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 3 of this report.

SoftBank Group Corp.
Consolidated Financial Report
For the Three-month Period Ended June 30, 2020 (IFRS)Tokyo, August 11, 2020

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)

Incomebefore income tax

Net sales
Amount%Amount%Three-month period ended
June 30, 2020

¥1,450,005(2.0)¥833,047

Three-month period ended
June 30, 2019

¥1,480,292-¥1,695,008

Net income
attributable toowners of the parent

Net income
Amount%Amount(50.9) ¥1,316,421

11.8¥1,255,712

11.9 ¥1,136,007

52.0¥1,177,479

258.9¥1,121,719

257.6¥747,172

139.8-

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)Three-month period ended
June 30, 2020

¥615.95¥589.96

Three-month period ended
June 30, 2019¥534.89¥532.09%

Total
comprehensive
incomeAmount%Notes:
1. Net sales and income before income tax are presented based on the amounts from continuing operations only. Year-on-year
percentage changes in net sales and income before income tax for the three-month period ended June 30, 2019 are not presented
because corresponding amounts for the thee-month period ended June 30, 2019 are revised and presented respectively.
Please refer to page 55 “Note 3. Discontinued operations” in “(6) Notes to Condensed Interim Consolidated Financial Statements”
under “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
2. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the previous fiscal year.

(2) Financial Position2.

Total assets

Total equity

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

As of June 30, 2020

¥33,563,348¥7,576,780¥6,532,437

19.5

As of March 31, 2020

¥37,257,292¥7,372,917¥5,913,613

15.9

Dividends
Dividends per shareFirst quarter
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
Fiscal year ending
March 31, 2021
(Forecasted)

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

-

-

-

-

Note:*The Company decides the end of the year and the end of the second quarter as the record dates for dividends under the articles ofincorporation, however the forecasted dividend amounts for the fiscal year ending March 31, 2021 are not determined at the present
moment.

* Notes(1) Significant changes in scope of consolidation (changes in scope of consolidation of specified subsidiaries): Yes
Newly consolidated: None
Excluded from consolidation: Three entities: Sprint Corporation, Sprint Communications, Inc., Starburst I, Inc.
Notes:
1. Please refer to page 37 “(1) Significant Changes in Scope of Consolidation for the Three-month Period Ended June 30,
2020” under “2. Notes to Summary Information” for details.
2. 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 thecapital and net 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 thespecified 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: Yes
Please refer to page 37 “(2) Changes in Accounting Estimates” under “2. Notes to Summary Information” for details.
(3) Number of shares issued (common stock)[1] Number of shares issued (including treasury stock):

As of June 30, 2020:
2,089,814,330 shares
As of March 31, 2020:
2,089,814,330 shares[2] Number of shares of treasury stock:
As of June 30, 2020:
143,318,747 shares
As of March 31, 2020:
21,818,471 shares[3] Number of average shares outstanding during three-month period (April-June):
As of June 30, 2020:
2,026,277,715 shares
As of June 30, 2019:
2,083,065,885 shares
Note:
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Number of shares issued,” “Numberof shares of treasury stock,” and “Number of average shares outstanding during three-month period” are calculated assumingthat the share split was conducted at the beginning of the previous fiscal year.

* 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 in time and assumptions which are deemed to be reasonable. However, actual results may be different due to various
factors.
On August 11, 2020 (JST), the Company will hold an earnings results briefing for the media, institutional investors, andfinancial institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese andEnglish at https://group.softbank/en/corp/irinfo/presentations/. The Data Sheet will also be posted on the website on thesame day at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(Appendix)

Contents
1. Results of Operations .......................................................................................................................................... P. 4
(1) Overview of Results of Operations ............................................................................................................... P. 4
a. Consolidated Results of Operations........................................................................................................ P. 10
b. Results by Segment ................................................................................................................................ P. 13(a) Investment Business of Holding Companies Segment ..................................................................... P. 14(b) SoftBank Vision Fund and Other SBIA-Managed Funds Segment ................................................. P. 17(c) SoftBank Segment ............................................................................................................................ P. 22(d) Arm Segment ................................................................................................................................... P. 23(e) Brightstar Segment ........................................................................................................................... P. 26(f) Other ................................................................................................................................................. P. 26(2) Overview of Financial Position ................................................................................................................... P. 27(3) Overview of Cash Flows ............................................................................................................................. P. 34(4) Forecasts ...................................................................................................................................................... P. 36
2. Notes to Summary Information ........................................................................................................................ P. 37(1) Significant Changes in Scope of Consolidation for the Three-month Period Ended June 30, 2020 .......... P. 37(2) Changes in Accounting Estimates .............................................................................................................. P. 37
3. Condensed Interim Consolidated Financial Statements and Primary Notes ..................................................... P. 38(1) Condensed Interim Consolidated Statement of Financial Position............................................................. P. 39(2) Condensed Interim Consolidated Statement of Income
and Condensed Interim Consolidated Statement of Comprehensive Income ............................................ P. 41(3) Condensed Interim Consolidated Statement of Changes in Equity ............................................................ P. 43(4) Condensed Interim Consolidated Statement of Cash Flows ....................................................................... P. 47(5) Significant Doubt about Going Concern Assumption ................................................................................ P. 49(6) Notes to Condensed Interim Consolidated Financial Statements ............................................................... P. 49

1SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

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 name or abbreviations indicates the respective company and its subsidiaries, if any.
SoftBank Vision Fund
SoftBank Vision Fund L.P. and its alternative investment vehicles
SBIA
SB Investment Advisers (UK) Limited
SprintSprint Corporation
T-Mobile
T-Mobile US, Inc. after merging with SprintArm
Arm Limited
Alibaba
Alibaba Group Holding Limited
The first quarter
Three-month period ended June 30, 2020
The first quarter-end
June 30, 2020
The fiscal year
Fiscal year ending March 31, 2021
The previous fiscal year
Fiscal year ended March 31, 2020
The previous fiscal year-end
March 31, 2020

Exchange Rates Used for Translations
Average rate for the quarter
Fiscal year ended March 31, 2020

USD / JPY

Fiscal year ending March 31, 2021

Q1

Q2

Q3

Q4

Q1

¥110.00¥107.70¥108.98¥109.22¥107.74

March 31, 2020

June 30, 2020

¥108.83¥107.74

Rate at the end of the period
USD / JPY

2

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Changes in presentation of Consolidated Statement of Income and reportable segments
SoftBank Group Corp. (“SBG”) is a strategic investment holding company managing a portfolio of investments,
made either directly (including investments through subsidiaries) or through investment funds (such as SoftBank
Vision Fund), in a wide range of companies. On April 1, 2020, Sprint ceased to be a subsidiary of the Company
following the completion of the merger between Sprint and T-Mobile US, Inc. Given that investment activities havetaken on greater importance in the Company’s overall consolidated financial results, the Company has revised thepresentation of the Consolidated Statement of Income from the first quarter.
Specifically, “operating income” will no longer be presented in the Consolidated Statement of Income. Instead,“gain (loss) on investments” will be used in order to show investment performance in the consolidated financial
results. This change in presentation was made because the previously used “operating income” excluded gain andloss on investments, other than gain and loss on investments included in “operating income from SoftBank Vision
Fund and other SBIA-managed funds.” The Company determined “operating income” was not useful in appropriately
presenting the consolidated financial results of a strategic investment holding company. The newly established “gain(loss) on investments” includes (1) realized gain and loss on sales of investment securities (financial assets at FVTPL)
and investments accounted for using the equity method; (2) unrealized gain and loss on valuation of financial assets
at FVTPL; (3) dividend income from investments; and (4) derivative gain and loss related to financial assets at FVTPL
and other investments. Derivative gain and loss not included in the above “gain (loss) on investments” is shown as“derivative gain (loss) (excluding gain (loss) on investments).” Income on equity method investments, which recognizes the Company’s equity interest in the net income and loss of applicable portfolio companies, is presented as“income on equity method investments” as before. The Consolidated Statement of Income for the same period of theprevious fiscal year has been restated and presented in the same manner.
In light of the greater importance of investment activities to the Company’s overall consolidated financial results,
as mentioned above, the Company has also changed its segment classifications from the first quarter. There are now
five reportable segments: Investment Business of Holding Companies, SoftBank Vision Fund and Other SBIA-Managed Funds, SoftBank, Arm, and Brightstar. See “OVERVIEW” under “(a) Investment Business of Holding Companies Segment” in “b. Results by Segment” on page 14 for the overview of the newly established Investment Businessof Holding Companies segment. In line with ending the presentation of “operating income” in the Consolidated
Statement of Income, the Company has revised segment income in each reportable segment to “income before incometax.” Segment information for the same period of the previous fiscal year has also been restated to conform to therevised reportable segments.

3SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

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

1. Progress on sale or monetization of ¥4.5 trillion of assets
 The Company has sold or monetized ¥4.3 trillion of assets as of August 3, 2020 through the partial saleof T-Mobile shares, borrowing using T-Mobile shares, prepaid forward contracts using Alibaba shares,
and partial sale of SoftBank Corp. shares.
 From May to July 2020, the Company decided to execute share repurchases totaling ¥2 trillion, of which
it had repurchased shares of ¥101.7 billion as of June 30, 2020 and additional shares of ¥398.3 billion asof August 3, 2020.
 In July 2020, the Company completed the repurchase of domestic unsecured corporate bonds with a total
face value of ¥167.6 billion.
 In July 2020, the Company fully repaid $9.4 billion of borrowings using Alibaba shares (margin loan).
2. Results of investment in Sprint Sprint completed its merger with T-Mobile US, Inc. on April 1, 2020.
 From June to August 2020, the Company sold approximately two-thirds of its T-Mobile shares (see thenext page for details on the transactions and page 8 for major impacts on the Condensed Interim
Consolidated Financial Statements for the first quarter).
3. Highlights of results
 Gain on investments of ¥983.0 billion- Gain on investments at Investment Business of Holding Companies of ¥ 650.5 billion: Of this, gain
relating to sales of T-Mobile shares was ¥421.9 billion. In the same period of the previous fiscal year,
gain relating to settlement of prepaid forward contracts using Alibaba shares of ¥1.2 trillion wasrecorded.
- Gain on investments at SoftBank Vision Fund and other SBIA-managed funds of ¥296.6 billion:
Realized gain (net) on sales of investments of ¥111.4 billion was recorded, in addition to unrealized gain
on valuation of investments centered on listed portfolio companies, due to a rebound in public equity
markets.
 Income before income tax of ¥833.0 billion (decreased ¥862.0 billion yoy)

- Finance cost of ¥78.1 billion*- Derivative loss (excluding gain (loss) on investments) of ¥176.3 billion*- Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds of ¥(147.6)
billion** recorded as a cost for the first quarter Net income attributable to owners of the parent of ¥1.3 trillion (increased ¥134.0 billion yoy)

- Net income from discontinued operations of ¥736.4 billion: Gain relating to loss of control of Sprint

4

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)On March 23, 2020, SBG announced a program to sell or monetize ¥4.5 trillion of assets held. The funds obtained
from the sale and monetization will be used to repurchase up to ¥2 trillion of the Company’s common stock, with thebalance to be used for debt redemptions, bond buybacks, and to increase cash reserves (collectively, the “¥4.5 trillion
program”). Of this, ¥4.3 trillion of assets held were sold or monetized as of August 3, 2020, as shown in the tablebelow. Meanwhile, the share repurchases of up to ¥2 trillion were originally intended to be executed over four quartersfrom March 23, 2020; however, in light of the uncertainty in market trends and other factors, it is possible that the
repurchases may not be completed by the end of March 2021, as originally scheduled.
Given the current concern for a second or third wave of the novel coronavirus (COVID-19), SBG believes that itneeds to further enhance its cash reserves. SBG is investing the funds raised until such cash reserves are used for theplanned share repurchases and debt reductions, together with other surplus funds, in high-quality, highly liquid marketable securities and other instruments, in addition to holding the funds in cash and deposits, while being firmly
committed to its existing financial policies on LTV (loan-to-value, the ratio of liabilities to holding assets) and cashon hand.
Sale or monetization of assets based on the ¥4.5 trillion program
As of August 3, 2020
(Trillions of yen)Amount of sale or monetization
As of June 30, 2020
After July 1, 2020
1. Partial sale of T-Mobile shares and borrowings
using T-Mobile shares
2. Partial monetization of Alibaba shares throughprepaid forward contracts
3. Partial sale of SoftBank Corp. shares
Total

Total

1.9

0.5

2.4

1.5
0.3

0.1
-

1.6
0.3

3.7

0.6

4.3

1. Completion of the merger of Sprint and T-Mobile US, Inc., partial sale of T-Mobile shares, etc.
a. Completion of the merger of Sprint and T-Mobile US, Inc.
The merger of Sprint, which had been a U.S. subsidiary of the Company, and T-Mobile US, Inc. in an all-stocktransaction (the “Merger”) was completed on April 1, 2020. As consideration for the Merger, the Company received
304,606,049 T-Mobile shares and the right to acquire 48,751,557 T-Mobile shares for no additional considerations if
certain conditions are met (the “Contingent Consideration”). As of the same date, Sprint ceased to be a subsidiary of
the Company, and the combined new company, T-Mobile, became an equity method associate of the Company witha 24.7% shareholding. See “3. Discontinued operations” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
b. Partial sale of T-Mobile shares
Subsequently, of the Company’s 304,606,049 shares of common stock of T-Mobile, the Company, through its subsidiary, sold 173,564,426 shares on June 26, 2020 ((a) and (b) in “Details of the Partial Sale” below), 5,000,000 shareson July 16, 2020 ((c) below), and 19,750,000 shares on August 3, 2020 ((d) below) (the “Partial Sale”). T-Mobile5

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

disposed of the shares purchased from the Company’s subsidiary through a public offering in the United States, aprivate placement through a trust issuing cash mandatory exchangeable trust securities, a sale to Marcelo Claure, oneof its board directors (Board Director, Executive Vice President & COO of SBG), and a rights offering, with theproceeds being transferred to the Company’s subsidiary.
As a result of the decrease in voting rights following the sale of shares on June 26, 2020, the Company lost its
significant influence over T-Mobile and, on the same date, T-Mobile was removed as an equity method associate of
the Company.
Details of the Partial Sale
Number ofshares soldTotal sale value(shares)(Millions of U.S. dollars)

154,147,026
19,417,400
5,000,000
19,750,000

15,877
1,667
515
2,034

Transaction(a) Public offering in the U.S. by T-Mobile(b) Private placement through a trust by T-Mobile(c) Sale by T-Mobile to Marcelo Claure, a board director of T-Mobile(d) Rights offering by T-Mobile

In addition, Deutsche Telekom AG (“Deutsche Telekom”) received call options for 101,491,623 T-Mobile sharescontinued to be held by the Company after the Partial Sale (the “Deutsche Telekom Call Options”).1(i) For a call option over 44,905,479 shares out of the 101,491,623 shares, the strike price is $103.00 per share.
Deutsche Telekom can exercise this option at any time after the option grant date.
(ii) For a call option over 56,586,144 shares out of the 101,491,623 shares, the strike price is equal to the average ofthe daily volume-weighted average prices of the shares of T-Mobile common stock for each of the 20 trading days
immediately prior to the date of exercise. Deutsche Telekom can exercise this option after the exercise of theabove (i) option or after October 2, 2020.
Number of T-Mobile shares held by the Company before and after the Partial Sale(a) Number of shares held before the Partial Sale

304,606,049(b) Number of shares sold through the Partial Sale (as of August 3, 2020)

198,314,426(c) Number of shares held after the Partial Sale ((a) – (b))

106,291,623(d) Number of shares subject to the Deutsche Telekom Call Options

101,491,623(e) Number of shares held after the Deutsche Telekom Call Options are exercised ((c) – (d))

4,800,000(f) Number of shares that can be acquired through the Contingent Consideration

48,751,557(g) Number of shares held if the shares are acquired through the Contingent Consideration((e) + (f))

53,551,557

c. Borrowings using T-Mobile shares
On July 30, 2020, SBG’s wholly owned subsidiary borrowed $4.38 billion using its T-Mobile shares pledged ascollateral (margin loan). Because SBG has, as an exception, guaranteed a portion of the margin loan, $2.3 billion is
1 The Deutsche Telekom Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.

6

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

considered as the amount of assets monetized under the ¥4.5 trillion program (after deducting the $2.08 billion cap
on the guaranteed obligations). As a precondition for SBG to fulfill its guarantee obligations, the lenders are obligatedto first recover, to the maximum extent possible, from Alibaba shares held that have been pledged as collateral forthe margin loan.
2. Partial monetization of Alibaba shares through prepaid forward contracts
From April to June 2020, SBG’s wholly owned subsidiaries, West Raptor Holdings 2, LLC, Skybridge LLC, andSkylark 2020 Holdings Limited, entered into several prepaid forward contracts using Alibaba shares with financial
institutions. The Company procured an aggregate amount of $13.7 billion. Alibaba remains an equity method associate of the Company following these transactions.
In addition, Scout 2020 Holdings Limited, a wholly owned subsidiary of SBG, entered into a prepaid forward
contract using Alibaba shares with financial institutions in July 2020, procuring $0.9 billion.
3. Partial sale of SoftBank Corp. shares
On May 22, 2020, SBG sold 240,000,000 shares of common stock of its subsidiary SoftBank Corp. (out of the3,182,919,470 shares held through SoftBank Group Japan Corporation) for ¥310.2 billion through several securities
companies. Since SoftBank Corp. continues to be a subsidiary of SBG following this sale, the amount equivalent tothe after-tax gain on the sale was recorded as capital surplus in the Condensed Interim Consolidated Statement of
Financial Position. In addition, a credit of income taxes (profit) was recorded, mainly due to the determination thatthe transaction has increased the probability of generating taxable income at SoftBank Group Japan Corporation thatis available for the use of loss carryforwards, to which deferred tax assets had not been recognized.
Share repurchases based on the ¥4.5 trillion program
As of August 3, 2020
Date of Board
resolution
May 15, 2020

Total number of shares
to be repurchased

Total amount of repurchase

June 25, 2020

81,940,400(Repurchased)
Maximum of 115 million¥500 billion(Repurchased)
Maximum of ¥500 billion

July 30, 2020

Maximum of 240 million

Maximum of ¥1 trillion(Reference: Status of share repurchase resolved before the ¥4.5 trillion program)March 13, 2020
107,679,300¥500 billion(Repurchased)(Repurchased)

Repurchase period
From June 17, 2020 toAugust 3, 2020
From June 26, 2020 toMarch 31, 2021
From July 31, 2020 toJuly 30, 2021

From March 16, 2020 toJune 15, 2020

Reduction of debt based on the ¥4.5 trillion program
No debt reductions took place in the first quarter as part of the ¥4.5 trillion program. However, the Company implemented the following debt reductions subsequent to the first quarter-end.

7

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

a. Repurchase of domestic unsecured corporate bonds
On July 22, 2020, SBG completed the repurchase of domestic unsecured corporate bonds with a total face value of¥167.6 billion.
b. Repayment of margin loan using Alibaba shares
In July 2020, Skywalk Finance GK, a wholly owned subsidiary of the Company, fully repaid $9.4 billion in borrowings using Alibaba shares (margin loan).

MAJOR IMPACTS OF THE MERGER BETWEEN SPRINT AND T-MOBILE US, INC. AND THE PARTIAL SALE OF T-MOBILE SHARES ON THE CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS FOR THE FIRST QUARTER
Impact of the merger of Sprint and T-Mobile US, Inc.
a. Impact on the Condensed Interim Consolidated Statement of Income
A gain relating to loss of control of Sprint of ¥736.4 billion was recorded under “net income from discontinued
operations.”b. Impact on the Condensed Interim Consolidated Statement of Financial Position
Assets· The fair value of T-Mobile shares, which were received as consideration for the Merger, of ¥2.7 trillion was recorded
under “investments accounted for using the equity method” (as a result of the partial sale of T-Mobile shares
mentioned below, the T-Mobile shares continued to be held by the Company were reclassified to “investment
securities” at fair value).
· The fair value of the Contingent Consideration, which was received as consideration for the Merger, of ¥196.3 billion
was recorded under “derivative financial assets.” The Contingent Consideration is measured at fair value at eachquarter-end, with changes recorded under “gain (loss) on investments at Investment Business of Holding Companies”
in the Consolidated Statement of Income. Derivative gain of ¥129.6 billion was recorded in the first quarter related
to the Contingent Consideration.
Impact of the partial sale of T-Mobile sharesa. Impact on the Condensed Interim Consolidated Statement of Income
Gain (loss) on investments
Gain relating to sales of T-Mobile shares of ¥421.9 billion was recorded under “gain (loss) on investments at
Investment Business of Holding Companies.” This consisted of a gain of ¥280.3 billion on the sale of shares ofassociates, a gain of ¥296.0 billion on the revaluation of T-Mobile shares continued to be held by the Company, anda derivative loss relating to the Deutsche Telekom Call Options of ¥154.5 billion.

8SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

b. Impact on the Condensed Interim Consolidated Statement of Financial Position
Assets
T-Mobile shares continued to be held by the Company were recorded under “investment securities” at fair value (firstquarter-end: ¥1.5 trillion). The T-Mobile shares continued to be held are measured at fair value at each quarter-end,
with changes recorded under “gain (loss) on investments at Investment Business of Holding Companies” in theConsolidated Statement of Income. Unrealized loss on valuation of investments of ¥14.8 billion was recorded in thefirst quarter related to T-Mobile shares.
Liabilities
The Deutsche Telekom Call Options were recorded under “derivative financial liabilities” at fair value (first quarterend: ¥147.5 billion). The Deutsche Telekom Call Options are measured at fair value at each quarter-end, with changes
recorded as derivative gain or loss under “gain (loss) on investments at Investment Business of Holding Companies”
in the Consolidated Statement of Income.
c. Impact on the Condensed Interim Consolidated Statement of Cash Flows
Cash flows from investing activities
Proceeds from the sale of T-Mobile shares of ¥1.8 trillion were recorded under “proceeds from sales/redemption of
investments.”
IMPACT FROM THE COVID-19 PANDEMIC
There is still no sign of an end to the COVID-19 pandemic. Data collected by Johns Hopkins University in the U.S.
indicate that as of August 2, 2020, the total number of COVID-19 cases worldwide surpassed 18 million. The numberof infections continues to increase in countries such as the U.S., India, Brazil, and African nations. Global stock
markets, which had plunged from late February 2020, are starting to rebound to their pre-plunge levels, but continue
to be volatile due to concerns about a second or third wave of the virus.
SoftBank Vision Fund recorded gain on investments of ¥296,577 million in the first quarter, an improvement of¥1.4 trillion from the prior quarter, supported by a recovery in fair value of investments centered on listed portfolio
companies due to a rebound in public equity markets. The impact on portfolio companies from the COVID-19 pandemic varies significantly across sectors. Online businesses such as e-commerce and food delivery have seen an
increase in customer engagement, while businesses such as travel and hospitality remain adversely impacted. The
pandemic is expected to continue to affect each portfolio company differently in the future.

9SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020a. Consolidated Results of Operations(Millions of yen)Three months ended June 30
2019

2020

ChangeChange %Net sales

1,480,292

1,450,055(30,237)(2.0%) A

Gross profit

667,561

707,820

40,2596.0%

1,226,250

650,493(575,757)(47.0%) B

414,419

296,577(117,842)(28.4%) C

6,364

35,88229,518463.8%

1,647,033

982,952(664,081)(40.3%)

Selling, general and administrative expenses(457,370)(513,875)(56,505)

12.4%

Finance cost

(71,822)(78,132)(6,310)

8.8%

Income on equity method investments
Derivative gain (loss) (excluding gain (loss) on
investments)
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds

91,573

6,416(85,157)(93.0%) E

2,575(176,257)(178,832)-(184,488)(147,643)

36,845(20.0%)(54)

51,766

51,820-1,695,008

833,047(861,961)(50.9%)(506,813)(253,055)

253,758(50.1%) G

1,188,195

579,992(608,203)(51.2%)(10,716)

736,429

747,145-

Net income

1,177,479

1,316,421

138,94211.8%

Net income attributable to owners of the parent

1,121,719

1,255,712

133,99311.9%

747,172

1,136,007

388,835

52.0%

706,799

1,073,486

366,687

51.9%

Continuing operations

Gain on investments
Gain on investments at Investment Business of Holding Companies
Gain on investments at SoftBank Vision Fund andother SBIA-managed funds
Gain on other investments
Total gain on investments

Other gain (loss)
Income before income tax
Income taxes
Net income from continuing operations

D

F

Discontinued operations
Net income from discontinued operations

Total comprehensive income
Comprehensive income attributable to owners of theparentH

Note: From the previous fiscal year, continuing operations and discontinued operations have been presented separately. To reflect thischange in presentation, figures for the same period of the previous fiscal year have been restated and presented in a similarmanner.

10

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

The following is an overview of the main and noteworthy components.
A Net Sales

Net sales increased in the SoftBank and Arm segments, but decreased in the Brightstar segment.
B Gain on Investments at Investment Business of Holding Companies

Gain relating to sales of T-Mobile shares of ¥421,863 million was recorded. In the same period of the previous
fiscal year, a gain of ¥1,218,527 million relating to settlement of prepaid forward contract using Alibaba shares
was recorded. See “(a) Investment Business of Holding Companies Segment” under “b. Results by Segment” fordetails.
C Gain on Investments at SoftBank Vision Fund and Other SBIA-Managed Funds

Realized gain on sales of investments of ¥111,425 million was recorded as a result of the sale by SoftBank Vision
Fund of a portion of its shares in four listed portfolio companies’ and all shares of three unlisted portfolio companies (including share exchanges with the shares of affiliated portfolio companies). In addition, unrealized gain
on valuation of ¥258,056 million (net) from 86 investments held at the first quarter-end was recorded. See “(b)SoftBank Vision Fund and Other SBIA-Managed Funds Segment” under “b. Results by Segment” for details.

Primarily as a result of B and C, gain on investments was ¥982,952 million, a decrease of ¥664,081 million(40.3%) year on year.
D Finance Cost

Interest expenses increased ¥2,039 million in the Investment Business of Holding Companies segment, ¥2,699 million in the SoftBank Vision Fund and Other SBIA-Managed Funds segment, and ¥2,243 million in the SoftBanksegment.
E Income on Equity Method Investments

Income on equity method investments of ¥24,736 million related to T-Mobile for the period from April 1, 2020 toJune 25, 2020 was recorded, which was not recorded for the same period of the previous fiscal year. On the other
hand, loss on equity method investments related to Alibaba deteriorated ¥107,586 million to ¥18,472 million. Thiswas mainly due to the recording of investment loss on investments classified as financial assets at FVTPL during
the three-month period ended March 31, 2020,2 following the fall in stock markets due to the COVID-19 outbreak.
F Derivative Gain (Loss) (Excluding Gain (Loss) on Investments)

Derivative loss of ¥179,471 million was recorded in connection with prepaid forward contracts using Alibaba shares
entered into in November 2019 and from April to June 2020.
2 The Company applies equity method to Alibaba’s consolidated financial statements for a reporting period staggered by three months
in the past, since it is impractical to align reporting periods with Alibaba due to factors such as contracts with the company. Necessary
adjustments have been made to reflect important transactions and events announced by Alibaba during the staggered three-month
period.

11

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Primarily as a result of A through F, income before income tax was ¥833,047 million, a decrease of ¥861,961
million (50.9%) year on year.
G Income Taxes

Income taxes related to SoftBank Corp. and Yahoo Japan Corporation were recorded, as well as tax expenses related
to the sale of T-Mobile shares. In addition, a credit of income taxes of ¥58,147 million (profit) was recorded mainly
due to the determination that the partial sale of SoftBank Corp. shares (see “3. Partial sale of SoftBank Corp. shares”
on page 7) has increased the probability of generating taxable income at SoftBank Group Japan Corporation that isavailable for the use of loss carryforwards, to which deferred tax assets had not been recognized.
H Net Income from Discontinued Operations

The Company recorded a gain of ¥736,429 million relating to loss of control of Sprint in connection with Sprintceasing to be a subsidiary of the Company, following the completion of the merger between Sprint and T-Mobile
US, Inc.
Primarily as a result of A through H, net income attributable to owners of the parent was ¥1,255,712 million,
an increase of ¥133,993 million (11.9%) year on year.

For a basic information used to calculate income (loss) on equity method investments related to Alibaba, see the Data Sheets in“Materials” under “Earnings Results Briefing” on the Company’s website athttps://group.softbank/en/ir/presentations/.

12SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

b. Results by Segment
The Company’s reportable segments are the components of its business activities for which decisions on resource
allocation and assessment of performance are made. Given that investment activities have taken on greater importance in the Company’s overall consolidated financial results, the Company has changed its segment classifications from the first quarter. There are now five reportable segments: Investment Business of Holding Companies,
SoftBank Vision Fund and Other SBIA-Managed Funds, SoftBank, Arm, and Brightstar. Along with no longer presenting “operating income” in the Consolidated Statement of Income, the Company has revised segment income ineach reportable segment to “income before income tax.”
Until the previous fiscal year, there were four reportable segments: SoftBank Vision Fund and Other SBIA-Managed Funds, SoftBank, Arm, and Brightstar.
The following is a summary of the reportable segments.
Segments

Main businesses

Core companies

Reportable segments
Investment Business · Investment activities by SBG and its subsidiaries
of Holding Companies

SoftBank Group Corp.
SoftBank Group Capital Limited
SoftBank Group Japan Corporation

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

SB Investment Advisers (UK) Limited
SoftBank Vision Fund L.P.

SoftBank· Provision of mobile communications services, saleof mobile devices, and provision of broadband andother fixed-line communications services in Japan· Internet advertising and e-commerce business

SoftBank Corp.
Z Holdings Corporation

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

Arm Limited

Brightstar· Distribution of mobile devices overseas

Brightstar Corp.

· Smartphone payment business

PayPay Corporation· Alternative investment management business

Fortress Investment Group LLC

Other· Investment fund business in Latin America· Fukuoka SoftBank HAWKS-related businesses

13

Fukuoka SoftBank HAWKS Corp.

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(a) Investment Business of Holding Companies Segment
1. Recorded gain relating to sales of T-Mobile shares of ¥421.9 billion
Recorded a gain of ¥280.3 billion on the sale of shares of associates, a gain of ¥296.0 billion on therevaluation of shares continued to be held by the Company, and a derivative loss of ¥154.5 million.
2. Received total proceeds of ¥3.6 trillion in the first quarter from the partial sale of T-Mobile shares,
prepaid forward contracts using Alibaba shares, and partial sale of SoftBank Corp. shares
OVERVIEWThis segment is led by SBG, which conducts investment activities, either directly or through subsidiaries, as a
strategic investment holding company. The segment consists of SBG and certain subsidiaries engaged in investment and financing activities such as SoftBank Group Capital Limited and SoftBank Group Japan Corporation(“SBGJ”). Gain and loss on investments at Investment Business of Holding Companies comprises gains and losses
on investments held by SBG either directly or through its subsidiaries, excluding gain and loss on investments
pertaining to subsidiaries’ shares, such as dividend income from subsidiaries or impairment loss relating to subsidiaries’ shares.
The companies comprising this segment hold approximately 120 portfolio companies, including Alibaba, TMobile, and The We Company (“WeWork”).*1 They are either equity method associates (such as Alibaba) or investments classified as financial assets at FVTPL. With regard to the financial results of portfolio companies classified as equity method associates, gain or loss is recorded as income on equity method investments in proportion
to equity interest. Investments classified as financial assets at FVTPL are measured at fair value every quarter, andany change in fair value is recorded in the Consolidated Statement of Income as “gain (loss) on investments.”
Note:
1. Gain and loss on investments related to WeWork shares held by SoftBank Vision Fund are included in the SoftBank Vision Fundand Other SBIA-Managed Funds segment.

FINANCIAL RESULTS(Millions of yen)Three months ended June 30
Gain on investments
Gain relating to sales of T-Mobile shares
Gain relating to settlement of prepaid forward contracts using Alibaba shares
Realized gain on sales of investments

2019

2020

ChangeChange %1,226,250

650,493(575,757)(47.0%) A-

421,863

421,863-

1,218,527-(1,218,527)

-

1,738

65,44563,707-

Unrealized gain on valuation of investments

15,18828,515

13,327

87.7%

Derivative gain (loss) on investments(11,082)

133,349

144,431

-

1,879

1,321

(558)

(29.7%)

Selling, general and administrative expenses(18,322)(22,288)(3,966)

21.6%

Finance cost

(51,111)(53,150)(2,039)

4.0%

Income on equity method investments

88,883

4,103(84,780)(95.4%) C

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

2,113(176,189)(178,302)-

D

Other gain (loss)(633)

55,92856,561-E

1,247,180

458,897(788,283)(63.2%)

Other

Segment income (income before income tax)

14

B

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

A Gain on investments: ¥650,493 million· Gain relating to sales of T-Mobile shares of ¥421,863 million was recorded. This gain consists of (1) a gain of¥280,341 million on the sale of shares of associates in connection with the sale of 173,564,426 shares of the304,606,049 T-Mobile shares held on June 26, 2020; (2) a gain of ¥296,013 million on the revaluation of TMobile shares continued to be held by the Company following the exclusion of T-Mobile from the Company’s
equity method associates; and (3) a derivative loss of ¥154,491 million relating to the call options received by
Deutsche Telekom for 101,491,623 T-Mobile shares held by the Company.
· Derivative gain on investments of ¥133,349 million was recorded. This was mainly due to the recording of a gainof ¥129,649 million as an increase in the fair value of the right to purchase T-Mobile shares for no additional
considerations if certain conditions are met, which was received as consideration for the merger between Sprint
and T-Mobile US, Inc.
· Realized gain of ¥65,445 million on sales of investments was recorded. This gain was mainly attributable toinvestments made in highly liquid listed shares using funds procured from the ¥4.5 trillion program and othersurplus funds.
B

Finance cost: ¥53,150 million (increased ¥2,039 million year on year)· Interest expenses at SBG3 increased ¥1,993 million, to ¥53,102 million.
C

Income on equity method investments: ¥4,103 million (decreased ¥84,780 million year on year)· Income on equity method investments of ¥24,736 million related to T-Mobile for the period from April 1, 2020
to June 25, 2020 was recorded, which was not recorded for the same period of the previous fiscal year.
· Loss on equity method investment related to Alibaba deteriorated ¥107,586 million, to ¥18,472 million. This was
mainly due to the recording of investment loss on investments classified as financial assets at FVTPL for thethree-month period ended March 31, 2020,2 following the fall in stock markets due to the COVID-19 outbreak.
D Derivative loss: ¥176,189 million· Derivative loss of ¥179,471 million was recorded in connection with the prepaid forward contracts using Alibaba
shares entered into in November 2019 and from April to June 2020.
E Other gain: ¥55,928 million· In the three-month period ended March 31, 2020 (the fourth quarter of the previous fiscal year), the Company
recorded provisions for allowance for financial guarantee contract losses and loan commitment losses of ¥52,349
million and ¥90,210 million, respectively, in connection with a credit support by the Company for a letter ofcredit facility provided to WeWork by financial institutions and a purchase by the Company’s wholly owned
subsidiary of unsecured notes to be issued by WeWork; however in the first quarter, mainly due to the improvement in the credit risk of WeWork, the Company recorded a reversal of ¥3,472 million and ¥43,485 million,
respectively.
3 The presentation of interest expenses at SBG includes interest expenses on interest-bearing debts of wholly owned subsidiaries conducting fund procurement (Skywalk Finance GK, West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge LLC, Skylark
2020 Holdings Limited, and Moonlight Finance GK). These interest-bearing debts are not guaranteed by SBG, hence, are non-recourse
to the company.

15

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

MAIN INITIATIVES IN THE FIRST QUARTER
See “PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)”onpage 5, for details of the sale and monetization of assets, share repurchases, and reduction of debt under the ¥4.5
trillion program.
MAIN INTEREST-BEARING DEBT IN THIS SEGMENT
Balance as of June 30, 2020
on Condensed Interim Consolidated
Statement of Financial Position

Borrower

Type

SBG

Borrowings¥1,334.8 billion

Corporate bonds¥4,939.0 billion

Commercial paper¥45.0 billion(Wholly owned subsidiaries conducting fund procurement*1)
West Raptor Holdings, LLC;
Prepaid forward contracts using Alibaba
West Raptor Holdings 2, LLC;
shares (forward contracts, floor contracts,
Skybridge LLC;
collar contracts, and call spread)Skylark 2020 Holdings Limited
Skywalk Finance GK

Borrowings using Alibaba shares

Moonlight Finance GK

Borrowings using SoftBank Corp. shares¥1,933.1 billion¥1,015.3 billion¥497.7 billion

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

(Reference)
Cash and cash equivalents and balance of unused committed credit lines of SBG on a stand-alone basis
As of June 30, 2020
Cash and cash equivalents¥3,893.4 billion

Balance of undrawn commitment line-

16SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(b) SoftBank Vision Fund and Other SBIA-Managed Funds Segment
1. Gain on investment (net) was ¥296.6 billion, an improvement of ¥1.4 trillion from the priorquarter. Segment income, after deducting change in third-party interests, was ¥129.6 billion.
 SoftBank Vision Fund*1- Realized gain on sales of investments (net) of ¥111.4 billion: Sold a portion of its shares in four listed
portfolio companies, etc.
- Unrealized gain on valuation of investments (net) of ¥258.1 billion from investments held at the firstquarter-end: Recorded ¥149.4 billion gain on investments in listed portfolio companies due to arecovery in the public equity markets, and ¥108.7 billion on investments in unlisted portfolio
companies driven by the fair value uplift of portfolio companies with expanded customer engagement
during the COVID-19 crisis.
2. Progress of investment and management at SoftBank Vision Fund
 Held 86 investments as of the first quarter-end at cost totaling $75.2 billion, with fair value amounting
to $71.5 billion. Cumulative gross gains*2 (including exited investments) since inception reached $2.0
billion.
 A portfolio company, Relay Therapeutics, Inc., became a publicly listed issuer on July 16, 2020.
 SBIA is continuing to provide portfolio companies with operational support and guidance on strategy,
including establishing customized roadmaps to recovery.
Notes:
1. Excludes the investment results of new investment vehicles, which are intended to hold certain investments that are expected to betreated as the initial investments of “SoftBank Vision Fund 2” (planned).
2. Includes derivative gains related to portfolio companies’ shares. Cumulative gross gains are before deducting third-party interests,
tax, and expenses.

OVERVIEW
Segment results mainly include the results of the investment and operational activities of SoftBank Vision Fund.
The fund is managed by SBIA, a wholly owned subsidiary of the Company established in the U.K., which isauthorized and regulated by the Financial Conduct Authority.
SoftBank Vision Fund aims to maximize returns from a medium- to long-term perspective, through large-scale
investments in high-growth-potential companies leveraging AI, particularly in private companies valued at over
$1 billion at the time of investment, colloquially known as “unicorns.” The fund’s investment period ended on
September 12, 2019. The remaining undrawn capital is reserved for follow-on investments in existing portfolio
companies (including investments in joint ventures with them), fixed distributions, and operating expenses. In
principle, the life of the fund is until November 20, 2029.

17

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Impact of the COVID-19 pandemic
While COVID-19 continues to impact global economies and financial markets, SoftBank Vision Fund has seen
significant variation in impact across sectors. Online businesses such as e-commerce and food delivery have seen
an increase in customer engagement, while businesses such as travel and hospitality remain adversely impacted.
In the Company’s Condensed Interim Consolidated Financial Statements, the fair value measurement of portfolio
companies was based on expected company-specific COVID-19 impact as of June 30, 2020, liquidity positions ofeach company, market conditions and comparables, and increased market volatility. The impact of the COVID-19
pandemic is expected to continue to affect each portfolio company differently in the future.
As a result, SBIA has worked with individual portfolio companies to establish a customized roadmap to recovery
and share advice on how to reduce costs, assess various approaches globally for recovery, retain flexibility, develop
scenario plans for disruptions in global supply chains, and analyze changes in customer behaviors. In some industries SBIA is working with companies to capitalize on growth opportunities, whereas in others, it is guiding them
towards a more cautious approach to focus on optimizing cash reserves. Across the entirety of the portfolio, regardless of sector or geography, SBIA has encouraged all companies to use this time to reassess their expenses,
optimize and streamline their businesses, preserve business flexibility and maintain clear contingency plans. Whilethe duration of COVID-19 is unpredictable, SBIA is committed to helping the SoftBank Vision Fund portfolio
companies get through the crisis and continues to believe the majority of its companies are well positioned toemerge from this difficult time stronger and with best practices in place.
Outline of principal funds in the segment
As of June 30, 2020
SoftBank Vision Fund
Major limited partnership
Total committed capital

SoftBank Vision Fund L.P.
98.6

(Billions of U.S. dollars)

The Company: 33.1, Third-party investors: 65.5

General partner

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

Investment period

Ended on September 12, 2019

Minimum fund life

Until November 20, 2029 (in principle)

Note: The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation satisfied byusing Arm Limited shares (all said shares have been contributed) and $5.0 billion earmarked for use in an incentive scheme
related to SoftBank Vision Fund.
For a complete list of SoftBank Vision Fund’s portfolio companies, see the Data Sheets in “Materials” under “Earnings Results Briefing” on the Company’s website at https://group.softbank/en/ir/presentations/.

18

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Capital deployment of SoftBank Vision FundAs of June 30, 2020
(Billions of U.S. dollars)Committed capital
Drawn capital

4

(A)

(B)

Return of capital (non-recallable)
Outstanding capital(C)(D) = (B) – (C)Remaining committed capital(E) = (A) - (B)Total

The Company

Third-party investors

98.6

33.1

65.5

84.1

28.4

55.7

5.9

0.9

5.0

78.2

27.5

50.7

14.5

4.7

9.8

Note: The Company’s committed capital to SoftBank Vision Fund includes approximately $8.2 billion of an obligation satisfied byusing Arm Limited shares (all said shares have been contributed) and $5.0 billion earmarked for use in an incentive scheme
related to SoftBank Vision Fund.

FINANCIAL RESULTS(Millions of yen)Three months ended June 30
2019
2020
Gain on investments
Realized gain on sales of investments
Unrealized gain (loss) on valuation of investments
Change in valuation for the fiscal year
Reclassified to realized gain recorded in the pastfiscal year*1
Dividend income from investments
Derivative gain on investments
Effect of foreign exchange translation
Selling, general and administrative expenses
Finance cost
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds
Other gain (loss)
Segment income (income before income tax)

ChangeChange %414,419
408,514408,514

296,577
111,425
178,114
258,056(117,842)
111,425(230,400)(150,458)(28.4%)(56.4%)(36.8%)

5,905(16,795)(1,901)(79,942)
2,888
815
3,335
(14,342)(4,600)(79,942)(3,017)
815
3,335
2,453
(2,699)(51.1%)(14.6%)
142.0%(184,488)
829(147,643)(362)

36,845(1,191)(20.0%)-

212,064

129,630(82,434)(38.9%)

Note:
1. Unrealized gain on valuation of investments recorded in prior fiscal years related to the investments exited in the fiscal year are
reclassified to “realized gain on sale of investments.”

During the first quarter, SoftBank Vision Fund made follow-on investments totaling $1.27 billion in existing portfolio companies and their joint ventures,5 and sold a portion of its shares in four listed portfolio companies and allof its shares in three unlisted portfolio companies5 for a total of $2.10 billion,6 of which the initial acquisition
costs were $1.07 billion.

4 Drawn capital of SoftBank Vision Fund excludes the amount repaid to limited partners due to investment plan changes and otherreasons after the capital was drawn.
5 Includes share exchanges. During the first quarter, SoftBank Vision Fund exchanged all of its shares in two portfolio companies forshares in their affiliated companies, which are also existing portfolio companies. Such share exchanges are treated as exits frominvestments and acquisitions of new investments, with the sale price and acquisition cost being recorded in gross, respectively, andwith the difference between the acquisition cost of shares initially held and sale price (acquisition cost of the exchanged shares) being
recorded as realized gain or loss on the investments.
6 After deducting transaction fees, etc.

19SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Segment income
Gain on investments: ¥296,577 million· Realized gain on sales of investments of ¥111,425 million was recorded as a result of the sale by SoftBank Vision
Fund of a portion of its shares in four listed portfolio companies and all shares of three unlisted portfolio companies.5· Unrealized gain on valuation of investments from 86 investments held by SoftBank Vision Fund at the firstquarter-end was ¥258,056 million ($2,395 million, net). See “Portfolio of SoftBank Vision Fund” below for abreakdown. Unrealized valuation gain totaled $1,387 million on listed portfolio companies due to a rebound intheir share prices primarily as a result of a recovery in the public equity markets. In addition, unrealized valuation
gain totaling $1,008 million was recorded on unlisted portfolio companies driven by increases in the fair valueof investments in online businesses such as e-commerce and food delivery, which have seen increases in customer
engagement during the COVID-19 crisis.
Change in third-party interests in SoftBank Vision Fund and other SBIA-managed funds: ¥(147,643) million
This indicates the sum of distributions to third-party investors in proportion to their interests in fixed distributions
and performance-based distributions, which are based on the gain and loss on investments at SoftBank Vision
Fund and other SBIA-managed funds, net of management and performance fees payable to SBIA, a wholly owned
subsidiary of the Company, and operating and other expenses of SoftBank Vision Fund and other SBIA-managed
funds. See “(2) Third-party interests in SoftBank Vision Fund” under “5. SoftBank Vision Fund and other SBIAmanaged funds business” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.

20SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Portfolio of SoftBank Vision FundAs of June 30, 2020
(Billions of U.S. dollars)(1) Investments before exit (investments held at the first quarter-end)
Number ofinvestments
Sectora Consumerb Enterprisec Fintechd Frontier Teche Health Techf Real Estate & Construction
g Transportation & Logistics
Total(Reference)
Listed companies*2
b Slack
c OneConnectc ZhongAn Insurance
e 10x Genomics
e Guardant Healthe Ping An Good Doctor
e Vir Biotechnology
g UberUnlisted companies
Total

14
8
11
10
10
9
24
86

Investment cost
A1
11.5
2.2
4.9
10.8
2.3
9.7
33.8
75.2

Fair value
A2
13.7
2.9
4.9
10.4
4.5
4.6
30.5
71.5

Cumulative
unrealized
gain/loss*1
A3
2.2
0.7
(0.0)
(0.4)
2.2
(5.1)
(3.3)
(3.7)

8.9
0.0
0.1
0.5
0.0
0.2
0.2
0.2
7.7
66.3
75.2

10.0
0.1
0.1
0.4
0.1
1.1
0.4
0.9
6.9
61.5
71.5

1.1
0.1
(0.0)
(0.1)
0.1
0.9
0.2
0.7
(0.8)
(4.8)
(3.7)

1.4
0.0
0.0
0.1
0.0
0.2
0.2
0.2
0.7
1.0
2.4

Sale price
B2
2.8
8.5
11.3

Cumulative
realized gain/loss*3
B3
2.0
2.2
4.2

Realized gain
(loss) recoded in
the fiscal year
Q1
1.4
(0.4)
1.0

Derivative cost
C1
(0.0)
0.0
0.0

Fair value/
settlement price
C2
(0.0)
1.5
1.5

Cumulative
derivative
gain/loss
C3
0.0
1.5
1.5

Cumulative
investment cost
A1+B1+C1
82.3

Cumulative
investment
returnA2+B2+C2
84.3

Cumulative
gain/loss*3
A3+B3+C3
2.0

8

78
86

Unrealized gain
(loss) recoded in
the fiscal year
Q1
0.9
(0.0)
0.0
(0.0)
0.6
(0.1)
1.0
2.4

(2) Exited investments
Number ofinvestments
Partial exit
Full exit5
Total

6
6

Investment cost
B1
0.8
6.3
7.1

(3) Derivative gain and loss relating to investment

Unsettled
Settled
Total
Total ( (1) + (2) +(3) )Cumulative
number ofinvestments
92

Notes:
1. For a certain investment that was once decided to be transferred from the Company to SoftBank Vision Fund but canceled afterwards, its unrealized gain and loss incurred for the period leading up to the decision to cancel the transfer are not included in thepresentation.
2. The letter attached to the listed companies indicates the sector to which the company belongs. Investments in that sector are notlimited to those listed companies.
3. Before deducting third-party interests, tax, and expenses

21SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(c) SoftBank Segment
1. Segment income decreased 0.9% yoy: Despite the growth in Z Holdings Corporation and theenterprise business, income decreased in the retail consumers business.
2. Business integration of Z Holdings Corporation and LINE Corporation: A tender offer for sharesof LINE Corporation commenced on August 4, 2020.
(Millions of yen)Three months ended June 30
Net sales

2019

2020

ChangeChange %1,164,586

1,172,322

7,736

0.7%

261,696259,249(2,447)(0.9%)(164,949)(173,134)(8,185)

5.0%

9,373

4,116

(5,257)(56.1%)(14,013)(16,256)(2,243)16.0%(3,458)(9,006)(5,548)-Segment income (income before income tax)
Depreciation and amortization
Gain on investments
Finance cost*1

Loss on equity method investments

Note:
1. This refers mainly to loss on equity method investments related to PayPay Corporation. At SoftBank Corp., PayPay Corporation
is classified as an equity method affiliate, however, PayPay Corporation has consistently been classified as a subsidiary at SBG
since its founding in June 2018 and with its financial results included in “Other.” For this reason, loss on equity method investments
related to PayPay Corporation recognized in the SoftBank segment is eliminated in the “Reconciliations” account of segment
information.

FINANCIAL RESULTS
Segment income decreased ¥2,447 million (0.9%) year on year, to ¥259,249 million. Although Z Holdings Corporation and the enterprise business underpinned the growth, they could not fully offset the negative impact oflower income in the retail consumers business, decreased gain on investments, and increased loss on equity method
investments.
Income increased in Z Holdings Corporation and in the enterprise business, respectively. For Z Holdings Corporation, this was mainly due to the consolidation of ZOZO, Inc. in November 2019 and an increase in revenue ofthe existing e-commerce business. For the enterprises business, it was due to an increase in net sales of cloudservices and security solutions, following the expansion of telework to address the COVID-19 pandemic. On theother hand, income decreased year on year due to factors including the impact of discounts for price plans, despite
continued steady growth in the cumulative number of smartphone subscribers.
Business integration of Z Holdings Corporation and LINE Corporation
In December 2019, Z Holdings Corporation and LINE Corporation, along with SoftBank Corp. and NAVER Corporation, concluded a four-way definitive agreement regarding a business integration (the “Business Integration”).
Z Holdings Corporation, as the listed integrated company resulting from the Business Integration, is expected to
become a subsidiary of the Company and SoftBank Corp. As part of the transactions to realize the Business Integration, on August 3, 2020, SoftBank Corp. and a wholly owned subsidiary of NAVER Corporation decided tocommence a tender offer for shares of LINE Corporation. The tender offer commenced on August 4, 2020. In linewith this decision, the Business Integration is expected to be completed around March 2021.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

22

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(d) Arm Segment
1. Net sales increased 7.1% yoy; however, segment loss deteriorated due to accelerated R&D
investments Technology royalty revenue increased 17.5% yoy (U.S. dollar-based) led by an increase in shipmentsof 5G related smartphones and networking equipment. Technology licensing revenue decreased only
2.4% yoy (U.S. dollar-based), despite the increased uncertainty around the semiconductor industry
from the impact of COVID-19.
 Segment loss deteriorated ¥2.2 billion yoy due to an increase in head count following the enhanced
R&D.
2. Arm’s accelerated R&D investments bearing fruit
 Supercomputer Fugaku with Arm-based technology for servers, ranked number one in the TOP500, a
global ranking based on calculation speed of supercomputers.
 Arm signed new licenses for technologies to be used across multiple growth segments including
wearable devices, IoT, servers, and gaming devices that will underpin future revenue growth.
(Millions of yen)Three months ended June 30
2020
2019

ChangeChange %Net sales

45,931

49,202

3,271

7.1%

Segment income (income before income tax)

(11,173)(13,340)(2,167)-

Note: Segment income includes amortization expenses of ¥12,215 million for the first quarter and ¥12,868 million for the same periodof the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at thetime of the acquisition of Arm.

OVERVIEW
Arm’s operations are primarily the licensing of semiconductor intellectual property (IP), including the design ofenergy-efficient microprocessors and associated technologies. Arm has accelerated investment in R&D by hiring
more engineers. With the expansion of its engineering capability, Arm can develop new technologies that will help
it maintain or increase its share of the existing markets and expand into new markets.
Industry trends and their impact
Semiconductor industry trends can have a significant impact on Arm’s financial results. The industry is vulnerable
to external factors, including trade disputes and sanctions against specific companies, and also the impact fromreduction in economic activity caused by COVID-19. For this fiscal year, from these impacts, if shipments ofconsumer electronics devices continue to be weak, it may lead to lower technology royalty revenue, and if licensees that face reduced revenues continue to delay licensing decisions, it may lead to lower technology licensing
revenue. However, it is difficult to anticipate the negative impact on the whole semiconductor industry or Arm at
this point.
Although those risks still remain, as market conditions improve, Arm expects that its business will continue togrow again. In addition, Arm is expecting that as technology becomes more advanced, its technology will befurther utilized and opportunities will expand over the long term.

23

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

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 in U.S. dollars.
(Millions of U.S. dollars)

Fiscal year ended
March 31, 2020
Q3
Q4

Fiscal year ending
March 31, 2021
Q1

yoy
ChangeChange %Q1

Q2

Technology licensing
Technology royalty
Software and services

125
240
53

87
254
55

130
312
63

240
275
64

122
282
53

(3)
42
0

(2.4%)
17.5%
0.0%

Total net sales

418

396

505

579

457

39

9.3%

Net sales increased $39 million (9.3%) year on year in the first quarter. While technology licensing revenue decreased $3 million (2.4%), technology royalty revenue increased $42 million (17.5%).
Technology licensing
Technology licensing revenue decreased $3 million (2.4%) year on year. Despite having the increased uncertainty
around the semiconductor industry from the impact of COVID-19, the number of licenses signed in the first quarterremained solid at 42. Although some customers delayed signing new licenses, Arm expects that if economic conditions improve, most of these customers will resume licensing Arm technology.
Technology royalty
Technology royalty revenue increased $42 million (17.5%) year on year. Shipments of 5G smartphones and networking equipment by the licensees increased, which contributed to increasing technology royalty revenue.
Software and services
Software and services revenues were flat year on year.
Segment income
Segment loss was ¥13,340 million, deteriorating by ¥2,167 million year on year. This was due to an increase inpersonnel expenses as a result of the ongoing hiring of employees, mainly technology-related personnel, to enhance the R&D capabilities. The number of Arm employees increased 744 (12.3%) from the end of the same
period of the previous fiscal year, to 6,808 at the first quarter-end.

24

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

OPERATIONSRoyalty units7

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

2019

2020

Jan toMar

Apr toJun

Jul toSep

Oct toDec

Jan toMar

4.8 billion

5.6 billion

6.4 billion

6.0 billion

5.5 billion(9.4%)

0.2%

3.2%

11.1%

14.6%

Arm’s licensees reported shipments of 5.5 billion Arm-based chips for the three-month period ended March 31,
2020. Arm’s unit shipments increased 14.6% year on year, while shipments by the Arm relevant part of the semiconductor industry increased 4.3%8 during the same period. However, as mentioned in “Industry trends and theirimpact” above, it is likely that fewer chips will be sold this fiscal year than otherwise would be due to the outbreakof COVID-19 and other impacts. Despite fewer chips being sold, as the use of Arm technology increases, Armstill expects to continue to maintain or gain share in its target end markets.
TECHNOLOGY DEVELOPMENT
Arm considers the following as its primary areas for increased investment and is evolving the technology in both
its mobile business and other businesses with strong growth potential.
Arm’s primary investment areas and main developments
Mobile computing
Opportunity:

The first quarter:

Infrastructure
Opportunity:

The first quarter:

Automotive
Opportunity:

The first quarter:

Arm already has over 95% share of the main chips in mobile devices and, over time, hasbeen successfully increasing royalties per chip.
Arm announced the introduction of a new technology family for premium smartphones, including a processor, a machine learning accelerator, and a graphics processor.
Arm has a growing share in networking infrastructure and a nascent share in data center
servers.
· Supercomputer Fugaku with Arm technology for servers, jointly developed by RIKEN
and Fujitsu Limited, ranked number one in the TOP500, a global ranking based on calculation speed of supercomputers.
· Amazon Web Services Inc. launched two new Arm-based Graviton2 services optimized
for compute-intensive and memory-intensive applications.
As vehicles become smarter, they require more computational capability. Arm is well positioned to gain share by providing energy efficiency and Arm processor technology has already been licensed by most companies that develop automotive chips.
Arm announced the development of new software that enables its graphics processors to beshared by different applications within a vehicle such as infotainment and the dashboard.
AUDI AG and Samsung Electronics Co., Ltd. are among customers implementing Arm’sgraphics IP in vehicles to be launched in 2022.

7 This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for the threemonth period ended March 31, 2020, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments ofroyalty units one quarter in arrears, and therefore, the current quarter’s royalty unit analysis is based on chips shipped in the priorquarter. In contrast, technology royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.
8 Worldwide Semiconductor Trade Statistics (WSTS) as of July 2020. Excludes memory and analog chips, which do not contain processor technology. This data is compiled on the basis of data submitted by semiconductor companies participating in the survey.

25

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

IoT
Opportunity:

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

For more information about Arm, its business, and its technology, please refer to its website at https://www.arm.com(e) Brightstar Segment(Millions of yen)Three months ended June 30
2019

2020

ChangeChange %Net sales

233,370

172,763(60,607)(26.0%)

Segment income (income before income tax)

(2,863)(1,063)

1,800-(f) Other(Millions of yen)Three months ended June 30
2019

2020

ChangeChange %Net sales

42,89863,354

20,456

47.7%

Segment income (income before income tax)

(23,110)(8,689)14,421-

Depreciation and amortization(9,751)(12,807)(3,056)

31.3%

Gain (loss) on investments(3,203)31,73434,937-

Finance cost

(3,356)(3,870)

(514)

15.3%

Income on equity method investments

1,319

2,809

1,490

113.0%

Segment loss of ¥8,689 million was recorded for the Other segment, mainly due to PayPay Corporation, engaged
in smartphone payment services in Japan, recording loss before income tax of ¥15,811 million. The loss was
mainly attributed to the company’s continued marketing promotions aimed at gaining users and driving service
usage, and proactive measures to increase the number of stores where its services can be used.
The investment fund business in Latin America recorded income before income tax of ¥22,373 million due to apartial recovery in the fair values of investments from the previous fiscal year-end. As of the first quarter-end, thecumulative investment amount by the investment fund business in Latin America totaled $1,659 million, with afair value of $1,426 million.
Results of PayPay Corporation included in the Other segment(Millions of yen)Three months ended June 30
Net sales
Loss before income taxes

2019

2020

ChangeChange %

540

5,667

5,127

949.4%(16,206)(15,811)

395

-

26

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(2) Overview of Financial Position

1. Completion of the merger of Sprint and T-Mobile US, Inc.*1
Following the loss of control of Sprint, assets, liabilities, and equity related to a disposal group classified asheld for sale as of the previous fiscal year-end were removed.
2. Sale and monetization of assets in the first quarter
As a result of transactions (1) to (3) below, the Company received total proceeds of ¥3,622.3 billion.
(Other main impacts)(1) Partial sale of T-Mobile shares*1
Recorded T-Mobile shares continued to be held after the sale totaling ¥1,470.4 billion (as of the firstquarter-end) as investment securities.
(2) Entry into several prepaid forward contracts using Alibaba shares
Recoded financial liabilities relating to sale of shares by prepaid forward contracts of ¥1,738.1 billion (asof the first quarter-end).
(3) Partial sale of SoftBank Corp. shares
Changes in interests in subsidiaries of ¥194,721 million (increase in capital surplus)
3. Carrying amount of investments from SoftBank Vision Fund of ¥6.8 trillion, increased ¥136.0 billion
from the previous fiscal year-end*2
Fair values of investments centered on listed portfolio companies recovered due to a rebound in public equity
markets.
Notes:
1. For details on the completion of the merger of Sprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, see “(1) Completionof the merger of Sprint and T-Mobile US, Inc., partial sale of T-Mobile shares, etc.” on page 5 under “PROGRAM TO SELL OR
MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)” in “(1) Overview of Results of Operations”.
2. Investment in Arm is not included in investments from SoftBank Vision Fund as Arm is a subsidiary of the Company.
(Millions of yen)March 31, 2020

June 30, 2020

ChangeChange %Total assets

37,257,292

33,563,348(3,693,944)(9.9%)

Total liabilities

29,884,375

25,986,568(3,897,807)(13.0%)

Total equity

7,372,917

7,576,780

203,863

2.8%

27

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(a) Assets(Millions of yen)March 31, 2020

June 30, 2020

ChangeCash and cash equivalents

3,369,015

6,181,315

2,812,300A

Trade and other receivables

2,072,326

2,257,461

185,135

B

Other financial assets

313,487

262,857(50,630)

Inventories

185,097

183,805(1,292)Other current assets

460,970

485,611

24,641

Assets classified as held for sale

9,236,048-(9,236,048)

Total current assets

15,636,943

9,371,049(6,265,894)

Property, plant and equipment

1,264,516

1,324,370

59,854Right-of-use assets

1,293,692

1,199,484(94,208)

Goodwill

3,998,167

4,013,284

15,117

Intangible assets

1,985,972

1,951,311(34,661)

212,036

215,9143,878

Investments accounted for using the equity method

3,240,361

3,245,974

5,613

Investments from SoftBank Vision Fund and other
SBIA-managed funds accounted for using
FVTPL

6,892,232

7,039,042

146,810

6,681,671

6,817,661

135,990

1,211,511

3,175,696

1,964,185

F

59,278554,430

495,152

G

Other financial assets

1,100,694

1,114,517

13,823

Deferred tax assets

221,371

197,103(24,268)

Other non-current assets

140,519

161,174

20,655

Total non-current assets

21,620,349

24,192,299

2,571,950

Total assets

37,257,292

33,563,348(3,693,944)

Costs to obtain contracts(Incl.) SoftBank Vision Fund
Investment securities
Derivative financial assets

C

D

E

Reasons for changes by primary component
Components
Current assets
A Cash and cash equivalents

Main reasons for changes from the previous fiscal year-end
Cash and cash equivalents increased mainly due to the sale and monetization ofassets based on the ¥4.5 trillion program. For details, see “(3) Overview ofCash Flows.”

B Trade and other receivables

Accounts receivable of ¥242,653 million were recorded related to sale of investments in highly liquid listed shares using funds procured under the ¥4.5
trillion program and other surplus funds.

C Assets classified as held for sale

Sprint’s assets were removed as Sprint ceased to be a subsidiary of the Company following the completion of the merger of Sprint and T-Mobile US, Inc.

28

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Components

Main reasons for changes from the previous fiscal year-end

Non-current assets
D Right-of-use assets

SoftBank Corp. conducted regular amortization of right-of-use assets.

E Investments from SoftBank
Vision Fund and other SBIAmanaged funds accounted forusing FVTPL

Fair value of investments held by SoftBank Vision Fund at the first quarter-end
increased by $2.4 billion (net) due to recovery in the fair values of investments
centered on listed portfolio companies, following the rebound in the public equity markets. The fund also made follow-on investments in existing portfolio
companies and their joint ventures. On the other hand, the fund sold a portionof its shares in four portfolio companies and all shares of a portfolio company.
For details, see “(b) SoftBank Vision Fund and Other SBIA-Managed Funds
Segment” under “b. Results by Segment” in “(1) Overview of Results of Operations.”

F Investment securities· T-Mobile shares continued to be held after the sale of a portion of its shares
totaling ¥1,470,434 million were recorded. For details, see “(1) Completion of
the merger of Sprint and T-Mobile US, Inc., partial sale of T-Mobile shares,etc.” on page 5 under “PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)” in “(1) Overview of Results of Operations.”· Investment securities increased by ¥365,203 million due to investments inhighly liquid listed shares using funds procured under the ¥4.5 trillion program and other surplus funds.

G Derivative financial assets· Derivative financial assets of ¥325,962 million were recorded related to theCompany’s right to acquire T-Mobile shares for no additional consideration if
certain conditions are met, which was received as consideration for the merger of Sprint and T-Mobile US, Inc.
· Derivative financial assets of ¥113,966 million were recorded related to prepaid forward contracts using Alibaba shares.

29SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(b) Liabilities(Millions of yen)March 31, 2020

June 30, 2020

Change3,845,153

3,525,262(319,891)

Lease liabilities

378,383

357,220(21,163)

Deposits for banking business

873,087

982,225

109,138

Third-party interests in SoftBank Vision Fund andother SBIA-managed funds

24,691

58,08033,3891,585,326

1,604,379

19,053

9,267

157,628

148,361

Other financial liabilities

248,010203,094(44,916)

Income taxes payables

164,298

217,330

53,032

Provisions

11,44828,606

17,158Other current liabilities

596,499491,255(105,244)

B

Liabilities directly relating to assets classified asheld for sale

6,454,971-(6,454,971)

C

Total current liabilities

14,191,133

7,625,079(6,566,054)

Interest-bearing debt

9,286,729

11,281,105

1,994,376

761,943

705,522(56,421)4,559,728

5,175,360

615,632

Derivative financial liabilities

128,075

124,734(3,341)Other financial liabilities

77,207

116,898

39,691

Provisions

88,79185,408(3,383)

Deferred tax liabilities

711,216

798,001

86,785

Other non-current liabilities

79,55374,461(5,092)

Total non-current liabilities

15,693,242

18,361,489

2,668,247

Total liabilities

29,884,375

25,986,568(3,897,807)

Interest-bearing debt

Trade and other payables
Derivative financial liabilities

Lease liabilities
Third-party interests in SoftBank Vision Fund andother SBIA-managed funds

A

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

Main reasons for changes from the previous fiscal year-end
Derivative financial liabilities of ¥147,497 million were recorded for the call
options received by Deutsche Telekom for T-Mobile shares held by theCompany.

B Other current liabilities

Withholding income tax of ¥102,100 million was paid related to dividends
from Yahoo Japan Corporation to Z Holdings Corporation that arose in theprevious fiscal year.

C Liabilities directly relating toassets classified as held for sale

Sprint’s liabilities were removed as Sprint ceased to be a subsidiary of theCompany following the completion of the merger of Sprint and T-Mobile
US, Inc.

30

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)(Millions of yen)

SoftBank Group Corp. and wholly owned
subsidiaries conducting fund procurement*1
SoftBank Group Corp.
Borrowings
Corporate bonds
Commercial paper
Wholly owned subsidiaries conducting fundprocurement*1
Borrowings
Financial liabilities relating to sale of shares by
prepaid forward contracts
SoftBank Vision Fund and Other SBIA-Managed
Funds segment
SoftBank Vision Fund
Borrowings
SBIA
Lease liabilities
SoftBank segment
SoftBank Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Z Holdings Corporation*2
Borrowings
Corporate bonds
Lease liabilities
Other subsidiaries
OthersOther interest-bearing debt
Lease liabilities
Total

March 31, 2020

June 30, 2020

Change8,247,063
6,528,734
1,388,240
5,034,494
106,000

9,764,920
6,318,830
1,334,806
4,939,024
45,0001,517,857(209,904)(53,434)(95,470)(61,000)

1,718,329
1,522,228

3,446,090
1,513,025

1,727,761(9,203)

196,101

1,933,065

1,736,964

581,543
581,543535
535

159,072
159,072425
425(422,471)(422,471)
(110)
(110)

3,828,904
2,856,027
40,000832,877
100,000
839,042
463,598354,327
21,117413,127

4,226,386
3,292,854
40,000764,432
129,100
949,324
376,739553,747
18,838397,785

397,482
436,827(68,445)
29,100110,282(86,859)
199,420(2,279)(15,342)

259,801
102,193265,939
105,258

6,138
3,065

14,272,208

15,869,109

1,596,901

Notes:
1. Indicates the interest-bearing debts of Skywalk Finance GK, which made borrowings using Alibaba shares; West Raptor Holdings,
LLC, West Raptor Holdings 2, LLC, Skybridge LLC, and Skylark 2020 Holdings Limited, which entered into prepaid forward
contracts using Alibaba shares; and Moonlight Finance GK, which made borrowings using SoftBank Corp. shares. These interestbearing debts are non-recourse to SBG.
2. Includes the interest-bearing debt and lease liabilities of Yahoo Japan Corporation.

31

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Reasons for changes from previous fiscal year-end at core companies
SBG and wholly owned subsidiaries conducting fund procurement
SBG
・SBG redeemed domestic straight corporate bonds of ¥100 billion.
・SBG repaid commercial paper in the amount of ¥61.0 billion (net).
(Wholly owned subsidiaries conducting fund procurement)
West Raptor Holdings 2, LLC, Skybridge LLC, and Skylark 2020 Holdings Limited
Wholly owned subsidiaries conducting fund procurement entered into several prepaid forward contracts using
Alibaba shares with financial institutions from April to June 2020. As a result, financial liabilities relating to saleof shares by prepaid forward contracts of ¥1,738,128 million were recorded at the first quarter-end.
SoftBank Vision Fund and Other SBIA-Managed Funds segment
・SoftBank Vision Fund repaid $3.08 billion of borrowings from a line of credit set up mainly to increase capitalefficiency to fund investments (the “Fund Level Facility”). No borrowings were outstanding as of the first quarter-end.
・SoftBank Vision Fund repaid $0.79 billion of borrowings made for the purpose of monetizing a portion of its
investments (the “Portfolio Financing Facility”).
SoftBank segment
SoftBank Corp.
Borrowings increased mainly due to the securitization of receivables related to telecommunications and the saleand leaseback of telecommunications equipment.
Z Holdings Corporation
Domestic straight corporate bonds totaling ¥200 billion were issued.

32

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(c) Equity(Millions of yen)March 31, 2020

June 30, 2020

ChangeCommon stock

238,772

238,772-

Capital surplus

1,490,325

1,666,102

175,777

496,876

496,876-

Retained earnings

3,945,820

5,155,983

1,210,163

B

Treasury stock(101,616)(686,497)(584,881)

C

Accumulated other comprehensive income(362,259)(338,799)

23,460

Accumulated other comprehensive income directly relating to assets classified as held for sale205,695-(205,695)

Total equity attributable to owners of the parent

5,913,613

6,532,437

618,824

Non-controlling interests

1,459,304

1,044,343(414,961)

Total equity

7,372,917

7,576,780

203,863

Other equity instruments

A

D

E

Reasons for changes by primary component
Components
A Capital surplus

Main reasons for changes from the previous fiscal year-end
Changes in interests in subsidiaries of ¥194,721 million were recorded in conjunction with the sale of a portion of SoftBank Corp. shares.

B Retained earnings

Net income attributable to owners of the parent of ¥1,255,712 million was recorded.

C Treasury stock· The Company repurchased 102,960,000 of its own shares for ¥484.0 billion in thefirst quarter (4,720,000 shares for ¥16.0 billion in the previous fiscal year). This isin accordance with a resolution of the Board of Directors on March 13, 2020 to repurchase the Company’s own shares, with a maximum total repurchase amount of¥500 billion.
· The Company repurchased 18,717,000 of its own shares for ¥101.7 billion in thefirst quarter. This is in accordance with a resolution of the Board of Directors on
May 15, 2020 to repurchase the Company’s own shares, with a maximum total repurchase amount of ¥500 billion.

D Accumulated other comprehensive income directly
relating to assets classified
as held for sale

Sprint’s accumulated other comprehensive income was removed as Sprint ceased to
be a subsidiary of the Company following the completion of the merger of Sprint
and T-Mobile US, Inc.

E Non-controlling interests

Sprint’s non-controlling interests of ¥424,746 million (as of the previous fiscal yearend) were removed as Sprint ceased to be a subsidiary of the Company following thecompletion of the merger of Sprint and T-Mobile US, Inc.

33

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(3) Overview of Cash Flows

Progress made on sale and monetization of assets and share repurchases based on the ¥4.5 trillion
program Received total proceeds of ¥3,622.3 billion in the first quarter through the partial sale of T-Mobile shares,
prepaid forward contracts using Alibaba shares, and partial sale of SoftBank Corp. shares.
 Repurchased ¥101.7 billion of own shares (combined with share repurchase resolved before the ¥4.5
trillion program, repurchased total of ¥585.7 billion of own shares in the first quarter).
(Millions of yen)Three months ended June 30
2019
2020

ChangeCash flows from operating activities(547,191)

154,024

701,215

Cash flows from investing activities(1,367,991)

1,241,103

2,609,094

Cash flows from financing activities

1,026,301

1,415,375

389,074

Note: Cash flows from discontinued operations are included. For details on cash flows from discontinued operations, see “3. Discontinued operations” under in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim
Consolidated Financial Statements and Primary Notes.”(a) Cash Flows from Operating Activities

Income taxes paid in the first quarter included payment of withholding income tax of ¥102,100 million related todividends from Yahoo Japan Corporation to Z Holdings Corporation that arose in the previous fiscal year. This
withholding income tax was refunded in July 2020. Income taxes paid in the same period of the previous fiscal
year included income taxes on items such as a gain on sale of SoftBank Corp. shares at SBGJ and withholding
income tax on dividends from SBGJ to SBG. The latter withholding income tax was refunded in July 2019.
(b) Cash Flows from Investing Activities

Primary components
Components
Payments for acquisition of investments¥(1,100,223) million

Primary details
SBG acquired highly liquid listed shares of ¥1,006.0 billion using
funds procured as part of the ¥4.5 trillion program and other surplus
funds.

Proceeds from sales/redemption of investments¥2,452,522 million· SBG received proceeds of ¥564.9 billion from the sale of a portionof the abovementioned listed shares.
· SBG received proceeds of ¥1,830.4 billion from the sale of a portion of its T-Mobile shares held through a subsidiary.

Payments for acquisitions of investments
by SoftBank Vision Fund and other
SBIA-managed funds¥(120,091) million

SoftBank Vision Fund made follow-on investments in existing portfolio companies and their joint ventures.

Proceeds from sale of investments by SoftBank Vision Fund and other SBIA-managed funds¥197,591 million

SoftBank Vision Fund sold a portion of its shares in four listed portfolio companies and all shares of an unlisted portfolio company.

Outlays for purchase of property, plant andequipment, and intangible assets¥(149,661) million

SoftBank Corp. purchased telecommunications equipment including
equipment for 5G.

34

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(c) Cash Flows from Financing Activities

Primary components
Components
Proceeds in short-term interestbearing debt, net¥268,170 million
Proceeds from interest-bearing debt
¥2,143,570 million
Proceeds from borrowings¥461,854 million*1

Primary details
SoftBank Corp. borrowed ¥298.0 billion (net) through the securitization of receivables related to telecommunications.

· Z Holdings Corporation made short-term borrowings of ¥109.5 billion.
· SoftBank Corp. borrowed ¥108.3 billion through the sale of installment salesreceivables and ¥84.9 billion through the sale and leaseback of telecommunications equipment.

Proceeds from issuance of
bonds¥200,000 million

Z Holdings Corporation issued domestic straight corporate bonds totaling¥200 billion.

Proceeds from procurement by
prepaid forwards contract using shares¥1,481,716 million

Wholly owned subsidiaries of the Company conducting fund procurement entered into several prepaid forward contracts using Alibaba shares with financial institutions and procured an aggregate amount of ¥1,481.7 billion ($13.7
billion).

Repayment of interest-bearing debt¥(1,017,864) million
Repayment of borrowings¥(917,864) million*1· SoftBank Vision Fund repaid $3.08 billion of borrowings under the FundLevel Facility and $0.79 billion of borrowings under the Portfolio Financing
Facility.
· Z Holdings Corporation and SoftBank Corp. repaid borrowings of ¥210.0
billion and ¥148.0 billion, respectively.

Redemption of corporate
bonds¥(100,000) million

SBG redeemed domestic straight corporate bonds of ¥100 billion at maturity.

Contributions to SoftBank Vision
Fund and other SBIA-managed
funds from third-party investors¥764,660 million

SoftBank Vision Fund received cash contributions from third-party investors
based on capital calls.

Distribution/repayment from SoftBank Vision Fund and other
SBIA-managed funds to thirdparty investors¥(217,367) million

SoftBank Vision Fund made distributions and repayments of investments tothird-party investors.

Proceeds from the partial sales ofshares of subsidiaries to non-controlling interests¥310,200 million

SBG sold a portion of SoftBank Corp. shares it owns through a subsidiary for¥310.2 billion.

Purchase of treasury stock¥(585,699) million

SBG repurchased its own shares for ¥484.0 billion in accordance with a resolution of the Board of Directors on March 13, 2020 and ¥101.7 billion in accordance with a resolution of the Board of Directors on May 15, 2020.

Note:
1. Proceeds from borrowings and repayment of borrowings include proceeds of ¥220,746 million and outlays of ¥718,365 million,
respectively, related to borrowings with a contracted term of one year or less.

35SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(4) Forecasts

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

36

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Three-month Period Ended June 30, 2020(Specified subsidiary (three entities) excluded from the scope of consolidation)
On April 1, 2020 (EST), the merger of Sprint Corporation (“Sprint”) and T-Mobile US, Inc. in an all-stock transaction(“the Transaction”) was completed. Upon completion of the Transaction, Starburst I, Inc. and Sprint which were
specified subsidiaries of the Company, and Sprint Communications, Inc. which was a subsidiary of Sprint, were nolonger subsidiaries of the Company. The details are described in “Note 3. Discontinued operations” in “(6) Notes toCondensed Interim Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial
Statements and Primary Notes.”(2) Changes in Accounting Estimates(Changes in estimate for use of loss carryforwards)
On May 22, 2020, SoftBank Group Japan Corporation, a wholly-owned subsidiary of the Company, transferred a
portion of SoftBank Corp. shares (ownership percentage: 5.0%)
As a result of the transaction, it was probable that taxable income would be available for a loss carry forward whose
deferred tax asset was not recognized in SoftBank Group Japan Corporation. Accordingly, a credit of income taxes(profit) was recorded due to the change in estimate. The details are described in “Note 7. Income taxes” in “(6) Notes
to Condensed Interim Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial
Statements and Primary Notes.”(Allowance for loan commitment losses)
As of June 30, 2020, expected credit losses for a loan commitment for WeWork, an equity method associate of theCompany, were estimated. As a result, reversal of allowance was recorded for the three-month period ended June 30,
2020. The details are described “Note” in “Note 15. Other gain (loss)” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary
Notes.”

37

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

3. Condensed Interim Consolidated Financial Statements and Primary Notes(Definitions of company names and abbreviations used in the condensed interim consolidated financial statements and primarynotes)
Company names and abbreviations used in the condensed interim consolidated financial statements and primary notes,
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.
SoftBank Vision Fund

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

SBIA

SB Investment Advisers (UK) Limited

SprintSprint Corporation

T-Mobile

T-Mobile US, Inc. after merging with SprintArm

Arm Limited

Brightstar

Brightstar Global Group Inc.

Fortress

Fortress Investment Group LLC

Alibaba

Alibaba Group Holding Limited

WeWork

The We Company

38

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

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

As ofMarch 31, 2020
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Subtotal
Assets classified as held for sale
Total current assets
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 SoftBank Vision Fund and other
SBIA-managed funds accounted for using FVTPL
Investment securities
Derivative financial assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

39

As of
June 30, 2020

3,369,015
2,072,326
313,487
185,097
460,970
6,400,895
9,236,048
15,636,943

6,181,315
2,257,461
262,857
183,805
485,611
9,371,049
9,371,049

1,264,516
1,293,692
3,998,167
1,985,972
212,0363,240,361

1,324,370
1,199,484
4,013,284
1,951,311
215,9143,245,974

6,892,232

7,039,042

1,211,511
59,2781,100,694
221,371
140,519
21,620,349
37,257,292

3,175,696
554,430
1,114,517
197,103
161,174
24,192,299
33,563,348

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(Millions of yen)

As ofMarch 31, 2020
Liabilities and equity
Current liabilities
Interest-bearing debt
Lease liabilities
Deposits for banking business
Third-party interests in SoftBank Vision Fund and other
SBIA-managed funds
Trade and other payables
Derivative financial liabilities
Other financial liabilities
Income taxes payables
Provisions
Other current liabilities
Subtotal
Liabilities directly relating to assets
classified as held for sale
Total current liabilities
Non-current liabilities
Interest-bearing debt
Lease liabilities
Third-party interests in SoftBank Vision Fund and other
SBIA-managed funds
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityEquity attributable to owners of the parent
Common stock
Capital surplus
Other equity instruments
Retained earnings
Treasury stock
Accumulated other comprehensive income
Subtotal
Accumulated other comprehensive income directly
relating to assets classified as held for sale
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

40

As of
June 30, 2020

3,845,153
378,383
873,087

3,525,262
357,220982,225

24,691

58,0801,585,326
9,267
248,010
164,298
11,448596,499
7,736,162

1,604,379
157,628
203,094
217,330
28,606491,255
7,625,079

6,454,971-

14,191,133

7,625,079

9,286,729
761,943

11,281,105
705,5224,559,728

5,175,360

128,075
77,20788,791
711,216
79,553
15,693,242
29,884,375

124,734
116,898
85,408798,001
74,461
18,361,489
25,986,568

238,772
1,490,325
496,876
3,945,820(101,616)(362,259)
5,707,918

238,772
1,666,102
496,876
5,155,983(686,497)(338,799)
6,532,437

205,695-

5,913,613

6,532,437

1,459,304
7,372,917
37,257,292

1,044,343
7,576,780
33,563,348

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement ofComprehensive Income
Condensed Interim Consolidated Statement of Income(Millions of yen)Three-month period ended Three-month period ended
June 30, 2019
June 30, 2020
Continuing operations1
Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of Holding
Companies
Gain on investments at SoftBank Vision Fund and other
SBIA-managed funds
Gain on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative gain (loss) (excluding gain (loss) on
investments)
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds
Other gain (loss)
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations1
Net income from discontinued operations
Net income
Net income attributable to
Owners of the parent
Net income from continuing operations
Net income from discontinued operations
Non-controlling interests
Net income from continuing operations
Net income from discontinued operations

Earnings per share3
Basic earnings per share (Yen)Continuing operations
Discontinued operations
Total basic earnings per share
Diluted earnings per share (Yen)Continuing operations
Discontinued operations
Total diluted earnings per share41

1,480,292(812,731)
667,561

1,450,055(742,235)
707,820

1,226,250

650,493

414,419

296,577

6,364
1,647,033(457,370)(71,822)
91,57335,882
982,952(513,875)(78,132)
6,416

2,575

(176,257)(184,488)(147,643)(54)
1,695,008(506,813)
1,188,195

51,766
833,047(253,055)
579,992(10,716)
1,177,479

736,429
1,316,421

1,121,719
1,130,457(8,738)55,76057,738(1,978)
1,177,479

1,255,712
519,283
736,42960,70960,7091,316,421

539.09(4.20)
534.89252.51363.44615.95536.27(4.18)
532.09227.02362.94589.96

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Notes:
1. Continuing operations and discontinued operations are presented separately for the fiscal year ended March 31, 2020. In order toreflect the change, the presentation has been reclassified similarly for the three-month period ended June 30, 2019. The details
are described in “Note 3. Discontinued operations.”
2. Presentation method for the condensed interim consolidated statement of income has been changed for the thee-month period
ended June 30, 2020. The details are described in “Note 1. Changes in presentation.”
3. The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Basic earnings per share” and “Diluted
earnings per share” are calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31,
2020.

Condensed Interim Consolidated Statement of Comprehensive Income(Millions of yen)Three-month period ended
June 30, 2019

Three-month period ended
June 30, 2020

1,177,479

1,316,421

(10)

1,947

(10)

1,947

566
22,981577
28,625(445,524)(219,091)(8,320)7,528(430,297)(182,361)(430,307)
747,172(180,414)
1,136,007

843,422605,272(96,250)

530,735

706,799

1,073,486

786,550

542,751(79,751)

530,735

40,373
747,172

62,521
1,136,007

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
or loss
Items that may be reclassified subsequently to
profit or loss
Debt financial assets at FVTOCI
Cash flow hedges
Exchange differences on translating foreign
operations
Share of other comprehensive income 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*Comprehensive income from continuing
operations
Comprehensive income from discontinued
operations
Total comprehensive income attributable to*
Owners of the parent
Comprehensive income from continuing
operations
Comprehensive income from discontinued
operations
Non-controlling interests

Note:* The details of discontinued operations are described in “Note 3. Discontinued operations.”

42

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the three-month period ended June 30, 2019
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2019
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2019
(after adjustments)
Comprehensive income
Net income
Other comprehensive
IncomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2019

Commonstock
238,772

Capitalsurplus1,467,762

Other equity
instruments

496,876

Retainedearnings
5,571,285

Treasurystock(443,482)---

13,997

238,772

1,467,762

496,876---

Accumulated
othercomprehensive
income290,268

Total
7,621,481--

13,997

5,585,282(443,482)

290,268

7,635,478-

1,121,719--

1,121,719

-

-

-

-

(414,920)(414,920)---

1,121,719-(414,920)

706,799---(23,184)--(23,184)

-

-

-

1,994

-

(1,994)

-

-

(739)

-

(582)

(210,450)-(211,771)---(558,136)

558,136---

78,407----78,407-(1,003)

-

-

-

-

(1,003)

-

1,259

-

-

-

-

1,259

-

1,578
-

-

-

-

-

1,578
-

-

79,502-(579,908)

347,686(1,994)(154,714)

238,772

1,547,264

496,876

6,127,093(95,796)(126,646)

8,187,563

43

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(Millions of yen)

As of April 1, 2019
Effect of retrospective
adjustments due to adoption of
new standards*
As of April 1, 2019
(after adjustments)
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2019

Noncontrollinginterests
1,387,723

Total equity
9,009,204(1,357)

12,6401,386,366

9,021,844

55,7601,177,479(15,387)(430,307)

40,373

747,172(84,146)(107,330)---(211,771)--(82,754)(4,347)-(1,003)-

1,259(2,809)739(1,231)
739(168,970)(323,684)

1,257,769

9,445,332

Note:* As a result of the adoption of IFRS 16 “Leases,” cumulative effects of retrospective adjustments are recognized as adjustments tothe opening balance of retained earnings.

44

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

For the three-month period ended June 30, 2020
(Millions of yen)

Equity attributable to owners of the parent
Accumulated

As of April 1, 2020
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes from loss of control
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests inassociates’ capital surplus
Share-based paymenttransactions
Other
Total transactions with owners
and other transactions
As of June 30, 2020

Commonstock
238,772

Capitalsurplus1,490,325

Other equity
instruments

496,876other
Retained
comprehensive
earnings
Treasury stockincome3,945,820(101,616)(362,259)

Subtotal
5,707,918---

1,255,712--

1,255,712

-

-

-

-

-

23,46923,469---1,255,712-

23,4691,279,181---(45,496)--(45,496)

-

-

-

9

-

(9)

-

-

-

-

(62)

(584,881)-(584,943)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

177,712

-

-

-

-

177,712-(3,692)

-

-

-

-

(3,692)

-

1,277

-

-

-

-

1,277

-

480

-

-

-

-

480

-

-

-

-

-

-

-

-

175,777-(45,549)(584,881)(9)(454,662)

238,772

1,666,102

496,876

5,155,983(686,497)(338,799)

6,532,437

45

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(Millions of yen)

Equity attributable to owners of the parent
Accumulated othercomprehensive income
directly relating to assets
classified as held for sale

As of April 1, 2020
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from businesscombination
Changes from loss of control
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of June 30, 2020

205,695

Total
5,913,613

Noncontrollinginterests
1,459,304-

1,255,712

60,7091,316,421(205,695)(182,226)

1,812(180,414)(205,695)

1,073,486

62,521

1,136,007-(45,496)(92,818)(138,314)

-

-

-

-

-

(584,943)-(584,943)

-

-

883

883

-

-

(425,889)(425,889)-

177,71239,858217,570-(3,692)-(3,692)

-

1,277

-

1,277

-

480
-

976
(492)

1,456
(492)

-

(454,662)(477,482)(932,144)-

6,532,437

1,044,343

7,576,780

46

Total equity
7,372,917

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(4) Condensed Interim Consolidated Statement of Cash Flows(Millions of yen)Three-month period ended
June 30, 2019
Cash flows from operating activities
Net income from continuing operations
Net income from discontinued operations
Net income
Depreciation and amortization
Gain on investments at Investment Business of Holding
Companies
Gain on investments at SoftBank Vision Fund and other
SBIA-managed funds
Finance cost
Income on equity method investments
Derivative (gain) loss (excluding (gain) loss on
investments)
Change in third-party interests in SoftBank Vision Fundand other SBIA-managed funds

Three-month period ended
June 30, 2020

1,188,195(10,716)
1,177,479
497,198

579,992
736,429
1,316,421
206,726(1,226,250)(650,493)(414,419)(296,577)

153,846(90,942)

78,132(6,416)(5,715)

176,257

184,488

147,643

Gain on other investments and other loss (gain)(9,789)(87,648)

Income taxes

504,865

253,055

26,429(51,832)(113,646)

50,590(3,204)(27,957)-(736,429)(71,908)(989,542)
2,366(547,191)

84,100504,200
8,584(66,486)(292,757)
483
154,024(431,742)
60,564(1,100,223)
2,452,522(681,649)(120,091)-

197,591-(12,151)(14,789)(18,784)

25,337

88,100(319,247)(149,661)(80,277)(62,062)

42,472
31,340(1,367,991)

5,146(39,284)
1,241,103

Decrease in trade and other receivables
Increase in inventories
Decrease in trade and other payables
Gain relating to loss of control over discontinued
operations
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash (used in) provided by operating activities

559,804
15,479(135,298)

Cash flows from investing activities
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SoftBank
Vision Fund and other SBIA-managed funds
Proceeds from sales of investments by SoftBank Vision
Fund and other SBIA-managed funds
Payments for acquisition of control over subsidiaries
Payments for acquisition of marketable securities for
short-term trading
Proceeds from sales/redemption of marketable securities
for short-term trading
Purchase of property, plant and equipment, and intangible
assetsPayments for loan receivables
Collection of loan receivables
Other
Net cash (used in) provided by investing activities

47

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(Millions of yen)Three-month period ended
June 30, 2019

Three-month period ended
June 30, 2020

468,575

268,1702,018,275(1,206,144)

2,143,570(1,017,864)

Repayment of lease liabilities
Contributions into SoftBank Vision Fund and other
SBIA-managed funds from third-party investors
Distribution/repayment from SoftBank Vision Fund andother SBIA-managed funds to third-party investors
Proceeds from the partial sales of shares of subsidiaries tonon-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
Purchase of treasury stock(195,149)(110,577)

345,672

764,660(68,409)(217,367)-

310,200(14,221)(1)(215,935)(585,699)

Cash dividends paid

(22,684)(44,404)

Cash dividends paid to non-controlling interests(79,801)(89,719)

Other(3,878)(5,594)

1,026,301

1,415,375

Effect of exchange rate changes on cash and cash equivalents(37,096)

1,798(Decrease) increase in cash and cash equivalents(925,977)

2,812,300

Cash and cash equivalents at the beginning of the period

3,858,518

3,369,015

Cash and cash equivalents at the end of the period

2,932,541

6,181,315

Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt

Net cash provided by financing activities

Notes:
1. Cash flows from continuing operations and cash flows from discontinued operations are included. The details are describedin “Note 3. Discontinued operations.”
2. Presentation method for the condensed interim consolidated statement of cash flows has been changed for the thee-month
period ended June 30, 2020. The details are described in “Note 1. Changes in presentation.”48

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(5) Significant Doubt about Going Concern Assumption
There are no applicable items.
(6) Notes to Condensed Interim Consolidated Financial Statements
1. Changes in presentation(Condensed interim consolidated statement of income)a. Continuing operations and discontinued operations are presented separately for the fiscal year ended March 31,
2020. In order to reflect the change, the presentation has been reclassified similarly for the three-month period
ended June 30, 2019. The details are described in “Note 3. Discontinued operations.”b. SoftBank Group Corp. is a strategic investment holding company that conducts investments and manages
investment portfolios in a number of companies directly (including investments through subsidiaries) or throughinvestment funds (such as SoftBank Vision Fund). The Company has been focusing on the investment activities
including those led by SoftBank Vision Fund that began its operation in 2017, thereby transforming businessstructures.
Following the completion of the merger between Sprint and T-Mobile US, Inc. on April 1, 2020, Sprint has been
no longer a subsidiary of the Company from that date. As a result, the materiality of the investment activities has
increased even further for the overall consolidated financial results of the Company. Consequently, the Company
has revised the presentation of the consolidated statement of income from the three-month period ended June 30,
2020. “Operating income,” as previously presented, did not include gain and loss on investments other than thoseincluded in “Operating income from SoftBank Vision Fund and other SBIA-managed funds.” Therefore, theCompany determined that it was no longer meaningful to appropriately present the consolidated financial results of
the Company as a strategic investment holding company. For these reasons, the Company determined not topresent “Operating income” in the consolidated statement of income from the three-month period ended June 30,
2020.
In connection with this change, the Company also determined to present “Gain (loss) on investments” in the
consolidated statement of income from the three-month period ended June 30, 2020 in order to clearly present
investment performance in the consolidated financial results of the Company. “Gain (loss) on investments”
includes realized gain and loss from sales of investments in financial assets at FVTPL for which investment
performance is measured at fair value, unrealized gain and loss on valuation of investments, dividend income frominvestments, derivative gain and loss relating to financial assets at FVTPL, and realized gain and loss from sales ofinvestments accounted for using the equity method.
Furthermore, the Company determined to present, as component of “Gain (loss) on investments,” “Gain (loss) on
investments at Investment Business of Holding Companies,” “Gain (loss) on investments at SoftBank Vision Fundand other SBIA-managed funds,” and “Gain (loss) on other investments.” Investment Business of Holding
Companies segment is included in the reportable segments from the three-month period ended June 30, 2020. The
details are described in “Note 4. Segment information.” Derivative gain and loss other than those mentioned above
are presented as “Derivative gain (loss) (excluding gain (loss) on investments).” In addition, income or loss onequity method investments arising from recognizing the Company’s share in profit or loss of the investees ispresented as “Income on equity method investments” as previously presented.
In order to reflect these changes in presentation, similar reclassifications have been made to the condensed interim
consolidated statement of income for the three-month period ended June 30, 2019. Details of the reclassifications
are as follows.

49SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

For the three-month period ended June 30, 2019
(Millions of yen)
Before changes in presentation(after reclassification of discontinued
operations)Continuing operations
Net sales
Cost of sales
Gross profit

Reclassification
amounts

1,480,292(812,731)
667,561-

After changes in presentation

Continuing operations
1,480,292 Net sales(812,731) Cost of sales
667,561 Gross profit
Gain (loss) on investments

Selling, general and administrative
expenses
Other operating income (loss)1-

1,226,250

1,226,250

Gain (loss) on investments at
Investment Business of Holding
Companies-

414,419

414,419

Gain (loss) on investments at
SoftBank Vision Fund and other
SBIA-managed funds

-

6,364
1,647,033(440,575)(16,795)(457,370)

6,364
Gain (loss) on other investments
1,647,033 Total gain (loss) on investments

827

(827)

-

Operating income (excluding operating
income from SoftBank Vision Fundand other SBIA-managed funds)

227,813(227,813)-

Operating income from SoftBank
Vision Fund and other
SBIA-managed funds2

397,630(397,630)-

625,443(71,822)(625,443)-(71,822)

90,746

827

91,573(6,546)

6,546-(10,812)

13,3872,575

1,218,527(1,218,527)-

27,354(27,354)-(184,488)-(184,488)

6,606
1,695,008(506,813)
1,188,195(6,606)(54)-

Operating income
Finance cost
Income (loss) on equity method
investments
Foreign exchange gain (loss)3
Derivative gain (loss)4
Gain relating to settlement ofvariable prepaid forward contracts
using Alibaba shares5
Gain (loss) from financial
instruments at FVTPL6
Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds
Other non-operating income (loss)7
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income from discontinued
operations
Net income(10,716)-

1,177,479-

50

Selling, general and administrative
expensesFinance cost
Income (loss) on equity method
investments
Derivative gain (loss)(excluding gain (loss) on
investments)

Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds(54) Other gain (loss)
1,695,008 Income before income tax(506,813) Income taxes
1,188,195 Net income from continuing operations
Discontinued operations
Net income from discontinued(10,716)
operations
1,177,479 Net income

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Notes:
1. Income and loss on equity method investments of ¥827 million at Fortress, which was previously presented in “Other
operating income (loss),” was reclassified as “Income (loss) on equity method investments.”
2. Of ¥397,630 million previously presented in “Operating income from SoftBank Vision Fund and other SBIA-managed
funds,” gain and loss on investments of ¥414,419 million was reclassified as “Gain (loss) on investments at SoftBank Vision
Fund and other SBIA-managed funds,” and other amounts of ¥(16,795) million and ¥6 million were reclassified as “Selling,
general and administrative expenses” and “Other gain (loss),” respectively.
3. ¥(6,546) million previously presented in “Foreign exchange gain (loss)” was reclassified as “Other gain (loss).”
4. Of derivative gain and loss relating to gain and loss on investments of ¥(13,387) million, which was previously presented in“Derivative gain (loss),” ¥(11,082) million and ¥(2,305) million were reclassified as “Gain (loss) on investments at
Investment Business of Holding Companies” and “Other gain (loss) on investments,” respectively.
5. ¥1,218,527 million previously presented in “Gain relating to settlement of variable prepaid forward contract using Alibaba
shares” was reclassified as “Gain (loss) on investments at Investment Business of Holding Companies.”
6. Of ¥27,354 million previously presented in “Gain (loss) from financial instruments at FVTPL,” ¥18,805 million and ¥8,549
million were reclassified as “Gain (loss) on investments at Investment Business of Holding Companies” and “Gain (loss) onother investments,” respectively.
7. Of ¥6,606 million previously presented in “Other non-operating income (loss),” dividend income of ¥120 million wasreclassified as “Gain (loss) on other investments” and other amount of ¥6,486 million was reclassified as “Other gain
(loss).”

51

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(Condensed interim consolidated statement of cash flows)
For the three-month period ended June 30, 2019
(Millions of yen)
Reclassification
amounts

Before changes in presentation

Cash flows from operating activities
Net income from continuing
operations
Net income from discontinued
operations
Net income

After changes in presentation

Cash flows from operating activities
Net income from continuing
1,188,195
operations
Net income from discontinued(10,716)
operations
1,177,479 Net income

1,188,195-(10,716)-

1,177,479-

497,198-

497,198-(1,226,250)(1,226,250)(Gain) loss on investments at
Investment Business of Holding
Companies(414,419)-(414,419)(Gain) loss on investments at
SoftBank Vision Fund and other
SBIA-managed funds

153,846-

153,846(90,115)(827)(90,942)

7,672(13,387)(5,715)(1,218,527)

1,218,527-(Gain) loss from financial
instruments at FVTPL4(27,496)

27,496-

Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds

184,488-

184,488

Foreign exchange (gain) loss andother non-operating (income) loss5(3,396)

3,396

-

-

(9,789)(9,789)504,865-

504,865

26,429-(51,832)-(113,646)-(72,742)559,804

834-

Depreciation and amortization(Gain) loss on investments at
SoftBank Vision Fund and other
SBIA-managed funds
Finance cost
(Income) loss on equity method
investments1
Derivative (gain) loss2(Gain) relating to settlement ofvariable prepaid forward contract
using Alibaba shares3

Income taxes(Increase) decrease in trade and otherreceivables(Increase) decrease in inventories
Increase (decrease) in trade and otherpayablesOther1
Subtotal

Depreciation and amortization

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

Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds(Gain) loss on other investments andother (gain) loss

Income taxes(Increase) decrease in trade and other
26,429receivables(51,832)(Increase) decrease in inventories
Increase (decrease) in trade and other(113,646)
payables(71,908)
Other
559,804 Subtotal

Notes:
1. Income and loss on equity method investments of ¥(827) million at Fortress, which was previously included in “Other,”
was reclassified as “(Income) loss on equity method investments.”
2. Of derivative gain and loss relating to gain and loss on investments of ¥13,387 million, which was previously presented
in “Derivative (gain) loss,” ¥11,082 million and ¥2,305 million were reclassified as “(Gain) loss on investments at
Investment Business of Holding Companies” and “(Gain) loss on other investments and other (gain) loss,” respectively.
3. ¥(1,218,527) million previously presented in “Gain relating to settlement of variable prepaid forward contract using
Alibaba shares” was reclassified as “(Gain) loss on investments at Investment Business of Holding Companies.”

52

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

4. Of ¥(27,496) million previously presented in “’(Gain) loss from financial instruments at FVTPL,” ¥(18,805) million and¥(8,691) million were reclassified as “(Gain) loss on investments at Investment Business of Holding Companies” and“(Gain) loss on other investments and other (gain) loss,” respectively.
5. ¥(3,396) million previously presented in “Foreign exchange (gain) loss and other non-operating (income) loss” wasreclassified as “(Gain) loss on other investments and other (gain) loss.”

2. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are the same as
the accounting policies applied to the consolidated financial statements for the fiscal year ended March 31, 2020,
except for the following. In addition, income taxes for the three-month period ended June 30, 2020 are calculated
based on the estimated effective tax rate for the fiscal year.
(Significant accounting policies for the SoftBank Vision Fund and Other SBIA-Managed Funds segment)
For SoftBank Vision Fund, the Company applies the following accounting policies.
a. Consolidation of SoftBank Vision Fund by the Company
SoftBank Vision Fund is a limited partnership established by its general partner which is a wholly-owned subsidiaryof the Company, and by its form of organization, qualifies as a structured entity. SoftBank Vision Fund isconsolidated by the Company for the following reasons.
The various entities comprising SoftBank Vision Fund make investment decisions through its investment committee,
which was established as a committee of SBIA. SBIA is an advisory company and is a wholly-owned subsidiary of
the Company. As such, the Company has power as defined under IFRS 10 “Consolidated Financial Statements”
over SoftBank Vision Fund. Furthermore, SBIA receives performance fees and the Company receives distributions
attributable to limited partners based on the investment performance as returns from SoftBank Vision Fund. The
Company has the ability to affect those returns through its power over SoftBank Vision Fund, and therefore, theCompany is deemed to have control as stipulated in IFRS 10 over SoftBank Vision Fund.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from
SoftBank Vision Fund are eliminated in consolidation.
b. Portfolio company investments made by SoftBank Vision Fund(a) Investments in subsidiaries
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies that theCompany is deemed to control under IFRS 10 are subsidiaries of the Company. Accordingly, their results ofoperations, 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 SoftBank Vision Fundare eliminated in consolidation.
(b) Investments in associates and joint ventures
Of the portfolio company investments made by SoftBank Vision Fund, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” are associatesof the Company, and the portfolio companies that are joint ventures of SoftBank Vision Fund when, as defined
under IFRS 11 “Joint Arrangements,” SoftBank Vision Fund has joint control with other investors undercontractual 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 SoftBank Vision Fund are accounted
for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as “Investments from
SoftBank Vision Fund and other SBIA-managed funds accounted for using FVTPL” in the condensed interim
consolidated statement of financial position. The payments for these investments are presented as “Payments for53SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

acquisition of investments by SoftBank Vision Fund and other SBIA-managed funds” under cash flows frominvesting activities in the condensed interim consolidated statement of cash flows.
(c) Other investments
Investments other than those in associates or joint ventures of the Company made by SoftBank Vision Fund areaccounted for as financial assets at FVTPL. The presentation of these investments in the condensed interim
consolidated statement of financial position and the condensed interim consolidated statement of cash flows are
the same as the above “(b) Investments in associates and joint ventures.”c. Contribution from limited partners to SoftBank Vision Fund
SoftBank Vision Fund issues capital calls to its limited partners (“Capital Call”).
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”) are classified as
financial liabilities, “Third-party interests in SoftBank Vision Fund and other SBIA-managed funds” in thecondensed interim consolidated statement of financial position, due to the predetermined finite life andcontractual payment provision to each of the limited partners at the end of the finite life within the limited
partnership agreement. The liabilities are classified as “financial liabilities measured at amortized cost” upon
initial recognition. The carrying amounts attributable to Third-Party Investors represent the amounts that would
be distributed in accordance with the limited partnership agreement in a theoretical liquidation scenario at theend of each quarter.
“Third-party interests in SoftBank Vision Fund and other SBIA-managed funds” fluctuates due to the results of
SoftBank Vision Fund in addition to contributions from Third-Party Investors in satisfaction of Capital Call, anddistributions and repayments of investments to Third-Party Investors. The fluctuations due to the results of
SoftBank Vision Fund are presented as “Change in third-party interests in SoftBank Vision Fund and other
SBIA-managed funds” in the condensed interim consolidated statement of income.
Contributions from Third-Party Investors to SoftBank Vision Fund are included in “Contributions into SoftBank
Vision Fund and other SBIA-managed funds from third-party investors” under cash flows from financing
activities in the condensed interim consolidated statement of cash flows. The distributions and repayments ofinvestments to Third-Party Investors are included in “Distribution/repayment from SoftBank Vision Fund andother SBIA-managed funds to third-party investors” under cash flows from financing activities in the condensed
interim consolidated statement of cash flows.
Uncalled committed capital from Third-Party Investors is not subject to IFRS 9, “Financial Instruments,” and,
therefore, such amount is not recorded in the condensed interim consolidated statement of financial position.
(b) Contribution from the Company
Contributions from the Company as limited partners are eliminated in consolidation.

54

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

3. Discontinued operations
As of March 31, 2020, it was highly probable that Sprint would merge with T-Mobile US, Inc. and would no longer
be a subsidiary of the Company. Accordingly, assets, liabilities, and accumulated other comprehensive income of
Sprint were reclassified as a disposal group classified as held for sale. The disposal group classified as held for sale
was measured at the carrying amount as the fair value of T-Mobile US, Inc. shares which the Company acquired
from the merger transaction was higher than the carrying amount of Sprint shares.
On April 1, Starburst I, Inc. which held Sprint shares and Galaxy Investment Holdings, Inc. were merged with andinto Huron Merger Sub LLC, a U.S. subsidiary of T-Mobile US, Inc. and directly owned by T-Mobile US, Inc., with
Huron Merger Sub LLC as the surviving company. In addition, Superior Merger Sub Corp., a U.S. subsidiary of
Huron Merger Sub LLC and directly owned by Huron Merger Sub LLC, was merged with and into Sprint, withSprint as the surviving company. As a result of the transactions, Sprint became a wholly-owned subsidiary of
T-Mobile which was a new company after the merger and owned Sprint indirectly.
As a result, Sprint was no longer a subsidiary of the Company and T-Mobile became an equity method associate of
the Company from that date. The difference between the total fair value less costs to sell as of April 1, 2020 for
acquired T-Mobile shares as consideration of the merger transaction and acquiring shares when certain contingency
is satisfied (the “contingent consideration”), and the carrying amount of Sprint (assets, liabilities, accumulated othercomprehensive income, and non-controlling interests in Sprint) was recorded as gain relating to loss of control forthe three-month period ended June 30, 2020. In addition, the carrying amount of non-controlling interests in Sprint at
the time of loss of control over Sprint is ¥424,746 million.
The Company surrendered to T-Mobile an aggregate of 48,751,557 shares of T-Mobile common stock, of the353,357,606 shares to be received from the Transaction, effective immediately following the closing of theTransaction. If the trailing 45-day volume-weighted average price per share of T-Mobile common stock on the
NASDAQ Global Select Market is equal to or greater than $150 at any time during the period commencing on thesecond anniversary of the closing date and ending on December 31, 2025, T-Mobile will re-issue to the Company,
for no additional consideration, a number of shares of T-Mobile common stock equal to the abovementioned numberof shares to be surrendered, subject to the terms and conditions included as part of the Business Combination
Agreement.
The Company recognizes the fair value of the contingent consideration as “Derivative financial assets (non-current)”
in the condensed interim consolidated statement of financial position and ¥196,313 million is recorded as of theacquisition date. In addition, changes in the fair value after the acquisition date is recognized as “Gain on
investments at Investment Business of Holding Companies” in the condensed interim consolidated statement ofincome.
Operating results related to Sprint for the three-month period ended June 30, 2019 and gain relating to loss of control
over Sprint for the three-month period ended June 30, 2020 are presented as discontinued operations, separately fromcontinuing operations, in the condensed interim consolidated statement of income.
In addition, of 304,606,049 shares of T-Mobile common stock held, 173,564,426 shares were transferred by theCompany on June 26, 2020. As a result of the transaction, due to the decrease in voting rights ratio resulted from theshare transfer, the Company had no significant influence over T-Mobile and T-Mobile was no longer considered as
an equity method associate of the Company. The details are described in “Note 17. Additional information.”

55

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(1) Disposal group classified as held for sale(Millions of yen)

As ofMarch 31, 2020

As ofJune 30, 2020

Assets classified as held for sale
Cash and cash equivalents

240,982-

Trade and other receivables

385,511

-

7,166

-

Other financial assets
Inventories

97,712-Other current assets

131,240-

Total current assets

862,611-

1,890,600-

763,529-

Property, plant and equipment
Right-of-use assets
Goodwill

322,978-

5,082,956-

Costs to obtain contracts
Investments accounted for using the equity
methodInvestment securities

196,438

-

3,049

-

3,225

-

Other financial assets

47,140-

Other non-current assets

63,522-

Total non-current assets

8,373,437-

Total assets

9,236,048-

331,881-

Lease liabilities

202,743-

Trade and other payables

395,415-

Income taxes payables

1,949

-

Provisions

8,720

-

Other current liabilities

292,041-

Total current liabilities

1,232,749-

Interest-bearing debt

3,591,777-583,348-

Derivative financial liabilities

5,189

-

Other financial liabilities

4,298

-

Provisions

81,261-

Deferred tax liabilities

746,834-

Other non-current liabilities

209,515-

Total non-current liabilities

5,222,222-

Total liabilities

6,454,971-

Intangible assets

Liabilities directly relating to assets classified asheld for saleInterest-bearing debt

Lease liabilities

56

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(Millions of yen)

As ofMarch 31, 2020
Accumulated other comprehensive income directly
relating to assets classified as held for sale
Cash flow hedges
Exchange differences on translating foreign
operations
Total accumulated other comprehensive income

As ofJune 30, 2020

(3,454)-

209,149-

205,695-

Three-month period ended
June 30, 2019
856,105(523,124)Three-month period ended
June 30, 2020-

Selling, general and administrative expenses(222,539)-

Finance cost

(82,024)-

Other
Income from discontined operations before
income tax
Income taxes
Income from discontined operations after income
tax
Income relating to loss of control overdiscontined operations*(41,082)-(12,664)

-

1,948

-

(10,716)--

736,429

Net income from discontinued operations(10,716)

736,429

Net income from discontinued operations
Other comprehensive income from discontinued
operations
Comprehensive income from discontinued
operations(10,716)

736,429(85,534)(205,694)(96,250)

530,735(2) Results of operations from discontinued operations(Millions of yen)

Net sales
Cost of sales

-

Note:
* Tax expense is presented as zero in the condensed interim consolidated statement of income because it is likely thattaxable income at SoftBank Group Corp. will not be generated for the fiscal year despite income related to discontinued
operations for the acquired contingent consideration at the time of the merger between Sprint and T-Mobile US, Inc.
was generated at SoftBank Group Corp.

(3) Cash flows from discontinued operations(Millions of yen)

Cash flows from operating activities

Three-month period ended
June 30, 2019
192,556

Three-month period ended
June 30, 2020
(10,975)

Cash flows from investing activities(154,706)-

Cash flows from financing activities(270,309)-(232,459)(10,975)

The disposal of Sprint shares as of April 1, 2020 was conducted as a share exchange with T-Mobile shares and arecorrespond to non-cash transaction.

57

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

4. 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.
For the fiscal year ended March 31, 2020, the Company had four reportable segments, the SoftBank Vision Fundand Other SBIA-Managed Funds segment, the SoftBank segment, the Arm segment, and the Brightstar segment.
Following the completion of the merger between Sprint and T-Mobile US, Inc. on April 1, 2020, Sprint has been
no longer a subsidiary of the Company from that date. As a result, the materiality of the investment activities has
increased even further for the overall consolidated financial results of the Company. Consequently, businesssegments that are regularly reviewed by the Company’s Board of Directors have been changed. Accordingly,
from the three-month period ended June 30, 2020, the Company has revised its segment classifications to thefollowing five reportable segments: the Investment Business of Holding Companies segment, the SoftBank
Vision Fund and Other SBIA-Managed Funds segment, the SoftBank segment, the Arm segment, and theBrightstar segment.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. as a
strategic investment holding company, investment activities in a wide range of sectors 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, andcertain subsidiaries of the Company that conduct investment or funding. Gain and loss on investments at
Investment Business of Holding Companies consists of gain and loss arising from investments held directly by
SoftBank Group Corp. or through subsidiaries of the Company. However, gain and loss on investments relating
to investments in subsidiaries including dividend income from subsidiaries and impairment loss on investments
in subsidiaries are excluded.
The SoftBank Vision Fund and Other SBIA-Managed Funds segment conducts, mainly through SoftBank Vision
Fund, investment activities in a wide range of technology sectors. Gain and loss on investments at SoftBank
Vision Fund and other SBIA-managed funds consists of gain and loss arising from investments held by SoftBank
Vision Fund including the investment in the Company’s subsidiary.
The SoftBank segment provides, mainly through SoftBank Corp., mobile communications services, sale ofmobile devices, fixed-line telecommunication services such as broadband services in Japan, and through Z
Holdings Corporation, internet advertising and e-commerce business.
The Arm segment provides, through Arm, designs of microprocessor intellectual property and related technology,
the sale of software tools, and software services.
The Brightstar segment provides, through Brightstar, distribution of mobile devices overseas.
Information on business segments which are not included in the reportable segments is classified in “Other.”“Other” includes mainly PayPay Corporation, Fortress, the investment fund business in Latin America, and the
Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of income onequity method investments recognized relating to PayPay Corporation, which is included in segment income of
the Softbank segment. Such income on equity method investments is eliminated because the Company
consolidates PayPay Corporation as its subsidiary and related amounts are also included in “Other.”Segment information for the three-month period ended June 30, 2019 is presented based on the reportablesegments after the aforementioned change.

58

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(2) Net sales and income of reportable segments
Income of reportable segments is defined as “Income before income tax.” In accordance with the change inpresentation of the consolidated statement of income where “Operating income” is no longer presented, which
has been implemented from the three-month period ended June 30, 2020, income of reportable segments to bereported to the Company’s Board of Directors in order to make decisions about the allocation of resources andassess its performance has been changed from “Operating income” to “Income before income tax.” The details
are described in “Note 1. Changes in presentation.” As in the consolidated statement of income, “Gain (loss) on
investments” included in segment income includes realized gain and loss from sales of investments in financial
assets at FVTPL for which investment performance is measured at fair value, unrealized gain and loss on
valuation of investments, dividend income from investments, derivative gain and loss relating to investments infinancial assets at FVTPL, and realized gain and loss from sales of investments accounted for using the equity
method. The Investment Business of Holding Companies segment calculates its segment income by eliminating
gain and loss on investments relating to investments in subsidiaries, including dividend income from subsidiaries
and impairment loss on investments in subsidiaries.
Intersegment transaction prices are determined under the same general business conditions as applied for externalcustomers.

59

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

For the three-month period ended June 30, 2019
(Millions of yen)

Reportable segments
SoftBank Vision Fund

Investment Businessand Otherof Holding Companies SBIA-Managed Funds

SoftBank

ArmBrightstar

Net sales
Customers--

1,162,590

45,843

233,370

Intersegment

-

-

1,996

88

-

Total

-

-

1,164,586

45,931

233,370

1,247,180

212,064

261,696(11,173)(2,863)

(464)

(52)

(164,949)(17,917)(1,771)1,226,250

414,419

9,373

55

139

(51,111)(1,901)(14,013)(302)(2,412)

88,883-(3,458)78

26

Segment income
Depreciation andamortization
Gain (loss) on
investments
Finance cost
Income (loss) on equity
method investments

Total
Net sales
Customers

Other

Reconciliations

Consolidated

1,441,803

38,489-1,480,292

2,084

4,409

(6,493)-

Total

1,443,887

42,898(6,493)

1,480,292

Segment income
Depreciation andamortization
Gain (loss) on
investments
Finance cost
Income (loss) on equity
method investments

1,706,904(23,110)

11,214

1,695,008(185,153)(9,751)-(194,904)

1,650,236(3,203)-

1,647,033(69,739)(3,356)

1,273(71,822)

85,529

1,319

4,725

91,573

Intersegment

60SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

For the three-month period ended June 30, 2020
(Millions of yen)

Reportable segments
SoftBank Vision Fund

Investment Businessand Otherof Holding Companies SBIA-Managed Funds

SoftBank

ArmBrightstar

Net sales
Customers--

1,166,974

48,986

172,763Intersegment

-

-

5,348

216

-

Total

-

-

1,172,322

49,202

172,763

Segment income
Depreciation andamortization
Gain on investments

458,897

129,630

259,249(13,340)(1,063)

(455)

(150)

(173,134)(18,298)(1,882)

650,493

296,577

4,116

-

32

Finance cost
Income (loss) on equity
method investments(53,150)(4,600)(16,256)(213)(1,633)

4,103-(9,006)

713

(157)

Total

Other

Reconciliations

Consolidated

Net sales
Customers
Intersegment
Total
Segment income
Depreciation andamortization
Gain on investments
Finance cost
Income (loss) on equity
method investments

1,388,723

61,332-1,450,055

5,564

2,022

(7,586)-

1,394,287

63,354(7,586)1,450,055

833,373(8,689)8,363

833,047(193,919)(12,807)-(206,726)

951,218

31,734-

982,952(75,852)(3,870)1,590(78,132)(4,347)

2,809

7,954

6,416

61

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

5. SoftBank Vision Fund and other SBIA-managed funds business(1) Income and loss arising from the SoftBank Vision Fund and other SBIA-managed funds businessa. Overview
Segment income arising from the SoftBank Vision Fund and other SBIA-managed funds business (income before
income tax) consists of income and loss arising from all entities, which are various entities comprising SoftBank
Vision Fund, general partners of the funds, and SBIA as a manager of the funds. Income and loss arising from
SoftBank Vision Fund attributable to Third-Party Investors are presented as “Change in third-party interests in
SoftBank Vision Fund and other SBIA-managed funds.” As a result, segment income from the SoftBank Vision Fundand other SBIA-managed funds business includes income and loss attributable to the Company as limited partners,
management fees and performance fees to SBIA.
b. Segment income arising from the SoftBank Vision Fund and other SBIA-managed funds business
The components of segment income arising from the SoftBank Vision Fund and other SBIA-managed funds businessare as follows:(Millions of yen)

Gain (loss) on investments at SoftBank Vision
Fund and other SBIA-managed funds
Realized gain on sales of investments
Unrealized gain (loss) on valuation of
investments
Change in valuation for the fiscal year
Reclassified to realized loss recorded in thepast fiscal year1
Dividend income from investments
Derivative gain on investments
Effect of foreign exchange translation2
Selling, general and administrative expenses

Three-month period ended
June 30, 2019

Three-month period ended
June 30, 2020-

111,425

408,514

258,056-(79,942)5,905
414,419(16,795)

2,888
815
3,335
296,577(14,342)

Finance cost (interest expenses)
Change in third-party interests in SoftBank Vision
Fund and other SBIA-managed funds
Other gain (loss)(1,901)(4,600)(184,488)(147,643)

829

(362)

Segment income arising from the SoftBank Vision
Fund and other SBIA-managed funds business(income before income tax)

212,064

129,630

Notes:
1. It represents the unrealized gains and losses on valuation of investments recorded as “Gain (loss) on investments at
SoftBank Vision Fund and other SBIA-managed funds” in the past fiscal years, which are reclassified to realized
gain and loss on sales of investments due to the sales of the shares.
2. Unrealized gains and losses on investments are translated using the average exchange rate for the quarter in which
the gains and losses were recognized, while realized gains and losses on disposal of investments are translated using
the average exchange rate for the quarter in which the shares were disposed. Foreign currency translation effects
are arising from the different foreign currency exchange rates used for unrealized gains and losses and realized
gains and losses.

62SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(2) Third-party interests in SoftBank Vision Funda. Terms and conditions of contribution from/ distribution to limited partners
Contributions by the limited partners are classified as “Equity” and “Preferred Equity” depending on the terms andconditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution and return ofcontribution.
Performance-based distributions attributed to limited partners, consisting of the Company and Third-Party Investors,
are calculated using the net proceeds from the investment performance of SoftBank Vision Fund. Those
performance-based distributions and performance fees attributed to SBIA will be allocated using the method
specified in the limited partnership agreement. The amount of performance-based distribution attributed to limited
partners will be allocated to each limited partner based on the proportion of their respective Equity contribution.
The amount of performance-based distributions is paid to each limited partner after SoftBank Vision Fund receives
cash through dividend, or disposition or monetization of investments.
Fixed distributions are defined as distributions of Preferred Equity holders which are calculated equal to a 7% rate
per annum based on their contributions. The fixed distributions are made every last business day of the months Juneand December.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled to performancebased distribution” and Third-Party Investors contributing Preferred Equity are defined as “Investors entitled to
fixed distribution.”b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SoftBank Vision Fund and other
SBIA-managed funds” included in the 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(Total of current liabilities and noncurrent liabilities)

Consolidated statement Consolidated statementof incomeof cash flows(Negative figures represent (Negative figures represent
expenses)
payments)(Breakdown)
As of April 1, 2020
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*

4,584,419

As of June 30, 2020

5,233,440

764,660-

764,660

147,643(147,643)-(217,367)-(217,367)(45,915)--

49,981
97,662Note:* Exchange differences were included in “Exchange differences on translating foreign operations” in the condensed
interim consolidated statement of comprehensive income.

63SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SoftBank Vision Fund’s Third-Party Investors as of June 30, 2020 was $9.8 billion.
(3)

Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA from SoftBank Vision Fund, included insegment income from the SoftBank Vision Fund and other SBIA-managed funds business, are as follows.
a. Management fees to SBIAManagement fees to SBIA are, in accordance with the limited partnership agreement, calculated by multiplying 1%
per annum by Equity contributions and paid to SBIA by SoftBank Vision Fund quarterly. A clawback provision is
attached to the management fees received, which is triggered under certain conditions based on future investment
performance.
b. Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is calculated using theallocation method as specified in the limited partnership agreement. SBIA is entitled to receive the performancefees when SoftBank Vision Fund receives cash through disposition, dividend and monetization of an investment.
From the inception of SoftBank Vision Fund to June 30, 2020, the cumulative amount of performance fees paid to
SBIA was $439 million. For the three-month period ended June 30, 2020, no performance fees were paid to SBIA.
In addition, the performance fees received are subject to clawback provisions which are triggered under certain
conditions based on future investment performance.

6. Derivative financial assets (non-current)
The increase was primarily due to the contingent consideration related to the acquisition of T-Mobile shares and the
prepaid forward contracts using Alibaba shares. The details are described in “Note 3. Discontinued operations” and“Notes 2” in “(1) Components of interest-bearing debt” under “Note 8. Interest-bearing debt.”

7. Income taxes
For the three-month period ended June 30, 2020
On May 22, 2020, as part of “SoftBank announces ¥4.5 trillion ($41 billion) program to repurchase shares and reducedebt” announced on March 23, 2020 (the “¥4.5 trillion program”), SoftBank Group Japan Corporation, a wholly-owned
subsidiary of the Company, transferred a portion of SoftBank Corp. shares (ownership percentage 5.0%) and received¥310,200 million of proceeds. As a result, the ownership percentage in SoftBank Corp. by the Company has changed
from 67.1% to 62.1%. As SoftBank Corp. remains a subsidiary, ¥96,081 million, the equivalent amount of income taxes
for gain on sales of SoftBank Corp. shares on a consolidation basis, is deducted from capital surplus as “Changes ininterests in subsidiaries.”
As a result of the transaction, it was probable that taxable income would be available for a loss carry forward whose
deferred tax asset was not recognized in SoftBank Group Japan Corporation and a credit of income taxes (profit) wasrecorded for ¥37,933 million. Furthermore, a deductible temporary difference, associated with an investment in
SoftBank Corp. whose deferred tax asset was not recognized, was reversed and a credit of income taxes (profit) wasrecorded for ¥20,214 million.

64

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

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

As ofMarch 31, 2020
Current
Short-term borrowings1
Commercial paper1
Current portion of long-term borrowings1
Current portion of corporate bonds
Current portion of installment payables
Total
Non-current
Long-term borrowings1
Corporate bonds
Installment payables
Financial liabilities relating to sale of shares by
prepaid forward contracts2
Total

As of
June 30, 2020

1,529,458
206,000
1,949,571
159,938
186
3,845,153

1,327,936
174,100
1,963,062
59,989175
3,525,262

3,821,473
5,268,883
272

3,875,026
5,472,782
232

196,101

1,933,065

9,286,729

11,281,105

Notes:
1. Long-term borrowings as of June 30, 2020 include ¥159,072 million (¥408,465 million of short-term borrowings, ¥10,883
million of current portion of long-term borrowings, and ¥162,195 million of long-term borrowings as of March 31, 2020)
in SoftBank Vision Fund.
2. For the fiscal year ended March 31, 2020, West Raptor Holdings, LLC (“WRH LLC”), a wholly-owned subsidiary of theCompany, entered into a prepaid forward contract using Alibaba shares with a financial institution. For the three-month
period ended June 30, 2020, as part of the “¥4.5 trillion program,” West Raptor Holdings 2, LLC (“WRH2 LLC”),
Skybridge LLC, and Skylark 2020 Holdings Limited (“Skylark Limited”), wholly-owned subsidiaries of the Company,
entered into several prepaid forward contracts using Alibaba shares with financial institutions.
a. Contract for the fiscal year ended March 31, 2020: Procured amount ¥179,145 million ($1.65 billion)
The settlement is expected in October 2021 and November 2021. The number of Alibaba shares settled by the prepaid
forward contracts is determined by reference to the market price of the shares at the valuation dates prior to thesettlement dates. A cap and a floor are set for the price of shares settled.
b. Contract for the three-month period ended June 30, 2020: Procured total amount ¥1,481,716 million ($13.7 billion)(a) Forward contract: Procured amount ¥161,610 million ($1.5 billion)
The settlement is expected in April 2024. The share price and the number of Alibaba shares settled by the prepaid
forward contracts are fixed regardless of changes in market share price in the future.
(b) Floor contract: Procured amount ¥161,853 million ($1.5 billion)
The settlement is expected in December 2023 and January 2024. The number of Alibaba shares settled by the prepaid
forward contracts is determined by reference to the market price of the shares at the valuation dates prior to thesettlement dates. A floor is set for the price of shares settled.
(c) Collar contract: Procured amount ¥918,531million ($8.5 billion)
The settlement is expected from January 2022 to September 2022. The number of Alibaba shares settled by the prepaid
forward contracts is determined by reference to the market price of the shares at the valuation dates prior to thesettlement dates. A cap and a floor are set for the price of shares settled.

65SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020(d) Collar contract and call spread: Procured amount ¥239,722 million ($2.2 billion)
The settlement is expected from May 2024 to June 2024. The number of Alibaba shares settled by the prepaid forward
contracts is determined by reference to the market price of the shares at the valuation dates prior to the settlement dates.
A cap and a floor are set for the price of shares settled. In addition to the prepaid forward contracts, the call spread(combination of long position of call option and short position of call option with different strike prices) contract isentered into in preparation for Alibaba shares price rise. A portion of the procured amount is used for the payment of
option premium.
The above prepaid forward contracts are classified as hybrid financial instruments with embedded derivatives and theembedded derivatives are measured at fair value and the call spread is measured at fair value as well. Embedded
derivatives are recognized for ¥113,966 million as “Derivative financial assets (non-current)” and for ¥28,107 million
as “Derivative financial liabilities (non-current)” and the call spread is recognized for ¥28,032 million as “Derivative
financial assets (non-current)” in the condensed interim consolidated statement of financial position as of June 30, 2020.
WRH LLC, WRH2 LLC, Skybridge LLC, and Skylark Limited have the option to settle all of the prepaid forward
contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If WRH LLC, WRH2 LLC,
Skybridge LLC, and Skylark Limited elect cash settlement, WRH LLC, WRH2 LLC, Skybridge LLC, and Skylark
Limited 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 WRH LLC, WRH2 LLC, Skybridge LLC, and Skylark Limited are pledged as collateral inaccordance with all of the prepaid forward contracts, and the Company granted right of use to the financial institutions
with respect to such shares. However the collateral can be released by cash settlement at the discretion of WRH LLC,
WRH2 LLC, Skybridge LLC, and Skylark Limited. Alibaba continues to be an equity method associate of the Company
after the completion of these transactions because the Company still has significant influence over Alibaba via voting
rights. Alibaba shares pledged as collateral by the Company are recognized as “Investments accounted for using theequity method” in the condensed interim consolidated statement of financial position as of June 30, 2020 and thecarrying amount is ¥408,557 million.

(2) Components of proceeds in 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)Three-month period ended Three-month period ended
June 30, 2019
June 30, 2020
411,575
354,170
57,000(86,000)
468,575
268,170

Net increase of short-term borrowings
Net increase (decrease) of commercial paper
Total(3) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)

Proceeds from borrowings
Proceeds from issuance of corporate bonds
Proceeds from procurement by prepaid forwards contract
using shares*
Total

66

Three-month period ended Three-month period ended
June 30, 2019
June 30, 2020
1,518,275
461,854500,000
200,000-

1,481,716

2,018,275

2,143,570

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Note:
*The amount is procured under the prepaid forward contracts using Alibaba shares. The details are described in “Notes 2” under“(1) Components of interest-bearing debt.”(4) Components of repayment of interest-bearing debt
The components of “Repayment of interest-bearing debt” in the condensed interim consolidated statement of cash
flows are as follows:(Millions of yen)Three-month period ended Three-month period ended
June 30, 2019
June 30, 2020
(712,884)(917,864)(490,235)(100,000)(3,025)(1,206,144)(1,017,864)

Repayment of borrowings
Redemption of corporate bonds
Payment of installment payables
Total

9. Financial instruments
Option contracts included in derivative financial assets and liabilities are mainly as follows:
Option contracts to which hedge accounting is not applied(Millions of yen)
As ofJune 30, 2020
Carrying amount(fair value)
AssetsLiabilities

As ofMarch 31, 2020
Carrying amount(fair value)
AssetsLiabilities
Contingent consideration relating to acquisition of
T-Mobile shares1
Prepaid forward contracts using Alibaba shares2
Call spread contract relating to prepaid forward
contracts using Alibaba shares2
Short call option for T-Mobile shares to Deutsche
Telekom AG3--

325,962

-

5,009

-

113,966(28,107)--

28,032----(147,497)

Notes:
1. Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. The details are described in “Note 3.
Discontinued operations.”
2. Increase was due to prepaid forward contracts using Alibaba shares and call spread contract relating to prepaid forward
contracts using Alibaba shares. The details are described in “Notes 2” in “(1) Components of interest-bearing debt” under“Note 8. Interest-bearing debt.”
3. Call options for T-Mobile shares which the Company granted to Deutsche Telekom AG (“Deutsche Telekom”) in relation
to the transfer of T-Mobile share. The details are described in “Note 17. Additional information.”

67

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

10. 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

As ofMarch 31, 2020
108.8315.31
133.32(Yen)
As ofJune 30, 2020
107.74
15.23-

Three-month period ended
June 30, 2019110.0016.13
140.88(Yen)
Three-month period ended
June 30, 2020
107.74
15.16
-

USD
CNY
GBP*

(2) Average rate for the quarter

USD
CNY
GBP*

Note:
* For the three-month period ended June 30, 2020, Arm Limited, a subsidiary of the Company, changed its functional
currency from British pound to U.S. dollar.
This change was made based on the judgement that the primary economic environment in which Arm Limited operates
had changed mainly due to the increase in proportion of the U.S. dollar denominated costs to the total costs in Arm Limited.
As a result of this change, exchange rates of British pound are not presented from the three-month period ended June 30,
2020 as it is no longer considered as a major currency used for translating financial statements of foreign operations.

11. Equity(1) Capital surplus
On May 22, 2020, as part of “the ¥4.5 trillion program,” SoftBank Group Japan Corporation, a wholly-owned
subsidiary of the Company, transferred a portion of SoftBank Corp. shares (ownership percentage 5.0%). As a result,the ownership percentage in SoftBank Corp. by the Company has changed from 67.1% to 62.1%. In relation to thetransaction, ¥194,721 million of the equivalent amount for gain on sales of SoftBank Corp. shares after considering
income taxes on a consolidation bases is recorded as “Changes in interests in subsidiaries” in capital surplus.
(2) Other equity instruments
On July 19, 2017, the Company issued USD-denominated Undated Subordinated Non-Call 6 years Resettable Notes
and USD-denominated Undated Subordinated Non-Call 10 years Resettable Notes (collectively, the “Hybrid
Notes”).
The Hybrid Notes are classified as equity instruments in accordance with IFRSs because the Company has the option
to defer interest payments, the notes have no maturity date, and the Company has an unconditional right to avoid
delivering cash or another financial asset except for distribution of residual assets on liquidation.

68SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

(3) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)

Balance at the beginning of the period

Three-month period ended
June 30, 2019

Three-month period ended
June 30, 2020

46,827

21,818*28,617

121,678

Decrease during the period(56,306)(177)

Balance at the end of the period

19,138143,319

Increase during the period

Note:* For the three-month period ended June 30, 2020, due to purchases of treasury stock under the resolutions passed at
the Board of Directors meeting held on March 13, 2020, the number of treasury stock increased by 102,960 thousand
shares (amount purchased ¥483,971 million) and at the Board of Directors meeting held on May 15, 2020, thenumber of treasury stock increased by 18,717 thousand shares (amount purchased ¥101,722 million) as part of “the¥4.5 trillion program.”(4) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2020
5,115

As of
June 30, 2020
5,851

Debt financial assets at FVTOCI

580

136

Cash flow hedges
Exchange differences on translating
foreign operations

13,12837,572(381,082)(382,358)(362,259)(338,799)

Equity financial assets at FVTOCI

Total

12. 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)

Gain relating to sales of T-Mobile shares1
Gain relating to settlement of prepaid forward
contracts using Alibaba shares
Realized gain on sales of investments
Unrealized gain on valuation of investments
Derivative gain (loss) on investments2
Other

Three-month period ended
June 30, 2019-

Three-month period ended
June 30, 2020
421,863

1,218,527-

1,738
15,188(11,082)
1,879

64,15929,801
133,349
1,321

Total
1,226,250
650,493
Notes:
1. On June 26, 2020, the Company transferred 173,564,426 shares out of 304,606,049 shares of T-Mobile common
stock held and ¥280,341 million of gain on sales of shares of associates was recorded for the three-month period
ended June 30, 2020.
In addition, due to the decrease in voting rights ratio resulted from the share transfer, the Company had no significant
influence over T-Mobile and T-Mobile was no longer considered as an equity method associate of the Company on

69

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

June 26, 2020. Accordingly, ¥296,013 million of gain from remeasurement relating to discontinuing the use of theequity method for the shares, which were continuously held at the time of discontinuing the use of the equity method,
was recorded for the three-month period ended June 30, 2020.
Furthermore, ¥154,491 million of derivative loss in relation to call options over T-Mobile shares granted to Deutsche
Telekom was recorded at the time of execution of the agreement for the three-month period ended June 30, 2020.
As a result of the transactions, ¥421,863 million of gain relating to sales of T-Mobile shares was recorded for thethree-month period ended June 30, 2020. The details are described in “Note 17. Additional information.”
2. ¥129,649 million of derivative gain on investments was recorded due to changes in the fair value of contingent
consideration acquired from the merger transaction with Sprint and T-Mobile US, Inc. for the three-month period
ended June 30, 2020. The details are described in “Note 3. Discontinued operations.”(2) Gain and loss on investments at SoftBank Vision Fund and other SBIA-managed funds business
The details are described in “Note 5. SoftBank Vision Fund and other SBIA-managed funds business.”(3) Gain and loss on other investments
The components of gain and loss on other investments are as follows:(Millions of yen)Three-month period ended
June 30, 2019
149
5,969
(2,305)
2,551

Three-month period ended
June 30, 2020
22
28,234
4,249
3,377

6,364

35,882Three-month period ended
June 30, 2019

Three-month period ended
June 30, 2020

(71,822)(78,132)

Realized gain on sales of investments
Unrealized gain on valuation of investments
Derivative gain (loss) on investments
Other
Total

13. Finance cost
The components of finance cost are as follows:(Millions of yen)Interest expenses

14. Derivative gain (loss) (excluding gain (loss) on investments)
For the three-month period ended June 30, 2020
Derivative loss of ¥179,471 million was recorded for the prepaid forward contracts using Alibaba shares and the callspread contract related to Alibaba shares. The details are described in “Notes 2” in “(1) Components of interestbearing debt” under “Note 8. Interest-bearing debt.”

70SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

15. Other gain (loss)
The components of other gain and loss are as follows:(Millions of yen)Three-month period ended
June 30, 2019
7,210

Three-month period ended
June 30, 2020
2,329

Foreign exchange loss
Reversal of allowance for loan commitment
losses*
Reversal of allowance for financial guarantee
contract losses
Dilution gain from changes in equity interest(6,546)(5,763)-

43,485

-

8,076

669

4,967

Other
Total

(1,387)(54)(1,328)51,766

Interst income

Note:* For the three-months period ended June 30, 2020, ¥43,485 million of reversal of allowance for loan commitment
losses related to acquire unsecured notes issued by WeWork was recorded as expected credit losses were lower
than the amount recorded as of March 31, 2020 due to the improvement of credit spread for WeWork’s unsecured
notes distributed in the market.

16. Supplemental information to the condensed interim consolidated statement of cash flows(1) Income taxes paid
For the three-month period ended June 30, 2020
Payment of withholding income tax related to dividends within the group companies of ¥125,611 million is included
in “Income taxes paid.”
In addition, withholding income tax related to dividends within the group companies of ¥123,314 million was
refunded in July 2020.
(2) Proceeds from sales/redemption of investments
For the three-month period ended June 30, 2020
¥1,830,432 million of proceeds received from sales of T-Mobile shares is included in “Proceeds fromsales/redemption of investments.”(3) Proceeds from the partial sales of shares of subsidiaries to non-controlling interests
For the three-month period ended June 30, 2020
“Proceeds from the partial sales of shares of subsidiaries to non-controlling interests” is proceeds received fromsales of SoftBank Corp. shares.
(4) Non-cash transactions related to net settlement of proceeds from sales of shares and payments for acquisition ofsharesFor the three-month period ended June 30, 2020
¥175,332 million of account receivables from sales of shares and account payables for acquisition of shares wereoffset because the settlement date for ¥740,230 million of the account receivables and ¥175,332 million of theaccount payables was the same date. The net amount of ¥564,898 million is recognized as “Proceeds fromsales/redemption of investments.”

71SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

Also, the merger between Sprint and T-Mobile US, Inc. and the acquisition of contingent consideration with themerger are correspond to significant non-cash transaction. The details are described in “Note 3. Discontinued
operations.”

17. Additional information(The transfer of T-Mobile shares)(1) Outline of the Transfer
The Company, as part of “the ¥4.5 trillion program,” of 304,606,049 shares of T-Mobile common stock held,transferred 173,564,426 shares on June 26, 2020 (a. and b. described in (2)), 5,000,000 shares on July 16, 2020 (c.
described in (2)), and 19,750,000 shares on August 3, 2020 (d. described in (2)), to T-Mobile through its subsidiary(the “Transfer”).
T-Mobile disposed of the shares transferred from its subsidiary through a public offering in the United States, aprivate placement through a trust issuing cash mandatory exchangeable trust securities, a rights offering* and a sale
to Marcelo Claure, one of its directors, with the proceeds being transferred to the Company’s subsidiary (collectively,
the “Related Transactions”).
In connection with the consummation of the Transfer and Related Transactions, the Company pays $300 million to
T-Mobile.
The aggregate transaction price for the Transfer is equal to the proceeds received by T-Mobile in the Related
Transactions.
Note:* The Company, Deutsche Telekom, Marcelo Claure and certain of their respective affiliates have agreed to waive theirrights to participate in the rights offering.

(2) Number of shares to be transferred and transaction pricea. Shares to be transferred in the U.S. public offering by
T-Mobile and transaction price thereof

154,147,026 shares
Transaction price per share $103.00
Aggregate transaction price $15,877 million

b. Shares to be transferred to the Trust from T-Mobile ina private offering through the Trust and transaction
price thereof

19,417,400 shares
Aggregate transaction price $1,667 millionc. Shares to be transferred to Marcelo Claure, a directorof T-Mobile and transaction price thereofd. Shares to be transferred to the shareholders in therights offering by T-Mobile and transaction pricethereof5,000,000 shares
Transaction price per share $103.00
Aggregate transaction price $515 million
19,750,000 shares
Transaction price per share $103.00
Aggregate transaction price $2,034 million(3) Grant of call options to Deutsche Telekom
The Company granted to Deutsche Telekom call options (the “Call Options”) over 101,491,623 shares of T-Mobile
which the Company holds through its subsidiary.
i. For the Call Options over 44,905,479 shares out of the 101,491,623 shares, a strike price of the call option is$103.00 per a share. Deutsche Telekom can exercise the Call Options any time after the grant date.
ii. For the Call options over 56,586,144 shares out of the 101,491,623 shares, a strike price of the call option isequal to the average of the daily volume-weighted average price of the shares of T-Mobile for each of the 20

72

SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

trading days immediately prior to exercise. Deutsche Telekom can exercise the Call Options after the exerciseof rights described in the above i or October 2, 2020.
Note:*The Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.

(4) Number of shares to be transferred, number of shares subject to the Call Options and number of shares held by theCompany before/after the transactions
a. Number of shares held before the Transfer
b. Number of the released shares(as of August 3, 2020)
c. Number of shares held after the Transfer

304,606,049 shares
198,314,426 shares
106,291,623 sharesd. Number of shares subject to the Call Options
e. Number of shares held after the Call Options are
exercised*

101,491,623 shares
4,800,000 shares

Note:* Calculated on the assumption that the Call Options are fully exercised.

18. Significant subsequent events(Partial implementation of “the ¥4.5 trillion program”)
As part of “the ¥4.5 trillion program,” the Company executed “(1) Conclusion of the variable prepaid forward contract
using Alibaba shares,” “(2) Partial transfer of T-Mobile shares,” and “(3) Fund procumbent by using T-Mobile shares”
for the purpose of selling or monetizing of the assets held by the Company. The Company plans to use the funds raised
from the transactions for the repurchase of up to ¥2 trillion of its common stock (including (6) Share repurchase inaccordance with the resolution) and with the balance to be used for debt redemptions (including (5) Repayment ofborrowing for which Alibaba shares were pledged as collateral), bond buybacks (including (4) Repurchase andretirement of domestic unsecured corporate bonds) and increase cash reserves. Until they are used for the planned
share repurchase and debt reductions, the Company may invest the funds raised in high quality, highly liquid securities
and other instruments in addition to holding in cash and deposits, while being firmly committed to its existing financial
policies on LTV(loan-to-value, the ratio of liabilities to holding assets) and cash on hand.
(1) Conclusion of the variable prepaid forward contract using Alibaba shares
In July, 2020, Scout 2020 Holdings Limited (“Scout Limited”) a wholly-owned subsidiary of the Company, enteredinto the variable prepaid forward contract using Alibaba shares with a financial institution. The Company procured$0.9 billion through the transaction.
The settlement is expected in July 2022. The number of Alibaba shares settled by the prepaid forward contracts isdetermined by reference to the market price of the shares at the valuation dates prior to the settlement dates. A cap
and a floor are set for the price of shares settled.
The variable prepaid forward contract is classified as hybrid financial instruments with embedded derivatives andthe embedded derivatives are measured at fair value.
Scout Limited has the option to settle the variable prepaid forward contract by delivering cash, Alibaba shares, or a
combination of cash and Alibaba shares. If Scout Limited elects cash settlement, Scout Limited will pay the cash
equivalent to the fair value of the number of shares subject to cash settlement, as determined by reference to themarket price of the shares.
Alibaba shares held by Scout Limited are pledged as collateral in accordance with the variable prepaid forward
contract, and the Company granted right of use to the financial institution with respect to such shares. However thecollateral can be released by cash settlement at the Scout Limited’s discretion. Alibaba continues to be an equity

73SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

method associate of the Company after the completion of the transaction because the Company still has significant
influence over Alibaba via voting rights. The carrying amount of Alibaba shares pledged as collateral by theCompany as of June 30, 2020 is ¥17,838 million.
The impact of the transaction on the Company’s consolidated financial results for the fiscal year ending March 31,
2021 has not been determined.
(2) Partial transfer of T-Mobile shares
The Company transferred, of T-Mobile shares held, 5,000,000 shares on July 16, 2020 and 19,750,000 shares on
August 3, 2020 to T-Mobile through its subsidiary at $103.00 per a share. The shares are remeasured at fair value
at the time of discontinuing the use of the equity method and the difference between fair value at the time of
discontinuing the use of the equity method and transaction price for the Transfer is small, therefore, the impact
arising from the transaction on the financial results for the fiscal year ending March 31, 2021 is immaterial.
(3) Fund procumbent by using T-Mobile shares
On July 30, 2020, a wholly-owned subsidiary of the Company made a borrowing of $4.38 billion by using T-Mobile
shares held as collateral. The repayment date for the borrowing is July 29, 2024. T-Mobile shares pledged ascollateral are recorded for ¥1,192,711 million as “Investment securities” in the condensed interim consolidated
financial position as of June 30, 2020.
In addition, related to the transaction, Alibaba shares held by the Company are pledged as collateral. Alibaba shares
pledged as collateral are recorded for ¥31,964 million as “Investments accounted for using the equity method” inthe condensed interim consolidated financial position as of June 30, 2020.
The impact of expenses arising from the transaction on the financial results for the fiscal year ending March 31,
2021 is immaterial.
(4) Repurchase and retirement of domestic unsecured corporate bonds
On July 22, 2020, the Company purchased the following domestic unsecured corporate bonds with a total facevalue of ¥167,595 million and retired those bonds. The impact of expenses arising from the transaction on thefinancial results for the fiscal year ending March 31, 2021 is immaterial.
Face value purchasedby the Company(Millions of yen)Interest
rate(%)

Date ofmaturity

1st Unsecured Subordinated Corporate Bond

2.50

December 17, 2021

38,383

2nd Unsecured Subordinated Corporate Bond

2.50

February 9, 2022

45,64848th Unsecured Straight Bond

2.13

December 9, 2022

32,97649th Unsecured Straight Bond

1.94

April 20, 2023

500

51st Unsecured Straight Bond

2.03

March 15, 2024

47,38852nd Unsecured Straight Bond

2.03

March 8, 2024

2,700

Company name / Name of bond
SoftBank Group Corp.

Total

167,595(5) Repayment of borrowing for which Alibaba shares were pledged as collateral
On July 8, 2020, Skywalk Finance GK, a wholly-owned subsidiary of the Company, conducted an early repaymentof all borrowings ($9.44 billion) for which Alibaba shares were pledged as collateral and the collateral was releasedon the same date.
The borrowings were recorded for ¥1,015,339 million as current portion of long-term borrowings under “Interestbearing debt (current)” in the condensed interim consolidated statement of financial position as of June 30, 2020.
In addition, Alibaba shares pledged as collateral by Skywalk Finance GK is recorded for ¥716,436 million as“Investments accounted for using the equity method” in the condensed interim consolidated statement of financial

74SoftBank Group Corp. Consolidated Financial Report
For the Three-Month Period Ended June 30, 2020

position as of June 30, 2020. The impact of expenses arising from the transaction on the financial results for the
fiscal year ending March 31, 2021 is immaterial.
(6) Share repurchase in accordance with the resolution
On July 30, 2020, SoftBank Group Corp., at the Board of Directors meeting, resolved the repurchase of its own
shares pursuant to Article 156 of the Companies Act of Japan as applied pursuant to Article 165, Paragraph 3. The
details are as follows:
Details of the repurchase
Class of shares to be repurchased
Total number of repurchased shares

Common stock of SoftBank Group Corp.
240,000,000 shares (maximum)(12.3% of the total number of shares issued (excluding treasury stock))

Total repurchase amount¥1 trillion (maximum)

Repurchase period

From July 31, 2020 to July 30, 2021

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