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 Six-Month Period Ended September 30, 2023 (IFRS)Tokyo, November 9, 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

Six-month period ended
September 30, 2023
Six-month period ended
September 30, 2022

Incomebefore income tax

Net income
AmountAmount%Amount%¥3,227,060

1.4¥(907,425)¥3,182,477

6.7

Net income
attributable toowners of the parent%

Amount%Total
comprehensive
incomeAmount%-¥(1,105,153)-¥(1,408,727)-¥669,159 (73.7)¥292,636 (72.0)¥(13,562)-¥(129,098)-¥2,541,205 184.8

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)Six-month period ended
September 30, 2023¥(971.65)¥(974.03)

Six-month period ended
September 30, 2022¥(93.65)¥(95.14)(2) Financial Position
Total assets

Total equity

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

As of September 30, 2023

¥46,010,042¥11,671,269¥9,762,787

21.2

As of March 31, 2023

¥43,936,368¥10,649,215¥9,029,849

20.6

2. 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)

Notes:
1. On October 27, 2023, the Company announced that the interim dividend for the fiscal year ending March 31, 2024 was determined
under the resolution passed at the Board of Directors meeting held on the same date.
2 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 September 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 September 30, 2023:

4,279,632 shares

As of March 31, 2023:

6,947,599 shares[3] Number of average shares outstanding during the six-month period (April-September):
As of September 30, 2023:
As of September 30, 2022:

1,464,122,067 shares
1,602,801,161 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 November 9, 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 Six-Month Period Ended September 30, 2023

(Appendix)
Contents

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

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

P.3

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

P.7

b. Results by Segment ................................................................................................................................ P.10(a) Investment Business of Holding Companies Segment ..................................................................... P.11(b) SoftBank Vision Funds Segment ...................................................................................................... P.16
(c) SoftBank Segment ............................................................................................................................ P.24(d) Arm Segment .................................................................................................................................... P.26
(2) Overview of Financial Position ................................................................................................................ P.29
(3) Overview of Cash Flows .......................................................................................................................... P.38
(4) Forecasts ................................................................................................................................................... P.41
2. Condensed Interim Consolidated Financial Statements and Primary Notes .................................................. P.43
(1) Condensed Interim Consolidated Statement of Financial Position .......................................................... P.44
(2) Condensed Interim Consolidated Statement of Profit or Loss
and Condensed Interim Consolidated Statement of Comprehensive Income .......................................... P.46
(3) Condensed Interim Consolidated Statement of Changes in Equity .......................................................... P.50
(4) Condensed Interim Consolidated Statement of Cash Flows ..................................................................... P.54
(5) Significant Doubt about Going Concern Assumption .............................................................................. P.56
(6) Notes to Condensed Interim Consolidated Financial Statements ............................................................. P.56

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.
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 Six-Month Period Ended September 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
1
Arm
Arm Holdings plc or Arm Limited*
Alibaba
Alibaba Group Holding Limited
MgmtCoMASA USA LLC
The first quarter
Three-month period ended June 30, 2023
The second quarter
Three-month period ended September 30, 2023
The period
Six-month period ended September 30, 2023
The second quarter-end
September 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
Note:
1. A corporate reorganization was undertaken in August 2023, pursuant to which Arm Holdings Limited, a former subsidiary of Arm
Limited, acquired all the issued ordinary shares of Arm Limited, thereby making it a wholly owned subsidiary. Subsequently, Arm
Holdings Limited changed its name to Arm Holdings plc and was listed on the Nasdaq Global Select Market through an initialpublic offering on September 14, 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
Q2¥138.11¥145.44¥149.58

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

1. Results of Operations(1) Overview of Results of Operations
1. Listing of Arm on the Nasdaq Global Select Market- Arm was listed on the Nasdaq Global Select Market on September 14, 2023. In the IPO, a wholly owned
subsidiary of the Company disposed of 102,500,000 American depositary shares (“ADSs”), representing*1
10% of Arm’s outstanding ordinary shares, and received proceeds of $5.12 billion.
- No gain on the disposal is recorded in the consolidated statement of profit or loss as Arm continues to be a
subsidiary of the Company after the disposal. However, in the consolidated statement of financial position,¥674.4 billion ($4.65 billion), which represents the gain on disposal, was recorded as capital surplus.
2. Results highlights◆ ¥963.6 billion investment loss (¥849.6 billion loss for the same period of the previous fiscal year)- ¥413.5 billion investment loss at Investment Business of Holding Companies· Unrealized valuation loss of ¥364.5 billion and derivative loss on investments of ¥66.5 billion· ¥237.6 billion unrealized valuation loss on Alibaba shares included in the unrealized valuation loss above
was offset by a derivative gain of ¥642.0 billion relating to prepaid forward contracts, etc. using Alibaba
shares (recorded as derivative gain (excluding gain or loss on investments)).
- ¥583.3 billion investment loss at SoftBank Vision Funds (excluding gains associated with SVF’s
investments in the Company’s subsidiaries)
Note: The SoftBank Vision Funds segment recorded ¥181.1 billion gain on investments; this included gains associated with
SVF’s investments in Arm and other subsidiaries of the Company.
*2· For the investments held at the second quarter-end, the fair value of public portfolio companies decreased*2
due to lower share prices, and the fair value of private portfolio companies decreased mainly reflecting
markdowns of weaker-performing companies.
◆ ¥907.4 billion loss before income tax (deterioration of ¥1,200.1 billion yoy)reflecting the recordings of:- Finance cost of ¥295.2 billion- Foreign exchange loss of ¥648.1 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 ¥701.7 billion due to recording a gain relating toprepaid forward contracts using Alibaba shares following a fall in the share price, which offset an unrealized
valuation loss on the shares◆ ¥1,408.7 billion net loss attributable to owners of the parent (deterioration of ¥1,279.6 billion yoy)reflecting the recordings of:- Income tax of ¥197.7 billion- Net income attributable to non-controlling interests of ¥303.6 billion
3. Balancing defense and offense*3◆ LTV remained nearly unchanged from the previous fiscal year-end as a result of continued
monetization- Raised $4.39 billion through prepaid forward contracts using Alibaba shares- Received proceeds of $5.12 billion through the IPO of Arm*4- Received proceeds totaling $1.97 billion from sales of investments by SVF◆ Expanded investments*4- $1.33 billion for acquisition of investments by SVF*5- ¥282.6 billion primarily for strategic investments by SBG and its wholly owned subsidiaries
4. SVF*6
Gross performance since inception was $14.8 billion in gain for SVF1 and $20.7 billion in loss for SVF2.

3

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

5. 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*7
through a 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 replaced domestic hybrid bonds (¥15.4 billion) in September 2023, with the first voluntary calldate in the same month.
6. Completion of the group reorganization involving Z Holdings and its core wholly owned subsidiaries,
primarily LINE and Yahoo Japan
As of October 1, 2023, subsequent to the end of the second quarter, Z Holdings successfully completed thescheduled group reorganization procedures, including a merger primarily among the company and its corewholly owned subsidiaries, LINE and Yahoo Japan, and changed its trade name to LY Corporation. The revisedorganizational structure, with a further emphasis on products, is expected to accelerate synergy expansion
through business integration.
Notes:
1. The calculation is based on the 1,025,234,000 company shares issued and outstanding on September 30, 2023.
2. 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.
3. Loan-to-Value (LTV) refers to the ratio of liabilities to holding assets, calculated by dividing the adjusted net interest-bearing debt
by the equity value of holdings. Both the equity value of holdings and adjusted net interest-bearing debt exclude amounts to besettled at maturity or borrowings associated with asset-backed finance. In computing the adjusted net interest-bearing debt, thecalculation omits 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 like Z Holdings Corporation and PayPay Corporation), SVF1, SVF2, LatAm
Funds, and Arm. A portion of SB Northstar’s interest-bearing debt and short-term investments included in its cash position are also
excluded.
4. The amounts recorded in the condensed interim consolidated statement of cash flows
5. The amount comprises the investment outlay by SBG and its primary wholly owned subsidiaries (excluding investments in U.S.
Treasury Bonds), as accounted for under “Acquisition of investments” in the condensed interim consolidated statements of cash
flows, combined with the amount paid to third-party shareholders of Berkshire Grey, Inc. to acquire all of its shares in July 2023, netof cash and cash equivalents held by the company.
6. Gross amounts before deductions, such as third-party interests and taxes
7. 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.

INTRA-GROUP TRANSACTION OF ARM SHARES AND IPO OF ARM
1. Intra-group transaction of Arm shares(1) Transaction overview
Prior to Arm’s initial public offering (the “IPO”), in August 2023, a wholly owned subsidiary of the Company
acquired substantially all of the ordinary shares of Arm held by SVF1 (equivalent to 24.99% of Arm’s outstanding
shares)*8(the “Transaction”) for $16.1 billion (the “Transaction Consideration”). The Transaction Consideration

was established by reference to the terms of a prior contractual arrangement between the parties. The Transaction
Consideration is being paid in four installments, with the first installment of $4.1 billion paid upon completion of
the Transaction in August 2023, and the remaining three installments to be paid over the course of two years up to
August 2025. SVF1 used the entire $4.1 billion received from the first installment to repay its borrowings. The
proceeds from the second and subsequent installments will be used primarily to make payments to limited partners,
including the Company, in accordance with the allocation method specified in the Limited Partnership Agreement.
Timing and amount of installments of the Transaction Consideration
1st

2nd

3rd

4th

TimingAugust 2023

August 2024

February 2025

August 2025

Amount$4.1 billion$4.1 billion$4.1 billion$3.8 billion

4SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

In addition to the Transaction, an agreement was also reached to acquire interests in Arm Technology (China)
Co., Ltd. (“Arm China”) and Treasure Data, Inc. (“Treasure Data”), both of which were previously spun out fromArm. The total consideration for the intra-group transaction, including the acquisition of interests in these twocompanies, was $16.4 billion.
Note:
8. Following the completion of Arm’s pre-IPO corporate reorganization, SVF1 continued to hold one ordinary share of Arm Holdings
plc, which wholly owns Arm Limited.

(2) Primary impact on consolidated financial statements
Given the discounted present value of the Transaction Consideration of $15.1 billion as of August 2023, SVF1
recorded an investment gain of $6.9 billion, derived by subtracting the investment cost of $8.2 billion from $15.1
billion. Additionally, SVF1 will recognize the difference between $16.1 billion and $15.1 billion as investment
gains over the course of two years up to August 2025. These investment gains were and will be eliminated inconsolidation, as this was an intra-group transaction of subsidiary shares.
In the SoftBank Vision Funds segment, a realized gain of ¥1,004,337 million ($6.9 billion), an unrealized loss of¥189,817 million ($1.8 billion) (reclassified to realized gain recorded in the past fiscal years), and a loss of ¥76,902
million as the effect of foreign exchange translation were recorded under gain on investments at SoftBank Vision
Funds for the period.
Income for the SoftBank Vision Funds segment is represented by the net amount, which is calculated bydeducting the gains attributable to third-party investors from the total investment gains. The gains attributable tothird-party investors are also reflected in the condensed interim consolidated statement of profit or loss, recorded as
an increase in third-party interests in SVF.
Difference between segment information and the condensed interim consolidated statement of profit or loss
(Millions of yen)
Condensed interim
SoftBank Visionconsolidated
Reconciliations
Funds segment
statement of
profit or loss
Gain/loss on investments at SoftBank Vision Funds
181,136(764,418)(583,282)
Gain/loss on investments in subsidiaries, etc.
764,418(764,418)
Including gain/loss on investments in Arm shares
737,618(737,618)
Loss on investments other than in subsidiaries, etc.
(583,282)(583,282)
Change in third-party interests in SVF(226,265)(226,265)
2. IPO of Arm(1) Transaction overview
Arm was listed on the Nasdaq Global Select Market on September 14, 2023, under the ticker symbol “ARM.” In
the IPO, a wholly owned subsidiary of the Company disposed of 102,500,000 ADSs, representing 10% of Arm’s
outstanding ordinary shares, at a price to the public of $51.00 per ADS.
(2) Primary impact on consolidated financial statements
The Company did not recognize a gain on disposal in its condensed interim consolidated statement of profit or loss
as Arm remains a subsidiary of the Company after the disposal. However, ¥674,370 million ($4.65 billion),
representing the gains on disposal, was recorded as capital surplus in the condensed interim consolidated statement

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

of financial position. In the condensed interim consolidated statement of cash flows, ¥745,082 million ($5.12
billion) was recorded as proceeds from the partial sales of shares of subsidiaries to non-controlling interests, undercash flows from financing activities.
WEWORK’S FILING FOR PROTECTION UNDER CHAPTER 11 OF THE UNITED STATESBANKRUPTCY CODE
On November 6, 2023, subsequent to the end of the second quarter, WeWork Inc. (“WeWork”), a portfolio
company of SVF, filed for protection under Chapter 11 of the United States Bankruptcy Code. The following tableelucidates the gains and losses associated with the investment and financial support provided to WeWork, as
recognized in the condensed interim consolidated statement of profit or loss for the period. As of September 30,
2023, the carrying amount of the stocks and warrants held by SVF1 and SVF2 was ¥17,722 million, which
represents the market value as of the same date. The carrying amount of the notes held by SVF2 has been written
down to zero yen, and the amount of credit support by SVF2 for a letter of credit facility provided by financial
institutions to WeWork has been fully recorded as a provision for allowance for financial guarantee contract losses.
On November 6, 2023, WeWork entered into a Restructuring Support Agreement with its major debt investors forthe restructuring of the company.
(Millions of yen)
Condensed interim consolidated statement of profit or loss
Account
WeWork stocks and warrants held by SVF1 andSVF2Amount recorded
for the period

Loss on investments at SoftBank
Vision Funds(98,894)

Loss on equity method
investments/Other loss

(4,568)WeWork convertible bonds with a face value of$0.46 billion held by SVF2

Loss on investments at SoftBank
Vision Funds(25,924)

WeWork unsecured notes with a face value of$1.65 billion, previously held by SBG/SVF2(exchanged for the stocks and convertible bonds
in Q1)(as loss on unsecured notes derecognized)(21,579)

Gain on investments at SoftBank
Vision Funds

439

Other gain

16

WeWork senior secured notes with a face valueof $0.30 billion, previously held by SVF2
(redeemed in Q1)
WeWork notes with a face value of $0.30
billion held by SVF2 (acquired in Q2; a loan
commitment for notes purchase at end of Q1)
Credit support by SVF2 for a letter of credit
facility up to $1.43 billion provided to WeWorkby financial institutions

Other loss

Loss on investments at SoftBank
Vision Funds(41,810)

Other loss
(as provision for allowance for financial
guarantee contract losses)(42,072)

Total(234,392)

6

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

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

ChangeChange %3,182,477
1,721,329

3,227,060
1,732,317

44,583
10,988

1.4%
0.6%

A

3,524,655(413,530)(3,938,185)-

B(4,353,542)(20,711)(849,598)(583,282)
33,257(963,555)

3,770,260
53,968(113,957)-

C(1,254,340)(314,217)(1,095,426)(1,354,072)(295,184)(648,086)(99,732)
19,033447,3408.0%(6.1%) D- E(54,870)(34,620)

20,250-Derivative gain
(excluding gain (loss) on investments)
Change in third-party interests in SVF
Other gain
Income before income tax
Income taxes
Net income

1,029,780
1,018,741
91,237
292,636(306,198)(13,562)

701,718(226,265)
180,322(907,425)(197,728)(1,105,153)(328,062)(1,245,006)
89,085(1,200,061)
108,470(1,091,591)(31.9%) G
97.6% H(35.4%) Ｉ-

Net income attributable to owners of
the parent(129,098)(1,408,727)(1,279,629)-

Total comprehensive income

2,541,205

669,159(1,872,046)(73.7%)

Comprehensive income attributable toowners of the parent

2,452,050

377,178(2,074,872)(84.6%)

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
Selling, general and administrative
expensesFinance cost
Foreign exchange loss
Loss on equity method
investments

F

The following is an overview of the primary and noteworthy components.
A Net Sales
Net sales increased in the SoftBank segment and 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 ¥413,530 million was recorded at Investment Business of Holding Companies. This mainlyreflected the recording of a loss on valuation of investments of ¥364,545 million primarily due to declines in theshare prices of Alibaba, Deutsche Telekom AG (“Deutsche Telekom”), and T-Mobile US, Inc. (“T-Mobile”).
Among these, the loss of ¥237,616 million due to Alibaba was offset by a derivative gain of ¥641,989 million
related to prepaid forward contracts and other using Alibaba shares. For details, see “(a) Investment Business of
Holding Companies Segment” under “b. Results by Segment.”
7

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

C Loss on Investments at SoftBank Vision Funds
Investment loss of ¥583,282 million was recorded at SoftBank Vision Funds. This included losses of ¥256,299
million at SVF1 and ¥373,047 million at SVF2, as well as gains of ¥33,394 million at LatAm Funds and ¥12,670
million on other investments.
SVF1 recorded a realized loss on investments (net) of ¥77,684 million due to the full exits of three portfolio
1

companies and the partial exits of several other portfolio companies. Meanwhile, SVF1 recorded unrealized
valuation losses (net) totaling ¥298,060 million for investments held at the second quarter-end. This comprises an
unrealized loss (net) totaling ¥36,916 million for public portfolio companies due to lower share prices and an
unrealized loss (net) totaling ¥261,143 million for private portfolio companies, mainly reflecting markdowns of
weaker-performing companies.
SVF2 recorded a realized loss on investments (net) of ¥61,028 million, mainly due to the full exits of three1

portfolio companies and the partial exits of several other portfolio companies. SVF2 recorded unrealized valuation
losses (net) totaling ¥392,668 million for investments held at the second quarter-end, as a result of the decline inshare prices of public portfolio companies, such as AutoStore Holdings Ltd. (“AutoStore”) and WeWork, as well as
the decrease in fair value of private portfolio companies, mainly reflecting markdowns due to their weakerperformances.
LatAm Funds recorded unrealized valuation gains (net) totaling ¥32,676 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 ¥963,555 million.
D Finance Cost
2

Interest expenses at SBG decreased by ¥36,892 million year on year, totaling ¥201,953 million. This decrease wasprimarily due to higher interest expenses incurred in the same period of the previous fiscal year due to the early
physical settlement of prepaid forward contracts using 242 million ADRs (American Depository Receipts) of
Alibaba shares entered into between August and September 2022. This settlement led to a lump-sum amortizationof the unamortized cost of financial liabilities relating to sale of shares by prepaid forward contracts. Additionally,
the full repayment of a margin loan using Alibaba shares made in the second quarter of the previous fiscal year andthe repurchase of foreign currency-denominated senior notes in the third quarter of the previous fiscal year further2

reduced interest expenses. Since the majority of SBG’s interest-bearing debts are at fixed interest rates, the impact
of short-term interest rate rises on interest expenses is limited.
E Foreign Exchange Loss
Foreign exchange loss of ¥648,086 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. dollars). 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 ¥1,784,638 million,
which is recorded under accumulated other comprehensive income in equity on the condensed interim consolidated
8

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

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 ¥25,394 million was recorded
in relation to Alibaba; however, Alibaba was excluded from the associates in the second quarter of the previous
fiscal year.
G Derivative Gain (Excluding Gain or Loss on Investments)
Derivative gain of ¥641,989 million was recorded for the prepaid forward contracts and associated 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 the shares of SB Energy Corp., a wholly owned subsidiary of the Company. In addition, interest income
increased by ¥64,712 million year on year to ¥76,187 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 ¥907,425 million, a deterioration of¥1,200,061 million year on year.
I Income Taxes
Income taxes were ¥197,728 million, mainly reflecting income taxes recorded by operating companies such as
SoftBank Corp. and Yahoo Japan Corporation.
Primarily as a result of A through I, net loss attributable to owners of the parent was ¥1,408,727 million, adeterioration of ¥1,279,629 million year on year.

9SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 second quarter-end, there are four reportablesegments: 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
SoftBank Vision
Funds

SoftBank

Arm

Other

*1

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·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·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.
*2
Z Holdings Corporation*2
LINE Corporation*2
Yahoo Japan Corporation
PayPay Corporation·Design of microprocessor intellectual
property and related technology·Sale of software tools and provision ofrelated services

Arm Holdings plc·Alternative investment managementbusiness·Fukuoka SoftBank HAWKS-related
businesses

Fortress Investment Group LLC
Fukuoka SoftBank HAWKS Corp.

Notes:
1. From the first quarter, the naming of some management categories within the SoftBank segment has been revised, changing from“Consumer,” “Corporate,” “Distribution,” “Yahoo & LINE,” “Finance” to “Consumer,” “Enterprise,” “Distribution,” “Media &EC,” and “Financial.”
2. On October 1, 2023, Z Holdings Corporation, as the surviving company, completed an intra-group reorganization involving mainly
itself and two of its core wholly owned subsidiaries, LINE Corporation and Yahoo Japan Corporation. On the same date, Z Holdings
Corporation and LINE Corporation changed their trade names to LY Corporation and Z Intermediate Global Corporation,
respectively, and Yahoo Japan Corporation was dissolved.

10

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

(a) Investment Business of Holding Companies Segment
1. Investment loss of ¥413.5 billion was recorded, mainly due to declines in the share prices of Alibaba,
Deutsche Telekom, and T-Mobile.
2. Segment loss of ¥543.3 billion was recorded due to foreign exchange loss of ¥650.1 billion, although theaforementioned investment loss was offset by a derivative gain of ¥700.4 billion (excluding gain or loss on
investments).

OVERVIEWThis segment is led by SBG, which conducts investment activities either directly or through its subsidiaries, acting
as a strategic investment holding company. The segment comprises SBG, SoftBank Group Capital Limited,
SoftBank Group Japan Corporation, the asset management subsidiary SB Northstar, and certain other subsidiaries
engaged in investment and financing activities. Gains and losses on investments at Investment Business of Holding
Companies encompasses gains and losses on investments held by SBG either directly or through its subsidiaries,
excluding gains and losses on investments pertaining to subsidiaries’ shares, such as dividend income fromsubsidiaries or impairment losses related to subsidiaries’ shares.
This segment has approximately 110 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 (Fair
Value Through Profit or Loss). Investments classified as financial assets at FVTPL are measured at fair value every
quarter, with any change in fair value recorded in the consolidated statement of profit or loss as gains and losses oninvestments.
Alibaba
The Company classified its holdings of Alibaba shares as financial assets at FVTPL. These shares are measured atfair value every quarter, with any change in fair value recorded in the consolidated statement of profit or loss as again or loss on investments. Additionally, derivative financial assets and liabilities are recognized for prepaid
forward contracts using Alibaba shares. These derivatives are measured at fair value every quarter, with any change
recorded in the consolidated statement of profit or loss as a derivative gain or loss (excluding gain or loss on
investments).
Investment in listed stocks and other instruments by asset management subsidiaries
SB Northstar engages in the acquisition and sale of listed stocks and other instruments utilizing the surplus funds of
SBG. Investment loss at asset management subsidiaries for the period amounted to ¥50.3 billion, bringing the1

cumulative investment loss since inception to ¥942.7 billion.* The balance of shareholdings and other instruments
as of the second quarter-end stood at ¥117.7 billion.
SBG indirectly holds a 67% stake, while SBG’s Representative Director, Corporate Officer, Chairman & CEO
Masayoshi Son, indirectly holds a 33% interest in SB Northstar. The portion corresponding to Masayoshi Son’s
interest is deducted from the gains and losses on investments at SB Northstar as a non-controlling interest;
therefore, 67% of the gains and losses on investments impact net income attributable to owners of the parent. In theevent that, at the end of the fund life (12 years + 2-year extension), SB Northstar has any unfunded repayment
obligations to SBG, Masayoshi Son will cover his pro rata share of any such unfunded obligations based on his
relative ownership percentage in SB Northstar.
Note:
1. The figures for cumulative investment loss exclude the impact of SB Northstar’s investments in three Special
Purpose Acquisition Companies (“SPACs”) controlled by SB Investment Advisers (US) Inc.
11

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

FINANCIAL RESULTS(Millions of yen)Six months ended September 30
2022
2023
Gain (loss) on investments at Investment Businessof Holding Companies
3,524,708(413,530)
Gain relating to settlement of prepaid
4,838,251
forward contracts using Alibaba shares
Gain relating to sales of T-Mobile shares
24,842
Realized loss on investments at asset(54,226)(88,342)
management subsidiaries
Unrealized gain (loss) on valuation of
investments at asset management
subsidiaries(58,803)
30,003
Derivative loss on investments at asset(5,842)(796)
management subsidiaries*1(147,666)
5,489
Realized gain (loss) on investments
Unrealized loss on valuation of investments(1,170,459)(313,771)
Change in valuation for the fiscal year
(1,158,182)(340,928)
Reclassified to realized gain (loss)*1(12,277)
27,157
recorded in the past fiscal years
Derivative gain (loss) on investments
86,533(66,495)*2
6,532
Effect of foreign exchange translation
Other
12,07813,850
Selling, general and administrative expenses(30,662)(41,495)
Finance cost(240,639)(209,642)
Foreign exchange loss
(1,100,143)(650,131)
Loss on equity method investments(23,879)(4,062)Derivative gain
(excluding gain (loss) on investments)
Mainly due to prepaid forward contracts using
1,041,501
700,386
Alibaba shares
Other gain
91,40375,222
Segment income (income before income tax)

3,262,289(543,252)

Change Change %(3,938,238)-

A(4,838,251)(24,842)-(34,116)-88,806-

5,046
153,155
856,688817,254-

39,434(153,028)
6,532
1,772
(10,833)
30,997450,012
19,81714.7%
35.3%(12.9%) B- C-(341,115)(16,181)(32.8%) D(17.7%)(3,805,541)-

Notes:
1. Unrealized gains and losses on valuation of investments recorded in previous fiscal years related to the investments realized in the
period are reclassified to “Realized gain (loss) on investments.”
2. Unrealized gains and losses on valuation of investments are translated using the average exchange rate for the quarter in which thegains and losses were incurred, while realized gains and losses on investments are translated using the average exchange rate for thequarter in which the shares were disposed. “Effects of foreign exchange translation” are amounts that arose due to the use ofdifferent foreign currency exchange rates for these unrealized and realized gains and losses.

12SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

A Loss on investments at Investment Business of Holding Companies: ¥413,530 million· Unrealized loss of ¥313,771 million was recorded on valuation of investments. This primarily comprised
unrealized valuation losses of ¥237,616 million for Alibaba shares, ¥102,232 million for Deutsche Telekom
shares, and ¥24,621 million for T-Mobile shares, attributed to declines in their share prices.
· Derivative loss of ¥66,495 million on investments was recorded, mainly due to a loss of ¥78,500 million
pertaining to the right to acquire T-Mobile shares for no additional consideration if certain conditions are met.
B Finance cost: ¥209,642 million (decrease of ¥30,997 million year on year)
2

Interest expenses at SBG decreased by ¥36,892 million year on year, totaling ¥201,953 million. This decrease wasprimarily due to higher interest expenses incurred in the same period of the previous fiscal year due to the early
physical settlement of prepaid forward contracts using 242 million ADRs (American Depository Receipts) of
Alibaba shares entered into between August and September 2022. This settlement led to a lump-sum amortizationof the unamortized cost of financial liabilities relating to sale of shares by prepaid forward contracts. Additionally,
the full repayment of a margin loan using Alibaba shares made in the second quarter of the previous fiscal year andthe repurchase of foreign currency-denominated senior notes in the third quarter of the previous fiscal year further2

reduced interest expenses. Since the majority of SBG’s interest-bearing debts are at fixed interest rates, the impact
of short-term interest rate rises on interest expenses is limited.
C Foreign exchange loss: ¥650,131 million
Foreign exchange loss of ¥650,131 million (net) was recorded due to the weaker yen. This was primarily 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.
D Derivative gain (excluding gain or loss on investments): ¥700,386 million
Derivative gain of ¥641,989 million was recorded for the prepaid forward contracts and associated contracts using
Alibaba shares.

13SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

Reference: Impact of the asset management subsidiaries on the condensed interim consolidated statement offinancial position

Cash and cash equivalents
Investments from 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)
September 30, 2023
1,027,096
117,700
963
15,312
4,476
1,165,547
21
963
8,077
509
9,570
1,971,699
39,786
1,912,020
19,893 A(971,358) B
155,636
1,155,977 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(323,687)
58,809(244,985) D

Note:
2. One-third of B in the above table(Interests in equity (C above))
Interests of SBG
Non-controlling interests (interests of Masayoshi Son)

(Millions of yen)
1,400,962(244,985) D

Equity1,155,977

14

C

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

Main interest-bearing debt and lease liabilities in this segment
Balance as of September 30,
2023 in condensed interim
consolidated statement offinancial position¥459.9 billion¥5,958.4 billion¥10.0 billion¥183.5 billion

Borrower
SBG

Type
Borrowings
Corporate bonds
Lease liabilities
Commercial paper

Wholly owned subsidiaries*1
conducting fund procurement

Borrowings using Arm shares(margin loan)¥1,259.8 billion

Prepaid forward contracts using Alibaba
shares (floor contracts, collar contracts,and forward contracts)¥4,940.4 billion

Borrowings using SoftBank Corp. shares(margin loan)¥498.1 billion

Prepaid forward contracts using
T-Mobile shares (collar contracts)¥424.2 billion

Collar transactions using Deutsche
Telekom shares¥481.6 billion

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

15

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

(b) SoftBank Vision Funds Segment
1. Gross performance since inception was $14.8 billion in gain for SVF1 and $20.7 billion in loss for
*1
SVF2.
*2
SVF1: $104.4 billion in cumulative returns on $89.6 billion investments, with $14.8 billion gross gain
· Investment gain was $3.4 billion (¥482.2 billion) for the period, including an investment gain of $5.1 billion(¥737.6 billion) arising from the sale of Arm shares to a wholly owned subsidiary of the Company.
· The fair value of investments held at the second quarter-end decreased by 3.7% from the previous*3
quarter-end.
*4- Down 2.6% for public portfolio companies, due to declines in share prices of SenseTime, Vir
Biotechnology, and others, partially offset by increases in share prices of DiDi and others*4- Down 4.6% for private portfolio companies, mainly due to markdowns of certain weaker-performing
companies
SVF2: $31.5 billion in cumulative returns on $52.2 billion investments, with $20.7 billion gross loss
· Investment loss was $2.4 billion (¥347.1 billion) for the period.
· The fair value of investments held at the second quarter-end decreased by 7.0% from the previous quarterend.
- Down 28.9% for public portfolio companies, mainly due to declines in share prices of AutoStore,
WeWork, and Symbotic- Down 2.7% for private portfolio companies, mainly due to markdowns of a number of weaker-performing
companies, despite markups of certain portfolio companies reflecting higher valuations in their recent
funding rounds
Investment gains and losses on 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 inconsolidation and not included in “Gain (loss) on investments at SoftBank Vision Funds” in theConsolidated Statement of Profit or Loss.
(As of September 30, 2023; in billions of U.S. dollars)

Since Inception

SVF1

Investment
*6
cost

*6

Returns

The Fiscal Year
Gain/loss

Exited investments
34.6
59.7
25.1
Investments before exit
55.0
42.3
(12.7)
Reversal of valuation gain/loss recorded in prior periods for exitedinvestments in the fiscal year
Derivatives/Interests/Dividends
0.0
2.4
2.4

Total

89.6

104.4

14.8

*5

Gain/loss
Jul - Sep

Gain/loss
Apr - Sep

6.9
(1.6)

6.3
(2.0)

(2.9)
0.0
2.4

(0.9)
0.0
3.4

¥351.0 billion¥482.2 billion

(0.6)
(2.2)

(0.4)
(2.5)

0.6
0.1
(2.1)

0.4
0.1
(2.4)

¥(303.1) billion¥(347.1) billion

SVF2
Exited investments
2.5
3.2
0.7
Investments before exit
49.7
28.5
(21.2)
Reversal of valuation gain/loss recorded in prior periods for exitedinvestments in the fiscal year
Derivatives/Interests/Dividends
(0.2)
(0.2)

Total

52.2

31.5

(20.7)

2. Continue monetization and investment under a disciplined approach· SVF2 made investments totaling $1.93 billion in the period.
· SVF1 and SVF2 sold investments for a total of $17.37 billion in the period, including full exits of eight1
portfolio companies, including Arm, and partial exits of several portfolio companies.

16SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 second quarter. The
classification of portfolio companies as public/private is based on their status as of the second quarter-end. For portfolio companies
with a change in the classification of public/private during the second quarter, comparisons are made by adjusting their status at thefirst quarter-end to that of the second 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 (July to September and April to September) represents theexit price, net of the investment cost of such investments. Unrealized valuation gains and losses of such investments, recorded inprior years or the first quarter, are presented as a reversal of valuation gain/loss recorded in prior periods for exited investments inthe fiscal year. Therefore, the total amount of gains and losses for the first quarter (April to June), disclosed in the first quarter, andthe gains and losses for the second quarter (July to September) for “Investments before exits” may not align with the amount ofgains and losses for the period (April to September).
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 September 30, 2023
The funds aim to maximize returns from a medium- to long-term perspective through investments in high-growthpotential companies leveraging AI. SVF1’s investment period has ended, and the remaining undrawn capital isreserved for 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.

SVF2
SoftBank Vision FundII-2 L.P.
*2

98.6

LatAm Funds
SBLA Latin America
Fund LLC
*2

60.0
7.6
*1
The Company: 57.4
The Company: 7.2
The Company: 33.1
Third-party investors: 65.5
Third-party investor
Third-party investor*3*3(MgmtCo): 0.4(MgmtCo): 2.6
SBIA
SBGA
(The Company’s wholly owned (The Company’s wholly owned
U.K. subsidiary)
U.K. subsidiary)Ended on September 12, 2019
To be determined by the manager
Until November 20, 2029 + Up Until October 4, 2032 + Up to two one-year
to two one-year extensions
extensions option by SBGA
option by SBIA

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. Effective September 27, 2023, SBGA, the manager of SVF2 and LatAm Funds, may allocate the remaining committed capital from
SVF2 to LatAm Funds up to the amount of $4 billion and in such circumstances, the total commitment to SVF2 will be reduced.
3. A co-investment program has been introduced for SVF2 and LatAm Funds for the Company’s management. MASA USA LLC(MgmtCo), an investment entity for the co-investment program, participates in two funds. The interest attributable to MgmtCo is17

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

treated as a third-party interest in the Company’s consolidated financial statements. For details, see “13. Related party transactions
regarding a co-investment program with restricted rights to receive distributions” under “(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 engage in borrowings that are non-recourse to SBG, with theaim of leveraging and maintaining liquidity. Such borrowings include asset-backed finance, which utilizes held
assets 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. 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-thecounter markets are determined using single or multiple factors, such as quoted prices and other observable inputs.
For private portfolio companies, one or more valuation methods are used, including the market 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.

18SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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

Realized gain on investments
Unrealized loss on valuation of
investments
Change in valuation for the fiscal year
Reclassified to realized gain recorded*2
in the past fiscal years
Interest and dividend income frominvestments
Derivative gain on investments
Effect of foreign exchange translation
Gain on other investments
Selling, general and administrative expenses
Finance cost
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF
Other gain (loss)

Segment income (income before income tax)

Six months ended September 30
2022
2023

ChangeChange %(4,312,342)

181,136

4,493,478-(4,316,203)
5,398

168,466
855,769

4,484,669
850,371-(4,303,080)(4,200,240)(634,182)(633,520)

3,668,898
3,566,720-(102,840)(662)

102,178-759
36,365(55,645)
3,861(30,983)(35,795)

20,812
4,427(78,360)
12,670(44,688)(52,532)

20,053(31,938)(22,715)
8,809(13,705)(16,737)(87.8%)
228.2%
44.2%
46.8%

620
1,018,741
9,105

(620)
(226,265) (1,245,006)(55,474)(64,579)-(3,350,654)(197,823)-

3,152,831

A

B

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 to “Realized gain (loss) on investments.”

Investments and disposals by SVF1 and SVF2
(Billions of U.S. dollars)
Investments made during the fiscal year
Q1
Q2
YTD

4

Disposals made during the fiscal year
Q1
Q2
YTD

SVF1

-

-

-

0.56

16.36

16.92

SVF2

1.56

0.37

1.93

0.33

0.12

0.45

Total

1.56

0.37

1.93

0.89

16.48

17.37

Note: Investments include new and follow-ons.

19

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

Segment income
A Gain on investments at SoftBank Vision Funds: ¥181,136 million(Millions of yen)Six months ended September 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(2,008,251)(1,934,361)

482,174(347,102)2,490,425
1,587,259(373,591)

406,985

3,861

33,394
12,670Gain (loss) on investments at SoftBank Vision Funds (A)(4,312,342)

181,136

4,493,478

41,200764,418

723,218(4,353,542)(583,282)

3,770,260

Gain on SVF’s investments in shares of
the Company’s subsidiaries, etc. (B)Loss on investments at SoftBank Vision Funds in the Condensed
Interim Consolidated Statement of Profit or Loss (A) - (B)8,809

Gain on SVF’s investments in shares of the Company’s subsidiaries, etc. for the period primarily comprises aninvestment gain of ¥737,618 million ($5.1 billion) associated with the investment in Arm. As a result of the sale of
Arm shares held by SVF1 to a wholly owned subsidiary of the Company in August 2023, a realized gain of¥1,004,337 million ($6.9 billion), an unrealized loss (reclassified to realized gain recorded in the past fiscal years)of ¥189,817 million ($1.8 billion), and a loss of ¥76,902 million as the effect of foreign exchange translation wererecorded in the SoftBank Vision Funds segment. For details of this sale, see “INTRA-GROUP TRANSACTION
OF ARM SHARES AND IPO OF ARM” under “(1) Overview of Results of Operations.”

B Change in third-party interests in SVF: ¥(226,265) million
This represents the total 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.”

20

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

Investment performance
As of September 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
return104.4

Cumulative
*1
gain
14.8

Cumulative
number ofinvestments(4)

Cumulative
investment
cost
(2.0)

Cumulative
investment
return(2.0)

Cumulative
*1
gain
-

(4)
94

87.6

102.4

14.8

Number ofinvestments
29
29

Investment
cost
4.9
29.7
34.6

Exit price
14.0
45.7
59.7

Cumulative*1
realized gain
9.1
16.0
25.1

Investment gainrecorded for the fiscal year
Jul – Sep
Apr – Sep
2.4
3.4

(Reference)*2

Effects of share exchanges*3

Effects of dividends in kindNet of the above effects(1) Exited investments

Partial exit
*4
Full exit
Total(2) Investments before exit (investments held at the second quarter-end)*6

PublicPrivate
Total

Number ofinvestments
23
50
73

Realized gainrecorded for the fiscal year
Jul – Sep
Apr – Sep
0.1
6.2
6.9
6.3

*5

Investment
cost
29.5
25.5
55.0

Fair value
19.2
23.1
42.3

Cumulative
unrealized*7
valuation loss
(10.3)(2.4)(12.7)

Unrealized valuation loss
recorded for the fiscal year
Jul – Sep
Apr – Sep
(0.5)
(0.2)
(1.1)
(1.8)
(1.6)
(2.0)

Derivative
cost
(0.0)
0.0
0.0

Fair value/
Cumulative
settlement
price derivative gain
0.0
0.0
1.5
1.5
1.5
1.5

Derivative gainrecorded for the fiscal year
Jul – Sep
Apr – Sep
0.0
0.0
0.0
0.0

(3) Derivatives

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

Cumulative
income0.9Interest and dividend income
recorded for the fiscal year
Jul – Sep
Apr – Sep-

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
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 and Acetone Limited (an intermediate holding company that owns
approximately 48% of the equity interest in Arm China)) and two investments acquired from Reef Global Inc. (REEF Proximity
Aggregator LLC and Parking Aggregator LLC).

21

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

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 second 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 thissection.

SVF2(Billions of U.S. dollars)

Total ((1) + (2) + (3) + (4) below)
Cumulative
number ofinvestments
280

Cumulative
investment
cost
52.2

Cumulative
investment
return31.5

Cumulative*1
loss(20.7)

Cumulative
number ofinvestments

Cumulative
investment
cost

Cumulative
investment
returnCumulative
*1
loss

(4)
(1)
275

(0)
52.2

(0)
31.5

(20.7)

Number ofinvestments
7
7

Investment
cost
0.2
2.3
2.5

Exit price
0.1
3.1
3.2

Cumulative
realized gain
*1
(loss)
(0.1)
0.8
0.7

Investment loss
recorded for the fiscal year
Jul – Sep
Apr – Sep
(2.1)
(2.4)

(Reference)

Effects of financial support to*2
WeWork*3
Effects of share exchanges
Net of the above effects(1) Exited investments

Partial exit
Full exit
Total(2) Investments before exit (investments held at the second quarter-end)*5

PublicPrivate
Total

Number ofinvestments
17
256
273

Realized loss
recorded for the fiscal year
Jul – Sep
Apr – Sep
(0.0)
(0.4)
(0.6)
(0.4)

*3

Investment
*6
cost
8.8
40.9
49.7

Fair value
3.6
24.9
28.5

Cumulative
unrealized
valuation loss
(5.2)
(16.0)(21.2)

Unrealized valuation loss
recorded for the fiscal year
Jul – Sep
Apr – Sep
(1.5)
(1.4)
(0.7)
(1.1)
(2.2)
(2.5)

Derivative
cost-

Fair value/
Cumulative
settlement derivative gain
price(loss)
0.0
0.0
(0.3)
(0.3)
(0.3)
(0.3)

Derivative loss
recorded for the fiscal year
Jul – Sep
Apr – Sep
(0.0)
0.0
(0.0)
(0.0)

*6

(3) Derivatives

Unsettled
SettledTotal(4) Interest and dividend income from investments
Interest anddividend
income0.1

Cumulative
income0.1

Interest and dividend income
recorded for the fiscal year
Jul – Sep
Apr – Sep
0.1
0.1

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. WeWork senior secured notes (i) purchased by SVF2 in accordance with an agreement between the Company and WeWork in
October 2019 (redeemed by WeWork in the first quarter), the convertible bonds (ii and iii) and notes with a face value of $0.30
billion (iv) held by SVF2 in accordance with an agreement among WeWork, its principal bondholders, SVF2, and others to support
the restructuring of WeWork’s debt, are deducted from the investment count.
3. For investments in which share exchanges occurred, the acquisition costs of new investments and disposal prices (sale prices) ofinvestments initially held are deducted for the purpose of presenting the cumulative net investment performance. During the second
quarter, SVF2 exchanged a portion of its shares in XCOM Labs, Inc. for shares in Globalstar, Inc.
4. The classification of portfolio companies as public/private is based on their status as of the second quarter-end.
5. Includes Zhangmen Education Inc. and Pear Therapeutics, Inc., which are traded in the over-the-counter market

22SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

6. 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 second quarter-end, LatAm Funds posted $5.9 billion in cumulative returns on $7.3 billion in investments,
with a gross loss of $1.4 billion since inception. Of this, investment gain for the period was $0.2 billion (¥33.4
billion).

Capital deployment
As of September 30, 2023
SVF1
(Billions of U.S. dollars)

Total

The Company

Third-party investors

98.6
87.2
34.2
53.0

33.1
29.9
9.2
20.7

65.5
57.3
25.0
32.3

11.4

3.2

8.2

Committed capital (A)5Drawn capital (B)Return of capital (non-recallable) (C)*1

Outstanding capital (D) = (B) – (C)Remaining committed capital (E) = (A) – (B)Notes:*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.
1. As of the second quarter-end, $16.5 billion of the $32.3 billion of outstanding capital from third-party investors was preferred equity
commitment.

SVF2(Billions of U.S. dollars)

Total
60.0
55.0
5.0

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 September 30, 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
10.8
34.2
12.4
2.6

Notes:*As of the second 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 second quarter-end, total committed capital for LatAm Funds was $7.6 billion, with drawn capital totaling$7.4 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/.

23

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

(c) SoftBank Segment
Segment income increased by 21.3% yoy, primarily due to increases in income for the Media & EC
business and the enterprise business, despite a decrease in income in the consumer business caused by afall in mobile service charges.
(Millions of yen)Six months ended September 30
2022
2023
Net sales
Segment income (income before income tax)
Depreciation and amortization
Gain (loss) on investments
Finance cost
Loss on equity method investments

ChangeChange %2,852,231
424,897(369,872)(3,450)(31,079)(21,948)

2,934,041
515,232(362,898)
8,622(33,021)(12,139)

81,81090,335
6,974
12,072(1,942)
9,809

2.9%
21.3%
(1.9%)
6.2%
-

1,541
965

1,222
39,896(319)
38,931(20.7%)-

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 business activities of SoftBank Corp. mainly in Japan, such as the provision of mobile
services and sale of mobile devices, as well as the 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 domains beyond telecommunications through internet services, such as Yahoo!
JAPAN and LINE, and the development of businesses that utilize advanced technologies including AI, IoT, and
FinTech, the latter encompassing the cashless payment service PayPay.
FINANCIAL RESULTS
Segment income was ¥515,232 million, an increase of ¥90,335 million (21.3%) year on year. This was mainly due
to increases in income in the Media & EC business and the enterprise business, despite a decrease in income in the
consumer business. The increase also reflected an improvement in gain on investments related to portfolio
companies invested to strengthen solution services, along with a contribution of ¥20,237 million dilution gain fromchanges in equity interest recorded (under other gain in the above table) primarily for Webtoon Entertainment Inc.,an equity method associate. PayPay Corporation and PayPay Card Corporation saw a reduction in losses mainly
due to increases in sales from the expansion of gross merchandise volume and interest income from the expansionof the revolving balance.
Income in the consumer business decreased mainly due to a fall in mobile service charges. In the Media & EC
business, the increase in income was due to the optimization of e-commerce services costs, further selection andfocus on businesses, and the recognition of a gain of ¥10,459 million on the sale of AI-related business at LINE
Corporation, among other factors. In the enterprise business, income increased due to higher sales of cloud services
and other products, driven by the accelerated digitalization of enterprises.

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

GROUP REORGANIZATION PRIMARILY AMONG Z HOLDINGS AND ITS CORE WHOLLY OWNEDSUBSIDIARIES, LINE AND YAHOO JAPANOn October 1, 2023, Z Holdings Corporation completed the scheduled group reorganization procedures, including
the merger primarily among the company and its core wholly owned subsidiaries, LINE Corporation and Yahoo
Japan Corporation, as well as changing its trade name to LY Corporation. The revised organizational structure, witha further emphasis on products, is expected to accelerate synergy expansion through business integration.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

25

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

(d) Arm Segment
1. Arm’s business remains robust. On a quarterly basis, the second quarter’s net sales were the highest inArm’s history.
◆ Net sales for the period increased by 5.3% yoy (U.S. dollar-based) driven by license and other revenue.
In yen terms, net sales increased by 12.0% due to the weaker yen exchange rate used for translation in
the preparation of the Company’s consolidated financial statements.
- Royalty revenue decreased by 14.5% yoy (U.S. dollar-based) as weak sales of chips for smartphones andother consumer electronic devices were partially offset by strong growth in automotive and infrastructure
equipment.
- License and other revenue increased by 44.8% yoy (U.S. dollar-based) with Arm signing major deals withcompanies developing chips for future smartphone, automotive, consumer electronic devices, and AI
applications. On a quarterly basis, revenue increased by over 100% yoy.
◆ Segment income decreased with strong net sales offset by an increase in expenses related to stockcompensation schemes combined with an increase in headcount to enhance R&D capability.
2. Arm was listed on the Nasdaq Global Select Market on September 14, 2023.
(Millions of yen)Six months ended September 30
2022
2023
Net sales
Segment income (income before income tax)

183,705
35,631*1

205,797(8,439)ChangeChange %22,092(44,070)

12.0%
-

Note:
1. Segment income included amortization expenses of ¥32,149 million for the period and ¥30,354 million for the same period of theprevious 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.
Arm will continue to increase investments in R&D in order to build the future of computing. Arm is creating
CPUs and related technologies, such as graphics processors, AI accelerators, and integrated platforms, that will
enable its customers to develop the next generation of computing devices.

26

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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)
Six months ended September 30
2022
2023
Royalty revenue
License and other revenue
Total net sales

Change Change %

916
459

783
664

(133)
205

(14.5%)
44.8%

1,375

1,447

72

5.3%

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 for the period increased by $72 million (5.3%) year on year. Record quarterly revenue was achieved in thesecond quarter, driven by strong license and other revenue. This was, however, partially offset by royalty revenue,
which was impacted by industry growth which, although recovering, remains weak.
Royalty revenue
Royalty revenue decreased by $133 million (14.5%) year on year. Royalty revenues were impacted by a decline in
the sales of smartphones and other consumer electronic devices, partially offset by strong growth in chips for the
automotive market and infrastructure equipment. Industry analysts are indicating that the semiconductor industry is
showing signs of recovery. Longer-term trends remain, such as more products and services requiring increasing
amounts of embedded intelligence, and so the semiconductor industry is expected to grow over the medium- tolong-term. As market conditions improve, Arm expects its royalty revenue will also return to growth.
License and other revenue
License and other revenue increased by $205 million (44.8%) year on year. Strong demand for Arm’s technology
continued as its licensees look to develop new products through the industry cycle. As a result, Arm signed multiple
high value deals with leading companies who intend to build chips for smartphones, PCs and other consumer
electronic devices, as well as automotive, embedded, and AI applications.
Segment income
Segment loss was ¥8,439 million, deteriorating by ¥44,070 million year on year. This was mainly due to an increasein expenses related to stock compensation schemes as well as an increase in the number of employees, mainly
technology-related personnel, as Arm rapidly increases its R&D capability.
OPERATIONS
6Royalty units(Billion)
Six-month period ended September 30
2022
2023
Royalty units as reported by Arm’s licensees

14.8

13.9

Change Change %(0.9)(6.1%)

Arm’s licensees reported shipments of 13.9 billion Arm-based chips for the six months from January 1 to June 30,
2023, a decrease of 6.1% year on year, which largely reflects the approximately 10% decline in smartphones sold in
the first six months of this year compared with the same period one year ago.
27

7

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

TECHNOLOGY DEVELOPMENT
Arm and its licensees made the following technology-related announcements during the period. For details on 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.
· Arm announced in August 2023 a new technology family for licensing, the Arm Neoverse Compute Subsystems(CSS). These are pre-integrated and validated configurations of infrastructure products that will reduce
development costs and improve time-to-market for companies developing chips for servers and networking
equipment.

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

28

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

(2) Overview of Financial Position
1. Status of investment assets*1◆ Carrying amount of investments from SVF (FVTPL) increased by ¥592.7 billion from the previous*2fiscal year-end to ¥11,082.4 billion, reflecting the depreciation of the yen against the U.S. dollar, despitea decrease in the U.S. dollar balance.
- ¥216.8 billion increase at SVF1: The balance decreased by $2.07 billion due to a decrease in the fair1value of investments held at the second quarter-end and by $1.39 billion due to divestments.
1- ¥251.5 billion increase at SVF2: The balance increased by $1.92 billion due to new and follow-on
investments, despite decreases of $2.72 billion due to a decrease in the fair value of investments held at1
the second quarter-end and $0.41 billion due to divestments.
- ¥124.4 billion increase at LatAm Funds◆ Carrying amount of investment securities increased by ¥432.6 billion from the previous fiscal year*2
end to ¥8,139.1 billion, which included the following carrying amounts:- Alibaba shares of ¥4,604.7 billion (a decrease of ¥237.6 billion)- T-Mobile shares of ¥907.9 billion (an increase of ¥138.7 billion)- Deutsche Telekom shares of ¥707.8 billion (a decrease of ¥21.7 billion)- Bonds and other asset management products held by PayPay Bank of ¥432.4 billion (an increase of*3¥143.7 billion), Symbotic shares of ¥134.6 billion (an increase of ¥106.9 billion mainly due to an
additional purchase of $0.50 billion), and U.S. Treasury Bonds totaling ¥59.0 billion following a $0.40
billion (face value) purchase by SBG
2. Changes in liabilities associated with financing activities◆ Interest-bearing debt of SBG increased by ¥306.0 billion from the previous fiscal year-end.
- SBG issued domestic hybrid bonds and secured a hybrid loan to replace the USD-denominated NC6undated hybrid notes (which were recorded as equity) that it voluntarily redeemed in the second quarter.
◆ Interest-bearing debt of wholly owned subsidiaries conducting fund procurement increased by*2¥1,338.8 billion from the previous fiscal year-end.
- Raised $4.39 billion through the new conclusion of prepaid forward contracts using Alibaba shares.
◆ Interest-bearing debt of SVF decreased by ¥780.5 billion from the previous fiscal year-end.
- SVF1 and SVF2 repaid borrowings totaling $6.32 billion made through asset-backed finance.
3. Changes in equity◆ Total equity increased by ¥1,022.1 billion from the previous fiscal year-end.
- Disposal of Arm shares upon its IPO resulted in recording ¥674.4 billion in capital surplus (amountequivalent to gain on sale). Non-controlling interest in Arm at the second quarter-end was ¥170.8 billion.
- Other equity instruments decreased by ¥220.9 billion following the voluntary redemption of USDdenominated NC6 undated hybrid notes.
- Retained earnings decreased due to a ¥1,408.7 billion net loss attributable to owners of the parent.
- Exchange differences from the translation of foreign operations increased by ¥1,784.6 billion due to theweaker yen.
◆ Ratio of equity attributable to owners of the parent (equity ratio) was 21.2% at the second quarterend, 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 PayPay Corporation) or
investments that were transferred from the Company to the funds and continue to be accounted for using the equity method (and areincluded in “Investments accounted for using the equity method”) prior to and after such transfer.
2. Includes increases in the carrying amount due to a 12.0% depreciation of the yen against the U.S. dollar in the foreign currency
exchange rate used for translations at the quarter-end
3. Additionally, SVF2’s holdings in Symbotic Inc. (“Symbotic”) are included in “Investments from SVF (FVTPL)” and SB Northstar’s
holdings are included in “Other financial assets (current).”

Total assets
Total liabilities
Total equity

March 31, 2023
43,936,368
33,287,153

September 30, 2023
46,010,042
34,338,773

Change2,073,674
1,051,620(Millions of yen)
Change %4.7%
3.2%

10,649,215

11,671,269

1,022,054

9.6%

29

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

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

September 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

6,707,813
2,664,550
387,945447,731
169,519425,706
10,803,264
1,829,310
824,1075,601,576
2,460,450
333,525(217,340)
69,814
138,531 A
76,418
5,738
143,621
216,782
48,168(34,470)402,096 B
50,809669

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

879,331
11,082,392
6,327,303
3,897,823
857,266
8,139,078
1,313,674
2,336,439
234,495
172,401
35,206,778

148,891
592,670 C
216,776
251,518
124,376432,577 D
142,829 E
32,81923,672
16,162
1,856,892

Total assets

43,936,368

46,010,042

2,073,674

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 ¥196,383 million, due to a fall in Alibaba
share price and the impact of the yen’s depreciation, as well as thereclassification of those contracts, for which settlement became due within
one year, to current assets.
· 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.

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

Components
Non-current assets
B Goodwill

Main reasons for changes from the previous fiscal year-end

C Investments from SVF(FVTPL)· The carrying amount of investments at SVF1, SVF2, and LatAm Funds
increased due to a 12.0% depreciation of the yen against the U.S. dollar in theforeign currency exchange rate used for translations at the quarter-end.
· The carrying amount of investments at SVF1 increased by ¥216.8 billion. On
a U.S. dollar basis, the carrying amount decreased by a total of $3.46 billion,
reflecting a decrease of $2.07 billion due to a decrease in the fair value ofinvestments held at the second quarter-end and a decrease of $1.39 billion due
1
to divestments.
· The carrying amount of investments at SVF2 increased by ¥251.5 billion. On
a U.S. dollar basis, the carrying amount decreased by a total of $1.25 billion,
mainly reflecting decreases of $2.72 billion due to a decrease in the fair valueof investments held at the second quarter-end and $0.41 billion due to1
1
divestments, despite an increase of $1.92 billion due to new and follow-on
investments.
· The carrying amount of investments at LatAm Funds increased by ¥124.4
billion. On a U.S. dollar basis, the carrying amount increased by a total of$0.24 billion, reflecting increases of $0.24 billion in the fair value of portfolio*1
companies held at the second quarter-end and $0.03 billion due to new andfollow-on investments, which were partially offset by a decrease of $0.03
billion due to divestments.

Arm’s goodwill increased by ¥379,971 million due to a 12.0% depreciation of
the yen against the U.S. dollar in the foreign currency exchange rate used fortranslations at the quarter-end.

For details see “(b) SoftBank Vision Funds Segment” under “b. Results by
Segment” in “(1) Overview of Results of Operations.”

31

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

Components
D Investment securities

Main reasons for changes from the previous fiscal year-end· The carrying amount of Alibaba shares decreased by ¥237,616 million ($5.48
billion) due to a fall in the share price (balance at the second quarter-end:¥4,604,689 million ($30.78 billion)).
· The carrying amount of T-Mobile shares increased by ¥138,672 million ($0.31
billion) (balance at the second quarter-end: ¥907,878 million ($6.07 billion)),despite a fall in the share price. This reflected the receipt of 3.6 million sharesof T-Mobile (balance at the second quarter-end: ¥74,711 million) upon
vesting contingent value rights received in June 2020 in relation to thedisposal of T-Mobile shares.
· The carrying amount of Deutsche Telekom shares decreased by ¥21,674*2
million ($0.73 billion ), due to a fall in the share price (balance at the second
quarter-end: ¥707,809 million ($4.73 billion)).
The carrying amount of Alibaba shares, T-Mobile shares, and Deutsche
Telekom shares as of the second quarter-end also included the increase caused
by a 12.0% depreciation of the yen against the U.S. dollar in the foreign
currency exchange rate used for translations.
· The carrying amount of bonds and other asset management products held by
PayPay Bank Corporation increased by ¥143,660 million (balance at thesecond quarter-end: ¥432,443 million), the carrying amount of Symbotic
shares increased by ¥106,866 million (balance at the second quarter-end:¥134,589 million) mainly due to a $0.50 billion additional purchase, and SBG
purchased U.S. Treasury Bonds with a face value totaling $0.40 billion(balance at the second quarter-end: ¥58,966 million).

E Derivative financial assets· Derivative financial assets related to currency swap transactions, which areused to hedge foreign-exchange risk of foreign currency-denominated notes
issued by SBG, increased by ¥80,533 million due to the depreciation of the
yen against the target currencies compared with the previous fiscal year-end.
· Derivative financial assets related to prepaid forward contracts using Alibaba
shares increased by ¥25,431 million due to a fall in Alibaba share price andthe yen’s depreciation, while assets with a remaining term of one year or lesswere reclassified as current assets.
· The fair value of the contingent consideration related to T-Mobile shares
increased by ¥13,730 million (balance at the second quarter-end: ¥847,500
million) due to the yen’s depreciation more than offsetting a $0.58 billion
negative impact of the lower share price.

Notes:
1. Includes the impact from the stronger local currencies against the U.S. dollar
2. Includes the impact from the weaker euro against the U.S. dollar as the shares are held by a U.S. subsidiary32

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

Reference: Cash and cash equivalents by entity
Consolidated cash and cash equivalents decreased by ¥217.3 billion to ¥6,707.8 billion from the previous fiscal
year-end. Of this, cash and cash equivalents of SBG and wholly owned subsidiaries conducting fund procurement,
etc. decreased by ¥107.7 billion to ¥3,908.4 billion. For details, see “(3) Overview of Cash Flows.”(Millions of yen)March 31, 2023

September 30, 2023

Change4,016,085
3,454,474

3,908,360
2,861,434(107,725)(593,040)

543,380
18,231

19,8301,027,096(523,550)
1,008,865

72,15936,9302,818
97,546

48,122
22,411
3,406
48,243(24,037)(14,519)588(49,303)

280,768
89,821

468,718
176,110

187,950
86,289857,430
298,277
532,871
640,448637,315
170,853558,346
665,929(220,115)(127,424)
25,47525,481

6,925,153

6,707,813(217,340)

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.
*1

Z Holdings Corporation

PayPay Corporation, PayPay Bank
*2
Corporation, PayPay Card Corporation*1
Yahoo Japan Corporation
OthersOthers
Total

Notes:
1. As of October 1, 2023, Z Holdings Corporation completed the group reorganization including the merger primarily involving thethree companies: the company itself, LINE Corporation, and Yahoo Japan Corporation, and changed its trade name to LY
Corporation.
2. Cash and cash equivalents of PayPay Bank Corporation at the second quarter-end were ¥258,630 million.

33

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

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

September 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

5,751,350
161,152
1,552,052
2,343,456
90,810271,040
192,669
62,251
614,779
11,039,559
14,817,780
663,444
5,022,811
426,493
44,125
169,349
1,849,468
305,744
23,299,214

622,303(22,953)
79,792(73,416)
8,198
90,849(174,698)(10,099)(61,141)
458,835
468,633
10,552
523,442(472,858)(14,420)
5,722
20,91150,803592,785

Total liabilities

33,287,153

34,338,773

1,051,620

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 Other financial liabilities
Allowance related to credit support provided by SVF2 for a letter of credit
facility to WeWork from certain financial institutions (allowance forfinancial guarantee contract losses) increased by ¥57,509 million.
B Income taxes payableNon-current liabilities
C Third-party interests in SVF

D Derivative financial liabilities

SBG paid income taxes during the first quarter. This payment was accruedin the previous fiscal year based on taxable income, including gains on thesale 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.
The carrying amount increased due to a 12.0% depreciation of the yen
against the U.S. dollar in the foreign currency exchange rate used fortranslations at the quarter-end. For details, see “(2) Third-party interests in
SVF” under “3. SoftBank Vision Funds business” in “(6) Notes toCondensed Interim Consolidated Financial Statements” in “2. Condensed
Interim Consolidated Financial Statements and Primary Notes.”
Derivative financial liabilities related to prepaid forward contracts using
Alibaba shares decreased by ¥408,991 million mainly due to a fall in its
share price.

34

A
B

C
D

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

Reference: Interest-bearing debt and lease liabilities (current and non-current)
March 31, 2023 September 30, 2023
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*2

PayPay Corporation, PayPay Bank
*3
Corporation, PayPay Card Corporation*2
Yahoo Japan Corporation
Other
OthersOther interest-bearing debt
Lease liabilities
Total(Millions of yen)
Change12,635,554
6,306,590
381,851
5,753,022
10,717161,000

14,279,682
6,611,881
459,947
5,958,396
10,038
183,500

1,644,128
305,291
78,096 A
205,374 B(679)
22,5006,328,964
2,065,361

7,667,780
2,239,479

1,338,816
174,118

4,263,603-

5,428,301
21
21

1,164,698
21
21552,681552,681770,004
770,004
14,873
14,873542,213542,213
16,184
16,184(552,681)(552,681) E(227,791)(227,791) E
1,311
1,311

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

4,415,566
3,020,625
688,404
475,536
231,001
1,031,846
532,711499,135

265,754(60,253)
109,720(14,713)231,000(32,611)47,241(79,852)

396,075
111,386
412,961

365,981
110,090
402,497(30,094)(1,296)(10,464)

130,014
77,374

162,093
67,57432,079(9,800)20,315,191

21,393,726

1,078,535

Notes:
1. The interest-bearing debt of wholly owned subsidiaries engaged in fund procurement is non-recourse to SBG.
2. As of October 1, 2023, Z Holdings Corporation completed the group reorganization including the merger primarily involving thethree companies: the company itself, LINE Corporation, and Yahoo Japan Corporation, and changed its trade name to LY
Corporation.
3. Deposits for banking business of PayPay Bank Corporation are not included in interest-bearing debt.

35

C
D

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 a 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.
· Domestic hybrid bonds with a face value of ¥15.4 billion were early redeemed in thesecond quarter.
· Foreign currency-denominated senior notes with face values of $0.10 billion and 0.07
billion euros, as well as domestic straight bonds with a face value of ¥2.1 billion anddomestic subordinated bonds with a face value of ¥20.9 billion, were repurchased fromthe market.
· The carrying amount of foreign currency-denominated straight bonds increased due to a
12.0% depreciation of the yen against the U.S. dollar in the foreign currency exchange
rate used for translations at the quarter-end.

Wholly owned subsidiaries conducting fund procurement
C Borrowings
Borrowings of $8.50 billion (balance at the second quarter-end: ¥1,126.6 billion) madethrough asset-backed finance using Arm shares were repaid prior to the IPO of Arm in
September 2023. Subsequently, after the IPO, borrowings of $8.50 billion were newly
made again through a margin loan using Arm shares (balance at the second quarter-end:¥1,259.8 billion). For details, see “(1) Components of interest-bearing debt” under “4.
Interest-bearing debt” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “2. Condensed Interim Consolidated Financial Statements and Primary
Notes.”
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 a 12.0% depreciation of the yen against the U.S.
dollar in the foreign currency exchange rate used for translations at the quarter-end.

SoftBank Vision Funds segment
SVF1 and SVF2
E Borrowings· SVF1 fully repaid $4.16 billion in borrowings made through asset-backed financing.
· SVF2 repaid $2.16 billion in borrowings made through asset-backed financing.

36SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

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

September 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
3,319,485
193,199491,609(23,895)
5,543,616

666,695 A(220,856) B(1,514,629) C
14,896
1,786,831 D

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

9,029,849
1,619,366

9,762,787
1,908,482

732,938
289,116

Total equity

10,649,215

11,671,269

1,022,054

E

Reasons for changes by primary component
Components
A Capital surplus

Main reasons for changes from the previous fiscal year-end

B Other equity
instruments

In the second quarter, the Company redeemed USD-denominated NC6 undated hybrid
notes ($2.00 billion) on the first voluntary call date. The notes were classified as equity
instruments under IFRSs.

C Retained earnings

Net loss attributable to owners of the parent of ¥1,408,727 million was recorded.

D Accumulated othercomprehensive
incomeExchange differences from the translation of foreign operations, which arose fromtranslating foreign subsidiaries and associates into yen, increased by ¥1,784,638
million mainly due to the weaker yen against the U.S. dollar in the foreign currency
exchange rate used for translations.

E Non-controllinginterests

At the second quarter-end following its IPO, the amount of non-controlling interests in
Arm was ¥170,771 million.

In the second quarter, ¥674,370 million ($4.65 billion) was recorded as the amountequivalent to the gain on the sale of Arm shares upon IPO. For details of the transaction,
see “INTRA-GROUP TRANSACTION OF ARM SHARES AND IPO OF ARM”
under “(1) Overview of Results of Operations.”

37

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

(3) Overview of Cash Flows
1. Cash flows from operating activities◆ Income taxes paid: ¥506.2 billion
2. Cash flows from investing activities: ¥767.4 billion cash outflow (net)◆ Payments of ¥547.8 billion were made for the acquisition of investments, mainly due to the expansionof strategic investments by SBG and its wholly owned subsidiaries, as well as increase in investments
in bonds and other asset management products by SBG and PayPay Bank.
◆ Monetization and investments continued at SVF- Payments for acquisition of investments by SVF: ¥187.3 billion- Proceeds from sales of investments by SVF: ¥279.3 billion◆ Proceeds from loss of control over subsidiaries of ¥96.3 billion were recorded mainly as a result of
selling 85% of the shares of SB Energy, formerly a wholly owned subsidiary of the Company.
◆ Outlays of ¥361.0 billion for the purchase of property, plant and equipment and intangible assets due
to capital expenditure mainly at SoftBank
3. Cash flows from financing activities: ¥12.7 billion cash outflow (net)◆ The Company received proceeds from the disposal of Arm shares and conducted financing throughprepaid forward contracts using Alibaba shares, while repaying borrowings made by SVF throughasset-backed finance- Proceeds from interest-bearing debt: ¥3,783.7 billion· Main proceeds at SBG: ¥537.7 billion(from issuance of domestic hybrid bonds with a face value of ¥222.0 billion, short-term borrowings of¥262.6 billion, and a hybrid loan of ¥53.1 billion)· Proceeds at wholly owned subsidiaries conducting fund procurement: ¥1,841.9 billion($8.50 billion through margin loan using listed Arm shares, $4.39 billion through prepaid forward
contracts using Alibaba shares)- Repayment of interest-bearing debt: ¥4,023.3 billion· Main outlays at SBG (redemption of bonds and repayment of short-term borrowings): ¥416.5 billion· Outlays at wholly owned subsidiaries conducting fund procurement: ¥1,236.2 billion(for repayment of asset-backed finance using Arm shares of $8.50 billion)· Outlays at SVF: ¥918.0 billion(for repayment of borrowings totaling $6.32 billion made through asset-backed finance at SVF1 and
SVF2)- Distributions and repayments to third-party investors at SVF: ¥240.0 billion- Proceeds from the partial sales of shares of subsidiaries to non-controlling interests: ¥745.1 billion· Proceeds of $5.12 billion from the disposal of Arm shares at its IPO- Payment for redemption of other equity instruments: ¥277.8 billion· Redemption of USD-denominated NC6 undated hybrid notes of $2.00 billion
4. Balance of cash and cash equivalents at the second quarter-end and its changes◆ The balance of cash and cash equivalents stood at ¥6,707.8 billion at the second quarter-end, adecrease of ¥217.3 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 ¥473.9 billion reflecting the weaker yen.

38

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

(Millions of yen)Six months ended September 30
2022
2023
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 (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginningof the period
Cash and cash equivalents at the end of the period

Change555,520271,294(578,328)

88,767(767,376)(12,667)(466,753)(1,038,670)
565,661

468,675
717,161

473,936(217,340)

5,261(934,501)

5,169,001
5,886,162

6,925,153
6,707,813

1,756,152
821,651(a) Cash Flows from Operating Activities
Cash flows from operating activities resulted in a net inflow of ¥88,767 million. The decrease in net inflow of¥466,753 million from the same period of the previous fiscal year was mainly due to an increase in income taxes
paid from ¥254,761 million to ¥506,154 million.
The increase in the amount of income taxes paid was mainly due to the payment of ¥238,221 million in income
taxes by SBG. This was primarily due to the payment in the first quarter of income taxes on taxable income for theprevious fiscal year arising in conjunction with the physical settlement of the prepaid forward contracts using
Alibaba shares.
(b) Cash Flows from Investing Activities
Primary components
Components
Payments for acquisition of
investments¥(547,838) million

Primary details· SBG and its wholly owned subsidiaries acquired mainly strategic
investments for ¥248,014 million.
· SBG acquired U.S. Treasury Bonds with a face value totaling $0.40 billion.
· PayPay Bank Corporation acquired bonds and other asset management
products for ¥185,812 million.

Payments for acquisition of
investments by SVF¥(187,324) million

SVF invested $1.33 billion in total.

Proceeds from sales of investments SVF sold investments for a total of $1.97 billion.
by SVF¥279,288 million
Proceeds from loss of control oversubsidiaries¥96,333 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¥(361,042) million

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

39

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

(c) Cash Flows from Financing Activities
Primary components
Components
Proceeds in short-term interestbearing debt, net*1¥286,684 million(Proceeds and payments for interest-

Primary details· Short-term borrowings and commercial paper increased by ¥344,916
million (net) at SoftBank Corp.
· Short-term borrowings and commercial paper decreased by ¥85,999
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)¥3,783,673 million
A Proceeds from borrowings · SBG made short-term borrowings of ¥262,646 million and procured*2¥53,100 million through a hybrid loan.
¥2,836,046 million· A wholly owned subsidiary conducting fund procurement raised a total of¥1,236,240 million ($8.50 billion) through a margin loan using listed Arm
shares.
· SoftBank Corp. procured ¥418,879 million mainly through thesecuritization of installment sales receivable and sale-and-leaseback
transactions. The company also issued commercial paper for ¥178,000
million.
· A subsidiary of LINE Corporation made short-term borrowings of¥339,700 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· SoftBank Corp. issued domestic straight bonds totaling ¥120,000 million.
¥342,000 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¥(4,023,265) million
A Repayment of borrowings*2¥(3,750,012) million· SBG repaid short-term borrowings of ¥235,840 million.
· A wholly owned subsidiary conducting fund procurement repaid
borrowings of ¥1,236,240 million ($8.50 billion) made through assetbacked finance using Arm shares.
· SVF1 and SVF2 repaid ¥604,823 million ($4.16 billion) and ¥313,158
million ($2.16 billion), respectively, in borrowings made through assetbacked finance.
· SoftBank Corp. repaid ¥702,515 million in borrowings made mainly
through the securitization of installment sales receivable and sale-andleaseback transactions. It also redeemed ¥71,000 million in commercial
paper.
· A subsidiary of LINE Corporation repaid short-term borrowings of¥328,800 million made in association with an increase in demand for
personal unsecured loan services.

40

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

Components
B Redemption of corporate
bonds¥(270,708) million

Primary details
SBG repurchased foreign currency-denominated senior notes of $0.10
billion and 0.07 billion euros, domestic straight bonds of ¥2,100 million,
and domestic subordinated bonds of ¥20,900 million and redeemed foreign
currency-denominated senior notes of $0.16 billion and 0.63 billion euros
and domestic straight bonds of ¥19,500 million upon maturity, and early
redeemed domestic hybrid bonds of ¥15,400 million.
· SoftBank Corp. redeemed domestic straight bonds of ¥10,000 million uponmaturity.
· Z Holdings Corporation redeemed domestic straight bonds of ¥80,000
million upon maturity.
All of the above amounts are face values.

Distribution/repayment from
SVF to third-party investors¥(239,971) million

SVF1 made distributions to third-party investors.

Proceeds from the partial sales ofshares of subsidiaries to noncontrolling interests¥745,082 million

The Company received the proceeds of $5.12 billion from the disposal of
Arm shares at its IPO.

Redemption of other equity
instruments¥(277,760) million

The Company redeemed USD-denominated NC6 undated hybrid notes witha face value of $2.00 billion. These notes were classified as equity
instruments under IFRSs. The effects arising from forward exchange
contracts are recorded in “Other” under cash flows from financing activities.

Cash dividends paid¥(32,144) million

SBG paid dividends.

Cash dividends paid to
non-controlling interests¥(144,092) 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 ¥972,402 million and outlays of ¥844,323 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.

41

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

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

4
5
6

7

Includes share exchanges and disposals as a result of restructuring of portfolio companies
Interest expenses of SBG include interest expenses of its wholly owned subsidiaries conducting fund procurement.
Until Alibaba was excluded from the associates of the Company in the second quarter of the previous fiscal year, theCompany had applied the equity method to Alibaba’s consolidated financial statements for the reporting periods staggered by
the previous three months because it was impracticable to align the reporting periods with Alibaba due to various factors, suchas contracts with Alibaba. Necessary adjustments were made to reflect significant transactions and events announced by
Alibaba during the staggered three-month period.
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 for six
months ended June 30, 2023, as reported by licensees in the royalty reports. Arm’s licensees report their actual shipments ofroyalty units one quarter in arrears, and therefore, the royalty unit analysis in this report is based on chips shipped for six
months ended June 30, 2023. In contrast, royalty revenues are accrued in the same quarter the chips are shipped based on
estimates. Royalty unit data for 2022 has been restated based on updated information received from its licensees in the firstquarter.
Counterpoint Technology Market Research, August 2023

42

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 Holdings plc or Arm Limited

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

WeWork

WeWork Inc.

MgmtCoMASA USA LLC

*

Note:
* A corporate reorganization was undertaken in August 2023, pursuant to which Arm Holdings Limited, a former subsidiary of Arm
Limited, acquired all the issued ordinary shares of Arm Limited, thereby making it a wholly-owned subsidiary. Subsequently, Arm
Holdings Limited changed its name to Arm Holdings plc and was listed on the Nasdaq Global Select Market through an initialpublic offering on September 14, 2023.

43

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

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

As ofMarch 31, 2023

As of
September 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

6,707,813
2,664,550
387,945447,731
169,519425,706
10,803,264

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

1,829,310
824,1075,601,576
2,460,450
333,525879,331
11,082,392
8,139,078
1,313,674
2,336,439
234,495
172,401
35,206,778
46,010,042

44

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

(Millions of yen)

As ofMarch 31, 2023

As of
September 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

5,751,350
161,152
1,552,052
2,343,456
90,810271,040
192,669
62,251
614,779
11,039,559

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

14,817,780
663,444
5,022,811
426,493
44,125
169,349
1,849,468
305,744
23,299,214
34,338,773

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
3,319,486
193,199491,609(23,895)
5,543,616
9,762,787

Non-controlling interests
Total equity
Total liabilities and equity

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

1,908,482
11,671,269
46,010,042

45

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

(2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated
Statement of Comprehensive Income
For the six-month period ended September 30
Condensed Interim Consolidated Statement of Profit or Loss
(Millions of yen)Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

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

3,182,477(1,461,148)
1,721,329

3,227,060(1,494,743)
1,732,317

3,524,655(413,530)(4,353,542)(20,711)(849,598)(583,282)
33,257(963,555)

Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Loss on equity method investments
Derivative gain (excluding gain (loss) on
investments)
Change in third-party interests in SVF
Other gain
Income before income tax
Income taxes
Net income(1,254,340)(314,217)(1,095,426)(54,870)(1,354,072)(295,184)(648,086)(34,620)

1,029,780

701,718

1,018,741
91,237
292,636(306,198)(13,562)(226,265)
180,322(907,425)(197,728)(1,105,153)(129,098)
115,536(13,562)(1,408,727)
303,574(1,105,153)(93.65)(95.14)(971.65)(974.03)

Net income attributable to
Owners of the parent
Non-controlling interests
Net income
Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)46

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

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)

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 income47

Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

(13,562)(1,105,153)

16,033

10,05916,033

10,059(936)(72,777)(1,220)(4,755)2,511,285

1,775,444

101,162(5,216)2,538,734

1,764,253

2,554,767
2,541,205

1,774,312
669,159

2,452,050
89,1552,541,205

377,178
291,981669,159

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

For the three-month period ended September 30
Condensed Interim Consolidated Statement of Profit or Loss
(Millions of yen)Three-month period ended
September 30, 2022

Three-month period ended
September 30, 2023

1,610,447(772,909)
837,538

1,669,553(769,311)
900,2423,413,432

276,167(1,434,412)
5,822
1,984,842(570,239)
29,474(264,598)(627,827)(200,078)(275,457)
103,500(705,992)(155,583)(183,444)(16,301)

1,289,030(147,911)

387,374
86,1693,585,091(502,332)
3,082,759(168,184)
10,540(731,231)(57,728)(788,959)

Net income attributable to
Owners of the parent
Non-controlling interests
Net income

3,033,602
49,157
3,082,759(931,111)
142,152(788,959)

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)

1,915.60
1,912.05(638.70)(639.90)

Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of
Holding Companies
Loss on investments at SoftBank Vision Funds
Gain on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Foreign exchange loss
Income (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 income48SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

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

Three-month period ended
September 30, 2023

3,082,759(788,959)

6,540

1,753

6,540

1,753

(432)
(38,728)(1,488)
1,052

418,301

522,600

115,917(1,660)495,058

520,504

501,598
3,584,357

522,257(266,702)

3,546,846
37,511
3,584,357(402,575)
135,873(266,702)

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

49SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the six-month period ended September 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

-

-

-

(129,098)--

2,581,148(129,098)
2,581,148

Total comprehensive income

-

-

-

(129,098)-

2,581,148

2,452,050---(36,229)--(36,229)---(19,723)--(19,723)

-

-

-

1,934

-

(1,934)

-

-

-

-

(953)

(518,276)-(519,229)

-

-

-

-

-

-

-

-

3,461

-

-

-

-

3,461

-

(5,845)

-

-

-

-

(5,845)-

21,223----

21,223

-

425
-

-

-

-

-

425
-

-

19,264-(54,971)(518,276)(1,934)(555,917)

238,772

2,653,838

496,876

4,331,635(924,686)

5,075,372

11,871,807

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
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 September 30, 2022

50

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

As of April 1, 2022

Noncontrollinginterests

Total equity

1,732,088

11,707,762

Comprehensive income
Net income
Other comprehensive income

115,536(13,562)(26,381)2,554,767

Total comprehensive income

89,1552,541,205(162,040)(198,269)-(19,723)---(519,229)(5,429)(5,429)17,125

20,586-(5,845)-

21,22323,166(46,263)

23,591(46,263)(173,441)(729,358)

1,647,802

13,519,609

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
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 September 30, 2022

51

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

For the six-month period ended September 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

-

-

-

(1,408,727)--

1,785,905(1,408,727)
1,785,905

Total comprehensive income

-

-

-

(1,408,727)-

1,785,905

377,178---(32,187)--(32,187)---(16,708)--(16,708)-(823)(220,856)(56,081)--(277,760)

-

-

-

(926)

-

926

-

-

823

-

-

14,896-

15,719

-

-

-

-

-

-

-

-

673,405

-

-

-

-

673,405

-

(91)

-

-

-

-

(91)

-

(6,618)

-

-

-

-

(6,618)

-

-

-

-

-

-

-

-

666,696(220,856)(105,902)

14,896926

355,760

238,772

3,319,486

193,199491,609(23,895)

5,543,616

9,762,787

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Redemption and cancellation ofother equity instruments
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 September 30, 2023

52

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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

303,574(1,105,153)(11,593)

1,774,312

Total comprehensive income

291,981669,159(145,267)(177,454)-(16,708)-(277,760)---

15,719(5,216)(5,216)

81,160754,565-(91)

63,384
3,074

56,766
3,074(2,865)352,895

1,908,482

11,671,269

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Redemption and cancellation ofother equity instruments
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 September 30, 2023

53

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 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
Increase in trade and other receivables
Increase in inventories(Decrease) increase in trade and other payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities

54

Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

(13,562)436,688(1,105,153)
421,554(3,589,869)

392,379

4,353,542
314,217
1,095,426
54,870(1,029,780)(1,018,741)(70,526)
306,198583,282
295,184
648,086
34,620(701,718)
226,265(213,579)
197,728

114,993

19,76449,806(238)

138,915(14,595)(131,796)

7,223(119,346)(31,535)(19,626)
35,927875,801
35,482(209,947)(254,761)
108,945555,520(119,623)(3,493)24,883(78,404)
614,165
144,548(231,216)(506,154)
67,424
88,767

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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
Payments for acquisition of investments by asset
management subsidiaries
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) provided by 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
Proceeds from the partial sales of shares of subsidiaries
to non-controlling interests
Redemption of other equity instruments
Distribution to owners of other equity instruments
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) 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

55

Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

(173,800)
521,036(336,731)
454,386(547,838)
84,929(187,324)
279,288-(76,877)-

96,333(41,541)(31,212)47,513

41,164(342,658)(361,042)(12,964)
68,99287,061(68,728)
75,594(71,663)271,294(767,376)

10,207
4,597,463(3,955,916)(140,144)
7,712

286,684
3,783,673(4,023,265)(115,010)-(347,747)(239,971)-

745,082(19,742)(523,083)(36,178)(162,307)(8,593)(578,328)(277,760)(16,708)(2)(32,144)(144,092)
20,846(12,667)

468,675

473,936

717,161
5,169,001
5,886,162(217,340)
6,925,153
6,707,813

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 six-month period ended September 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 September 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.
56

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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.”57SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 September 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 September 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.

58

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 six-month period ended September 30, 2022 andthe three-month period ended September 30, 2022 is presented 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 LINE Corporation and Yahoo Japan 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.

59

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

Note:
* Effective on October 1, 2023, the reorganization procedures involving Z Holdings Corporation (the surviving company) and its
core subsidiaries, primarily LINE Corporation, and Yahoo Japan Corporation have been completed. On the same date, Z
Holdings Corporation was renamed to LY Corporation, LINE Corporation to Z Intermediate Global Corporation, and Yahoo
Japan Corporation was dissolved.

(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.
In August 2023, Arm shares held by SVF1 were sold to a wholly-owned subsidiary of the Company classified
as the Investment Business of Holding Companies segment. The transaction price was established by reference
to the terms of a prior contractual arrangement between the parties. The details are described in “Notes 2” in“b. Segment income arising from the SoftBank Vision Funds business” in “(1) Income and loss arising fromthe SoftBank Vision Funds business” under “Note 3. SoftBank Vision Funds business.”
In addition, intersegment transaction prices other than the above are determined under the same generalbusiness conditions as applied for external customers.

60

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

For the six-month period ended September 30, 2022
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

2,850,178
2,053

183,705
-

Total

-

-

2,852,231

183,705

Segment income
Depreciation andamortization
Gain (loss) on
investments

3,262,289(3,350,654)

424,897

35,631(2,176)(349)(369,872)(43,910)

3,524,708(4,312,342)(3,450)202

Finance cost(240,639)(35,795)(31,079)(534)(1,100,143)

503

1,490

3,008

(23,879)-(21,948)423

1,041,501

620

1,541

480

Foreign exchange gain
(loss)
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

3,033,883
2,053

148,594
4,582(6,635)

3,182,477-

Total

3,035,936

153,176(6,635)

3,182,477

372,163(11,527)(68,000)

292,636(416,307)(20,381)-(436,688)(790,882)(17,463)(41,253)(849,598)(308,047)(8,357)2,187(314,217)(1,095,142)

(284)

-

(1,095,426)(45,404)307(9,773)(54,870)

1,044,142(14,362)-

1,029,780

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

61

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

For the six-month period ended September 30, 2023
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision*
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

2,932,294
1,747

205,797
-

Total

-

-

2,934,041

205,797

Segment income
Depreciation andamortization
Gain (loss) on
investments(543,252)(197,823)

515,232(8,439)(1,584)(1,050)(362,898)(45,630)(413,530)

181,136

8,622

405

Finance cost

(209,642)(52,532)(33,021)(679)(650,131)(649)(1,238)3,546(4,062)-(12,139)19

700,386

-

1,222

110

Foreign exchange gain
(loss)
Income (loss) on equity
method investments
Derivative gain
(excluding gain (loss) on
investments)

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

3,138,091
1,747

88,9697,493(9,240)3,227,060-

Total

3,139,838

96,462(9,240)3,227,060

Segment income
Depreciation andamortization
Gain (loss) on(234,282)

84,337(757,480)(907,425)(411,162)(10,392)-(421,554)(223,367)

18,713(758,901)(963,555)(295,874)(7,805)8,495(295,184)(648,472)

386-(648,086)(16,182)(18,251)(187)(34,620)

701,718--

701,718

investments
Finance cost
Foreign exchange gain
(loss)
Income (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.”

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

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

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,470,223
1,206

90,954
-

Total

-

-

1,471,429

90,9544,460,342(1,019,904)

202,683

5,785(1,101)(181)(185,716)(22,569)

3,413,475(1,378,497)(4,583)163(160,610)(20,394)(15,738)(262)(278,108)

427

1,294

1,350

115,903-(11,597)508

1,286,487

121

640

1,782

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,561,177
1,206

49,2702,281(3,487)

1,610,447-

Total

1,562,383

51,551(3,487)

1,610,447

Segment income
Depreciation andamortization
Gain (loss) on

3,648,906

7,748(71,563)

3,585,091(209,567)(6,269)-(215,836)

2,030,558

10,242(55,958)

1,984,842(197,004)(4,191)

1,117(200,078)(275,037)

(420)

-

(275,457)

104,814

4,014(5,328)103,500

1,289,030--

1,289,030

investments
Finance cost
Foreign exchange gain
(loss)
Income (loss) on equity
method investments
Derivative gain
(excluding gain (loss) on
investments)

63

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

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

Reportable segments
Investment Businessof Holding Companies

SoftBank Vision
Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,503,176
798

117,295
-

Total

-

-

1,503,974

117,295(148,712)(258,864)

260,245

1,069

(794)

(558)

(181,322)(23,417)

276,167

21,3636,405

319(112,386)(28,904)(16,881)(365)(184,024)

(574)

(997)

2,393

(2,481)-(4,540)42(148,389)

-

398

80

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment

1,620,471
798

49,082
3,478(4,276)

1,669,553-

Total

1,621,269

52,560(4,276)

1,669,553

Segment income
Depreciation andamortization
Gain (loss) on(146,262)(4,625)(580,344)(731,231)(206,091)(5,603)-(211,694)

304,254

17,233(586,085)(264,598)(158,536)(4,192)

7,145(155,583)(183,202)

(242)

-

(183,444)(6,979)(9,363)

41(16,301)(147,911)--(147,911)

investments
Finance cost
Foreign exchange gain
(loss)
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)

64SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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)Six-month period ended Six-month period ended
September 30, 2022
September 30, 2023
Gain (loss) on investments at SoftBank Vision Funds
Gain (loss) on investments at SVF1, SVF2, and
LatAm Funds*1,2

Realized gain on investments
Unrealized loss on valuation of investments*3

Change in valuation for the fiscal year
Reclassified to realized gain recorded in the*2,4past fiscal years
Interest and dividend income from investments
Derivative gain on investments*2,5

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*6

Other gain (loss)
Segment income arising from the SoftBank Vision
Funds business (income before income tax)

65

5,398

855,769(4,200,240)(633,520)(102,840)

(662)

759
36,365

20,812
4,427(55,645)(78,360)(4,316,203)
3,861

168,466
12,670(4,312,342)

181,136(30,983)(35,795)
620
1,018,741(44,688)(52,532)(226,265)

9,105(55,474)(3,350,654)(197,823)

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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. In August 2023, SVF1 sold Arm shares for $16.1 billion (the “Transaction Consideration”) to a wholly-owned subsidiary of
the Company (the “Transaction”). In relation to the Transaction, the proceeds of the sale will be paid in four installments,
with the first installment having been paid upon completion of the Transaction, with the remaining three installments to be
paid over a two-year period through August 2025. At the date of sale, “Realized gain on investments” was recorded as thediscounted present value of the Transaction Consideration ($15.1 billion) net of the investment cost ($8.2 billion). The
difference between the Transaction Consideration and the discounted present value of the Transaction Consideration isrecognized as income over the two years after the date of sale and recorded in “Realized gain on investments.” As a result of
the Transaction, for the six-month period ended September 30, 2023, ¥1,004,337 million of the realized gain, ¥189,817
million of the unrealized loss on valuation (reclassified to realized gain recorded in the past fiscal years), and ¥(76,902)
million of the effect of foreign exchange translation are included in “Gain (loss) on investments at SoftBank Vision Funds”
in the above-mentioned segment income. However, these are eliminated in consolidation due to inter-company transactions
relating to shares of a subsidiary.
3. For the six-month period ended September 30, 2023, ¥29,872 million of the unrealized gain (net) on valuation arising fromshares of the Company’s subsidiaries held by SVF1 and SVF2 (mainly PayPay Corporation) is included in “Gain (loss) on
investments at SoftBank Vision Funds” (in Change in valuation for the fiscal year under Unrealized loss on valuation of
investments) in the above-mentioned segment income. However, the unrealized gain on valuation is eliminated inconsolidation.
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 six-month period ended September 30, 2023, ¥4,568 million of the unrealized loss on valuation
arising from WeWork common shares held by SVF2 is included in “Gain (loss) on investments at SoftBank Vision
Funds” (in Change in valuation for the fiscal year under Unrealized 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.
4. 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 gain on investments” due to the realization for thesix-month period ended September 30, 2023.
5. 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.
6. For the six-month period ended September 30, 2023, the provision for allowance for financial guarantee contract losses
related to a credit facility for WeWork provided by financial institutions was recorded for ¥42,072 million considering thefinancial position of WeWork.

66

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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.”

67

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

4,470,717---

235,008(235,008)-(239,971)-(239,971)

534,128--

83,189151,819

4,999,882

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

68SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 September 30, 2023. There are no changes in interests attributable to Third-Party Investor in SVF2 for thesix-month period ended September 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 September 30, 2023

(Millions of yen)
Receivables from Third-Party
Investor in SVF2
384,870
5,866
46,582437,318(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 September 30, 2023

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

28,652(8,743)

8,743

-

3,020

-

-

22,929Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed interim
consolidated statement of comprehensive income.

69SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 Third1,385
Party Investor
Exchange differences on receivables
10,966
As of September 30, 2023
102,957
c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of September 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 the70SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 September 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 September 30, 2023, neither performance fees nor performance-linked
management fees were paid to SBGA.

71

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 of
September 30, 2023

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

1,071,229
522,501
1,308,451
1,146,120

336,730

1,702,889

97

160

5,129,047

5,751,350

4,164,682
6,257,455

5,092,377
5,999,814

3,926,873

3,725,412

137

177

14,349,147

14,817,780

Current
Short-term borrowings
Commercial paper*1,2Current portion of long-term borrowings
Current portion of corporate bonds
Current portion of financial liabilities relating to*3sale of shares by prepaid forward contracts
Current portion of installment payables
Total
Non-current*1,2Long-term borrowings
Corporate bonds
Financial liabilities relating to sale of shares by*3

prepaid forward contracts
Installment payables
Total
Notes:

1. On September 12, 2023, Kronos I (UK) Limited, a wholly-owned subsidiary of the Company, repaid all of the term facility
loan of $8.5 billion that was secured by 75.01% of Arm shares before listing held by a wholly-owned subsidiary of theCompany other than Kronos I (UK) Limited, all of Kronos I (UK) Limited’s assets except for certain assets specified in theagreement, and the equity interests of wholly-owned subsidiaries of the Company which were established for this facility
purpose as collateral. This resulted in the current portion of long-term borrowings decreased by ¥1,126,619 million.
On September 21, 2023, Kronos I (UK) Limited borrowed $8.5 billion as a margin loan using 769,029,000 shares of Arm
after listing held by a wholly-owned subsidiary of the Company other than Kronos I (UK) Limited and all of Kronos I (UK)
Limited’s assets except for certain assets specified in the agreement as collaterals. The margin loan is recorded for ¥1,259,771
million as long-term borrowings in the condensed interim consolidated statement of financial position as of September 30,
2023. The margin loan agreement includes an additional cash collateral provision and a mandatory prepayment clause, which
may be triggered under certain circumstances, such as a significant decrease in the fair value of pledged Arm shares.
The margin loan is nonrecourse debt, and therefore, SoftBank Group Corp. will not be responsible for the borrowings.
2. SVF1 had made borrowings collateralized in the listed shares, Arm shares, which is a subsidiary of the Company, and theother investments. For the six-month period ended September 30, 2023, SVF1 repaid all of its borrowing of $4.1 billion
before the maturity date and the collateral for the shares and the other investments was released. The borrowings wererecorded for ¥547,156 million as “Long-term borrowings” and ¥5,526 million as “Current portion of long-term borrowings”
respectively, and the listed shares pledged as collateral were recorded for ¥946,893 million as “Investments from SVF(FVTPL)” in the condensed interim consolidated statement of financial position as of March 31, 2023.

72

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

3. 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 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
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 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 using Alibaba shares elect cash settlement, Entities for fund procurement using Alibaba shares
will pay the cash equivalent to the fair value of the number of shares subject to the settlement, as determinedby reference to the market price of the shares.
Alibaba shares held by Entities for fund procurement 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 using Alibaba shares.
Entities for fund procurement 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 September 30, 2023, the Company set ¥4,598,542 million of Alibaba shares, which is recognized as“Investment securities” in the condensed interim consolidated statement of financial position, as collateral for¥1,278,714 million of current portion of financial liabilities relating to sale of shares by prepaid forward
contracts and ¥3,661,690 million of financial liabilities relating to sale of shares by prepaid forward contracts.

73

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 (decrease) increase in commercial paper
Total

Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

68,507(58,300)

159,684
127,000

10,207

286,684(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

Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

2,093,970
60,0002,836,046
342,000

2,443,493

605,627

4,597,463

3,783,673

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
Repayment for settlement of prepaid forward
contracts using shares
Total

74

Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

(3,751,029)(202,461)(3,750,012)(270,708)(2,426)(2,545)(3,955,916)(4,023,265)

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

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

As of
September 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

397,127-525,267

-

590

-

69

-

-

(805,039)

94,195(421,549)

833,770-

847,500--(55,056)-(53,409)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.

75

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

133.53149.58(2) Average rate for the quarter
For the six-month period ended September 30, 2022
(Yen)

USD
CNY

*

Three-month period ended
June 30, 2022

Three-month period ended
September 30, 2022

129.04
19.60

138.6820.19

For the six-month period ended September 30, 2023
(Yen)

USD

Three-month period ended
June 30, 2023

Three-month period ended
September 30, 2023

138.11145.44Note:* 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 six-month period ended September 30, 2023, since it is nolonger considered as a major currency used for translating financial statements of foreign operations.

76

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

7. Equity(1) Capital surplus
For the six-month period ended September 30, 2023
With the initial public offering of Arm shares on September 14, 2023, the Company sold a portion of Armshares (10.0% of the total number of outstanding shares) held by a wholly-owned subsidiary. Therefore, theCompany’s shareholding ratio in Arm was reduced to 90.0%.
As a result of the transaction, the amount of ¥674,370 million equivalent to the gain on sale of Arm shares on
a consolidation basis is recorded as “Changes in interests in subsidiaries” under “Capital surplus.”(2) 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. The amount of ¥823 million and ¥56,081 million reduced from “Capitalsurplus” and “Retained earnings,” respectively, as “Redemption and cancellation of other equity instruments”
in the condensed interim consolidated statement of changes in equity for the six-month period ended
September 30, 2023, represents the difference between the issue amount and the purchase amount, including
foreign exchange effects.
(3) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)

Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

Balance at the beginning of the period

76,164

6,948

Increase during the period
Decrease during the period

97,807(906)

0(2,668)

Balance at the end of the period

173,0654,280

77

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

(4) 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
September 30, 2023

43,201
142(71,598)

50,852
400(77,314)3,785,040

5,569,678

3,756,785

5,543,616

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.

78

SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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)Six-month period ended
September 30, 2022

Six-month period ended
September 30, 2023

4,838,251-

24,842-(54,226)(88,342)(58,856)

30,003(5,842)(796)(147,666)(1,170,459)
86,533
12,07875,585(364,545)(66,495)
1,060

3,524,655(413,530)

Gain relating to settlement of prepaid forward*1

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

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” includes the gain on settlement of prepaid
forward contracts using Alibaba shares upon completion of the settlement before Alibaba ceases to be an equity method
associate of the Company and the effect of the remeasurement of remaining Alibaba shares based on the share price as of thedate when 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 six-month period ended September 30, 2023, ¥237,616 million of unrealized
loss on valuation of investments was recognized related to the remaining Alibaba shares.
3. For the six-month period ended September 30, 2023, ¥78,500 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.”
79SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

9. Finance cost
The components of finance cost are as follows:(Millions of yen)Six-month period ended Six-month period ended
September 30, 2022
September 30, 2023
Interest expenses(314,217)(295,184)

10. Derivative gain (excluding gain (loss) on investments)
For the six-month period ended September 30, 2023, derivative gain of ¥641,989 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)Six-month period ended Six-month period ended
September 30, 2022
September 30, 2023
29,418112,808

Interest income
Gain relating to loss of control over subsidiaries
Dilution gain from changes in equity interest
Provision for allowance for financial guarantee*1*2contract losses
Loss on derecognition of unsecured notes issued by*3

WeWorkImpairment loss on equity method investments
Provision for loss relating to litigation
Other
Total

16,438117,471

84,574

20,237(18,081)(42,072)-(21,579)(23,611)(18,522)
21,021(4,568)(658)(1,317)

91,237

180,322

Notes:
1. For the six-month period ended September 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 equity method associate of theCompany after the transaction.
2. For the six-month period ended September 30, 2023, the provision for allowance for financial guarantee contract losses
related to a credit facility for WeWork provided by financial institutions was recorded for ¥42,072 million considering thefinancial position of WeWork.
3. For the six-month period ended September 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.

80SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 30, 2023

12. Supplemental information to the condensed interim consolidated statement of cash flows(1) Income taxes paid and income taxes refunded
For the six-month period ended September 30, 2023, payment of withholding income tax related to dividends
within the group companies of ¥102,949 million is included in “Income taxes paid.” In addition, refunded
withholding income tax related to dividends within the group companies of ¥56,629 million is included in“Income taxes refunded.”(2) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests
For the six-month period ended September 30, 2023
“Proceeds from the partial sales of shares of subsidiaries to non-controlling interests” is due to the sales ofArm shares.
(3) Redemption of other equity instruments
For the six-month period ended September 30, 2023
“Redemption of other equity instruments” is due to the full redemption of USD-denominated Undated
Subordinated Non-Call 6 years Resettable Notes.

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.

81SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 six-month
period ended
September 30, 2023
Amount oftransaction

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

The premium received
on SVF2 LLC’s
receivables

5,866($41 million)

As of
September 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)

437,318($2,924 million)

*3

-

-

437,318($2,924 million)

Notes:
1. Restrictions on rights of MgmtCo to receive distributions
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 the82SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 September 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 enforcementof the collateral and 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.

83

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

(2) Transactions between LatAm Funds and related parties

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(Millions of yen)
For the six-month
As ofperiod ended
September 30, 2023
September 30, 2023
Amount ofBalance attransaction
period end

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

*3,4

-

102,957($688 million)

*3

1,385
($10 million)

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

22,929($153 million)

80,028($535 million)

Notes:
1. Restrictions on rights of MgmtCo to receive distributions
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, from84SoftBank Group Corp. Consolidated Financial Report
For the Six-Month Period Ended September 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 September 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 enforcementof the collateral and 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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