the receivables up to the balance of the receivables. In addition, as of June 30, 2023, 2,168,500
shares of SoftBank Group Corp. are deposited in SLA LLC by Masayoshi Son. The deposited shares of SoftBank Group Corp.
will be released only when the entire amount of receivables is settled. SLA LLC may acquire the deposited SoftBank Group
Corp. shares without consideration where there are any unpaid receivables in SLA LLC after the enforcement of the collateraland personal guarantees by SLA LLC.
5. MgmtCo’s Equity interest in SLA LLC
The amount represents SLA LLC’s net assets attributable to MgmtCo (before deduction of receivables), which is included in“Third-party interests in SVF” in the condensed interim consolidated statement of financial position.
6. Management fee, performance-linked management fees, and performance fees to be charged to MgmtCo
The terms of the management fee, performance-linked management fees, and performance fee to be charged to MgmtCo are thesame as those to be charged to the Company as an Equity investor in SLA LLC.
7. Net balance at period end
Net balance at period end is the balance of receivables held by SLA LLC less MgmtCo’s Equity interest in SLA LLC.

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