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 Nine-Month Period Ended December 31, 2020 (IFRS)Tokyo, February 8, 2021

1.

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

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

Net sales

Nine-month period ended
December 31, 2020
Nine-month period ended
December 31, 2019

Incomebefore income tax

Net income
AmountAmount%Amount%¥4,138,038

6.1¥3,361,504 133.0¥3,901,300-¥1,442,665

Net income
attributable toowners of the parent%

Amount%Total
comprehensive
incomeAmount%¥3,096,695 371.7¥3,055,162 541.1¥2,543,236 398.1¥656,460 (58.3)¥476,587 (69.0)¥510,581 (63.8)-

Basic earnings per
share (Yen)

Diluted earnings per
share (Yen)

Nine-month period ended
December 31, 2020

¥1,572.09¥1,476.17

Nine-month period ended
December 31, 2019

¥218.55¥212.47

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 nine-month period ended December 31, 2019 are notpresented because corresponding amounts for the nine-month period ended December 31, 2019 are revised and presented
respectively. Please refer to page 81 “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 Position
Total assets

Total equity

Equityattributable toowners of theparentAs of December 31, 2020

¥37,858,793¥8,622,306¥7,625,039

20.1

As of March 31, 2020

¥37,257,292¥7,372,917¥5,913,613

15.9

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

2.

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

Second quarter

Third quarter

Fourth quarter

Total

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

-

22.00

-

22.00

44.00

-

22.00

-

-

Fiscal year ending
March 31, 2021 (Forecasted)

Note:* The Company determines 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 still yet to be determined.
* 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 53 “(1) Significant Changes in Scope of Consolidation for the Nine-Month Period Ended December 31,
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 the capital andnet assets for those companies is not available. Therefore, Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
Article 19, Paragraph (10), Item (i) is used to determine whether the companies are the specified subsidiaries.
The applicability of Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc. Article 19, Paragraph (10), Item (i) is
determined based on the percentage of total amount of purchase from SoftBank Group Corp. and dividend paid to SoftBank
Group Corp. to total amount of operating revenue of SoftBank Group Corp.
For fund-type subsidiaries, the amount of net assets based on financial statements prepared in accordance with thecorresponding laws and practices is used to determine the applicability of Cabinet Office Ordinance on Disclosure of
Corporate Affairs, etc. Article 19, Paragraph (10), Item (ii).
(2) Changes in accounting policies and accounting estimates[1] Changes in accounting policies required by IFRSs: No[2][3]

Changes in accounting policies other than those in [1]: No
Changes in accounting estimates: Yes

Please refer to page 53 “(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 December 31, 2020:
As of March 31, 2020:
[2]

[3]

Number of shares of treasury stock:
As of December 31, 2020:

2,089,814,330 shares
2,089,814,330 shares
288,169,439 shares

As of March 31, 2020:
21,818,471 shares
Number of average shares outstanding during nine-month period (April-December):
As of December 31, 2020:
As of December 31, 2019:

1,929,114,012 shares
2,075,041,260 shares

Note:
The Company conducted a share split at a ratio of two-for-one effective June 28, 2019. “Number of shares issued,” “Number ofshares of treasury stock,” and “Number of average shares outstanding during nine-month period” are calculated assuming thatthe 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 intime and assumptions which are deemed to be reasonable. However, actual results may be different due to various factors.
On February 8, 2021 (JST), the Company will hold an earnings results briefing for the media, institutional investors, and financial
institutions. This earnings results briefing will be broadcast live on the Company’s website in both Japanese and English athttps://group.softbank/en/ir/presentations. The Data Sheet will also be posted on the website in a few days at the same site.

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(Appendix)

Contents
1. Results of Operations ......................................................................................................................................... P. 5
(1) Overview of Results of Operations ............................................................................................................. P. 5
a. Consolidated Results of Operations ...................................................................................................... P. 15
b. Results by Segment ............................................................................................................................... P. 18(a) Investment Business of Holding Companies Segment ..................................................................... P. 19(b) SVF1 and Other SBIA-Managed Funds Segment ............................................................................ P. 27(c) SoftBank Segment ............................................................................................................................ P. 33(d) Arm Segment.................................................................................................................................... P. 34(e) Other ................................................................................................................................................. P. 38(2) Overview of Financial Position ................................................................................................................. P. 39(3) Overview of Cash Flows ........................................................................................................................... P. 50(4) Forecasts .................................................................................................................................................... P. 52
2. Notes to Summary Information ....................................................................................................................... P. 53(1) Significant Changes in Scope of Consolidation for the Nine-Month Period Ended December 31, 2020 ..... P. 53(2) Changes in Accounting Estimates ............................................................................................................. P. 53
3. Condensed Interim Consolidated Financial Statements and Primary Notes ....................................................
(1) Condensed Interim Consolidated Statement of Financial Position............................................................
(2) Condensed Interim Consolidated Statement of Income
and Condensed Interim Consolidated Statement of Comprehensive Income ...........................................
(3) Condensed Interim Consolidated Statement of Changes in Equity ...........................................................
(4) Condensed Interim Consolidated Statement of Cash Flows ......................................................................
(5) Significant Doubt about Going Concern Assumption ...............................................................................
(6) Notes to Condensed Interim Consolidated Financial Statements ..............................................................

P. 55
P. 57
P. 59
P. 65
P. 69
P. 71
P. 71

Disclaimer
This material does not constitute an offer to sell, or a solicitation of an offer to buy, limited partnership interests or comparable limited
liability equity interests in any fund, including SoftBank Vision Fund 1 and SoftBank Vision Fund 2, managed by a subsidiary of
SoftBank Group Corp., including SB Investment Advisers (UK) Limited or its affiliates, or any securities in any jurisdiction, norshould it be relied upon as such in any way.
Notice Regarding PFIC Status
It is possible that SoftBank Group Corp. (“SBG”) may be a “passive foreign investment company” (“PFIC”) under the U.S. Internal
Revenue Code of 1986, as amended, for its current fiscal year due to the composition of its assets and the nature of its income. We
recommend that U.S. holders of SBG’s shares consult their tax advisers with respect to U.S. federal income tax consequences if SBG
is classified as a PFIC.

1SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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.
SB Northstar
SB Northstar LP
SoftBank Vision Fund 1 or SVF1*1 SoftBank Vision Fund L.P. and its alternative investment vehicles
SoftBank Vision Fund 2 or SVF2 SoftBank Vision Fund II-2 L.P. and its alternative investment vehicles*2
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 second quarter
Three-month period ended September 30, 2020
The third quarter
Three-month period ended December 31, 2020
The period
Nine-month period ended December 31, 2020
The third quarter-end
December 31, 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
Notes:
1. Since the second quarter, the Company has changed the presentation of “SoftBank Vision Fund” to “SoftBank Vision Fund 1” or“SVF1” to clearly distinguish it from “SoftBank Vision Fund 2” and changed the name of the reportable segment from “SoftBank
Vision Fund and Other SBIA-Managed Funds” to “SVF1 and Other SBIA-Managed Funds.” Names of related accounts have also
been changed. See “3. Condensed Interim Consolidated Financial Statements and Primary Notes” for details.
2. The entities defined as “SoftBank Vision Fund 2” were established for the purpose of holding the investments expected to be owned
by “SoftBank Vision Fund 2,” a private fund which is expected to admit third-party investors in the future. As of the third quarterend, SBG is the sole limited partner investing in SoftBank Vision Fund 2.

Exchange Rates Used for Translations
Average rate for the quarter
Fiscal year ended March 31, 2020
Q1
Q2
Q3
Q4
USD / JPY
¥110.00¥107.70¥108.98¥109.22

Fiscal year ending March 31, 2021
Q1
Q2
Q3¥107.74¥105.88¥104.45

Rate at the end of the period
USD / JPY

March 31, 2020
¥108.83

2

December 31, 2020
¥103.50

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF INCOME AND REPORTABLE
SEGMENTS
In the fiscal year, the presentation of the Consolidated Statement of Income and reportable segments were changed
as follows. The Consolidated Statement of Income and reportable segments for the same period of the previous fiscal
year have been restated and presented in the same manner.
Changes in presentation of Consolidated Statement of Income“Operating income” no longer presented and “gain (loss) on investments” newly presented
SoftBank Group Corp. is a strategic investment holding company managing a portfolio of investments in a wide
range of companies, made either directly (including investments through subsidiaries) or through investment funds(such as SVF1). On April 1, 2020, Sprint ceased to be a subsidiary of the Company following the completion of themerger between Sprint and T-Mobile US, Inc. Given that investment activities have taken on greater importance in
the Company’s overall consolidated financial results, the Company has revised the presentation of the Consolidated
Statement of Income starting 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 “gain on investments at SVF1 and SVF2.”
The Company determined that “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, continues to be presented as “income onequity method investments.”
In line with no longer presenting “operating income” in the Consolidated Statement of Income, the Company has
revised segment income in each reportable segment to “income before income tax.”
Classification of Brightstar in the disposal group classified as held for sale
On September 17, 2020 (U.S. time), the Company reached an agreement to sell all of its shares in Brightstar Global
Group Inc. (“Brightstar”)1 and completed the transaction on October 22, 2020 (U.S. time). Accordingly, Brightstar’s
net income or loss up until the completion of the transaction has been classified in the Consolidated Statement of
Income as “net income from discontinued operations.” Brightstar’s income or loss for the same period of the previous
fiscal year has also been restated retrospectively as “net income from discontinued operations.”

1 As part of consideration for the transaction, the Company has received a 25% stake (fully diluted basis) in a subsidiary of Brightstar
Capital Partners, which acquired all of the shares of Brightstar. Following the completion of the transaction, Brightstar ceased to bea subsidiary of the Company.

3SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Changes in reportable segments
New establishment of the Investment Business of Holding Companies segment
In light of the greater importance of investment activities to the Company’s overall consolidated financial results, asmentioned above, the Investment Business of Holding Companies segment was newly established in the first quarter.
See “OVERVIEW” under “(a) Investment Business of Holding Companies Segment” in “b. Results by Segment” in“(1) Overview of Results of Operations” on page 19 for the overview of the segment.
Removal of Brightstar segment
Following the classification of Brightstar in the disposal group classified as held for sale, Brightstar has been removed
from the Company’s reportable segments since the second quarter.
As of the third quarter-end, the Company has four reportable segments: Investment Business of Holding Companies,
SVF1 and Other SBIA-Managed Funds, SoftBank, and Arm.

4

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

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

1. Highlights of results
 Gain on investments of ¥3,799.5 billion- Gain on investments at Investment Business of Holding Companies of ¥846.5 billion: In connection
with the merger of Sprint and T-Mobile US, Inc. and the subsequent partial sale of T-Mobile shares, gain
relating to sales of T-Mobile shares of ¥421.8 billion, unrealized gain on valuation of investments of¥327.6 billion related to T-Mobile shares continued to be held by the Company, and derivative gain of¥324.5 billion resulting from an increase in the fair value of a contingent consideration were recorded.
Conversely, investment loss from investments in listed stocks and other instruments of ¥301.4 billion
was recorded.
- Gain on investments at SVF1 and SVF2 of ¥2,728.8 billion· SVF1 recorded realized gain on sales of investments (net) of ¥209.3 billion. In addition, SVF1
recorded unrealized gain on valuation (net) totaling ¥1,541.5 billion for listed portfolio companies,
particularly DoorDash and Uber, reflecting strong stock price performance, and unrealized gain on
valuation (net) totaling ¥530.6 billion for unlisted portfolio companies, reflecting increases in theirfair values.
· SVF2 recorded unrealized gain on valuation (net) of ¥542.7 billion, mainly due to share priceincreases of KE Holdings and Seer following their listings.
 Income before income tax of ¥3,361.5 billion (increased ¥1,911.8 billion yoy)
- Finance cost of ¥224.3 billion*- Derivative loss (excluding gain (loss) on investments) of ¥480.7 billion*- Change in third-party interests in SVF1 of ¥(956.7) billion** recorded as a cost for the period
 Net income attributable to owners of the parent of ¥3,055.2 billion (increased ¥2,578.6 billion yoy)
- Net income from discontinued operations of ¥711.5 billion was recorded, primarily reflecting gain
relating to loss of control of Sprint.

2. Continued listing of investments
 SVF1: DoorDash listed on the NYSE on December 9, 2020; Opendoor began trading on the Nasdaq on
December 21, 2020 following the merger with a special purpose acquisition company (SPAC).2
 SVF2: Seer listed on the Nasdaq on December 4, 2020.
 SBIA’s controlled company SVF Investment Corp., a SPAC, listed on the Nasdaq on January 8, 2021.
3. Progress of the ¥4.5 trillion program Completion of sale or monetization of assets: The Company completed sale or monetization of assets
totaling ¥5.6 trillion over the six months from April to September 2020, through the partial sale of TMobile shares, borrowings using T-Mobile shares, partial monetization of Alibaba shares throughprepaid forward contracts, and partial sale of SoftBank Corp. shares (including an additional sale). The
use of the proceeds exceeding ¥4.5 trillion will be decided considering the Company’s financial balance.
 Share repurchase: Of a total ¥2 trillion authorized share repurchases, the Company repurchased shares
totaling ¥1.1 trillion as of December 31, 2020, and a cumulative total of ¥1.3 trillion as of January 31,2021.
 Debt reduction: The Company repurchased domestic unsecured corporate bonds with a total face valueof ¥167.6 billion and repaid early ¥300.0 billion of a senior loan by September 30, 2020.

2 On December 18, 2020, Opendoor Labs Inc. merged with Social Capital Hedosophia Holdings Corp. II, a SPAC, and the merged
company’s name was changed to Opendoor Technologies, Inc. The Opendoor Technologies, Inc. common stock began trading on the
Nasdaq Capital Market (the “Nasdaq”) on December 21, 2020.

5

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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”). The Company completed the sale or monetization of the target amount of ¥4.5 trillion of the assets as ofthe second quarter-end. For the six months from April to September 2020, the amount of sale or monetization ofassets totaled ¥5.6 trillion. The use of the proceeds from asset sales in excess of the target amount has yet to be
determined. Going forward, the Company will seek to make new investments for sustainable growth and return profits
to shareholders, while maintaining its sound financial structure. Meanwhile, the share repurchases of up to ¥2 trillion
were originally intended to be executed over four quarters beginning 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 situation where the control of spreading the COVID-19 is unpredictable, SBG believes it needs
to further enhance cash reserves. SBG is investing the funds raised, until such cash reserves are used for the planned
share repurchases and debt reductions, together with other surplus funds, in high-quality, highly liquid marketablesecurities and other instruments, as well as holding the funds in cash and deposits, while being firmly committed toits existing financial policies on LTV (loan-to-value, the ratio of liabilities to holding assets) and cash position. See“(a) Investment Business of Holding Companies Segment” under “b. Results by Segment” for details.
Asset sales or monetization for the six months from April to September 2020
(Trillions of yen)Amount of sale or monetization
April to June 2020 July to September 2020
Total

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

1.9

0.5

2.4

1.5
0.3
3.7

0.2
1.2
1.9

1.7
1.5
5.6

Note: Transactions completed by June 30, 2020 were converted at ¥107.74 to the U.S. dollar, and transactions completed by September
30, 2020 were converted at ¥105.80 to the U.S. dollar.

1. Completion of the merger of Sprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, etc.
a. Completion of the merger of Sprint and T-Mobile US, Inc.
On April 1, 2020, the merger of Sprint, which had been a U.S. subsidiary of the Company, and T-Mobile US, Inc. inan all-stock transaction (the “Merger”) was completed. 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 consideration 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 with

6

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

24.7% shareholding. See “(1) Sprint” under “3. Discontinued operations” in “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes” fordetails.
b. Partial sale of T-Mobile shares
Subsequently, the Company, through its subsidiary, sold 173,564,426 shares on June 26, 2020 ((a) and (b) in “Detailsof the Partial Sale” below), 5,000,000 shares on July 16, 2020 ((c) below), and 19,750,000 shares on August 3, 2020((d) below) (the “Partial Sale”) of the Company’s 304,606,049 shares of common stock of T-Mobile. T-Mobile disposed of the shares purchased from the Company’s subsidiary through a public offering in the United States, a private
placement through a trust issuing cash mandatory exchangeable trust securities, a sale to T-Mobile Board Director
Marcelo Claure (Corporate Officer, Executive Vice President & COO of SBG), and a rights offering, with the proceeds 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
Transaction

Number ofshares sold(shares)

Total sale value(Millions of U.S. dollars)(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 T-Mobile Board Director Marcelo Claure(d) Rights offering by T-Mobile

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

15,877
1,667
515
2,034

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”).3(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 option(i) above or after October 2, 2020.

3 The Deutsche Telekom Call Options expire on June 22, 2024, unless certain events occur that trigger an earlier expiration date.

7

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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

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 isconsidered 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 the amount to the maximum extent possible from Alibaba shares that have been pledged as collateral
for the margin loan.
2. Partial monetization of Alibaba shares through prepaid forward contracts
From April to August 2020, SBG’s wholly owned subsidiaries, West Raptor Holdings 2, LLC, Skybridge LLC, Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, and Tigress 2020 Holdings Limited entered into several
prepaid forward contracts using Alibaba shares with financial institutions. The Company procured an aggregate
amount of $15.4 billion. Alibaba remains an equity method associate of the Company following these transactions.
In October and November 2020, of the abovementioned prepaid forward contracts concluded from April to August
2020, the cap (upper limit) and floor (lower limit) for the price of shares to be settled were revised for the collar
contract, and the forward contract was changed to a collar contract with a set cap and floor for the price of the shares
to be settled. At the same time, the cap and floor for the price of shares to be settled were also revised for the prepaid
forward contract using Alibaba shares (collar contract) concluded in the previous fiscal year. These revisions weremade in response to a rise in the price of Alibaba shares at the time, with a view to capturing the upside potential
during a phase of further share price increases. For details of the amendments to the contract, see “10. Interest-bearingdebt” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”
3. Partial sale of SoftBank Corp. shares
In May and September 2020, SBG sold a total of 1,268,061,400 shares of common stock of its subsidiary SoftBank
Corp. out of the 3,182,919,470 shares held through SoftBank Group Japan Corporation and received a total of ¥1.5
trillion, broken down as follows.
a. May 2020: 240,000,000 shares (shareholding ratio: 5.0%) sold for ¥310.2 billion
b. September 2020: 1,028,061,400 shares (shareholding ratio: 21.7%) sold for ¥1.2 trillion

8SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

SoftBank Corp. continues to be a subsidiary of the Company following the aforementioned sales and its strategic
importance to the SoftBank Group remains unchanged. Considering its importance, the Company and SoftBank
Group Japan Corporation have no intention of selling additional SoftBank Corp. shares. They intend to maintain theirholding of the remaining shares held for the medium to long term.
Since SoftBank Corp. continues to be a subsidiary of SBG following these sales, the amounts equivalent to theafter-tax gain on the sales were 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 transactions have increased the probability of generating taxable income at SoftBank Group Japan Corporationthat is 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 January 31, 2021

In progress
Date of Board
resolution

Total number of shares
repurchased

Total amount ofrepurchase

Repurchase period

July 30, 2020

37,538,100¥312.2 billion

From December 14, 2020 toJanuary 31, 2021

Maximum of
240,000,000

Maximum of¥1 trillion

From July 31, 2020 toJuly 30, 2021

Date of Board
resolution

Total number of shares
repurchased

Total amount ofrepurchase

Repurchase period

May 15, 2020

81,940,400¥500 billion

From June 17, 2020 toAugust 3, 2020

June 25, 2020

70,579,400¥500 billion

From September 15, 2020 to
December 11, 2020

Resolution details

Completed(Reference: Share repurchase resolved before the ¥4.5 trillion program)March 13, 2020
107,679,300¥500 billion

From March 16, 2020 toJune 15, 2020

Reduction of debt based on the ¥4.5 trillion program
As part of the ¥4.5 trillion program, the Company implemented the following debt reductions as of the third quarterend.
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.

9SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

b. Repayment of senior loan
In September 2020, SBG made an early repayment of a senior loan with an aggregate face value of ¥300.0 billion.
Borrowing Using Alibaba Shares (Margin Loan)
In July 2020, Skywalk Finance GK, a wholly owned subsidiary of the Company, repaid $9.44 billion in borrowings
made using Alibaba shares as part of the debt reductions in the ¥4.5 trillion program. On the other hand, in October
2020, asset management subsidiary SB Northstar, which invests in listed stocks and other instruments, borrowed $6.0
billion using Alibaba shares. The Company continues to have a flexible approach to borrow using Alibaba shares,
and the balance may fluctuate on occasion.

10

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

ENTRY INTO AGREEMENT FOR SALE OF ALL SHARES IN ARM
On September 13, 2020 (U.S. time), SoftBank Group Capital Limited (“SBGC”), a wholly owned subsidiary of theCompany, and SVF1 entered into a Share Purchase Agreement (the “Purchase Agreement”) with NVIDIA Corporation (“NVIDIA”), a U.S.-based semiconductor manufacturer, whereby the Company will sell all of the shares in its
wholly owned subsidiary Arm held by SBGC and SVF1 to NVIDIA in a transaction valued up to $40 billion (approximately ¥4.2 trillion) (the “Transaction”). The Transaction is subject to regulatory approvals (including those of
the U.K., China, the European Union, and the U.S.) and other closing conditions. The Transaction is expected to takeapproximately 18 months to close following the execution of the Purchase Agreement. Arm’s Internet-of-Things
Services Group (ISG) business is not within the scope of the Transaction and was carved out from Arm in the third
quarter. Its financial results continued to be included in the Arm segment.
Upon completion of the Transaction, Arm will cease to be a subsidiary of the Company and will no longer be
consolidated into the Company’s financial results; however, Arm will continue to be classified under continuing
operations in the Company’s consolidated financial statements until the closing of the Transaction is deemed highly
probable. Upon closing of the Transaction, SBGC and SVF1 expect to receive in the aggregate approximately 6.78.1% of outstanding NVIDIA shares (excluding treasury shares), depending on the final amount of the earn-out, if
any (as discussed below). NVIDIA is not expected to become a subsidiary or an associate of the Company following
the completion of the Transaction.
A breakdown of the transaction value is presented below.
(Billions of U.S. dollars)

Consideration for the Company(1) CashTransaction value
12.0 (a)2.0(b) 10.0(2) NVIDIA shares

Time of receipt
Received on September 13, 2020($0.75 billion of which was received
by Arm as consideration for a license
agreement)
Upon closing

21.5(44.37 million shares)(3) Earn-out (cash or NVIDIA
Up to 5.0
shares)(or 10.32 million shares)

Upon closing(4) NVIDIA share compensation for Arm employees

Upon closing; to be received by Arm
employees

Total

1.5

Upon closing; subject to satisfactionof specific financial performance targets of Arm

Up to 40.0

Notes:
1. The consideration described in (1) and (2) and, if any, (3) will be allocated to SBGC and SVF1 in accordance with their respective
ownership ratios of Arm shares (75.01% to SBGC and 24.99% to SVF1). The proceeds received by SVF1 will be further allocated to
SVF1’s limited partners, including the Company, based on a designated waterfall.
2. Transaction value of (2) and (3) is calculated based on NVIDIA shares with a price of $484.6007 per share (the average of the daily
closing prices of NVIDIA common stock for the 30 consecutive trading days ended September 10, 2020, rounded up to four decimal
points).

11

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(1) $12.0 billion in cash(a) $2.0 billion
Upon the execution of the Purchase Agreement on September 13, 2020, SBGC and Arm received cash totaling$2.0 billion. Of this amount, $1.25 billion was received as a deposit for part of the consideration in the Transaction (refundable to NVIDIA subject to certain conditions until the closing of the Transaction, after which suchamount will become non-refundable) and $0.75 billion was received by Arm as consideration for a license agreement that Arm and NVIDIA entered into concurrently with the execution of the Purchase Agreement.
(b) $10.0 billion
Upon the closing of the Transaction, SBGC and SVF1 will receive cash totaling $10.0 billion.
(2) $21.5 billion in NVIDIA shares (44.37 million shares)
Upon the closing of the Transaction, SBGC and SVF1 will receive $21.5 billion in NVIDIA common stock. The
total number of shares of NVIDIA common stock to be received is 44,366,423 shares, which was determined basedon a price of $484.6007 per share (the average of the daily closing prices of NVIDIA common stock for the 30
consecutive trading days ended September 10, 2020, rounded up to four decimal points). Of the $21.5 billion in
NVIDIA common stock, $1.0 billion (representing 2,063,554 shares) will be subject to escrow in order to satisfy
certain indemnification obligations of SBGC and SVF1 as set out in the Purchase Agreement.
The shares received will be recorded at their fair value at the closing of the Transaction as financial assets at
FVTPL, and thereafter changes in their fair value will be recognized as net income or loss at the end of each quarter.
(3) Earn-out up to $5.0 billion (cash or 10.32 million NVIDIA shares)
An earn-out of up to $5.0 billion in cash or up to 10,317,772 shares of NVIDIA common stock (based on a price of$484.6007 per share, being the average of the daily closing prices of NVIDIA common stock for the 30 consecutive
trading days ended September 10, 2020 (rounded up to four decimal points)) is payable to SBGC and SVF1 subject
to satisfaction of certain financial performance targets for each of revenue and EBITDA of Arm (in each case subject
to certain adjustments and excluding any amounts attributable to the ISG business) during the fiscal year ending
March 31, 2022 as set out in the Purchase Agreement. If Arm’s financial performance exceeds the agreed floors but
does not meet such targets, the earn-out will be prorated. If Arm’s financial performance does not meet such floors,
the earn-out will not be payable.
If SBGC and SVF1 elect to receive the earn-out in the form of NVIDIA shares, the fair value of those shares will
be recorded as financial assets at FVTPL upon the closing of the Transaction, and thereafter changes in their fairvalue will be recognized as net income or loss at the end of each quarter.

(4) NVIDIA stock awards representing $1.5 billion to be granted to Arm employees
Upon the closing of the Transaction, Arm employees will receive $1.5 billion in NVIDIA stock awards fromNVIDIA.
Since Arm is a subsidiary of the Company, unrealized valuation gain and loss associated with the change in valuation
on SVF1’s holding of Arm shares is recorded under segment income as “gain (loss) on investments at SVF1 and

12SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

SVF2 (unrealized valuation gain (loss) recorded for the fiscal year),” but is eliminated in consolidation, and is notincluded in “gain (loss) on investments at SVF1 and SVF2” in the Condensed Interim Consolidated Statement of
Income.
MAJOR IMPACT 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 PERIOD
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 ¥721.1 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 Contingent Consideration, which was received as consideration for the Merger, of ¥520.8 billion was recorded
under “derivative financial assets.” An increase in the fair value of ¥324.5 billion was recognized as of the third
quarter-end, after the fair value of ¥196.3 billion was recorded at the time of the Merger (this increase was recorded
as derivative gain under “gain on investments at Investment Business of Holding Companies”).
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 ¥421.8 billion was recorded under “gain (loss) on investments at
Investment Business of Holding Companies.” This consisted of a gain of ¥280.3 billion on sales of shares ofassociates, a gain of ¥296.0 billion on the revaluation of T-Mobile shares continued to be held by the Company, aderivative loss relating to the Deutsche Telekom Call Options of ¥154.5 billion, a realized loss of ¥3.1 billion on thesale of T-Mobile shares, and a gain of ¥3.0 billion on derecognition of derivative liabilities.
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 (third
quarter-end: ¥1,483.5 billion). T-Mobile shares continued to be held by the Company are measured at fair value ateach quarter-end, with changes recorded under “gain (loss) on investments at Investment Business of Holding
Companies” in the Consolidated Statement of Income. Unrealized gain on valuation of investments of ¥327.6 billion
related to T-Mobile shares was recorded for the period from June 26, 2020 to the third quarter-end.

13

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Liabilities
The Deutsche Telekom Call Options were recorded under “derivative financial liabilities” at fair value (the third
quarter-end: ¥235.9 billion). The Deutsche Telekom Call Options are measured at fair value at each quarter-end, withchanges 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 ¥2.1 trillion were recorded under “proceeds from sales/redemption of
investments.”
MAJOR IMPACT FROM THE COVID-19 PANDEMIC ON MARKETS AND BUSINESSES OF THE COMPANY
There is still no sign of an end to the COVID-19 pandemic. From October 2020, infections began to spread broadly
again in countries around the world. Data collected by Johns Hopkins University in the U.S. indicate that, as ofFebruary 1, 2021 (Japan time), the total number of COVID-19 cases surpassed 102.92 million and the number ofdeaths surpassed 2.23 million worldwide. Although some countries have started their vaccination programs, it willtake time to achieve widespread vaccine coverage, and global stock markets remain volatile due to concerns about
the slowdown in economic activity.
SVF1 recorded unrealized gain on valuation of ¥2,072,036 million for the period, supported by a recovery in thefair values of listed portfolio companies due to a rebound in the public equity markets, as well as increases in the fairvalues of unlisted portfolio companies that had new funding rounds or where exits have been decided, or have seen
increased customer usage of services during the COVID-19 crisis. COVID-19 continues to have an uneven effect on
SBIA’s portfolio companies. Businesses in sectors such as e-commerce, entertainment, healthcare, education, fooddelivery, and the future of work have benefited from the accelerated adoption of digital services. Many SVF1 companies in these sectors have successfully raised additional funding from new and existing investors at higher valuations than in prior rounds. The Company believes these new funding rounds reflect the strong underlying growth ofeach company’s business. Conversely, companies in sectors such as travel and hospitality are recovering at a slower
pace. The pandemic is expected to continue to affect each portfolio company differently in the future.

14

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020a. Consolidated Results of Operations(Millions of yen)

Nine months ended December 31
2019
2020

ChangeChange %Continuing operations
Net sales

3,901,300

4,138,038

236,738

6.1%

Gross profit

2,007,695

2,168,300

160,605

8.0%

Gain on investments
Gain on investments at Investment Business of
Holding Companies

840,664

846,477

5,813

0.7%

B

Gain (loss) on investments at SVF1 and SVF2

(729,007)

2,728,778

3,457,785-

C

20,130224,201

204,071-

131,7873,799,456

3,667,669-(1,445,721)(1,575,206)(129,485)

9.0%

Finance cost

(215,525)(224,322)(8,797)

4.1%

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

472,535

379,431(93,104)(19.7%) E(17,586)(480,665)(463,079)- F

Change in third-party interests in SVF1

190,005(956,736)(1,146,741)-

Other gain

319,475

251,246(68,229)(21.4%)

1,442,665

3,361,504

1,918,839

133.0%(731,908)(975,983)(244,075)

33.3%

710,757

2,385,521

1,674,764

235.6%Net income from discontinued operations(54,297)

711,174

765,471

Net income

656,460

3,096,695

2,440,235

371.7%Net income attributable to owners of the parent

476,587

3,055,162

2,578,575

541.0%

Total comprehensive income
Comprehensive income attributable to owners of
the parent

510,5812,543,236

2,032,655

398.1%

344,500

2,488,577

2,144,077

622.4%

Gain on other investments
Total gain on investments
Selling, general and administrative expenses

Income before income tax
Income taxes
Net income from continuing operations

A

D

G

Discontinued operations- H

Note: For the fiscal year, continuing operations and discontinued operations have been presented separately. To reflect this change inpresentation, figures for the same period of the previous fiscal year have been restated and presented in the same manner.

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

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

In relation to the merger of Sprint and T-Mobile and subsequent partial sale of T-Mobile shares, the Company
recorded gain relating to sales of T-Mobile shares of ¥421,755 million, unrealized gain on valuation of ¥327,564

15

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

million related to T-Mobile shares continued to be held by the Company, and derivative gain of ¥324,518 million
associated with an increase in the fair value of the Contingent Consideration. Meanwhile, investment loss of¥301,437 million from investment in listed stocks and other instruments was also recorded. In the same period of
the previous fiscal year, a gain of ¥1,218,527 million relating to settlement of prepaid forward contracts using
Alibaba shares was recorded. See “(a) Investment Business of Holding Companies Segment” under “b. Results by
Segment” for details.
C Gain on Investments at SVF1 and SVF2

Realized gain on sales of investments (net) of ¥209,317 million was recorded as a result of the sale by SVF1 of a
portion of its shares in four portfolio companies and all shares of seven portfolio companies (including share exchanges with the shares of affiliated portfolio companies). In addition, SVF1 recorded unrealized gain on valuation(net) totaling ¥1,541,453 million for listed portfolio companies, particularly DoorDash, Inc. (“DoorDash”) and Uber
Technologies, Inc. (“Uber”), reflecting strong stock price performance, and ¥530,583 million for unlisted portfolio
companies, as a result of increases in the fair value of investments that had new funding rounds or where exits havebeen decided, or have seen increased customer usage of services during the COVID-19 crisis. SVF2 recorded unrealized gain on valuation (net) of ¥542,711 million, mainly driven by share price increases of KE Holdings Inc.
(“KE Holdings”) and Seer, Inc. (“Seer”) following their listings. See “(b) SVF1 and Other SBIA-Managed Funds
Segment” under “b. Results by Segment” for details.

Primarily as a result of B and C, total gain on investments was ¥3,799,456 million.
D Finance Cost

Interest expenses increased ¥10,169 million in the Investment Business of Holding Companies segment and ¥5,010
million in the SoftBank segment. On the other hand, interest expenses decreased ¥9,458 million in the SVF1 andOther SBIA-Managed Funds segment.
E Income on Equity Method Investments

Income on equity method investments related to Alibaba was ¥340,040 million,4 a decrease of ¥125,404 million(26.9%) year on year, which was boosted by ¥277,175 million in the same period of the previous fiscal year as aresult of Alibaba acquiring newly issued shares (33% equity stake) of Ant Small and Micro Financial Services
Group Co., Ltd. (currently Ant Group Co., Ltd., “Ant Financial”) using consideration from the transfer of certain
intellectual property rights and assets held by Alibaba to Ant Financial and its subsidiaries.
F Derivative Loss (Excluding Gain (Loss) on Investments)

Derivative loss of ¥485,436 million was recorded in connection with prepaid forward contracts using Alibaba shares

4 The Company applies the equity method to Alibaba’s consolidated financial statements for a reporting period staggered by threemonths in the past because 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.

16SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

entered into in November 2019 and from April to August 2020 (including the impact of amendments to some of thecontracts made in October and November 2020).
Primarily as a result of A through F, income before income tax was ¥3,361,504 million, an increase of¥1,918,839 million (133.0%) 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 ¥256,060 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 8) increased the probability of generating taxable income at SoftBank Group Japan Corporationthat is available 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 ¥721,068 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 ¥3,055,162 million,
an increase of ¥2,578,575 million (541.0%) year on year.

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

17

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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. As of the third quarter-end, there are four reportable segments:
Investment Business of Holding Companies, SVF1 and Other SBIA-Managed Funds, SoftBank, and Arm. For details of the changes in presentation of the Consolidated Statement of Income and the reportable segments in thefiscal year, see “CHANGES IN PRESENTATION OF CONSOLIDATED STATEMENT OF INCOME AND REPORTABLE SEGMENTS.” Along with no longer presenting “operating income” in the Consolidated Statement of
Income, the Company has revised segment income in each reportable segment to “income before income tax.”
The following is a summary of the reportable segments.
Segments

Main businesses

Core companies

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

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

SVF1 and Other
SBIA-Managed
Funds· Investment activities by SVF1 and SVF2

SB Investment Advisers (UK) Limited
SoftBank Vision Fund L.P.
SoftBank Vision Fund II-2 L.P.

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

SoftBank Corp.
Z Holdings Corporation

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

Reportable segments

Other· Smartphone payment business

PayPay Corporation· Alternative investment management business

Fortress Investment Group LLC· Investment fund business in Latin America· Fukuoka SoftBank HAWKS-related businesses

18

Fukuoka SoftBank HAWKS Corp.

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020(a) Investment Business of Holding Companies Segment
1. Recorded gain relating to sales of T-Mobile shares of ¥421.8 billion, unrealized gain on valuationof ¥327.6 billion related to T-Mobile shares continued to be held by the Company, and derivative
gain of ¥324.5 billion associated with an increase in the fair value of the Contingent Consideration.
2. Completed the sale and monetization of assets for the ¥4.5 trillion program
3. Recorded investment loss of ¥301.4 billion from investment in listed stocks and other instruments(total investment gain and loss of SBG and SB Northstar)
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, SBGC, SoftBank Group Japan Corporation(“SBGJ”), asset management subsidiary SB Northstar, and certain other subsidiaries engaged in investment andfinancing activities. Gain and loss on investments at Investment Business of Holding Companies comprises gain
and loss 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 WeWork Inc. (“WeWork”),*1 as well as investees of SB Northstar. 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, income and loss are recorded as “income(loss) on equity method investments” in proportion to equity interest. Investments classified as financial assets at
FVTPL are measured at fair value every quarter, and any 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 SVF1 are included in the SVF1 and Other SBIA-Managed Funds
segment.

Investment in listed stocks and other instruments by the asset management subsidiaries
The Company has been investing in highly liquid listed stocks from the first quarter, in order to diversify assets
held by the Company and to manage surplus funds. This has been done while being firmly committed to its statedfinancial policies on its loan-to-value (LTV) ratio and cash position. These investments were made by SBG in thefirst quarter, but from the second quarter, asset management subsidiary SB Northstar has been acquiring and selling
listed stocks, and engaging in derivative and credit transactions related to listed stocks. The scale of its investments
in listed stocks and other instruments fluctuates depending upon SBG’s funding needs, cash on hand, and the statusof the assets held by SBG.
The interest in SB Northstar is indirectly held 67% by SBG and 33% by SBG’s Representative Director, Corporate Officer, Chairman & CEO Masayoshi Son. Masayoshi Son’s interest is deducted from gain and loss on
investments at SB Northstar as a non-controlling interest; therefore, 67% of the gain and loss on investments
impacts net income attributable to owners of the parent. Furthermore, if, at the end of the fund life (12 years + 2year extension), SB Northstar has any unfunded repayment obligations to SBG, Masayoshi Son will pay his pro
rata share of any such unfunded obligations based upon his relative ownership percentage of SB Northstar.

19

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

FINANCIAL RESULTS(Millions of yen)

Nine months ended December 31
2019
2020
Gain on investments
Gain relating to sales of T-Mobile shares
Gain relating to settlement of prepaid forward
contracts using Alibaba shares
Realized loss on sales of investments at asset management subsidiaries
Unrealized gain on valuation of investments at asset management subsidiaries
Derivative loss on investments at asset management subsidiaries
Realized gain on sales of investments
Unrealized gain (loss) on valuation of investments
Derivative gain (loss) on investments
Other
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative loss
(excluding gain (loss) on investments)
Other gain
Segment income (income before income tax)

Change Change %840,664

846,477

5,813

0.7%

-

421,755

421,755-

1,218,527-(1,218,527)--(92,459)(92,459)--

105,658

105,658-- (577,602)
21,371 206,233(396,329) 532,146(6,118) 248,558
3,213
2,188
(52,675) (74,094)(147,600) (157,769)
471,259 363,660(577,602)
184,862
928,475
254,676(1,025)(21,419)(10,169)(107,599)

865.0%(31.9%)
40.7%
6.9% B(22.8%) C(17,839) (482,668)
309,787 267,379(464,829)(42,408)- D(13.7%) E(640,611)(45.6%)

1,403,596

762,985

A

A Gain on investments: ¥846,477 million· Gain relating to sales of T-Mobile shares of ¥421,755 million was recorded. This gain resulted from (1) a gain of¥280,341 million on sales 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; (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; and (4) a realized loss on sales ofinvestments of ¥3,122 million from the sales of 5,000,000 T-Mobile shares held by the Company on July 16,
2020 and a further 19,750,000 shares on August 3, 2020, as well as a derivative gain of ¥3,014 million following
the derecognition of derivative liabilities.
· Realized loss on sales of investments at asset management subsidiaries of ¥92,459 million and unrealized gain
on valuation of investments at asset management subsidiaries of ¥105,658 million were recorded. This was due
to investments in listed stocks by SB Northstar.
· Derivative loss on investments at asset management subsidiaries of ¥577,602 million was recorded. This wasdue to recording losses mainly related to call options on listed stocks and short stock index futures contracts at
SB Northstar.
· Realized gain on sales of investments of ¥206,233 million and unrealized gain on valuation of investments of¥532,146 million were recorded. The former was mainly due to recording realized gain of ¥207,919 million on

20

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

investments SBG made in listed stocks. The latter was mainly due to the recording of valuation gain of ¥327,564
million on investment in T-Mobile shares recognized during the period from June 26 to December 31, 2020 and
unrealized gain on valuation of ¥55,047 million on investments SBG made in listed stocks.
· Derivative gain on investments of ¥248,558 million was recorded. This was mainly due to the recording of a gainof ¥324,518 million, representing an increase in the fair value of the right to purchase T-Mobile shares for no
additional consideration if certain conditions are met, which was received as consideration for the merger between Sprint and T-Mobile US, Inc.
B

Finance cost: ¥157,769 million (increased ¥10,169 million year on year)· Interest expenses at SBG5 increased ¥7,236 million to ¥154,592 million. This was mainly due to an increase ininterest-bearing debt at wholly owned subsidiaries conducting fund procurement.
C

Income on equity method investments: ¥363,660 million (decreased ¥107,599 million year on year)· Income on equity method investments related to Alibaba was ¥340,040 million, a decrease of ¥125,404 million(26.9%) year on year, which was boosted by ¥277,175 million in the same period of the previous fiscal year as aresult of Alibaba acquiring newly issued shares (33% equity stake) of Ant Financial using consideration from thetransfer of certain intellectual property rights and assets held by Alibaba to Ant Financial and its subsidiaries.
There was also an impact from the recording of investment loss on Alibaba’s investments classified as financial
assets at FVTPL for the three-month period ended March 31, 2020, following the fall in stock markets due to the
COVID-19 pandemic.
· Income on equity method investments of ¥24,736 million related to T-Mobile for the period from April 1 to June25, 2020 was recorded, however such income was not recorded for the same period of the previous fiscal year.
D

Derivative loss (excluding gain (loss) on investments): ¥482,668 million· Derivative loss of ¥485,436 million was recorded in connection with the prepaid forward contracts using Alibaba
shares entered into in November 2019 and from April to August 2020 (including the impact of amendments tosome of the contracts made in October and November 2020).
E

Other gain: ¥267,379 million· Foreign exchange gain of ¥87,484 million was recorded for U.S. dollar-denominated borrowings from overseas
subsidiaries conducted by SBG mainly due to the stronger yen.
· 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

5 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, Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited, Moonlight Finance GK, and Delaware
Project 6 L.L.C.

21

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

subsidiary of unsecured notes to be issued by WeWork. However, mainly due to the improvement in the credit
risk of WeWork, the Company reversed ¥31,341 million and ¥46,918 million, respectively.
¥4.5 TRILLION PROGRAM
See “PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)” on
page 6 for details of the sale and monetization of assets, share repurchases, and reduction of debt under the ¥4.5
trillion program.

22

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

INVESTMENT IN LISTED STOCKS AND OTHER INSTRUMENTS BY THE ASSET MANAGEMENT SUBSIDIARIESMain impact on the financial position and gain (loss) on investments(Millions of yen)

Investor

SBG

Investment type

Condensed Interim Consolidated Statement of
Financial Position
Account
Balance at Q3-end(Parentheses show
liabilities)
Investment securities

Actual stocks

Condensed Interim Consolidated Statement of Income
Account

14,204
SB Northstar Actual stocks

Credit transactions
Derivatives

Investments fromasset management
subsidiaries
Securities pledged ascollateral
Borrowed securities

1,039,940
1,227,560-*2Long call options oflisted stocks
Short call options oflisted stocks
Short stock index
futures contracts
Total return swap
contracts related tolisted stocks

Derivative financial
assets in asset management subsidiaries
Derivative financial
liabilities in asset management subsidiaries

Q1

Q2

Q3

Q1-Q3

64,470102,768

40,681

207,919

20,88075,693(41,526)

55,047-(8,060)(84,399)(92,459)-(95,082)

200,740

105,658

Derivative loss on investments at asset management
subsidiaries-(292,346)(285,256)(577,602)

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

85,350(217,027)(169,760)(301,437)

Gain (loss) on investments
attributable to non-controlling interests*3-

131,829

56,305

188,134

Gain (loss) on investments
attributable to owners of
the parent*4

85,350(85,198)(113,455)(113,303)

Realized gain on sales ofinvestments*1
Unrealized gain (loss) on
valuation of investments*1
Realized loss on sales ofinvestments at asset management subsidiaries
Unrealized gain (loss) on
valuation of investments
at asset management
subsidiaries

173,997(24,633)(18,713)

Derivative financial
assets in asset management subsidiaries
Derivative financial
liabilities in asset management subsidiaries

137(21,375)

Notes:
1. Some of the listed shares acquired by SBG during the first quarter were transferred to SB Northstar during
the second quarter. The difference between the acquisition value paid by SBG and the value for its transfer
to SB Northstar (the “Difference Amount”) for a portion of the transferred shares that was sold outside theGroup by SB Northstar is included in “realized gain (loss) on sales of investments.” The Difference Amountfor the portion of shares that continued to be held by SB Northstar at the end of the third quarter is included
in “unrealized gain (loss) on valuation of investments.” When SB Northstar sells the listed shares outside theGroup, the corresponding Difference Amount is reclassified from “unrealized gain (loss) on valuation of investments” to “realized gain (loss) on sales of investments.”
2. The fair value of the securities borrowed for short credit transactions. There were no securities borrowed forshort credit transactions at the third quarter-end.
3. 33% of the gain (loss) on investments at SB Northstar
4. Excludes impacts such as selling, general and administrative expenses and tax expenses.

23

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Impact of the Asset Management Subsidiaries on SBG’s Consolidated Statement of Financial Position*1
As of December 31, 2020
(Millions of yen)
December 31, 2020

Cash and cash equivalents
Investments from asset management subsidiaries
Derivative financial assets in asset management subsidiaries
Other financial assets
Other284,932
1,039,940
174,134
1,381,392
9,887

Total assets

2,890,285

Interest-bearing debt
Derivative financial liabilities in asset management subsidiaries
Other

1,528,759
64,721
14,318

Total liabilities

1,607,798

Investments from Delaware subsidiaries (defined below)*2

1,929,946

Equivalent amount of cash investments by SBG in Delaware subsidiaries
Equivalent amount of loans to and receivables of Delaware subsidiaries held by SBG(the amount entrusted by SBG related to asset management)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Retained earnings
Exchange differences on translating foreign operations

39,7861,870,267
19,893 A(576,045) B(71,414)

Equity1,282,487

C

Notes:
1. SB Northstar’s statement of financial position, excluding the impact of Alibaba shares contributed in kind to SB Northstar by
SBG via Delaware subsidiaries, is presented for reference to show the impact of SB Northstar on Condensed Interim Consolidated Statement of Financial Position of SBG.
2. Investment from the Company’s subsidiaries, Delaware Project 1 L.L.C., Delaware Project 2 L.L.C., and Delaware Project 3
L.L.C. (“Delaware subsidiaries”), to the asset management subsidiary, SB Northstar.

(Calculation of non-controlling interests)
Equivalent amount of cash investments by Masayoshi Son in Delaware subsidiaries
Gain (loss) attributable to non-controlling interests*3
Exchange differences on translating foreign operations
Non-controlling interests (interests of Masayoshi Son)

(Millions of yen)
19,893 A(191,978)(24,624)(196,709) D

Note:
3. One-third of B in the table(Interests in equity (C above))
Interests of SBG
Non-controlling interests (interests of Masayoshi Son)
Equity(Millions of yen)
1,479,196(196,709) D
1,282,487

24

C

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Status of assets
As of December 31, 2020a. Actual stocks(Millions of U.S. dollars)
Fair value as of December 31, 2020

AbCellera Biologics Inc.

272

Adobe Inc.

10

Alphabet Inc. Class C Capital Stock

1,375

Amazon.com, Inc.

7,386

Facebook, Inc.

3,279

Microsoft Corporation

1,105

Netflix, Inc.

582

Pacific Biosciences of California, Inc.

238

PayPal Holdings, Inc.

1,438

salesforce.com, inc.

677

Taiwan Semiconductor Manufacturing Company Limited ADR

1,302

4D Molecular Therapeutics, Inc.

30

Others4,213

NVIDIA Corporation

137

Total

22,045

Note: NVIDIA Corporation shares held by SBG are included in the table above.

b. Derivatives
Fair value as of December 31, 2020*1(Millions of U.S. dollars)
Notional Principal*2

Long call options of listed stocks

1,681

44,324

Short call options of listed stocks(238)(30,549)

Short stock index futures contracts(181)(4,458)

Total return swap contracts related tolisted stocks

(205)

1,727

Total

1,057

11,044

Notes:
1. Parentheses show liabilities
2. Parentheses show short positions

25

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

MAIN INTEREST-BEARING DEBT IN THIS SEGMENT

Borrower
SBG

Balance as of December 31, 2020
in Condensed Interim Consolidated
Statement of Financial Position

Type
Borrowings¥920.7 billion

Corporate bonds¥4,734.8 billion

Lease liabilities¥13.6 billion

Commercial paper¥171.5 billion(Wholly owned subsidiaries conducting fund procurement*1)
West Raptor Holdings, LLC
Prepaid forward contracts usWest Raptor Holdings 2, LLC
ing Alibaba shares (floor conSkybridge LLC
tracts and collar contracts)
Skylark 2020 Holdings Limited
Scout 2020 Holdings Limited
Tigress 2020 Holdings Limited
Moonlight Finance GK
Borrowings using SoftBank
Corp. shares
Delaware Project 6 L.L.C.
Borrowings using T-Mobile
sharesSB Northstar

Borrowings¥2,866.4 billion¥498.4 billion¥449.7 billion¥1,528.8 billion

Note:
1. Borrowings of these wholly owned subsidiaries conducting fund procurement are non-recourse to SBG, except for the borrowing
using T-Mobile shares which SBG partially guarantees.

26

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020(b) SVF1 and Other SBIA-Managed Funds Segment
1. Gain on investment (net) was ¥2,767.3 billion. Segment income, after deducting change in thirdparty interests, was ¥1,758.1 billion.
 SVF1- Realized gain on sales of investments (net) of ¥209.8 billion: Sold a portion of its shares in four
portfolio companies, etc.
- Unrealized gain on valuation of investments (net) of ¥2,110.0 billion from investments held at thethird quarter-end: Recorded ¥1,541.5 billion gain on investments in listed portfolio companies,
particularly DoorDash and Uber, due to strong stock price performance, and ¥568.5 billion on
investments in unlisted portfolio companies driven by increases in their fair values.
 SVF2- Unrealized gain on valuation of investments (net) of ¥542.7 billion: Recorded ¥550.5 billion gain
due to share price increases of KE Holdings and Seer following their listings.
2. Progress of investment
 SVF1- Investments before exit: Held 82 investments as of the third quarter-end at cost totaling $76.3
billion, with the fair value amounting to $90.0 billion.
- Cumulative gross gain*1 since SVF1’s inception reached $20.4 billion, including cumulative realized
gain of $5.2 billion and cumulative derivative gain of $1.5 billion.
 SVF2- Held 26 investments as of the third quarter-end at cost totaling $4.3 billion, with the fair value
amounting to $9.3 billion.
 Other- On January 8, 2021, SBIA’s controlled company SVF Investment Corp., a SPAC, listed on the
Nasdaq.
Note:
1. Cumulative gross gain is 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 1(SVF1) and SoftBank Vision Fund 2 (SVF2). The funds are managed by SBIA, a wholly owned subsidiary of theCompany established in the U.K., which is authorized and regulated by the Financial Conduct Authority.
SVF1 aims to maximize returns from a medium- to long-term perspective, through large-scale investments inhigh-growth-potential companies leveraging AI, particularly in private companies valued at over $1 billion at thetime of investment, colloquially known as “unicorns.” SVF1’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 SVF1
is until November 20, 2029 (unless extended for two additional one-year periods by SBIA).
SVF2 launched in October 2019 with committed capital from SBG, aiming to facilitate the continued acceleration of the AI revolution through investment in market-leading, tech-enabled growth companies across vintage
years. As of the third quarter-end, SBG is the sole limited partner investing in SVF2, with a total committed capitalof $10.0 billion.
To bridge the SoftBank Group’s private and public investing strategies by enabling it to potentially pursue awider range of investment opportunities beyond the investment mandate for the private funds, in the third quarter,
SBIA initiated investment through a SPAC, the first step of which was the initial public offering of its controlled27SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

company SVF Investment Corp. on the Nasdaq on January 8, 2021. SVF Investment Corp. is an investment vehicle
incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses that the company has not yet identified at thetime of the offering, and it aims to complete such business combination within two years from January 12, 2021
(the closing of the offering). SVF Investment Corp. intends to identify, acquire, and manage a business in a technology-enabled sector, leveraging the SoftBank Group’s access to a wide range of compelling investment opportunities through its broad international presence and deep local networks. After such business combination, thecombined company is expected to cease to be SBIA’s controlled company.
Outline of principal funds in the segment
As of December 31, 2020
SoftBank Vision Fund 1

SoftBank Vision Fund 2

SoftBank Vision Fund L.P.

SoftBank Vision Fund II-2 L.P.

98.6
The Company: 33.1*1
Third-party investors: 65.5
SVF GP (Jersey) Limited(The Company’s wholly owned overseas subsidiary)

10.0
The Company: 10.0

Investment period

Ended on September 12, 2019

Minimum fund life

Until November 20, 2029 (in principle)(Investment period and minimum fundlife are not presented as they are subject
to change following the participation of
third-party investors.)

Major limited partnership
Total committed capital(Billions of U.S. dollars)
General partner

SVF II GP (Jersey) Limited(The Company’s wholly owned overseas subsidiary)Note:
1. The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm Limited
shares (all said shares have been contributed) and $2.5 billion (decreased from the previous $5.0 billion) earmarked for purposesof an incentive scheme related to SVF1.
For a complete list of SVF1 and SVF2’s portfolio companies, see the Data Sheets in “Materials” under “Earnings Results Briefing” to be posted in a few days on the Company’s website at https://group.softbank/en/ir/presentations/.

28

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Capital deployment of SVF1
As of December 31, 2020
Total
98.6
84.5
8.6
75.9
14.1

Committed capital (A)Drawn capital6 (B)Return of capital (non-recallable) (C)Outstanding capital (D) = (B) – (C)Remaining committed capital (E) = (A) – (B)The Company
33.1
28.9
0.9
28.0
4.2

(Billions of U.S. dollars)
Third-party investors
65.5
55.6
7.7
47.9
9.9

Note: The Company’s committed capital to SVF1 includes approximately $8.2 billion of an obligation satisfied by using Arm Limited
shares (all said shares have been contributed) and $2.5 billion (decreased from the previous $5.0 billion) earmarked for purposesof an incentive scheme related to SVF1.

As of the third quarter-end, SBG has contributed $4.4 billion of its committed capital to SVF2.
FINANCIAL RESULTS(Millions of yen)

Nine months ended December 31
2019
2020
Gain (loss) on investments at SVF1 and SVF2
(729,007) 2,767,257
14,643
Realized gain on sales of investments
205,274
Unrealized gain (loss) on valuation of
investments(754,828) 2,545,550(727,327) 2,652,701
Change in valuation for the fiscal year
Reclassified to realized gain recorded in
the past fiscal year*1(27,501)(107,151)
10,067
Dividend income from investments
8,219
Derivative gain on investments
1,091
Effect of foreign exchange translation
1,111
7,123
(68,466)
Selling, general and administrative expenses(45,199)(17,092)
Finance cost
(7,634)
190,005
Change in third-party interests in SVF1
(956,736)
596
Other gain
429
(623,964)
Segment income (income before income tax)
1,758,117

Change3,496,264
190,631

Change %-3,300,378
3,380,028-(79,650)(1,848)
1,091
6,012
23,267
9,458(1,146,741)(167)
2,382,081(18.4%)
541.1%(34.0%)(55.3%) B- C(28.0%)-A

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

During the period, SVF1 made follow-on investments totaling $3.5 billion in existing portfolio companies andtheir joint ventures,7 and sold a portion of its shares in four portfolio companies and all of its shares in sevenportfolio companies7 for a total of $4.2 billion,8 of which the initial acquisition costs were $2.2 billion. SVF2
made new and follow-on investments totaling $2.3 billion.

6 Drawn capital of SVF1 excludes the amount repaid to limited partners due to investment plan changes and other reasons after thecapital was drawn.
7 Includes share exchanges. During the first quarter, SVF1 exchanged all of its shares in two portfolio companies for shares in theiraffiliated companies, which are also existing portfolio companies. Such share exchanges are treated as exits from investments andacquisitions of new investments, with the sale price and acquisition cost being recorded in gross, respectively, and with the difference between the acquisition cost of shares initially held and sale price (acquisition cost of the exchanged shares) being recorded asrealized gain and loss on the investments.
8 After deducting transaction fees, etc.

29SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Segment income
A Gain on investments at SVF1 and SVF2: ¥2,767,257 million· SVF1- Realized gain on sales of investments of ¥209,849 million was recorded as a result of the sale by SVF1 of a
portion of its shares in four portfolio companies and all shares of seven portfolio companies.7- Unrealized gain on valuation of investments held by SVF1 at the third quarter-end was ¥2,109,989 million($20,068 million, net) (see “Portfolio of SVF1” below for a breakdown). Unrealized valuation gain totaling$14,667 million for listed portfolio companies, particularly DoorDash and Uber, was recorded due to strong
stock price performance. In addition, unrealized valuation gain totaling $5,401 million was recorded for unlisted portfolio companies, as a result of increases in the fair values of investments that had new funding
rounds or where exits have been decided, as well as increases in the fair values of investments in online
businesses such as e-commerce and property technology, which have seen increased customer usage of services during the COVID-19 crisis.
· SVF2- Unrealized gain on valuation of investments was ¥542,711 million ($5,126 million, net). This was primarily
due to the recording of unrealized valuation gain totaling $5,201 million on investments in KE Holdings andSeer, reflecting share price increases following their listings. See “Portfolio of SVF2” below for other details.
B

Finance cost: ¥7,634 million (decreased ¥9,458 million year on year)

Interest expenses decreased primarily due to a decline in the outstanding balance of borrowings made by SVF1,
resulting from the repayments of borrowings made under a line of credit set up mainly to increase capital efficiency
to fund investments (the “Fund Level Facility”) and those made for the purpose of monetizing a portion of certain
investments (the “Portfolio Financing Facility”).
C Change in third-party interests in SVF1: ¥(956,736) 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 SVF1, net of management and performance fees payable to SBIA, and operating and other expenses of SVF1. See “(2) Third-party
interests in SVF1” under “5. SVF1 and other SBIA-managed funds business” in “(6) Notes to Condensed Interim
Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary
Notes” for details.
As of the third quarter-end, SVF2 is only invested in by SBG and therefore has no third-party interests.

30

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Portfolio of SVF1
As of December 31, 2020
(Billions of U.S. dollars)
Total ((1) + (2) +(3) below)
Cumulative
number ofinvestments
92

Cumulative
investment cost
A1+B1+C1
84.5

Cumulative
investment
returnA2+B2+C2
104.9

Cumulative gain*1
A3+B3+C3
20.4(1) Investments before exit (investments held at the third quarter-end)
Number ofinvestments
Sectora Consumerb Edtechc Enterprised Finteche Frontier Techf Health Techg Logistics
h Proptechi Transportation
Total(Reference)
Listed companies*3
d OneConnectd ZhongAn Insurance
f Guardant Healthf Relay Therapeutics
f Vir Biotechnology
g DoorDashh Opendoor
i UberUnlisted companies
Total

12
1
8
11
9
8
14
9
10
82

Investment cost
A1
10.4
0.7
2.5
4.4
11.0
2.0
8.0
10.1
27.2
76.3

Fair value
A2
14.8
1.1
3.9
3.4
11.2
4.3
16.9
5.9
28.5
90.0

Cumulative
unrealized
valuation
gain (loss)*2
A3
4.4
0.4
1.4
(1.0)
0.2
2.3
8.9
(4.2)
1.3
13.7

9.7
0.1
0.2
0.1
0.3
0.2
0.7
0.4
7.7
66.6
76.3

24.8
0.1
0.1
0.8
1.2
0.6
9.0
1.7
11.3
65.2
90.0

15.1
(0.0)
(0.1)
0.7
0.9
0.4
8.3
1.3
3.6
(1.4)
13.7

14.7
0.0
0.0
0.4
0.9
(0.1)
7.1
1.3
5.1
5.4
20.1

Sale price
B2
2.7
10.7
13.4

Cumulative
realized gain*1
B3
1.6
3.6
5.2

Realized gainrecorded in thefiscal year
Q1-Q3
1.2
0.8
2.0

Fair value/
settlement price
C2
1.5
1.5

Cumulative
derivative gain
C3
1.5
1.5

8

74
82

Unrealized valuation gain (loss)
recorded in thefiscal year
Q1-Q3
3.0
0.4
0.8
(1.2)
0.6
1.4
8.4
0.8
5.9
20.1

(2) Exited investments
Number ofinvestments
Partial exit
Full exit7
Total

10
10

Investment cost
B1
1.1
7.1
8.2

(3) Derivative gain and loss relating to investment
Derivative cost
C1
0.0
0.0

Settled
Total
Notes:
1. Before deducting third-party interests, tax, and expenses
2. For a certain investment that was once decided to be transferred from the Company to SVF1 but later canceled, its unrealized gain
and loss incurred for the period leading up to the decision to cancel the transfer are not included in the presentation.
3. 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.

31

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Portfolio of SVF2
As of December 31, 2020
(Billions of U.S. dollars)
Total ((1) + (2) below)
Cumulative
number ofinvestments
26

Cumulative
investment cost
A1+B1
4.3

Cumulative
investment
returnA2+B2
9.3

Cumulative
gain*1A3+B3
5.0(1) Investments before exit (investments held at the third quarter-end)

Company
Listed companies
KE Holdings
Seer
Unlisted companies
Total

Number ofinvestments Investment cost*2
A1
2
1.4
1.4
0.0
24
2.9
26
4.3

Fair value*2
A2
6.6
6.4
0.2
2.7
9.3

Cumulative
unrealized
valuation
gain (loss)
A3
5.2
5.0
0.2
(0.2)
5.0

Unrealized valuation gain (loss)
recorded in thefiscal year
Q1-Q3
5.2
5.1
0.1
(0.1)
5.1

Sale price
B2
0.0
0.0

Cumulative realized
gain (loss)*1
B3
(0.0)
(0.0)

Realized loss
recorded in thefiscal year
Q1-Q3
(0.0)
(0.0)

(2) Exited investments
Number ofinvestments

Investment cost
B1
0.0
0.0

Partial exit
Total
Notes:
1. Before deducting third-party interests, tax, and expenses
2. The investment amount and fair value of investments before exit in SVF2 include those related to a minor SVF2 ownership
percentage in another portfolio company received as part of the consideration for SVF2’s investment in a portfolio company.

Listings and announced listing plans for SVF1 and SVF2 portfolio companies
As of December 31, 2020; excluding those already listed at the time of investment

Fund
SVF1

SVF2

Company
Investments before exit
Zhongan Insurance
Guardant Health
Uber
Vir Biotechnology
OneConnect
Relay Therapeutics
DoorDash
Opendoor
View
Exited investments
Ping An Good Doctor
Slack
10x Genomics
Investments before exit
KE Holdings
Seer

Listing dateListing method

September 28, 2017
October 4, 2018
May 10, 2019
October 11, 2019
December 13, 2019
July 16, 2020
December 9, 2020
December 21, 2020
March quarter, 2021 (expected)

IPO
IPO
IPO
IPO
IPO
IPO
IPO
Merger with SPAC
Merger with SPAC9

May 4, 2018
June 20, 2019
September 12, 2019

IPO
Direct listing
IPO

August 13, 2020
December 4, 2020

IPO
IPO

9 The merger between View, Inc. and CF Finance Acquisition Corp. II, a SPAC, was announced on November 30, 2020 (U.S. time).
The merger has not yet closed as of February 8, 2021.

32

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020(c) SoftBank Segment
1. Segment income increased 1.8% yoy: Z Holdings Corporation and the enterprise business performed strongly.
2. Business integration of Z Holdings Corporation and LINE Corporation is expected to be completed in March 2021.
(Millions of yen)

Nine months ended December 31
2019
2020

ChangeChange %Net sales
Segment income (income before income tax)

3,617,784
733,3293,805,561
746,219

187,777
12,8905.2%
1.8%

Depreciation and amortization
Gain (loss) on investments
Finance cost
Loss on equity method investments*1
Derivative loss (excluding gain (loss) on
investments)(506,588)
5,541(43,839)(26,371)(537,640)(4,496)(48,849)(26,205)(31,052)(10,037)(5,010)
166

6.1%
11.4%
-

(3)

(135)

(132)

-

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 associate; however, PayPay Corporation has consistently been classified as a subsidiary of 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 in segment
information.

FINANCIAL RESULTS
Segment income increased ¥12,890 million (1.8%) year on year, to ¥746,219 million. This mainly reflected strong
performance by Z Holdings Corporation and the enterprise business, despite recording an impairment loss onequity method investments following a writedown of the equivalent amount of goodwill with regard to an investment in WeWork Japan GK (an equity method associate) and a deterioration in gain on investments.
Income increased in Z Holdings Corporation, mainly due to the consolidation of ZOZO, Inc. in November 2019
and an increase in revenue of the existing e-commerce business. Income in the enterprises business increased due
to an increase in mobile revenue, along with an increase in net sales of cloud services and security solutions
following growth in demand for remote work-related products and services to address the COVID-19 pandemic.
For the consumer business, income increased year on year, mainly due to the reversal of contract liabilities related
to Half Price Support10 in revenues and a decline in sales commissions due to the impact of an amendment to theTelecommunications Business Act,11 which became effective in October 2019.
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”).
10 A program that enables customers to purchase eligible smartphones in 48 monthly installments, with the remaining installment
payments waived if the customer trades in their used handset to upgrade to a designated new model after 24 monthly installments
11 This amendment made it mandatory to have a plan that separates the price of the handset and the communication charges and caps
the discount on mobile handsets at ¥20,000.

33

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

In August 2020, procedures required by competition laws, investment rules, and the laws in each country to carryout the Business Integration were completed. As part of the transactions to realize the Business Integration, SoftBank Corp. conducted a joint tender offer for shares of LINE Corporation from August to September 2020, after
which the shares of LINE Corporation were delisted from the First Section of the Tokyo Stock Exchange in December 2020.12 Furthermore, on January 20, 2021, LINE Corporation decided to conduct a tender offer for theshares of Z Holdings Corporation.
The share exchange, which will be conducted as part of a series of transactions to achieve the Business Integration, is scheduled to become effective on March 1, 2021. In addition, 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.
For more information on SoftBank Corp.’s financial results and business operations, please refer to its website athttps://www.softbank.jp/en/corp/ir/.

(d) Arm Segment
1. Net sales increased 14.6% yoy Technology licensing revenue increased 24.9% yoy (U.S. dollar-based) due to strong demand forArm’s expanding product portfolio since the Company’s acquisition, which has encouraged adoptionof more Arm technology by a wider range of customers.
 Technology royalty revenue increased 17.2% yoy (U.S. dollar-based) largely due to the strong ramp in
5G smartphones and networking equipment as well as increasing shipments into servers.
2. Segment loss deteriorated yoy Segment loss deteriorated ¥9.7 billion yoy mainly due to charges relating to share-based remuneration
following the agreement for sale of all shares in Arm to NVIDIA, and increased bonus payments
relating to achieving certain strategic goals.
3. New licenses signed for Arm’s product portfolio expanded by accelerated R&D investments
 During the period, Arm signed licenses for many products including new processors for Arm-based
servers, smartphones, networking equipment, autonomous systems including industrial robotics andautonomous vehicles, and computational storage.13(Millions of yen)

Nine months ended December 31
2019
2020
Net sales
Segment income (income before income tax)

143,008(35,712)

163,912(45,401)

ChangeChange %20,904(9,689)14.6%-

Note: Segment income includes amortization expenses of ¥36,063 million for the period and ¥37,738 million for the same period of
the previous fiscal year. These expenses are related to intangible assets recognized in the purchase price allocation at the timeof the acquisition of Arm.

12 The American Depositary Shares listed on the New York Stock Exchange were also delisted in December 2020.
13 Data storage devices with computational capabilities

34

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

OVERVIEW
Arm’s operations primarily consist of licensing of semiconductor intellectual property (IP), including the designof energy-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, as well as the impact fromchanges in economic activity caused by COVID-19. If shipments of consumer electronic devices weaken, it may
lead to lower technology royalty revenue, and if customers facing reduced revenues choose to delay licensing
decisions, it may lead to lower technology licensing revenue. However, it is difficult to anticipate the overall
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. In addition, Arm is expecting that, as technology becomes more advanced, its technology will be further
utilized and opportunities will expand over the long term.
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)Nine months ended December 31
2019
2020
Q1

Q2

Q3

Total

Q1

Q2

Q3

Total

ChangeChange %Technology licensing
Technology royalty
Software and services

125
240
53

87
254
55

130
312
63

342
806
171

122
282
53

154
323
58

151
340
65

427
945
176

85
139
5

24.9%
17.2%
2.9%

Total net sales

418

396

505

1,319

457

535

556

1,548

229

17.4%

Net sales for the period increased $229 million (17.4%) year on year as technology licensing revenue, technology
royalty revenue, and software and services revenues all increased.
Technology licensing
Technology licensing revenue for the period increased $85 million (24.9%) year on year. Since being acquired by
the Company, Arm has increased investment in R&D, which has now resulted in a product portfolio that has
expanded the breadth of Arm technology to include processors optimized for servers, automotive electronics, andAI acceleration. This has led to a wider range of customers licensing Arm technology, as well as existing customers
having more Arm technology to choose from, both of which are helping to drive licensing revenues. Despite ongoing uncertainty in the semiconductor industry from the impact of COVID-19, Arm saw strong demand frommajor customers for its latest technologies which led to Arm signing multiple high-valued licenses. This included

35

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

licenses for processors used by customers intending to build Arm-based server chips, smartphones, networking
equipment and for autonomous systems such as industrial robotics and autonomous vehicles.
Technology royalty
Technology royalty revenue for the period increased $139 million (17.2%) year on year. Royalty revenues were
driven by the strong ramp in shipments of Arm-based 5G smartphones and the deployment of networking equipment into 5G base stations as well as increasing shipments into servers.
Software and services
Software and services revenues increased $5 million (2.9%) year on year.
Segment income
Segment loss was ¥45,401 million for the period, deteriorating by ¥9,689 million year on year. This was mainly
due to charges of $93.7 million relating to the increases in the fair value of share-based remuneration alreadygranted to Arm employees and the expected acceleration of the vesting date that were triggered by the proposed
acquisition of Arm by NVIDIA (including one-off charges), and due to a true-up of employee bonus payments of$47.3 million related to achieving certain strategic goals that will support Arm’s long-term success.
In addition, Arm continues to enhance its R&D capabilities by hiring more employees, mainly technologyrelated personnel. The number of Arm employees increased 479 (7.3%) from the end of the same period of theprevious fiscal year, to 6,999 at the third quarter-end.
OPERATIONSRoyalty units14

Royalty units as reported byArm’s licensees
Growth rate (yoy)Jul 1 toSep 302019
Oct 1 toDec 31

Jan 1 toMar 31

Apr 1 toJun 302020
Jul 1 toSep 306.2 billion

6.0 billion

5.4 billion

5.6 billion

6.7 billion

3.3%

13.2%

17.4%

3.7%

8.1%

Arm’s licensees reported shipments of 6.7 billion Arm-based chips for the three-month period ended September
30, 2020. Arm’s unit shipments increased 8.1% year on year, while shipments by the Arm-relevant part of thesemiconductor industry increased 2.5%15 during the same period.

14 This analysis is based on the actual shipments of royalty units (chips incorporating Arm technology) by Arm licensees for thethree-month period ended September 30, 2020, as reported by licensees in royalty reports. Arm’s licensees report their actual shipments of royalty units one quarter in arrears; therefore, the current quarter’s royalty unit analysis is based on chips shipped in theprior quarter. In contrast, technology royalty revenues are accrued in the same quarter the chips are shipped, based on estimates.
During the third quarter, historic chip shipments were restated following a review of the method used to aggregate royalty units.
15 Worldwide Semiconductor Trade Statistics (WSTS) as of January 2021. Excludes memory and analog chips, which do not containprocessor technology. This data is compiled on the basis of data submitted by semiconductor companies participating in the survey.

36

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

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: Arm already has over 95% share of the main chips in mobile devices and, over time, hasbeen successfully increasing royalties per chip.
The first quarter: Arm announced the introduction of a new technology family for premium smartphones,
including a processor, a machine learning accelerator, and a graphics processor.
The second quarter : Arm announced two new processors to be delivered in 2022. These processors are optimized for AI algorithms and augmented reality applications, have enhanced security features, and will deliver increased top performance.
The third quarter: · Qualcomm Technologies, Inc. announced the Snapdragon 888 chip for next generation
5G smartphones based on the Arm Cortex-X1 processor.
· MediaTek Inc. announced the MT8195 chipset designed for next-generation mobile
computers, including Chromebooks, based on Arm Cortex-A78 CPU and Arm Mali G57
GPU.
Infrastructure
Opportunity: Arm has a growing share in networking infrastructure and a nascent share in data center
servers.
The first quarter: · 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.
The second quarter : Arm launched two new processors, Neoverse V1 targeting high-performance computing
and Neoverse N2 for energy-efficient data center and edge computing applications.
The third quarter: Amazon Web Services, Inc. launched new services optimized for networking applications, based on its Arm-based Graviton2 chips which delivers a 40% better price/performance relative to the prior generation (not Arm-based).
Automotive
Opportunity: 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.
The first quarter: Arm announced the development of new software that enables its graphics processors tobe shared by different applications within a vehicle such as infotainment and the dashboard. AUDI AG and Samsung Electronics Co., Ltd. are among customers implementing
Arm’s graphics IP in vehicles to be launched in 2022.
The second quarter : Arm launched three new processors, Cortex-A78AE, Mali-G78AE, and Mali-C71AE, designed to make autonomous systems, including industrial robotics and autonomous vehicles, safer and more reliable.
The third quarter: Telechips Inc., a leading automotive technology provider, announced that it has adopted asuite of Arm technology for its next automotive chip including Arm Mali-G78AE
graphics processor, Arm Cortex-A76 processor, and Arm Ethos-N78 AI processor.
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.
The second quarter : Arm announced the introduction of Cortex-R82 processor, designed specifically for computational storage,13 a new market segment that will help enable IoT gateways, whichconnect IoT devices and the network, and edge servers.
The third quarter: NXP Semiconductors N.V. announced that it will expand its Arm-based i.MX products
for the Industrial and IoT Edge with the integration of Arm’s Ethos AI processors.
For more information about Arm, its business, and its technology, please refer to its website at https://www.arm.com.

37

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020(e) Other(Millions of yen)

Nine months ended December 31
2019
2020
Net sales
Segment income (income before income tax)

ChangeChange %159,868(65,253)

183,381
156,391

23,513
221,64414.7%-(33,036)
14,406(10,885)
2,468(29,811)
228,642(12,243)
19,4893,225
214,236(1,358)17,021(9.8%)
12.5%
689.7%

178

681

503

282.6%

Depreciation and amortization
Gain on investments
Finance cost
Income on equity method investments
Derivative gain (excluding gain (loss) on investments)

Segment income for the Other segment totaled ¥156,391 million. This was primarily due to recording income
before income tax of ¥121,626 million in the investment fund business in Latin America, led by recording gain on
investments of ¥124,933 million following an increase in fair value of investments from the previous fiscal yearend. As of the third-quarter end, the cumulative investment amount by the investment fund business in Latin
America totaled $2,314 million, with a fair value of $3,048 million. In addition, Fortress Investment Group LLC
also recorded gain on investments of ¥94,847 million driven by increases in the fair values of investments held by
the company, which resulted in income before income tax of ¥96,122 million.
On the other hand, PayPay Corporation, which is engaged in smartphone payment services in Japan, recorded
loss before income tax of ¥40,920 million, mainly reflecting its continued marketing promotions aimed at gaining
users and driving service usage, along with proactive measures to increase the number of stores where its services
can be used. Loss before income tax was lower year on year, mainly due to an increase in payment commission
revenue, as well as curbed expenses related to acquiring and retaining users through measures such as changing
the basic allocation rate of points to customers. PayPay Corporation’s payment services continued to see strong
growth, with the number of payments for the period reaching 1,423 million, a 3.3-fold increase year on year.
Results of PayPay Corporation included in the Other segment(Millions of yen)

Nine months ended December 31
2019
2020
Net sales
Loss before income taxes

4,872(55,621)

19,790(40,920)

ChangeChange %14,91814,701306.2%-For a list of portfolio companies of the fund business in Latin America, see the Data Sheets in “Materials” under “Earnings Results Briefing” to be posted in a few days on the Company’s website at https://group.softbank/en/ir/presentations/.

38SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(2) Overview of Financial Position

1. The ¥4.5 trillion program and main impacts
 Sale and monetization of assets
i. Partial sale and monetization of T-Mobile shares*1- Recorded T-Mobile shares totaling ¥1,483.5 billion (as of the third quarter-end) as investment securities for those shares continued to be held by the Company after the sale.
- Borrowed $4.38 billion using T-Mobile shares (margin loan). Of this, $2.3 billion is included as proceeds from the ¥4.5 trillion program.
ii. Entry into several prepaid forward contracts using Alibaba shares- After concluding several prepaid forward contracts using Alibaba shares from April to August 2020,
amendments to some of the contracts were made in October and November 2020. Financial liabilities
totaling ¥2,866.4 billion (as of the third quarter-end) were recorded relating to sale of shares by prepaid forward contracts, including the contract concluded in the previous fiscal year.
iii. Partial sale of SoftBank Corp. shares- Changes in interests in subsidiaries of ¥932.4 billion (increase in capital surplus)
 Reduction of debt
- SBG repaid early ¥300.0 billion of senior loans and repurchased domestic unsecured corporate bondsof ¥167.6 billion (face value).
 Share repurchase- The Company repurchased ¥1,607.8 billion of its own shares during the period.
Of this, the amount acquired based on the ¥4.5 trillion program was ¥1,123.8 billion.

2. Status of main investments and fund procurement related to the asset management subsidiaries*2- Investments in listed stocks: Investments from asset management subsidiaries of ¥1,039.9 billion
Securities pledged as collateral (other financial assets) of ¥1,227.6 billion- Derivative investments: Derivative financial assets in asset management subsidiaries of ¥174.1 billion
Derivative financial liabilities in asset management subsidiaries of ¥64.7 billion- Fund procurement: Executed borrowings (margin loan) of $6.0 billion using Alibaba shares as collateral.
3. Carrying amount of investments from SVF1 and SVF2 accounted for using FVTPL of ¥9,394.9
billion, an increase of ¥2,502.7 billion from the previous fiscal year-end*3
Mainly reflecting the increases in fair values of investments, the carrying amount of investments from
SVF1 amounted to ¥8,430.8 billion (up ¥1,749.1 billion from the previous fiscal year-end) and carrying
amount of investments from SVF2 amounted to ¥964.2 billion (up ¥753.6 billion from the previous fiscal
year-end).
Notes:
1. For details of the merger of Sprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, see “1. Completion of the merger ofSprint and T-Mobile US, Inc. and partial sale of T-Mobile shares, etc.” on page 6 under “PROGRAM TO SELL OR MONETIZE¥4.5 TRILLION OF ASSETS (¥4.5 TRILLION PROGRAM)” in “(1) Overview of Results of Operations.”
2. For details, see “(a) Investment Business of Holding Companies Segment” under “b. Results by Segment” in “(1) Overview ofResults of Operations.”
3. Investment in Arm is not included in investments from SVF1 as Arm is a subsidiary of the Company.

(Millions of yen)March 31, 2020

December 31, 2020

ChangeChange %Total assets

37,257,292

37,858,793

601,501

1.6%

Total liabilities

29,884,375

29,236,487(647,888)(2.2%)

Total equity

7,372,917

8,622,306

1,249,389

16.9%

39

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

December 31, 2020

ChangeCash and cash equivalents

3,369,015

4,452,099

1,083,084

A

Trade and other receivables

2,072,326

2,236,789

164,463

B

Investments from asset management subsidiaries-

1,039,940

1,039,940

C

Derivative financial assets in asset management
subsidiaries-

174,134

174,134

D

Other financial assets

313,487

1,802,697

1,489,210

E

Inventories

185,097

159,919(25,178)

Other current assets

460,970

161,062(299,908)

Assets classified as held for sale

9,236,048

40,287(9,195,761) F

Total current assets

15,636,943

10,066,927(5,570,016)

Property, plant and equipment

1,264,516

1,511,844

247,328

Right-of-use assets

1,293,692

1,163,782(129,910) H

Goodwill

3,998,167

3,875,949(122,218) I

Intangible assets

1,985,972

1,859,023(126,949) J

212,036

234,189

22,153

Investments accounted for using the equity
method3,240,361

3,730,319

489,958

K

Investments from SVF1 and SVF2 accounted
for using FVTPL

6,892,232

9,394,949

2,502,717

LSVF1

6,681,671

8,430,770

1,749,099

SVF2

210,561

964,179

753,618

1,211,511

3,370,933

2,159,422

M

59,2781,066,301

1,007,023

N

Other financial assets

1,100,694

1,291,438

190,744

Deferred tax assets

221,371

156,538(64,833)

Other non-current assets

140,519

136,601(3,918)

Total non-current assets

21,620,349

27,791,866

6,171,517

Total assets

37,257,292

37,858,793

601,501

Costs to obtain contracts

Investment securities
Derivative financial assets

40

GSoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

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 of assets based on the ¥4.5 trillion program. For details, see “(Reference) Cash and cash equivalents by entity” and “(3) Overview of Cash
Flows.”B Trade and other receivables· Trade receivables of SB C&S Corp. and receivables (call loans andloans of the banking business) of The Japan Net Bank, Limited increased.
· Brightstar recorded trade receivables of ¥143,000 million as of the previous fiscal year-end, but it ceased to be a subsidiary of the Company inthe third quarter.

C Investment from asset management subsidiaries

The fair values of listed stocks held by SB Northstar at the third quarterend were recorded.

D Derivative financial assets inasset management subsidiaries

The fair values of long call options of listed stocks and total return swap
contracts related to listed stocks held by SB Northstar at the third quarterend were recorded.

E Other financial assets

SB Northstar pledged collateral for transactions of investment acquisition
using borrowings, short stock index futures contracts, and total returnswap contracts. Securities pledged as collateral of ¥1,227,560 million,
margin deposits of ¥90,051 million, and restricted cash of ¥63,781 million were recorded at the third quarter-end. For details of other financial
assets, see “6. Other financial assets (current)” under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

F Assets classified as held forsale· Sprint’s assets were separately presented in this category at the previous
fiscal year-end in conjunction with the classification of Sprint in the disposal group classified as held for sale; however, these assets were removed as Sprint ceased to be a subsidiary of the Company at the beginning of the fiscal year.
· Boston Dynamics, Inc.’s assets were separately presented in this category in conjunction with the classification of the company in the disposal group classified as held for sale at the third quarter-end.

41

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Components
Non-current assets
G Property, plant and equipment

Main reasons for changes from the previous fiscal year-end
SoftBank Corp. acquired telecommunications equipment including thatfor 5G.

H Right-of-use assets

SoftBank Corp. amortized right-of-use assets related to telecommunications equipment.

I Goodwill

Goodwill of Arm decreased ¥92,837 million due to the stronger yen
against the U.S. dollar.

J Intangible assets

Intangible assets of Arm such as technology and customer relationships
decreased due to regular amortization.

K Investments accounted for using the equity method

Income on equity investments related to Alibaba was recorded.

L Investments from SVF1 andSVF2 accounted for using
FVTPL· SVF1 recorded unrealized gain on valuation of investments (net) of¥2,072,036 million, reflecting increases in the fair value of investments
held at the third quarter-end.
· SVF2 recorded unrealized gain on valuation of investments (net) of¥542,711 million, mainly due to share price increases of KE Holdings
and Seer following their listings.
For details of the status of investments at SVF1 and SVF2, see “(b)SVF1 and Other SBIA-Managed Funds Segment” under “b. Results by
Segment” in “(1) Overview of Results of Operations” on page 27.

M Investment securities· The fair value of T-Mobile shares continued to be held by the Company
after the partial sale totaled ¥1,483,510 million, increasing ¥327,564
million from the time of initial recognition on June 26, 2020 to the third
quarter-end. For details, see “(1) Completion of the merger of Sprint andT-Mobile US, Inc. and partial sale of T-Mobile shares, etc.” on page 6
under “PROGRAM TO SELL OR MONETIZE ¥4.5 TRILLION OF
ASSETS (¥4.5 TRILLION PROGRAM)” in “(1) Overview of Results ofOperations.”· At the investment fund business in Latin America, the fair value of investments increased ¥198,495 million mainly due to valuation uplifts inseveral portfolio companies.

42

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Components

Main reasons for changes from the previous fiscal year-end

N Derivative financial assets· Derivative financial assets of ¥520,831 million were recorded related to
the Company’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. The fair value ofthese shares increased ¥324,518 million from the time of the Merger tothe third quarter-end.
· Derivative financial assets related to several prepaid forward contracts
using Alibaba shares increased ¥463,044 million. Following amendments to some of the contracts (including the contract concluded in theprevious fiscal year) in the third quarter, derivative financial liabilities of¥476,301 million related to the amended contracts was derecognized,
while derivative financial assets of ¥333,193 million was recognized for
newly concluded contracts. For details, see “10. Interest-bearing debt”
under “(6) Notes to Condensed Interim Consolidated Financial Statements” in “3. Condensed Interim Consolidated Financial Statements andPrimary Notes.”(Reference) Cash and cash equivalents by entity(Millions of yen)March 31, 2020 December 31, 2020
SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement, etc.*1/ SB Northstar
SoftBank Group Corp.
Wholly owned subsidiaries conducting fund procurement, etc.*1
SB Northstar
SVF1 and Other SBIA-Managed Funds segment
SVF1
SVF2
SBIA
SoftBank segment
SoftBank Corp.
Z Holdings Corporation*2
OthersOthers
Total

Change1,455,385

1,728,351

272,966

14,730-23,955284,9329,225
284,932

186,028
1,193
38,51742,3894,247
35,300(143,639)
3,054(3,217)148,127
242,977
742,125539,933

572,845
367,194
751,383
641,503424,718
124,217
9,258
101,5703,369,015

4,452,099

1,083,084

Notes:
1. Includes wholly owned subsidiaries conducting fund procurement, Skywalk Finance GK, West Raptor Holdings, LLC, West Raptor
Holdings 2, LLC, Skybridge LLC, Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited,
Moonlight Finance GK, and Delaware Project 6 L.L.C.
2. Includes Yahoo Japan Corporation.

43

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

December 31, 2020

Change3,845,153

5,352,218

1,507,065

Lease liabilities

378,383

317,258(61,125)

Deposits for banking business

873,087

1,105,380

232,293

Third-party interests in SVF1

24,691-(24,691)

1,585,326

1,628,668

43,342-64,72164,721 A

9,267

239,263

229,996 B

Other financial liabilities

248,010

96,488(151,522) C

Income taxes payables

164,298

329,489

165,191 D

Provisions

11,44823,673

12,225

Other current liabilities

596,499642,690

46,191

Liabilities directly relating to assets classified asheld for sale

6,454,971

10,818(6,444,153) E

Total current liabilities

14,191,133

9,810,666(4,380,467)

Interest-bearing debt

9,286,729

11,242,464

1,955,735

761,943

711,421(50,522)

Third-party interests in SVF1

4,559,728

5,455,916

896,188

Derivative financial liabilities

128,075

89,472(38,603) F

Other financial liabilities

77,207110,188

32,981

Provisions

88,791

101,208

12,417

Deferred tax liabilities

711,216

1,548,821

837,605 G

Other non-current liabilities

79,553

166,331

86,778 H

Total non-current liabilities

15,693,242

19,425,821

3,732,579

Total liabilities

29,884,375

29,236,487(647,888)

Interest-bearing debt

Trade and other payables
Derivative financial liabilities in asset management subsidiaries
Derivative financial liabilities

Lease liabilities

44SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Reasons for changes by primary component
Components

Main reasons for changes from the previous fiscal year-end

Current liabilities
A Derivative financial liabilities
in asset management subsidiaries

The fair values of short call options of listed stocks, short stock index futures contracts, and total return swap contracts related to listed stocks
held by SB Northstar at the third quarter-end were recorded.

B Derivative financial liabilities

Derivative financial liabilities of ¥235,930 million were recorded for thecall options received by Deutsche Telekom for T-Mobile shares held by
the Company.

C Other financial liabilities

Valuation loss allowances decreased ¥149,448 million in relation to thefinancial guarantee contract and loan commitment for WeWork, mainly
due to the improvement of its credit risk.

D Income taxes payables

Income taxes payables were recorded primarily for a gain on the partial
sale of SoftBank Corp. shares at SBGJ.

E Liabilities directly relating toassets classified as held forsale· Sprint’s liabilities were separately presented in this category at the previous fiscal year-end in conjunction with the classification of Sprint in
the disposal group classified as held for sale; however, these liabilities
were removed as Sprint ceased to be a subsidiary of the Company at the
beginning of the fiscal year.
· Boston Dynamics, Inc.’s liabilities were separately presented in this category in conjunction with the classification of the company in the disposal group classified as held for sale at the third quarter-end.

Non-current Liabilities
F Derivative financial liabilities

Derivative financial liabilities of ¥476,301 million related to some of the
prepaid forward contracts using Alibaba shares (including the contractconcluded in the previous fiscal year) were derecognized, following
amendments to those contracts in the third quarter. Meanwhile, derivative
financial assets of ¥333,193 million were recognized for newly concluded
contracts. For details, see “10. Interest-bearing debt” under “(6) Notes toCondensed Interim Consolidated Financial Statements” in “3. Condensed
Interim Consolidated Financial Statements and Primary Notes.”

G Deferred tax liabilities

Deferred tax liabilities increased at SBG.

H Other non-current liabilities

A deposit of $1.25 billion received for the sale of all shares of Arm wasrecorded. For details, see “ENTRY INTO AGREEMENT FOR SALE
OF ALL SHARES IN ARM” under “(1) Overview of Results of Operations” on page 11.

45

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(Reference) Interest-bearing debt and lease liabilities (total of current liabilities and non-current liabilities)
March 31, 2020
SoftBank Group Corp. / Wholly owned
subsidiaries conducting fund procurement*1 /SB Northstar
SoftBank Group Corp.
Borrowings
Corporate bonds
Lease liabilities
Commercial paper
Wholly owned subsidiaries conducting fundprocurement*1
Borrowings
Financial liabilities relating to sale of shares by
prepaid forward contracts
SB Northstar
Borrowings
SVF1 and Other SBIA-Managed Funds segment
SVF1
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
OthersOther interest-bearing debt
Lease liabilities
Total(Millions of yen)
December 31, 2020
Change8,247,063
6,528,734
1,388,240
5,034,494
106,000

11,183,700
5,840,543
920,685
4,734,780
13,578
171,500

2,936,637(688,191)(467,555)(299,714)
13,57865,5001,718,329
1,522,228
196,101

3,814,398
948,0212,866,377

2,096,069(574,207)
2,670,276-

1,528,759
1,528,759

1,528,759
1,528,759

581,543
581,543535
535

260,321260,321385
385(321,222)(321,222)
(150)
(150)

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

4,436,750
3,262,017
260,000
747,032
167,701
860,618
302,573
543,910
14,135507,084

607,846
405,990
220,000(85,845)
67,701
21,576(161,025)
189,583(6,982)
93,957

259,801
102,193
14,272,208

285,810
88,693
17,623,361

26,009(13,500)
3,351,153

Notes:
1. Indicates the interest-bearing debts of Skywalk Finance GK, West Raptor Holdings, LLC, West Raptor Holdings 2, LLC, Skybridge
LLC, Skylark 2020 Holdings Limited, Scout 2020 Holdings Limited, Tigress 2020 Holdings Limited, Moonlight Finance GK, andDelaware Project 6 L.L.C. All of these are entirely non-recourse to SBG, except for the interest-bearing debt of Delaware Project
6 L.L.C. The interest-bearing debt of Delaware Project 6 L.L.C. of $4.38 billion is exceptionally guaranteed by SBG to a limit of$2.08 billion. As a precondition for SBG to fulfill its guarantee obligations, the lenders are obligated to first recover the amount to
the maximum extent possible from Alibaba shares that have been pledged as collateral.
2. Includes Yahoo Japan Corporation.

46

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Reasons for changes from the previous fiscal year-end at core companies
SBG / Wholly owned subsidiaries conducting fund procurement / SB Northstar
SBG
・SBG repaid senior loans totaling ¥359.9 billion (including early repayment of ¥300.0 billion).
・SBG redeemed domestic unsecured corporate bonds totaling ¥150.0 billion at maturity and repurchased domestic unsecured corporate bonds with a total face value of ¥167.6 billion.
・Commercial paper increased ¥65.5 billion.
(Wholly owned subsidiaries conducting fund procurement)
Skywalk Finance GK・Skywalk Finance GK repaid $9.44 billion of borrowings made using Alibaba shares (margin loan).
West Raptor Holdings 2, LLC, Skybridge LLC, Skylark 2020 Holdings Limited,
Scout 2020 Holdings Limited, and Tigress 2020 Holdings Limited
・As a result of entering into several prepaid forward contracts using Alibaba shares with financial institutions
from April to August 2020, financial liabilities relating to sale of shares by prepaid forward contracts of¥2,866,377 million were recorded at the third quarter-end, including the contract concluded in the previous fiscal
year. Following amendments to some of the contracts (including the contract concluded in the previous fiscal
year) in the third quarter, financial liabilities relating to the sale of shares by prepaid forward contracts of¥1,382,751 million related to the amended contracts were derecognized, while financial liabilities relating to thesale of shares by prepaid forward contracts of ¥2,179,156 million were recognized for newly concluded contracts.
For details, please see “10. Interest-bearing debt” under “(6) Notes to Condensed Interim Consolidated Financial
Statements” in “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”
Delaware Project 6 L.L.C.
・Borrowings of $4.38 billion were made using T-Mobile shares (margin loan).
SB Northstar
・Short-term borrowings for the purpose of acquiring listed stocks increased ¥909,982 million.
・Borrowings of $6.0 billion were made using Alibaba shares (margin loan).
SVF1 and Other SBIA-Managed Funds segment
・Borrowings under the Fund Level Facility in SVF1 decreased $2.03 billion following repayments.
・Borrowings under the Portfolio Financing Facility in SVF1 decreased $0.80 billion following repayments.
SoftBank segment
SoftBank Corp.
・Borrowings increased mainly due to the securitization of receivables related to telecommunications and the saleand leaseback of telecommunications equipment.
・Domestic straight corporate bonds totaling ¥220.0 billion were issued.
Z Holdings Corporation
・Short-term borrowings were repaid.
・Domestic straight corporate bonds totaling ¥200.0 billion were issued.

47

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

December 31, 2020

ChangeCommon stock

238,772

238,772-

Capital surplus

1,490,325

2,401,783

911,458

496,876

496,876-

Retained earnings

3,945,820

6,899,351

2,953,531

Treasury stock(101,616)(1,687,395)(1,585,779) C

Accumulated other comprehensive income(362,259)(722,766)(360,507) D

Accumulated other comprehensive income directly
relating to assets classified as held for sale205,695(1,582)(207,277) E

Total equity attributable to owners of the parent

5,913,613

7,625,039

Non-controlling interests

1,459,304

997,267

Total equity

7,372,917

8,622,306

Other equity instruments

AB

1,711,426(462,037) F
1,249,389

Reasons for changes by primary component
Components

Main reasons for changes from the previous fiscal year-end

A Capital surplus

Changes in interests in subsidiaries of ¥932,388 million were recorded in conjunction with the partial sale of SoftBank Corp. shares.

B Retained earnings

Net income attributable to owners of the parent of ¥3,055,162 million was recorded.

C Treasury stock· The Company repurchased 102,960 thousand of its own shares for ¥483,971
million in accordance with the March 13, 2020 Board resolution. In the previous fiscal year, the Company repurchased 4,720 thousand shares for ¥16,028
million in accordance with the resolution.
· The Company repurchased 81,940 thousand of its own shares for ¥500,000
million in accordance with the May 15, 2020 Board resolution.
· The Company repurchased 70,579 thousand of its own shares for ¥500,000
million in accordance with the June 25, 2020 Board resolution.
· The Company repurchased 14,993 thousand of its own shares for ¥123,847
million in the third quarter in accordance with the July 30, 2020 Board resolution with a maximum total repurchase amount of ¥1 trillion.

D Accumulated other comprehensive income

Exchange differences from the translation of foreign operations, which arise
from translating overseas subsidiaries and associates into yen, decreased¥388,435 million due to a stronger yen against the major currencies.

48

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Components

Main reasons for changes from the previous fiscal year-end

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

· Sprint’s accumulated other comprehensive income was separately presented
in this category at the previous fiscal year-end in conjunction with the classification of the company in the disposal group classified as held for sale; however, this was removed as Sprint ceased to be a subsidiary of the Company atthe beginning of the fiscal year.
· Boston Dynamics, Inc.’s accumulated other comprehensive income was separately presented in this category in conjunction with the classification of thecompany in the disposal group classified as held for sale at the third quarterend.

F Non-controlling interests· Sprint’s non-controlling interests of ¥424,746 million (as of the previous fiscal year-end) 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.
at the beginning of the fiscal year.
· Non-controlling interests decreased ¥215,857 million in conjunction with SB
Northstar recording a net loss.
· Non-controlling interests increased ¥134,413 million in conjunction with thepartial sale of SoftBank Corp. shares.

49SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020(3) Overview of Cash Flows

1. Completed the sale and monetization of assets for the ¥4.5 trillion program. Progress made on share
repurchase and debt reduction
 Completed the sale and monetization of assets totaling ¥5.6 trillion in the six months between April and
September 2020 through a combination of partial sales of shares and borrowings/monetization using
T-Mobile, Alibaba, and SoftBank Corp. shares.
 Repurchased a cumulative total of ¥1,123.8 billion of own shares by December 31, 2020(a cumulative total of ¥1,607.8 billion for the period, combined with share repurchases resolved beforethe ¥4.5 trillion program). In reducing debts, the Company repurchased domestic unsecured corporate
bonds with a total face value of ¥167.6 billion and repaid early ¥300.0 billion of senior loans by
September 30, 2020.
2. Initiated investments in listed stocks and other instruments from the fiscal year to diversify asset
portfolios and manage surplus funds
 Investments were initially made by SBG directly and later by the asset management subsidiary SB
Northstar starting from the second quarter.
 Investments made by SBG are recorded in cash flows from investing activities: Payments for acquisitionof investments of ¥2,705.4 billion and proceeds from sales/redemption of investments of ¥675.7 billion.
 Investments made by SB Northstar are recorded in cash flows from operating activities as thecompany’s primary business is to frequently trade marketable securities.

(Millions of yen)

Nine months ended December 31
2019
2020
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

623,709(3,759,057)
3,064,630(72,971)(805,934)
2,055,659

Change(696,680)
2,953,123(1,008,971)

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

Cash flows from operating activities decreased ¥696,680 million year on year. This was mainly due to the negative
impact of ¥885,643 million from asset management subsidiary SB Northstar (before elimination of intercompany
transactions), which includes realized loss on investments in listed stocks and derivatives, on cash flows fromoperating activities for the period. The year-on-year decrease was also attributable to Sprint recording cash flowsof ¥431,386 million in the same period of the previous fiscal year.
On the other hand, income taxes paid decreased ¥631,944 million year on year mainly due to income taxes of¥321,290 million being paid in the same period of the previous fiscal year on items such as a gain on the sale of
SoftBank Corp. shares at SBGJ that arose in the fiscal year ended March 2019, as well as a withholding income
tax of ¥422,648 million on dividends from SBGJ to SBG. The latter withholding income tax was refunded in July
2019.

50

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020(b) Cash Flows from Investing Activities

Primary components
Components
Payments for acquisition of investments¥(3,092,052) million

Primary details· SBG acquired highly liquid listed stocks for ¥2,705,425 million withthe aim of diversifying its assets and managing surplus funds.
· SoftBank Corp. acquired shares of LINE Corporation through a joint
tender offer.

Proceeds from sales/redemptionof investments¥2,953,239 million· SBG received proceeds of ¥675,688 million from the sale of a portionof the abovementioned highly liquid listed stocks.
· SBG received proceeds of ¥2,099,746 million from the partial sale ofits T-Mobile shares held through a subsidiary.

Payments for acquisitions of investments by SVF1 and SVF2¥(576,756) million· SVF1 made follow-on investments totaling $3.2 billion in existing
portfolio companies and their joint ventures.
· SVF2 made new and follow-on investments totaling $2.3 billion.

Proceeds from sale of investments
by SVF1¥399,204 million

SVF1 sold investments.

Outlays for purchase of property,
plant and equipment, and intangible assets¥(488,852) million

SoftBank Corp. purchased telecommunications equipment including thatfor 5G.

Note: Out of $2.0 billion received upon the execution of the Purchase Agreement for sale of all shares in Arm, a deposit of $1.25
billion is included in “other” under cash flows from investing activities.

(c) Cash Flows from Financing Activities

Primary components
Components
Proceeds in short-term interestbearing debt, net¥1,421,556 million*1

Primary details· Short-term borrowings for the purpose of acquiring listed stocks at SB
Northstar increased ¥918,335 million (net).
· Borrowings made through the securitization of receivables related totelecommunications at SoftBank Corp. increased ¥262,000 million(net).

Proceeds from interest-bearing debt
¥5,090,846 million
Proceeds from borrowings¥3,009,894 million*2· SBG made short-term borrowings of ¥414,650 million.
· Delaware Project 6 L.L.C. procured $4.38 billion through borrowings
made using T-Mobile shares (margin loan).
· SB Northstar procured $6.0 billion through borrowings made using
Alibaba shares (margin loan).
· SVF1 borrowed $1.38 billion through the Fund Level Facility, which
is a form of loan that allows borrowing up to a maximum amount of$1.48 billion. In the period, SVF1 made several borrowings and repayments under the facility (see “Repayment of borrowings” below).
· SoftBank Corp. borrowed ¥722,010 million. Z Holdings Corporation
made short-term borrowings of ¥190,100 million and borrowings of¥150,000 million.

51

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Components
Proceeds from issuance ofbonds¥420,000 million

Primary details
SoftBank Corp. and Z Holdings Corporation issued domestic straight
corporate bonds totaling ¥220,000 million and ¥200,000 million, respectively.

Proceeds from procurement
by prepaid forwards contract using shares¥1,660,952 million

The Company’s wholly owned subsidiaries conducting fund procurement entered into several prepaid forward contracts using Alibaba
shares with financial institutions and procured an aggregate amount of$15.4 billion.

Repayment of interest-bearing debt¥(4,017,518) million
Repayment of borrowings¥(3,689,332) million*2· SBG repaid short-term borrowings of ¥512,250 million and seniorloans of ¥359,860 million (including early repayment of ¥300,000 million).
· SVF1 repaid $3.41 billion of borrowings under the Fund Level Facility
and $0.80 billion of borrowings under the Portfolio Financing Facility.
· Skywalk Finance GK repaid $9.44 billion in borrowings made using
Alibaba shares (margin loan).
· SoftBank Corp. repaid borrowings of ¥612,087 million and Z Holdings
Corporation repaid short-term borrowings of ¥555,070 million.

Redemption of corporatebonds¥(328,185) million

SBG redeemed domestic unsecured corporate bonds totaling ¥150,000
million at maturity and repurchased domestic unsecured corporate
bonds with a total face value of ¥167,595 million.

Contributions into SVF1 fromthird-party investors¥774,726 million

SVF1 received cash contributions from third-party investors based on
capital calls.

Distribution/repayment from
SVF1 to third-party investors¥(602,731) million

SVF1 made distributions and repayments of investments to third-party
investors.

Proceeds from the partial sales ofshares of subsidiaries to noncontrolling interests¥1,552,957 million

SBG sold portions of SoftBank Corp. shares it owns through SBGJ in
May and September 2020.

Purchase of treasury stock¥(1,607,840) million

SBG repurchased its own shares in accordance with resolutions of theBoard of Directors on March 13, May 15, June 25, and July 30, 2020.

Notes:
1. “Proceeds in short-term interest-bearing debt, net” presents cash flows from financing activities that meet the requirement of“Reporting cash flows on a net basis” under IFRSs.
2. Proceeds from borrowings and repayment of borrowings include proceeds of ¥1,040,132 million and outlays of ¥1,662,468 million,
respectively, related to borrowings with a contracted term of one year or less.

(4) Forecasts

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

52

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

2. Notes to Summary Information(1) Significant Changes in Scope of Consolidation for the Nine-month Period Ended December 31, 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-stocktransaction (“the Transaction”) was completed. Upon completion of the Transaction, Starburst I, Inc. andSprint which were specified subsidiaries of the Company, and Sprint Communications, Inc. which was a
subsidiary of Sprint, were no longer subsidiaries of the Company. The details are described in “Note 3.
Discontinued operations (1) Sprint” in “(6) Notes to Condensed 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)
In May 2020, SoftBank Group Japan Corporation (“SBGJ”), a wholly-owned subsidiary of the Company,
transferred a portion of SoftBank Corp. shares held (ownership percentage: 5.0%) and, in September 2020,
transferred a portion of SoftBank Corp. shares held (ownership percentage: 21.7%).
As a result of the transactions, it was probable that taxable income would be available for a loss carryforward whose deferred tax asset was not recognized in SBGJ. Accordingly, a credit of income taxes(profit) was recorded due to the change in estimate. The details are described in “Note 9. 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 December 31, 2020, expected credit losses for a loan commitment for WeWork, an equity method
associate of the Company, were estimated. As a result, reversal of allowance was recorded. The details aredescribed “Notes 1” in “Note 17. Other gain” in “(6) Notes to Condensed Interim Consolidated Financial
Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”(Allowance for financial guarantee contract losses)
As of December 31, 2020, expected credit losses for a financial guarantee contract for WeWork, an equity
method associate of the Company, were estimated. As a result, reversal of allowance was recorded. The
details are described “Notes 4” in “Note 17. Other gain” in “(6) Notes to Condensed Interim Consolidated
Financial Statements” under “3. Condensed Interim Consolidated Financial Statements and Primary Notes.”

53

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(Impairment of assets)
On September 17, 2020, the Company has entered into a definitive agreement with Brightstar CapitalPartners, in order to sell all of its shares in Brightstar to a newly formed subsidiary of Brightstar CapitalPartners. An impairment loss on goodwill was recorded as the fair value less costs to sell (expected saleprice) of Brightstar is lower than the carrying amount. The details are described in “Note 3. Discontinued
operations (2) Brightstar” in “(6) Notes to Condensed Interim Consolidated Financial Statements” under “3.
Condensed Interim Consolidated Financial Statements and Primary Notes.”

54

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 primary notes)
Company names and abbreviations used in the condensed interim consolidated financial statements and primarynotes, unless otherwise stated or interpreted differently in the context, are as follows:
Company names / Abbreviations

Definition

SoftBank Group Corp.

SoftBank Group Corp. (stand-alone basis)

The Company

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

SB Northstar LP

SoftBank Vision Fund or SVF1

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

SVF2

SoftBank Vision Fund II-2 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

WeWork Inc.

55

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

From the three-month period ended September 30, 2020, the description of “SoftBank Vision Fund and other
SBIA-managed funds” presented in the names of accounts and reportable segment has been changed as follows:
Condensed Interim Consolidated Statement of Financial Position
Previous

Current

Investments from SoftBank Vision Fund and other

Investments from SVF1 and SVF2 accounted for using

SBIA-managed funds accounted for using FVTPL

FVTPL

Third-party interests in SoftBank Vision Fund andThird-party interests in SVF1

other SBIA-managed funds
Condensed Interim Consolidated Statement of Income
Previous

Current

Gain (loss) on investments at SoftBank Vision Fund

Gain (loss) on investments at SVF1 and SVF2

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

Change in third-party interests in SVF1

Fund and other SBIA-managed funds

Condensed Interim Consolidated Statement of Cash Flows
Previous

Current(Gain) loss on investments at SoftBank Vision Fund

(Gain) loss on investments at SVF1 and SVF2

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

Change in third-party interests in SVF1

Fund and other SBIA-managed funds
Payments for acquisition of investments by SoftBank

Payments for acquisition of investments by SVF1 andVision Fund and other SBIA-managed funds

SVF2

Proceeds from sales of investments by SoftBank

Proceeds from sales of investments by SVF1

Vision Fund and other SBIA-managed funds
Contributions into SoftBank Vision Fund and other

Contributions into SVF1 from third-party investors

SBIA-managed funds from third-party investors
Distribution/repayment from SoftBank Vision FundDistribution/repayment from SVF1 to third-party

and other SBIA-managed funds to third-party investors

investors

Segment information
Previous

Current

SoftBank Vision Fund and Other SBIA-Managed

SVF1 and Other SBIA-Managed Funds segment

Funds segment

56SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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
Investments from asset management subsidiaries
Derivative financial assets in asset management
subsidiaries
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 SVF1 and SVF2 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

57

As of
December 31, 2020

3,369,015
2,072,326-

4,452,099
2,236,789
1,039,940-

174,134

313,487
185,097
460,970
6,400,895
9,236,048
15,636,943

1,802,697
159,919
161,062
10,026,640
40,287
10,066,927

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

1,511,844
1,163,782
3,875,949
1,859,023
234,189
3,730,319

6,892,232

9,394,949

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

3,370,933
1,066,301
1,291,438
156,538
136,601
27,791,866
37,858,793

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 SVF1
Trade and other payables
Derivative financial liabilities in asset management
subsidiaries
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 SVF1
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

58

As of
December 31, 2020

3,845,153
378,383
873,087
24,691
1,585,326

5,352,218
317,258
1,105,380
1,628,668-

64,721

9,267
248,010
164,298
11,448596,499
7,736,162

239,263
96,488329,489
23,673642,6909,799,848

6,454,971

10,81814,191,133

9,810,666

9,286,729
761,9434,559,728
128,075
77,20788,791
711,216
79,553
15,693,242
29,884,375

11,242,464
711,4215,455,916
89,472
110,188
101,208
1,548,821
166,331
19,425,821
29,236,487

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

238,7722,401,783
496,876
6,899,351(1,687,395)(722,766)
7,626,621

205,695(1,582)

5,913,613

7,625,039

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

997,267
8,622,306
37,858,793

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statementof Comprehensive Income
For the nine-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)

Continuing operations1
Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of Holding
Companies
Gain (loss) on investments at SVF1 and SVF2
Gain on other investments
Total gain on investments
Selling, general and administrative expenses
Finance cost
Income on equity method investments
Derivative loss (excluding gain (loss) on
investments)
Change in third-party interests in SVF1
Other gain
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 share

59

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020

3,901,300(1,893,605)
2,007,695

4,138,038(1,969,738)
2,168,300

840,664

846,477(729,007)
20,130131,787(1,445,721)(215,525)
472,535

2,728,778
224,201
3,799,456(1,575,206)(224,322)
379,431(17,586)(480,665)

190,005
319,475
1,442,665(731,908)
710,757(956,736)
251,246
3,361,504(975,983)
2,385,521(54,297)
656,460

711,174
3,096,695

476,587
521,841(45,254)
179,873
188,916(9,043)
656,460

3,055,162
2,343,703
711,459
41,53341,818(285)
3,096,695

240.36(21.81)218.55

1,203.29
368.801,572.09

234.24(21.77)212.47

1,108.32
367.85
1,476.17

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Notes:
1. Operating results related to Brightstar are presented as discontinued operations, separately from continuing operations for the ninemonth period ended December 31, 2020 and the three-month period ended December 31, 2020. In order to reflect these changes inpresentation, similar reclassifications have been made for the nine-month period ended December 31, 2019 and the three-month
period ended December 31, 2019. The details are described in “Note 3. Discontinued operations.”
2. Presentation method for the condensed interim consolidated statement of income has been changed from the three-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.

60

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

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

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
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

Nine-month period
ended December 31,
2019656,460

Nine-month period
ended December 31,
2020
3,096,695(12,195)
(725)

9,424

(12,920)

9,424

(486)
43,588863
34,682(189,209)(577,126)

13,148(21,302)(132,959)(562,883)(145,879)
510,581(553,459)
2,543,236

618,982

2,034,854(108,401)

508,382

344,500

2,488,577

431,216

1,979,909(86,716)

508,668

166,081510,581

54,6592,543,236

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

61SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

For the three-month period ended December 31
Condensed Interim Consolidated Statement of Income(Millions of yen)

Continuing operations1
Net sales
Cost of sales
Gross profit
Gain on investments
Gain on investments at Investment Business of Holding
Companies
Gain (loss) on investments at SVF1 and SVF2
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 SVF1
Other gain
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 share

62

Three-month period
ended December 31,
2019

Three-month period
ended December 31,
2020

1,361,581(668,640)
692,941

1,507,507(759,019)
748,488111,247

266,863(199,679)
4,253(84,179)(530,295)(74,953)
18,552

1,392,140
107,142
1,766,145(563,905)(70,514)
178,601(25,300)

280,892

9,230
263,996
269,992(140,435)
129,557(499,199)
79,524
1,920,032(703,701)
1,216,331(5,282)
124,275987
1,217,318

55,03559,413(4,378)69,24070,144(904)
124,275

1,171,951
1,170,966
985
45,36745,3652
1,217,318

24.87(2.12)
22.75

626.580.53
627.1123.46(2.11)
21.35

575.020.53
575.55

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Notes:
1. Operating results related to Brightstar are presented as discontinued operations, separately from continuing operations for the ninemonth period ended December 31, 2020 and the three-month period ended December 31, 2020. In order to reflect these changes inpresentation, similar reclassifications have been made for the nine-month period ended December 31, 2019 and the three-month
period ended December 31, 2019. The details are described in “Note 3. Discontinued operations.”
2. Presentation method for the condensed interim consolidated statement of income has been changed from the three-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.

63

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

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

Net income
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plan
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

Three-month period
ended December 31,
2019
124,275

Three-month period
ended December 31,
2020
1,217,318

9,651
(200)

3,938

9,451

3,938

(1,108)
6,952

38
3,960

406,611(212,291)

12,118(32,046)424,573(240,339)

434,024558,299(236,401)
980,917

511,784

974,985

46,515

5,932

481,796924,908441,297

918,977

40,4995,931

76,503558,299

56,009980,917

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

64SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(3) Condensed Interim Consolidated Statement of Changes in Equity
For the nine-month period ended December 31, 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

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income238,772

1,467,762

496,876

5,571,285(443,482)

290,268

7,621,481---

13,997--

13,997

238,772

1,467,762

496,876

5,585,282(443,482)

290,268

7,635,478---

476,587--

476,587

-

-

-

-

-

(132,087)(132,087)---

476,587-(132,087)

344,500---(68,752)--(68,752)---(15,344)--(15,344)---(7,596)

-

7,596

-

-

(739)

-

(1,265)(207,026)-(209,030)---(558,136)

558,136

-

-

-

-

-

-

-

-

-

-

40,875----40,875-(30,934)

-

-

-

-

(30,934)

Total

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock
Changes from businesscombination
Changes in interestsin subsidiaries
Changes in associates’interests in their subsidiaries
Changes in interests in associates’
capital surplus
Share-based payment transactions

-

4,126

-

-

-

-

4,126

-

2,999

-

-

-

-

2,999

Other

-

-

-

-

-

-

-

-

16,327-(651,093)

351,1107,596(276,060)

238,772

1,484,089

496,876

5,410,776(92,372)

165,777

7,703,918

Total transactions with owners
and other transactions
As of December 31, 201965

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020
(Millions of yen)

Noncontrollinginterests Total equity
As of April 1, 2019

1,387,723

9,009,204(1,357)

12,6401,386,366

9,021,844

179,873

656,460(13,792)(145,879)

166,081510,581(157,598)(226,350)-(15,344)---(209,030)

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
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Retirement of treasury stock--

Changes from businesscombination

191,396

191,396

Changes in interestsin subsidiaries(95,949)(55,074)

Changes in associates’interests in their subsidiaries-(30,934)

Changes in interests in associates’
capital surplus

-

4,126

(2,810)15189
15(64,946)(341,006)

1,487,501

9,191,419

Share-based payment transactions
Other
Total transactions with owners
and other transactions
As of December 31, 2019

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

66

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

For the nine-month period ended December 31, 2020
(Millions of yen)

Equity attributable to owners of the parent

As of April 1, 2020
Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income

Commonstock

Capitalsurplus

Other equity
instruments

Retainedearnings

Treasurystock

Accumulated
othercomprehensive
income238,772

1,490,325

496,876

3,945,820(101,616)(362,259)

5,707,918---

3,055,162--

3,055,162

-

-

-

-

-

(360,890)(360,890)---

3,055,162-(360,890)

2,694,272---(86,841)--(86,841)---(15,339)--(15,339)

-

-

-

1,199

-

(1,199)

-

-

-

-

(650) (1,585,779)-(1,586,429)

Subtotal

Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control

-

-

-

-

-

-

-

Changes in interestsin subsidiaries-

909,691

-

-

-

-

909,691

Changes in associates’interests in their subsidiaries

-

1,486

-

-

-

-

1,486

Changes in interests inassociates’ capital surplus

-

1,243

-

-

-

-

1,243

Share-based paymenttransactions

-

(962)

-

-

-

-

(962)

-

-

-

-

-

1,582

1,582

Other

-

-

-

-

-

-

-

Total transactions with owners
and other transactions-

911,458-(101,631) (1,585,779)

383(775,569)

238,7722,401,783

496,876(722,766)

7,626,621

Transfer of accumulated othercomprehensive income held
for sale

As of December 31, 2020

67

6,899,351(1,687,395)

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020
(Millions of yen)

Equity attributable to owners of theparentAccumulated othercomprehensive income
directly relating to assets
classified as held for sale

As of April 1, 2020

Noncontrollinginterests Total equity

Total

205,695

5,913,613

1,459,304

7,372,917-

3,055,162

41,533

3,096,695(205,695)(566,585)

13,126(553,459)(205,695)

2,488,577

54,6592,543,236-(86,841)(219,314)(306,155)-(15,339)-(15,339)

-

-

-

-

-

(1,586,429)-(1,586,429)--(427,985)(427,985)

Changes in interestsin subsidiaries-

909,691

133,066

1,042,757

Changes in associates’interests in their subsidiaries

-

1,486

-

1,486

Changes in interests in associates’
capital surplus

-

1,243

-

1,243

-

(962)

(775)

(1,737)(1,582)

-

-

-

-

-

(1,688)(1,688)(1,582)(777,151)(516,696) (1,293,847)(1,582)

7,625,039

997,267

Comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
Transactions with owners andother transactions
Cash dividends
Distribution to owners of other
equity instruments
Transfer of accumulated othercomprehensive income toretained earnings
Purchase and disposal of treasury
stock
Changes from loss of control

Share-based payment transactions
Transfer of accumulated othercomprehensive income held
for sale
Other
Total transactions with owners
and other transactions
As of December 31, 2020

68

8,622,306

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

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

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
Loss (gain) on investments at SVF1 and SVF2
Finance cost
Income on equity method investments
Derivative loss (excluding (gain) loss on
investments)
Change in third-party interests in SVF1
Gain on other investments and other gain
Income taxes
Decrease in investments from asset management
subsidiaries
Increase/decrease in derivative financial assets andderivative financial liabilities in asset management
subsidiaries
Increase in restricted cash in asset management
subsidiaries
Increase in securities pledged as collateral in asset
management subsidiaries
Increase in margin deposits in asset management
subsidiaries
Increase in trade and other receivables
Increase in inventories
Increase 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 provided by (used in) operating activities

69

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020

710,757(54,297)
656,460
1,513,845

2,385,521
711,174
3,096,695
628,486(840,664)(1,410,871)

729,007456,616(470,759)(2,728,778)
226,366(379,176)

12,422

480,598(190,005)(344,190)
688,918

956,736(460,054)
978,066-

1,195,610-(114,332)-(65,797)-(1,241,711)-(94,181)(391,414)(323,685)
165,013(286,893)(26,932)
163,701-(722,231)

85,975
1,747,539
34,947(430,475)(1,170,817)
442,515
623,709

175,418
370,720
19,579(187,476)(538,873)
263,079(72,971)SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(Millions of yen)

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020(985,064)
183,595(3,092,052)
2,953,239(1,705,911)(576,756)

48,809(385,626)

399,204(13,824)(57,756)(78,290)

58,494

227,683(937,399)(488,852)(158,027)
79,089100,739(3,759,057)(210,460)
27,761
46,413(805,934)

419,214
7,398,547(4,613,146)(525,009)
1,583,011

1,421,556
5,090,846(4,017,518)(308,875)
774,726(688,696)(602,731)

435

1,552,957(84,225)(68,063)(15,344)(215,946)(68,510)(154,843)
29,142
3,064,630(15,339)(1,607,840)(86,509)(148,726)
71,1752,055,659

16,911(87,890)-(5,780)(53,807)3,858,518
3,804,711

1,083,084
3,369,015
4,452,099

Cash flows from investing activities
Payments for acquisition of investments
Proceeds from sales/redemption of investments
Payments for acquisition of investments by SVF1 and
SVF2Proceeds from sales of investments by SVF1
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, andintangible assets
Payments for loan receivables
Collection of loan receivables
Other
Net cash used in investing activities
Cash flows from financing activities
Proceeds in short-term interest-bearing debt, net
Proceeds from interest-bearing debt
Repayment of interest-bearing debt
Repayment of lease liabilities
Contributions into SVF1 from third-party investors
Distribution/repayment from SVF1 to third-party
investors
Proceeds from the partial sales of shares of subsidiaries
to non-controlling interests
Purchase of shares of subsidiaries from non-controllinginterests
Distribution to owners of other equity instruments
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Decrease in cash and cash equivalents relating to transfer
of assets classified as held for sale
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Notes:

1. Cash flows from continuing operations and cash flows from discontinued operations are included. The details are described in“Note 3. Discontinued operations.”
2. Presentation method for the condensed interim consolidated statement of cash flows has been changed from the three-month period
ended June 30, 2020. The details are described in “Note 1. Changes in presentation.”70SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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. Operating results related to Brightstar are presented as discontinued operations, separately from continuing
operations for the nine-month period ended December 31, 2020 and the three-month period ended December
31, 2020. In order to reflect these changes in presentation, similar reclassifications have been made for thenine-month period ended December 31, 2019 and the three-month period ended December 31, 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
through investment funds (such as SVF1). The Company has been focusing on the investment activities
including those led by SVF1 that began its operation in 2017, thereby transforming business structures.
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 thethree-month period ended June 30, 2020. “Operating income,” as previously presented, did not include gain
and loss on investments other than those included in “Operating income from SoftBank Vision Fund and other
SBIA-managed funds.” Therefore, the Company 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 to present “Operating income” in the consolidated statement ofincome 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
from investments, derivative gain and loss relating to financial assets at FVTPL, and realized gain and loss
from sales of investments accounted for using the equity method.

71SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

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 SVF1 andSVF2,” and “Gain (loss) on other investments.” Investment Business of Holding Companies segment isincluded in the reportable segments from the three-month period ended June 30, 2020. The details aredescribed in “Note 4. Segment information.” Derivative gain and loss other than those mentioned above arepresented 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 (loss) 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 nine-month period ended December 31, 2019 and the threemonth period ended December 31, 2019. The details of the reclassifications in the condensed interim
consolidated statement of income for the nine-month period ended December 31, 2019 are as follows.

72SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

For the nine-month period ended December 31, 2019
(Millions of yen)
Before changes in presentation

Reclassification(after reclassification of discontinued operations)amounts

Continuing operations
Net sales
Cost of sales
Gross profit

3,901,300(1,893,605)-

2,007,695

840,664(729,007)
20,130131,787
Selling, general and administrative
expensesGain relating to loss of control over

After changes in presentation

Continuing operations
3,901,300 Net sales(1,893,605)
Cost of sales
2,007,695 Gross profit
Gain (loss) on investments
Gain (loss) on investments at
840,664
Investment Business of Holding
Companies
Gain (loss) on investments at SVF1
(729,007)and SVF2
20,130Gain (loss) on other investments
131,787 Total gain (loss) on investments
Selling, general and administrative
expenses(1,376,956)(68,765)(1,445,721)

11,879(11,879)-

6,349(6,349)-648,967(648,967)-(797,763)

797,763-(148,796)(215,525)

148,796-(215,525)

469,184

3,351

472,535

332,230(332,230)-

Foreign exchange gain (loss)5(8,844)

8,844-

Derivative gain (loss)6(24,556)

6,970(17,586)

1,218,527(1,218,527)-(357,740)

357,740-

190,005-

190,005(11,820)

11,820-1,442,665(731,908)

319,475-

710,757-

710,757(54,297)-

656,460-

Discontinued operations
Net income from discontinued(54,297)
operations
656,460 Net income

subsidiaries1
Other operating income (loss)2
Operating income (excluding operating
income from SoftBank Vision Fundand other SBIA-managed funds)
Operating income from SoftBank
Vision Fund and other
SBIA-managed funds3
Operating income
Finance cost
Income (loss) on equity method
investments
Dilution gain from changes
in equity interest4

Gain relating to settlement ofvariable prepaid forward contracts
using Alibaba shares7
Gain (loss) from financial
instruments at FVTPL8
Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds
Other non-operating income (loss)9
Income before income tax
Income taxes
Net income from continuing operations
Discontinued operations
Net income from discontinued
operations
Net income

73

Finance cost
Income (loss) on equity method
investments

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

Change in third-party interests in
SVF1

319,475
Other gain (loss)
1,442,665 Income before income tax(731,908)
Income taxes
Net income from continuing operations

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Notes:
1. ¥11,879 million previously presented in “Gain relating to loss of control over subsidiaries” was reclassified as “Other gain (loss).”
2. ¥6,349 million previously presented in “Other operating income (loss)” was reclassified as “Gain (loss) on other investments” for¥9,147 million, “Income (loss) on equity method investments” for ¥3,351 million, and “Other gain (loss)” for ¥(6,149) million.
3. Of ¥(797,763) million previously presented in “Operating income from SoftBank Vision Fund and other SBIA-managed funds,”
gain and loss on investments was reclassified as “Gain (loss) on investments at SVF1 and SVF2” for ¥(729,007) million and otheramounts were reclassified as “Selling, general and administrative expenses” for ¥(68,766) million and “Other gain (loss)” for ¥10
million.
4. “Dilution gain from changes in equity interest,” which was separately presented, was reclassified as “Other gain (loss)” since theamount became not significant.
5. ¥(8,844) million previously presented in “Foreign exchange gain (loss)” was reclassified as “Other gain (loss).”
6. Derivative gain and loss relating to gain and loss on investments of ¥(6,970) million, which was previously presented in“Derivative gain (loss),” was reclassified as “Gain (loss) on investments at Investment Business of Holding Companies” for¥(6,118) million and “Gain (loss) on other investments” for ¥(852) million.
7. ¥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.”
8. ¥(357,740) million previously presented in “Gain (loss) from financial instruments at FVTPL” was reclassified as “Gain (loss) on
investments at Investment Business of Holding Companies” for ¥(371,746) million and “Gain (loss) on other investments” for¥14,006 million.
9. Of ¥(11,820) million previously presented in “Other non-operating income (loss),” dividend income and gain and loss on sales ofshares of associates were reclassified as “Gain (loss) on other investments” for ¥(2,169) million and other amount was reclassified
as “Other gain (loss)” for ¥(9,651) million.

74

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(Condensed interim consolidated statement of cash flows)
For the nine-month period ended December 31, 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
Depreciation and amortization
Gain relating to loss of control
over subsidiaries1(Gain) loss on investments at
SoftBank Vision Fund and other
SBIA-managed funds
Finance cost
(Income) loss on equity method
investments
Dilution gain from changes in equity
interest2
Derivative (gain) loss3
Gain relating to settlement ofvariable prepaid forward contract

After changes in presentation

Cash flows from operating activities
Net income from continuing
710,757
operations
Net income from discontinued(54,297)
operations
656,460 Net income

710,757-(54,297)-

656,460-

1,513,845-

1,513,845(11,879)

11,879--(840,664)(840,664)(Gain) loss on investments at
Investment Business of Holding
Companies

729,007-729,007(Gain) loss on investments at SVF1
and SVF2

456,616-

456,616(467,408)(3,351)(470,759)(332,230)

332,230-

19,392(6,970)12,422(1,218,527)

1,218,527-

357,353(357,353)-(190,005)-(190,005)

16,467(16,467)-(344,190)(344,190)

688,918-

688,918(391,414)-(391,414)(323,685)-(323,685)

165,013-

165,01379,616

6,359

85,975

Other

1,747,539-

1,747,539

Subtotal

Depreciation and amortization

Finance cost
(Income) loss on equity method
investments

Derivative (gain) loss (excluding(gain) loss on investments)using Alibaba shares4(Gain) loss from financial
instruments at FVTPL5
Change in third-party interests in
SoftBank Vision Fund and other
SBIA-managed funds
Foreign exchange (gain) loss andother non-operating (income) loss6

Income taxes(Increase) decrease in trade and otherreceivables(Increase) decrease in inventories
Increase (decrease) in trade and otherpayablesOther7
Subtotal

75

Change in third-party interests in
SVF1(Gain) loss on other investments andother (gain) loss
Income taxes(Increase) decrease in trade and otherreceivables(Increase) decrease in inventories
Increase (decrease) in trade and otherpayablesSoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Notes:
1. ¥(11,879) million previously presented in “Gain relating to loss of control over subsidiaries” was reclassified as “(Gain) loss onother investments and other (gain) loss.”
2. “Dilution gain from changes in equity interest,” which was separately presented, was reclassified as “(Gain) loss on otherinvestments and other (gain) loss” since the amount became not significant.
3. Derivative gain and loss relating to gain and loss on investments of ¥6,970 million, which was previously included in “Derivative(gain) loss,” was reclassified as “(Gain) loss on investments at Investment Business of Holding Companies” for ¥6,118 million and“(Gain) loss on other investments and other (gain) loss” for ¥852 million.
4. ¥(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.”
5. ¥357,353 million previously presented in “’(Gain) loss from financial instruments at FVTPL” was reclassified as “(Gain) loss on
investments at Investment Business of Holding Companies” for ¥371,746 million and “(Gain) loss on other investments and other(gain) loss” for ¥(14,393) million.
6. ¥16,467 million previously presented in “Foreign exchange (gain) loss and other non-operating (income) loss” was reclassified as“(Gain) loss on other investments and other (gain) loss.”
7. ¥(6,359) million previously included in “Other” was reclassified as “(Income) loss on equity method investments” for ¥(3,351)
million and “(Gain) loss on other investments and other (gain) loss” for ¥(3,008) million.

76SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

2. Significant accounting policies
Significant accounting policies applied to the condensed interim consolidated financial statements are the sameas 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 nine-month period ended December 31, 2020are calculated based on the estimated effective tax rate for the fiscal year.
(1) Significant accounting policies for the SVF1 and Other SBIA-Managed Funds segment
For SVF1 and SVF2, the Company applies the following accounting policies.
a. Consolidation of SVF1 and SVF2 by the Company
SVF1 and SVF2 are limited partnerships established by its general partner which is a wholly-owned
subsidiary of the Company, and by its form of organization, qualifies as a structured entity. SVF1 and SVF2
are consolidated by the Company for the following reasons.
The various entities comprising SVF1 and SVF2 make investment decisions through its investmentcommittee, which was established as a committee of SBIA. SBIA is an advisory company and is a whollyowned subsidiary of the Company. As such, the Company has power as defined under IFRS 10“Consolidated Financial Statements” over SVF1 and SVF2. Furthermore, SBIA receives performance fees
and the Company receives distributions attributable to limited partners based on the investment performanceas returns from SVF1 and SVF2. The Company has the ability to affect those returns through its power over
SVF1 and SVF2, and therefore, the Company is deemed to have control as stipulated in IFRS 10 over SVF1
and SVF2.
Inter-company transactions such as management fees and performance fees to SBIA paid or to be paid from
SVF1 and SVF2 are eliminated in consolidation.
b. Portfolio company investments made by SVF1 and SVF2(a) Investments in subsidiaries
Of the portfolio company investments made by SVF1, the portfolio companies that the Company isdeemed 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 SVF1 areeliminated in consolidation.

77

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020(b) Investments in associates and joint ventures
Of the portfolio company investments made by SVF1 and SVF2, the portfolio companies over which theCompany has significant influence under IAS 28 “Investments in Associates and Joint Ventures” areassociates of the Company, and the portfolio companies that are joint ventures of SVF1 and SVF2 when,as defined under IFRS 11 “Joint Arrangements,” SVF1 and SVF2 have joint control with other investors
under contractual arrangements and the investors have rights to the net assets of the arrangement.
The investments in associates and joint ventures of the Company made by SVF1 and SVF2 are accounted
for as financial assets at FVTPL in accordance with paragraph 18 of IAS 28, and presented as“Investments from SVF1 and SVF2 accounted for using FVTPL” in the condensed interim consolidated
statement of financial position. The payments for these investments are presented as “Payments foracquisition of investments by SVF1 and SVF2” and the proceeds from sales of these investments arepresented as “Proceeds from sales of investments by SVF1” under cash flows from investing 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 SVF1 and SVF2 are
accounted 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 ofcash flows are the same as the above “(b) Investments in associates and joint ventures.”c. Contribution from limited partners to SVF1 and SVF2
SVF1 and SVF2 issues capital calls to its limited partners (“Capital Call”).
No contributions from limited partners other than the Company were made into SVF2 from inception to
December 31, 2020.
(a) Contribution from limited partners other than the Company
The interests attributable to limited partners other than the Company (“Third-Party Investors”) areclassified as financial liabilities, “Third-party interests in SVF1” in the condensed interim consolidated
statement of financial position, due to the predetermined finite life and contractual payment provision toeach 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 inaccordance with the limited partnership agreement in a theoretical liquidation scenario at the end of eachquarter.
“Third-party interests in SVF1” fluctuates due to the results of SVF1 in addition to contributions fromThird-Party Investors in satisfaction of Capital Call, and distributions and repayments of investments toThird-Party Investors. The fluctuations due to the results of SVF1 are presented as “Change in third-party
interests in SVF1” in the condensed interim consolidated statement of income.

78SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Contributions from Third-Party Investors to SVF1 are included in “Contributions into SVF1 from thirdparty investors” under cash flows from financing activities in the condensed interim consolidated
statement of cash flows. The distributions and repayments of investments to Third-Party Investors areincluded in “Distribution/repayment from SVF1 to third-party investors” under cash flows fromfinancing 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.
(2) Significant accounting policies for the asset management subsidiary
SB Northstar, a subsidiary of the Company, is engaged in various transactions such as acquisition and sale oflisted stocks, derivative transactions related to listed stocks, and credit transactions for diversification of theassets held and management of surplus funds. “The asset management subsidiary” described in the condensed
interim consolidated financial statements and the notes indicates SB Northstar.
For SB Northstar, the Company applies the following accounting policies.
a. Investments from the asset management subsidiary
The investments made by SB Northstar (except for investments in associates) are accounted for as financial
assets at FVTPL as the investments meet the definition of financial assets held for sale in accordance withIFRS 9 and presented as “Investments from assets management subsidiaries” under current assets in thecondensed interim consolidated statement of financial position. At initial recognition, the investments aremeasured at fair value and transaction costs directly arising from the acquisition of financial assets arerecognized as net of profit and loss. Subsequent to initial recognition, they are measured at fair value andvaluation gain and loss arising from changes in fair value and dividend income are included in “Gain (loss)
on investments at Investment Business of Holding Companies” in the condensed interim consolidated
statement of income. In addition, the changes in investment amounts due to acquisition and sale ofinvestments from SB Northstar are presented as net of “(Increase) decrease in investments from asset
management subsidiaries (cash flows from operating activities)” in the condensed interim consolidated
statement of cash flows. The investments in associates of the Company made by SB Northstar are accounted
for using the equity method and included in “Investments accounted for using the equity method” in thecondensed interim consolidated statement of financial position.

79

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

b. Restricted cash
Restricted cash in SB Northstar is the deposit pledged as collateral to the brokers for acquisition transactionsof investments using borrowings, derivative transactions, and credit transactions and its usage is restricted.
The restricted cash is included in “Other financial assets (current)” in the condensed interim consolidated
financial position and presented as net of “(Increase) decrease in restricted cash in asset management
subsidiaries (cash flows from operating activities)” in the condensed interim consolidated statement of cash
flows.
c. Securities pledged as collateral
Of securities pledged as collateral, securities which the recipient can sell or pledge them as re-collateral are
separated from “Investments from asset management subsidiaries” and included in “Other financial assets(current)” in the condensed interim consolidated statement of financial position. In addition, the securities
pledged as collateral in SB Northstar are presented as net of “(Increase) decrease in securities pledged ascollateral in asset management subsidiaries (cash flows from operating activities)” in the condensed interim
consolidated statement of cash flows.
d. Margin deposits
Margin deposits in SB Northstar are the deposits pledged as collateral for unsettled balance for acquisitionand sale of investments and unsettled derivatives to the brokers and are included in “Other financial assets(current)” in the condensed interim consolidated statement of financial position. At initial recognition, they
are measured at fair value and subsequent to initial recognition, they are measured at amortized cost. In
addition, margin deposits in SB Northstar are presented as net of “(Increase) decrease in margin deposits inasset management subsidiaries (cash flows from operating activities)” in the condensed interim consolidated
statement of cash flows.
e. Borrowed securities
The securities borrowed for short credit transactions have obligations for delivery of future financial assets
and meet the definition of financial liabilities held for sale in accordance with IFRS 9. Therefore, they areaccounted for as financial instruments at FVTPL and included in “Other financial liabilities (current)” in thecondensed interim consolidated statement of financial position. At initial recognition and subsequent toinitial recognition, they are measured at fair value and valuation gain and loss arising from changes in fairvalue are included in “Gain (loss) on investments at Investment Business of Holding Companies” in thecondensed interim consolidated statement of income. In addition, borrowed securities in SB Northstar arepresented as net of “Increase (decrease) in borrowed securities in asset management subsidiaries (cash flows
from operating activities)” in the condensed interim consolidated statement of cash flows.

80SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

3. Discontinued operations(1) Sprint
As of March 31, 2020, it was highly probable that Sprint would merge with T-Mobile US, Inc. and would nolonger 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 theCompany acquired from the merger transaction was higher than the carrying amount of Sprint shares.
On April 1, 2020, the merger of Sprint and T-Mobile US, Inc. was completed under the business combinationagreement which the Company entered into with the parties, including Sprint, T-Mobile US, Inc. andDeutsche Telekom AG (“Deutsche Telekom”) on April 29, 2018 (EST) (“Business Combination Agreement,”
which was previously amended by an amendment dated July 26, 2019 and February 20, 2020).
Under the merger transaction, Starburst I, Inc. which held Sprint shares and Galaxy Investment Holdings, Inc.
were merged with and into 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, with Sprint 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 andowned 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 ofApril 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 other comprehensive income, and non-controlling interests in Sprint) wasrecorded as gain relating to loss of control for the nine-month period ended December 31, 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 the second 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 number of shares to be surrendered, subject to the terms and conditions included
as part of the Business Combination Agreement.

81

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

The Company recognizes the fair value of the contingent consideration as “Derivative financial assets (noncurrent)” in the condensed interim consolidated statement of financial position and ¥196,313 million isrecorded as of the acquisition date. In addition, changes in the fair value after the acquisition date isrecognized as “Gain on investments at Investment Business of Holding Companies” in the condensed interim
consolidated statement of income.
Operating results related to Sprint for the nine-month period ended December 31, 2019 and gain relating toloss of control over Sprint for the nine-month period ended December 31, 2020 are presented as discontinued
operations, separately from continuing 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
the Company on June 26, 2020. As a result of the transaction, 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 wasno longer considered as an equity method associate of the Company. The details are described in “Note 19.
Additional information.”82

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020a. Disposal group classified as held for sale(Millions of yen)

As ofMarch 31, 2020
Assets classified as held for sale
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Costs to obtain contracts
Investments accounted for using the equity
methodInvestment securities
Other financial assets
Other non-current assets
Total non-current assets
Total assets
Liabilities directly relating to assets classified asheld for saleInterest-bearing debt
Lease liabilities
Trade and other payables
Income taxes payables
Provisions
Other current liabilities
Total current liabilities
Interest-bearing debt
Lease liabilities
Derivative financial liabilities
Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities

83

As of
December 31, 2020

240,982
385,511
7,166
97,712
131,240
862,611-

1,890,600
763,529
322,978
5,082,956
196,438

-

3,049

-

3,225
47,14063,522
8,373,437
9,236,048-

331,881
202,743
395,415
1,949
8,720
292,041
1,232,749-

3,591,777583,348
5,189
4,298
81,261
746,834
209,515
5,222,222
6,454,971-

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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 ofDecember 31, 2020

(3,454)-

209,149-

205,695-

Nine-month period
ended December 31,
2019
2,492,101(1,574,616)(719,137)(235,662)(52,430)

Nine-month period
ended December 31,
2020-(89,744)-

46,631-(43,113)--721,068(43,113)721,068(43,113)721,068(52,669)(205,694)(95,782)

515,374

b. Results of operations from discontinued operations(Millions of yen)

Net sales
Cost of sales
Selling, general and administrative expenses
Finance cost
Other
Income from discontinued operations before
income tax
Income taxes
Income from discontinued operations after income
tax
Gain relating to loss of control overdiscontinued operations1,2
Net income from discontinued operations
Net income from discontinued operations
Other comprehensive income from discontinued
operations
Comprehensive income from discontinued
operations

Notes:
1. Tax expense is presented as zero in the condensed interim consolidated statement of income because the expected taxable income
at SoftBank Group Corp. will not be material 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.
2. The Company may indemnify T-Mobile and its subsidiaries against any losses incurred by Sprint and its subsidiaries due to thecessation of T-Mobile’s and its subsidiaries’ access to the frequencies of Sprint and its subsidiaries under certain circumstances
based on the Business Combination Agreement, which the Company entered into with the parties, including Sprint, T-Mobile US,
Inc., and Deutsche Telekom, in principle. It was probable that the Company would indemnify the losses incurred. Accordingly,¥26,139 million including ¥4,315 million which is the reasonably estimated provision as of December 31, 2020, was recorded as
the indemnification for the nine-month period ended December 31, 2020. The indemnification and expenses arising from themerger transaction are deducted from gain relating to loss of control under discontinued operations.

84SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020c. Cash flows from discontinued operations(Millions of yen)

Nine-month period
ended December 31,
2019431,386(423,408)(423,840)(415,862)

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

Nine-month period
ended December 31,
2020(41,833)(41,833)

The disposal of Sprint shares as of April 1, 2020 was conducted as a share exchange with T-Mobile sharesand is correspond to a non-cash transaction.
(2) Brightstar
On September 17, 2020, the Company has entered into a definitive agreement with Brightstar CapitalPartners, in order to sell all of its shares in Brightstar to a newly formed subsidiary of Brightstar CapitalPartners. Upon this agreement, it was highly probable that Brightstar would no longer be a subsidiary of theCompany at the completion of the transaction. Accordingly, assets, liabilities, and accumulated othercomprehensive income of Brightstar were reclassified as a disposal group classified as held for sale.
Brightstar was measured at the fair value less costs to sell (expected sale price) as the expected sale price islower than the carrying amount of Brightstar. As a result, the Company recorded an impairment loss on
goodwill for ¥12,423 million.
On October 22, 2020, the sale of all shares in Brightstar was completed. As a result of the transaction,
Brightstar was excluded from the scope of consolidation of the Company. The difference between theconsideration less costs to sell and the carrying amount of Brightstar (assets, liabilities, accumulated othercomprehensive income, and non-controlling interests in Brightstar) was recorded as gain relating to loss ofcontrol for the nine-month period ended December 31, 2020.
Operating results related to Brightstar are presented as discontinued operations, separately from continuing
operations, in the condensed interim consolidated statement of income. Also, the above impairment loss on
goodwill and gain relating to loss of control are presented as discontinued operations.
The consideration consists of cash proceeds of $685 million and a 25% stake (equivalent to $90 million) in a
newly formed subsidiary of Brightstar Capital Partners, which holds all shares in Brightstar. The acquired
shares are preferred stock investments whose feature is substantially different from common stock, therefore
the preferred stock is measured at fair value and accounted for as financial instruments at FVTPL.

85

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

a. Results of operations from discontinued operations

Net sales
Cost of sales
Selling, general and administrative expenses
Finance cost
Other
Income from discontinued operations before
income tax
Income taxes
Income from discontinued operations after income
tax
Gain relating to loss of control overdiscontinued operations
Net income from discontinued operations
Net income from discontinued operations
Other comprehensive income from discontinued
operations
Comprehensive income from discontinued
operations

Nine-month period
ended December 31,
2019696,403(661,289)(37,090)(5,429)(139)(Millions of yen)
Nine-month period
ended December 31,
2020
330,929(303,409)(18,992)(2,044)(15,459)(7,544)(8,975)(3,640)(2,082)(11,184)(11,057)-

1,163(11,184)(9,894)(11,184)(9,894)(1,435)

2,902(12,619)(6,992)b. Cash flows from discontinued operations(Millions of yen)

Nine-month period
ended December 31,
2019
48,567(3,295)(38,842)
6,430

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

86

Nine-month period
ended December 31,
2020
38,733(4,807)(1,475)32,451

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 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
Fund and 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 theinvestment activities has increased even further for the overall consolidated financial results of the Company.
Consequently, business segments that are regularly reviewed by the Company’s Board of Directors havebeen changed. As a result of the change, from the three-month period ended June 30, 2020, the Company has
revised its segment classifications and the Investment Business of Holding Companies segment has been
added to the reportable segments. In addition, from the three-month period ended September 30, 2020, theCompany has entered into a definitive agreement with Brightstar Capital Partners, in order to sell all of its
shares in Brightstar held by the Company to a newly formed subsidiary of Brightstar Capital Partners. It ishighly probable that Brightstar will no longer be a subsidiary of the Company. As a result, Brightstar has
been classified as discontinued operations and the Brightstar segment is excluded from the reportablesegments.
Accordingly, from the three-month period ended September 30, 2020, the Company has four reportablesegments: the Investment Business of Holding Companies segment, the SoftBank Vision Fund and Other
SBIA-Managed Funds segment, the SoftBank segment, and the Arm segment. The SoftBank Vision Fundand Other SBIA-Managed Funds segment was renamed to the SVF1 and Other SBIA-Managed Funds
segment from the three-month period ended September 30, 2020.
The Investment Business of Holding Companies segment conducts, mainly through SoftBank Group Corp. asa strategic investment holding company, investment activities in a wide range of sectors in Japan andoverseas 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 (“SBGJ”), SB Northstar that is an asset management subsidiary, and certain subsidiaries of theCompany that conduct investment or funding. SB Northstar is engaged in various transactions such as
acquisition and sale of listed stocks, derivative transactions related to listed stocks, and credit transactions fordiversification of the assets held and management of surplus funds. 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.

87SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

The SVF1 and Other SBIA-Managed Funds segment conducts, mainly through SVF1 and SVF2, investment
activities in a wide range of technology sectors. Gain and loss on investments at SVF1 and SVF2 consist ofgain and loss arising from investments held by SVF1 and SVF2 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.
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, andthe Fukuoka SoftBank HAWKS-related operations.
“Reconciliations” includes an elimination of intersegment transactions, as well as an elimination of gain andloss on the investment in shares in Arm, a subsidiary of the Company, which are included in segment incomeof the SVF1 and other SBIA-Managed Funds and an elimination of income on equity 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 nine-month period ended December 31, 2019 and for the three-month period
ended December 31, 2019 is presented based on the reportable segments after the aforementioned change.
(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 reportablesegments to be reported to the Company’s Board of Directors in order to make decisions about the allocationof resources and assess 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 statementof income, “Gain (loss) on investments” included in segment income includes realized gain and loss fromsales of investments in financial assets at FVTPL for which investment performance is measured at fairvalue, unrealized gain and loss on valuation of investments, dividend income from investments, derivative
gain and loss relating to investments in financial assets at FVTPL, and realized gain and loss from sales ofinvestments 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 forexternal customers.

88SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

For the nine-month period ended December 31, 2019
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

3,611,928
5,856

142,731
277

Total

-

-

3,617,784

143,008

1,403,596(623,964)

733,329(35,712)(2,143)(230)(506,588)(52,915)

840,664(729,007)

5,541

183

(147,600)(17,092)(43,839)(375)

471,259-(26,371)636(17,839)

-

(3)

78

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers

3,754,659

146,641-

3,901,300

6,133

13,227(19,360)-

Total

3,760,792

159,868(19,360)

3,901,300

Segment income

1,477,249(65,253)

30,6691,442,665

Depreciation andamortization(561,876)(33,036)-(594,912)

Gain (loss) on
investments

117,381

14,406-

131,787(208,906)(10,885)

4,266(215,525)

445,5242,468

24,543

472,535(17,764)

178-(17,586)

Intersegment

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

89SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

For the nine-month period ended December 31, 2020
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds*

SoftBank

Arm

Net sales
Customers
Intersegment--

3,798,193
7,368

163,257
655

Total

-

-

3,805,561

163,912762,985

1,758,117

746,219(45,401)(1,550)(396)(537,640)(54,706)

846,477

2,767,257(4,496)55(157,769)(7,634)(48,849)(620)

363,660-(26,205)

1,852(482,668)

-

(135)

1,457

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers

3,961,450

176,588-

4,138,038

8,023

6,793

(14,816)-

Total

3,969,473

183,381(14,816)

4,138,038

Segment income

3,221,920

156,391(16,807)3,361,504

Depreciation andamortization(594,292)(29,811)-(624,103)

Gain (loss) on
investments

3,609,293

228,642(38,479)

3,799,456(214,872)(12,243)

2,793(224,322)

339,307

19,48920,635

379,431(481,346)

681-(480,665)Intersegment

Finance cost
Income (loss) on equity
method investments
Derivative gain (loss)(excluding gain (loss) on
investments)
Note:* The details of the difference between “Gain (loss) on investments” in the SVF1 and Other SBIA-Managed Funds segment and “Gain(loss) on investments at SVF1 and SVF2” in the condensed interim consolidated statement of income are described in “Note 5.
SVF1 and other SBIA-managed funds business.”

90SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

For the three-month period ended December 31, 2019
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,242,340
2,144

54,371
92

Total

-

-

1,244,484

54,463

307,812(223,930)

214,881(14,892)(1,292)(103)(175,729)(17,861)

111,247(199,679)(2,359)-(50,423)(7,868)(15,264)

230

17,562-(12,190)413(25,218)

-

53

78

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers

1,296,711

64,870-1,361,581

2,236

3,085

(5,321)-

1,298,947

67,955(5,321)

1,361,581

Segment income

283,871(24,457)

10,578269,992

Depreciation andamortization(194,985)(13,674)-(208,659)

Gain (loss) on
investments(90,791)

6,612-(84,179)(73,325)(3,724)

2,096(74,953)

5,785

2,130

10,637

18,552(25,087)(213)-(25,300)

Intersegment
Total

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

91SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

For the three-month period ended December 31, 2020
(Millions of yen)

Reportable segments
Investment Businessof Holding Companies

SVF1 and Other
SBIA-Managed Funds

SoftBank

Arm

Net sales
Customers
Intersegment--

1,375,149
2,645

57,586
329

Total

-

-

1,377,794

57,915

737,637

844,128

212,935(20,582)

(575)

(130)

(189,631)(17,940)

266,863

1,355,690

1,547

55

(49,594)(1,406)(15,929)(201)

169,053-(9,076)

175

279,749

-

(93)

305

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

Total

Other

Reconciliations

Consolidated

Net sales
Customers

1,432,735

74,772-

1,507,507

2,974

2,481

(5,455)-

Total

1,435,709

77,253(5,455)

1,507,507

Segment income

1,774,118

103,392

42,522

1,920,032

Depreciation andamortization(208,276)(8,479)-(216,755)

Gain oninvestments

1,624,155

105,540

36,4501,766,145(67,130)(4,238)854(70,514)160,152

12,581

5,868

178,601

279,961931-

280,892

Intersegment

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

92SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

5. SVF1 and other SBIA-managed funds business(1) Income and loss arising from the SVF1 and other SBIA-managed funds businessa. Overview
Segment income arising from the SVF1 and other SBIA-managed funds business (income before income tax)
represents the net profits of the SVF1 and other SBIA-managed funds business, after deducting the net
profits attributable to Third-Party Investors. The net profits attributable to Third-Party Investors are theamount after deducting management fees and performance fees that SBIA receives from SVF1.
The amount of the net profits attributable to Third-Party Investors that is deducted from the segment income
is presented as “Change in third-party interests in SVF1.”
b. Segment income arising from the SVF1 and other SBIA-managed funds business
The components of segment income arising from the SVF1 and other SBIA-managed funds business are as
follows:
Nine-month period
ended December 31,
2019(Millions of yen)
Nine-month period
ended December 31,
2020

Gain (loss) on investments at SVF1 and SVF2
Realized gain on sales of investments

14,643

205,274(727,327)

2,652,701(27,501)(107,151)

10,067

8,219

-

1,091

1,111

7,123

(729,007)

2,767,257

Selling, general and administrative expenses(68,466)(45,199)

Finance cost (interest expenses)(17,092)(7,634)

Change in third-party interests in SVF1

190,005(956,736)

596

429

(623,964)

1,758,117

Unrealized gain (loss) on valuation of
investments
Change in valuation for the fiscal year1
Reclassified to realized loss recorded in thepast fiscal year2
Dividend income from investments
Derivative gain on investments
Effect of foreign exchange translation3

Other gain
Segment income arising from the SVF1 and other
SBIA-managed funds business (income before
income tax)

93

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

Notes:
1. In September 2020, the Company entered into a definitive agreement with NVIDIA Corporation in order to sell all of its
shares in Arm, a subsidiary of the Company, held by the Company (including shares held by SVF1). Given entry into thedefinitive agreement, SVF1 recorded ¥38,387 million of unrealized gain for the nine-month period ended December 31,
2020 upon the fair value estimation of Arm held by SVF1.
The unrealized gain arising from Arm shares held by SVF1 is included in “Gain (loss) on investments at SVF1 and
SVF2” (in Change in valuation for the fiscal year under Unrealized gain (loss) on valuation of investments) in the abovementioned segment income. However, as Arm is a subsidiary of the Company, the unrealized gain is eliminated inconsolidation and is not included in “Gain (loss) on investments at SVF1 and SVF2” in the condensed interim consolidated
statement of income.
2. It represents the unrealized gain and loss on valuation of investments recorded as “Gain (loss) on investments at SVF1 and
SVF2” in the past fiscal years, which are reclassified to realized gain and loss on sales of investments due to the sales of theshares.
3. Unrealized gain and loss on investments are translated using the average exchange rate for the quarter in which the gain andloss were recognized, while realized gain and loss 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 gain and loss and realized gain and loss.

(2) Third-party interests in SVF1
a. Terms and conditions of contribution from/ distribution to limited partners
Contributions by the limited partners are classified as “Equity” and “Preferred Equity” depending on theterms and conditions of distribution. Preferred Equity is prioritized over Equity with regard to distribution
and return of contribution.
Performance-based distributions attributed to limited partners, consisting of the Company and Third-Party
Investors, are calculated using the net proceeds from the investment performance of SVF1. 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 tolimited 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 SVF1
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 ofthe months June and December.
In the following table, Third-Party Investors contributing Equity are defined as “Investors entitled toperformance-based distribution” and Third-Party Investors contributing Preferred Equity are defined as“Investors entitled to fixed distribution.”

94

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

b. Changes in interests attributable to Third-Party Investors
Changes in interests attributable to Third-Party Investors (“Third-party interests in SVF1” included in thecondensed 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 andnon-current liabilities)

Consolidated statement
Consolidated statement ofof income
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

4,584,419
774,726-

774,726

956,736(956,736)-(602,731)-(602,731)(257,234)--

152,379

fixed distribution
Attributable to investors entitled toperformance-based distribution
Distribution/repayment to third-party
investors
Exchange differences on translating
third-party interests*
As of December 31, 2020

804,357

5,455,916

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

c. Uncalled committed capital from Third-Party Investors
Uncalled committed capital from SVF1’s Third-Party Investors as of December 31, 2020 was $9.9 billion.
No contributions from Third-Party Investors were made into SVF2 from the inception to December 31, 2020,
and there were no third-party interests in SVF2 as of December 31, 2020.

95SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(3) Management fees and performance fees to SBIA
Terms and conditions of management fees and performance fees to SBIA from SVF1, included in segment
income from the SVF1 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 bymultiplying 1% per annum by Equity contributions and paid to SBIA by SVF1 quarterly. A clawback
provision is attached to the management fees received, which is triggered under certain conditions based on
future investment performance.
b. Performance fees to SBIA
Same as the performance-based distributions, the amount of the performance fees to SBIA is calculated using
the allocation method as specified in the limited partnership agreement. SBIA is entitled to receive theperformance fees when SVF1 receives cash through disposition, dividend and monetization of an investment.
From the inception of SVF1 to December 31, 2020, the cumulative amount of performance fees paid to SBIA
was $439 million. For the nine-month period ended December 31, 2020, no performance fees were paid to
SBIA.
In addition, the performance fees received are subject to clawback provisions which are triggered undercertain conditions based on future investment performance.

96SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

6. Other financial assets (current)
The components of other financial assets (current) are as follows:(Millions of yen)
As ofMarch 31, 2020
Marketable securities pledged as collateral in asset

As ofDecember 31, 2020-

1,227,560

Derivative financial assets2

30,087240,702

Restricted cash3

23,907

106,492-

90,051

230,234

66,181Time deposits (maturities of more than three months)

9,925

34,517

Other

19,33437,194313,487

1,802,697

management subsidiaries1

Margin deposits in asset management subsidiaries4
Marketable securities

Total
Notes:

1. The details are described in “c. Securities pledged as collateral” in “(2) Significant accounting policies for the asset
management subsidiary” under “Note 2. Significant accounting policies.”
2. The increase was primarily due to prepaid forward contracts using Alibaba shares. The details are described in “Notes 3” in“(1) Components of interest-bearing debt” under “Note 10. Interest-bearing debt.”
3. ¥63,781 million of restricted cash in the asset management subsidiary is included as of December 31, 2020. The details aredescribed in “b. Restricted cash” in “(2) Significant accounting policies for the asset management subsidiary” under “Note2. Significant accounting policies.”
4. The details are described in “d. Margin deposits” in “(2) Significant accounting policies for the asset management
subsidiary” under “Note 2. Significant accounting policies.”

7. Disposal group classified as held for sale
As of December 11, 2020, the Company agreed on main terms of a transaction with South Korea-based Hyundai
Motor Company and its affiliates (collectively “Hyundai Motor Group”) and Euisun Chung, Chairman ofHyundai Motor Group, pursuant to which (i) the Company will sell the majority of its shares held in Boston
Dynamics, Inc. (“Boston Dynamics”), to Hyundai Motor Group and Euisun Chung, and (ii) Hyundai Motor
Group and Euisun Chung will subscribe for additional shares of Boston Dynamics. Upon this agreement, it ishighly probable that Boston Dynamics will no longer be a subsidiary of the Company. Accordingly, assets,
liabilities, and accumulated other comprehensive income of Boston Dynamics were reclassified as a disposalgroup classified as held for sale. The disposal group classified as held for sale was measured at the carrying
amount as the consideration from the sale transaction was higher than the carrying amount of Boston Dynamics.
The carrying amounts of assets, liabilities, and accumulated other comprehensive income in Boston Dynamics
are ¥40,287 million, ¥10,818 million, and ¥(1,582 million), respectively as of December 31, 2020. The
transaction requires regulatory approval and satisfaction of certain closing conditions and is expected to becompleted by June 2021.

97SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

8. Derivative financial assets (non-current)
The increase was primarily due to the prepaid forward contracts using Alibaba shares and the contingent
consideration related to the acquisition of T-Mobile shares. The details are described in “Notes 3” in “(1)Components of interest-bearing debt” under “Note 10. Interest-bearing debt” for the prepaid forward contracts
using Alibaba shares and in “(1) Sprint” under “Note 3. Discontinued operations” for the contingent
consideration related to the acquisition of T-Mobile shares.
9. Income taxes
For the nine-month period ended December 31, 2020
In May 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”), SBGJ, a wholly-owned subsidiary of theCompany, transferred a portion of SoftBank Corp. shares held (ownership percentage 5.0%). Additionally, in
September 2020, in order to further enhance its cash reserves, a portion of SoftBank Corp. shares held(ownership percentage 21.7%) was transferred.
¥1,526,867 million of proceeds was received due to the transfers in May 2020 and in September 2020. SoftBank
Corp. remains a subsidiary as of December 31, 2020. Accordingly, ¥460,067 million, the equivalent amount ofincome taxes for gain on sales of SoftBank Corp. shares on a consolidation basis, is deducted from capitalsurplus as “Changes in interests 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 SBGJ and a credit of income taxes (profit) was recorded for¥159,802 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) was recorded for¥96,258 million.

98

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

10. 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

As ofDecember 31, 2020

Current
1,529,458

2,188,611

206,000

339,201

1,949,571

1,531,233

159,938

385,709

186

244

-

907,220

3,845,153

5,352,218

Long-term borrowings1

3,821,473

4,129,816

Corporate bonds

5,268,883

5,152,981

272

509

196,101

1,959,158

9,286,729

11,242,464

Short-term borrowings1
Commercial paper
Current portion of long-term borrowings1,2
Current portion of corporate bonds
Current portion of installment payables
Current portion of financial liabilities relating tosale of shares by prepaid forward contracts3
Total
Non-current

Installment payables
Financial liabilities relating to sale of shares by
prepaid forward contracts3
Total
Notes:

1. Short-term borrowings and long-term borrowings as of December 31, 2020 include ¥108,453 million and ¥151,868 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 SVF1, respectively.
2. On July 8, 2020, Skywalk Finance GK, a wholly-owned subsidiary of the Company, made an early repayment for the total
amount of borrowings ($9.44 billion) using Alibaba shares pledged as collateral. As a result, current portion of long-termborrowings decreased by ¥1,024,872 million. Accordingly, the collateral was released on the same date.
3. 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. As part of the “¥4.5
trillion program,” for the nine-month period ended December 31, 2020, West Raptor Holdings 2, LLC (“WRH2 LLC”),
Skybridge LLC, and Skylark 2020 Holdings Limited (“Skylark Limited”), Scout 2020 Holdings Limited (“Scout Limited”)
and Tigress 2020 Holdings Limited (“Tigress 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 the settlement
dates. A cap and a floor are set for the price of shares settled.

99SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020b. Contract for the nine-month period ended December 31, 2020: Procured total amount ¥1,660,952 million ($15.4 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 the settlement
dates. A floor is set for the price of shares settled.
(c) Collar contract: Procured amount ¥918,531 million ($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 the settlement
dates. A cap and a floor are set for the price of shares settled.
(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 is enteredinto in preparation for Alibaba shares price rise. A portion of the procured amount is used for the payment of option
premium.
(e) Collar contract: Procured amount ¥97,897million ($0.9 billion)
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 afloor are set for the price of shares settled.
(f) Collar contract and call spread: Procured amount ¥81,339 million ($0.8 billion)
The settlement is expected in August 2024. 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 afloor are set for the price of shares settled. In addition to the prepaid forward contracts, the call spread contract is enteredinto in preparation for Alibaba shares price rise.
For the nine-month period ended December 31, 2020, of the aforementioned prepaid forward contracts regarding thecontracts a. and b. (c), amendment of the contract to revise the cap and floor for the price of shares settled has executed andregarding the contract b. (a) amendment of the contract to change to collar contract which a cap and a floor are set for the
price of shares settles has executed. Due to the amendments, the settlement is expected: October 2021 and November 2021
for contract a.; October 2022 and November 2022 for contract b. (a); and from October 2021 to June 2022 for contract b. (c).
The amendments of the contracts are applicable for as exchanges of debt instruments with substantially different terms under
IFRS, and accounted for as extinguishments of the original financial liabilities relating to the sale of shares by prepaid
forward contracts and the recognition of new financial liabilities relating to the sale of shares by variable prepaid forward
contracts. Including the new variable prepaid forward contracts, the aforementioned prepaid forward contracts are classified
as hybrid financial instruments with embedded derivatives and the embedded derivatives are measured at fair value and thecall spread is measured at fair value as well. In addition, for the derivative financial assets and the derivative financial
liabilities recognized from the variable prepaid forward contracts, a tax effect is recognized.

100

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

As a result of the amendments, upon the extinguishment of the original contracts, ¥1,382,751 million of financial liabilities
related to the sale of shares by prepaid forward contracts and ¥476,301 million of derivative financial liabilities (non-current)
are derecognized. On the other hand, ¥2,179,156 million of new financial liabilities related to the sale of shares by variable
prepaid forward contracts and ¥333,193 million of derivative financial assets are newly recognized and ¥16,211 million of
cash is paid as a difference in exchange value between the original and new contracts. Further, along with the fluctuation ofderivative financial assets and derivative financial liabilities, ¥275,756 million of deferred tax liabilities is increased and thesame amount of income taxes is increased, representing the tax effect.
Embedded derivatives are recognized for ¥212,516 million as “Derivative financial assets (current),” for ¥427,572 million as“Derivative financial assets (non-current),” and for ¥30,856 million as “Derivative financial liabilities (non-current)” and thecall spread is recognized for ¥40,481 million as “Derivative financial assets (non-current)” in the condensed interim
consolidated statement of financial position as of December 31, 2020.
WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited have the option to settle allof the prepaid forward contracts by delivering cash, Alibaba shares, or a combination of cash and Alibaba shares. If WRH
LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited elect cash settlement, WRH LLC,
WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited will pay the cash equivalent to the fairvalue of the number of shares subject to the settlement, as determined by reference to the market price of the shares.
Alibaba shares held by WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited, and Tigress Limited arepledged as collateral in accordance with all of the prepaid forward contracts, and except for the contract by Tigress Limited,
the Company granted right of use to the financial institutions with respect to such shares. However the collateral can bereleased by cash settlement at the discretion of WRH LLC, WRH2 LLC, Skybridge LLC, Skylark Limited, Scout Limited,
and Tigress Limited. Alibaba continues to be an equity method associate of the Company after the completion of thesetransactions because the Company still has significant influence over Alibaba via voting rights. Alibaba shares, pledged ascollateral by the Company in accordance with the prepaid forward contracts, are recognized as “Investments accounted forusing the equity method” in the condensed interim consolidated statement of financial position as of December 31, 2020 andthe carrying amount is ¥526,640 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)

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020

Net increase of short-term borrowings

228,214

1,353,056

Net increase of commercial paper

191,000

68,500419,214

1,421,556

Total

101

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(3) Components of proceeds from interest-bearing debt
The components of “Proceeds from interest-bearing debt” in the condensed interim consolidated statement ofcash flows are as follows:(Millions of yen)

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020

Proceeds from borrowings

5,989,402

3,009,894

Proceeds from issuance of corporate bonds

1,230,000

420,000

179,145

1,660,952

7,398,547

5,090,846

Proceeds from procurement by prepaid forward
contracts using shares*
Total
Note:

* The amount is procured under the prepaid forward contracts using Alibaba shares. The details are described in “Notes 3”
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 ofcash flows are as follows:(Millions of yen)

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020(3,682,050)(3,689,332)

Redemption of corporate bonds(922,545)(328,186)

Payment of installment payables(8,551)-(4,613,146)(4,017,518)

Repayment of borrowings

Total

102

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

11. Financial instruments(1) Option contracts
The details of option contracts are as follows:
Option contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2020

As ofDecember 31, 2020

Carrying amount(fair value)

Carrying amount(fair value)

AssetsLong call option of listed stocks in asset

AssetsLiabilities--

173,997

-

-

-

-

(24,633)--

520,831

-

5,009

-

640,088(30,856)--

40,481----(235,930)

management subsidiaries
Short call option of listed stocks in asset
management subsidiaries
Contingent consideration relating toacquisition of T-Mobile shares1
Prepaid forward contracts using Alibaba shares2
Call spread contracts relating to prepaid

Liabilities

forward contracts using Alibaba shares2
Short call option for T-Mobile shares to Deutsche
Telekom AG3

Notes:
1. Acquired due to the merger transaction with Sprint and T-Mobile US, Inc. The details are described in “(1) Sprint” under “Note3. Discontinued operations.”
2. Increase was due to prepaid forward contracts using Alibaba shares and call spread contracts relating to prepaid forward
contracts using Alibaba shares. The details are described in “Notes 3” in “(1) Components of interest-bearing debt” under “Note
10. Interest-bearing debt.”
3. Call options for T-Mobile shares which the Company granted to Deutsche Telekom in relation to the transfer of T-Mobile share.
The details are described in “Note 19. Additional information.”(2) Futures contracts
The details of futures contracts are as follows:
Futures contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2020

As ofDecember 31, 2020

Carrying amount(fair value)

Carrying amount(fair value)

AssetsShort stock index futures contracts in asset
management subsidiaries

Liabilities-

103

Assets-Liabilities-(18,713)

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(3) Swap contracts
The details of Swap contracts are as follows:
Swap contracts to which hedge accounting is not applied(Millions of yen)
As ofMarch 31, 2020

As ofDecember 31, 2020

Carrying amount(fair value)

Carrying amount(fair value)

AssetsTotal return swap contracts of listed stocks in asset

Liabilities-

management subsidiaries

104

Assets-Liabilities
137(21,375)

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

12. Foreign currency exchange rates
Exchange rates of the major currencies used for translating financial statements of foreign operations are as
follows:(1) Rate at the end of the period
(Yen)
As of
March 31, 2020

As ofDecember 31, 2020

USD

108.83103.50

CNY

15.31

15.88

GBP*

133.32-(2) Average rate for the quarter
For the nine-month period ended December 31, 2019
(Yen)
Three-month period ended
June 30, 2019

Three-month period ended
September 30, 2019

Three-month period ended
December 31, 2019

USD

110.00107.70108.98

CNY

16.13

15.37

15.46

GBP*

140.88132.73139.55For the nine-month period ended December 31, 2020
(Yen)
Three-month period ended
June 30, 2020Three-month period ended
September 30, 2020Three-month period ended
December 31, 2020

USD

107.74105.88104.45

CNY

15.16

15.27

15.71

Note:
* From 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 hadchanged 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.

105

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

13. Equity(1) Capital surplus
In May 2020, SBGJ, a wholly-owned subsidiary of the Company, transferred a portion of SoftBank Corp.
shares held (ownership percentage 5.0%) as part of “the ¥4.5 trillion program.” Additionally, in September
2020, in order to further enhance its cash reserves, a portion of SoftBank Corp. shares held (ownership
percentage 21.7%) was transferred. As a result of the transactions, ¥932,388 million of the equivalent amountfor gain on sales of SoftBank Corp. shares after considering income taxes on a consolidation basis isrecorded 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 unconditionalright to avoid delivering cash or another financial asset except for distribution of residual assets on
liquidation.
(3) Treasury stock
Changes in treasury stock are as follows:(Thousands of shares)

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020

Balance at the beginning of the period

46,827

21,818

Increase during the period*

28,619270,476

Decrease during the period(56,991)(4,125)

Balance at the end of the period

18,455

288,169

Note:* For the nine-month period ended December 31, 2020, due to purchases of treasury stock under the resolution passed at theBoard of Directors meeting held on March 13, 2020, the number of treasury stock increased by 102,960 thousand shares(amount purchased ¥483,971 million). In addition, under the resolutions passed at the Board of Directors meetings held on
May 15, 2020, June 25, 2020, and July 30, 2020, the number of treasury stock increased by 167,512 thousand shares (amountpurchased ¥1,123,846 million) as part of “the ¥4.5 trillion program.”

106SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(4) Accumulated other comprehensive income
The components of accumulated other comprehensive income are as follows:(Millions of yen)

As ofMarch 31, 2020

As ofDecember 31, 2020

Equity financial assets at FVTOCI

5,115

2,518

Debt financial assets at FVTOCI

580

395

13,12843,838(381,082)(769,517)(362,259)(722,766)

Cash flow hedges
Exchange differences on translating
foreign operations
Total

107

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

14. 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 loss on sales of investments at asset
management subsidiaries
Unrealized gain on valuation of investments at asset
management subsidiaries
Derivative loss on investments at asset management
subsidiaries
Realized gain on sales of investments
Unrealized gain (loss) on valuation of investments

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020-

421,755

1,218,527--(92,459)-

105,658-(577,602)

3,181

204,947(378,139)

533,432

Derivative gain (loss) on investments2(6,118)248,558

Other

3,213

2,188

840,664

846,477

Total

Notes:
1. On June 26, 2020, the Company transferred 173,564,426 shares out of 304,606,049 shares of T-Mobile common stock heldand ¥280,341 million of gain on sales of shares of associates was recorded for the nine-month period ended December 31,
2020. Additionally, the Company transferred 5,000,000 shares on July 16, 2020 and 19,750,000 shares on August 3, 2020 at$103.00 per a share. As a result of the transactions, ¥3,122 million of realized loss on sales of investments and ¥3,014
million of gain related to derecognition of derivative financial liabilities were recorded for the nine-month period ended
December 31, 2020. The derivative financial liabilities were recorded as the difference between the carrying amount of TMobile shares as of June 26, 2020 and the fair value as of June 30, 2020 in the condensed interim consolidated financial
statements as of June 30, 2020 because the transaction price was fixed at $103.00 per a share under the agreement on June
26, 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 June 26,
2020. Accordingly, ¥296,013 million of gain from remeasurement relating to discontinuing the use of the equity method forthe shares, which were continuously held at the time of discontinuing the use of the equity method, was recorded for thenine-month period ended December 31, 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 nine-month period ended December 31, 2020.
As a result of the transactions, ¥421,755 million of gain relating to sales of T-Mobile shares was recorded for the ninemonth period ended December 31, 2020. The details are described in “Note 19. Additional information.”108

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

2. ¥324,518 million of derivative gain on investments was recorded due to changes in the fair value of contingent considerationacquired from the merger transaction with Sprint and T-Mobile US, Inc. for the nine-month period ended December 31,
2020. The details are described in “(1) Sprint” under “Note 3. Discontinued operations.”(2) Gain and loss on investments at SVF1 and SVF2
The details are described in “Note 5. SVF1 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)

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020

Realized gain (loss) on sales of investments(3,678)

11,817

Unrealized gain on valuation of investments

17,241

194,290

Derivative gain (loss) on investments

(852)

9,485

Other

7,419

8,609

20,130224,201Total
15. Finance cost
The components of finance cost are as follows:(Millions of yen)Interest expenses

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020(215,525)(224,322)

16. Derivative loss (excluding gain (loss) on investments)
For the nine-month period ended December 31, 2020
Derivative loss of ¥485,436 million was recorded for the prepaid forward contracts using Alibaba shares and thecall spread contracts related to the prepaid forward contracts using Alibaba shares. The details of the contracts
are described in “Notes 3” in “(1) Components of interest-bearing debt” under “Note 10. Interest-bearing debt.”

109SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

17. Other gain
The components of other gain and loss are as follows:(Millions of yen)

Nine-month period
ended December 31,
2019

Nine-month period
ended December 31,
2020

Interest income

23,268

11,422Foreign exchange gain (loss)(8,844)

87,110-46,918332,230

45,631-42,603-35,528(27,179)(17,966)

319,475

251,246

Reversal of allowance for loan commitment losses1
Dilution gain from changes in equity interest2
Gain on liquidation of a subsidiary3
Reversal of allowance for financial guarantee
contract losses4
Other
Total
Notes:

1. For the nine-months period ended December 31, 2020, ¥46,918 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 amountrecorded as of March 31, 2020 due to the improvement of credit spread for WeWork’s unsecured notes distributed in themarket.
2. Primarily represents the dilution gain arising from changes in Alibaba’s equity interest held by the Company due to theexercise of stock options in Alibaba.
3. Due to the realization of exchange differences resulted from the liquidation of Kahon 3 Oy, a wholly-owned subsidiary of
the Company, for the nine-months period ended December 31, 2020.
4. For the nine-months period ended December 31, 2020, ¥31,341 million of reversal of allowance for financial guarantee
contract losses related to a credit facility for WeWork provided by financial institutions 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.

110SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

18. Supplemental information to the condensed interim consolidated statement of cash flows(1) Income taxes paid and income taxes refunded
For the nine-month period ended December 31, 2020
Payment of withholding income tax related to dividends within the group companies of ¥155,336 million is
included in “Income taxes paid.”
In addition, refunded withholding income tax related to dividends within the group companies and deemed
dividends of ¥243,602 million is included in “Income taxes refunded.”(2) Proceeds from sales/redemption of investments
For the nine-month period ended December 31, 2020
¥2,099,746 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 nine-month period ended December 31, 2020
“Proceeds from the partial sales of shares of subsidiaries to non-controlling interests” is proceeds received
primarily from sales of SoftBank Corp. shares.

111SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(4) Significant non-cash transactions
For the nine-month period ended December 31, 2020
a. Offset proceeds from sales of listed shares and payments for acquisition of listed shares
Account payables for acquisition of listed shares and account receivables from sales of listed shares wereoffset because the counterparty was the same entity and the settlement date was the same date.
In case that account payables for acquisition of shares are larger than account receivables from sales ofshares, the net amount is recognized as “Payments for acquisition of investments,” and in case that
account receivables from sales of shares are larger than account payables, the net amount is recognized as“Proceeds from sales/redemption of investments.”
For the nine-month period ended December 31, 2020, ¥1,096,868 million of account payables foracquisition of shares and ¥294,780 million of account receivables from sales of shares were offset, andthe net amount of ¥802,088 million was recognized as “Payments for acquisition of investments.” Also,¥961,358 million of account receivable from sales of shares and ¥292,573 million of account payables foracquisition of shares were offset, and the net amount of ¥668,785 million was recognized as “Proceedsfrom sales/redemption of investments.”
b. Sprint Merger
The merger between Sprint and T-Mobile US, Inc. and the acquisition of contingent consideration withthe merger are correspond to significant non-cash transactions. The details are described in “(1) Sprint”
under “Note 3. Discontinued operations.”

112SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

19. 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,a private placement through a trust issuing cash mandatory exchangeable trust securities, a rights offering*
and a sale to Marcelo Claure, one of its directors, 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 paid $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 their rights
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 TMobile 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 in a
private offering through the Trust and transaction pricethereofc. Shares to be transferred to Marcelo Claure, a director of TMobile and transaction price thereofd. Shares to be transferred to the shareholders in the rights
offering by T-Mobile and transaction price thereof

113

19,417,400 shares
Aggregate transaction price $1,667 million
5,000,000 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

SoftBank Group Corp. Consolidated Financial Report
For the Nine-Month Period Ended December 31, 2020

(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 TMobile which the Company holds through its subsidiary.
a. 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.
b. For the Call options over 56,586,144 shares out of the 101,491,623 shares, a strike price of the call option
is equal to the average of the daily volume-weighted average price of the shares of T-Mobile for each of
the 20 trading days immediately prior to exercise. Deutsche Telekom can exercise the Call Options after
the exercise of rights described in the above a 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 heldby the Company before/after the transactions
a. Number of shares held before the Transfer

304,606,049 sharesb. Number of the released shares

198,314,426 sharesc. Number of shares held after the Transfer

106,291,623 sharesd. Number of shares subject to the Call Options

101,491,623 sharese. Number of shares held after the Call Options are exercised* 4,800,000 shares

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

114